Maheshwari Logistics Ltd (MLL) is engaged in providing logistics services, supplying of non-coking coal, manufacturing of kraft paper and trading in variety of papers. Thus the company has diverse business model that covers three sectors i.e. logistics, fuel and papers.
To part finance its working capital requirements and general corpus fund needs, the company is coming out with a maiden IPO of 3996000 equity share of Rs. 10 each at a fixed price of Rs. 68 per share to mobilize Rs. 27.17 crore. Issue opens for subscription on 30.12.16 and will close on 06.01.2017. Minimum application is to be made for 2000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is solely managed by Pantomath Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. After initial issue at par, it issued further capital at a price ranging from Rs. 110 to Rs. 1968 and has also issued bonus in the ratio of 4 for 1 in March 2012 and 1 for 1 in December 2016. Post issue its current paid up equity capital of Rs. 10.80 crore will stand enhanced to Rs. 14.80 crore.
On performance front, it has posted turnover/net profits of Rs. 414.89 cr. / Rs. 5.17 cr. (FY14), Rs. 534.93 cr. / Rs. 5.84 cr. (FY15) and Rs.605.47 cr. / Rs. 6.92 cr. (FY16). For first half of the current fiscal it has posted net profit of Rs. 4.71 crore on a turnover of Rs. 334.81 cr. If we annualize these earnings and attribute on fully diluted equity post IPO, then asking price is at a P/E of 10 plus and a P/BV of around 1.2 that appears to be reasonable. The company has no listed peer to compare with.
On merchant banker’s front, this is the 33rd mandate from its stable and earlier mandates have shown mixed trends post listings.
Conclusion: Considering the future prospects of logistics, fuel and paper sectors, this issue may be considered for investment on medium to long term.
Review By Dilip Davda on Dec 29, 2016
The Maheshwari Logistics IPO Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered IPO Analysts tells you if Maheshwari Logistics IPO worth investing. The Maheshwari Logistics IPO Note sets the IPO expectations in systematic way which tells you if Maheshwari Logistics IPO good to buy (good or bad / yes or no). The IPO Forecast tells you weather to invest in Maheshwari Logistics IPO by providing IPO recommendations i.e. subscribe, avoid and neutral.
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. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. With entry barriers, SEBI wants only well informed investors to participate is such offers. With crazy recent listings, SME IPOs have started drawing attention of investors across the board. However, as SME issues have entry barriers and continued low preference from broking community, any reader taking decisions based on any information published here does so entirely at own risk. Above information is based on information available as on date coupled with market perceptions. Author has no plans to invest in this offer.
(SEBI registered Research Analyst-Mumbai).
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 new papers.
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