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Review By Dilip Davda on June 25, 2015
M D Inducto Cast Ltd (MDIC) is the flagship company of M D Group. It is engaged in manufacturing of superior quality TMT bars and billets that are sold under the brand name Rudra TMX. Famous actor and politician Paresh Rawal is the brand ambassador of MDIC’s products. The company mulls PAN India presence going forward. M D group currently has turnover of Rs. 600 crore plus and is engaged in various business like ship recycling, oxygen plants, induction furnace, Re-rolling mills and producing 1.5 lakh MT of steel.
To meet its working capital requirements and other corpus funds, the company is coming out with an IPO of 6384000 equity share of Rs. 10 each at a fixed price of Rs. 27 per share to mobilize Rs. 17.24 crore. The issue opens for subscription on 30.06.15 and will close on 02.07.15. Minimum application is to be made for 4000 shares and in multiples thereon, thereafter. Post issue shares will be listed on BSE SME. This issue is solely lead managed by Pantomath Capital Advisor Pvt Ltd and Karvy Computershare Pvt Ltd is the registrar to the issue. In May 2015 the company issued bonus shares in the ratio of 5 shares for every 2 shares held and then a preferential issue at a price of Rs. 27 per share that took its equity to Rs. 17.70 crore that will stand enhanced to Rs. 24.09 crore.
On performance front the company has posted turnover/net profit of Rs. 43.67 crore /Rs. 0.83 crore (FY 2013), Rs. 318.04 crore/Rs. 4.32 crore (FY 2014) and Rs. 333.32 crore/Rs. 5.74 crore (FY 2015). If we attribute the FY 2015 earnings for fully diluted equity of Rs. 24.09 crore then the asking price of the offer is at a P/E of 11 plus and P/BV at 2.5 plus. Thus the offer appears to be reasonably priced compared to peers industry composite P/E of 34 plus as detailed in prospectus.
On merchant banker’s front, this is the 10th IPO from its stable and its past seven mandates have given positive rewards to investors. The eighth IPO of Ambition that is closing on 30.06.15 and Jiya Eco-Products still on.
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. As SME issues have entry barriers and low preference from broking community, any reader taking decisions based on any information published here does so entirely at own risk. Author has no plans to invest in this offer.
Review By Dilip Davda on June 25, 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 M D Inducto Cast Ltd offers an early investment opportunity in M D Inducto Cast Ltd. A stock market investor can buy MD Inducto Cast IPO shares by applying in IPO before M D Inducto Cast Ltd shares get listed at the stock exchanges. An investor could invest in MD Inducto Cast IPO for short term listing gain or a long term.
Read the MD Inducto Cast IPO recommendations by the leading analyst and leading stock brokers.
MD Inducto Cast IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the MD Inducto Cast IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for MD Inducto Cast 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 MD Inducto Cast IPO.
The MD Inducto Cast IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit MD Inducto Cast IPO allotment status to check.
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