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Review By Dilip Davda on September 24, 2011
Flexituff International Ltd. (FIL):
The company originally incorporated as Saurabh Potteries and Ceramics has changed its name to Flexituff and is currently engaged in the business of manufacturing Flexible Intermediate Bulk Containers (FIBC), Geo-Textile Fabric and Ground Cover, Reverse Printed Biaxially Oriented Polypropylene (BOPP) Woven Bags, Special Polypropylene (PP) Bags including Leno Bags. It has has three integrated and self-sufficient manufacturing units located in Pithampur (M.P.) and Kashipur (Uttrakhand). FIL also has a recycling and reprocessing plant at Kandla which is used for recovering polypropylene and making various compounds of plastic. The company has its Research and Development centre at Kashipur which is engaged in the research and development of various compounds for plastic products including engineering plastic, bio-degradable plastic and other new product developments. Thus it is a multi product, multi location and multi market company exporting to over 30 countries world wide and has many first innovative products to its credit. Now the company is expanding its manufacturing facility at SEZ and DTA unit at Pithampur and setting up of a Dripper project at Kashipur along raising general corpus fund.
To part finance this, the company is coming out with a book building process issue of 6750000 equity share of Rs. 10 each within a price band of Rs. 145-155. The issue consists of offer for sale of 2250000 shares by Clearwater Capital Partners (Cyprus) Ltd. The issue opens for subscription on 29.09.11 and closes on 04.10.11 for QIB bidders and on 05.10.11 for other categories of bidders. Collins Stewart Inga Pvt. Ltd. is the sole BRLM to the offer and Link Intime India Pvt. Ltd. is the registrar to the issue. CARE has assigned IPO Grade 3 to this issue indicating at average fundamentals of the company. Shares will be listed on BSE and NSE. Minimum application is to be made for 40 shares and in multiples thereafter.
Collins brought 3 IPOs in the past and all of them have given positive returns on the debut day. On the financial performance front for company, it has posted an average EPS of Rs. 12.13 on consolidated basis. As for fiscal 2010-11 it has earned net profit of Rs. 30.97 crore on a turnover of Rs. 579 crore giving an EPS of Rs. 14.26 on fully diluted equity post this issue. Thus the offer is being made at a P/E of around 10.5 and at 1.6 P/BV which is justified.
Apply for medium to long term returns.
Review By Dilip Davda on September 24, 2011
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 before making any actual investment decisions, based on the information published here. My reviews do not cover GMP market and operators game plans. Any reader taking decisions based on any information published here does so entirely at their own risk. Investors should bear in mind that any investment in stock markets is subject to unpredictable market-related risks. The above information is based on RHP and other documents available as of date coupled with market perception. 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 Flexituff International Ltd offers an early investment opportunity in Flexituff International Ltd. A stock market investor can buy Flexituff IPO shares by applying in IPO before Flexituff International Ltd shares get listed at the stock exchanges. An investor could invest in Flexituff IPO for short term listing gain or a long term.
Read the Flexituff IPO recommendations by the leading analyst and leading stock brokers.
Flexituff IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Flexituff IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Flexituff IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Flexituff IPO.
The Flexituff IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Flexituff IPO allotment status to check.
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