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CMM Infra NSE SME IPO review (Apply)

Review By Dilip Davda on Sep 27, 2017

CMM Infraprojects Ltd. (CMM) is engaged in the business of construction and development of infrastructure projects in Buildings and Roads on contract basis for the last ten years. Company is an Engineering, Procurement and Construction (EPC) Company with experience in end-to-end design and construction of various projects that includes Housing / Commercial Complex, Hospitals / Healthcare, Corporate / Education / Defense Offices, Irrigation, ST Parks, IT Offices, Sports Complex, Automated and manual Car Parking, Sewerage, Highways / Roads, Bridges and Railways. It has marked its presence over 40% of geographical spread of the country and has undertaken and successfully completed many construction projects in India covering state of Madhya Pradesh, Odisha, Chhattisgarh, Maharashtra, Rajasthan, Bihar, Goa, Haryana and Uttar Pradesh.

To part finance its working capital and general corpus fund needs, CMM is coming out with a maiden IPO of 4545000 equity share of Rs. 10 each with a fixed price of Rs.40 per share to mobilize Rs. 18.18 crore. Issue opens for subscription on 29.09.17 and will close on 04.10.17. Minimum application is to be made for 3000 shares and in multiples, thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is solely lead managed by Systematix Corporate Services Ltd. and Link Intime India Pvt. Ltd. is the registrar to the issue. Issue constitutes 29% of the post issue paid up capital of the company. Having issued initial equity at par, it raised further equity in the price range of Rs. 25 to Rs. 500 from September 2016 to September 2017 and has also issued bonus shares in the ratio of 1 for 1 in December 2010, 3 for 1 in September 2017. Post issue, its current paid up equity capital of Rs. 11.13 crore will stand enhanced to Rs. 15.67 crore. Cost of acquisition of shares by promoters ranges from Rs. 1.25 to Rs. 7.68 per share.

On performance front, CMM has posted turnover/net profits of Rs. 98.23 cr. / Rs. 1.07 cr. (FY14), Rs. 145.28 cr. / Rs. 1.93 cr. (FY15), Rs. 178.77 cr. / Rs. 2.29 cr. (FY16) and Rs. 202.24 cr. / Rs. 6.24 cr. (FY17). Thus is has shown rising trends in top and bottom lines. For last three fiscals, it has posted an average EPS of Rs. 3.78 and average RoNW of 16.60% on an equity base of Rs. 2.78 crore. Issue is priced at a P/BV of 1.61. If we attribute latest earnings on fully diluted equity post issue, then asking price is at a P/E of 10 plus against peers trading around 19 to 26 P/E. Thus issue appears to have been priced reasonably.

On merchant banker’s front, this being first mandates from its stable, it has no track records.

Conclusion: Investment may be considered for medium to long term


Conclusion / Investment Strategy

Investment may be considered for medium to long term

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Sep 27, 2017

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

CMM Infraprojects IPO FAQs

  1. 1. Why CMM Infraprojects IPO?

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

  2. 2. How is CMM Infraprojects IPO?

    Read the CMM Infraprojects IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. CMM Infraprojects IPO what should investors do?

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

  4. 4. Is CMM Infraprojects IPO good?

    Our recommendation for CMM Infraprojects IPO is to subscribe.

  5. 5. Is CMM Infraprojects IPO worth Investing?

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

  6. 6. When will CMM Infraprojects IPO allotment status?

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

  7. 7. When will CMM Infraprojects IPO list?

    The CMM Infraprojects IPO will list on Thursday, October 12, 2017, at NSE SME.