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Review By Dilip Davda on December 23, 2015
While OFS Tech is the last BSE SME IPO for the calendar year 2015, NSE Emerge too have one IPO that is opening in the last week of December 2015. Details of the same are given hereunder:
Fourth Dimension Solutions Ltd (FDSL) is an information technology (IT) infrastructure, technical support services and operations outsourcing company having CMMI level 5 accreditation. It provides value to its customers by innovation, accomplishment, trust and long-term relationship through our unique service portfolio and expertise. FDSL provides range of information technology and consultancy services, including infrastructure services, end user IT support, IT asset life cycle, and integrated solutions. FDSL enables large and medium enterprises, Government organization and institutes to reduce their total cost of ownership using an onsite and on-call services, deliver strategic, personalized, full-service Technical Support services solutions with quality, value and commitment to total customer satisfaction. Its service assignments are mostly tender based contracts awarded to us by Local/State/Central Government bodies.
To meet its working capital requirements, the company is coming out with its maiden IPO of 2892000 equity shares of Rs. 10 each at a fixed price of Rs. 30 per share to mobilize Rs. 8.68 crore. Issue opens for subscription on 30.12.15 and will close on 07.01.2016. Minimum application is to be made for 4000 shares and in multiples thereon, thereafter. Issue is solely managed by Sarthi Capital Advisor Pvt Ltd and Sharepro Services (India) Pvt Ltd is the registrar to the issue. After having issued equity at par since incorporation to November 2014, it issued 10 lac shares by way of rights at a price of Rs. 30 and also issued bonus in the ratio of 3 for 1 in September 2015. Its current equity capital of Rs. 8 crore will stand enhanced to Rs. 10.89 crore post IPO. Post allotment shares will be listed on NSE Emerge.
On performance front, the company has posted average EPS of Rs. 74.15 and RoNW at 77.21% for last three fiscals. However, these earnings are on the paid up equity capital of Rs. 1 crore for FY 2013-14 and Rs. 2 crore for the remaining two fiscals. For first six months of the current fiscal, it has earned net profit of Rs. 5.88 crore on a turnover of Rs. 320.83 crore. If we annualize these earnings and attribute to the post IPO equity then EPS will stand around Rs. 10.80 and thus asking price is at around 3 P/E against peers P/E ranging from 8 to 67. Thus issue pricing is reasonable. On merchant banker’s front, this is the 13th IPO and earlier 12 have given average returns.
Conclusion: Considering reasonable pricing of the IPO, investors may consider long term investment, as most of SME IPOs have given some rewards post listings in the process.
Considering reasonable pricing of the IPO, investors may consider long term investment, as most of SME IPOs have given some rewards post listings in the process.
Review By Dilip Davda on December 23, 2015
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. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. 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 their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About 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.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The initial public offer (IPO) of Fourth Dimension Solutions Ltd offers an early investment opportunity in Fourth Dimension Solutions Ltd. A stock market investor can buy Fourth Dimension Solutions IPO shares by applying in IPO before Fourth Dimension Solutions Ltd shares get listed at the stock exchanges. An investor could invest in Fourth Dimension Solutions IPO for short term listing gain or a long term.
Read the Fourth Dimension Solutions IPO recommendations by the leading analyst and leading stock brokers.
Fourth Dimension Solutions IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Fourth Dimension Solutions IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Fourth Dimension Solutions IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Fourth Dimension Solutions IPO.
The Fourth Dimension Solutions IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Fourth Dimension Solutions IPO allotment status to check.
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