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Jiya Eco-Products BSE SME IPO review (May apply)

Review By Dilip Davda on Jun 25, 2015

Jiya Eco-Products Ltd (JEPL) is engaged in the manufacturing of bio-fuels viz. bio-briquettes and bio-pellets which is an alternative source of energy and has the ability to replace/are fairly good substitutes of traditional fossil fuels like coal, firewood, lignite, etc.

In a bid to capitalize on the growing global demand of an alternate source of renewable energy JEPL ventured out in this segment. The location of our factory gives us the competitive edge over other players in terms of procurement and availability of raw material throughout the year. At present, the company has authorised collection centres spread over surrounding villages to source agricultural waste which serves as the major raw material in production of bio-fuels. The company received various incentives from Government including tax holiday, interest rate subvention and VAT exemption. Currently JEPL is one of the key players across the state of Gujarat in bio-fuel sector and has plans to expand its presence on PAN India basis.

For procuring new machinery and raise working capital, the company is coming out with an IPO of 2412000 equity share of Rs. 10 each at a fixed price of Rs. 19 per share to mobilize around Rs. 4.58 crore. The issue opens for subscription on 29.06.15 and will close on 02.07.15.  Minimum application is to be made for 6000 shares and in multiples thereon, thereafter. Post issue shares will be listed on BSE SME. Issue is lead managed by Pantomath Capital Advisors Pvt Ltd. Bigshare Services Pvt Ltd is the registrar to the issue. Having issued equity at par from inception to July 2014 it raised equity to Rs. 5.90 crore and in October 2014 and December 2014 it issued further equity at a price of Rs. 30 per share that raised the equity to its current level of Rs. 6.52 crore that will stay enhanced to Rs. 8.93 crore post IPO.


Conclusion / Investment Strategy

If we attribute the FY 2015 earning on annualized basis on fully diluted equity post IPO then the asking price is at a P/E of 5 plus that makes it a justified price IPO.

On performance front, the company has posted turnover/net profit of Rs. 1.65/Rs. 0.07 crore (FY 2013) and Rs. 14.02/Rs. 1.05 crore (FY 2014). For first nine months ended 31.12.14 it has earned net profit of Rs. 2.40 crore on a turnover of Rs. 20.46 crore.

This is 9th IPO from this merchant banker that has positive return record for its past seven listed mandates and eighth IPO of Ambition that is closing on 30.06.15.

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.

Review By Dilip Davda on Jun 25, 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

Jiya Eco Products IPO FAQs

  1. 1. Why Jiya Eco Products IPO?

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

  2. 2. How is Jiya Eco Products IPO?

    Read the Jiya Eco Products IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Jiya Eco Products IPO what should investors do?

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

  4. 4. Is Jiya Eco Products IPO good?

    Our recommendation for Jiya Eco Products IPO is to subscribe for long term.

  5. 5. Is Jiya Eco Products IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Jiya Eco Products IPO.

  6. 6. When will Jiya Eco Products IPO allotment status?

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

  7. 7. When will Jiya Eco Products IPO list?

    The Jiya Eco Products IPO will list on Thursday, July 16, 2015, at BSE SME.