Chittorgarh.com Logo
Loading...

Filtra Consultants & Engineers BSE SME IPO Review (May apply)

Review By Dilip Davda on Mar 18, 2015

Filtra Consultants and Engineers Ltd is entering in the capital markets (through BSE SME) with an initial public offering, IPO of 741,000 Equity Shares of Rs 10/- each aggregating Rs. 3.11 Crore. The price for the issue has been fixed at Rs 42 per share.

Filtra Consultants and Engineers Ltd (FCEL) is engaged in water treatment segment and provides strategic and technical support to OEMs for water treatment plants, RO plants and user of this plants. It also exports its products and does consultancy. FCEL also acts as authorized distributors of manufacturers of components used in water treatment industry. The company is set to introduce new initiatives like Automatic water dispensers, Instruments with Data logging and SMS features, LED underwater lights etc.

The issue opens on Mar 24, 2015 and closes for subscription on Mar 30, 2015. The equity shares of the issue are proposed to be listed on the SME Platform of BSE.

Filtra Consultants and Engineers Ltd (FCEL) is engaged in water treatment segment and provides strategic and technical support to OEMs for water treatment plants, RO plants and user of this plants. It also exports its products and does consultancy. FCEL also acts as authorized distributors of manufacturers of components used in water treatment industry. The company is set to introduce new initiatives like Automatic water dispensers, Instruments with Data logging and SMS features, LED underwater lights etc.

To meet the funding requirements of marketing activity like E-Commerce platform and Digital market through Kiosks and other corpus funds, the company is coming out with a maiden IPO of 741000 equity share of Rs. 10 each at a fixed price of Rs. 42 per share to mobilize Rs. 3.11 crore. Issue opens for subscription on 24.03.15 and will close on 30.03.15. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Post issue shares will be listed on BSE SME. It issued bonus shares in the ratio of 3 shares for every 1 share held in August 2014. Its existing equity of Rs. 2 crore will rise to Rs. 2.74 crore after the issue. Issue is managed by Pantomath Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue.

On performance front, the company has posted net profit of Rs. 1.18 crore on a turnover of Rs. 24.56 crore for the fiscal 2013-14. For six months ended 30.09.14 it has earned net profit of Rs. 0.53 crore on a turnover of Rs. 12.13 crore. Based on this if we annualized its earnings, then EPS stands at Rs. 3.87 on fully diluted equity post IPO. Thus its asking price is at a P/E of 11. 

On merchant banker’s front, this is the seventh IPO. It has average records for past mandates. It is the only merchant banker that had done SME IPOs for both exchanges. 

 


Conclusion / Investment Strategy

Although pricing looks aggressive, considering rising importance of water treatments and bright prospects ahead for this industry, this IPO may be considered for long term investment.

Review By Dilip Davda on Mar 18, 2015

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

Filtra Consultants IPO FAQs

  1. 1. Why Filtra Consultants IPO?

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

  2. 2. How is Filtra Consultants IPO?

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

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

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

  4. 4. Is Filtra Consultants IPO good?

    Our recommendation for Filtra Consultants IPO is to subscribe for long term.

  5. 5. Is Filtra Consultants IPO worth Investing?

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

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

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

  7. 7. When will Filtra Consultants IPO list?

    The Filtra Consultants IPO will list on Wednesday, April 15, 2015, at BSE SME.