Review By on June 27, 2012
VSK Projects Ltd.: The Company is an EPC contractor and is now planning to procure construction equipments and key machinery for its business model as also setting up of engineering design studio and training centres at Chennai, Cochin, Delhi, Hyderabad and Ahmedabad. For meeting funding for this plans and other general corpus fund, it is offering (*) equity shares of Rs. 10 each within a price band of Rs. 55-60 to mobilize around Rs. 55 crore. The issue is opening on 29.06.12 and will close on 04.07.2012. Minimum application is to be made for 100 shares and in multiples thereof. Aryaman Financial Services Ltd. is the sole BRLM for this offer and Bigshare Services Pvt. Ltd. is the registrar to the issue. Shares will be listed on BSE and NSE post allotment. This IPO has been graded IPO Grade 1 by CRISIL indicating poor fundamentals of the company. As on 31.12.2011 the order book of the company stood at Rs. 98.25 crore.
On performance front, for last two fiscals the company reported Total turnover/ net profit of Rs 60.25 crore/3.16 crore (2010-11) and Rs. 30.24 crore/Rs. 2.00 crore (2009-10) respectively. For the nine months ended 31.12.2011 it has earned net profit of Rs. 5.63 crore on a turnover of Rs. 97.55 crore. In December 2010 it issued bonus shares in the ratio of 4 shares for every 1 share held. Last three fiscal's average EPS stands at Rs. 8.49 and for nine month period at Rs. 7.03 and NAV of Rs. 23.09 per share. These EPS gets diluted on enhanced equity post this issue and thus issue looks fully priced. BRLM's track record is poor. Lower IPO grading also makes it a risky bet, hence avoid.
Review By on June 27, 2012
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 VKS Projects Ltd. offers an early investment opportunity in VKS Projects Ltd.. A stock market investor can buy VKS Projects IPO shares by applying in IPO before VKS Projects Ltd. shares get listed at the stock exchanges. An investor could invest in VKS Projects IPO for short term listing gain or a long term.
Read the VKS Projects IPO recommendations by the leading analyst and leading stock brokers.
VKS Projects IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the VKS Projects IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is VKS Projects IPO?"
Our recommendation for VKS Projects IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the VKS Projects IPO.
The VKS Projects IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit VKS Projects IPO allotment status to check.
