Safa Systems & Technologies Limited IPO Message Board (Page 6)

Subject to 14000

What does subject to 14000 mean? Someone wants to buy it at 14000?

@gopinathji
Please tell from where you check

Sbt 12000

Sbt - Subject to rates, which means you are willing to buy/sell a ipo if alloted for a fixed price.

From where you check

The gross margin is very low. Basically they have very little money they make on every sale. This will take a long time to show improved profitability unless they start doing something really new.

Very good Pramoter

They are issuing at per , it shows their moral value .

We shou apply and encourage this type of fair minded Pramoter group .

I would be applying ,if dj mediaprint gives good return on Monday. I feel all will be busy with adani Wilmar and no one would see this ipo and won't be having fund also for this one ,so i find this as a opportunity but let's see how market is in coming days and last day subscription.

its not good in terms of very less profit margins and competitive sector. Better to avoid this one and quality RO ipo and invest in adani wilmar ipo during same time.

@ shamm ,the problem for me is lack of fund 😬 5.1 lakhs is invested in sme.
1.nupur
2.ab cotspin
3.djml - 2 lots

I will be applying 3 lots in safa
If subscription goes well.

@shanm: its closing date is 1st feb and that is budget day also so by 3pm we will come to know market reaction on budget and 2-3 mainboard/sme ipo will be listed by 31st jan and 1st feb so their performance we can see and finally the subscriptions here. I may apply here if conditions are favorable and if i have money left after adani wilmar ipo and i will post here by 2.30-2.45pm last day if i am applying.

Being a b2b supplier and with advent of eCommerce shopping they have to reduce their margin or else they will not be in the market. Sales increase itself is a good thing for them. I don't know whether this business will sustain in future due to the huge loans (25+crores )taken and interest payment constitue a major portion of profit (1.23 crores). One possible solution is increasing the trade payables (getting credit from suppliers by negotiating with them ) instead of bank loans.
[Difference between trade payable(6crores) & trade receivables(27crores) constitutes 21 crores approx].

One good thing is they have come at par. No listed peers. There is a possibility of some listing gain.
This issue won't be suffice to pay full debt but still it would have some savings in terms of interest.
Long term outlook not great unless they repay the debt and take trade credits.

Creative pheripheral and compuage infocom are listed peera

@bhupendra
Thanks buddy

From their RHP

Company has made a profit of just 29 Lakhs from 20 Crores in Revenue.

Year by Year, even this profit is decreasing, 35L in 2019, 31L in 2020, 29L in 2021.

They are raising 4 Crores, out of which 50 Lakhs is going to Lead Manager, so they are just left with 3.5Cr. I don't know how they are going to turn this company around with just 3.5Cr when 20 Crores in revenue can't do it for them.

The promoters also have another company called Safa Plywoods, which gave a loan to Safa Systems, but then converted the loan to equity.

Opinion : Not going to apply in this, company's profit is decreasing and margins are extremely small at 1.5%

A profitable company issuing shares at par is more than enough to get decent subscription. Mobile distribution company with major presence in South india

Very thin margins..... Surprisingly, this issue may also get decent oversubscription keeping in view the recent listing gains in SME issues.