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Review By Dilip Davda on March 7, 2017
Manomay Tex India Ltd (MTIL) BSE SME IPO to open on Mar 15, 2017 and close for subscription on Mar 20, 2017. The price band for the issue has been fixed at Rs 27 at lower level and Rs 30 at upper level. The equity shares of the company to be list at BSE SME.
Manomay Tex India Ltd (MTIL) is primarily engaged into manufacturing and sale of denim fabrics in national and international markets under 'Manomay' brand. The denim manufactured by the company ranges from 9 to 14 Oz/Sq Yd with different blends of cotton, polyester etc. with foam and wet finish. It is also focusing on suiting fabrics of different qualities as per the market demand. MTIL has recently ventured into international markets.
To part finance its working capital requirements and general corpus fund needs, the company is coming out with a maiden IPO of 3804000 equity share of Rs. 10 each via book building route with a price band of Rs. 27-30 to mobilize around Rs. 11.41 crore (at the higher price band). Issue opens for subscription on 15.03.17 and will close on 20.03.17. Minimum application is to be made for 4000 shares and in multiples thereon, thereafter. Post allotment shares will be listed on BSE SME. Having issued initial equity at par for MoA, it issued further equity at a price of Rs. 100 per share from 2009 to 2016. It has also issued bonus shares in the ratio of 4 for 1 on 08.12.16. Post issue, its current paid up equity capital of RS. 8.88 crore will stand enhanced to Rs. 12.68 crore.
On performance front, the company has posted turnover/net profits of RS. 101.75 cr. / Rs. -0.76 cr.(Loss) (FTY14), Rs. 166.15 cr. / Rs. 0.22 cr. (FY15) and Rs. 218.19 cr. / Rs. 1.34 cr. (FY16). For first half of the current fiscal, it has earned net profit of Rs. 1.65 cr. on a turnover of Rs. 145.01 cr. If we annualize these earnings and attribute to fully diluted equity post issue, then asking price is at a P/E of around 11 (against peer industry P/E of 23 plus) and P/BV of around 1.4.
On merchant banker's front, this is the 35th mandate from its stable and in last three fiscals till date it has brought 34 issues that have shown mixed trends post listing. (p437 of RHP)
Conclusion: Cash surplus investors may consider investment for long term.
Review By Dilip Davda on March 7, 2017
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 Manomay Tex India Ltd offers an early investment opportunity in Manomay Tex India Ltd. A stock market investor can buy Manomay Tex India IPO shares by applying in IPO before Manomay Tex India Ltd shares get listed at the stock exchanges. An investor could invest in Manomay Tex India IPO for short term listing gain or a long term.
Read the Manomay Tex India IPO recommendations by the leading analyst and leading stock brokers.
Manomay Tex India IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Manomay Tex India IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Manomay Tex India 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 Manomay Tex India IPO.
The Manomay Tex India IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Manomay Tex India IPO allotment status to check.
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