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Share India BSE SME IPO review (Apply)

Review By Dilip Davda on Sep 18, 2017

Share India Securities Ltd. (SISL) is currently engaged in the business of equity broking, investing and trading activities. Along with this the company is also providing the services as a Depository Participant, Research Analyst, Mutual Fund Advisor/Distributor and also an application has been filed with Securities and Exchange Board of India for the registration of Company as a Portfolio Manager. SISL got registered with SEBI as Stock Broker (Member of BSE) in the year 2000 and started the Stock Brokering operations. Later during the year 2007-08 it got registered as a trading and clearing member of Bombay Stock Exchange (BSE). Post the merger of the company it got registered with SEBI as Stock Broker, Trading and Clearing Member of National Stock Exchange of India (NSE) in the year 2012. With the introduction of the Future and option segment into the Indian capital market the company became Member under future & Option (F&O) Segment also. Currently, The Company is providing broking services in Equity, Currency derivative and Future & Options segment of National Stock Exchange of India Limited and BSE Limited

To part finance its working capital, sales and marketing plans, branch/distribution centre expansions and general corpus fund needs, SISL is coming out with a maiden IPO of 6432000 equity share of Rs. 10 each at a fixed price of Rs. 41 per share to mobilize Rs. 26.37 crore. Issue comprises fresh equity issue of 5932000 shares and offer for sale of 500000 shares. Issue opens for subscription on 21.09.17 and will close on 26.09.17. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely lead managed by Hem Securities Ltd. and Bigshare Services Pvt. Ltd. is the registrar to the issue. Issue constitutes 26.33% of fully diluted post issue paid up equity capital of the company. From incorporation till June 2010 it issued equities at par. Thereafter, it raised further equity at a fixed price of Rs. 33 per share in January and September 2015. It has also issued bonus shares in the ratio of 3 for 1 in July 2017. Post issue its current paid up equity capital of Rs. 18.49 crore will stand enhanced to Rs. 24.42 crore.

On performance front, SISL has (on a consolidated basis) posted total income/net profits of Rs. 73.99 cr. / Rs. 6.28 cr. (FY16) and Rs. 110.09 cr. / Rs. 8.03 cr. (FY17). Thus it has shown growth in top and bottom lines. For last two fiscals it has posted an average EPS of Rs. 4.04 on an equity base of Rs. 4.62 crore. It has reported average RoNW of 24.33% for past two years. Issue is priced at a P/BV of 2.27. If we attribute latest earnings on fully diluted equity post issue, then asking price is at a P/E of 12 plus against peers trading at a P/E of 34 to 74. Thus issue appears having priced at reasonable levels.

On merchant banker’s front, this is the 39th mandate from its stable in last three years. Out of last 10 recent listings, 1 issue opened at discount, 2 at a premium of 2.5 to 5% and the rest with 20% premium to offer price on the day of listing.

Conclusion: Company’s future prospects hinges with the behaviors of the stock markets. Investment may be considered for medium to long term.


Conclusion / Investment Strategy

Company’s future prospects hinges with the behaviors of the stock markets. Investment may be considered for medium to long term.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Sep 18, 2017

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

Share India Securities IPO FAQs

  1. 1. Why Share India Securities IPO?

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

  2. 2. How is Share India Securities IPO?

    Read the Share India Securities IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Share India Securities IPO what should investors do?

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

  4. 4. Is Share India Securities IPO good?

    Our recommendation for Share India Securities IPO is to subscribe.

  5. 5. Is Share India Securities IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Share India Securities IPO.

  6. 6. When will Share India Securities IPO allotment status?

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

  7. 7. When will Share India Securities IPO list?

    The Share India Securities IPO will list on Thursday, October 5, 2017, at BSE SME.