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Money Masters Leasing & Finance Ltd IPO Review (Avoid)

Review By Dilip Davda on Jul 20, 2013

While primary market is having lull season post Just Dial main line IPO we had two SME IPO from India Finsec and eDymanics. Thereafter we just witnessed some activities in primary market with an NCD offer of Shriram Transport for Rs. 750 crore that is open and will close on 29.07.13 or before depending on response. In the meanwhile, we have yet another BSE SME IPO of Money Masters. Details of the same are as under:

 

Money Masters Leasing & Finance Ltd. Is a NBFC registered with RBI to Carry on NBFC activities. The Company provides financing on hire purchase basis to Auto Rickshaws, computers, Industries Machinery & tools, cars & Equipments Company also provide loans against property. The company is now entering in the primary market with public issue of 13,36,000 Equity shares of the face value of Rs.10 at a price of Rs.15.  It will constitute 29.73% to the post issue paid up share capital. Company will raise Rs. 2.00 crore from this issue. Object of the issue is to augment Capital base and fund requirement for increasing operations. Lead manager to the issue is Sobhagya capital Options Ltd and registrar to the issue is Universal Capital Securities Pvt. Ltd. Shares will be listed on BSE SME. Issue opens on 23rd July 2013 and will close on 26th July 2013. Minimum application is to be made for 8000 shares and in multiples thereof, thereafter.

 

During the FY 2012-13 and 2011-12, the Company reported total revenue of Rs.1.50 crore (Rs.1.30 crore) with Net profit of Rs.0.17 crore (Rs.0.11 crore). This translates into an EPS of Rs. 0.01 per share making the offer price of Rs. 15 per share at a P/E of 1500 on old equity. Post issue, equity will rise to Rs. 4.49 crore.


Conclusion / Investment Strategy

Remarks: Considering the fate of SME counters in the recent past, risk aver investors can take a chance. Others can just avoid it.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Jul 20, 2013

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

Money Masters IPO FAQs

  1. 1. Why Money Masters IPO?

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

  2. 2. How is Money Masters IPO?

    Read the Money Masters IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Money Masters IPO what should investors do?

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

  4. 4. Is Money Masters IPO good?

    Our recommendation for Money Masters IPO is to avoid.

  5. 5. Is Money Masters IPO worth Investing?

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

  6. 6. When will Money Masters IPO allotment status?

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

  7. 7. When will Money Masters IPO list?

    The Money Masters IPO will list on Monday, August 12, 2013, at BSE SME.