Shree Krishna Infrastructure Limited IPO

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Shree Krishna Infrastructure Limited was incorporated as on 3rd Day of July 1990.

The Company is engaged in Buying, taking on lease, large size of plots to provide roads, drains, water supply, electricity and lights and within such land(s), and plot(s) to build residential houses and business premises and colonies; to carry on the business of financier and the hire purchase and hire sales and of commission agents to acquire, purchase, hire or lease agricultural lands and to cultivate any crop or crops for the benefit of the company.

Foray into the new Business

1. Trading of perfumed incense sticks: Shree Krishna Infrastructure Limited has recently started trading of perfumed incense sticks. In the month of August 2018, the company has exported one container of incense sticks to TOGO, a country in West Africa and expecting more order to be executed in the future.

2. Contract Farming:
Shree Krishna Infrastructure Limited has planned to do contract farming at Nikoli, Taluka- Nandod, DistrictNarmada, Rajpipla-393145 Gujarat on a total land area of around 7.40 acres and intends to cultivate Tulsi and Nepali Satavari for Amritanjali Ayurved (OPC) Private Limited. To execute the same the company has already signed a business agreement dated May 30, 2017 with 3 land owners who will provide their land on the long term basis (10 Years) for the said purpose. The land owner will actively participate in cultivation, harvesting, fertilization, and production etc of said products. The plantation work is already completed.

3. Distribution Project of E-Vehicles: M/s. Marine Navaids And Solar Auto Private Limited (MNSAPL) is carrying on the business of manufacturing of solar operated Auto Vehicles and has agreed to designate Shree Krishna Infrastructure Limited as their “Exclusive Distributor” for the state of Gujarat vide their agreement dated March 31, 2018. The said agreement shall remain valid for 10 (Ten) years and further extendable with mutual consent of both the parties. The Distributor shall procure the orders based on the MNSAPL’s offers and act as the Distributor for supplying the said Products sourced from the MNSAPLas per the terms and conditions mentioned in the agreement. The Distributor can appoint sub-Dealers to market the products in the state.

Shree Krishna Infrastructure Limited IPO Stock Quote & Charts

9.58

-4.96%

  • Open: 9.58
  • High - Low: 9.58 - 9.58
  • Previous Close: 10.08
  • Total Traded Volume: 100000
  • Updated On: 13-Dec-2018

Objects of the Shree Krishna Infrastructure Limited IPO:

Objective of Shree Krishna Infrastructure Limited IPO are: The objects of the Offer are to achieve the benefits of listing the Equity Shares on the SME Platform of BSE and to carry out the sale of 9,00,000 Equity Shares by the Selling Shareholder. The listing of the Equity Shares will enhance our visibility, brand name and provide liquidity to the existing shareholders.

Shree Krishna Infrastructure Limited IPO Details:

Open Date: Nov 15 2018
Close Date: Nov 22 2018
Total Shares: 9,00,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 1.17 Cr.
Lot Size: 10,000 Shares
Issue Price: ₹ 13 Per Equity Share
Listing At: BSE SME
Listing Date: Dec 03 2018

Promoters And Management:

Promoters of Shree Krishna Infrastructure Limited IPO Company are: Mr. Ravi Rajiv Kotia, aged 30 years, is the Promoter and Managing Director of our Company. He Has experience as an Account Executive and Administration for 5 years in a Service Industry “Parekh Integrated Services Pvt Ltd” and “Shree Krishna Infrastructure Limited” which includes Accounting entries that includes invoice and all other type of expenses and payments in company software, Petty Cash Management of Ahmedabad, Rajkot, Surat, Baroda, Aslali Branches, CoOrdination with clients regarding out-standing payments and product related queries, Carried out data entry, book-keeping, daily invoice processing in company software. Mr. Amit Rameshbhai Kotia, aged 52 years, is Executive Director cum C.F.O. of our company. He has vast experience in property development, administration in fund raising, marketing, also holds good experience in placement in mutual funds and attracting foreign investments. He has expertise in raising funds at minimum cost and also has a keen interest in real estate properties.

Financials of Shree Krishna Infrastructure Limited IPO:

Year Revenue(lakh) PAT(lakh) EBITDA Margins Profit Margins EPS
FY16 58 2.43 6.7% 4.4% 0.15
FY17 61 1.48 3.8% 2.4% 0.08
FY18 76 3.53 6.5% 4.6% 0.13

Recommendation on Shree Krishna Infrastructure Limited IPO:

Review and Recommendation of Shree Krishna Infrastructure Limited IPO from our IZ team is: 2/10 IZ Review Pros: The company is debt free. Cons: 1. Receivables(2017-18)= 57 Lakh and Total revenue(2017-18) = 75 Lakhs. Receivables/sales of 76% is very high. The last year Receivables were 26 Lakhs an increase of almost 30 lakh shows the company is not getting cash from suppliers in time which is reflecting in the negative cash flows from operations in the last 3 years. 2. A lot of Equity Dilution in the last 3 years. Equity has been diluted from 17 Lakhs to 30 Lakhs shares in the period. 3. Negative Cash flows from operations in the last three years. 4. 3 Year Average OPM and NPM stands at 5.69% and 3.79% which is poor. Should be atleast more than 10% for good company. 5. More than 50% of the income is going in Employee Expense.  

Lead Manager of Shree Krishna Infrastructure Limited IPO:

  1. Finshore Management Services Limited

Registrar of Shree Krishna Infrastructure Limited IPO:

  1. Satellite Corporate Services Private Limited

Company Address:

Shree Krishna Infrastructure Limited Bungalow No.36, Rang Residency, Vadia, Rajpipla, Narmada- 393145, Gujarat, India Phone: +91 88498 65932 Email id: info@skifl.com, Website www.skifl.com

Bid Details of Shree Krishna Infrastructure Limited IPO as on
22 Nov 2018 | 11:58:03 PM

Category No.of shares offered No. of shares bid
425,000 560,000
425,000 1,930,000
50,000 50,000
900,000 2,540,000
QIBs No
QIBs+HNIs Subscription 1.32X
Retail Subscription 4.54X
Total Subscription 2.93X

Discussion on Shree Krishna Infrastructure Limited IPO:

    LIsted at Discount at 12.35 against the issue price of 13.

    Finshore lead manager have come with all pathetic issues .
    i am not sure why there is no monitoring for such issues where in retailer have almost 50 % holding
    please save yourself and not worth looking at this issue
    Being a small issue finshore will put in half the money and rest 50% will go to public (bakras)
    this company is not worth even to comment

    Certain of their Promoter Group and the Promoter, Directors, are involved in certain legal proceedings.

    Market Regulator SEBI has imposed a penalty on their our Promoter, promoter group and directors for wrongful disclosure of shareholding, nondisclosure as per SEBI (Prohibition of Insider Trading) Regulation 1992, non disclosure as per SEBI (SAST) 1997 and violation of Section 11 C (3) read with Section 11(2) (I) of SEBI Act 1992

    Last Three Years Average EPS is 0.261
    PAT(2017-18)= 3.53 lakh
    Price = 13
    P/E= 50( Very High).

    SME Platform was primarily formed by Govt to help small companies to raise money for business as getting credit from Banks , NBFCs etc were difficult. The SME sector is the backbone of the economy for jobs creations, growth point of view. However, lately, some companies are using this platform to raise money for themselves which is not at all acceptable.

    This company with no vision of Business is coming up with an OFS. On prima facie it looks an avoid to me.