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Shareway Securities BSE SME IPO Review (May apply)

Review By Dilip Davda on Mar 18, 2015

Shareway Securities Ltd is in the business of brokerage and providing products and services to all kind of investors. To meet its funds requirements for obtaining membership of BSE, expansion of its network, margin money needs and other corpus funds, the company is coming with an IPO of 3570000 equity share of Rs. 10 each at a fixed price of Rs. 14 per share to mobilize Rs. 5 crore. The issue opens for subscription on 24.03.15 and will close on 31.03.15. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Post allotment the shares will be listed on BSE SME. Issue is managed by Guiness Corporate Advisors Pvt Ltd and Cameo Corporate Services Ltd is the registrar to the issue.

On performance front, the company has posted an average negative EPS of Rs.0.46 for last three fiscals. For the year 2013-14 it posted net profit of Rs. 0.08 crore on a total income of Rs. 0.64 crore. For first six months ended 30.09.14 it has posted loss of Rs. 0.002 crore on a total income of Rs.0.18 crore. As on 30th September 2014 it had equity capital of Rs. 6 crore and carried forward loss of Rs. 2.15 crore. Its paid up capital will rise to Rs. 9.57 crore post this issue.

As the company’s asking price is with a negative P/E and it still has carried forward losses, it is not likely to reward stakeholders for next two years or so. Thus the issue is highly priced against its fundamentals.

Its merchant banker has been named as magician of SME IPOs as its earlier mandates have shown extra ordinary movements post listing and this may lure investors for this IPO. This is sixteenth IPO coming to market from their stable.

 


Conclusion / Investment Strategy

This is a high risk, low return IPO and there is no harm giving it a miss.

Review By Dilip Davda on Mar 18, 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

Shareway Securities IPO FAQs

  1. 1. Why Shareway Securities IPO?

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

  2. 2. How is Shareway Securities IPO?

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

  3. 3. Shareway Securities IPO what should investors do?

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

  4. 4. Is Shareway Securities IPO good?

    Our recommendation for Shareway Securities IPO is to subscribe for long term.

  5. 5. Is Shareway Securities IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Shareway Securities IPO.

  6. 6. When will Shareway Securities IPO allotment status?

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

  7. 7. When will Shareway Securities IPO list?

    The Shareway Securities IPO list date is not yet available. The Shareway Securities IPO is planned to list on [.], at BSE SME.