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Maximus International BSE SME IPO review (Others)

Review By Dilip Davda on Mar 10, 2017

Maximus International Ltd (MIL) is primarily engaged in the business of importing and exporting lubricant oils, different types of base oils and other chemical products used mainly in the Automobile Industry, Power Industry and Metal manufacturing among others. The Company acts as a Merchant Exporter and Sourcing Company with a niche focus on lubricants and base oils. It has also started trading in plastic additives used for masterbatches, and certain agro related products. MIL has presence in the markets of Middle East & certain African Countries and understands needs of these Markets. It aims to expand its product portfolio in these regions and acts as a sourcing company for various industrial and agricultural based companies.

To part finance its long term working capital needs and general corpus funds, the company is coming out with a maiden IPO of 1506000 equity share of Rs. 10 each at a fixed price of Rs. 25 per share to mobilize Rs. 3.77 crore. Issue opens for subscription on 17.03.17 and will close on 22.03.17. Minimum application is to be made for 6000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely lead managed by Aryaman Financial Services Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Till September 2016 it issues all equity at par and in October 2016, it issued further equity at a price of Rs. 25 per share. Its current paid up equity capital of Rs. 3.70 crore will stand enhanced to Rs.5.21 crore post issue.

On performance front, as the company has started its activities in late FY 15-16, it has posted turnover/net profits of Rs. 0.49 cr. / Rs. 0.01 cr. (FY16). For first seven months of the current fiscal it has earned net profit of Rs. 0.22 crore on a turnover of Rs. 5.33 crore. If we annualize these earnings and attribute on fully diluted equity post issue, then asking price is at a P/E of around 34 plus making it aggressively priced issue. Peers are trading at around 13 to 20 P/Es.

On merchant banker's front, in last three years till date this is the 13th mandate and earlier mandates have shown mixed trends.

Conclusion: Considering track record and the aggressive pricing, only cash surplus risk savvy investors may consider investment for long term.


Conclusion / Investment Strategy

Considering track record and the aggressive pricing of Maximus International BSE SME IPO, only cash surplus risk savvy investors may consider investment for long term.

Review By Dilip Davda on Mar 10, 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 prior to making any actual investment decisions, based on information published here. With entry barriers, SEBI wants only well informed investors to participate is such offers. With crazy recent listings, SME IPOs have started drawing attention of investors across the board. However, as SME issues have entry barriers and continued low preference from broking community, any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on information available as on date coupled with market perceptions. Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda, a freelance journalist

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

Maximus International IPO FAQs

  1. 1. Why Maximus International IPO?

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

  2. 2. How is Maximus International IPO?

    Read the Maximus International IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Maximus International IPO what should investors do?

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

  4. 4. Is Maximus International IPO good?

    Sorry, we didn't rate the Maximus International IPO.

  5. 5. Is Maximus International IPO worth Investing?

    Our lead analyst Mr. Dilip Davda didn't rate the Maximus International IPO.

  6. 6. When will Maximus International IPO allotment status?

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

  7. 7. When will Maximus International IPO list?

    The Maximus International IPO will list on Thursday, March 30, 2017, at BSE SME.

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