Review By Dilip Davda on October 1, 2013
After two at par SME IPOs in the beginning of week , we have yet another SME IPO that opens on 04.10.13.
VCU Data is the owner and provider of Rights for one of the world's most unique Interactive Audio/Video Live Streaming hardware/software solutions for the masses at high quality and low bandwidth. The product was built to cater to the infrastructure of Countries worldwide. VCU Pack boasts unique video encoder, media server, decoder and 2G/3G/4G/wifi and bandwidth aggregation technology with over 6 years of research and development from 7 countries made HD video communication better even at low and fluctuating bandwidth. Our objectives are ambitious yet achievable and with our management team and the experience of our founders' core competencies we are certain to reach our targeted goals. It's business is currently within the 1 year start up phase of operations and serves a targeted population that consists of media houses, businesses, government bodies, law enforcement agencies & retail individuals.
To implement marketing activities, acquiring fixed assets, meeting working capital etc, the company is issuing 7500000 equity share of Rs. 10 each at a fixed price of Rs. 25 per share to mobilize Rs. 18.75 crore. Issue opens on 04.10.13 and will close on 08.10.13. Minimum application is to be made for 6000 shares and in multiples thereof, thereafter. Issue is solely lead managed by Networth Stockbroking Ltd. and Sharepro Services (India) Pvt. Ltd is the registrar to the issue. Post allotment of shares, it will be listed on BSE SME. The project is not appraised by any competent authorities. Current equity of Rs. 8.00 crore will rise to Rs. 15.50 crore post this issue. Promoters have just 3.06% stake in the current equity of Rs. 8 crore.
The company has yet to start its activities and hence its NAV before the issue stands at Rs. 9.73 with no earnings. For the first time, we marked odd reports in final prospectus that also has disclaimer that timely listing of the issue is not guaranteed. (Clause no. 4 on page 21 of the prospectus)
On merchant banker's front, no track record of past mandate is available.
Review By Dilip Davda on October 1, 2013
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 VCU Data Management Ltd. offers an early investment opportunity in VCU Data Management Ltd.. A stock market investor can buy VCU Data Management IPO shares by applying in IPO before VCU Data Management Ltd. shares get listed at the stock exchanges. An investor could invest in VCU Data Management IPO for short term listing gain or a long term.
Read the VCU Data Management IPO recommendations by the leading analyst and leading stock brokers.
VCU Data Management IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the VCU Data Management IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is VCU Data Management IPO?"
Our recommendation for VCU Data Management IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the VCU Data Management IPO.
The VCU Data Management IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit VCU Data Management IPO allotment status to check.
