Navigant Corporate Advisor BSE SME IPO review (Avoid)

Review By Dilip Davda on Nov 24, 2015

Navigant Corporate Advisors Ltd (NCAL) was primarily promoted as real estate company under the name of S P Realtor Estates Ltd, that later ventured into corporate advisory, merchant banking allied activities etc.  It rechristened itself to present name. It currently offers services in Capital Market, Corporate Finance, Investment Advisory, Investment activities, short term financing etc.

To avail listing benefits, the company is coming out with an offer for sale of 850000 equity shares of Rs. 10 each at a fixed price of Rs. 14 per share to mobilize Rs. 1.19 crore. As this is offer for sale, the post issue capital will remain same and company will not get any funds. Issue opens for subscription on 30.11.15 and will close on 07.12.15. Issue is lead managed by First Overseas Capital Ltd and Karvy Computershare is the registrar to the issue. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Post allotment shares will be listed on BSE SME. After initial issue of equity at Par for MoA process, it issued further equity at a price of Rs. 40 and Rs. 50 per share in March and October 2014. It then issued bonus shares in the ratio of 5 for 2 in June 2015 and then issued further equity at a price of Rs. 16 per share in the same month to bring its current paid up equity of Rs. 3.15 crore.   

On performance front, the company has posted an average EPS of Rs. 1.93 and for first two months it has reported an EPS of Rs. 1.12. For the Fiscal 2014 it earned net profit of Rs. 0.02 crore on a total income of Rs. 0.13 crore. For Fiscal 2015 it registered net profit of Rs. 0.20 crore on a total income of Rs. 0.84 crore. For first two months of the current fiscal (ended 30.06.15) it has posted net profit of Rs. 0.08 crore on a turnover of Rs. 0.24 crore. Fiscal 2014 and 2015 earnings are on a paid up equity of Rs. 0.19 crore. If we annualized and attribute current earnings, then the EPS will come to around Rs. 0.15 and thus asking price is at a P/E of 90 plus. Although cost of acquisition of equity by promoters is Rs. 15.40 and it being offered at a price lower than that, this issue is priced very aggressively.

Merchant banker have poor track record for its past mandates.


Conclusion / Investment Strategy

Issue is priced very aggressively, risk savvy investors may plan long term investment considering SME IPOs having given some rewards post listings in the process.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Nov 24, 2015

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

Navigant Corporate Advisors IPO FAQs

  1. 1. Why Navigant Corporate Advisors IPO?

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

  2. 2. How is Navigant Corporate Advisors IPO?

    Read the Navigant Corporate Advisors IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Navigant Corporate Advisors IPO what should investors do?

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

  4. 4. Is Navigant Corporate Advisors IPO good?

    Our recommendation for Navigant Corporate Advisors IPO is to avoid.

  5. 5. Is Navigant Corporate Advisors IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Navigant Corporate Advisors IPO.

  6. 6. When will Navigant Corporate Advisors IPO allotment status?

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

  7. 7. When will Navigant Corporate Advisors IPO list?

    The Navigant Corporate Advisors IPO will list on Friday, December 18, 2015, at BSE SME.








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