RCL Retail Limited IPO Review (Subscribe)

Review By Dilip Davda on Sep 24, 2012

RCL Retail Limited is promoted by Lodha group, the first generation entrepreneur.  The company is engaged in the business of trading of ready to eat snacks, fryums, bakery products, cookies, confectioneries, namkeens, chutneys, mouth-fresheners, juices, mobile food such as vada pav etc. Currently it operates through its two well furnished retail stores located in Chennai.

The company is now planning to set up a processing unit with the facility of processing food grains, pulses and retailing under brand name of RCL. It is also planning to expand its presence geographically by adding eight (8) retail stores in and around Chennai. At present RCL has presence in southern part of India and they are also planning to expand their business in Rajasthan, Gujarat and North India. To part finance above programme and also to strengthen its supply chain management and raising corpus fund, the company is offering 5795000 equity share of Rs. 10 each at par. The issue opens for subscription on 27.09.12 and will close on 01.10.12. Minimum application is to be made for 10000 shares. With this float company plans to raise Rs. 5.80 crore. Post issue shares will be listed on BSE-SME platform.

As the company was established only during 2010, during its first partial fiscal, it posted a turnover of Rs. 0.91 crore with a net profit of Rs. 0.02 crore. In its first full year ended 31.03.2012 it posted net profit of Rs. 0.07 crore on a turnover of Rs. 6.67 crore. The management hopes to improve top and bottom line post proposed expansion.


Conclusion / Investment Strategy

Guiness Merchant Bankers Pvt. Ltd. is the sole manager to this IPO and Cameo Corporate Services Ltd. is the registrar to the issue. There are no track records of Merchant Banker as this is their first mandate.

Since the issue is at par and considering the recent development of relaxing FDI in Retail sector, this issue is likely to generate good interest. HNIs can park moderate fund for long term rewards as post issue the paid up capital will get enhanced from Rs. 6.51 crore to Rs. 12.30 crore.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Sep 24, 2012

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

RCL Retail IPO FAQs

  1. 1. Why RCL Retail IPO?

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

  2. 2. How is RCL Retail IPO?

    Read the RCL Retail IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. RCL Retail IPO what should investors do?

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

  4. 4. Is RCL Retail IPO good?

    Our recommendation for RCL Retail IPO is to subscribe.

  5. 5. Is RCL Retail IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the RCL Retail IPO.

  6. 6. When will RCL Retail IPO allotment status?

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

  7. 7. When will RCL Retail IPO list?

    The RCL Retail IPO will list on Tuesday, October 16, 2012, at BSE SME.








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