Anubhav Infrastructure Ltd IPO Review (Avoid)

Review By Dilip Davda on Nov 15, 2014

On one hand we are witnessing new milestones for secondary market, but on primary market front, we are still waiting for a main line IPO to hit the market. As usual, SME IPOs keeps coming for tiny floats. We have yet another BSE SME IPO opening shortly. Details of the same are as under:

Anubhav Infrastructure Ltd (AIL) is coming out with an offer for sale and fresh issue of equity to mobilize Rs. 9 crore for BSE SME listing. The company was originally incorporated as “Anubhav Vanijya Private limited” to deal in as wholesaler / trader of consumer goods. Later the company decided to get involved in the business of construction and civil works. With the change in the business activity, the company got itself converted into “Anubhav Infrastructure Limited” on January 11, 2008.  The company is engaged in the trade of marketing and construction /civil work since 2007 recording growth in revenues.

To part finance its brand building and general corpus funds, the company is coming out with the issue of 6000000 equity shares of Rs. 10 each at a fixed price of Rs. 15 per share to mobilize Rs. 9 crore. This entire issue is as an offer for sale by existing investors. Issue opens for subscription on 26.11.14 and will close on 28.11.14. Minimum application is to be made for 8000 shares and in multiples thereof, thereafter. The issue is lead managed by First Overseas Capital Ltd and Maheshwari Datamatics Pvt. Ltd is the registrar to the issue. Post issue shares will be listed on BSE SME. Between 31.3.2006to 31.3.2012 Company issued further capital at a price ranging between Rs. 200 to Rs. 2500 per share and issued bonus shares in the ratio of 10 for 1 to raise its equity at the current level of Rs. 21.41 crore.

On performance front, the company has posted an average EPS of Rs. 0.26 for last three fiscals ended 31.03.14. For the first quarter of the current fiscal it has earned net profit of Rs. 0.12 crore on a turnover of Rs. 25 crore. If we translate these earnings on annualized basis on the fully diluted equity post this issue then the asking price is at a P/E of 68 plus making it a costly bet.

On merchant banker’s front, this is the second mandate. First mandate has given nominal returns on listing.


Conclusion / Investment Strategy

Considering the barriers on minimum investment and low preference by major broking community, retail investors can avoid this issue. However risks aver high net-worth individuals may park their surplus funds in this costly bet at their discretion
 
(Disclaimer: Author has no plans to invest in this IPO)

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Nov 15, 2014

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

Anubhav Infrastructure IPO FAQs

  1. 1. Why Anubhav Infrastructure IPO?

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

  2. 2. How is Anubhav Infrastructure IPO?

    Read the Anubhav Infrastructure IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Anubhav Infrastructure IPO what should investors do?

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

  4. 4. Is Anubhav Infrastructure IPO good?

    Our recommendation for Anubhav Infrastructure IPO is to avoid.

  5. 5. Is Anubhav Infrastructure IPO worth Investing?

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

  6. 6. When will Anubhav Infrastructure IPO allotment status?

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

  7. 7. When will Anubhav Infrastructure IPO list?

    The Anubhav Infrastructure IPO will list on Friday, December 12, 2014, at BSE SME.








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