Review By on February 1, 2014
While we have reports for FPO from Engineering India round the corner, being the first main line issue for CY 2014, yet another BSE SME issue is entering the capital market this week. Details of the same are as under:
Polymac Thermoformers Ltd. (PTL) is engaged in to manufacturing operations of disposable plastic glasses, cups, and bowls etc. These are fast replacing conventional glasses, cups etc. and are manufactured by thermoforming technique.
To meet Rs. 7.70 crore fund requirements for capital expenditure on existing manufacturing plant, brand building and raising general corpus fund, the company is offering 2200000 equity share of Rs. 10 each at a fixed price of Rs. 35 per share. Minimum application is to be made for 4000 shares and in multiples thereof, thereafter. The issue opens for subscription on 06.02.14 and will close on 10.02.14. Post issue shares will be listed on BSE SME. Guiness Corporate Advisors Pvt. Ltd is the lead manager and Link Intime India Pvt. Ltd. is the registrar to the issue.
On performance front, the company has posed an average EPS of Rs. 0.02 for last three fiscals. For eight months ended on 30.11.13 it has posted net profit of Rs. 0.35 crore on a turnover of Rs.0.68 crore and marked an EPS of Rs. 1.48 that is really surprising compared to net profit of Rs. 0.01 crore on a turnover of Rs. 1.57 crore for fiscal 2012-13. If one attribute this earnings on annual basis on fully diluted equity post this issue, then EPS stands at Rs. 1.11. Its NAV stands at Rs. 12.86 as on 30.11.13. Based on this the asking price is at a P/E of 31+ and at a P/BV of 2.7 which is exorbitant.
During 31.03.2008 t 31.03.2010 the company made preferential issues at a price of Rs. 100 and Rs. 500 and then converted preference shares into equity at par on 12.07.2013. It also issued bonus shares in the ratio of 4 for 1 on 08.08.2013. Its present equity of Rs. 2.58 crore will rise to Rs. 4.78 crore post this issue.
On merchant banker’s front, this is 11th SME mandate from it and has mixed track record.
Avoid this costly offer
Review By on February 1, 2014
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
The initial public offer (IPO) of Polymac Thermoformers Ltd. offers an early investment opportunity in Polymac Thermoformers Ltd.. A stock market investor can buy Polymac Thermoformers IPO shares by applying in IPO before Polymac Thermoformers Ltd. shares get listed at the stock exchanges. An investor could invest in Polymac Thermoformers IPO for short term listing gain or a long term.
Read the Polymac Thermoformers IPO recommendations by the leading analyst and leading stock brokers.
Polymac Thermoformers IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Polymac Thermoformers IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Polymac Thermoformers IPO?"
Our recommendation for Polymac Thermoformers IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Polymac Thermoformers IPO.
The Polymac Thermoformers IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Polymac Thermoformers IPO allotment status to check.
