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Dhabriya Polywood Limited IPO Review (Apply)

Review By Dilip Davda on Sep 27, 2014

Dhabriya Polywood Ltd (DPL) (formerly known as Dhabriya Agglomerates Ltd) is mainly into the business of manufacturing and selling of PVC profiles and fabrication of uPVC Doors and Windows, Partitions, False Ceiling, Paneling, Fencing, Prefabricated Structures, Prefabricated Walls &Buildings and allied products. It undertakes supply and installation of products at client site and also provide after sale services. DPL’s products are sold under the brand “polywood” and are wood substitute.

To part finance its expansion plans, setting up of polywood application centre and needs of corporate funds, the company is coming out with an IPO of 2200000 equity share of Rs. 10 each at a fixed price of Rs. 15 per share to mobilize Rs. 3.30 crore. Issue opens for subscription on 29.09.14 and will close on 07.10.14. Minimum application is to be made for 8000 shares and in multiples thereon, thereafter. Issue is lead managed by Hem Securities Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Post issue, shares will be listed on BSE SME. The company issues bonus in the ratio of 1 for 1 in August 2014 that took the paid up equity from Rs. 3.00 crore to Rs. 6.00 crore. It will further enhance to Rs. 8.20 crore post IPO.

On performance front on consolidated basis for last two fiscals, the company has earned net profit of Rs. 1.95 crore (2012-13) and Rs. 2.85 crore (2013-14) on the turnover of Rs. 62.14 crore and Rs. 67.76 crore respectively. If we attribute latest earnings on fully diluted equity post IPO then the asking price is at a P/E of 4+. This shows IPO is priced reasonably.

On merchant banker’s front, this is 10th mandate and past mandates have mixed trends.


Conclusion / Investment Strategy

Risk aver investors having surplus funds can invest for long term bearing in mind the entry barriers on application and trading post listing.

(Disclaimer: Author has no plans to invest in this IPO)

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Sep 27, 2014

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

Dhabriya Polywood IPO FAQs

  1. 1. Why Dhabriya Polywood IPO?

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

  2. 2. How is Dhabriya Polywood IPO?

    Read the Dhabriya Polywood IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Dhabriya Polywood IPO what should investors do?

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

  4. 4. Is Dhabriya Polywood IPO good?

    Our recommendation for Dhabriya Polywood IPO is to subscribe.

  5. 5. Is Dhabriya Polywood IPO worth Investing?

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

  6. 6. When will Dhabriya Polywood IPO allotment status?

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

  7. 7. When will Dhabriya Polywood IPO list?

    The Dhabriya Polywood IPO will list on Friday, October 17, 2014, at BSE SME.