Unishire Urban Infra IPO-Should you invest?

Unishare Urban Infra IPO-Feb-2014; Unishire Urban IPO; Unishire IPOUnishire Urban Infra IPO-Should you invest?

Unishire Urban Infra IPO would hit the market today (10th February, 2014). Unishire Urban Infra is Kolkata based company. In the last 5 years, it incurred loss in two financial years. However, several such companies have been coming to market for IPO subscription to fool investors. In this article, I would provide details about the Unishire Urban Infra IPO and whether it is good for investment or not.


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About Unishire Urban Infra

Unishire Urban Infra is a Kolkata based company engaged in real estate development and construction.

Issue details of Unishire Urban Infra  IPO

  • IPO opens: 10-Feb-2014
  • IPO closes: 12-Feb-2014
  • Face value: Rs 10 per share
  • Issue price: Rs 10 per share
  • Minimum bid: 10,000 shares for retail investors and in multiples of 10,000 shares thereof. Maximum shares to retail investors are 20,000 only
  • Minimum investment: Rs 100,000
  • Lead managers: Inventure Merchant Banker
  • Listing: BSE SME

Download Prospectus of Unishire Urban Infra IPO from SEBI Website

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

  • Development of residential building complex at Kolkata

Company Financials

  • The company has posted revenue of Rs 16.47 Lakhs for the year ended Mar-2009 and Rs 478.60 Lakhs for the year ended Mar-2013. Revenues for the 7 months ended Oct-2013 are Rs 515.95 Lakhs.
  • The company has posted a loss of Rs 45,000 for the year ended Mar-09 Vs loss of Rs 12,000 for the year ended Mar-2013. It posted Rs 19.73 Lakhs profit for the 7 months ended Oct-2013 which is good.

Unishare Urban Infra IPO-Feb-2014; Unishire Urban IPO; Unishire IPO

Reasons to invest Unishire Urban Infra IPO

  • Good growth in revenue in last 5 years.
  • It posted profits in first 7 months of this financial

Reasons not to invest in an Unishire Urban Infra IPO

  • Company revenues are not consistent. Its revenues have significantly increased only last financial year and in the first 7 months of this financial year. We need to wait and see about consistent performance in revenues.
  • The company incurred a loss for 2 financial years out of 5 financial years. Though revenues has increased dramatically in FY 2012-13 to Rs 478 Lakhs, it incurred a loss of Rs 12,000 in that year.
  • The IPO’s listed on the BSE SME platform are trading on low volume and  liquidity is an issue.
  • Minimum investment required is Rs 1.00 lakhs.

Also Read: What is beta value of stock and how it would be useful for you as an investor?

Recommendation / Investment strategy:

  • Average EPS for the last 3 years is Rs 0.06. At issue price of Rs 10, this translates to a P/E ratio of 169.08. We cannot compare FY-12-13 EPS as it incurred a loss. It peers like Aricent Infra Ltd are trading at a P/E ratio of 310.5 (Highest) and Lok Housing Ltd at P/E ratio of 3.8 (Lowest). Hence the issue price of Unishire Urban Infra IPO looks expensive for such SME IPO where it incurred a loss in the last financial year.
  • Though there is a sudden jump in revenues in last 19 months ended Oct-2013, the profits it received in 7 months ended Oct-13 are still questionable unless we see consistent margins.

Considering above facts, my suggestion to investors is to stay away from such investments in IPO.

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Unishire Urban Infra  IPO

Suresh KP


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