AGI Infra SME IPO Review (Apply at your own risk)

Review By Dilip Davda on Mar 4, 2015

AGI Infra Ltd (AIL)  is a flagship company of the AGI Group which is a reputed Punjab based group having its presence in the construction industry for more than 14 years. The AGI Group has delivered a number of high-rise buildings in Punjab which includes Residential flats, Hotels, Educational blocks and Auditorium for Universities, Hospitals, Hostels for Medical colleges, Commercial Complex, Police Stations, Schools, Shopping Malls, Auto showroom etc.

AIL is an integrated construction and real estate development company, primarily focusing on construction and development of commercial / residential projects, in and around Punjab. The company has successfully completed a Group Housing Project - “G. I. Apartments” comprising of 78 flats at the Phagwara District, Kapurthala in 2009. In 2011, it launched flagship Group Housing Project – “Jalandhar Heights”. As part of Jalandhar Heights Extn. Project, the company has, as of September 30, 2014, constructed about 6 lacs sq. ft. of Saleable Area, out of which about 3.40 lacs Sq. Ft. saleable area has been delivered, and have further begun construction work for 4.19 lac sq. ft. which it proposes to deliver within the next few quarters. Further, AIL proposes to develop an additional 9.72 lac sq. ft. as part of this project once it completes the above.
 
To part finance its Jalanahar Heights project and raise long term working capital and corpus fund, the company is offering 2776000 equity share of Rs. 10 each at a fixed price of Rs. 54 per share to mobilize Rs. 14.99 crore. The issue opens for subscription on 10.03.15 and will close on 13.03.15. Minimum application is to be made for 2000 shares and in multiples thereon, thereafter. Issue is solely lead managed by Aryaman Financial Services Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Post allotments, shares will be listed on BSE SME platform.

The company splitted its face value to Rs. 10 from Rs. 100 in September 2014. Before this it issued preferential equity to promoters at a price of Rs. 500 in June 2007 and then issued bonus in the ratio of 6 for 1 in April 2011. It again issued preferential equity at a price of Rs. 200 in March 2012 and then again issued bonus shares in the ratio of 2 for 5 in September 2014 to reach its current equity of Rs. 7.44 crore that will rise to Rs. 10.22 crore post this issue.

The company has posted an average EPS of Rs. 2.77 for last three fiscals. For the first half of current fiscal ended on 30.09.14, it has earned net profit of Rs 1.61 crore on a turnover of Rs. 24.27 crore. Based on this if we annualized the earnings, then the asking price is at a P/E of 17 plus on fully expanded equity post this issue.

Merchant banker has poor track record so far.


Conclusion / Investment Strategy

This SME offer is with entry barriers and the low preference for SME IPOs by the broking community at large. However, investors with surplus funds may invest at their own discretion for long term, bearing in mind that stock market investments are linked to market risks. The author has no plans to invest in this IPO.

Review By Dilip Davda on Mar 4, 2015

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

AGI Infra IPO FAQs

  1. 1. Why AGI Infra IPO?

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

  2. 2. How is AGI Infra IPO?

    Read the AGI Infra IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. AGI Infra IPO what should investors do?

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

  4. 4. Is AGI Infra IPO good?

    Sorry, we didn't rate the AGI Infra IPO.

  5. 5. Is AGI Infra IPO worth Investing?

    Our lead analyst Mr. Dilip Davda didn't rate the AGI Infra IPO.

  6. 6. When will AGI Infra IPO allotment status?

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

  7. 7. When will AGI Infra IPO list?

    The AGI Infra IPO will list on Friday, March 27, 2015, at BSE SME.








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