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Review By Dilip Davda on March 10, 2017
Relstruct Buildcon Ltd (RBL) is in a construction/ real estate business. It had successfully undertaken, executed and completed residential projects in Mumbai such as Pujari Apartment, Chembur, Giri Niwas, Vikhroli, Sargam Tower, Tilak Nagar, Hill View Apartment, Chembur with assured quality standards. With determined efforts and gradually progression, Company undertook the business of constructing buildings, township, commercial complexes and constructional works of every description on any land owned by them or upon any other land or immovable property owned by the landlord as a joint venture as well as co-developers. As a real estate developer with a diversified portfolio of real estate projects, it also undertakes redevelopment of government housing projects, customized infrastructure projects, marketing of residential and commercial unit and offering our consultancy\ liason service for real estate projects.
As part of growth plan, RBL has taken up projects in and around Mumbai, Maharashtra. Currently, its business activity includes Development and construction of Residential and Commercial Complex, Re development and Slum Redevelopment project under Development \ joint venture basis, Development of Township and affordable housing project near Metro cities, Infrastructure development under work contract from Government authority and corporate and Consultancy, Design and Drawing for Real Estate project and monitor them during implementation
To part finance its on hand construction and development work, purchase of equipments, general corpus fund needs, the company is coming out with a maiden IPO of 4671000 equity share of Rs. 10 each at a fixed price of Rs.50 per share to mobilize Rs. 23.36 crore. Issue opens for subscription on 22.03.17 and will close on 24.03.17. 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 lead managed by Monarch Networth Capital Ltd and Karvy Computershare Pvt Ltd is the registrar to the issue. Till 2015 it issued all equity at par and then in April 2016 it issued further equity at a price of Rs. 22 per share. Its current paid up equity capital of Rs. 10 crore will stand enhanced to Rs. 14.67 crore post issue.
On performance front, it has posted revenue/net profits of Rs. 0.04 cr. / Rs. 0.003 cr. (FY15) and Rs. 0.26 cr. / Rs. 0.008 cr. (FY16). For nine months ended 31.12.16 it has posted net profit of Rs. 0.03 crore on a revenue of Rs. 0.22 crore. If we annualize these earnings and attribute on fully diluted equity post issue then asking price is at a P/E of 16600 plus making it a highly priced risky bet.
On merchant banker’s front, this is the 4th mandate and earlier mandates have given some rewards on listing day.
Conclusion: Issue is very highly priced and having a business in most competitive field. Only risk savvy cash surplus investors may consider it for long term.
Review By Dilip Davda on March 10, 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 Relstruct Buildcon Ltd offers an early investment opportunity in Relstruct Buildcon Ltd. A stock market investor can buy Relstruct Buildcon IPO shares by applying in IPO before Relstruct Buildcon Ltd shares get listed at the stock exchanges. An investor could invest in Relstruct Buildcon IPO for short term listing gain or a long term.
Read the Relstruct Buildcon IPO recommendations by the leading analyst and leading stock brokers.
Relstruct Buildcon IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Relstruct Buildcon IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Relstruct Buildcon 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 Relstruct Buildcon IPO.
The Relstruct Buildcon IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Relstruct Buildcon IPO allotment status to check.
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