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S S Infrastructure NSE SME IPO review (May apply)

Review By Dilip Davda on Mar 21, 2018

S S Infrastructure Development Consultants Ltd. (SSIDC) is engaged in the business of Engineering Consultancy and is an Integrated Infrastructure Development solution provider in India. Company provides Architectural Planning, Comprehensive Civil/Structural designs, Project Management Consultancy, Repairs and Rehabilitation, Quality Management Systems through well qualified teams and experienced promoters. SSIDC mainly participates in the tenders floated by the Government authorities, corporate establishments and other business entities. The pricing of its services is determined on the basis of construction, type of customization, equipment required and estimated duration within which it needs to be completed. It has executed large projects for organizations like Cyient Limited (formerly known as Infotech Enterprises Ltd.), Granules India Limited and Government Organizations.

To part finance renovation of existing offices and opening of new branch office, purchase of software and hardware, repayment of certain loans, working capital and general corpus fund needs, SSIDC is coming out with a maiden IPO of 4278000 equity shares of Rs. 10 each via book building route with a price band of Rs. 37 – Rs. 40 to mobilize Rs. 15.83 cr. to Rs. 17.11 cr. (Based on lower and upper price bands). Issue opens for subscription on 28.03.18 and will close on 05.04.18. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue constitutes 30.19% of the post issue paid up capital of the company. Having raised initial equity at par, it raised further equity at a price of Rs. 14541 per share. It has also issued bonus shares in the ratio of 800 for 1 in September 2017. Average cost of acquisition of shares by promoters is Rs. 0.01 per share. Post issue, its current paid up equity capital of Rs. 9.89 cr. will stand enhanced to Rs. 14.17 cr.

On performance front, SSIDC has posted revenue/net profits of Rs. 18.55 cr. / Rs. 2.63 cr. (FY14), Rs. 28.31 cr. / Rs. 3.83 cr. (FY15), Rs. 26.62 cr. / Rs. 3.42 cr. (FY16) and Rs.24.68 cr. / Rs. 3.80 cr. (FY17). Thus last three fiscals top line has shown declining trends. However, for the first half it has earned net profit of Rs. 2.80 cr. on revenue of Rs. 14.60 cr. indicating surge in top and bottom lines. As on 21.03.18 it has order book of Rs. 125 crore. Currently its revenue mix is Govt. v/s Private is 80:20 approx; which will transpire in 60:40 ratios going forward. For last three fiscals it has posted an average EPS of Rs.4.60 and an average RoNW of 23.99%. Issue is priced at a P/BV of 1.61 on the basis of its NAV of Rs. 24.80 as on 30.09.17. If we annualize latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 10 against industry average of 67. It has shown Mold Tek, ATV Proj and Artefact as its listed peers and are trading at a P/E of around 25, 0.35 and -8 (as on 21.03.18 on BSE). However, all these peers are not strictly comparable.

On merchant banker’s front, this is 65th mandate from its stable in last three fiscals. Out of last 10 listings, 1 opened at discount to offer price, 1 just Rs. 0.05 paise up on offer price, 7 with a premium ranging from 4% to 20% and 1 (main board issue) with a premium of 130% on the offer price on the day of listing.


Conclusion / Investment Strategy


Considering track records and reasonable pricing, investors may consider investment for long term.

Review By Dilip Davda on Mar 21, 2018

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

S.S. Infrastructure IPO FAQs

  1. 1. Why S.S. Infrastructure IPO?

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

  2. 2. How is S.S. Infrastructure IPO?

    Read the S.S. Infrastructure IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. S.S. Infrastructure IPO what should investors do?

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

  4. 4. Is S.S. Infrastructure IPO good?

    Our recommendation for S.S. Infrastructure IPO is to subscribe for long term.

  5. 5. Is S.S. Infrastructure IPO worth Investing?

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

  6. 6. When will S.S. Infrastructure IPO allotment status?

    The S.S. Infrastructure IPO allotment status will be available on or around Apr 10, 2018. The allotted shares will be credited in demat account by Apr 12, 2018. Visit S.S. Infrastructure IPO allotment status to check.

  7. 7. When will S.S. Infrastructure IPO list?

    The S.S. Infrastructure IPO will list on Thursday, April 12, 2018, at NSE SME.