Review By on February 5, 2014
While we have two issues of Polymac and EIL closing on 10.02.14, one more at par SME IPO is opening on the same day. Details of the same are as under:
Unishire Urban Infra Ltd. (erstwhile known as Ratna Kamal Holdings Ltd.) is currently engaged in the business of real estate development and construction. The company is also engaged in equity shares trading and investing activities. The operations of the company spans in all aspects of real estate developments.
To part finance development of residential complex worth Rs. 12.59 crore at Kolkata and raising general corpus funds, it is entering in capital market on 10.02.14 with an issue of 6430000 equity shares of Rs. 10 each at par to mobilize Rs. 6.43 crore. Issue will close on 12.02.14. Minimum application is to be made for 10000 shares and in multiples thereof, thereafter. Issue is lead managed by Inventure Merchant Banker Services Pvt. Ltd. and Purva Sharegistry (India) Pvt. Ltd. is registrar to the offer. Post allotment, shares will be listed on BSE SME. Post issue equity will rise to Rs. 24.36 crore. Between 31.03.2003 to 31.03.2012 the company issued at various times, equity shares at a price ranging from Rs. 50 to Rs. 1000 and then issued bonus shares in the ratio of 17 shares for every 1 share held on07.03.2013 and thereafter again made preferential issue at par to take the equity to Rs. 17.93 crore.
On performance front, the company has posted an average EPS of Rs. 0.06 for last three fiscals. For first seven months ended on 31.10.13 of current fiscal, it has earned net profit of Rs. 0.20 crore on a total turnover of Rs. 5.16 crore. It we attribute this earnings on annualized basis on expanded equity post issue, then EPS stands at Rs. 0.13 and based on this even at par the issue is being translating in P/E of 76+.
On merchant banker’s part, this is the seventh SME mandate from them and they have poor track records.
Even at par, issue is not worth.
Review By on February 5, 2014
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 Unishire Urban Infra Ltd. offers an early investment opportunity in Unishire Urban Infra Ltd.. A stock market investor can buy Unishire Urban Infra IPO shares by applying in IPO before Unishire Urban Infra Ltd. shares get listed at the stock exchanges. An investor could invest in Unishire Urban Infra IPO for short term listing gain or a long term.
Read the Unishire Urban Infra IPO recommendations by the leading analyst and leading stock brokers.
Unishire Urban Infra IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Unishire Urban Infra IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Unishire Urban Infra IPO?"
Our recommendation for Unishire Urban Infra IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Unishire Urban Infra IPO.
The Unishire Urban Infra IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Unishire Urban Infra IPO allotment status to check.
