March 31st 2017 will see a few issues opening for listing in the NSE SME exchange. I have already covered one of them at M K Proteins Limited IPO Review – New Issue In NSE SME Exchange and another at ASL Industries Ltd IPO Review – Looking Like Expensive Deal. The new kid on the block is Dev Information Technology Ltd and I will discuss the Dev Information Technology Ltd IPO Review in this post.
Issue Date: March 31, 2017 – April 6, 2017
Offer Price: Rs. 42 per equity share
Minimum Application: 3000 shares
Total Number Of Shares: 14,88,000
Issue Size: Rs. 6.25 crores
Listing Exchange: NSE SME
Objective of the issue:
1) Meeting working capital needs
2) General corporate expenses
About the company:
Dev Information Technology Ltd got incorporated on 1997 and they are now a ISO 9001:2008 certified company. The company is working in enterprise solutions, managed IT solutions, web services and licensing and consulting. The promoters of the company include Shri Jamin Shah, Managing Director; Shri Pranav Pandya, Chairman; Shri Vishal Vasu, Director and CTO and Shri Prerak Shah, Director (Enterprise Solutions). Dev IT is located at Ahmedabad, Gujarat.
From the financial reports its has been seen that steady rise of profits has been noticed while the turnover is not so consistent, clocking highest turnovers in FY 2014. In the first 6 months of FY 2017 the company has posted a profit of Rs. 1.16 crores against a turnover of Rs. 20.02 crores.
Dev Information Technology Ltd IPO Review: The major plus point of the company is its presence despite being an SME. The steady profits upvotes for the performance of the company. At Rs. 42 per equity share I feel the issue is priced effectively and reasonably. I recommend a BUY rating with medium to long term horizon. We can also witness some listing gains in this issue, but rather HOLD in your portfolio.