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Super Fine Knitters BSE SME IPO review (Apply)

Review By Dilip Davda on Jan 13, 2017

Super Fine Knitters Ltd (SFKL) is a multi-divisional textile unit engage in the business of manufacturing knitted apparels for itself as well as for national and international brands and is a well-known supplier of knitted fabrics for large companies in India involved in manufacturing and exporting knitted apparels. The Company started as a fabric knitting unit and is now a well-known supplier of knitted fabrics and apparels to national and international brands. Its range of apparels covers all the age groups and segments such as for men’s wear, women’s wear, kids’ wear, boys & girls wear. SFKL uses variety of knitted fabrics such as 100% cotton to cotton lycra, 100% polyester, blended (cotton and polyester), mercerized to plain, washed to over dyed and other blended fabrics in the production of apparels. It sells all its products under the ‘Super Star’ brand.

To repay in full/part Company’s debt, it is coming out with a maiden IPO of 3400000 equity share of Rs. 10 each at a fixed price of Rs. 12 per share to mobilize Rs. 4.08 crore. Issue opens for subscription on 18.01.17 and will close on 24.01.17. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME platform. Issue is solely managed by Guiness Corporate Advisors Pvt Ltd and Cameo Corporate Services Ltd is the registrar to the issue. While most of the equity is issued at par, it also issued some equity at a price of Rs. 19 per share in 2013 and at a price of Rs. 20 in 2014. Post issue its current paid up equity capital of Rs. 8.99 crore will stand enhanced to Rs. 12.39 crore.

On performance front, company’s turnover and net profits for the Fiscal ended March 31, 2014, 2015, 2016 and for the six months period ended September 30, 2016 was Rs. 7,1.15 cr. / Rs. 0.49 cr., Rs. 7,6.27 cr. Rs. 0.54 cr., Rs. 84.91 cr. / Rs. 0.64 cr. and Rs. 43.58 cr. / Rs. 0.52 cr. respectively. If we annualize latest earnings and attribute to the fully diluted equity post IPO then asking price is at a P/E of around 14 plus against industry’s composite P/E of 27 that augurs well.

On merchant banker’s front, this is the 26th mandate from its stable and past issues have shown erratic movements post listing and 4 IPOs out of them suspended from trades. The suspension on these four company later on  revoked.

Conclusion: Issue appears to have been priced reasonably. Risk savvy cash surplus investors may consider medium to long term investment.


Conclusion / Investment Strategy

Issue appears to have been priced reasonably. Risk savvy cash surplus investors may consider medium to long term investment.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Jan 13, 2017

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

Super Fine Knitters IPO FAQs

  1. 1. Why Super Fine Knitters IPO?

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

  2. 2. How is Super Fine Knitters IPO?

    Read the Super Fine Knitters IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Super Fine Knitters IPO what should investors do?

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

  4. 4. Is Super Fine Knitters IPO good?

    Our recommendation for Super Fine Knitters IPO is to subscribe.

  5. 5. Is Super Fine Knitters IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Super Fine Knitters IPO.

  6. 6. When will Super Fine Knitters IPO allotment status?

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

  7. 7. When will Super Fine Knitters IPO list?

    The Super Fine Knitters IPO will list on Thursday, February 2, 2017, at BSE SME.