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Commercial Syn Bags BSE SME IPO review (Apply)

Review By Dilip Davda on Jun 28, 2016

Commercial Syn Bags Ltd (CSBL) is engaged in the manufacturing and supply of HDPE (High Density Polyethylene), PP (Polypropylene) woven sacks, FIBC (Flexible Intermediate Bulk Containers), fabrics and tarpaulins for domestic as well as export markets. Its products are sold under the brand names of “Comsyn” and “Tiger”. It has four manufacturing units and all are located at Pithampur, Dhar, Madhya Pradesh. 

To part finance its working capital requirements as well as repayment/pre-payment of debt, the company is coming out with a maiden IPO of 3192000 equity share of Rs. 10 each at a fixed price of Rs. 24 to mobilize Rs. 7.66 crore. Issue opens for subscription on 30.06.16 and will close on 05.07.16. Minimum application is to be made for 6000 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 and Bigshare Services Pvt Ltd is the registrar to the issue.  Having issued equity shares at par during 1984 to 2003, it raised further equity at a price of Rs. 15 to Rs. 100 during 2004 to March 2015. It has also issued bonus shares in the ratio of 155 for 100 (In December 1994 ) and 3 for 1 (in March 2016).  Its current paid up equity capital of Rs. 8.63 crore will stand enhanced to Rs. 11.82 crore post issue.

On performance front, for last three fiscals, the company has posted turnover and net profits of Rs. 68.15 cr. / Rs.2.17 cr. (FY13), Rs. 96.12 cr./ Rs. 3.94 cr. (FY14) and Rs. 112.65 cr./ Rs. 5.28 cr. (FY15). For nine months ended 31.12.15 it has earned net profit of Rs. 4.25 crore on a turnover of Rs.86.90 crore. If we annualize these earnings and attribute it on fully diluted equity post IPO then asking price is at a P/E of 5. Thus issue is priced very reasonably.

On merchant banker’s front, this is 21st IPO from its stable and earlier mandates have shown mixed trends.

Conclusion: Justifiably priced IPO is worth considering by investors with surplus cash for long term investment.


Conclusion / Investment Strategy

Justifiably priced IPO is worth considering by investors with surplus cash for long term investment.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Jun 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

Commercial Syn Bags IPO FAQs

  1. 1. Why Commercial Syn Bags IPO?

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

  2. 2. How is Commercial Syn Bags IPO?

    Read the Commercial Syn Bags IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Commercial Syn Bags IPO what should investors do?

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

  4. 4. Is Commercial Syn Bags IPO good?

    Our recommendation for Commercial Syn Bags IPO is to subscribe.

  5. 5. Is Commercial Syn Bags IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Commercial Syn Bags IPO.

  6. 6. When will Commercial Syn Bags IPO allotment status?

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

  7. 7. When will Commercial Syn Bags IPO list?

    The Commercial Syn Bags IPO will list on Thursday, July 14, 2016, at BSE SME.