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Review By Dilip Davda on August 9, 2013
In the illiquid market, we have yet another BSE SME IPO of VKJ Infradevelopers that is also opening on 12th August 2013 for its Rs. 12.75 crore float. Details of the issue are as under:
VKJ Infradevelopers (VIL) commenced its operations in March 2010 as a trader of construction-related materials like soils, sand etc. Currently, along with trading, it also carries out civil work like land filling, site development, fencing etc. The company has its operations mainly in Delhi and Noida. To meet the fund requirements for execution of our Ongoing and Forthcoming Projects and other working capital requirements, the company is offering 5100000 equity shares of Rs. 10 each at a fixed price of Rs. 25 per share. The issue opens for subscription on 12.08.13 and will close on 16.08.13. Post issue the shares will be listed on BSE SME. Minimum application is to be made for 6000 shares and in multiples thereof, thereafter. Issue is solely lead managed by Inventure Merchant Banker Services Pvt. Ltd and Sharepro Services (India) Pvt. Ltd. is the registrar to the issue.
As for the company’s performance, for last three fiscals it has posted an average EPS of Rs. 4.36. For the fiscal 2011-12 it has posted and EPS of Rs. 4.40 and for the 11 months period ended on 28.02.13 it has posted EPS of Rs. 0.07 (not annualized). The company issued its equity at a fancy price on 31.3.2011 105700 shares at Rs. 100 per share, on 30.03.12 85455 shares at Rs. 500 per share and then on 16.1012 issued liberal bonus in the ratio of 25 shares for every 1 share held. Over and above these, it again issued 20000 equity shares at Rs. 25 per share on 18.06.13 and 7500000 shares at par on 26.06.13. Now it wants premium from the public for the IPO process. Its equity that was just Rs. 0.20 crore on 31.3.2012 rose to Rs. 5.23 crore on 28.02.13 and as on 30.06.13 it stood at Rs. 12.75 crore. It will further rise to Rs. 17.85 crore post this issue. For 11 months ended on 28.02.13 its turnover was Rs. 2.60 crore with a net profit of Rs. 0.04 crore translating the offer price at a P/E of 1000+.
As for the merchant banker’s performance, this is the fourth SME issue from their stable and considering their market game in its own parent company and the other mandates listing, one may get some rewards. But current status are not having encouraging trends and hence, investors should just SKIP this offer.
Review By Dilip Davda on August 9, 2013
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. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The initial public offer (IPO) of VKJ Infradevelopers Ltd offers an early investment opportunity in VKJ Infradevelopers Ltd. A stock market investor can buy VKJ Infradevelopers IPO shares by applying in IPO before VKJ Infradevelopers Ltd shares get listed at the stock exchanges. An investor could invest in VKJ Infradevelopers IPO for short term listing gain or a long term.
Read the VKJ Infradevelopers IPO recommendations by the leading analyst and leading stock brokers.
VKJ Infradevelopers IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the VKJ Infradevelopers IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for VKJ Infradevelopers IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the VKJ Infradevelopers IPO.
The VKJ Infradevelopers IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit VKJ Infradevelopers IPO allotment status to check.
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