JLA Infraville Shoppers Limited IPO Review (Avoid)

Review By Dilip Davda on Oct 7, 2014

JLA INFRAVILLE SHOPPERS LIMITED is engaged in the operations of online trading and retailing of range of products including fabrics, clothing, furnishings, electronics and computers and its accessories, surgical instruments and Hearing Aid Accessories. Thus it is a start-up in the E-Commerce Industry. JLA Infra also venturing into Real Estate business which shall include inter alia purchase of land, its development and further sale. Promoters do not posses any past experience in real estate business.

Company’s E-commerce platform Infraville.com is an electronic store dedicated to provide 360-degree shopping solutions to its customers. It is providing products to customers at best price, with unmatched collection ranging from big brands to affordable imported items from vast range of product categories. The vendors approach to the company for the sale and supply of their products, through online web shopping platform provided by the company. The website also provides an online specialized store to some vendors in order to give them an experience of their own online retail outlet.

Infraville.com offers the wide range of choices in every conceivable product category. These categories include Electronics &Technology, Flowers & Fragrances, Music & Movies, Home & Garden, Beauty & Fashion, Jewelry, Computer & Software, Kitchen & appliances, Faiths & Beliefs, Games & Toys, Health & Personal care.

To part finance its business funding requirements, the company is offering 2000000 equity share of Rs. 10 each at par to mobilize Rs. 2 crore. Issue opens for subscription on 16.10.14 and will close on 27.10.14. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Post IPO its present equity of Rs. 4.49 crore will rise to Rs. 6.49 crore. Shares will be listed on BSE SME after allotment. Issue is solely managed by Sarthi Capital Advisors and Bigshare Services Pvt Ltd is the registrar to the issue.

On performance front, for past two fiscals, it has posted turnover/ net profit of Rs. 0.09 crore/Rs. 0.01 Crore (2012-13) and Rs. 0.09 crore/Rs. 0.02 crore (2013-14). Based on this even at par the issue is at asking price at P/E of 333 on fully diluted equity post IPO and hence is not worth.

This is the seventh SME IPO from Sarthi Capital Advisors Pvt Ltd that has mix track record for past five listed mandates.

 


Conclusion / Investment Strategy

Risk aver investors can park funds for long term at their own discretion keeping in mind the trading lot barriers on application and trading post listing.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Oct 7, 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

JLA Infraville IPO FAQs

  1. 1. Why JLA Infraville IPO?

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

  2. 2. How is JLA Infraville IPO?

    Read the JLA Infraville IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. JLA Infraville IPO what should investors do?

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

  4. 4. Is JLA Infraville IPO good?

    Our recommendation for JLA Infraville IPO is to avoid.

  5. 5. Is JLA Infraville IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the JLA Infraville IPO.

  6. 6. When will JLA Infraville IPO allotment status?

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

  7. 7. When will JLA Infraville IPO list?

    The JLA Infraville IPO will list on Wednesday, November 12, 2014, at BSE SME.








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