Global Education NSE SME IPO review (Subscribe)

Review By Dilip Davda on Feb 9, 2017

Global Education Ltd (GEL) is currently engaged in providing professional training and skill developments to corporate, teachers and students for human capital development and other various business support services to education institutions, students, corporate and banks. Its client primarily includes universities, schools and colleges wherein it provides training to teachers, principals, students and parents. The company also provides training to top and middle level managers, supervisors and executives of various corporates.

To meet its working capital and general corpus funds requirement, the company is coming out with a maiden IPO of 683000 equity share of Rs. 10 each via book building route with a price band of Rs. 140-150 to mobilize Rs. 9.56 to Rs. 10.25 crore based on lower and upper price band. Issue opens for subscription on 16.02.17 and will close on 21.02.17. Minimum application is to be made for 1000 shares and in multiple thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge platform. Issue is solely lead managed by Hem Securities Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. The company has issued bonus shares in the ratio of 24 for 1 (for Re. 1 paid up equity i.e. for Rs. 10 paid up it will be 2.4 share for every 1 share held) in December 2015 and in the ratio of 8 for 10 (For Rs. 10 paid up in November 2016). Its current paid up equity capital of Rs. 1.80 crore will stand enhanced to Rs. 2.48 crore post issue.

On performance front, the company has posted total revenue/net profit of Rs. 2.46 cr. / Rs. 0.96 cr. (FY14), Rs. 4.98 cr. / Rs. 1.09 cr. (FY15), Rs. 13.49 cr. / Rs. 2.82 cr, (FY16). For first six months of the current fiscal ended on 30.09.16 it has earned net profit of Rs. 2.84 cr. on a total revenue of Rs. 15.84 cr. If we annualize these earnings and attribute to fully diluted equity post issue then the asking price is at a P/E of around 6 plus against peer’s trading at 20 plus. Thus issue pricing appears reasonable.

On merchant banker’s front, this is the 28th mandate from their stable and earlier IPOs have shown mixed trends.

Conclusion: Investors having cash surplus may consider investment in this issue for medium to long term.


Conclusion / Investment Strategy

Investors having cash surplus may consider investment in this issue for medium to long term.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Feb 9, 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

Global Education IPO FAQs

  1. 1. Why Global Education IPO?

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

  2. 2. How is Global Education IPO?

    Read the Global Education IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Global Education IPO what should investors do?

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

  4. 4. Is Global Education IPO good?

    Our recommendation for Global Education IPO is to subscribe.

  5. 5. Is Global Education IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Global Education IPO.

  6. 6. When will Global Education IPO allotment status?

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

  7. 7. When will Global Education IPO list?

    The Global Education IPO will list on Thursday, March 2, 2017, at NSE SME.

Comments

Add a public comment...








Search Chittorgarh.com:

Download Our Mobile App

Android App iOS App