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Review By Dilip Davda on August 27, 2014
While we had a main line IPO of Snowman Logistics in last week of August 2014 that evoked good response, SME IPOs have once again started making a bee line. We have yet another BSE SME platform IPO opening in first week of September 2014. Details are as under:
Naysaa Securities Ltd (NSL) is offering wide range of products & services covering equity broking and F&O to all kinds of investors viz. Retail, high net worth individuals and corporate. NSL is a member of Capital Market Segment & Trading Member of Futures & Options Segment of BSE Ltd and has applied for trading membership of National Stock Exchange of India Limited. To enhance its branch network, margin funding requirements and expand domestic operations, the company is coming out with its maiden SME offer of Rs. 1.50 crore. It is offering 1000000 equity shares of Rs. 10 each at a fixed price of Rs. 15 per share. Issue opens for subscription on 05.09.14 and will close on 12.09.14. Minimum application is to be made for 8000 shares and in multiple thereof, thereafter. Issue is lead managed by Guiness Corporate Advisors Pvt Ltd. and Bigshare Services Pvt Ltd is the registrar to the issue. Company’s equity of Rs. 0.30 crore as on 31.03.13 enhanced to Rs. 2.48 crore by way of bonus issue as well as preferential offer at a price of Rs. 15 per share in the concluded fiscal. Company’s post issue equity will be Rs. 3.48 crore. It will be listed on BSE SME.
On performance front, the company has shown in-consistency with mere profits. Last three fiscals average EPS is Rs. 0.09. For fiscal 2013-14 it earned net profit of Rs. 0.01 crore on a total income of Rs. 7.08 crore and if we attribute this earnings on fully diluted equity post this issue, then the asking price is at a P/E of 1500. Thus it is exorbitantly priced.
On merchant banker’s front, although many of its offers are trading at fantastic prices with no supporting performance of the companies, it appears that it is totally with market operations and hence, those who would like to risk their hard earn money for such gains, may do so; others should simply avoid this issue.
Remark: Avoid this costly and risky bet that also has entry barrier.
Review By Dilip Davda on August 27, 2014
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 Naysaa Securities Ltd offers an early investment opportunity in Naysaa Securities Ltd. A stock market investor can buy Naysaa Securities IPO shares by applying in IPO before Naysaa Securities Ltd shares get listed at the stock exchanges. An investor could invest in Naysaa Securities IPO for short term listing gain or a long term.
Read the Naysaa Securities IPO recommendations by the leading analyst and leading stock brokers.
Naysaa Securities IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Naysaa Securities IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Naysaa Securities IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Naysaa Securities IPO.
The Naysaa Securities IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Naysaa Securities IPO allotment status to check.
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