Review By on March 11, 2014
SKPL is was originally engaged in the business of manufacturing, exporting and supplying gemstones, stone jewelry, rudraksha beads, Shivlings, Shri Yantras, Sphatic Ganesha, Rudraksh Pendant, Rudraksh Mala etc. Due to hike in Gold import duly leading to sluggish trends in business, the company mulls to diversify in the business of real estate, consultancy services and agricultural activities. To finance this and raise long term working capital, the company is issuing 2160000 equity share of Rs. 10 each at par. Issue is lead managed by Sobhagya Capital Options Ltd. and Skyline Financial Services Pvt. Ltd. is the registrar to the issue. Post allotment shares will be listed on BSE SME.
On performance front, for the fiscal 2011-12 and 2012-13 the company posted an EPS of Rs. 0.03 and 0.01 respectively. For the first 10 months of current fiscal ended on 31.01.14 it has earned net profit of Rs. 0.03 crore on a turnover of Rs. 1.69 crore.
After initial allotment of 10000 shares at par, the company issued 1343595 equity shares at a price of Rs. 20.50 between 12.12.2013 to 29.01.14 and on 31.01.14 it issued bonus shares in the ratio of 1 for 1 to take the paid up equity to Rs. 2.71 crore that will rise to Rs. 4.87 crore post this issue. If we attribute current earning on annualized basis on enhanced equity post this IPO, then EPS stands at Rs. 0.01 translating in asking price at par at a P/E of 1000. Minimum application is to be made for 10000 shares and in multiples thereof, thereafter. As no company can issue shares below par value, investors might get tempted for this offer, but considering fundamentals, it looks pricy even at par.
Merchant banker has poor track record for past mandate.
Offer is Not worth despite at par with entry barrier.
Review By on March 11, 2014
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 Shri Krishna Prasadam Ltd. offers an early investment opportunity in Shri Krishna Prasadam Ltd.. A stock market investor can buy Shri Krishna Prasadam IPO shares by applying in IPO before Shri Krishna Prasadam Ltd. shares get listed at the stock exchanges. An investor could invest in Shri Krishna Prasadam IPO for short term listing gain or a long term.
Read the Shri Krishna Prasadam IPO recommendations by the leading analyst and leading stock brokers.
Shri Krishna Prasadam IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Shri Krishna Prasadam IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Shri Krishna Prasadam IPO?"
Our recommendation for Shri Krishna Prasadam IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Shri Krishna Prasadam IPO.
The Shri Krishna Prasadam IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Shri Krishna Prasadam IPO allotment status to check.
