ASL Industries is coming up with their IPO that is likely to hit the markets on the last day of this financial year tomorrow. Let’s find the pros and cons of applying in this IPO in my short post on ASL Industries Ltd IPO Review.
The objective of the IPO:
1) To raise the working capital needs of the corporate
2) To make up general corporate expenses
3) To raise the issue expenses
About the company:
ASL Industries Ltd was previously known as Ajanta Industries and was a partnership firm. Later the company registered with ROC in the year 1992 and the company has changed their name to ASL Industries Ltd in 2003 by a fresh amendment of ROC.
Now ASL Industries is an ISO 9001:2008 certified company who are working in the field of sheet metal pressing and deep drawing. They are also manufacturing machine assembled auto parts and forged products. The company is located at Jamshedpur, Jharkhand. TRF, Tata Steel, York, Tata Motors are among the customers of the company.
The company is being promoted by Shri Dilip Kumar Goyal, Smt Jayshree Goyal, Shri Ankit Goyal and Shri Akshay Goyal. Now let’s consider the financials of the company.
It has been seen the margins are improving for the company since FY 2016 from where the company has started to post profits. In the first half of 2017, the company has posted a net profit of 0.13 crores against a turnover of 28.32 crores.
ASL Industries Ltd IPO Review: So far for a company of this much stature the issue price of Rs. 35 looks on the higher side and I recommend investors to stay in sidelines and look for FII OR MF subscription data from NSE site in the IPO section that can be examined on the last day of the issue, i.e. on 7th April morning.
Categories: IPO Review