DRA Consultant BSE SME IPO review (Subscribe)

Review By Dilip Davda on Sep 28, 2016

DRA Consultants Ltd (DCL) is engaged in the business of engineering consultancy in India. It holds expertise in water supply, waste water treatment and water monitoring and providing technical, commercial, legal and financial advisory services across sectors including setting up sustainable water and waste water tariff and bylaws for Urban Local Bodies/Boards. It also has experience in project management. DCL is a technical service provider in India for conducting Municipal, Industrial, Building water audits. DCL’s signature project is the 24x7 water supply scheme undertaken by Nagpur Municipal Corporation under JNNURM.

To part finance working capital requirements and general corpus fund needs, the company is coming out with a maiden IPO of 2960000 equity share of Rs. 10 each at par to mobilize Rs. 2.96 crore. Issue opens for subscription on 30.09.16 and will close on04.10.16. Minimum application is to be made for 10000 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. Bigshare Services Pvt Ltd is the registrar to the issue. After initial equity capital issue at par it has issued bonus shares in the ratio of 800 for every 1 share held. Post issue its current paid up equity capital of RS. 8.01 crore will stand enhanced to Rs. 10.97 crore.

On performance front, for last four fiscals, it has posted total income/net profit of Rs. 12.12 cr./ Rs. 1.71 cr. (FY13), Rs. 9.95 cr. / Rs. 1.35 cr. (FY14), Rs. 10.02 cr. / Rs. 1.22 cr. (FY15) and Rs. 16.51 cr. / Rs. 2.10 cr. (FY16). Its top and bottom line has shown inconsistency. If we attribute latest earnings on fully diluted equity post IPO then asking price is at a P/E of 5 plus and at a below 1 P/BV. Thus this issue can be considered as a safe bet. As per prospectus, it has no listed peer to compare with.

On merchant banker’s front, this is the 28th mandate from its stable and past mandates have shown mixed trends.

Conclusion: Investors may consider investment for short to long term in this at par IPO.


Conclusion / Investment Strategy

Investors may consider investment for short to long term in this at par IPO.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Sep 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

DRA Consultants IPO FAQs

  1. 1. Why DRA Consultants IPO?

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

  2. 2. How is DRA Consultants IPO?

    Read the DRA Consultants IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. DRA Consultants IPO what should investors do?

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

  4. 4. Is DRA Consultants IPO good?

    Our recommendation for DRA Consultants IPO is to subscribe.

  5. 5. Is DRA Consultants IPO worth Investing?

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

  6. 6. When will DRA Consultants IPO allotment status?

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

  7. 7. When will DRA Consultants IPO list?

    The DRA Consultants IPO will list on Thursday, October 13, 2016, at BSE SME.

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