Simplex Projects, Integrated engineering and construction service provider, is
open for subscription with an initial public issue of 30-lakh equity shares of
Rs 10 each in the price band of Rs 170-Rs 185 through a 100 per cent book building
process. The issue closes on July 13. The net issue will constitute 25 per cent
of the fully diluted post issue paid up capital of the company. No more than 50
per cent of the net issue will be available for allocation on a proportional basis
to qualified institutional buyers. Five per cent of the QIB portion is for allocation
on a proportionate basis to mutual funds only. The remainder is for allocation
on a proportionate basis to QIBs and mutual funds. Further, not less than 15 per
cent of the net issue will be available for non- institutional bidders and not
less than 35 per cent of the net issue will be available for allocation on a proportionate
basis to retail individual bidders. The company has reported a profit after tax
of Rs 10.49 crore for the fiscal 2006-07 on a turnover of Rs 136.24 crore.
| Experts |
Company/Occupation |
Experts view |
| R S Iyer |
KR Choksey |
Looking at the good response to DLF, where investors got full allotment
and markets at 15000 mark, it’s an easy entry for other issues. In that
league, one is Simplex projects. It is a good issue. Investors can apply
for the same. |
| Manish Bhatt |
Prabhudas Lilladher |
Simplex Projects looks to be good issue. Investors can subscribe the issue. |
| SP Tulsian |
Investment Advisor |
The company is a construction and engineering firm providing construction
services for civil and structural construction and infrastructure sector
projects. The company has to catch on, for which huge working capital would
be required. During FY 04 to FY 06, growth of the company on topline and
bottomline was mediocre. The presence of the company is mainly into eastern
region.
The company has chalked out a capex plan of Rs 55 crore mainly
for working capital (Rs 35.55 crore), Rs 13.88 crore for plant and machinery
and Rs 6 crore for investment in its subsidiary for car park projects.
This project is quite interesting and has huge scalability. Only concern
is whether the company would be able to exploit its potential on Pan-India
basis as many other players are preparing themselves to enter into this
field.
The past performance, baring FY 07, does not attract as also its higher
equity base of Rs.12 crore and lower topline volume. Regional presence
is also negative. However, car park project is quite interesting. Share
at upper band is definitely not worth and even at lower band is quite
expensive. But still if someone wants to plunge in, can take it by considering
it as chhota Simplex. |
News Source
