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Review By Dilip Davda on December 26, 2016
Prolife Industries Ltd (PIL) is engaged in the business of manufacturing special and exclusive range of intermediates for dyes, pigments, pharmaceuticals, agrochemicals and others. The company originally founded in the year 1994 in the name of Mamta Dyes & Intermediates Private Ltd and has been in this Industry from the very inception. Company has established even its own Research & Development Department within few years of incorporation of the company. It has already succeeded in developing very high quality Specialty Chemicals as result of thorough knowledge and R & D efforts. The company has established its presence in domestic as well export market and are regularly catering to the needs of their customers in many countries including U.S.A, Spain, Switzerland, Germany, France, Taiwan, Japan, Germany, Brazil etc.
At present the company is manufacturing mainly ranges of intermediaries for dyes, pigments, pharmaceuticals agro chemicals. PIL’s existing and proposed product and products mix are Dehydro Thio Para Toluidine Sulfonic Acid (DTPTSA), Amino Phenoxy Propane Sulfonic Acid (SPA), Amino Methyl Phenoxy Sulfonic Acid (SPMT), PYBIZS- 4-Nitrile-1-Hydroxy-8-Metoxy-3-Methyl Benzo [4,5] Imidazo [1,2A] Pyridine-7 & Sulphonic Acid & its sodium salt, Basic Red51/Red 76/Brown16/Brown17/Brown99/yellow-1/Yellow57/Orange31, 2-Chloro Methyl -3,4- Dimethoxy Pyridine, Octahydro-4B-Methyl-9 (Methylamino), Di Amino Bisphenoxy Ethane, 5-Methoxy 6- Amino Benz Imidazole Para Nitro Aniline, Epsilon Acid, 2:4 Di Nitro Aniline, Dichloro Para Nitro Aniline, Ortho Chloro Para Nitro Aniline, 6 Chloro 2:4 Di Nitro Aniline, 6 Bromo Di Nitro Aniline.
To part finance its expansion plans and meeting general corpus funding needs, the company is coming out with a maiden IPO of 1110000 equity shares of Rs. 10 each at a fixed price of Rs. 38 per share to mobilize Rs. 4.22 crore. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Issue opens for subscription on 27.12.16 and will close on 30.12.16. Post allotment, shares will be listed on NSE SME Emerge. The issue constitutes 27.11 per cent of the post issue paid up equity capital of the company. Issue is solely managed by Swastika Investmart Ltd and Link Intime India Pvt. Ltd is the registrar to the issue. All equity so far is issued at par and a bonus share in the ratio of 1 for 1 in August 2016. Its current paid up equity capital of Rs. 2.98 crore will stand enhanced to Rs. 4.09 crore post IPO.
On performance front, the company has reported turnover/net profits of Rs. 19.06 cr. / Rs. 0.22 cr. (FY14), Rs. 19.89 cr./ Rs. 0.40 cr. (FY15) and Rs. 22.83 cr. / Rs. 0.59 cr. (FY16). For first quarter of the current fiscal, it has earned net profit of Rs. 0.17 cr. on a turnover of Rs. 4.19 cr. If we annualized these earnings and attribute on fully diluted equity post IPO then asking price is at a P/E of 22 plus making it a highly priced issue.
On merchant banker’s front, this is the first mandate from its stable and has no track records.
Conclusion: Only Risk aver cash surplus investors may consider long term investment.
Review By Dilip Davda on December 26, 2016
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 Prolife Industries Limited offers an early investment opportunity in Prolife Industries Limited. A stock market investor can buy Prolife Industries IPO shares by applying in IPO before Prolife Industries Limited shares get listed at the stock exchanges. An investor could invest in Prolife Industries IPO for short term listing gain or a long term.
Read the Prolife Industries IPO recommendations by the leading analyst and leading stock brokers.
Prolife Industries IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Prolife Industries IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Prolife Industries IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Prolife Industries IPO.
The Prolife Industries IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Prolife Industries IPO allotment status to check.
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