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Accord Synergy NSE SME IPO review (Apply)

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.


Conclusion / Investment Strategy

Investors may consider investment in this reasonably priced issue for medium to long term.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Jun 15, 2017

Review Author

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

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

Accord Synergy IPO FAQs

  1. 1. Why Accord Synergy IPO?

    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.

  2. 2. How is Accord Synergy IPO?

    Read the Accord Synergy IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Accord Synergy IPO what should investors do?

    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.

  4. 4. Is Accord Synergy IPO good?

    Our recommendation for Accord Synergy IPO is to subscribe.

  5. 5. Is Accord Synergy IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Accord Synergy IPO.

  6. 6. When will Accord Synergy IPO allotment status?

    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.

  7. 7. When will Accord Synergy IPO list?

    The Accord Synergy IPO will list on Thursday, July 6, 2017, at NSE SME.

4 Comments

4. RAKA GANGAPUR  Jun 17, 2017 22:35
Dear sir, Please check it And Confirm
Betulla Asdulla Khan the promoter of the company has been involved in false trading/Circulate Trading in Alka securities LTD in 2009,For that they have also got SEBI warning.

here is the link
http://www.watchoutinvestors.com/press_release/sebi/2009228_brk3101.pdf
205. Betullakhan Asdullakhan Pathan ABKPB6908R
68 . SEHRUNNISA ABDUL Q KHAN AHBPK6146P
88 . ABDUL QUDDUS KHAN AFJPK2769J

Moreever company''''s promoter has got share at At Par 10 rs and in Jan 2017 the bonus issue of 249 share on every One share held So by this way One Share has become 250 share now, The costing Per Share is only 4 Paise for the Promoter now and They have brought the IPO price @ 60 Rs,
3. RAKA GANGAPUR  Jun 17, 2017 22:34
Dear Sir, Please confirm it
Betulla Asdulla Khan the promoter of the company has been involved in false trading/Circulate Trading in Alka securities LTD in 2009,For that they have also got SEBI warning.

here is the link
http://www.watchoutinvestors.com/press_release/sebi/2009228_brk3101.pdf
205. Betullakhan Asdullakhan Pathan ABKPB6908R
68 . SEHRUNNISA ABDUL Q KHAN AHBPK6146P
88 . ABDUL QUDDUS KHAN AFJPK2769J

Moreever company''''''''s promoter has got share at At Par 10 rs and in Jan 2017 the bonus issue of 249 share on every One share held So by this way One Share has become 250 share now, The costing Per Share is only 4 Paise for the Promoter now and They have brought the IPO price @ 60 Rs,
2. RAKA GANGAPUR  Jun 17, 2017 22:32
Betulla Asdulla Khan the promoter of the company has been involved in false trading/Circulate Trading in Alka securities LTD in 2009,For that they have also got SEBI warning.

here is the link
http://www.watchoutinvestors.com/press_release/sebi/2009228_brk3101.pdf
205. Betullakhan Asdullakhan Pathan ABKPB6908R
68 . SEHRUNNISA ABDUL Q KHAN AHBPK6146P
88 . ABDUL QUDDUS KHAN AFJPK2769J

Moreever company''''s promoter has got share at At Par 10 rs and in Jan 2017 the bonus issue of 249 share on every One share held So by this way One Share has become 250 share now, The costing Per Share is only 4 Paise for the Promoter now and They have brought the IPO price @ 60 Rs,
1. Bhavdip Sanghavi  Jun 16, 2017 04:40
with all due respect sir , you said "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 " is not true . 2.23 crore net profit and 49.05 crore revenue is not for 9 months , its for year ended 2016 ( Jan 2016 to Dec 2016 ) According to prospectus . That means Annualised PE is 9.33 ( For the calendar year 2017 ) . FY16 Net profit is 2.60 crore and Calendar year 2016 annual profit is 2.23 which means company didn''t grow , infect net profit decreased . Thanks for wonderful analysis and if you want to correct it please . Cheers .