Review By on March 24, 2014
Women's Next Loungeries Ltd. is engaged in women's innerwear segment that included designing; manufacturing, branding and marketing of lingerie wear, honeymoon set, intimate wear etc. Its products are marketed under the brand name of 'Valentine Pink' and 'Women's Next'. To meet upgradation cost of the existing unit, repayment of loans and meeting working capital requirement, the company is coming out with an issue of 1000000 equity share of Rs. 10 each at a fixed price of Rs. 65 per share to mobilize Rs. 6.50 crore. Issue opens for subscription on 28.03.14 and will close on 07.04.14. Thus long duration for a tiny issue has surprised one and all. The issue is lead managed by Pantomath Capital Advisors Pvt Ltd. and Link Intime India Pvt. Ltd. is the registrar to the issue. Minimum application is to be made for 2000 shares and in multiples thereof, thereafter. Post allotment, the shares will be listed on BSE SME.
On performance front, for the last two fiscals the company has posted a turnover / net profit of Rs. 22.36 crore/Rs. 0.42 crore (2011-12) and Rs. 32.23 crore/Rs.0.68 crore (2012-13). For the first six months ended on 30.09.13 it has earned net profit of Rs. 0.48 crore on a turnover of Rs. 19.40 crore with an EPS of Rs. 19.20 on an equity base of Rs. 0.50 crore by then on annualized basis which has gone up to Rs. 1.50 crore post bonus issue in the ratio of 2 for 1. Thus on enhanced equity post bonus, the revised EPS stands is at Rs. 6.40. But if we attribute these earnings on post IPO equity of Rs. 2.50 crore then EPS stands at Rs. 3.84. Thus asking price of the issue is at a P/E of 16+ and at a P/BV of 0.32.
On merchant banker's front, this is the second mandate from them and the first IPO of Si Vi Shipping is witnessing some operation with upward bias on a very thin volume since listing indicating some play of this market maker.
As peers are trading at higher P/E then this, the IPO looks attractive, but the entry barrier as minimum investment of Rs. 1.30 lakh per application and also for trading in the same lost post listing, only risk aver HNIs may dare to park their fund in this IPO. Retail investors should avoid.
Review By on March 24, 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 Women's Next Loungeries Ltd. offers an early investment opportunity in Women's Next Loungeries Ltd.. A stock market investor can buy Women's Next Loungeries IPO shares by applying in IPO before Women's Next Loungeries Ltd. shares get listed at the stock exchanges. An investor could invest in Women's Next Loungeries IPO for short term listing gain or a long term.
Read the Women's Next Loungeries IPO recommendations by the leading analyst and leading stock brokers.
Women's Next Loungeries IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Women's Next Loungeries IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Women's Next Loungeries IPO?"
Our recommendation for Women's Next Loungeries IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Women's Next Loungeries IPO.
The Women's Next Loungeries IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Women's Next Loungeries IPO allotment status to check.
