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Review By Dilip Davda on Feb 2, 2016
Vidli Restaurant Ltd. (VRL) is a 'Kamats' group company running chains of restaurants serving hygienic standardize food items in a quick serve format at various outlets on national highways, state highways and cities. As on December 31, 2015 it had 39 restaurants in western and central territories on major highways. The group is known for its brands 'Vithal Kamat' and' Kamats'. The company has entered into Master Franchisee agreement in last August with MNM group for a period of 5 years wherein the said group would have exclusive rights to give franchisee in Gujarat region.
To part finance establishments of new food joints and meeting general corpus funds needs, the company is coming out with a maiden IPO of 1310000 equity share of Rs. 10 each at par to mobilize Rs 1.31 crore. Issue opens for subscription on 03.02.16 and will close on 05.02.16. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is lead managed by Pantomath Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Post this issue, its present paid up equity capital of Rs. 3.02 crore will rise to Rs. 4.33 crore.
On performance front, while all group companies have been incurring losses, this company has clocked in a turnover and net profit of Rs. 0.48 cr/Rs. 0.04 cr. (FY14), Rs. 2.59 cr./Rs. 0.07 cr (FY15). For first six months ended 30.09.15 it has posted net profit of Rs. 0.25 cr. on a turnover of Rs. 1.93 cr. If we annualize these earnings and attribute it on fully diluted equity post IPO then this at par issue is at a P/E of 11.
This is the 15th IPO from Pantomath and its past mandates have mixed trends.
This being at par issue in hotel chain segment, risks aver investors may consider parking of their surplus funds for long term.
Review By Dilip Davda on Feb 2, 2016
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 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
The initial public offer (IPO) of Vidli Restaurants Ltd offers an early investment opportunity in Vidli Restaurants Ltd. A stock market investor can buy Vidli Restaurants IPO shares by applying in IPO before Vidli Restaurants Ltd shares get listed at the stock exchanges. An investor could invest in Vidli Restaurants IPO for short term listing gain or a long term.
Read the Vidli Restaurants IPO recommendations by the leading analyst and leading stock brokers.
Vidli Restaurants IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Vidli Restaurants IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Vidli Restaurants IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Vidli Restaurants IPO.
The Vidli Restaurants IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Vidli Restaurants IPO allotment status to check.
