Shreeshay Engineers Limited (SEL) is engaged in providing the supply of materials, designing and contracting capabilities as well as construction project management services. It is mainly a real estate construction and engineering company. Shreeshay Engineers is coming up with their initial public offering that will be open for application starting from tomorrow. So let me quickly take the investors through the draft red herring prospectus of SEL and consider the issue price and GMP to present the Shreeshay Engineers Ltd IPO Review for you.
About Shreeshay Engineers Ltd IPO :
- IPO Opens on – March 9, 2018.
- IPO Closes on – March 13, 2018.
- Face Value – Rs. 10 Per Equity Share.
- Issue Price – Rs. 13 Per Equity Share.
- Issue Type – Fixed Price Issue IPO.
- Retail Allocation – 50%
- Market Lot – 8000 Shares.
- Minimum Order Quantity – 8000 Shares.
- Issue Size – 3,600,000 Equity Shares of Rs 10 aggregating up to Rs 5.40 Cr.
- Listing Exchange – BSE SME Exchange.
- Draft Prospectus – Download.
Objectives of the issue:
- Funding Working Capital Requirement.
- Funding expenditure for General Corporate Purposes.
About The Company –
- Shreeshay Engineers Limited is incorporated in 2006.
- This company is a part of the DKP Group which has large presence in the real estate market in and around Mumbai.
- Shreeshay Engineers Limited has developed around 90,000 sq. ft of built up real estate vide project(s) named “Kailas Jyoti I” and “Kailas Jyoti II” at Ghatkopar, Mumbai.
- This company recently entered into works contract for construction of real estate project “Kailas Nagar”.
- This company has been realigning its business policies and recently the company have increased their focus towards becoming the “EPC” arm of the group.
Promoters of the company :
- Mr. Bhogin D Patel is one of the promoter of this company.
- Mr. Kishore D Patel is other promoter of this company.
Shreeshay Engineers Ltd IPO Review: On the financial years 2013 and 2014 SEL has posted net losses but they managed to turn around and started posting profits since FY 2015. The profitability has increased steadily over the years. At current issue price of Rs. 13 per equity share the company has earnings per share of 1.79 and the price to earnings ratio of over eight. However, the EPS suggests that the issue is for now aggressively priced. Hence our Shreeshay Engineers Ltd IPO Review has a NEUTRAL view on this issue. Only risk takers can consider investing in this issue.