Review By on June 20, 2017
Pushpanjali Realms & Infratech Ltd (PRIL) is a real estate development company focusing primarily on construction and development of residential projects. Its current portfolio of project covers catering to customers across the income groups. Currently the company is focusing on opportunities to build a brand in real estate sector. It generally enters in to joint ventures with developments of such projects. It is currently doing infra projects in Uttarakhand and has established a successful track record.
To part finance its working capital and general corporate funds need, the company is coming out with a maiden IPO of 2646000 equity share of Rs. 10 each with a fixed price of Rs. 55 per share to mobilize Rs.14.55 crore. Issue opens for subscription on 27.06.17 and will close on 30.06.17. Minimum application is to be made for 2000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is solely lead managed by Sarthi Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. After issuing equity at par on incorporation, it issued bonus shares in the ratio of 40 shares for every 1 share held in January 2016. Thereafter it made two rights issues with at par issue in February 2016 and at a price of Rs. 20 per share in February 2017. Post IPO its current paid up equity capital of Rs. 7.37 crore will stand enhanced to Rs. 10.01 crore.
On performance front, for last three fiscals it has posted turnover/net profits of Rs. 1.18 cr. / Rs. 0.02 cr. (FY14), Rs. 13.46 cr. / Rs. 0.43 cr. (FY15) and Rs. 22.15 cr. / Rs. 1.39 cr. (FY16). For nine months ended on 31.12.16 of the current fiscal, it has posted net profit of Rs. 1.18 crore on a turnover of Rs. 18.48 cr. If we annualize the latest earnings and attribute it on fully diluted equity post IPO then asking price is at a P/E of around 35 plus against peers trading at an average P/E of 19 plus making this issue a costly bet. Its average RoNW for last three fiscals is 52.96%.
On merchant banker’s front, this is the 27th mandate from its stable that have shown mixed trends with average returns in most of the cases.
Conclusion: Only risk savvy cash surplus investors may consider moderate investment for long term in this aggressively priced offer.
Review By on June 20, 2017
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 Pushpanjali Realms & Infratech Ltd. offers an early investment opportunity in Pushpanjali Realms & Infratech Ltd.. A stock market investor can buy Pushpanjali Realms IPO shares by applying in IPO before Pushpanjali Realms & Infratech Ltd. shares get listed at the stock exchanges. An investor could invest in Pushpanjali Realms IPO for short term listing gain or a long term.
Read the Pushpanjali Realms IPO recommendations by the leading analyst and leading stock brokers.
Pushpanjali Realms IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Pushpanjali Realms IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Pushpanjali Realms IPO?"
Our recommendation for Pushpanjali Realms IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Pushpanjali Realms IPO.
The Pushpanjali Realms IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Pushpanjali Realms IPO allotment status to check.
