Meera Industries Limited IPO Review

Meera Industries Limited IPO Review

Meera Industries Limited is hitting the BSE SME exchange with their initial public offering. This post will focus on Meera Industries Limited IPO Review as well as will try to find out the profitable investment opportunity (if any) in the said issue. This is once again an SME issue so the shares will be traded in lots and partial buying/selling will not be allowed.

Issue Details:
Issue Date: April 27, 2017 – May 04, 2017
Offer Price: Rs. 36 per equity share
Minimum Application: 3000 equity shares
Listing Exchange: BSE SME.

Issue Objective:
1) Purchasing of additional plats and machinery for Surat, Gujarat plant.
2) Setup of yarn manufacturing unit at Surat, Gujarat.
3) Working capital needs.
4) General corporate needs.
5) Meeting IPO expenses.

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About The Company:
Meera Industries Limited is a manufacturer and exporter of textile machinery and TFO twisting yarns. It’s an ISO 9001:2000 certified company who emphasizes creative thinking and superior quality products. The company also focuses on the timely delivery of products, competitive prices, in-house R&D facility, strict quality checks and skilled technicians and engineers. The promoters of the company are Shri Dharmesh V Desai and Shri Bijal D Deshai. The company exports to countries like Belgium, Germany, Italy, South Africa and Peru etc.

Company Financials:
Meera Industries Limited IPO
The diagram above lists the companies turnover vis-a-vis the profits starting from FY 2014. The data shows that since FY 2014 the company has slowly increased their turnover and profits both.

Meera Industries Limited IPO Review: The financial data of the company is not bad and I feel its not very good either. There is no significant increase in turnover and profitability over the years. The IPO price of Rs. 36 seems aggressive in this not so impressive financials. Due to the strong markets through some listing gains may be seen, still, I don’t suggest investors be aggressive. Invest in this issue only if you are a risk-savvy investor.

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