Accord Synergy Ltd is going to hit the NSE SME exchange this week. While writing Accord Synergy Ltd IPO Review lets first jot down the salient points.
Accord Synergy Ltd IPO Details:
- Issue date: June 22, 2017 – June 28, 2017.
- Issue type: Fixed price issue.
- Issue size: 9,72,000 equity shares of Rs. 10 aggregating upto Rs. 5.83 crores.
- Face value: Rs. 10 per equity share.
- Issue price: Rs. 60 per equity share.
- Lot size: 2000 equity shares.
- Minimum order quantity: 2000 equity shares.
- Listing exchange: NSE SME.
- Allocation ratio: 50% reservered for retail investors and 50% for other investors.
- Prospectus: Click HERE.
Objective Of The Accord Synergy Ltd IPO:
- Working capital requirements.
- General corporate purposes.
- Issue expenses.
About The Company:
The company is being promoted by Shri Betulla Asdulla Khan (holding a total of 12,50,000 equity shares at an average cost price of 4 paisa) and Smt Roli Betulla Khan (holding a total of 12,49,500 equity shares at an average cost price of 3 paisa).
Its a Vadodara, Gujarat based company incorporated on 19th June, 2014. The company provides planning, installation, commisioning and support services to telecom industry. They also provides manpower support to the telecom industry. Some major clientelle of the company includes Nokia, Samsung, Reliance and Huwaei. The top clients are responsible for generating more than 99% of the revenue.
From the data above it has been noted that the company is doing steady increase in its topline and the bottomline is also on rise in same percentage. The average EPS is acound 7.36 while the PE Ratio is 8.16.
Accord Synergy Ltd IPO Review:
Pros for the issue is non-existance of a notable peer company thus arising the chance of monopoly. Steady growth in the financials.
Cons for the issue is very low promoter’s cost price. Retail investor’s cost price will be 1500-2000 times of promoter’s cost price.
Considering the pros and cons we maintain a NEUTRAL rating on the issue. Investors should employ our last day IPO selection method before applying. Important links: Upcoming Issues, IPO Performance, IPO Review.