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ADCC Infocad Limited IPO Review (Apply)

Review By Dilip Davda on Sep 27, 2014

ADCC Infocad (ADCC) is a Meghe Group, ISO 9001:2008 certified and CRISIL rated company. Meghe Group is engaged in the fields of Basic and Professional Education, Banking, Infrastructure, Information Technology, Textile, Power, Media & Entertainment and is head quartered in Nagpur, State of Maharashtra, India. ADCC to cater to the GIS industry and has emerged as global Premier Software Solution provider through its Alliance with World Leaders like Autodesk Inc. USA world‘s one of the biggest Design Content Company, Mathworks (Matlab), Dassault (Catia), Adobe, Digital Globe India & Africa (High Resolution Satellite Imageries), Integraph (Erdas Imaging & LPS Software and extensions) Siemens, Sanako (Language Lab), National Instruments (Experiential Engineering Laboratories), ESRI (GIS mapping Solution, Software , Services).

ADCC Infocad is a specialist in GIS & Engineering services solutions Company servicing clients across a range of corporate and government segments helping improve their engineering efficiency, support global footprint and improve competitiveness. Leveraging technology, domain knowledge & our robust work planning methodology to ensure an effective delivery model for all our services projects, we have emerged as a Partner-of-choice for leading Indian companies and Government. It has main base at Nagpur and branch offices across India at Mumbai, Pune, Hyderabad, Ahmedabad, Lucknow, Company has marked its global market presence through its overseas subsidiary offices in Africa- Nairobi (Kenya), the Company boasts the state-of-art infrastructure at Nagpur with ultra modern IT Systems for Data Security and Integrity.

To part finance its plans for purchasing new technical equipments, branding and international marketing expenses along with general corpus fund, the company is coming out with an IPO of 2400000 equity share of Rs. 10 each at a fixed price of Rs. 40 per share to mobilize Rs. 9.60 crore. Issue opens for subscription on 30.09.14 and will close on 08.10.14. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Issue is lead managed by Hem Securities Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Post issue, shares will be listed on BSE SME. Its existing equity of Rs. 6.66 crore will rise to Rs. 9.06 crore post IPO.

On consolidated basis the company posted turnover of Rs. 57.81 crore and Rs. 79.85 crore for fiscal 2012-13 and 2013-14 with a net profit of Rs. 5.16 crore and Rs. 6.55 crore respectively. Its current equity capital of Rs. 6.66 crore includes two bonus issues made in November 2002 (1 for 2) and February 2014 (1 for 1). If we attribute current earnings on expanded equity then the asking price is at a P/E of 5.5 and at a P/BV of 1.3 which appears to be reasonable.

On merchant banker’s front, this is 11th mandate and past mandates have mixed trends.


Conclusion / Investment Strategy

Risk aver investors can park funds for long term keeping in mind the trading lot barriers on application and trading post listing.

(Disclaimer: Author has no plans to invest in this IPO)

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Sep 27, 2014

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

ADCC Infocad IPO FAQs

  1. 1. Why ADCC Infocad IPO?

    The initial public offer (IPO) of ADCC Infocad Limited offers an early investment opportunity in ADCC Infocad Limited. A stock market investor can buy ADCC Infocad IPO shares by applying in IPO before ADCC Infocad Limited shares get listed at the stock exchanges. An investor could invest in ADCC Infocad IPO for short term listing gain or a long term.

  2. 2. How is ADCC Infocad IPO?

    Read the ADCC Infocad IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. ADCC Infocad IPO what should investors do?

    ADCC Infocad IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the ADCC Infocad IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.

  4. 4. Is ADCC Infocad IPO good?

    Our recommendation for ADCC Infocad IPO is to subscribe.

  5. 5. Is ADCC Infocad IPO worth Investing?

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

  6. 6. When will ADCC Infocad IPO allotment status?

    The ADCC Infocad IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit ADCC Infocad IPO allotment status to check.

  7. 7. When will ADCC Infocad IPO list?

    The ADCC Infocad IPO will list on Wednesday, October 22, 2014, at BSE SME.