Review By on December 26, 2016
Prolife Industries Ltd (PIL) is engaged in the business of manufacturing special and exclusive range of intermediates for dyes, pigments, pharmaceuticals, agrochemicals and others. The company originally founded in the year 1994 in the name of Mamta Dyes & Intermediates Private Ltd and has been in this Industry from the very inception. Company has established even its own Research & Development Department within few years of incorporation of the company. It has already succeeded in developing very high quality Specialty Chemicals as result of thorough knowledge and R & D efforts. The company has established its presence in domestic as well export market and are regularly catering to the needs of their customers in many countries including U.S.A, Spain, Switzerland, Germany, France, Taiwan, Japan, Germany, Brazil etc.
At present the company is manufacturing mainly ranges of intermediaries for dyes, pigments, pharmaceuticals agro chemicals. PIL’s existing and proposed product and products mix are Dehydro Thio Para Toluidine Sulfonic Acid (DTPTSA), Amino Phenoxy Propane Sulfonic Acid (SPA), Amino Methyl Phenoxy Sulfonic Acid (SPMT), PYBIZS- 4-Nitrile-1-Hydroxy-8-Metoxy-3-Methyl Benzo [4,5] Imidazo [1,2A] Pyridine-7 & Sulphonic Acid & its sodium salt, Basic Red51/Red 76/Brown16/Brown17/Brown99/yellow-1/Yellow57/Orange31, 2-Chloro Methyl -3,4- Dimethoxy Pyridine, Octahydro-4B-Methyl-9 (Methylamino), Di Amino Bisphenoxy Ethane, 5-Methoxy 6- Amino Benz Imidazole Para Nitro Aniline, Epsilon Acid, 2:4 Di Nitro Aniline, Dichloro Para Nitro Aniline, Ortho Chloro Para Nitro Aniline, 6 Chloro 2:4 Di Nitro Aniline, 6 Bromo Di Nitro Aniline.
To part finance its expansion plans and meeting general corpus funding needs, the company is coming out with a maiden IPO of 1110000 equity shares of Rs. 10 each at a fixed price of Rs. 38 per share to mobilize Rs. 4.22 crore. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Issue opens for subscription on 27.12.16 and will close on 30.12.16. Post allotment, shares will be listed on NSE SME Emerge. The issue constitutes 27.11 per cent of the post issue paid up equity capital of the company. Issue is solely managed by Swastika Investmart Ltd and Link Intime India Pvt. Ltd is the registrar to the issue. All equity so far is issued at par and a bonus share in the ratio of 1 for 1 in August 2016. Its current paid up equity capital of Rs. 2.98 crore will stand enhanced to Rs. 4.09 crore post IPO.
On performance front, the company has reported turnover/net profits of Rs. 19.06 cr. / Rs. 0.22 cr. (FY14), Rs. 19.89 cr./ Rs. 0.40 cr. (FY15) and Rs. 22.83 cr. / Rs. 0.59 cr. (FY16). For first quarter of the current fiscal, it has earned net profit of Rs. 0.17 cr. on a turnover of Rs. 4.19 cr. If we annualized these earnings and attribute on fully diluted equity post IPO then asking price is at a P/E of 22 plus making it a highly priced issue.
On merchant banker’s front, this is the first mandate from its stable and has no track records.
Conclusion: Only Risk aver cash surplus investors may consider long term investment.
Review By on December 26, 2016
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 Prolife Industries Ltd. offers an early investment opportunity in Prolife Industries Ltd.. A stock market investor can buy Prolife Industries IPO shares by applying in IPO before Prolife Industries Ltd. shares get listed at the stock exchanges. An investor could invest in Prolife Industries IPO for short term listing gain or a long term.
Read the Prolife Industries IPO recommendations by the leading analyst and leading stock brokers.
Prolife Industries IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Prolife Industries IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Prolife Industries IPO?"
Our recommendation for Prolife Industries IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Prolife Industries IPO.
The Prolife Industries IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Prolife Industries IPO allotment status to check.
