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MRSS BSE SME FPO review (Apply)

Review By Dilip Davda on Nov 26, 2016

Majestic Research Services & Solutions Ltd (MRSS) is offering customized solutions in market research that caters to the business across product life cycle. It focuses on market research, advertising research, brand research and consumer research and also offers other research related services. From pre-production market sizing to post product launch monitoring, MRSS has the appropriate resources and regional expertise to provide tailored solutions for its clients. Its client list includes companies like HUL, Yamaha, Wockardts, Nissan, Vodafone, Cipla, HPCL, Kellogs, Maruti, CRISIL, HDFC Bank, Pfizer, NSDL etc.

To meet its working capital requirement and this already BSE SME listed company is coming out with a FPO (Fresh Public Offer) via book building route to mobilize Rs. 10 crore. Price band for the issue is Rs. 106-114 per share. Thus based on lower and upper price bands, the company is likely to issue 943396 to 877193 equity share of Rs. 10 each. Issue opens for subscription on 28.11.16 and will close on 05.12.16. Minimum application is to be made for 1200 shares and in multiples thereon, thereafter. Issue is solely lead managed by Pantomath Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Post issue, its current paid up equity capital will stand enhanced from Rs. 4.12 crore to Rs. 5 crore plus. Post allotment, shares will be listed on BSE SME.

On performance front, the company reported turnover/net profit of Rs. 2.26 cr. / Rs. 0.13 cr. (FY14), Rs. 5.51 cr. / Rs. 0.52 cr. (FY15), and Rs. 11.28 cr. / Rs. 1.84 cr. (FY16). For first quarter of the current fiscal it has earned net profit of Rs. 0.83 crore on a turnover of Rs. 4.41 cr. If we annualize this and attribute on post IPO expanded equity then the asking price is at a P/E of 16 plus. The offer price is at a discount of around 20 per cent on its last traded price of Rs. 145 per share (as on 23.11.16). It has no listed peers to compare with.

On merchant banker’s front, it has mixed trends for its past mandates.

Conclusion: MRSS has emerged as an investor friendly corporate. Investment in the current offer may be considered for medium to long term rewards as the company is the only listed entity in research sector.


Conclusion / Investment Strategy

MRSS has emerged as an investor friendly corporate. Investment in the current offer may be considered for medium to long term rewards as the company is the only listed entity in research sector.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Nov 26, 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

MRSS FPO FAQs

  1. 1. Why MRSS FPO?

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

  2. 2. How is MRSS FPO?

    Read the MRSS FPO recommendations by the leading analyst and leading stock brokers.

  3. 3. MRSS FPO what should investors do?

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

  4. 4. Is MRSS FPO good?

    Our recommendation for MRSS FPO is to subscribe.

  5. 5. Is MRSS FPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the MRSS FPO.

  6. 6. When will MRSS FPO allotment status?

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

  7. 7. When will MRSS FPO list?

    The MRSS FPO will list on Wednesday, December 14, 2016, at BSE SME.