India Green BSE SME IPO review (Apply at your own risk)

Review By Dilip Davda on Sep 29, 2016

India Green Reality Ltd (IGRL) is a real estate developer with a diversified portfolio of real estate projects and engaged in the business of development and sale of residential and commercial properties including identification and acquisition of land, development of land, acquisition of development rights of projects, marketing of projects/land. Currently, the company is having three diversified projects at West Bengal and Gujarat and focusing on opportunities to build its brand in these two states. IGRL is building bungalows of varying sizes with focus on affordable pricing at Sonarpur-Kolkata and Shantiniketan -Bolpur, both projects in the state of West Bengal. It is developing and selling plot of land and constructing bungalows as well at Nal Sarover, Gujarat. Its forthcoming projects are at Jaisalmer-Rajasthan, and Sasan Gir-Gujarat.

To part finance its working capital needs and general corpus fundings, the company is coming out with a maiden IPO of 3460000 equity share of Rs. 10 each at a fixed price of Rs. 30 per share to mobilize Rs. 10.38 crore. Issue opens for subscription on 30.09.16 and will close on 06.10.16. Minimum application is to be made for 4000 shares and in multiples thereon, thereafter. Issue is solely managed by Guiness Corporate Advisors Pvt Ltd. and Karvy Computershare Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE SME. Since inception till 2015 it issued equity at par and then in 2016 it issued further equity at a fixed price of Rs. 60 and Rs. 75. It also issued bonus in the ratio of 25 for 10 in July 2016. Post issue, its current paid up equity capital of Rs. 9.25 crore will stand enhanced to Rs. 12.71 crore.

On performance front, for last four fiscals it has reported turnover/net profits of Rs.1.69 cr. / Rs. 0.08 cr. (FY13), Rs. 0.95 cr. / Rs. 0.15 cr. (FY14), Rs. 1.44 cr. / Rs. (-0.08 cr.) (FY15) and Rs. 41.37 cr. / Rs. 2.28 cr. (FY16). IGRL has reported spectacular performance only for FY16 that is raising eyebrows. However, if we attribute latest earnings on fully diluted equity post IPO then asking price is at a P/E of 16 plus. As per prospectus, its peers are trading at a P/E of around 10 and 21.

On merchant banker’s front, this is 13th mandate from its stable in last three years and it has erratic track record with few of its past mandate being suspended from trading.

Conclusion: This IPO can be termed as “High Risk – Low yield bet” as sudden push in top line and bottom line in the last fiscal raising concern. Only cash surplus risk savvy investors may consider investment for long term.


Conclusion / Investment Strategy

This IPO can be termed as “High Risk – Low yield bet” as sudden push in top line and bottom line in the last fiscal raising concern. Only cash surplus risk savvy investors may consider investment for long term.

Review By Dilip Davda on Sep 29, 2016

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

India Green Reality IPO FAQs

  1. 1. Why India Green Reality IPO?

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

  2. 2. How is India Green Reality IPO?

    Read the India Green Reality IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. India Green Reality IPO what should investors do?

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

  4. 4. Is India Green Reality IPO good?

    Sorry, we didn't rate the India Green Reality IPO.

  5. 5. Is India Green Reality IPO worth Investing?

    Our lead analyst Mr. Dilip Davda didn't rate the India Green Reality IPO.

  6. 6. When will India Green Reality IPO allotment status?

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

  7. 7. When will India Green Reality IPO list?

    The India Green Reality IPO will list on Tuesday, October 18, 2016, at BSE SME.








Search Chittorgarh.com:

Download Our Mobile App

Android App iOS App