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Manas Properties BSE SME IPO review (May apply)

Review By Dilip Davda on Mar 15, 2017

Manas Properties Ltd (MPL) is primarily into the business of acquiring properties and leasing / letting it out to its clients thereby earning lease rentals / license fees as consideration, as well as earning price appreciation (as the case may be). Currently ther company owns a property admeasuring approximately 3,078 square metres of built up area located at Plot No 16, Juhu Tara Road Santacruz (West), Mumbai -400049, which has been leased out to Junobo Hotels Private Limited, for operating “Soho House” , a private luxury club the lease rentals of which shall be received from financial year 2017-18. Further MPL also acts as a real estate marketing and consultancy company; wherein it support sales/ lease targets of builders/ developers in return for commission on a fixed/ percentage basis. Currently the real estate marketing and consultancy business is being carried out for its Group Company; i.e. Dev Land and Housing Private Limited and it has begun the process of entering into such agreements with other developers in order to expand its customer base and available inventory portfolio for clients for providing these services.

To part finance repayment of loans, property acquisitions, general corpus fund needs, the company is coming out with a maiden IPO of 1110000 equity share of Rs. 10 each (comprising of 150000 fresh equity issue and 960000 offer for sale) at a fixed price of Rs. 360 per share to mobilize Rs. 39.96 crore. Issue opens for subscription on 17.03.17 and will close on 22.03.17. Minimum application is to be made for 300 shares and in multiples thereon, thereafter. Post allotment shares will be listed on BSE SME. Issue is solely managed by Aryaman Financial Services Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Its entire equity is issued at par. Its current paid up equity capital of Rs. 4.01 cr. will stand enhanced to Rs. 4.16 cr. post issue.

On performance front, the company has posted turnover/net profits of Rs. 11.03 cr. / Rs. -0.24 Cro. (FY13), Rs. 8.28 cr. / Rs.-2.80 cr. (FY14), Rs. 7.11 cr. / Rs. -1.61 cr. (FY15) and Rs. 7.73 cr. / Rs. 5.34 cr. (FY16). For the eight months’ period ended on 30.11.16 it has earned net profit of Rs. 1.25 cr. on a turnover of Rs. 1.98 cr. Thus it has erratic trends of performance. Sudden jump in net profit for FY 15 is surprising. If we annualize the latest earnings and attribute it on the fully diluted equity post issue, then asking price is at a P/E of around 79 and P/BV if 28 times plus making it a costly offer. The company posted profits only in FY 16 and thereafter. As per prospectus the company has no listed peers to compare with.

On merchant banker’s front, this is the 15th mandate in last three years and past mandates have shown mixed trends.

Conclusion: Issue is highly priced and hence there is no harm in giving it a miss. However, risk savvy cash surplus investors may consider investment at their discretion.


Conclusion / Investment Strategy

Issue is highly priced and hence there is no harm in giving it a miss. However, risk savvy cash surplus investors may consider investment at their discretion.

Review By Dilip Davda on Mar 15, 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

Manas Properties IPO FAQs

  1. 1. Why Manas Properties IPO?

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

  2. 2. How is Manas Properties IPO?

    Read the Manas Properties IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Manas Properties IPO what should investors do?

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

  4. 4. Is Manas Properties IPO good?

    Our recommendation for Manas Properties IPO is to subscribe for long term.

  5. 5. Is Manas Properties IPO worth Investing?

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

  6. 6. When will Manas Properties IPO allotment status?

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

  7. 7. When will Manas Properties IPO list?

    The Manas Properties IPO will list on Thursday, March 30, 2017, at BSE SME.