Review By on March 30, 2016
Sysco Industries Ltd (SIL) that started manufacturing of films and yarns at the primary stage is now in printed laminates for flexible packaging segment. Thus it having two segments, textile industry and packaging industry. SIL products are marketed under the branch “Sysco”. It caters to the needs of Textile, FMCG, Pharmaceuticals and Food Sector.
To part finance its working capital and general corpus fund needs, SIL is coming out with a maiden IPO of 2170000 equity share of Rs. 10 each at par to mobilize Rs. 2.17 crore. Issue opens for subscription on 31.03.16 and will close on 05.04.16. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Issue is solely 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. After initial issue at par, it issued shares at a price of Rs. 50 per share during January 2011 to March 2015 and also issued bonus shares in the ratio of 1 share for every 2 shares held in December 2015. Its current paid up equity capital of Rs. 5.78 crore will stand enhanced to Rs. 7.95 crore post IPO.
On performance front, it has posted an average EPS of Rs. 3.54 for last three fiscals. Its turnover/net profits were Rs. Rs. 45.99 cr. / Rs. 0.95 cr. (FY13), Rs. 43.72 cr. /Rs. 1.04 cr. (FY14) and Rs. 76.10 cr. / Rs. 2.52 cr. (FY15). For first six months ended 30.09.15 it has posted net profit of Rs. 1.84 crore on a turnover of Rs. 49.03 crore. If we annualize these earnings and attribute to fully diluted equity post IPO then EPS comes to Rs. 4.63 thus asking price is at a P/E of around 2.
On merchant banker’s front, this is the 18th IPO and its earlier 15 mandates that have been listed have shown mixed trends.
Conclusion: This being at par issue from profit making company in textile and flexible packaging, investment may be considered for short to long term rewards.
Review By on March 30, 2016
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 Sysco Industries Ltd. offers an early investment opportunity in Sysco Industries Ltd.. A stock market investor can buy Sysco Industries IPO shares by applying in IPO before Sysco Industries Ltd. shares get listed at the stock exchanges. An investor could invest in Sysco Industries IPO for short term listing gain or a long term.
Read the Sysco Industries IPO recommendations by the leading analyst and leading stock brokers.
Sysco Industries IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Sysco Industries IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Sysco Industries IPO?"
Our recommendation for Sysco Industries IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Sysco Industries IPO.
The Sysco Industries IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Sysco Industries IPO allotment status to check.
