Advance Syntex BSE SME IPO Review (Subscribe)

Review By Dilip Davda on Jun 28, 2016

Advance Syntex Ltd (ASL) is mainly engaged in manufacturing of Metalized Films (MF), Lacquered (Coated) Metalized Polyester Films (LMPF), glitter powder (Zari Powder) and Metallic Yarn (Polyester Badla). Glitter Powder and Metallic Yarn are manufactured through Job Work of LMPF produced by it. The company also produces modified resins, which is used as raw material in manufacturing of LMPF. Further, ASL is also engaged in the sale of polyester films (also known as BOPET films) and Biaxially Oriented Polypropylene Films (also known as BOPP films) after carrying of slitting operations on them.

Additionally, ASL also provides services of coating of Metalized Films on job work basis. The products are used in textiles, flexible packaging, lamination, printing, decorations, advertising, paints, inks, craft glue, glass bangles, synthetic leather, floor tiles, walls, cosmetics (such as nail polish, eye-liner, hair gel, lipstick etc.) and various other products. It’s entire products are sold under the brand name of “MIDAS”, which is registered under the Trademarks Act, 1999.

To part finance its working capital needs, the company is coming out with a maiden IPO of 2100000 equity share of Rs. 10 each at a fixed price of Rs. 12 per share to mobilize Rs. 2.52 crore. Issue opens for subscription on 30.06.16 and will close on 04.07.16. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Entire equity of the company is issued at par so far and also a bonus issue in the ratio of 1 for 2 in October 2015. Its current paid up equity capital of Rs. 5.81 crore will stand enhanced to Rs. 7.91 crore post issue. Issue is solely managed by Hem Securities Ltd and Sharex Dynamic (India) Pvt Ltd is the registrar to the issue.

On performance front, for last three fiscals, the company has posted turnover and net profit of Rs. 29.77 cr./  Rs. 0.84 cr. (FY13), Rs. 36.22 cr. /  Rs. 0.83 cr. (FY14) and Rs. 47.54 cr. / Rs. 0.61 cr. (FY15). For the first nine months ended 31.12.15 it has posted net profit of Rs. 0.92 crore on a turnover of Rs. 34.22 crore. If we annualize these earnings and attribute it to expanded equity post IPO then asking price is at a P/E of 7 plus. However, its first nine months performance is shown highest profit which is raising eyebrows. 

On merchant banker’s front, this is 20th mandate from its stable and earlier mandates have shown average returns post listing.

Conclusion: IPO is priced justifiably; investors with surplus cash may consider long term investment.


Conclusion / Investment Strategy

IPO is priced justifiably; investors with surplus cash may consider long term investment.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Jun 28, 2016

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

Advance Syntex IPO FAQs

  1. 1. Why Advance Syntex IPO?

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

  2. 2. How is Advance Syntex IPO?

    Read the Advance Syntex IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Advance Syntex IPO what should investors do?

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

  4. 4. Is Advance Syntex IPO good?

    Our recommendation for Advance Syntex IPO is to subscribe.

  5. 5. Is Advance Syntex IPO worth Investing?

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

  6. 6. When will Advance Syntex IPO allotment status?

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

  7. 7. When will Advance Syntex IPO list?

    The Advance Syntex IPO will list on Tuesday, July 12, 2016, at BSE SME.








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