Review By on September 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.
Review By on September 24, 2011
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
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 Charters 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 Charters IPO for short term listing gain or a long term.
Read the Swajas Air Charters IPO recommendations by the leading analyst and leading stock brokers.
Swajas Air Charters IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Swajas Air Charters IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Swajas Air Charters IPO?"
Our recommendation for Swajas Air Charters IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Swajas Air Charters IPO.
The Swajas Air Charters IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Swajas Air Charters IPO allotment status to check.
