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Review By Dilip Davda on January 20, 2016
Blueblood Ventures Ltd. (BVL) that is currently into the business of equity investments and trading is foraying into real estate development that has yet to take off.
To part finance purchase of developed area in the form of FSI, repayment of existing loans and meeting general corpus funds needs, BVL is coming out with an IPO of 1407000 equity share of Rs. 10 each at a fixed price of Rs. 50 per share to mobilize Rs. 7.04 crore. Issue opens for subscription on 21.01.16 and will close on 27.01.16. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is lead managed by Quintessence Enterprises Pvt Ltd and Skyline Financial Services Ltd is the registrar to the issue. Having raised initial equity at par for MoA signing, it issued further equity in the price range of Rs. 300 to Rs. 1000 during 2009 to 2014 and then issued bonus shares in the ratio of 1 for 1 in March 2015 and 2 for 1 in August 2015. Its current equity capital of Rs. 1.59 crore will stand enhanced to Rs. 3 crore post issue.
On performance front, the company has posted total income/net profit of Rs. 0.74 cr. / Rs. 0.05 cr. (FY13), Rs. 1.60 cr. /Rs. 0.04 cr. (FY14), Rs. 3.13 cr. /Rs. 0.09 cr. (FY15) with an average EPS of Rs. 2.59. For first five months ended on 31.08.15 it has earned net profit of Rs. 0.02 cr. on a turnover of Rs. 0.34 crore. If this is annualized and attributed to enhanced equity post IPO, then the asking price is at a P/E of 312 against industry composite of 20 and peers quoting below 5 P/E. Thus issue is exorbitantly priced.
On merchant banker’s front, this is the first mandate from its stable and has no track records.
Conclusion:. Only risk savvy investors with surplus funds may consider long term investment in this expensive IPO.
Review By Dilip Davda on January 20, 2016
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. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. 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 their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About 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.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The initial public offer (IPO) of Blueblood Ventures Ltd offers an early investment opportunity in Blueblood Ventures Ltd. A stock market investor can buy Blueblood Ventures IPO shares by applying in IPO before Blueblood Ventures Ltd shares get listed at the stock exchanges. An investor could invest in Blueblood Ventures IPO for short term listing gain or a long term.
Read the Blueblood Ventures IPO recommendations by the leading analyst and leading stock brokers.
Blueblood Ventures IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Blueblood Ventures IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Blueblood Ventures IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Blueblood Ventures IPO.
The Blueblood Ventures IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Blueblood Ventures IPO allotment status to check.
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