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Focus Lighting & Fixtures NSE SME IPO review (Apply)

Review By Dilip Davda on Mar 27, 2017

Focus Lighting & Fixtures Ltd (Focus) is currently providing vide range of products which includes recessed adjustable spotlights, recessed down lights, surface mounted spotlights, surface-mounted / suspended down lights, system based spotlights / wall washer, track-mounted spotlights, etc. each with different working capabilities. The new range of luminaires have been designed and developed by the finest product designers from Germany, proficient in the field of lighting design; supported by a proficient team of Indian Professionals. The products of Focus are designed from Germany, these designs are provided to our supplier in China and the moulds prepared as per the specified designs. The products are imported from China under the brand name of TRIX. Company’s products under brand name of PLUS are manufactured by M/s. Shantilal & Bros (Mfg Dept). Appox. 70-80% of its total purchases are from Shantilal & Bros (Mfg Dept). Even for exports, appx. 90% of the products are manufactured by Shantilal & Bros (Mfg Dept). Now the Company has initiated the process of establishing its own manufacturing unit at Bhiwandi, Mumbai due to growing demand of its products.

To part finance working capital requirements and general corpus fund needs, the company is coming out with a maiden IPO of 900000 equity share of Rs. 10 each at a fixed price of Rs. 45 per share to mobilize Rs. 4.05 crore. Issue opens for subscription on 30.03.17 and will close on 05.04.17. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is solely lead managed by Sarthi Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. After raising initial equity on inception at par, it raised further equity at a price of Rs. 500 per share in March 2010 and then issued bonus shares in the ratio of 50 for 1 in October 2016. Its current paid up equity capital of Rs. 2.48 crore will stand enhanced to Rs. 3.38 crore post issue.

On performance front, the company has posted turnover/net profits of Rs. 18.32 cr./ Rs. 0.44 cr. (FY13), Rs. 34.21 cr. / Rs. 0.76 cr. (FY14), Rs. 42.24 cr. / Rs. 1.10 cr. (FY15) and Rs. 61.16 cr. / Rs. 3.26 cr. (FY16). For first half of the current fiscal it has earned net profit of Rs. 1.52 cr. on a turnover of Rs. 36.66 cr. If we annualize latest earnings and attribute it on fully diluted equity post issue then asking price is at a P/E of around 5 that augurs well. It has no listed peers to compare with.

On merchant banker’s front, this is the 23rd IPO from its stable and previous mandates have shown mixed trends. However, if we consider last12 issues then they have given positive returns on the listing day.

Conclusion: Based on pricing and the performance, one may consider investment for medium to long term.


Conclusion / Investment Strategy

Based on pricing and the performance, one may consider investment for medium to long term.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Mar 27, 2017

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

Focus Lighting And Fixtures IPO FAQs

  1. 1. Why Focus Lighting And Fixtures IPO?

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

  2. 2. How is Focus Lighting And Fixtures IPO?

    Read the Focus Lighting And Fixtures IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Focus Lighting And Fixtures IPO what should investors do?

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

  4. 4. Is Focus Lighting And Fixtures IPO good?

    Our recommendation for Focus Lighting And Fixtures IPO is to subscribe.

  5. 5. Is Focus Lighting And Fixtures IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Focus Lighting And Fixtures IPO.

  6. 6. When will Focus Lighting And Fixtures IPO allotment status?

    The Focus Lighting And Fixtures IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Focus Lighting And Fixtures IPO allotment status to check.

  7. 7. When will Focus Lighting And Fixtures IPO list?

    The Focus Lighting And Fixtures IPO will list on Thursday, April 13, 2017, at NSE SME.