Banka BioLoo Limited is incorporated in 2012. This company provides sanitation infrastructure and human waste management solutions, maintenance (O&M) services to Indian Railways. Banka BioLoo Limited is also offering innovative and simple bio-digester technology patented by Defense Research and Development Organisation (DRDO), the R&D arm of the Indian Ministry of Defense. Banka BioLoo’s initial public offering will be open from tomorrow for applying. Let me check the draft red herring prospectus and present you with the Banka BioLoo Limited IPO Review in this article.
About Banka BioLoo Limited IPO :
- IPO Opens on – February 5,2018.
- IPO Closes on – February 7,2018.
- Face Value – Rs. 10 Per Equity Share.
- Issue Price – Rs. 115 Per Equity Share.
- Issue Type – Fixed Price Issue IPO.
- Retail Allocation – 50%
- Market Lot – 1200 shares.
- Minimum Order Quantity – 1200 shares.
- Issue Size – 1,098,000 Equity Shares of Rs 10 aggregating up to Rs 12.63 Cr.
- Listing Exchange – NSE SME Exchange.
- Draft Prospectus – Click Here.
Objectives of the issue:
- Finance capital expenditures at existing Inoculum unit at Aler.
- Finance capital expenditures at proposed new unit at Ibrahimpatnam.
- Finance Working Capital Requirements.
- General Corporate Purposes.
- Issue Related Expenses.
About The Company –
- Banka BioLoo Limited manufactures, supplies, and installs bio-tanks for digestion of human waste.
- The anaerobic bio-digester technology helps users manage waste onsite, without depending on expensive and energy-consuming sewage infrastructure.
- Banka BioLoo Limited are involved in the rental and AMC of mobile biotoilets; handling of low cost housing projects for sanitation requirement at rural area.
- This company sale spares of control discharge toilet system to Indian Railways.
- Banka BioLoo Limited also provision of consultancy services for development of large bio tanks, as well as waste water treatment and recycling solutions.
- This company have installed over 6,000 bio-toilet units across India and currently undertake 12 O&M service contracts with Indian Railways.
- The solutions of this company can be used for many purposes like Household Bio-toilets, Mobile Bio-toilets, School Bio-toilet Blocks, Bio-toilets at work sites and Bio-digester Tanks for various user groups.
Promoters of the company :
- Namita Banka is the promoter of this company.
Banka BioLoo Limited IPO Review: The financial data shows a steady increase in the profits starting from financial year 2013 till FY 2016. But the first quarter of FY 2017 shows a drop in profits as compared to the previous year’s business. The company has a strong client base and also has an attractive business model as they are promoting bioproducts that in line with the Swachh Bharat Abhiyan. On the contrary, the issue price of Rs. 115 per equity share is on the higher side. So our Banka BioLoo Limited IPO Review has a fully NEUTRAL view on this issue. Cash-rich and risk savvy investors can try a small investment in Banka BioLoo Limited. If you are investing, keep a medium to long-term view.
Categories: IPO Review