Review By on October 14, 2013
Stellar Capital Services Ltd. (SCSL) is a NBFC registered with the RBI to carry out NBFC activities under Section 451A of the Reserve Bank of India Act, 1934. The company operates as a Non Deposit taking Non Banking Finance Company engaged primarily in the business of advancing loans and investing/trading in securities.
To acquire new offices on rent/lease at Kolkata and Jaipur and generate corpus fund the company is coming out with an IPO of 4500000 equity share of Rs. 10 each at a fixed price of Rs. 20 per share to mobilize Rs. 9 core. Issue opens for subscription on 15.10.13 and will close on 18.10.13. Minimum application is to be made for 6000 shares and in multiples thereof, thereafter. Post allotment, the shares will be listed on BSE SME. Aryaman Financial Services Ltd. is the lead manager and Skyline Financial Services Pvt. Ltd is the registrar to the issue. On 31.3.11 and 31.3.12 it made preferential issue of 379900 and 168800 equity shares respectively at a price of Rs. 500 per share and on 31.3.13 it issued bonus shares in the ratio of 14 shares for every 1 share held. Post issue the equity will rise to Rs. 16.56 crore.
For last three fiscals, the company has posted an average EPS of Rs. 0.05. For Q1 ended on 30.06.313 of the current fiscal, it has earned net profit of Rs. 0.15 lakh on the total revenue of Rs. 0.72 lakh and if we attribute these earnings on annualized basis on expanded equity then the EPS stands at Rs. 0.04 and thus the asking price is at a P/E of 500 plus against peers trading between 2 to 22.
Merchant banker has poor track record for its past mandates.
Remark: Avoid
Review By on October 14, 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 Stellar Capital Services Ltd. offers an early investment opportunity in Stellar Capital Services Ltd.. A stock market investor can buy Stellar Capital IPO shares by applying in IPO before Stellar Capital Services Ltd. shares get listed at the stock exchanges. An investor could invest in Stellar Capital IPO for short term listing gain or a long term.
Read the Stellar Capital IPO recommendations by the leading analyst and leading stock brokers.
Stellar Capital IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Stellar Capital IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Stellar Capital IPO?"
Our recommendation for Stellar Capital IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Stellar Capital IPO.
The Stellar Capital IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Stellar Capital IPO allotment status to check.
