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Review By Dilip Davda on September 9, 2015
Sri Krishna Constructions (India) Ltd (SKC) is Karnataka based realty sector company engaged in real estate developments. It has completed 7 projects (with saleable area of 12 lakh sq. ft.) and currently in the process of completing 2 more projects (with saleable area of 4.52 lakh sq.ft.). It has 3 projects (with saleable area of 2.60 sq. ft.) in the pipeline.
To meet the cost of acquisition of land, raise general corpus fund, the company is coming out with a maiden IPO of 2520000 equity share of Rs. 10 each at a fixed price of Rs. 45 per share to mobilize Rs. 11.34 crore. Issue opens for subscription on 10.09.15 and will close on 15.09.15. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Issue is lead managed by Pantomath Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE SME.
On performance front, the company has posted an average EPS of Rs. 2.74 per share (on post bonus basis) for last three fiscals. For FY15 it has earned net profit of Rs. 2.70 crore on a turnover of Rs. 28.51 crore. SKC raised equity capital as par from December 2005 to June 2015 up to a level of Rs. 2 crore and issued bonus shares in the ratio of 5 shares for every 2 shares held to raise it to Rs. 7 crore, which will stand enhanced to Rs. 9.52 crore post IPO. If we attribute FY15 earnings on fully diluted post IPO equity then the asking price is at a P/E of around 16 against Industry average P/E of 21 plus. Thus it is priced comparably well. Weighted average of its RONW for last three fiscal is at 26.59%. Based on its NAV of Rs. 12.08 (post bonus) the issue is being made at a P/BV of 3.7 plus.
On merchant banker’s front, this is 13th IPO from its stable and all its earlier mandates have good track records.
Well informed risk aver investors may consider investment in this IPO.
Review By Dilip Davda on September 9, 2015
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 Sri Krishna Constructions (India) Ltd offers an early investment opportunity in Sri Krishna Constructions (India) Ltd. A stock market investor can buy Sri Krishna Constructions IPO shares by applying in IPO before Sri Krishna Constructions (India) Ltd shares get listed at the stock exchanges. An investor could invest in Sri Krishna Constructions IPO for short term listing gain or a long term.
Read the Sri Krishna Constructions IPO recommendations by the leading analyst and leading stock brokers.
Sri Krishna Constructions IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Sri Krishna Constructions IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Sri Krishna Constructions IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Sri Krishna Constructions IPO.
The Sri Krishna Constructions IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Sri Krishna Constructions IPO allotment status to check.
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