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Newever Trade Wings Ltd IPO Review (Avoid)

Review By Dilip Davda on Oct 1, 2013

Newever Trade Wings Ltd (NTWL) is currently engaged in the business of trading of iron & steel and other commodities. It’s a multiproduct Iron & Steel trading company with a diverse product portfolio. It commenced the trading business from the last quarter of FY 2013. The current portfolio of iron & steel products currently being traded includes i) GI Wire, ii) MS Angle, iii) MS Round Cutting, iv) Pig Iron, v) Steel Forge Bar and vi) TMT Bar. NTWL is serving the corporate and other clients from fabrication and manufacturing industry. List of its customer includes CMG Ductiles Limited, Ranisati Metal Industries, S.G. Strips Limited and TIF (Castings) Limited etc. The company also mulls adding the agri-products, mainly various pulses, maize and barley etc. into its trading products portfolio.

The company is offering 6320000 equity share of Rs. 10 each at par to mobilize Rs. 6.32 crore to part finance its working capital and other expenses requirements. The issue is opening on 30.09.13 and will close on 03.10.13. Minimum application is to be made for 10000 shares and in multiples thereof, thereafter.  Existing equity of Rs. 17.63 crore will rise to Rs. 23.95 crore post this issue.  INVENTURE MERCHANT BANKER SERVICES PRIVATE LIMITED is the sole lead manager to the issue and SHAREPRO SERVICES (INDIA) PRIVATE LIMITED is the registrar to the issue. Post allotment, the shares will be listed on BSE SME.

For the first (partial) concluded fiscal 2012-13 it posted net profit of Rs. 0.04 crore on a turnover of Rs. 10.28 crore. This translates into an EPS of Rs. 0.01 on expanded equity on annualized bases at 1000 + P/E even at par value. Its current NAV of Rs. 9.95 will rise just to Rs. 9.96 post this issue.

This is the sixth SME IPO from this merchant banker with inconsistent record of earlier mandates.


Conclusion / Investment Strategy

Even though issue is at par, considering entry barrier, one should avoid it.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Oct 1, 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

Newever Trade Wings IPO FAQs

  1. 1. Why Newever Trade Wings IPO?

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

  2. 2. How is Newever Trade Wings IPO?

    Read the Newever Trade Wings IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Newever Trade Wings IPO what should investors do?

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

  4. 4. Is Newever Trade Wings IPO good?

    Our recommendation for Newever Trade Wings IPO is to avoid.

  5. 5. Is Newever Trade Wings IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Newever Trade Wings IPO.

  6. 6. When will Newever Trade Wings IPO allotment status?

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

  7. 7. When will Newever Trade Wings IPO list?

    The Newever Trade Wings IPO will list on Thursday, October 17, 2013, at BSE SME.