Encash Entertainment Ltd IPO Review (Avoid)

Review By Dilip Davda on Sep 7, 2014

Encash Entertainment is a division of Encash Group. It is engaged in the business of production of films, corporate films, feature films and planning to enter TV channels with serials. It is also in the business of fashion designing. It outsources the contents and other related services from related agencies based in Kolkata. It has purchased copy rights of “Ichhe”, a Bengali film released in 2011 and has produces and released Bengali film “Shada Kaalo Aabchaa” in 2013.

To part finance acquiring and producing Indian films including regional languages films, brand building and strengthening distribution network, the company is coming out with SME IPO of 1098000 equity share of Rs. 10 each at a fixed price of Rs. 40 per share to mobilize Rs. 4.39 crore. Issue opens for subscription on 09.09.14 and will close on 15.09.14. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Shares will be listed on BSE SME post allotment. CB Management Services Pvt Ltd is the registrar to the issue.

During 2009-2013 the company issued preferential equity (approx. 44000 shares) at a price ranging between Rs. 470 to Rs. 1000 to promoters and also issued bonus in the ratio of 23 for 1 in September 2013. Thereafter it further issued preferential equity (1500000 shares) at a price of Rs. 30 per share that raised the equity to Rs. 2.80 crore. Post IPO equity of company with stand enhanced to Rs. 3.90 crore. 

On performance front, the company has posted an average EPS of Rs. (0.32) for fiscals 2011-12 to 2013-14. For the fiscal 2013-14 it has posted loss of Rs. (0.11) crore on a turnover of Rs. 2.11 crore.

Issue is lead managed by Guiness Corporate Advisor Pvt Ltd. This is 15th SME IPO from this merchant banker who has abnormal performances for past mandates with mismatch on performance of those companies.  

Asking price is exorbitant and is with entry barrier.


Conclusion / Investment Strategy

 Avoid.

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

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Sep 7, 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

Encash Entertainment IPO FAQs

  1. 1. Why Encash Entertainment IPO?

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

  2. 2. How is Encash Entertainment IPO?

    Read the Encash Entertainment IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Encash Entertainment IPO what should investors do?

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

  4. 4. Is Encash Entertainment IPO good?

    Our recommendation for Encash Entertainment IPO is to avoid.

  5. 5. Is Encash Entertainment IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Encash Entertainment IPO.

  6. 6. When will Encash Entertainment IPO allotment status?

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

  7. 7. When will Encash Entertainment IPO list?

    The Encash Entertainment IPO will list on Monday, September 29, 2014, at BSE SME.








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