Review By on July 1, 2017
Univastu India Ltd (UIL) is an ISO 9001:2015 certified Pune based construction company and provide integrated engineering, procurement and construction services (EPC) for civil & Structural construction and infrastructure sector projects. Currently the construction activity being undertaken by the company includes civil & Structural construction and infrastructure contracts which have been sub contracted to it by main contractors. UIL is also engaged in trading of construction materials. Its main trading products include steel, cement and electrical material.
UIL’s focus area includes activities like civil construction projects, which include structures such as Sports Complex Projects (Indoor and Outdoor Sport Stadiums), multi-purpose hall, commercial structures, industrial structures, Hospitals, Cold Storages, Educational Institution, mass housing projects; water Supply and Drainage Projects; road and Bridges Projects. major and minor Irrigation Projects etc. Its portfolio of completed and ongoing civil construction projects includes commercial and residential buildings, industrial structure, hospitals and educational campus, roads, cold storages, water supply projects.
To part finance its working capital requirements, purchase of equipments/tools and general corpus fund needs, the company is coming out with a maiden IPO of 1497000 equity share of Rs. 10 each with a fixed price of Rs. 40 per share to mobilize Rs. 5.99 crore. Issue opens for subscription on 14.07.17 and will close on 19.07.17. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is solely lead managed by Inventure Merchant Banker Services Pvt Ltd. and Bigshare Services Pvt Ltd is the registrar to the issue.
On performance front, the company has reported turnover/net profits of Rs. 20.50 cr. / Rs. 0.58 cr. (FY14), Rs. 24.66 cr. / Rs. 0.69 cr. (FY15), Rs. 24.16 cr. / Rs. 0.66 cr. (FY16) and Rs. 43.56 cr. / Rs. 1.27 cr. (FY17). While it suffered a setback in FY16, sudden jump in top and bottom line for FY 17 is surprising. If we attribute latest earnings on fully diluted post issue equity, then asking price is at a P/E of 17 plus against industry composite of 34 plus, and at a P/BV of 2.8. Last three fiscal’s average RoNW is 20.56%. Its peers are trading at a P/E ranging from 20 to 42. As on May 31, 2017, the value of company’s outstanding Order Book was Rs. 90.70 crore. From April 2009 to October 2016 it raised equity at par. It also issued bonus shares in the ratio of 17 shares for every 10 shares held. Thereafter it issued rights shares at a fixed price of Rs. 40 per share in December 2016 and March 2017. Post issue, its current paid up equity capital of Rs. 4.19 crore will stand enhanced to Rs. 5.68 crore.
On merchant banker’s front, this is the first SME IPO from its stable and has no track record.
Conclusion: Investors may consider investment for short to medium term in this reasonably priced issue.
Review By on July 1, 2017
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 Univastu India Ltd. offers an early investment opportunity in Univastu India Ltd.. A stock market investor can buy Univastu India IPO shares by applying in IPO before Univastu India Ltd. shares get listed at the stock exchanges. An investor could invest in Univastu India IPO for short term listing gain or a long term.
Read the Univastu India IPO recommendations by the leading analyst and leading stock brokers.
Univastu India IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Univastu India IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Univastu India IPO?"
Our recommendation for Univastu India IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Univastu India IPO.
The Univastu India IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Univastu India IPO allotment status to check.
