Review By on October 1, 2013
S R G Securities Finance Limited (SRGSFL) is a NBFC registered with RBI to carry on NBFC Activities under Section 45(1A) of the Reserve Bank of India Act, 1934 bearing Registration no. 10.00097. SRGSFL is a Non Deposit taking Non-systemically Important Non Banking Finance Company (NBFC-ND-NSI) engaged primarily in the business of Asset Financing by offering Business Loans, Equipment and Machinery Loan, Vehicle Loans and also gives loans against Equipment, Machinery and Vehicle.
In the past three (3) years its revenues have increased from Rs 62.50 lacs in F. Y. 2010-2011 to Rs 82.61 lacs in F. Y. 2011-12 and further to Rs 107.99 lacs in F. Y. 2012-2013, showing an increase of 32.18% and 30.72% respectively. Revenue for 3 month period ended June 30, 2013 was ` 23.33 lacs. Its Net Profit before tax for the above periods are Rs. 9.32 lacs, Rs.16.79 lacs and Rs. 22.38 lacs and for the 3 month period ended June 30, 2013 was Rs. 6.19 lacs.
To part finance its capital augmentation and working capital, it is issuing 2508000 equity share of Rs. 10 each at a fixed price of Rs. 20 per share to garner Rs. 5.01 crore. Minimum application is to be made for 6000 shares and in multiples thereof, thereafter. Issue opens on 07.10.13 and will close on 14.10.13. Post allotment, shares will be listed on BSE SME. Aryaman Financial Services Ltd is the sole lead manager and Shares Dynamaic (I) Pvt Ltd. is the registrar to the issue.
In June 2013 the company issued bonus shares in the ratio of 1 share for every 2 shares held. Post issue its present equity of Rs. 1.37 crore will rise to Rs. 3.88 crore. If we attribute its Q1 (2014) earnings on full year basis for fully diluted equity, then the asking price of Rs. 20 per share is at 333+ P/E.
Merchant banker has poor track record for its past mandates and thus, it is now worth applying for this offer.
Review By on October 1, 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 S R G Securities Finance Ltd. offers an early investment opportunity in S R G Securities Finance Ltd.. A stock market investor can buy S R G Securities Finance IPO shares by applying in IPO before S R G Securities Finance Ltd. shares get listed at the stock exchanges. An investor could invest in S R G Securities Finance IPO for short term listing gain or a long term.
Read the S R G Securities Finance IPO recommendations by the leading analyst and leading stock brokers.
S R G Securities Finance IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the S R G Securities Finance IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is S R G Securities Finance IPO?"
Our recommendation for S R G Securities Finance IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the S R G Securities Finance IPO.
The S R G Securities Finance IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit S R G Securities Finance IPO allotment status to check.
