Womens Next Loungeries IPO Review (Avoid)

Review By Dilip Davda on Mar 24, 2014

Women's Next Loungeries Ltd. is engaged in women's innerwear segment that included designing; manufacturing, branding and marketing of lingerie wear, honeymoon set, intimate wear etc. Its products are marketed under the brand name of "Valentine Pink" and "Women's Next". To meet upgradation cost of the existing unit, repayment of loans and meeting working capital requirement, the company is coming out with an issue of 1000000 equity share of Rs. 10 each at a fixed price of Rs. 65 per share to mobilize Rs. 6.50 crore. Issue opens for subscription on 28.03.14 and will close on 07.04.14. Thus long duration for a tiny issue has surprised one and all. The issue is lead managed by Pantomath Capital Advisors Pvt Ltd. and Link Intime India Pvt. Ltd. is the registrar to the issue. Minimum application is to be made for 2000 shares and in multiples thereof, thereafter. Post allotment, the shares will be listed on BSE SME.

On performance front, for the last two fiscals the company has posted a turnover / net profit of Rs. 22.36 crore/Rs. 0.42 crore (2011-12) and Rs. 32.23 crore/Rs.0.68 crore (2012-13). For the first six months ended on 30.09.13 it has earned net profit of Rs. 0.48 crore on a turnover of Rs. 19.40 crore with an EPS of Rs. 19.20 on an equity base of Rs. 0.50 crore by then on annualized basis which has gone up to Rs. 1.50 crore post bonus issue in the ratio of 2 for 1. Thus on enhanced equity post bonus, the revised EPS stands is at Rs. 6.40. But if we attribute these earnings on post IPO equity of Rs. 2.50 crore then EPS stands at Rs. 3.84. Thus asking price of the issue is at a P/E of 16+ and at a P/BV of 0.32.

On merchant banker's front, this is the second mandate from them and the first IPO of Si Vi Shipping is witnessing some operation with upward bias on a very thin volume since listing indicating some play of this market maker.

As peers are trading at higher P/E then this, the IPO looks attractive, but the entry barrier as minimum investment of Rs. 1.30 lakh per application and also for trading in the same lost post listing, only risk aver HNIs may dare to park their fund in this IPO. Retail investors should avoid.


Conclusion / Investment Strategy

Avoid. As peers are trading at higher P/E then this, the IPO looks attractive, but the entry barrier as minimum investment of Rs. 1.30 lakh per application and also for trading in the same lost post listing, only risk aver HNIs may dare to park their fund in this IPO. Retail investors should avoid.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Mar 24, 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

Womens Next Loungeries IPO FAQs

  1. 1. Why Womens Next Loungeries IPO?

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

  2. 2. How is Womens Next Loungeries IPO?

    Read the Womens Next Loungeries IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Womens Next Loungeries IPO what should investors do?

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

  4. 4. Is Womens Next Loungeries IPO good?

    Our recommendation for Womens Next Loungeries IPO is to avoid.

  5. 5. Is Womens Next Loungeries IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Womens Next Loungeries IPO.

  6. 6. When will Womens Next Loungeries IPO allotment status?

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

  7. 7. When will Womens Next Loungeries IPO list?

    The Womens Next Loungeries IPO will list on Monday, April 21, 2014, at BSE SME.








Search Chittorgarh.com:

Download Our Mobile App

Android App iOS App