Hem Securities Ltd. is the Lead Manager to all five SME IPOs
Mumbai based Aurangabad Distillery Limited is among the five SME IPOs
Mumbai. 29 September 2016 (GPN) : In a record of sorts, five SME IPOs, all bound to be listed on NSE’s Emerge platform, will open for subscription on September 30, 2016. All five mandates are lead managed by Hem Securities Ltd. With issue sizes in the range of Rs. 422.40 lakhs and Rs. 1019.04 lakhs. The companies include Aurangabad Distillery Limited, Art Nirman Limited, Pansari Developers, Dhanuka Realty Limited and Globe International Carriers Limited. While two of these companies are based at Jaipur, the other three companies are from Mumbai, Ahmedabad and Kolkata respectively. Three IPOs, Aurangabad Distillery Limited, Pansari Developers Limited and Dhanuka Realty Limited, will close for public subscription on 6th October, 2016 and rest two, Art Nirman Limited and Globe International Carriers Limited, on 7th October, 2016.
Mumbai based Aurangabad Distillery Limited’s public issue will be 22,00,000 equity shares are offered at a price of Rs. 35 with face value of Rs. 10 at the premium of Rs. 25. The net issue to the public will be for Rs. 770 lakhs. The Company has hit the issue at a very attractive valuation (P/E) of 5 whereas its peers are running at an average P/E of 40.83.
Ahmedabad based Art Nirman Limited’s public issue will be 20,04,000 equity shares are offered at a price of Rs. 25 with face value of Rs. 10 at the premium of Rs. 15. The Net Issue to the public will be for Rs. 501 lakhs. The company is focused on Quality construction, outsourcing specialized work to entities having the required expertise in specialized project execution.
Kolkata based Pansari Developers Limited’s public issue will be 46,32,000 equity shares are offered at a price of Rs. 22 with face value of Rs. 10 at the premium of Rs. 12. The net issue to the public will be for Rs. 1019.04 lakhs. As per the current financials the company has a strong net worth of more than Rs. 40 Cr.
Jaipur based Dhanuka Realty Limited’s public issue will be 10,56,000 equity shares are offered at a price of Rs. 40 with face value of Rs. 10 at the premium of Rs. 30. The net issue to the public will be for Rs. 422.40 lakhs. Company’s brands “Dhanuka” and “Sunshine” are well known in Jaipur, as the group has completed 12 Projects at the prime locations of the city.
The second company from Jaipur, Globe International Carriers Limited’s public issue will be 21,54,000 equity shares are offered at a price of Rs. 24 with face value of Rs. 10 at the premium of Rs. 14. The net issue to the public will be for Rs. 516.96 lakhs. The Company has derived an attractive P/E of 14 whereas industry is running at an average P/E of 37. Globe International is serving its reputed Clientele base through its 27 branches across India successfully.
Briefing the media, Gaurav Jain, Director, Hem Securities Ltd. said, “The SME platforms have emerged as viable source for growth funding for smaller companies. Not only it has helped in creating wealth for investors, but also listing on the stock exchange ensures many other benefits such as better credibility, accelerated growth, etc. When the companies migrate to the main board of stock exchanges, the Company and its promoters are the biggest beneficiaries.” Adding further, Prateek Jain, Director, Hem Securities Ltd. mentioned that, “the geographical spread of the SMEs keen to bring their IPOs is very heartening. We are working on mandates from across the country and next six to eight months will witness a truly diverse spread across sectors and regions.”
Briefing the media, Ravi Varanasi, Group Head-Business Development, NSE said, “NSE EMERGE is witnessing hectic activity in September 2016 culminating in 7 IPOs opening on September 30th, five of which are by a single Merchant Banker. Once these issues are listed by mid-October, EMERGE platform would cross important milestone of 50listings. Efforts of NSE over the last couple of years in creating conducive eco-system for SMEs to access public markets is surely gaining traction with half dozen more DRHPs already filed and about 50 SMEs working closely with Merchant Bankers on their IPOs. We are happy that SME Entrepreneurs are realizing the value of public listing and a dedicated team Merchant Bankers are working exclusively with SME Entrepreneurs and helping them in their journey. “