Review By on September 28, 2016
Shashijit Infraprojects Ltd (SIL) is engaged in industrial and infrastructure contracting business. SIL’s scope of work includes civil construction for industrial and residential projects, power plants, ETP plants, Power service stations etc.
To part finance purchase of machinery, scaffolding equipments, repayment of loan and working capital needs, the company is coming out with a maiden IPO of 2328000 equity share of Rs. 10 each at fixed price of Rs. 15 per share to mobilize Rs. 3.49 crore. Issue opens for subscription on 30.09.16 and will close on 06.10.16. Minimum application is to be made for 8000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely managed by Pantomath Capital Advisors Pvt Ltd. Bigshare Services Pvt Ltd is the registrar to the issue. It issued equity shares at par from inception till 2010 and then issued bonus in the ratio of 120 for 1 in August 2016. Post issue its current paid up equity capital of Rs. 6.29 crore will stand enhanced to Rs. 8.62 crore.
On performance front, for last four fiscals, the company has reported turnover/net profits of Rs. 47.05 cr./ Rs. 1.58 cr. (FY13), Rs. 47.68 cr. / Rs. 1.73 cr. (FY14), Rs. 29.37 cr. / Rs. 0.69 cr. (FY15) and Rs. 24.31 cr. / Rs. 0.97 cr. (FY16). Thus it has shown inconsistency in its earnings. However, if we attribute latest earnings on fully diluted equity post IPO then asking price is at a P/E of 13 plus and at a P/BV of 1.3 plus. Although asking price is below peers, its inconsistent performance in the major concern.
On merchant banker’s front, this is the 30th mandate and its past mandates have shown mixed trends.
Conclusion: Inconsistency in performance raises concern. However, risk savvy cash surplus investors may consider long term investment as infra sector is set for a big push ahead.
Review By on September 28, 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 Shashijit Infraprojects Ltd. offers an early investment opportunity in Shashijit Infraprojects Ltd.. A stock market investor can buy Shashijit Infraprojects IPO shares by applying in IPO before Shashijit Infraprojects Ltd. shares get listed at the stock exchanges. An investor could invest in Shashijit Infraprojects IPO for short term listing gain or a long term.
Read the Shashijit Infraprojects IPO recommendations by the leading analyst and leading stock brokers.
Shashijit Infraprojects IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Shashijit Infraprojects IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Shashijit Infraprojects IPO?"
Our recommendation for Shashijit Infraprojects IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Shashijit Infraprojects IPO.
The Shashijit Infraprojects IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Shashijit Infraprojects IPO allotment status to check.
