SSPN Finance SME IPO Review (Apply at your own risk)

Review By Dilip Davda on Mar 7, 2015

SSPN is a financial services Company, offering the corporate and financial advisory services. These services encompass Project Advisory, Loan Syndication, Mergers & Acquisitions and Private Equity. The company provides integrated solutions to our clients which includes managing crucial aspects like corporate finance, working capital finance, project finance and financial restructuring to corporate. The Corporate Advisory services clients ranging from medium-sized corporate, SMEs and family managed businesses. At a time, when India is throwing up investment avenues in new sectors and projects, there is a critical need to provide specialised advisory services to the Indian Corporate Sector in their efforts towards growth. It offers diversified financial advisory services, innovative ideas and unparalleled execution to its client base across all stages of the business cycle. The company is also engaged in making investment in the form of Debt & Equity in various companies in its known circle and through proper reference checks.

To arrange its long term working capital needs, the company is coming out with public issue of 750000 equity share of Rs. 10 each at a fixed price of Rs. 20 per share to mobilize Rs. 1.50 crore. Minimum application is to be made for 6000 shares and in multiples thereon, thereafter. Issue opens for subscription on 10.03.15 and will close on 12.03.15. Its present equity capital of Rs. 1.14 crore will rise to Rs. 1.89 crore post this issue. Issue is solely lead managed by First Overseas Capital Ltd. and Bigshare Services Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE SME.

As per draft prospectus, for last two and half years it has posted an average EPS of Rs. 0.62. For six months ended 30.09.14 it has posted net profit of Rs. 0.06 crore on a total income of Rs. 0.27 crore. This translates into an EPS of 0.63 on annualized basis on expanded equity post IPO and thus the asking price of the issue is at 31 plus P/E.

Merchant banker has poor track record.


Conclusion / Investment Strategy

This SME offer is with entry barriers and the low preference for SME IPOs by the broking community at large. However, investors with surplus funds may invest at their own discretion for long term, bearing in mind that stock market investments are linked to market risks. The author has no plans to invest in this IPO.

Review By Dilip Davda on Mar 7, 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

SSPN Finance IPO FAQs

  1. 1. Why SSPN Finance IPO?

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

  2. 2. How is SSPN Finance IPO?

    Read the SSPN Finance IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. SSPN Finance IPO what should investors do?

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

  4. 4. Is SSPN Finance IPO good?

    Sorry, we didn't rate the SSPN Finance IPO.

  5. 5. Is SSPN Finance IPO worth Investing?

    Our lead analyst Mr. Dilip Davda didn't rate the SSPN Finance IPO.

  6. 6. When will SSPN Finance IPO allotment status?

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

  7. 7. When will SSPN Finance IPO list?

    The SSPN Finance IPO will list on Monday, March 16, 2015, at BSE SME.








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