Amrapali Fincap Risky bet, no harm giving it a miss (May apply)

Review By Dilip Davda on Jul 17, 2015

AFL is mainly engaged into the business of providing loan and advances. Majority of its loan and advances are provided to parties which are related to the promoter or associate concern of promoters. It also provides unsecured Short term loans to select customers and conduct credit checks for these loans as they are unsecured. The aggregate value of the short term loans and advances of the Company stood at Rs. 118.62 crore and Rs. 114.22 crore as on march 31, 2014 and January 31, 2015 respectively. It is also in the business of commodity and shares. Its majority of turnover is from trading in shares.

To part finance purchase and setting up of office in Ahmedabad, investment in NBFCs, and meet other corpus funds needs, the company is coming out with an IPO of 3540000 equity share of Rs.10 each at a fixed price of Rs. 120 per share to mobilize Rs. 42.48 crore. Minimum application is to be made for 1200 shares and in multiples thereon, thereafter. Issue opens for subscription on 20.07.15 and will close on 22.07.15. Post issue it’s paid up equity capital with stand enhanced to Rs. 13.44 crore from Rs. 9.90 crore. Except for incorporation token equity issue at par, it has issued shares at a price of Rs. 100 per share to promoter groups. Issue is sole managed by Corporate Strategic Allianz Ltd and Satellite Corporate Services Pvt Ltd is the registrar to the issue. Post allotment shares will be listed on BSE SME.

On performance front, the company has posted an average EPS of Rs. 0.12 for last three fiscals from 2012-2014. For 10 months ended 31.01.15, it has posted net profit of Rs. 1.52 crore on a total income of Rs. 5.15 crore. For earlier years, its top and bottom lines have shown erratic pattern with declining trends. If we annualize the current earnings and attribute it to enhanced equity post IPO then asking price is at a P/E of 88 plus and thus is priced very aggressively.

This is the fourth IPO from the lead manager and past mandates from their stable has mixr track record of rewards post listings.


Conclusion / Investment Strategy

Amrapali Fincap Risky bet, no harm giving it a miss

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 prior to making any actual investment decisions, based on information published here. As SME issues have entry barriers and low preference from broking community, any reader taking decisions based on any information published here does so entirely at own risk. Author has no plans to invest in this offer.

Review By Dilip Davda on Jul 17, 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

Amrapali Fincap IPO FAQs

  1. 1. Why Amrapali Fincap IPO?

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

  2. 2. How is Amrapali Fincap IPO?

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

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

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

  4. 4. Is Amrapali Fincap IPO good?

    Our recommendation for Amrapali Fincap IPO is to subscribe for long term.

  5. 5. Is Amrapali Fincap IPO worth Investing?

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

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

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

  7. 7. When will Amrapali Fincap IPO list?

    The Amrapali Fincap IPO will list on Wednesday, August 5, 2015, at BSE SME.








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