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Review By Dilip Davda on August 31, 2017
Nouritrans Exim Ltd. (NEL) is in the business of exports, imports and trading of commodity since 1995. Its global presence covers various markets in USA, UK, Europe, South Africa and Middle East. The company has been accredited as an International Commodity Export-Import & Trading Company and having APEDA certificate. Its product portfolio covers various Agro based products and Scraps. Over the decades, NEL has emerged as a leading Import-Export & Trading Company with wide portfolio of International and Domestic customers.
To part finance its working capital and general corpus fund needs, NEL is coming out with a maiden IPO of 2040000 equity shares of Rs. 10 each at a fixed price of Rs. 30.00 per share to mobilize Rs. 6.12 crore. Issue opens for subscription on 04.09.17 and will close on 07.09.17. Minimum application is to be made for 4000 shares and in multiples, thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely lead managed by First Overseas Capital Ltd and Karvy Computershare Pvt. Ltd. is the registrar to the issue. After initial equity issues at par, it raised further equity at a price of Rs. 30 per share between 31.03.17 and 07.06.17. It has also issued bonus shares in the ratio of 3 shares for every 2 shares held on 03.06.17. Post issue, its current paid up equity capital of Rs. 4.06 crore will stand enhanced to Rs. 6.10 crore. Issue constitutes 33.46 % of the post issue fully diluted paid up capital of the company.
On performance front, for last four fiscals NEL has posted turnover/net profits of Rs. 1.19 cr. / Rs. 0.005cr. (FY14), Rs. 4.18 cr. / Rs. 0.05 cr. (FY15), Rs. 6.35 cr. / Rs. 0.06 cr. (FY16) and Rs. 11.60 cr. / Rs. 0.30 cr. (FY17). Thus it has posted rising trends in top and bottom lines. FY 17 net profit includes other income of Rs. 0.12 cr. For last three fiscals it has posted an average EPS of Rs. 0.64 and average RoNW of 25.33% on the paid up equity capital of Rs. 1.51 crore which is at Rs. 4.06 crore now. Issue is priced at a P/BV of 2.64. If we attribute latest earnings on fully diluted equity post issue, then asking price is at a P/E of around 61 plus. Thus pricing of the issue is very aggressive. As per prospectus details, NEL has no listed peers to compare with.
On merchant banker’s front, this is the 16th mandate from its stable. Out of last 10 listings, 5 opened at discount, 1 at par and 4 with 1 to 40% premiums.
Conclusion: Considering aggressive pricing there is no harm in giving this issue a miss.
Review By Dilip Davda on August 31, 2017
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. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. 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 their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About 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.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The initial public offer (IPO) of Nouritrans Exim Ltd offers an early investment opportunity in Nouritrans Exim Ltd. A stock market investor can buy Nouritrans Exim IPO shares by applying in IPO before Nouritrans Exim Ltd shares get listed at the stock exchanges. An investor could invest in Nouritrans Exim IPO for short term listing gain or a long term.
Read the Nouritrans Exim IPO recommendations by the leading analyst and leading stock brokers.
Nouritrans Exim IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Nouritrans Exim IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Nouritrans Exim IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Nouritrans Exim IPO.
The Nouritrans Exim IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Nouritrans Exim IPO allotment status to check.
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