Shaival Reality NSE SME IPO review (Avoid)

Review By Dilip Davda on Sep 12, 2015

Shaival Reality Ltd (SRL) an Ahmedabad based company is engaged in the business of providing logistics services viz. goods transport and moving etc. It is also engaged in construction business, in which it takes Government and private tender for constructing precast housing projects. The goods transportation is generally carried out using road, railway and air as the mode of transport. SRL carry out goods transport with roadways as the mode of transport.  It is providing logistic services for transportation of bulk LPG & Ammonia. The company has young and well maintained fleets for transportation services basically for bulk LPG & Ammonia with the motive to provide on time delivery of goods to the customer while maintaining the government norms, road safety rules and regulations.

To meet its working capital requirements, the company is coming out with a maiden IPO of 528000 equity share of Rs. 10 each at a fixed price of Rs. 100 per share to mobilize Rs. 5.28 crore. Issue opens for subscription on 15.09.15 and will close on 18.09.15. Minimum application is to be made for 1200 shares and in multiples thereon, thereafter. Issue is managed by Sarthi Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on NSE SME.

On performance front, the company has posted an average negative EPS of Rs. 13.04 and negative RONW of 18.07% for last three fiscals. For the FY 15 it has reported net loss of Rs. 2.57 crore on a turnover of Rs. 17.22 crore. After initial subscription to equity at par in the year 2000, it issued bonus shares in the ratio of 4 for 1 in 2006 and then issued fresh equity of 4 lakh shares at a price of Rs. 100 per share in 2007 and 2008. Its current equity capital of Rs. 1.40 crore will stand enhanced to Rs. 1.93 crore post IPO.

On merchant banker’s front, this is the 11th SME IPO and earlier mandates have given average returns.


Conclusion / Investment Strategy

Considering negative earnings and RONW for last three fiscals with rising trends in bottomline, issue is exorbitantly priced. Hence investors may give it a miss.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Sep 12, 2015

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

Shaival Reality IPO FAQs

  1. 1. Why Shaival Reality IPO?

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

  2. 2. How is Shaival Reality IPO?

    Read the Shaival Reality IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Shaival Reality IPO what should investors do?

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

  4. 4. Is Shaival Reality IPO good?

    Our recommendation for Shaival Reality IPO is to avoid.

  5. 5. Is Shaival Reality IPO worth Investing?

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

  6. 6. When will Shaival Reality IPO allotment status?

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

  7. 7. When will Shaival Reality IPO list?

    The Shaival Reality IPO will list on Thursday, October 1, 2015, at NSE SME.








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