Review By on September 27, 2014
Vibrant Global Capital Ltd (VGCL) is a non-deposit accepting NBFC registered with RBI and is primarily engaged in investment and trading in listed/unlisted securities and financial products, providing long and short term loans and advances. All its operations are distributed among its various subsidiaries.
To part finance its increase in operational scale and repayment of part loan along with needs of corporate funds, the company is coming out with an IPO of 6042000 equity share of Rs. 10 each (including offer for sale of 3042000 equity shares by existing stakeholders) at a fixed price of Rs. 19 per share to mobilize Rs. 11.48 crore. Issue opens for subscription on 29.09.14 and will close on 07.10.14. Minimum application is to be made for 6000 shares and in multiples thereon, thereafter. Issue is lead managed by Hem Securities Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Post issue, shares will be listed on BSE SME. Its existing equity of Rs. 19.91 crore will rise to Rs. 22.91 crore post IPO. On standalone basis, the company is incurring losses.
On performance front, for last two fiscals it has earned total income of Rs. 161.15 crore (2012-13) and Rs. 209.90 crore (2013-14) with a loss of Rs. 1.69 crore and net profit of Rs. 1.77 crore. As on 31.3.14 it still has carried forward loss of Rs. 3.23 crore. As on 31.3.14 its paid up equity capital was Rs. 11.17 crore. The company issued all its equity for cash at par till 2009 to reach Rs. 2.45 crore and in 2011 it issued fresh equity worth Rs. 17.46 crore for Rs. 1.15 crore as cost of amalgamation. If we attribute the latest earnings on fully diluted equity post IPO then the asking price is at a P/E of 25.
On merchant banker’s front, this is 9th mandate and past mandates have mixed trends.
Avoid this costly bet that also has entry barrier on application as well as on trading post listing.
(Disclaimer: Author has no plans to invest in this IPO)
Review By on September 27, 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 Vibrant Global Capital Ltd. offers an early investment opportunity in Vibrant Global Capital Ltd.. A stock market investor can buy Vibrant Global Capital IPO shares by applying in IPO before Vibrant Global Capital Ltd. shares get listed at the stock exchanges. An investor could invest in Vibrant Global Capital IPO for short term listing gain or a long term.
Read the Vibrant Global Capital IPO recommendations by the leading analyst and leading stock brokers.
Vibrant Global Capital IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Vibrant Global Capital IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Vibrant Global Capital IPO?"
Our recommendation for Vibrant Global Capital IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Vibrant Global Capital IPO.
The Vibrant Global Capital IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Vibrant Global Capital IPO allotment status to check.
