Review By on March 13, 2015
Supreme (India) Impex Ltd (SIIL) is engaged in highly value added textile sector catering to the international market, and has successfully transformed into a textile exporter mainly comprising women‘s clothing. SIIL offers value-added work such as handwork, sequencing and embroidery on fabrics. The company recently diversified its presence into Multi Ply Yarn which is used in making home furnishing items like Carpets, terry towels, fashion fabrics and others. The company has secured LoP for Apparel & Garment manufacturing from GOI at its Apparel park unit.
To generate is working capital requirements, the company is issuing 13,12,000 equity share of Rs. 10 each at a fixed price of Rs. 60 per share to mobilize Rs. 7.87 crore. Issue opens for subscription on 16.03.15 and will close on 18.03.15. Minimum application is to be made for 2000 shares and in multiples of it thereon, thereafter. Issue is lead managed by Pantomath Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. This is the second NSE Emerge IPO from this merchant banker within a year. Post issue shares will be listed on NSE Emerge. During March 2007 to March 2014 it issued preferential equity to promoters at a price ranging from Rs. 75 per share to Rs. 125 per share. Post issue, its existing equity of Rs. 3.57 crore will stand enhanced to Rs. 4.89 crore.
On performance front, for the fiscals 2013-14 it has reported turnover of Rs. 342.65 crore with a net profit of Rs. 5.27 crore. For first half of current fiscal ended on 30.09.14, it has earned net profit of Rs. 2.70 crore on a turnover of Rs. 188.70 crore. If we annualized this earning then the EPS for 2014-15 will be around Rs. 11.04 on enhanced equity post this issue. Thus asking price is at a P/E of little over 5 and is thus priced reasonably.
Author has no plans to invest in this IPO. Being SME IPO, it has entry barriers hence HNI Investors can use their own discretion for investing in this IPO for long term, as any investment in stock market is attached to market risks.
Review By on March 13, 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 Supreme (India) Impex Ltd. offers an early investment opportunity in Supreme (India) Impex Ltd.. A stock market investor can buy Supreme India IPO shares by applying in IPO before Supreme (India) Impex Ltd. shares get listed at the stock exchanges. An investor could invest in Supreme India IPO for short term listing gain or a long term.
Read the Supreme India IPO recommendations by the leading analyst and leading stock brokers.
Supreme India IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Supreme India IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Supreme India IPO?"
Our recommendation for Supreme India 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 Supreme India IPO.
The Supreme India IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Supreme India IPO allotment status to check.
