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Review By Dilip Davda on March 30, 2016
Raghav Ramming Mass Ltd. (RRML) is engaged in the manufacturing, supply and export of good quality ramming mass (quartz powder) mineral based on the customer requirements which are widely used in as refractory material in induction furnace. RRML is also engaged in the business of purchase and sale (trading) of G I sheets on the basis of the orders received from third parties. It supplies these G I Sheets to these third parties after sourcing the same from various suppliers.
To part finance its working capital requirements and meeting general corpus funds, the company is coming out with a maiden IPO of 1920000 equity share of Rs. 10 each at a fixed price of Rs. 39 per share to mobilize Rs. 7.49 crore. Issue opens for subscription on 31.03.16 and will close on 06.04.16. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely managed by Hem Securities Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Having issued equity at par from inception to 2010 it issued further equity at a price of Rs. 100 per share in February and March 2010 and then issued further equity at a price of Rs. 1000 per share in January 2012. There after it issued further equity at par in August 2012 and August 2015. It also issued bonus shares in the ratio of 6 shares for every 1 share in October 2015. Its current paid up equity capital of Rs. 5.26 crore will stand enhanced to Rs. 7.18 crore post IPO.
On performance front, company has posted consistent rise in top and bottom lines since 2011 till now. Its turnover/net profits for last three fiscals were Rs. 17.21 cr. / Rs. 0.34 cr. (FY13), Rs. 21.61 cr. / Rs. 0.47 cr. (FY14) and Rs. 37.88 cr. / Rs. 0.76 cr. (FY 15). For first six months ended 30.09.15 it has reported net profit of Rs. 0.88 crore on a turnover of Rs. 22.77 crore. If we annualize these earnings and attribute it to fully diluted equity post IPO then asking price is at a P/E of around 16. As per offer documents, the company has no listed peers to compare with.
On merchant banker’s front, this is 19th IPO from its stable and earlier mandates have shown mixed trends post listings.
Conclusion: Risk savvy investors having surplus funds may consider this IPO for long term rewards.
Review By Dilip Davda on March 30, 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 Raghav Ramming Mass Ltd offers an early investment opportunity in Raghav Ramming Mass Ltd. A stock market investor can buy Raghav Ramming IPO shares by applying in IPO before Raghav Ramming Mass Ltd shares get listed at the stock exchanges. An investor could invest in Raghav Ramming IPO for short term listing gain or a long term.
Read the Raghav Ramming IPO recommendations by the leading analyst and leading stock brokers.
Raghav Ramming IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Raghav Ramming IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Raghav Ramming IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Raghav Ramming IPO.
The Raghav Ramming IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Raghav Ramming IPO allotment status to check.
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