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Swajas Air Charters Ltd IPO Review (Avoid)

Review By Dilip Davda on Sep 24, 2011

Swajas Air Charters Ltd.: A small size non-scheduled airline operator Swaja Air Charters Ltd. is currently engaged in general Air-Charter Services, Offshore Transportation and Logistics, Charter Tourism, Medical Evacuation Services and aviation related operation and maintenance services. It has a fleet of fix-wing aircrafts and helicopters that offers services within and outside India. The company has esteemed clients like L & T, Videocon Ind., Govt. of Orissa, Nimbus Communications, Suzlon Energy, Apollo Hospital group, Balco (PSU), Hardy Exploration etc.

Now company is planning to expand its fleet, setting up of MRO/Hanger and Office Building and to raise general corpus fund. To part finance this, the company proposes to offer (*) equity share of Rs. 10 each within a price band of Rs. 90-100 via book-building process. The issue is opening on 26.09.11 and closes on 28.09.11. Application is to be made for minimum of 60 shares and in multiples thereof. Aryaman Financial Services Ltd. is the BRLM for this issue while Cameo Corporate Services Ltd. is the registrar to the issue. Share will be listed on BSE and NSE. ICRA has assigned IPO Grade 2 to this issue indicating at Below Average Fundamentals of the company.

As far as BRLM is concerned, it brought one IPO in the past that failed to gave any return to investors on the debut day. Net profit of Rs. 1.34 crore on a turnover of Rs. 32.63 crore for the year 2010-11 makes this offer expensive one as it translates into a P/E of 100 plus (on lower price band) on expanded equity post issue. Even P/BV at 4.5 also looks very high.


Conclusion / Investment Strategy

Avoid. Net profit of Rs. 1.34 crore on a turnover of Rs. 32.63 crore for the year 2010-11 makes this offer expensive one as it translates into a P/E of 100 plus.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Sep 24, 2011

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. Any reader taking decisions based on any information published here does so entirely at its own risk. Investors should bear in mind that any investment in stock markets is subject to unpredictable market-related risks. The above information is based on RHP and other documents available as of date coupled with market perception. The author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda, a freelance journalist

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

Swajas Air IPO FAQs

  1. 1. Why Swajas Air IPO?

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

  2. 2. How is Swajas Air IPO?

    Read the Swajas Air IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Swajas Air IPO what should investors do?

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

  4. 4. Is Swajas Air IPO good?

    Our recommendation for Swajas Air IPO is to avoid.

  5. 5. Is Swajas Air IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Swajas Air IPO.

  6. 6. When will Swajas Air IPO allotment status?

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

  7. 7. When will Swajas Air IPO list?

    The Swajas Air IPO list date is not yet available. The Swajas Air IPO is planned to list on [.], at BSE, NSE.
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