Review By on September 9, 2015
Sri Krishna Constructions (India) Ltd (SKC) is Karnataka based realty sector company engaged in real estate developments. It has completed 7 projects (with saleable area of 12 lakh sq. ft.) and currently in the process of completing 2 more projects (with saleable area of 4.52 lakh sq.ft.). It has 3 projects (with saleable area of 2.60 sq. ft.) in the pipeline.
To meet the cost of acquisition of land, raise general corpus fund, the company is coming out with a maiden IPO of 2520000 equity share of Rs. 10 each at a fixed price of Rs. 45 per share to mobilize Rs. 11.34 crore. Issue opens for subscription on 10.09.15 and will close on 15.09.15. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Issue is lead managed by Pantomath Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE SME.
On performance front, the company has posted an average EPS of Rs. 2.74 per share (on post bonus basis) for last three fiscals. For FY15 it has earned net profit of Rs. 2.70 crore on a turnover of Rs. 28.51 crore. SKC raised equity capital as par from December 2005 to June 2015 up to a level of Rs. 2 crore and issued bonus shares in the ratio of 5 shares for every 2 shares held to raise it to Rs. 7 crore, which will stand enhanced to Rs. 9.52 crore post IPO. If we attribute FY15 earnings on fully diluted post IPO equity then the asking price is at a P/E of around 16 against Industry average P/E of 21 plus. Thus it is priced comparably well. Weighted average of its RONW for last three fiscal is at 26.59%. Based on its NAV of Rs. 12.08 (post bonus) the issue is being made at a P/BV of 3.7 plus.
On merchant banker’s front, this is 13th IPO from its stable and all its earlier mandates have good track records.
Well informed risk aver investors may consider investment in this IPO.
Review By on September 9, 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 Sri Krishna Constructions (India) Ltd. offers an early investment opportunity in Sri Krishna Constructions (India) Ltd.. A stock market investor can buy Sri Krishna Constructions IPO shares by applying in IPO before Sri Krishna Constructions (India) Ltd. shares get listed at the stock exchanges. An investor could invest in Sri Krishna Constructions IPO for short term listing gain or a long term.
Read the Sri Krishna Constructions IPO recommendations by the leading analyst and leading stock brokers.
Sri Krishna Constructions IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Sri Krishna Constructions IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Sri Krishna Constructions IPO?"
Our recommendation for Sri Krishna Constructions IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Sri Krishna Constructions IPO.
The Sri Krishna Constructions IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Sri Krishna Constructions IPO allotment status to check.
