Review By on September 12, 2015
Shaival Reality Ltd (SRL) an Ahmedabad based company is engaged in the business of providing logistics services viz. goods transport and moving etc. It is also engaged in construction business, in which it takes Government and private tender for constructing precast housing projects. The goods transportation is generally carried out using road, railway and air as the mode of transport. SRL carry out goods transport with roadways as the mode of transport. It is providing logistic services for transportation of bulk LPG & Ammonia. The company has young and well maintained fleets for transportation services basically for bulk LPG & Ammonia with the motive to provide on time delivery of goods to the customer while maintaining the government norms, road safety rules and regulations.
To meet its working capital requirements, the company is coming out with a maiden IPO of 528000 equity share of Rs. 10 each at a fixed price of Rs. 100 per share to mobilize Rs. 5.28 crore. Issue opens for subscription on 15.09.15 and will close on 18.09.15. Minimum application is to be made for 1200 shares and in multiples thereon, thereafter. Issue is managed by Sarthi Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on NSE SME.
On performance front, the company has posted an average negative EPS of Rs. 13.04 and negative RONW of 18.07% for last three fiscals. For the FY 15 it has reported net loss of Rs. 2.57 crore on a turnover of Rs. 17.22 crore. After initial subscription to equity at par in the year 2000, it issued bonus shares in the ratio of 4 for 1 in 2006 and then issued fresh equity of 4 lakh shares at a price of Rs. 100 per share in 2007 and 2008. Its current equity capital of Rs. 1.40 crore will stand enhanced to Rs. 1.93 crore post IPO.
On merchant banker’s front, this is the 11th SME IPO and earlier mandates have given average returns.
Considering negative earnings and RONW for last three fiscals with rising trends in bottomline, issue is exorbitantly priced. Hence investors may give it a miss.
Review By on September 12, 2015
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 Shaival Reality Ltd. offers an early investment opportunity in Shaival Reality Ltd.. A stock market investor can buy Shaival Reality IPO shares by applying in IPO before Shaival Reality Ltd. shares get listed at the stock exchanges. An investor could invest in Shaival Reality IPO for short term listing gain or a long term.
Read the Shaival Reality IPO recommendations by the leading analyst and leading stock brokers.
Shaival Reality IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Shaival Reality IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Shaival Reality IPO?"
Our recommendation for Shaival Reality IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Shaival Reality IPO.
The Shaival Reality IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Shaival Reality IPO allotment status to check.
