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VMV Holidays BSE SME IPO review (May apply)

Review By Dilip Davda on Jun 26, 2015

VMV Holidays (VMVH) is engaged in the business of tours and travels and provides the entire gamut of activities associated with holidays like ticketing, local travel arrangement, hotel bookings, Adventure tours, etc. under a single roof to its clients. It also provides the most suited holidays/trips to its clients, which are customized to meet their requirements. VMVH’s services and products include Inbound and Outbound Travel and Tours Services, Domestic tour arrangements, bookings of Air tickets and hotels for domestic/international travels and also Rent a Car facility.

To part finance setting up of office in Mumbai, expansion of online services and brand building excercise the company is coming out with an IPO of 1560000 equity share of Rs. 10 each at par t to mobilize Rs. 1.56 crore. Issue opens for subscription on 29.06.15 and will close on 01.07.15. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter.  Post issue shares will be listed on BSE SME. Issue is lead managed by Guiness Corporate Advisors Pvt Ltd. Sharepro Services India Pvt Ltd is the registrar to the issue. Its current equity of Rs. 4.02 crore will stand enhanced to Rs. 5.58 crorse post this IPO.

On performance front, for last three fiscals it has posted turnover/net profit of Rs. 0.62 crore/Rs. 0.004 crore (FY 2012), Rs. 1.46 croare/Rs. 0.006 crore (FY 2013) and Rs. 1.79 crore with a loss of Rs. 0.008 crore. For first nine months ended 31.12.14 it has earned net profit of Rs. 0.03 crore on a turnover of Rs. 2.28 crore. In February 2014 it issued bonus shares in the ratio of 0.7 shares for every 1 share held and then issued preferential equity at par to reach Rs. 4.02 crore paid up equity. Merchant banker has erratic performances for its past mandates. This is 16th IPO from its stable.


Conclusion / Investment Strategy

Based on latest earnings, if we annualized and attribute it to fully diluted equity post IPO, then asking price is at 140 plus P/E and thus a risky bet.

 

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 prior to making any actual investment decisions, based on information published here. As SME issues have entry barriers and low preference from broking community, any reader taking decisions based on any information published here does so entirely at own risk. Author has no plans to invest in this offer.

 

Review By Dilip Davda on Jun 26, 2015

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

VMV Holidays IPO FAQs

  1. 1. Why VMV Holidays IPO?

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

  2. 2. How is VMV Holidays IPO?

    Read the VMV Holidays IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. VMV Holidays IPO what should investors do?

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

  4. 4. Is VMV Holidays IPO good?

    Our recommendation for VMV Holidays IPO is to subscribe for long term.

  5. 5. Is VMV Holidays IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the VMV Holidays IPO.

  6. 6. When will VMV Holidays IPO allotment status?

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

  7. 7. When will VMV Holidays IPO list?

    The VMV Holidays IPO will list on Tuesday, July 14, 2015, at BSE SME.