Advitiya Trade India Limited (ATIL) is engaged in the trading of glass products, aluminium products, cotton fabrics, Printing Machines and other products. It is Paharganj, Central Delhi based company. ATIL’s new issue will be open for applying starting from today as the company is in the process of getting listed on the stock exchanges. I have checked the ATIL draft red herring prospectus, had an eye on their issue price and company financials and now I will present my Advitiya Trade India Limited IPO Review for you.
About Advitiya Trade India Limited IPO :
- IPO Opens on – March 14, 2018.
- IPO Closes on – March 16, 2018.
- Face Value – Rs. 10 Per Equity Share.
- Issue Price – Rs. 15 Per Equity Share.
- Issue Type – Fixed Price Issue IPO.
- Retail Allocation – 50%
- Market Lot – 8000 Shares.
- Minimum Order Quantity – 8000 Shares.
- Issue Size – 2,872,000 Equity Shares of Rs 10 aggregating up to Rs 4.31 Cr.
- Listing Exchange – BSE SME Exchange.
- Draft Prospectus – Download.
Objectives of the issue:
- Working Capital Requirements.
- Funding expenditure for General Corporate Purposes.
About The Company –
- Advitiya Trade India Limited is incorporated in 2017.
- The promoters of the company have been in this business through family proprietary concerns and promoter family has been operating under various other proprietary concerns in similar line of business.
- This company has experienced promoters and a well trained employee base.
- Advitiya Trade India Limited is also have strong balance sheet and financial condition with low debt and high equity.
- This company’s existing relationships helps to get repeat business from its customers.
- The character of this company is professional work culture incorporated in company’s system and a host of other activities symbolize.
Promoters of the company :
- Mr. Sandeep Goyal, aged 44 years is the Managing Director of this company.
- Mr. Pradeep Goyal, aged 34 years is the Promoter and shareholder of this company.
- Mrs. Deepti Goyal, aged 32 years is the Promoter and shareholder of this company.
Advitiya Trade India Limited IPO Review: Very less financial data is the major disadvantage while considering for applying. The company has furnished the only financial year 2017 data where they have posted a net loss of Rs. 4.89 lacs and also they published data until Nov of current financial year where they have posted sudden profits of Rs. 36.34 lacs. This small amount of financial data is not sufficient to judge a company. the earnings per share are only 0.66 and that is also a major drawback.
Due to all these factors, our Advitiya Trade India Limited IPO Review has a NEUTRAL to NEGATIVE view on this initial public offering. We suggest to stay sidelines and if needed purchase the shares once they are listed on the secondary market.