VCU Data Management Ltd IPO Review (Avoid)

Review By Dilip Davda on Oct 1, 2013

After two at par SME IPOs in the beginning of week , we have yet another SME IPO that opens on 04.10.13. 

VCU Data is the owner and provider of Rights for one of the world's most unique Interactive Audio/Video Live Streaming hardware/software solutions for the masses at high quality and low bandwidth. The product was built to cater to the infrastructure of Countries worldwide. VCU Pack boasts unique video encoder, media server, decoder and 2G/3G/4G/wifi and bandwidth aggregation technology with over 6 years of research and development from 7 countries made HD video communication better even at low and fluctuating bandwidth. Our objectives are ambitious yet achievable and with our management team and the experience of our founders' core competencies we are certain to reach our targeted goals. It's business is currently within the 1 year start up phase of operations and serves a targeted population that consists of media houses, businesses, government bodies, law enforcement agencies & retail individuals.

To implement marketing activities, acquiring fixed assets, meeting working capital etc, the company is issuing 7500000 equity share of Rs. 10 each at a fixed price of Rs. 25 per share to mobilize Rs. 18.75 crore. Issue opens on 04.10.13 and will close on 08.10.13. Minimum application is to be made for 6000 shares and in multiples thereof, thereafter. Issue is solely lead managed by Networth Stockbroking Ltd. and Sharepro Services (India) Pvt. Ltd is the registrar to the issue. Post allotment of shares, it will be listed on BSE SME. The project is not appraised by any competent authorities. Current equity of Rs. 8.00 crore will rise to Rs. 15.50 crore post this issue. Promoters have just 3.06% stake in the current equity of Rs. 8 crore.

The company has yet to start its activities and hence its NAV before the issue stands at Rs. 9.73 with no earnings. For the first time, we marked odd reports in final prospectus that also has disclaimer that timely listing of the issue is not guaranteed. (Clause no. 4 on page 21 of the prospectus)

On merchant banker's front, no track record of past mandate is available.


Conclusion / Investment Strategy

Just Avoid. The company has yet to start its activities and hence its NAV before the issue stands at Rs. 9.73 with no earnings. On merchant bankers front, no track record of past mandate is available.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Oct 1, 2013

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

VCU Data Management IPO FAQs

  1. 1. Why VCU Data Management IPO?

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

  2. 2. How is VCU Data Management IPO?

    Read the VCU Data Management IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. VCU Data Management IPO what should investors do?

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

  4. 4. Is VCU Data Management IPO good?

    Our recommendation for VCU Data Management IPO is to avoid.

  5. 5. Is VCU Data Management IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the VCU Data Management IPO.

  6. 6. When will VCU Data Management IPO allotment status?

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

  7. 7. When will VCU Data Management IPO list?

    The VCU Data Management IPO will list on Wednesday, October 23, 2013, at BSE SME.

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