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Shiva Granito BSE SME IPO review (Avoid)

Review By Dilip Davda on Aug 19, 2016

Shiva Granito Export Ltd (SGEL) that started as importer and exporter of all kind of decorative stones, minerals, chemicals has now entered into manufacturing of the engineered quartz stone slabs, different grades of resins and quartz stone powder and manufacture & dealing of God & Goddess Statues/deities.
Company's manufacturing unit is equipped with laboratory, enabling the company in-house to develop new colours, besides facilitating conducting of tests and analysis of various products. At present it has manufacturing plant for engineered quartz stone slabs, different grade of resins, quartz powder and God & Goddess Statues/ Deities. It has also installed a resin manufacturing unit with the annual capacity of around 1900 MT of different grades like PET, General Purpose and Marble Grade etc. and a Quartz Slab Manufacturing Unit of annual capacity around 1.5 million sq. ft. for manufacturing quartz slab of different colours and sizes.

To meet its working capital requirements and raise general corpus fund, the company is coming out with a maiden IPO of 4200000 equity share of Rs. 10 each at a fixed price of Rs. 12 per share to mobilize Rs. 5.04 crore. Issue opens for subscription on 23.08.16 and will close on 29.08.16. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely managed by Pantomath Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue.

On performance front, the company has posted turnover and net profits of Rs. Rs. 2.58 cr. / (Rs. 0.18 cr.) (FY 14), Rs. 14.59 cr. / (Rs. 0.85 cr.) (FY 15) and Rs. 16.62 cr. / (Rs. 1.17 cr.) (FY 16). For the fiscal ended 31.03.16 the company’s accounts are on a broken periods for 31.12.15 and 31.3.16 because of its status as partnership firm till 31.12.15. Thus the company has been incurring losses for all these years. In March 2016 SGEL raised its paid up equity capital from Rs. 2.02 crore to Rs. 9.02 crore with a fresh issue of equity shares at a price of Rs. 12 per share. Post IPO its current paid up equity capital of Rs. 9.02 crore will stand enhanced to Rs. 13.22 crore. Due to carried forward losses, the valuations are in negative territory. Its NAV as on 31.03.16 is Rs. 9.02 per share. It has no listed peer to compare with.

On merchant banker’s front, this is the 22nd mandate from its stable and out of 21 IPOs handled before this has shown mixed trends.

Conclusion: Promoters have taken major chunk at the same price expressing their confidence for future prospects. Current performance does not match the asking price. However, cash surplus risk savvy investors may consider it for long term investment; other may give it a miss.


Conclusion / Investment Strategy

Promoters have taken major chunk at the same price expressing their confidence for future prospects. Current performance does not match the asking price. However, cash surplus risk savvy investors may consider it for long term investment; other may give it a miss.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Aug 19, 2016

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

Shiva Granito IPO FAQs

  1. 1. Why Shiva Granito IPO?

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

  2. 2. How is Shiva Granito IPO?

    Read the Shiva Granito IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Shiva Granito IPO what should investors do?

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

  4. 4. Is Shiva Granito IPO good?

    Our recommendation for Shiva Granito IPO is to avoid.

  5. 5. Is Shiva Granito IPO worth Investing?

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

  6. 6. When will Shiva Granito IPO allotment status?

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

  7. 7. When will Shiva Granito IPO list?

    The Shiva Granito IPO will list on Tuesday, September 6, 2016, at BSE SME.