GCM Capital Advisors Ltd IPO Review (Avoid)

Review By Dilip Davda on May 3, 2014

 

GCM Capital Advisors Ltd. Is a diversified financial services company mainly engaged in the business of providing financial advisory & consultancy services and engaged in treasury operations by providing funding solutions to its clients both in the form of Debt & Equity and investment activities. It provide integrated solutions to our clients which includes managing crucial aspects like corporate finance, working capital finance, project finance and financial restructuring to corporate. We are primarily focused on small and mid sizes enterprises (SMEs). 

 

The Company is also engaged in making investment in the form of Debt & Equity in various companies. To meet its financial liquidity and resources to be able to meet demands and opportunities from its development plans the company is offering 4500000 equity share of Rs. 10 each at a fixed price of Rs. 20 each. The issue opens on 05.05.14 and will close on 07.05.14. Minimum application is to be made for 6000 shares and in multiples thereof, thereafter. The issue is lead managed by Inventure Merchant Banker Services Pvt. Ltd and S K Infosolutions Pvt Ltd is the registrar to the issue. 

 

On performance front, the company has just performed for few months ending February 2014 and has posted an EPS of Rs. 0.61. For the said period, it has posted net profit of Rs. 0.49 crore on a total income of Rs. 1.27 crore on an equity capital of Rs. 12.44 crore that will rise to Rs. 16.94 crore post issue. If we attribute this earning on enhanced equity then the EPS comes to Rs. 0.29 per share and thus asking price translates in to P/E of 68 plus.  

 

Merchant banker has poor track record.


Conclusion / Investment Strategy

 

Avoid this offer that also has entry barrier.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on May 3, 2014

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

GCM Capital Advisors IPO FAQs

  1. 1. Why GCM Capital Advisors IPO?

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

  2. 2. How is GCM Capital Advisors IPO?

    Read the GCM Capital Advisors IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. GCM Capital Advisors IPO what should investors do?

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

  4. 4. Is GCM Capital Advisors IPO good?

    Our recommendation for GCM Capital Advisors IPO is to avoid.

  5. 5. Is GCM Capital Advisors IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the GCM Capital Advisors IPO.

  6. 6. When will GCM Capital Advisors IPO allotment status?

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

  7. 7. When will GCM Capital Advisors IPO list?

    The GCM Capital Advisors IPO will list on Wednesday, May 21, 2014, at BSE SME.








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