SME INVESTOR IPO Review

Avoid

Company has allotted 56.59 lakhs share at face value of 10/- itself in March 2022 and IPO price is Rs. 125/- per share. How shares allotted at 10/- below the issue price is eligible for promoters lockin margin has to be checked in Final prospectus approved from BSE. As of now, company is violation of SEBI ICDR and not eligible for IPO till March 2023. @Dilip Davda sir expecting urs expert view in this regard

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Seems to be a good company. checked their LinkedIn profile also, having big IT corporate as clients. FY 2020 and 2021, profit margin seems to be suffered from Covid-21 Pandemic effect and company sustained to maintain their Top line revenue. Being in Manpower supply, its been very tough.

1

Avoid

Margin is very low and a big reason to avoid as no future development seen

margin in 2022 is pre-IPO decorative.

1

Avoid

Margin is very low and a big reason to avoid as no future development seen

Neutral

Capital Infusion and Year on Year capex is positive. Having many other Tea Gardens by Group. Asian Tea another listed group entities is performing average in Long Term

Avoid

Seeing the nature of business and comparison with other peers in the same line of business who have listed recently, the financials looks very week

Neutral

Promising Sector but financials not supporting Issue size at this stage
Issue size - Rs. 33.97 Cr
Cash Balance (30/06/2022) - 24.20 crores, (Total Rs. 58.17 crores)
where the fund be used and how contribute to Revenue and Profit is concern.
The object can be fulfilled from cash surplus on 30/06/2022 itself.
Post Issue Promoters holding is only 28.21% is also be concern.
Security Premium before IPO at page 45 is Rs. 32.41 Cr and as per page 46 is Rs. 15.85 Cr

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Good Company with
Strong customer base (Top 10 contributing only upto 30%)
almost 40% revenue coming from International clients👍
Collaboration with Microsoft Globally👍
330 employee base
Not any major Risk or Litigation👍
Consolidated Financials👍 (However standalone data not available)
Borrowing Negligible showing good financial strength👍
Happy Investing

Avoid

Draft Prospectus filed on 28/11/2022 and Got BSE approval on 02/12/2022 (In 4 working days) and issue opening on 08/12/2022, what a confidence over company and LM is concern. Is this sufficient time for regulator to do their due diligence.
Promoters past experience may be the main reason for such a lucrative financials in last 18 months when company started their operation in 2021.

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Another Good SME IPO. Company is Good, Financials are Good. Borrowings increasing due to capex for every year. A regional player in their state and exploring other geographical area for expansion.

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Huge subscription expected. Other than Bottom Line (PAT) other seems ok and reasonably priced. HEM himself is the LM and market maker is the USP for investor.