Athena Constructions SME IPO Review (Apply at your own risk)

Review By Dilip Davda on Mar 20, 2015

Athena Constructions Ltd (ACL) is an integrated real estate company poised on development residential, commercial, retail and other projects. It undertakes customized infrastructure projects and also in to trading of residential and commercial unit as well as in providing consultancies for real estate projects.

ACL is in the business of erection and construction of houses, buildings, commercial complexes and constructional works of every description on any land owned by the Company or upon any other land or immovable property owned by the landlord as a joint venture as well as co-developers. It is also engaged in purchasing, leasing, acquiring, exchanging or otherwise owning, holding, occupying, constructing, erecting, altering and developing colonies, theatres, bungalows, quarters, offices etc. Currently it has two projects on hand at Rajasthan and Gujarat.

To finance its ongoing projects and for corpus fund it is offering 2500000 equity share of Rs. 10 each at par to mobilize Rs. 2.50 crore. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Issue opens for subscription on 25.03.15 and will close on 30.03.15. Its current equity of Rs. 5 crore includes bonus shares in the ratio of 50 for 1 issued in July 2014. This paid up equity will rise to Rs. 7.50 crore post issue. Issue is lead managed by First Overseas Capital Ltd and Purva Shareregistry (India) Pvt Ltd is the registrar. Post issue, shares will be listed on BSE SME.

As per draft prospectus, for last two fiscals it has clocked in turnover and profits of Rs. 2.07 crore/Rs. 0.32 crore (2013) and Rs. Rs. 2.14 crore/Rs. 0.22 crore (2014) respectively. For six months ended 30.09.14 it has reported turnover and net profit of Rs. 0.40 crore/ Rs. 0.08 crore. If we annualized its current earnings, then this at par issue is being done at a P/E of 47 plus.


Conclusion / Investment Strategy

Despite at par offer, this is a high risk, low return IPO. However, HNI investors with surplus funds may consider it for a long term investment.

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 Mar 20, 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

Athena Constructions IPO FAQs

  1. 1. Why Athena Constructions IPO?

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

  2. 2. How is Athena Constructions IPO?

    Read the Athena Constructions IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Athena Constructions IPO what should investors do?

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

  4. 4. Is Athena Constructions IPO good?

    Sorry, we didn't rate the Athena Constructions IPO.

  5. 5. Is Athena Constructions IPO worth Investing?

    Our lead analyst Mr. Dilip Davda didn't rate the Athena Constructions IPO.

  6. 6. When will Athena Constructions IPO allotment status?

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

  7. 7. When will Athena Constructions IPO list?

    The Athena Constructions IPO will list on Thursday, April 16, 2015, at BSE SME.








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