Oceanaa Biotek Industries Ltd IPO Review (Avoid)

Review By Dilip Davda on Mar 16, 2014

Oceanaa Biotek belongs to Oceanic group and was primarily engaged in trading of building materials and related activities. In 2013 it took over a partnership firm that was engaged in pre-printed press materials. Now the company focusing on producing Tiger Shrimp seeds, Aqua Shrimp hatchery, Aqua Shrimp farming, Marine and Vegetable processing, Aseptic canning and bottling, information technology etc. To support all these activities it is planning set up of a food testing analysis lab and raise general corpus fund. To finance this, the company Is issuing 2100000 equity share of Rs.10 each at par. The issue opens for subscription on 18.03.14 and will close on 20.03.14. The issue is lead managed by VB Desai Financial Services Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Shares will be listed on BSE SME post allotment. Minimum application is to be made for 10000 shares and in multiples thereof, thereafter. Current equity capital of Rs. 3.12 crore will rise to Rs. 5.22 crore post this issue.

On performance front, OBIL posted (- Rs. 3.06) EPS for previous three fiscals. For the first half of current fiscal, it has posted net profit of Rs. 0.19 crore on a turnover of Rs. 0.64 crore giving an annualized EPS of Rs. 1.20 on present equity of Rs. 3.12 crore and if we attribute this earnings on enhanced equity then EPS comes to Rs. 0.73. Based on this and its existing NAV of Rs. 9.95, the issue is being made at a P/E of 13+ and at 1 P/BV.

On Merchant Banker’s front, in mid eighties and nineties, it was very aggressive, and most of its mandate fared poorly post listing. It is now once again throwing its hat in the wing for SME IPOs.


Conclusion / Investment Strategy

Avoid this at par offer as it has poor fundamentals and also entry barrier.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Mar 16, 2014

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

OBIL IPO FAQs

  1. 1. Why OBIL IPO?

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

  2. 2. How is OBIL IPO?

    Read the OBIL IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. OBIL IPO what should investors do?

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

  4. 4. Is OBIL IPO good?

    Our recommendation for OBIL IPO is to avoid.

  5. 5. Is OBIL IPO worth Investing?

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

  6. 6. When will OBIL IPO allotment status?

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

  7. 7. When will OBIL IPO list?

    The OBIL IPO will list on Thursday, April 3, 2014, at BSE SME.








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