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Supreme (India) Impex Ltd NSE Emerge IPO (May apply)

Review By Dilip Davda on Mar 13, 2015

Supreme (India) Impex Ltd (SIIL) is engaged in highly value added textile sector catering to the international market, and has successfully transformed into a textile exporter mainly comprising women‘s clothing. SIIL offers value-added work such as handwork, sequencing and embroidery on fabrics. The company recently diversified its presence into Multi Ply Yarn which is used in making home furnishing items like Carpets, terry towels, fashion fabrics and others. The company has secured LoP for Apparel & Garment manufacturing from GOI at its Apparel park unit.

To generate is working capital requirements, the company is issuing 13,12,000 equity share of Rs. 10 each at a fixed price of Rs. 60 per share to mobilize Rs. 7.87 crore. Issue opens for subscription on 16.03.15 and will close on 18.03.15. Minimum application is to be made for 2000 shares and in multiples of it thereon, thereafter. Issue is lead managed by Pantomath Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. This is the second NSE Emerge IPO from this merchant banker within a year. Post issue shares will be listed on NSE Emerge. During March 2007 to March 2014 it issued preferential equity to promoters at a price ranging from Rs. 75 per share to Rs. 125 per share. Post issue, its existing equity of Rs. 3.57 crore will stand enhanced to Rs. 4.89 crore.

On performance front, for the fiscals 2013-14 it has reported turnover of Rs. 342.65 crore with a net profit of Rs. 5.27 crore. For first half of current fiscal ended on 30.09.14, it has earned net profit of Rs. 2.70 crore on a turnover of Rs. 188.70 crore. If we annualized this earning then the EPS for 2014-15 will be around Rs. 11.04 on enhanced equity post this issue. Thus asking price is at a P/E of little over 5 and is thus priced reasonably.


Conclusion / Investment Strategy

Author has no plans to invest in this IPO. Being SME IPO, it has entry barriers hence HNI Investors can use their own discretion for investing in this IPO for long term, as any investment in stock market is attached to market risks.

Review By Dilip Davda on Mar 13, 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

Supreme India IPO FAQs

  1. 1. Why Supreme India IPO?

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

  2. 2. How is Supreme India IPO?

    Read the Supreme India IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Supreme India IPO what should investors do?

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

  4. 4. Is Supreme India IPO good?

    Our recommendation for Supreme India IPO is to subscribe for long term.

  5. 5. Is Supreme India IPO worth Investing?

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

  6. 6. When will Supreme India IPO allotment status?

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

  7. 7. When will Supreme India IPO list?

    The Supreme India IPO will list on Tuesday, March 31, 2015, at NSE SME.