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Gala Print City BSE SME IPO review (Others)

Review By Dilip Davda on Jun 26, 2015

Gala Print City Ltd (GPCL) is engaged in printing services on tailor-made basis as per requirements of the user industry. According to the management, the company observes absolute commitment to quality, meticulous attention to detail and unparalleled level of services in Multicolor Offset Printing, Web Offset with Binding and Design Studio. Company’s client list includes Income Tax Department, Gujarat University, Navneet Publications, Gala Stationery, Saurashtra University, Ajanta Quartz, Maharashtra Text Book Boards etc.

To meet its working capital requirements, the company is coming out with an IPO of 1266000 equity share of Rs. 10 each at a fixed price of Rs. 24 per share to mobilize Rs. 3.04 crore. Issue opens for subscription on 30.06.15 and will close on 06.07.15. Minimum application is to be made for 6000 shares and in multiples thereon, thereafter. Post allotment shares will be listed on BSE SME. Issue is lead managed by Guiness Corporate Advisors Pvt Ltd and Sharepro Services (I) Pvt Ltd. In February 2014 it issued bonus shares in the ratio of 3 shares for every 38 shares. Thereafter it issued equity shares to promoters at par till September 2014. Its current paid up equity capital of Rs. 3.49 crore stand enhanced to Rs. 4.76 crore post IPO.

On performance front, the company posted net profit of Rs. 0.04 crore on a turnover of Rs. 3.37 crore (FY 2013) and net profit of Rs. 0.01 crore on a turnover of Rs. 4.75 crore. For first nine months ended 31.12.14 it has earned net profit of Rs. 0.08 crore on a turnover of Rs. 10.99 crore.


Conclusion / Investment Strategy

If we annualize these earnings and attribute to fully diluted equity post issue then asking price is at a P/E of 104 plus. Thus issue is aggressively priced.

Merchant banker has erratic performances for its past mandates. This is 17th IPO from its stable.

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.

 

 

Reviewer not sure about the issue.

Review By Dilip Davda on Jun 26, 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 prior to making any actual investment decisions, based on information published here. With entry barriers, SEBI wants only well informed investors to participate is such offers. With crazy recent listings, SME IPOs have started drawing attention of investors across the board. However, as SME issues have entry barriers and continued low preference from broking community, any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on information available as on date coupled with market perceptions. Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda, a freelance journalist

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

The Gala Print City IPO Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered IPO Analysts tells you if Gala Print City IPO worth investing. The Gala Print City IPO Note sets the IPO expectations in systematic way which tells you if Gala Print City IPO good to buy (good or bad / yes or no). The IPO Forecast tells you weather to invest in Gala Print City IPO by providing IPO recommendations i.e. subscribe, avoid and neutral.


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