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Shri Krishna Prasadam

The document discusses an IPO from Shri Krishna Prasadam Ltd, an Indian company that was initially engaged in manufacturing and trading gemstones but has since diversified. The key points are: 1) The IPO aims to raise Rs. 216 lakhs to fund additional working capital for agricultural trading and cover issue expenses. 2) The issue price is Rs. 10 per share for a total offering of 2.16 crore shares on the BSE SME exchange. 3) While the company's revenues have grown in recent years, its profits remain very thin, raising concerns about valuation and liquidity for investors.

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72 views8 pages

Shri Krishna Prasadam

The document discusses an IPO from Shri Krishna Prasadam Ltd, an Indian company that was initially engaged in manufacturing and trading gemstones but has since diversified. The key points are: 1) The IPO aims to raise Rs. 216 lakhs to fund additional working capital for agricultural trading and cover issue expenses. 2) The issue price is Rs. 10 per share for a total offering of 2.16 crore shares on the BSE SME exchange. 3) While the company's revenues have grown in recent years, its profits remain very thin, raising concerns about valuation and liquidity for investors.

Uploaded by

vishal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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How to invest

Shri krishna prasadam ltd


OBJECTS OF THE ISSUE
The net proceeds of the Issue, after deducting the underwriting and issue
management fees,
selling commission and other expenses associated with the Issue (the Net
Proceeds of the
Issue), are estimated to be approximately Rs. 186.00 Lacs.
A) OBJECTS OF THE ISSUE
The Net Proceeds of the Issue are proposed to be utilised by the Company for
the following
objects:
1. To raise funds for additional long-term working capital for the business of
Trading of
Agricultural Products; and
2. To meet the expenses of the issue.
B) FUND REQUIREMENT
The fund requirement and deployment are based upon Management estimates:
S. No. Particulars Amount (Rs in Lacs)
1. To raise funds for additional long-term working capital for
the business of Trading of Agricultural Products
186.00
2. To meet the expenses of the issue 30.00
Total 216.00

How to invest

The Objects Clause of the Memorandum and Articles of Association of the


Company enable it to
undertake the activities for which the funds are to be raised in the present Issue.
Further, it is
confirmed that the activities, which the company has been carrying out until
now is in accordance
with the object clause of Memorandum and Articles of Association of the
Company.

How to invest

Incorporated in 2009, Shri Krishna Prasadam Ltd is engaged in the business of


manufacturing, exporting and supplying gemstones, stone jewelry, rudraksha
beads, Shivlings, Shri Yantras, Sphatic Ganesha, Rudraksh Pendant, Rudraksh
Mala etc.
Due to hike in Gold import duly leading to sluggish trends in business, the
company mulls to diversify in the business of real estate, consultancy services
and agricultural activities.
Company Promoters:

The following are the Promoters of the Company:


1. Mr. Kulbhushan Parashar,
2. Mrs. Harpreet Parashar,
3. Kulbhushan Parashar HUF, and
4. KPCorp Consultants Private Limited.
Objects of the Issue:
The Net Proceeds of the Issue are proposed to be utilised by the Company for
the following objects:
1. To raise funds for additional long-term working capital for the business of
Trading of Agricultural Products ; and
2. To meet the expenses of the issue.
Issue Detail:

Cr

Issue Open: Mar 11, 2014 - Mar 14, 2014


Issue Type: Fixed Price Issue IPO
Issue Size: 2,160,000 Equity Shares of Rs 10 aggregating up to Rs 2.16
Face Value: Rs 10 Per Equity Share
Issue Price: Rs. 10 Per Equity Share
Market Lot: 10000 Shares
Minimum Order Quantity: 10000 Shares
Listing At: BSE SME

How to invest

Shri Krishna Prasadam IPO Listing Date

Listing Date: Friday, March 28, 2014

BSE Script Code: 537954

NSE Symbol:

Listing In: MT Group of Securities

ISIN: INE009Q01019

Issue Price: Rs. 10.00 Per Equity Share

Face Value: Rs. 10.00 Per Equity Share

Shri Krishna Prasadam IPO News Alerts


1.

Friday, March 14, 2014 12:00:00 AM

Shri Krishna Prasadam Ltd IPO - Close

2.

Tuesday, March 11, 2014 1:41:42 PM

Upcoming IPO - Shri Krishna Prasadam Ltd

3.

Tuesday, March 11, 2014 12:00:00 AM

Shri Krishna Prasadam Ltd IPO - Open

Company Contact Information


Shri Krishna Prasadam Ltd
27/5 (Basement),
East Patel Nagar,
New Delhi - 110008
Phone: +91-11-25812714
Fax: +91-11-25812714

How to invest
Email: shrikprasadam@gmail.com
Website: http://www.shrikrishnaprasadam.com

Shri Krishna Prasadam IPO Registrar


Skyline Financial Services Private Ltd
D-153A, 1st Floor,
Okhla Industrial Area, Phase-I,
New Delhi -110020

Report

Phone: +91 11 2681


Fax: +91 11 30857562
Email: virenr@skylinetra.com
Website: http://admin@skylinerta.com

Shri Krishna Prasadam IPO Lead Manager(s)

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Recently the Company has changed its main object to Real Estate business, share trading,
agricultural activities and consultancy services, the new certificate pursuant to object change was
issued by Registrar of Companies on 16th December 2013.
Also, the Company has been converted from Private Limited to Public Limited and consequently
the name of Company has been changed from Shri Krishna Prasadam Pvt. Ltd. to Shri Krishna
Prasadam Limited on 24th December 2013

How to invest

shri Krishna Prasadam IPO Analysis


New Delhi based Shri Krishna Prasadam SME IPO has hit the market this week. Company issues
the shares at par of Rs 10 per share without any premium. Company makes good revenue
growth of 70% and 50% in previous two financial years. All looks pretty good. What should be
your take on this IPO. Can you bet on the Shri Krishna Prasadam IPO? Does this IPO of Shri
Krishna Prasadam gives at least listing gains?
About Shri Krishna Prasadam
Initially Shri Krishna Prasadam was engaged in the business of manufacturing, exporting and
supplying of gemstones, stone jewelry, rudraksha beads, shivlings, shri yantras, sphatik ganesh,
rudraksha pendant, rudraksha mala, etc. in India. However, in view of the market scenario and
increase in the custom duty payable on Gold, the board of directors decided to alter the
object clause of the company in order to allow it to operate in areas such as real estate,
consultancy services and agricultural activities.

Also Read: Loha Ispat Limited IPO closes on 20-Mar-14, should


you invest?
Issue details of Shri Krishna Prasadam IPO

IPO opens: 11-Mar-2014

IPO closes: 14-Mar-2014

Face value: Rs 10 per share

Issue price: Rs 10 per share

Minimum bid: 10,000 shares

How to invest

Minimum investment: Rs 100,000

Maximum investment by retail investors: Rs 200,000

Listing: BSE SME

The purpose of the IPO: The funds would be used for the following purposes.

To raise funds for additional long-term working capital for the business of trading of
agricultural product

Meeting public issue expenses

Company Financials
The company has posted revenue of Rs 8.44 Lakhs for the year ended Mar-2009 and Rs 25.70
Lakhs for the year ended Mar-2013. First 11 months of this financial it year made a revenue of
Rs 169 Lakhs.
The company has posted a profit of Rs 19,491 for the year ended Mar-09 Vs Rs 10,986 for the
year ended Mar-2013. First 11 months of this financial year it made a profit of Rs 3.43 Lakhs.

Reasons to invest Shri Krishna Prasadam IPO

Good revenue growth in last two years. Revenues increased from Rs 25.70 Lakhs from
last year to Rs 169 Lakhs in 10 months of this financial year.

Reasons not to invest in an Shri Krishna Prasadam IPO

Profits are very thin. It earned Rs 10,986 in the last financial year (FY 2012-13) on a
turnover of Rs 25.70 Lakhs. These can be easily wiped out with a small increase in costs.

SME IPOs are trading in low volumes. Liquidity could be an issue.

How to invest

Also read: Do you know how NRI's can invest in MF's in India?
Recommendation / Investment strategy:

Average EPS for the last 3 years is Rs 0.15 At issue price of Rs 10, this translates to a
P/E ratio of 65. Based on last financial year 2012-13 EPS of Rs 0.01, P/E ratio works out to
be 1,000. Even 10 months EPS for FY 2013-14 EPS shows 0.29 which translates the P/E
ratio of 34. Its competitors like Eco Friendly Foods P/E ratio is 260.81 and Lakshmi Energy
and Foods P/E ratio is 2 with average in this segment of 10.4. Since company cannot issue
shares below this issue price of Rs 10, investors might get tempted to buy at this rate.
However, at a P/E ratio of 1,000 based on last financial year data looks very expensive.

Though company revenues are growing, considering thin margins and high issue price,
my suggestion to investors is to stay away from such SME IPO.

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