Review By Dilip Davda on January 18, 2017
Madhav Copper Ltd (MCL) is engaged in the manufacturing and supply of enamelled copper wire and poly wrap submersible winding wire under the brand name ―Madhav Copper‖. MCL also offers enamelled, copper rod profile and poly-wrap submersible winding wires suitable for industry application in transformers, motors, alternators, contactors, and relays. Company’s product is also suitable for use in high speed coil winding machines. The copper conductors are manufactured from copper and insulated with high thermal class engineered insulation material, which provides dielectric properties and resistance to stress cracking.
To meet its working capital requirement and the general corpus fund needs, the company is coming out with a maiden IPO of 553600 equity share of Rs. 10 each at a fixed price of Rs. 81 per share to mobilize Rs. 4.48 crore. Issue opens for subscription on 23.01.17 and will close on 27.01.17. Minimum application is to be made for 1600 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge platform. Its present paid up equity capital is issued at par. Post issue its current paid up equity capital of Rs. 1.50 crore will stand enhanced to Rs. 2.05 crore. The issue will constitute 26.96 per cent and 25.56 per cent (respectively) of the fully diluted post issue paid up equity share capital of the company. Issue is solely managed by Pantomath Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue.
On performance front, the company has posted turnover/net profit of Rs. 1.12 cr./ Rs. (-0.43 cr.) (FY14), Rs. 19.69 cr. / Rs. 0.35 cr. (FY15) and Rs. 35.64 cr. / Rs. 0.66 cr. (FY16). For the first half of current fiscal, it has earned net profit of Rs. 0.58 crore on a turnover of Rs. 23.68 cr. If we annualize the latest earnings and attribute to fully diluted equity post IPO then asking price is at a P/E of 14 plus and is just around P/E of its peers.
On merchant banker’s front, this is the 34th mandate from its stable and past mandates have shown mixed trends post listing.
Conclusion: Issue appears to have been reasonably priced. Cash surplus investors may consider long term investment.
Review By Dilip Davda on January 18, 2017
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The initial public offer (IPO) of Madhav Copper Ltd. offers an early investment opportunity in Madhav Copper Ltd.. A stock market investor can buy Madhav Copper IPO shares by applying in IPO before Madhav Copper Ltd. shares get listed at the stock exchanges. An investor could invest in Madhav Copper IPO for short term listing gain or a long term.
Read the Madhav Copper IPO recommendations by the leading analyst and leading stock brokers.
Madhav Copper IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Madhav Copper IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Madhav Copper IPO?"
Our recommendation for Madhav Copper IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Madhav Copper IPO.
The Madhav Copper IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Madhav Copper IPO allotment status to check.
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