Review By on September 24, 2012
RCL Retail Limited is promoted by Lodha group, the first generation entrepreneur. The company is engaged in the business of trading of ready to eat snacks, fryums, bakery products, cookies, confectioneries, namkeens, chutneys, mouth-fresheners, juices, mobile food such as vada pav etc. Currently it operates through its two well furnished retail stores located in Chennai.
The company is now planning to set up a processing unit with the facility of processing food grains, pulses and retailing under brand name of RCL. It is also planning to expand its presence geographically by adding eight (8) retail stores in and around Chennai. At present RCL has presence in southern part of India and they are also planning to expand their business in Rajasthan, Gujarat and North India. To part finance above programme and also to strengthen its supply chain management and raising corpus fund, the company is offering 5795000 equity share of Rs. 10 each at par. The issue opens for subscription on 27.09.12 and will close on 01.10.12. Minimum application is to be made for 10000 shares. With this float company plans to raise Rs. 5.80 crore. Post issue shares will be listed on BSE-SME platform.
As the company was established only during 2010, during its first partial fiscal, it posted a turnover of Rs. 0.91 crore with a net profit of Rs. 0.02 crore. In its first full year ended 31.03.2012 it posted net profit of Rs. 0.07 crore on a turnover of Rs. 6.67 crore. The management hopes to improve top and bottom line post proposed expansion.
Guiness Merchant Bankers Pvt. Ltd. is the sole manager to this IPO and Cameo Corporate Services Ltd. is the registrar to the issue. There are no track records of Merchant Banker as this is their first mandate.
Since the issue is at par and considering the recent development of relaxing FDI in Retail sector, this issue is likely to generate good interest. HNIs can park moderate fund for long term rewards as post issue the paid up capital will get enhanced from Rs. 6.51 crore to Rs. 12.30 crore.
Review By on September 24, 2012
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 RCL Retail Ltd. offers an early investment opportunity in RCL Retail Ltd.. A stock market investor can buy RCL Retail IPO shares by applying in IPO before RCL Retail Ltd. shares get listed at the stock exchanges. An investor could invest in RCL Retail IPO for short term listing gain or a long term.
Read the RCL Retail IPO recommendations by the leading analyst and leading stock brokers.
RCL Retail IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the RCL Retail IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is RCL Retail IPO?"
Our recommendation for RCL Retail IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the RCL Retail IPO.
The RCL Retail IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit RCL Retail IPO allotment status to check.
