Sysco Ind BSE SME IPO review (Subscribe)

Review By Dilip Davda on Mar 30, 2016

Sysco Industries Ltd (SIL) that started manufacturing of films and yarns at the primary stage is now in printed laminates for flexible packaging segment. Thus it having two segments, textile industry and packaging industry.  SIL products are marketed under the branch “Sysco”.  It caters to the needs of Textile, FMCG, Pharmaceuticals and Food Sector.

To part finance its working capital and general corpus fund needs, SIL is coming out with a maiden IPO of 2170000 equity share of Rs. 10 each at par to mobilize Rs. 2.17 crore. Issue opens for subscription on 31.03.16 and will close on 05.04.16. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Issue is solely managed by Pantomath Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE SME. After initial issue at par, it issued shares at a price of Rs. 50 per share during January 2011 to March 2015 and also issued bonus shares in the ratio of 1 share for every 2 shares held in December 2015. Its current paid up equity capital of Rs. 5.78 crore will stand enhanced to Rs. 7.95 crore post IPO.

On performance front, it has posted an average EPS of Rs. 3.54 for last three fiscals. Its turnover/net profits were Rs. Rs. 45.99 cr. / Rs. 0.95 cr. (FY13), Rs. 43.72 cr. /Rs. 1.04 cr. (FY14) and Rs. 76.10 cr. / Rs. 2.52 cr. (FY15). For first six months ended 30.09.15 it has posted net profit of Rs. 1.84 crore on a turnover of Rs. 49.03 crore. If we annualize these earnings and attribute to fully diluted equity post IPO then EPS comes to Rs. 4.63 thus asking price is at a P/E of around 2.

On merchant banker’s front, this is the 18th IPO and its earlier 15 mandates that have been listed have shown mixed trends.

Conclusion: This being at par issue from profit making company in textile and flexible packaging, investment may be considered for short to long term rewards.


Conclusion / Investment Strategy

This being at par issue from profit making company in textile and flexible packaging, investment may be considered for short to long term rewards.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Mar 30, 2016

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

Sysco IPO FAQs

  1. 1. Why Sysco IPO?

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

  2. 2. How is Sysco IPO?

    Read the Sysco IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Sysco IPO what should investors do?

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

  4. 4. Is Sysco IPO good?

    Our recommendation for Sysco IPO is to subscribe.

  5. 5. Is Sysco IPO worth Investing?

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

  6. 6. When will Sysco IPO allotment status?

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

  7. 7. When will Sysco IPO list?

    The Sysco IPO will list on Wednesday, April 13, 2016, at BSE SME.

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