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Review By Dilip Davda on Jun 15, 2017
Accord Synergy Ltd (ASL) is engaged in offering support services to the high end telecom segments such as network planning & optimization, network rollout, managed services and manpower solutions through sub-contracting basis. ASL provides all services related to planning, installation & commissioning, operation, expansion, modification and maintenance of telecom networks and provide manpower solutions to customers. The company is offering a wide variety of services and solutions i.e. technical site surveys, radio surveys, network planning, radio and core equipment (BBS, RBS 2G, 3G and LTE) installation, installation supervision and commission/integration services to a wide variety of equipments and vendors.
The continued growth in the number of cellular subscribers & service provider’s along with increasing minutes of usage per subscriber will require telecom operators to add additional equipments and make investment on cellular sites to maintain optimum performance of their networks. Today, the cellular operators have to continuously increase their foot-print by offering services to areas where there is no coverage. In order to meet the growing demand of new subscribers and the market, the telecom operators are resorting more and more to outsource their network roll out components. The activities like operation and maintenance are now being routinely outsourced by all major telecom operators.
To part finance its working capital and general corpus fund needs, the company is coming out with a maiden IPO of 972000 equity share of Rs. 10 each at a fixed price of Rs. 60 per share to mobilize Rs. 5.83 crore. Issue opens for subscription on 22.06.17 and will close on 28.06.17. Minimum application is to be made for 2000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge platform. Issue is solely lead managed by Hem Securities Ltd and Link Intime India Pvt Ltd is the registrar to the issue. The company has issued initial equity at par and a bonus in the ratio of 249 shares for every 1 share held in January 2017. Post issue its current paid up equity capital of Rs. 2.50 crore will stand enhanced to Rs. 3.47 crore.
On performance front, the company has posted turnover/net profits of Rs. 8.71 cr. / Rs. 0.32 cr. (FY16), Rs. 63.04 cr. / Rs. 2.60 cr. (FY16). For first nine months ended 31.12.16 it has earned net profit of Rs. 2.23 crore on a turnover of Rs. 49.05 crore. If we annualize latest earnings and attribute to fully diluted equity post issue, then asking price is at a P/E of 7 and at a P/BV of 2.91 with RoNW of 43% plus. There are no listed peers to compare with.
On merchant banker’s front, this is the 34th mandate from its stable and last 10 listings has given positive returns on the day of listing.
Conclusion: Investors may consider investment in this reasonably priced issue for medium to long term.
Review By Dilip Davda on Jun 15, 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. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the past, SME IPOs drew the attention of investors across the board. 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 own risk. The above information is based on information available as on date coupled with market perceptions. The 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 news papers.
Email: dilip_davda@rediffmail.com
The initial public offer (IPO) of Accord Synergy Ltd offers an early investment opportunity in Accord Synergy Ltd. A stock market investor can buy Accord Synergy IPO shares by applying in IPO before Accord Synergy Ltd shares get listed at the stock exchanges. An investor could invest in Accord Synergy IPO for short term listing gain or a long term.
Read the Accord Synergy IPO recommendations by the leading analyst and leading stock brokers.
Accord Synergy IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Accord Synergy IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Accord Synergy IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Accord Synergy IPO.
The Accord Synergy IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Accord Synergy IPO allotment status to check.
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