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Airan NSE SME IPO review (May apply)

Review By Dilip Davda on Mar 9, 2017

Airan Ltd was primarily engaged in the activities of computer coaching. Currently the company is in Information Technology (IT) and Information Technology (IT) enabled services including Banking transaction processing services and Document management services for telecommunication companies, internet services provider, payment banks etc.

To part finance its working capital, capital expenditure and general corpus fund needs, the company is coming out with a maiden IPO of 3300000 equity share of Rs. 10 each at a fixed price of Rs. 45 per share to mobilize Rs. 14.85 crore. Issue opens for subscription on 14.03.17 and will close on 16.03.17. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge platform. Issue is solely lead managed by Swastika Investmart Ltd and Karvy Computershare Pvt Ltd is the registrar to the issue.

From 1995 (MoA) to 2006 it issued all equity at par. Thereafter, it issued further equity at a price ranging from Rs. 130 to Rs. 150 from 2006 to 2011. It has also issued bonus shares in the ratio of 9 for 1 in March 2011 and in the ratio of 1 for 1 in January 2017. Its current paid up equity capital of Rs. 9.20 crore will stand enhanced to Rs. 12.50 crore post issue.

On performance front, the company has posted revenue/net profits of Rs. 11.74 cr. / Rs. 0.81 cr. (FY13) , Rs. 14.57 cr. / Rs. 0.86 cr. (FY14), Rs. 19.58 cr. / Rs. 0.81 cr. (FY15) and Rs. 26.88 cr. / Rs. 1.45 cr. (FY16). For the seven months ended on 31.10.16 of current fiscal it has reported net profit of Rs. 1.29 crore on a total revenue of Rs.17.41 crore. If we annualize these earnings and attribute to fully diluted post issue equity of Rs. 12.50 then asking price is at a P/E of around 25 plus making it a pricy offer. Its peers are trading around same or little lower P/Es.

On merchant banker’s front, this is the 2nd mandate from its stable and the last issue gave some returns on the listing day.

Conclusion: Only risk savvy cash surplus investors may consider investment for long term.


Conclusion / Investment Strategy

Only risk savvy cash surplus investors may consider investment for long term.

Review By Dilip Davda on Mar 9, 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

Airan IPO FAQs

  1. 1. Why Airan IPO?

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

  2. 2. How is Airan IPO?

    Read the Airan IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Airan IPO what should investors do?

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

  4. 4. Is Airan IPO good?

    Our recommendation for Airan IPO is to subscribe for long term.

  5. 5. Is Airan IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Airan IPO.

  6. 6. When will Airan IPO allotment status?

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

  7. 7. When will Airan IPO list?

    The Airan IPO will list on Friday, March 24, 2017, at NSE SME.