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Manav Infra Projects NSE SME IPO review (May apply)

Review By Dilip Davda on Aug 30, 2017

Manav Infra Projects Ltd. (MIPL) is engaged into the business of civil construction services such as piling, excavation, road construction, land leveling. The company also provides a complete range of earth moving machines and construction equipments on rent for all type of infrastructure and construction related work. List of MIPL customers include large size of construction and infrastructure companies like Kanakia Spaces Realty Private Limited, J Kumar Infra Projects Limited, ACC Limited, J P Infra Constructions, Simplex Infrastructure Limited, Man Infra Constructions Limited, Nirmal Lifestyle Limited amongst others.

To part finance its working capital and general corpus fund needs, the company is coming out with a maiden IPO of 1836000 equity share of Rs.10 each at a fixed price of Rs.30 per share to mobilize Rs. 5.51 crore. Issue opens for subscription on 04.09.17 and will close on 08.09.17. Minimum application is to be made for 4000 shares and in multiples thereon, thereafter. Post allotment shares will be listed on NSE SME Emerge. Issue is solely lead managed by Navigant Corporate Advisors Ltd. and Karvy Computershare Pvt. Ltd. is the registrar to the issue. The issue will constitute 26.86% of the post issue paid up capital of the company. Company’s equity is issued at par since incorporation till January 2012 and has issued bonus in the ratio of 3 for 2 in May 2017. Post issue, its current paid up equity capital of Rs. 5 crore will stand enhanced to Rs. 6.84 crore.

On performance front, for last four fiscals, MIPL has posted turnover/net profits of Rs. 11.97 cr./ Rs. 0.21 cr. (FY14), Rs. 16.23 cr. / Rs. 0.004 cr. (FY15), Rs. 16.44 cr. / Rs, 0.61 cr. (FY16) and Rs. 18.30 cr. / Rs. 1.03 cr. (FY17). It suffered a setback for FY15 despite higher other income. Sudden jump in bottom-line for FY16 and FY17 is due to deferred tax provisions. Last three fiscals average EPS of Rs. 3.60 and average RoNW of 15.29% is based on a paid up capital of Rs. 2 crore. If we attribute latest earnings on fully diluted equity post issue then asking price is at a P/E of 20 plus. Peers are trading around 20 to 23 P/E. Thus issue appears to be fully priced.

On merchant banker’s front, this is the 7th mandate from its stable in last three fiscals. Out of last 6 listings, 3 opened at discount, 1 at par, 1 with nominal premium and 1 with over 20% premium on the listing day.

Conclusion: Considering fully priced issue, risk savvy cash surplus investors may invest for long term.


Conclusion / Investment Strategy

Considering fully priced issue, risk savvy cash surplus investors may invest for long term.

Review By Dilip Davda on Aug 30, 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

Manav infra projects IPO FAQs

  1. 1. Why Manav infra projects IPO?

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

  2. 2. How is Manav infra projects IPO?

    Read the Manav infra projects IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Manav infra projects IPO what should investors do?

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

  4. 4. Is Manav infra projects IPO good?

    Our recommendation for Manav infra projects IPO is to subscribe for long term.

  5. 5. Is Manav infra projects IPO worth Investing?

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

  6. 6. When will Manav infra projects IPO allotment status?

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

  7. 7. When will Manav infra projects IPO list?

    The Manav infra projects IPO will list on Monday, September 18, 2017, at NSE SME.
More Manav infra projects IPO Views / Analysis / Recommendations ...

1 Comments

1. manish pandya  Sep 19, 2017 8:40:11 PM
what to do sell or stay? 2 appliction is ther