Review By on June 26, 2015
VMV Holidays (VMVH) is engaged in the business of tours and travels and provides the entire gamut of activities associated with holidays like ticketing, local travel arrangement, hotel bookings, Adventure tours, etc. under a single roof to its clients. It also provides the most suited holidays/trips to its clients, which are customized to meet their requirements. VMVH’s services and products include Inbound and Outbound Travel and Tours Services, Domestic tour arrangements, bookings of Air tickets and hotels for domestic/international travels and also Rent a Car facility.
To part finance setting up of office in Mumbai, expansion of online services and brand building excercise the company is coming out with an IPO of 1560000 equity share of Rs. 10 each at par t to mobilize Rs. 1.56 crore. Issue opens for subscription on 29.06.15 and will close on 01.07.15. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Post issue shares will be listed on BSE SME. Issue is lead managed by Guiness Corporate Advisors Pvt Ltd. Sharepro Services India Pvt Ltd is the registrar to the issue. Its current equity of Rs. 4.02 crore will stand enhanced to Rs. 5.58 crorse post this IPO.
On performance front, for last three fiscals it has posted turnover/net profit of Rs. 0.62 crore/Rs. 0.004 crore (FY 2012), Rs. 1.46 croare/Rs. 0.006 crore (FY 2013) and Rs. 1.79 crore with a loss of Rs. 0.008 crore. For first nine months ended 31.12.14 it has earned net profit of Rs. 0.03 crore on a turnover of Rs. 2.28 crore. In February 2014 it issued bonus shares in the ratio of 0.7 shares for every 1 share held and then issued preferential equity at par to reach Rs. 4.02 crore paid up equity. Merchant banker has erratic performances for its past mandates. This is 16th IPO from its stable.
Based on latest earnings, if we annualized and attribute it to fully diluted equity post IPO, then asking price is at 140 plus P/E and thus a risky bet.
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. As SME issues have entry barriers and low preference from broking community, any reader taking decisions based on any information published here does so entirely at own risk. Author has no plans to invest in this offer.
Review By on June 26, 2015
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 VMV Holidays Ltd. offers an early investment opportunity in VMV Holidays Ltd.. A stock market investor can buy VMV Holidays IPO shares by applying in IPO before VMV Holidays Ltd. shares get listed at the stock exchanges. An investor could invest in VMV Holidays IPO for short term listing gain or a long term.
Read the VMV Holidays IPO recommendations by the leading analyst and leading stock brokers.
VMV Holidays IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the VMV Holidays IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is VMV Holidays IPO?"
Our recommendation for VMV Holidays IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the VMV Holidays IPO.
The VMV Holidays IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit VMV Holidays IPO allotment status to check.
