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Review By Dilip Davda on July 1, 2017
Univastu India Ltd (UIL) is an ISO 9001:2015 certified Pune based construction company and provide integrated engineering, procurement and construction services (EPC) for civil & Structural construction and infrastructure sector projects. Currently the construction activity being undertaken by the company includes civil & Structural construction and infrastructure contracts which have been sub contracted to it by main contractors. UIL is also engaged in trading of construction materials. Its main trading products include steel, cement and electrical material.
UIL’s focus area includes activities like civil construction projects, which include structures such as Sports Complex Projects (Indoor and Outdoor Sport Stadiums), multi-purpose hall, commercial structures, industrial structures, Hospitals, Cold Storages, Educational Institution, mass housing projects; water Supply and Drainage Projects; road and Bridges Projects. major and minor Irrigation Projects etc. Its portfolio of completed and ongoing civil construction projects includes commercial and residential buildings, industrial structure, hospitals and educational campus, roads, cold storages, water supply projects.
To part finance its working capital requirements, purchase of equipments/tools and general corpus fund needs, the company is coming out with a maiden IPO of 1497000 equity share of Rs. 10 each with a fixed price of Rs. 40 per share to mobilize Rs. 5.99 crore. Issue opens for subscription on 14.07.17 and will close on 19.07.17. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is solely lead managed by Inventure Merchant Banker Services Pvt Ltd. and Bigshare Services Pvt Ltd is the registrar to the issue.
On performance front, the company has reported turnover/net profits of Rs. 20.50 cr. / Rs. 0.58 cr. (FY14), Rs. 24.66 cr. / Rs. 0.69 cr. (FY15), Rs. 24.16 cr. / Rs. 0.66 cr. (FY16) and Rs. 43.56 cr. / Rs. 1.27 cr. (FY17). While it suffered a setback in FY16, sudden jump in top and bottom line for FY 17 is surprising. If we attribute latest earnings on fully diluted post issue equity, then asking price is at a P/E of 17 plus against industry composite of 34 plus, and at a P/BV of 2.8. Last three fiscal’s average RoNW is 20.56%. Its peers are trading at a P/E ranging from 20 to 42. As on May 31, 2017, the value of company’s outstanding Order Book was Rs. 90.70 crore. From April 2009 to October 2016 it raised equity at par. It also issued bonus shares in the ratio of 17 shares for every 10 shares held. Thereafter it issued rights shares at a fixed price of Rs. 40 per share in December 2016 and March 2017. Post issue, its current paid up equity capital of Rs. 4.19 crore will stand enhanced to Rs. 5.68 crore.
On merchant banker’s front, this is the first SME IPO from its stable and has no track record.
Conclusion: Investors may consider investment for short to medium term in this reasonably priced issue.
Review By Dilip Davda on July 1, 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 Univastu India Ltd offers an early investment opportunity in Univastu India Ltd. A stock market investor can buy Univastu India IPO shares by applying in IPO before Univastu India Ltd shares get listed at the stock exchanges. An investor could invest in Univastu India IPO for short term listing gain or a long term.
Read the Univastu India IPO recommendations by the leading analyst and leading stock brokers.
Univastu India IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Univastu India IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Univastu India IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Univastu India IPO.
The Univastu India IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Univastu India IPO allotment status to check.
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