Bindal Exports BSE SME IPO review (Avoid)

Review By Dilip Davda on Sep 28, 2016

Bindal Exports Ltd (BEL) is involved in supplying fabrics, trading of gray cloth and finished fabrics, job work of fabrics. In fabric job work, the company does value addition by doing embroidery work, tikli work, glitter work etc. Its product portfolio comprises of wide range of fabrics. BEL’s product is used by garment and apparel industry for their manufacturing activities. BEL is also recognized as “One Star export house” by Government of India. It has also received several awards for its valued contribution in the segment.

To part finance its working capital requirements and general corpus fund needs, the company is coming out with a maiden IPO of 1248000 equity share of Rs. 10 at a fixed price of Rs. 16 per share to mobilize Rs. 2.00 crore. Issue opens for subscription on 30.09.16 and will close on06.10.16. Minimum application is to be made for 8000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely managed by Pantomath Capital Advisors Pvt Ltd. Bigshare Services Pvt Ltd is the registrar to the issue. After initial equity issue at par, it issued shares at a price of Rs. 50 during 2008 to 2010 and then a bonus issue in the ratio of 7 for 10 in August 2016. Post issue, its current paid up equity capital of Rs. 3.35 crore will stand enhanced to Rs. 4.60 crore.

On performance front, for last four fiscals, it has posted turnover/net profits of Rs.34.87 cr. / 0.09 cr. (FY13), Rs. 28.64 cr. / Rs. 0.07 cr. (FY14), Rs. 27.93 cr. / Rs. 0.01 cr. (FY15), 24.68 cr. / Rs. 0.06 cr. (FY16). Thus it has inconsistency in top and bottom lines. If we attribute latest earnings on fully diluted equity post IPO then asking price is at a P/E of 123 plus making it a costly bet.

On merchant banker’s front, this is the 29th mandate from its stable and past mandates have shown mixed trends.

Conclusion: Considering high pricing of the issue, Investors may ignore it.

 


Conclusion / Investment Strategy

Considering high pricing of the issue, Investors may ignore it.  

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Sep 28, 2016

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

Bindal Exports IPO FAQs

  1. 1. Why Bindal Exports IPO?

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

  2. 2. How is Bindal Exports IPO?

    Read the Bindal Exports IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Bindal Exports IPO what should investors do?

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

  4. 4. Is Bindal Exports IPO good?

    Our recommendation for Bindal Exports IPO is to avoid.

  5. 5. Is Bindal Exports IPO worth Investing?

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

  6. 6. When will Bindal Exports IPO allotment status?

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

  7. 7. When will Bindal Exports IPO list?

    The Bindal Exports IPO will list on Monday, October 17, 2016, at BSE SME.








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