Vibrant Global Capital Limited IPO Review (Avoid)

Review By Dilip Davda on Sep 27, 2014

Vibrant Global Capital Ltd (VGCL) is a non-deposit accepting NBFC registered with RBI and is primarily engaged in investment and trading in listed/unlisted securities and financial products, providing long and short term loans and advances. All its operations are distributed among its various subsidiaries.

To part finance its increase in operational scale and repayment of part loan along with needs of corporate funds, the company is coming out with an IPO of 6042000 equity share of Rs. 10 each (including offer for sale of 3042000 equity shares by existing stakeholders) at a fixed price of Rs. 19 per share to mobilize Rs. 11.48 crore. Issue opens for subscription on 29.09.14 and will close on 07.10.14. Minimum application is to be made for 6000 shares and in multiples thereon, thereafter. Issue is lead managed by Hem Securities Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Post issue, shares will be listed on BSE SME. Its existing equity of Rs. 19.91 crore will rise to Rs. 22.91 crore post IPO. On standalone basis, the company is incurring losses.

On performance front, for last two fiscals it has earned total income of Rs. 161.15 crore (2012-13) and Rs. 209.90 crore (2013-14) with a loss of Rs. 1.69 crore and net profit of Rs. 1.77 crore. As on 31.3.14 it still has carried forward loss of Rs. 3.23 crore. As on 31.3.14 its paid up equity capital was Rs. 11.17 crore. The company issued all its equity for cash at par till 2009 to reach Rs. 2.45 crore and in 2011 it issued fresh equity worth Rs. 17.46 crore for Rs. 1.15 crore as cost of amalgamation. If we attribute the latest earnings on fully diluted equity post IPO then the asking price is at a P/E of 25.

On merchant banker’s front, this is 9th mandate and past mandates have mixed trends.


Conclusion / Investment Strategy

Avoid this costly bet that also has entry barrier on application as well as on trading post listing.

(Disclaimer: Author has no plans to invest in this IPO)

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Sep 27, 2014

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

Vibrant Global IPO FAQs

  1. 1. Why Vibrant Global IPO?

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

  2. 2. How is Vibrant Global IPO?

    Read the Vibrant Global IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Vibrant Global IPO what should investors do?

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

  4. 4. Is Vibrant Global IPO good?

    Our recommendation for Vibrant Global IPO is to avoid.

  5. 5. Is Vibrant Global IPO worth Investing?

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

  6. 6. When will Vibrant Global IPO allotment status?

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

  7. 7. When will Vibrant Global IPO list?

    The Vibrant Global IPO will list on Tuesday, October 21, 2014, at BSE SME.








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