Amrapali Capital and Finance Services Ltd IPO Review (Avoid)

Review By Dilip Davda on Oct 14, 2013

Amrapali Capital and Financial Services Ltd. (ACFSL) is a stock and commodity broking house having membership with BSE and NSE. It is engaged in the business of trading of shares, stocks, forex, arbitrage business including Brokerage business, which comprises of equity brokerage (Cash and Derivatives segment), currency brokerage, distribution of financial products, depository and clearing services. ACFSL commenced its operation way back in the financial year 1995-96 by obtaining Trading Membership of National Stock Exchange as a Stock Broker. Later on, in the financial year 2002-2003 it obtained Trading and Clearing Membership of National Stock Exchange of India Limited (NSE) in derivatives exchange / derivatives segment / clearing corporation /clearing house as trading and clearing member for carrying on the activities of dealing in the same. 

To enhance its margin money with exchanges and generate other corpus fund, the company is offering 2577600 equity share of Rs. 10 each at a fixed price of Rs. 100 per share to mobilize Rs. 25.77 crore. Issue opens for subscription on 15.10.13 and will close on 18.10.13. Minimum application is to be made for 1200 shares and in multiples thereof, thereafter. Issue is lead managed by Corporate Strategic Allianz Ltd and Satelite Corporate Services Pvt. Ltd is the registrar to the issue. Post allotment the shares will be listed on BSE SME. Between October 2006 to June 2008 the company made preferential issue of equity shares in a price range of Rs. 40 to Rs. 300 per share to take its equity to Rs. 7.20 crore with premium reserves rather than profit generations. The equity post issue will stand at Rs. 9.78 crore.

For the last three fiscals it has posted an average EPS of Rs. 0.19 per share. For Q1 of the current fiscal it has earned net profit of Rs. 0.06 crore on the total revenue of Rs. 2.04 crore. If we attribute this earnings on annualized basis on expanded equity then the EPS comes to Rs. 0.02 and thus the asking price is at a P/E of 5000 against its peers trading at a P/E of 51 plus. Lead manager has poor track record for its past mandates.


Conclusion / Investment Strategy

Amrapali Capital SME IPO priced exhorbitantly.

Remark: Just stay away

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Oct 14, 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

Amrapali Capital IPO FAQs

  1. 1. Why Amrapali Capital IPO?

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

  2. 2. How is Amrapali Capital IPO?

    Read the Amrapali Capital IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Amrapali Capital IPO what should investors do?

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

  4. 4. Is Amrapali Capital IPO good?

    Our recommendation for Amrapali Capital IPO is to avoid.

  5. 5. Is Amrapali Capital IPO worth Investing?

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

  6. 6. When will Amrapali Capital IPO allotment status?

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

  7. 7. When will Amrapali Capital IPO list?

    The Amrapali Capital IPO will list on Thursday, October 31, 2013, at BSE SME.








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