Oyeeee Media BSE SME IPO review (Avoid)

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Review By Dilip Davda on Aug 11, 2015

OYEEEE MEDIA LTD is an in-house production division which focuses dedicatedly on development and production of reality show, docusoap & docudramas. It is engaged in providing the most comprehensive range of solutions for corporate as well as private event management and media production needs. OML plan and stage events at national and international levels to suit clients specific needs. Oyeeee Media is one-stop-shop for all event management and media production requirements for the desiring clients’.

To part finance production of TV serials, production of film and meeting corpus fund requirements, the company is coming out with a maiden IPO of 3975000 equity share of Rs. 10 each at a fixed price of Rs. 40 per share to mobilize Rs. 15.90 crore. Issue opens for subscription on 13.08.15 and will close on 19.08.15. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Issue is solely managed by First Overseas Capital Ltd and registrar to the issue is Sharepro Services (India) Pvt Ltd. Post allotment, shares will be listed on BSE SME. Post IPO its paid up equity of Rs. 10.84 crore will stand enhanced to Rs. 14.81 crore. It has issued initial equity at par on incorporation and then at a price of Rs. 100 per share in March 2011. Thereafter it issued bonus shares in the ratio of 8 for 1 and thereafter issued fresh equity at par to reach at current equity level of Rs. 10.84 crore as on 31.03.15.

On performance front, the company has posted average EPS of Rs. 0.31 for last three fiscals (as per draft prospectus). In fact after negligible income for previous two fiscals, for the fiscal 2014-15 it had posted turnover of Rs. 1.04 crore with a net profit of Rs. 0.28 crore translating into EPS of Rs. 0.26 that will turn Rs. 0.19 on fully diluted equity of Rs. 14.81 crore post IPO. Thus asking price is at an exorbitant P/E of 210 that is very high compared to industry composite P/E of 26.

Its sole merchant banker has poor track record.

Conclusion / Investment Strategy

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 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

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