Aryaman Capital Markets Ltd IPO Review (Avoid)

Review By Dilip Davda on Sep 17, 2014

While we have mega SME IPO of Momai Apparels opening for NSE SME Emerge listing on 25.09.14, we also have one more SME IPO for BSE SME Listing. The company is Aryaman Capital Markets (erstwhile known as Aryaman Broking Ltd) which is proposing to mobilize Rs. 4.31 crore by this offer. Details of the same are as under:

Aryaman Capital Markets Ltd (ACML) is a wholly owned subsidiary company of Aryaman Financial Services Limited (“AFSL”). AFSL is a Merchant Banker registered with SEBI since 1994. AFSL is actively involved in the business of Merchant Banking and has completed 2 Main Board IPOs, 11 SME IPOs, 13 Open Offers, 1 Delisting Offer, and many other valuation and corporate advisory activities since the change in management in 2007 - 08. AFSL has been a pioneer in the field of SME IPOs having been the first Merchant Banker to complete an SME IPO and list the same on the SME Platform of BSE. AFSL has received the award for being one of the “Top Performing” Merchant Bankers in the SME Segment from BSE for last two consecutive years.

As a wholly owned subsidiary of AFSL, ACML represents and carries out the various fund based and secondary market activities of the group. It is involved in activities such as Trading and Investments in Quoted and Unquoted Securities, Underwriting Capital Market Issuances, Brokerage income from Equity/Debt Market Placements, and Market Making. In 2012-13, it obtained the registrations required for expanding our business activities as BSE NSE member and market maker.

The company proposes to invest in listed/unlisted securities, repayment of debts and to meet general corpus funds needs; the company is coming floating a maiden IPO of 3590000 equity shares of Rs. 10 each at a fixed price of Rs. 12 per share. IPO opens on 25.09.14 and will close on 01.10.14. Issue is lead managed by BCB Brokerage Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Shares will be listed on BSE SME post allotment. Its present equity of Rs. 8.39 crore rise to Rs. 11.98 crore.

On performance front, for last three fiscal it has posted average EPS of Rs. 0.08. For the fiscal 2013-14 the company reported net profit of Rs. 0.06 crore on a total income of Rs. 2.93 crore. If we attribute these earnings on post issue equity then the asking price is at a P/E of 240 and hence not worth.

On merchant banker’s front, this is the first IPO for SME listing and there is no track record.


Conclusion / Investment Strategy

Avoid this highly priced IPO that has entry as well as trading lot barriers.

(Disclaimer: Author has no plans to invest in this IPO)

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Sep 17, 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

Aryaman Capital IPO FAQs

  1. 1. Why Aryaman Capital IPO?

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

  2. 2. How is Aryaman Capital IPO?

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

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

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

  4. 4. Is Aryaman Capital IPO good?

    Our recommendation for Aryaman Capital IPO is to avoid.

  5. 5. Is Aryaman Capital IPO worth Investing?

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

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

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

  7. 7. When will Aryaman Capital IPO list?

    The Aryaman Capital IPO will list on Monday, October 20, 2014, at BSE SME.








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