Funny Software IPO Review (Apply at your own risk)

Review By Dilip Davda on May 14, 2015

Funny Software Ltd (FSL) is engaged in the providing IT services, consulting and business solutions organization and delivering results to its valued clients. The company also operates as reseller organization by a team of dynamic professionals with marketing, sales and technical know-how spread across various industries. It predominantly caters to Delhi and nearby markets and act as IT Distribution space. Going forward, FSL plan to increase its product portfolio and also plans to penetrate in new markets.

FSL has a comprehensive portfolio of product offerings covering desktop, laptops, servers, Hard Disk Drives, Scanners, Memory Modules and Cards, USB Drives, Speakers, Optical Media, Casings, Electronic Copy boards, Clear One Audio Conferencing, Elmo Document Camera etc. Its range of products and services consists are: Data processing,  Dealing in Desktops, Laptops, Servers, Storage and Software, Imaging Software, Hard Disk Drives / Portable storage Solutions, Scanners, Memory Modules and Cards, USB Drives, Speakers, Optical Media, Casings, SMPS, UPS, Webcams, Keyboards & Mice, Networking of Computers, Advisors and consultants in respect of matters relating to Computer hardware software computer aided Programmes.

To part finance acquisition of certain fixed assets and needs for incremental working capital as well as general corpus funds, it is coming out with a maiden IPO of 3280000 equity share of Rs. 10 each at a fixed price of Rs. 14 per share to mobilize Rs. 4.59 crore. Issue opens for subscription on 14.05.15 and will close on 20.05.15. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Issue is lead managed by First Overseas Capital Ltd and Skyline Financial Services Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE SME platform. Issue is fully underwritten by two underwriters. The company issued 86500 shares of Rs. 10 each at a price of Rs. 200 per share on 25.03.08 and then issued bonus shares in the ratio of 17 for 1 on 12.10.13. Thereafter it further issued at par equity worth Rs. 7.33 crore plus on 25.10.13 and 02.09.14 to take it’s paid up equity capital to Rs. 9.07 crore.


Conclusion / Investment Strategy

On performance front, the company that started its operations in mid 2012-13 earned net profit of Rs. 0.003 crore on a turnover of Rs. 0.85 crore. For fiscal 2013-14 it has marked net profit of Rs. 0.04 crore on a turnover of Rs. 3.38 crore and for first nine months ended 31.12.14 it has earned net profit of Rs. 0.04 crore on a turnover of Rs. 2.76 crore. If we annualized these earnings, then EPS for fiscal would be around Rs.0.06. And post issue its equity of Rs. 9.07 crore will jump to Rs. 12.35 crore that will translate it in to an EPS of Rs. 0.04 indicating for its issue price at a P/E of 350. This issue is highly priced one. Merchant banker has poor track record.

We have witnessed erratic movements of SME IPOs post listings despite market making that might have helped in listing gains, but later on regular trading remains a far cry. Due to this and the entry barriers, broking community at large discourages investments in SME IPOs.

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 prior to making any actual investment decisions, based on information published here. As SME issues have entry barriers and low preference from broking community, any reader taking decisions based on any information published here does so entirely at own risk. Author has no plans to invest in this offer.

(Email: dilip_davda@rediffmail.com)

Review By Dilip Davda on May 14, 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

Funny Software IPO FAQs

  1. 1. Why Funny Software IPO?

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

  2. 2. How is Funny Software IPO?

    Read the Funny Software IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Funny Software IPO what should investors do?

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

  4. 4. Is Funny Software IPO good?

    Sorry, we didn't rate the Funny Software IPO.

  5. 5. Is Funny Software IPO worth Investing?

    Our lead analyst Mr. Dilip Davda didn't rate the Funny Software IPO.

  6. 6. When will Funny Software IPO allotment status?

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

  7. 7. When will Funny Software IPO list?

    The Funny Software IPO will list on Tuesday, June 2, 2015, at BSE SME.








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