CHD Chemicals BSE SEM IPO Review (Subscribe)

Review By Dilip Davda on Mar 17, 2016

CHD Chemicals Ltd (CHD) is engaged in the business of trading and distribution of high quality chemicals and dyes for textiles industry, leather, and paper industries. It also deals in Construction Chemicals. CHD is a chemicals and dyes trading and distribution company with a diverse product portfolio.

To part finance its working capital needs and general corpus funding, the company is coming out with a maiden IPO of 1800000 equity shares of Rs. 10 each at a fixed price of Rs. 11 per share to mobilize Rs. 1.98 crore. Issue opens for subscription on 21.03.16 and will close on 23.03.16. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. First Overseas Capital Ltd is the sole lead manager and Cameo Corporate Services Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE SME. Its current paid up equity capital of Rs. 3.41 crore will stand enhanced to Rs. 5.21 crore post IPO. In February 2015 it issued around 9 lakh shares at a price of Rs. 11 per share and all previous issues were at par value.

On performance front, the company has posted net profit of Rs. 0.09 cr. on a turnover of Rs. 14.39 cr. (FY 14) and net profit of Rs. 0.21 cr. on a turnover of Rs. 44.48 cr. (FY 15). For first six months of the current fiscal it has reported net profit of Rs. 0.15 cr. on a turnover of Rs. 18.72 cr. If we annualize this and attribute on fully diluted equity of Rs. 5.21 crore post issue then asking price is at a P/E of around 19. As per IPO documents, company has no listed peer to compare with.

On merchant banker’s front, this is 12th mandate from its stable and it has poor track records for past mandates.


Conclusion / Investment Strategy

Risk savvy investors with surplus funds may consider investment for long term plan. 

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Mar 17, 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

CHD Chemicals IPO FAQs

  1. 1. Why CHD Chemicals IPO?

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

  2. 2. How is CHD Chemicals IPO?

    Read the CHD Chemicals IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. CHD Chemicals IPO what should investors do?

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

  4. 4. Is CHD Chemicals IPO good?

    Our recommendation for CHD Chemicals IPO is to subscribe.

  5. 5. Is CHD Chemicals IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the CHD Chemicals IPO.

  6. 6. When will CHD Chemicals IPO allotment status?

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

  7. 7. When will CHD Chemicals IPO list?

    The CHD Chemicals IPO will list on Friday, April 1, 2016, at BSE SME.








Search Chittorgarh.com:

Download Our Mobile App

Android App iOS App