Bansal Roofing Products Ltd IPO Review (Avoid)

Review By Dilip Davda on Jun 19, 2014

Bansal Roofing Products Ltd. (BRPL) is engaged in the manufacturer of roofing sheets and roofing accessories such as Colour Coated Roof Sheets, FRP Roof Sheets, and Polycarbonate Sheets. It also manufactures Eco Ventilators and other miscellaneous Roofing Accessories and provides all roofing solutions to customers, under one roof. 

 

To meet its working capital requirement the company is coming out with an IPO for 680000 equity share of Rs. 10 each at a fixed price of Rs. 30 per share to mobilize Rs. 2.04 crore. Issue opens for subscription and will close on 30.06.14. Minimum application is to be made for 4000 shares and in multiples thereof, thereafter. Equity capital of Rs. 1.52 crore includes bonus in the ratio of 12 for 1 to few promoters. It will rise to Rs. 2.20 crore post this issue. Issue is lead managed by Hem Securities Ltd and Sharex Dynamic (India) Pvt. Ltd is the registrar to the issue. Shares will be listed on BSE SME post allotment. 

 

On performance front BRPL posted turnover of Rs. 0.71 crore with net loss of Rs. ( 0.06) crore for 2011-12 and turnover of Rs. 17.16 crore with a net profit of Rs. 0.64 crore for 2012-13. For nine months ended 31.12.13 it has posted turnover of Rs. 14.12 crore with a net profit of Rs. 0.31 crore. If we translate this earnings on expanded equity then the issue is at a P/E of 18 plus. 

 

On merchant banker’s front, it has poor track record for its past mandates.

 

Issue opens for subscription on 26.06.14 and will close on 30.06.14.


Conclusion / Investment Strategy

Avoid this issue that also has entry barrier.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Jun 19, 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

Bansal Roofing Products IPO FAQs

  1. 1. Why Bansal Roofing Products IPO?

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

  2. 2. How is Bansal Roofing Products IPO?

    Read the Bansal Roofing Products IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Bansal Roofing Products IPO what should investors do?

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

  4. 4. Is Bansal Roofing Products IPO good?

    Our recommendation for Bansal Roofing Products IPO is to avoid.

  5. 5. Is Bansal Roofing Products IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Bansal Roofing Products IPO.

  6. 6. When will Bansal Roofing Products IPO allotment status?

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

  7. 7. When will Bansal Roofing Products IPO list?

    The Bansal Roofing Products IPO will list on Monday, July 14, 2014, at BSE SME.








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