Sunstar Realty Development Ltd IPO Review (Avoid)

Review By Dilip Davda on Feb 15, 2013

Sunstar Realty Development Limited (SRDL) is an integrated real estate company engaged in the development of residential, commercial, retail and other projects. It is also in the trading of residential and commercial units. Currently it is having two Projects at Gujarat and has entered in to an agreement with Triveni Infratech Pvt. Ltd. to acquire 2.51Acres of land at district Hooghly of West Bengal. Its own 10.82 Acres of land and intends to develop in the ner term. Currently it has order worth Rs. 2061.34 Lacs. To part finance its ongoing projects with brand building the company plans to raise Rs. 10.62 crore from the market via public issue of 5310000 equity share of Rs. 10 each at a price of Rs. 20 per share. Issue opens for subscription on 18.02.13 and will close on 21.02.13. Minimum application is to be made for 6000 shares and in multiples thereof thereafter. Post allotment, shares will be listed on BSE SME platform. Issue is lead managed by Guiness Corporate Advisors Pvt. Ltd. and Sharepro Services (India) Pvt. Ltd is the registrar to the issue.

As far as SRDL's performance is concerned, it has made a profit of Rs. 0.06 crore on a turnover of Rs. 0.34 crore for fiscal 2011-12 and net profit of Rs. 0.14 crore on a turnover of Rs. 2.25 crore for six months ended 30.09.2012. Based on this it's asking price of Rs. 20 is at a P/E of 143 on fully diluted equity with trends of present earnings. As far as BRLM's performance is concerned, it has managed 3 SME IPOs so far out of which 2 IPOs gave negative returns on debut day.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Feb 15, 2013

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

Sunstar Realty Development IPO FAQs

  1. 1. Why Sunstar Realty Development IPO?

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

  2. 2. How is Sunstar Realty Development IPO?

    Read the Sunstar Realty Development IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Sunstar Realty Development IPO what should investors do?

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

  4. 4. Is Sunstar Realty Development IPO good?

    Our recommendation for Sunstar Realty Development IPO is to avoid.

  5. 5. Is Sunstar Realty Development IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Sunstar Realty Development IPO.

  6. 6. When will Sunstar Realty Development IPO allotment status?

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

  7. 7. When will Sunstar Realty Development IPO list?

    The Sunstar Realty Development IPO will list on Monday, March 11, 2013, at BSE SME.
More Sunstar Realty Development IPO Views / Analysis / Recommendations ...








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