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Madhya Bharat NSE SME IPO review (Apply)

Review By Dilip Davda on Aug 24, 2016

Madhya Bharat Agro Products Ltd (MBAPL) is manufacturing Beneficiated Rock Phosphate (BRP), Single Super Phosphate (SSP) and Sulphuric Acid which is used in large quantities for replenishing “P” (Phosphorus) in the soil and act as a fertilizer for the crop. Our Company has entered into the backward integration by manufacturing of Beneficiated Rock Phosphate (BRP) and Sulphuric Acid which is used as a raw material for manufacturing of SSP. The company is also engaged in business of Purchase and Sale of (Trading) of Textiles and agricultural commodity.

Company’s product has unique features like - Lowest price per kg preferred by small and marginal farmers - Multi-nutrient fertilizer containing P2O5 as primary nutrient and Sulphur and Calcium as secondary nutrients - It is the cheapest source of Sulphur for the Soil - Only Phosphatic fertilizer which can utilize Indian rock phosphate deposits.

For listing gains, the company is coming out with a maiden offer for sale of 5790000 equity share of Rs. 10 each at a fixed price of Rs. 24 per share to mobilize Rs. 13.90 crore. Issue opens for subscription on 29.08.16 and will close on 02.09.16. Minimum application is to be made for 6000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME –Emerge platform. Issue is lead managed by Hem Securities Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Its paid up capital will remain at Rs.21.91 crore post issue. From incorporation till Sept 2000 it issued equity at par and then at a price of Rs. 73.70 per share in 2007. Again it issued equity at par during 2009-2010 and then further equity in a price range of Rs. 24 to Rs. 100 per share. It has also issued bonus in the ratio of 2 for 1 in August 2009.

On performance front, as per restated statements, the turnover / net profits of the company were Rs. 58.96 cr. / Rs. 3.67 cr. (FY14), Rs. 68.43 cr. / Rs. 4.04 cr. (FY15) and Rs. 64.78 cr. / Rs. 9.45 cr. (FY16). Based on latest earnings, the asking price is at a P/E of around 6 that compares well against industry composite of 15 plus with the high and low of 25.77 and 6.82.

On merchant banker’s front, this is the 19th mandate from its stable and earlier 18 issues have shown mixed trends.

Conclusion: Investors may consider investment for medium to long term as this year normal monsoon is predicted.


Conclusion / Investment Strategy

Investors may consider investment for medium to long term as this year normal monsoon is predicted.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Aug 24, 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

Madhya Bharat Agro IPO FAQs

  1. 1. Why Madhya Bharat Agro IPO?

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

  2. 2. How is Madhya Bharat Agro IPO?

    Read the Madhya Bharat Agro IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Madhya Bharat Agro IPO what should investors do?

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

  4. 4. Is Madhya Bharat Agro IPO good?

    Our recommendation for Madhya Bharat Agro IPO is to subscribe.

  5. 5. Is Madhya Bharat Agro IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Madhya Bharat Agro IPO.

  6. 6. When will Madhya Bharat Agro IPO allotment status?

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

  7. 7. When will Madhya Bharat Agro IPO list?

    The Madhya Bharat Agro IPO will list on Friday, September 9, 2016, at NSE SME.