Review By on March 7, 2015
SSPN is a financial services Company, offering the corporate and financial advisory services. These services encompass Project Advisory, Loan Syndication, Mergers & Acquisitions and Private Equity. The company provides integrated solutions to our clients which includes managing crucial aspects like corporate finance, working capital finance, project finance and financial restructuring to corporate. The Corporate Advisory services clients ranging from medium-sized corporate, SMEs and family managed businesses. At a time, when India is throwing up investment avenues in new sectors and projects, there is a critical need to provide specialised advisory services to the Indian Corporate Sector in their efforts towards growth. It offers diversified financial advisory services, innovative ideas and unparalleled execution to its client base across all stages of the business cycle. The company is also engaged in making investment in the form of Debt & Equity in various companies in its known circle and through proper reference checks.
To arrange its long term working capital needs, the company is coming out with public issue of 750000 equity share of Rs. 10 each at a fixed price of Rs. 20 per share to mobilize Rs. 1.50 crore. Minimum application is to be made for 6000 shares and in multiples thereon, thereafter. Issue opens for subscription on 10.03.15 and will close on 12.03.15. Its present equity capital of Rs. 1.14 crore will rise to Rs. 1.89 crore post this issue. Issue is solely lead managed by First Overseas Capital Ltd. and Bigshare Services Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE SME.
As per draft prospectus, for last two and half years it has posted an average EPS of Rs. 0.62. For six months ended 30.09.14 it has posted net profit of Rs. 0.06 crore on a total income of Rs. 0.27 crore. This translates into an EPS of 0.63 on annualized basis on expanded equity post IPO and thus the asking price of the issue is at 31 plus P/E.
Merchant banker has poor track record.
This SME offer is with entry barriers and the low preference for SME IPOs by the broking community at large. However, investors with surplus funds may invest at their own discretion for long term, bearing in mind that stock market investments are linked to market risks. The author has no plans to invest in this IPO.
Review By on March 7, 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 SSPN Finance Ltd. offers an early investment opportunity in SSPN Finance Ltd.. A stock market investor can buy SSPN Finance IPO shares by applying in IPO before SSPN Finance Ltd. shares get listed at the stock exchanges. An investor could invest in SSPN Finance IPO for short term listing gain or a long term.
Read the SSPN Finance IPO recommendations by the leading analyst and leading stock brokers.
SSPN Finance IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the SSPN Finance IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is SSPN Finance IPO?"
Our recommendation for SSPN Finance IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the SSPN Finance IPO.
The SSPN Finance IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit SSPN Finance IPO allotment status to check.
