Bronze infra-tech Ltd IPO Review (Avoid)

Review By Dilip Davda on Oct 18, 2012

While we have seen postponement of main line IPO of RINL which was to open this week on 15.10.12 mere on difference of views on pricing of the same between Lead Managers and DoD, we are having another BSE SME platform IPO from Bronze Infra. Details of the same are as under:

Bronze Infra-Tech Ltd. (BITL) is in infrastructure development related business. It has innovative infrastructure financing activities from customized solutions to marketing programmes. BITL is also in software and hardware trading. Now to meet capital expenditure to the tune of Rs. 8.56 crore, it is offering 5704000 equity share of Rs. 10 each at a price of Rs. 15 per share. The issue opens on 19.10.12 and will close on 23.10.2012. Minimum application is to be made for 8000 shares and in multiples thereof. Inventure Merchant Bankers Services Pvt. Ltd is the sole manager to this issue and CB Management Services Pvt. Ltd. is the registrar to the issue. Post this issue company's equity base will rise from Rs. 11.49 crore to Rs. 17.20 crore. Shares will be listed on BSE SME platform post allotment.


Conclusion / Investment Strategy

Company's performance has seen inconsistency with see-saw movement in top line year over year and so is the case with bottom line. It made preferential issue of 5000000 shares at Rs. 15 per share in July 2012 and now coming out with this issue. Considering last three year's average EPS of Rs. 0.94 and a book value of Rs. 15 due to preferential issue in July 2012 and before that at hefty premium just to jack up the NAV.  EPS gets more diluted on expanded equity making this offer a costly bet. Except Max Alert, no other issue on BSE SME platform has rewarded investors so far. GIVE IT A MISS.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Oct 18, 2012

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

Bronze Infra Tech IPO FAQs

  1. 1. Why Bronze Infra Tech IPO?

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

  2. 2. How is Bronze Infra Tech IPO?

    Read the Bronze Infra Tech IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Bronze Infra Tech IPO what should investors do?

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

  4. 4. Is Bronze Infra Tech IPO good?

    Our recommendation for Bronze Infra Tech IPO is to avoid.

  5. 5. Is Bronze Infra Tech IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Bronze Infra Tech IPO.

  6. 6. When will Bronze Infra Tech IPO allotment status?

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

  7. 7. When will Bronze Infra Tech IPO list?

    The Bronze Infra Tech IPO will list on Wednesday, November 7, 2012, at BSE SME.








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