Alacrity Securities Ltd IPO Review (Avoid)

Review By Dilip Davda on Jul 25, 2013

While general IPO market is witnessing lull season, we have yet another BSE SME IPO entering the primary market on 29.07.13. Details of the same are as under:

ALACRITY SECURITIES LTD. (ASL) is promoted with a vision of providing superior standards infrastructure facilities to small & HNI clients. ASL takes care & meets the specific investments needs & objectives of every client. Its business philosophy is always customer oriented. Currently ASL is the member of National Stock Exchange of India Ltd., Capital Market Segment & Trading Member of Futures & Options Segment.

With a range of services across all verticals in finance, it offers the perfect blend of financial services like Equity Services including Equity Broking & Portfolio Management Services. It is associated with India's Largest Exchange like National Stock Exchange (NSE) & Multi Commodity Exchange (MCX). These Memberships prove its worth in the financial market.

Now the company mulls expansion of its domestic operations and network of branches, brand building and promotional activities linked with enhancement in margin money for its operations and other general corpus funds. To finance this, it is offering 6000000 equity share of Rs. 10 each at a fixed price of Rs. 15 per share to mobilize Rs. 9 crore. Guiness Corporate Advisors Pvt. Ltd. is the lead manager to this IPO and Bigshare Services Pvt. Ltd is the registrar to the issue. Minimum application is to be made for 8000 shares and in multiples thereof, thereafter. Issue opens on 29.07.13 and closes on 01.08.13. Shares will be listed on BSE SME post allotments.

For the last three fiscals it has posted an average EPS of Rs. 0.99 and has a NAV of Rs. 18.50 as on 31.3.13. It has posted total income of Rs. 11.30 crore, Rs. 13.89 crore and Rs. 25.63 crore with a net profit of Rs. 7.40 crore, Rs.0.10 crore and (Rs.0.84 crore) for Fiscal 2011, 2012 and 2013. For 2010-11 it posted bumper profit with other income. The company has issued bonus shares in the ratio of 2 shares for every 1 share held in January 2013 (Rs. 6 crore) followed by preferential allotment at par (Rs. 6 crore) taking total equity to Rs. 15 crore from Rs. 3 crore. It will further rise to Rs. 21 crore post this issue. Considering current status of the securities market, when big ticket broking houses are finding it difficult to maintain income, this small company will have tough time going forward.

As for the lead manager, this is the ninth issue of SME platform in row in last one year with inconsistency in rewards post listings.


Conclusion / Investment Strategy

Remarks: Considering the fate of SME counters in the recent past, risk aver investors can take a chance. Others can just avoid it.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Jul 25, 2013

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

Alacrity Securities IPO FAQs

  1. 1. Why Alacrity Securities IPO?

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

  2. 2. How is Alacrity Securities IPO?

    Read the Alacrity Securities IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Alacrity Securities IPO what should investors do?

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

  4. 4. Is Alacrity Securities IPO good?

    Our recommendation for Alacrity Securities IPO is to avoid.

  5. 5. Is Alacrity Securities IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Alacrity Securities IPO.

  6. 6. When will Alacrity Securities IPO allotment status?

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

  7. 7. When will Alacrity Securities IPO list?

    The Alacrity Securities IPO will list on Wednesday, August 14, 2013, at BSE SME.








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