Vkj Infra Developers Ltd was New Delhi based company integrated in 2012; The Company currently affianced engage in the business of Land Development, Civil Construction & trading in construction materials, primarily soils & sands.
Vkj Infra Developers Limited mainly affords civil construction, land & site development services and trading of construction materials. By the side of present they are looking for some land for future projects in Delhi, Noida, and NCR region. They are also conferring with other Construction Companies/ Developers to finalize joint venture projects with them. In addition they are doing land leveling works from the past years with ISP Construction Private Limited.
Vkj Infra Developers Individual Promoters are Mr. Manoj Kumar, Mr. Arun Kumar Chalukya and Mr. Rajesh Kumar Chauhan and the corporate promoters was M/s SSD Real Estate Developers Pvt. Ltd.
Objects of the Issue:
- To meet the fund requirements for execution of Ongoing and Forthcoming Projects and other working capital requirements
- To meet the funds required for general corporate purposes
- To Meet the Issue Expenses
ISSUE DEAILS:
- Issue Open: 12 August 2013 – 16 August 2013
- Issue Type: Fixed Price Issue IPO
- Issue Size: 5,100,000 Equity Shares of Rs. 10
- Issue Size: Rs. 12.75 Crore
- Face Value: Rs. 10 Per Equity Share
- Issue Price: Rs. 25 Per Equity Share
- Listing At: BSE, SME
- Lead Managers: Inventure Merchant Banker
- Market Maker: Anuriti Multi Broking
- Registrar: Sharepro Services
COMPANY FINACIALS:
Vkj Infra Developers Limited Company’s performance, for last 3 fiscals it has posted an average Earnings per Share of Rs. 4.36. For the fiscal 2011-12 it has posted and Earnings per Share of Rs. 4.40 and for the eleven months period ended on 28.02.13 the company has posted Earnings per Share of Rs. 0.07 (not annualized). Vkj Infra Developers issued its equity at a fancy price on 31.3.2011 105700 shares at Rs. 100 per share, on 30.03.12 85455 shares at Rs. 500 per share and then on 16.1012 issued tolerant bonus in the ratio of 25 shares for every 1 share detained. Over and above these, it again issued 20000 equity shares at Rs. 25 per share on 18.06.13 and 7500000 shares at par on 26.06.13. At the present it wants premium from the public for the IPO procedure. Its equity that was just Rs. 0.20 crore on 31.3.2012 rose to Rs. 5.23 crore on 28.02.13 and as on 30.06.13 it stood at Rs. 12.75 crore. It will further raise to Rs. 17.85 crore posts this issue. For eleven months ended on 28.02.13 its turnover was Rs. 2.60 crore with a net profit of Rs. 0.04 crore translating the offer price at a P/E of 1000+. Read more in detail for VKJ Infra Developers Limited IPO.
CONCLUSION:
Vkj Infra Developers Limited has already shown its true colors by diverting considerable amount to investment activities. Hence, price manipulation cannot be ruled out.
Seeing that noteworthy portion of the public category is held at par, they may mar the scrip once the lock-in is relaxed after a year.
Promoters’ credentials are far from convincing and their post-issue stake is as low as 26% in 2 years the company has had 3 auditors as the timid auditors expressed their inability to continue.
Seeing that the merchant banker’s performance, this is the fourth SME issue from their stable and considering their market game in its own parent company and the other mandates listing, one may get some rewards. But current status is not having encouraging trends and hence investors should AVOID this issue.