Review By on August 8, 2013
While secondary market is witnessing blood bath and primary market in is limbo, we have yet surprise in the form of offer for sale for BSE SME listing from Silverpoint Infratech. Details of the issue are as under:
Silverpoint Infratech (SIL) is engaged in the business of land development, construction services, road construction, civil & structural construction services and infrastructure sector projects. The company's client list includes NKC Projects, Jain Infraprojects, VKS Projects Shri Mahavir Ferro Alloys, Binani Cement, PACL India, Prakash Constrowell etc.
To list its share on BSE SME the company is coming out with an offer for sale of 8000000 equity share of Rs. 10 each at a fixed price of Rs. 15 per share. Proceeds from this issue of Rs. 12 crore will go to existing stakeholders being 100% offer for sale and thus company is not raising any fresh equity. Issue opens for subscription on 12.08.13 and will close on 14.08.13. Minimum application is to be made for 8000 shares and in multiples thereof, thereafter. The issue is solely lead managed by Inventure Merchant Banker Services Pvt. Ltd. and Bigshare Services Pvt. Ltd is the registrar to the issue.
The company has posted an average EPS of Rs. 0.17 for last three fiscals. For the 11months ended on 38.02.13, it has earned net profit of Rs. 0.49 crore on a turnover of Rs. 230.75 crore translating in to an EPS of Rs. 0.27. Thus the asking price at Rs. 15 is at 55+ P/E. Between March 2005 to March 2009 company issued 1968913 equity shares at a price of Rs. 200 on preferential basis and in July 2012 issues bonus in the ratio of 9 shares for every 1 share held. Listed fancy peers like Era Infra, Jaypee Infra etc are trading at a trailing 12 months P/E of around 7 to 16.
As for the merchant banker’s performance, this is the fourth SME issue from their stable and considering their market game in its own parent company and the other mandates listing, one may get some rewards. But current status are not having encouraging trends and hence, investors should AVOID this offer.
Review By on August 8, 2013
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 Silverpoint Infratech Ltd. offers an early investment opportunity in Silverpoint Infratech Ltd.. A stock market investor can buy Silverpoint Infratech IPO shares by applying in IPO before Silverpoint Infratech Ltd. shares get listed at the stock exchanges. An investor could invest in Silverpoint Infratech IPO for short term listing gain or a long term.
Read the Silverpoint Infratech IPO recommendations by the leading analyst and leading stock brokers.
Silverpoint Infratech IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Silverpoint Infratech IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Silverpoint Infratech IPO?"
Our recommendation for Silverpoint Infratech IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Silverpoint Infratech IPO.
The Silverpoint Infratech IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Silverpoint Infratech IPO allotment status to check.
