Review By on March 30, 2016
Raghav Ramming Mass Ltd. (RRML) is engaged in the manufacturing, supply and export of good quality ramming mass (quartz powder) mineral based on the customer requirements which are widely used in as refractory material in induction furnace. RRML is also engaged in the business of purchase and sale (trading) of G I sheets on the basis of the orders received from third parties. It supplies these G I Sheets to these third parties after sourcing the same from various suppliers.
To part finance its working capital requirements and meeting general corpus funds, the company is coming out with a maiden IPO of 1920000 equity share of Rs. 10 each at a fixed price of Rs. 39 per share to mobilize Rs. 7.49 crore. Issue opens for subscription on 31.03.16 and will close on 06.04.16. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely managed by Hem Securities Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Having issued equity at par from inception to 2010 it issued further equity at a price of Rs. 100 per share in February and March 2010 and then issued further equity at a price of Rs. 1000 per share in January 2012. There after it issued further equity at par in August 2012 and August 2015. It also issued bonus shares in the ratio of 6 shares for every 1 share in October 2015. Its current paid up equity capital of Rs. 5.26 crore will stand enhanced to Rs. 7.18 crore post IPO.
On performance front, company has posted consistent rise in top and bottom lines since 2011 till now. Its turnover/net profits for last three fiscals were Rs. 17.21 cr. / Rs. 0.34 cr. (FY13), Rs. 21.61 cr. / Rs. 0.47 cr. (FY14) and Rs. 37.88 cr. / Rs. 0.76 cr. (FY 15). For first six months ended 30.09.15 it has reported net profit of Rs. 0.88 crore on a turnover of Rs. 22.77 crore. If we annualize these earnings and attribute it to fully diluted equity post IPO then asking price is at a P/E of around 16. As per offer documents, the company has no listed peers to compare with.
On merchant banker’s front, this is 19th IPO from its stable and earlier mandates have shown mixed trends post listings.
Conclusion: Risk savvy investors having surplus funds may consider this IPO for long term rewards.
Review By on March 30, 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 Raghav Ramming Mass Ltd. offers an early investment opportunity in Raghav Ramming Mass Ltd.. A stock market investor can buy Raghav Ramming Mass IPO shares by applying in IPO before Raghav Ramming Mass Ltd. shares get listed at the stock exchanges. An investor could invest in Raghav Ramming Mass IPO for short term listing gain or a long term.
Read the Raghav Ramming Mass IPO recommendations by the leading analyst and leading stock brokers.
Raghav Ramming Mass IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Raghav Ramming Mass IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Raghav Ramming Mass IPO?"
Our recommendation for Raghav Ramming Mass IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Raghav Ramming Mass IPO.
The Raghav Ramming Mass IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Raghav Ramming Mass IPO allotment status to check.
