Aakash Exploration Services Limited

LISTED

SME IPO · IPO Guide

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Issue Price

₹56

Listed On

27 Apr 2018

Listing Price

₹55.75 (-0.45%)

Current Price LIVE

₹55.75 (-0.45%)

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Lot Size Calculator

Application	Lots	Shares	Amount
Retail	2	4,000	₹2,24,000
HNI Min	3	6,000	₹3,36,000

As per financials, company's performance is good, RoNW is 6.66% for last three fiscals and issue is aggressively priced as per latest earnings. So we give AVOID rating to this SME IPO as per current market situation.

Started in 2007, Ahmedabad - Gujarat based company, Aakash Exploration Services Limited is engaged in providing services for Oil and Gas Exploration. The company is an ISO 9001 14001 and OHSAS 18001 certified company. It provides Mobile Work Over Rigs, Hot Oil Circulation Unit, Air Compressor, Mobile Steaming Unit (Boiler), Mobile Pumping Unit, Crane, Manpower Services, SRP Unit supply and Maintenance and other similar Services. Aakash Exploration is providing Oil and Gas field Services to M/S Oil & Natural Gas Corporation Ltd (A Govt. of India Company), Ahmedabad, Mehsana and Hazira Projects and also providing similar services to private oil field operators namely GSPCL, Cairn, Essar, Great Eastern Energy, IOC, Niko, OIL, Price Petroleum etc to their extreme satisfaction. Aakash Exploration Services Limited is a national group of Oil and Gas Field Services with a staff of more than 250 employees and operating in more than 7 states of India. As per financial performance, AES has posted total income/net profits of Rs. 9.45 cr. / Rs. 0.14 cr. (FY13), Rs. 13.90 cr. / Rs. 0.49 cr. (FY14), Rs. 23.45 cr. / Rs. 1.01 cr. (FY15), Rs. 25.63 cr. / Rs. 0.44 cr. (FY16) and Rs. 33.80 cr. / Rs. 1.10 cr. (FY17). For upto Q3 of FY18 it has earned net profit of Rs. 0.68 cr. on a turnover of Rs. 31.26 crore. It suffered a setback in bottom line for FY 16, except that company has delivered consistent growth over the years. For last three fiscals it has posted an average EPS of Rs. 2.25 and an average RoNW of 6.66%. Issue is priced at a P/BV of 1.57 based on its NAV of Rs. 35.67 as on 31.12.17. If we annualise latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 41 against industry average of 24. Thus issue is priced aggressively. Its listed peers are trading at a P/E of around Aban Offshore (5), Deep Industries (7) and Selan Exploration (25) – (as on 11.04.18 closing on BSE/NSE). On merchant banker's front, this is the 7th IPO in last six fiscals. Out of last 5 listings, 1 opened at par and the rest 4 with a premium ranging from 1.4% to 45% on the day of listing. As per financials, company's performance is good, RoNW is 6.66% for last three fiscals and issue is aggressively priced as per latest earnings. So we give AVOID rating to this SME IPO as per current market situation.

Fresh Issue

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Payment of Cash Credit FacilitiesRepayment of Unsecured LoansWorking Capital RequirementGeneral Corporate PurposeIssue Expense
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Payment of Cash Credit Facilities
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Repayment of Unsecured Loans
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Working Capital Requirement
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General Corporate Purpose
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Issue Expense
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All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decision
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Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published on this applicatio
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With entry barriers, SEBI wants only well informed investors to participate is such SME offer
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With crazy recent listings, SME IPOs have started drawing attention of investors across the boar
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However, as SME issues have entry barriers and continued low preference from broking community, any reader taking decisions based on any information published here does so entirely at own ris
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Above information is based on information available as on date coupled with market perception

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Disclaimer

No financial information whatsoever published herein, should be construed as an offer to buy or sell securities, or as information to make investment decisions, or as an official confirmation of any transaction. All matter published herein is purely for educational and informational purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

💬 Community Discussion

10 Comments

I
IPO Guru 20 Apr 2018, 12:52

@raju, if there is price range like 25-27 and one applies at highest price like 27 or apply at cut off price, than in both case chances of allotment will be same. But if application is made below 27, then allotment chances are only if company agrees for allotment at lower price and chances of this are very low.
R
raju 19 Apr 2018, 21:54

i thought if we apply for higher rate then our chances for allotment is more
R
raju 19 Apr 2018, 21:53

ok ipo guru thanks for suggestion
I
IPO Guru 19 Apr 2018, 19:46

@raju, chances are same if you apply using cut off or price both are same
R
raju 18 Apr 2018, 23:00

in mmp industries i apply for two applicatation with price of 188 but did not get any allotement
R
raju 18 Apr 2018, 23:00

ipo guru want to know that if we apply at the cut off price then our chance for getting allotment is higher????
R
raju 18 Apr 2018, 22:59

i want to know about price bid and cut off price
R
raju 18 Apr 2018, 22:58

hello ipo guru i want to know the allotment process for sme ipo
A
Ankit patel 18 Apr 2018, 08:32

Aakash Exploration service Limited kevo 6 ipo
P
pankaj 17 Apr 2018, 20:50

Guru what's about this?? I think oil and gas exploration is good sector....so chance for listing gain...

As on Date	QIB	RII	Total
Shares Offered / Reserved	8,55,000	8,55,000	17,10,000
Day 1 17-04-18	4,00,000 (0.47)	24,000 (0.03)	4,24,000 (0.25)
Day 2 18-04-18	9,36,000 (1.09)	3,42,000 (0.40)	12,78,000 (0.75)
Day 3 19-04-18	13,60,000 (1.59)	11,78,000 (1.38)	25,38,000 (1.48)

Period	Total Income	Total Expenses	Profit After Tax (PAT)
upto Q3 FY18	31.26	30.10	0.68
FY17	33.80	32.13	1.10
FY16	25.63	24.92	0.44
FY15	23.45	21.94	1.01
FY14	13.90	13.10	0.49
FY13	9.45	9.22	0.14

Open Date	Apr 17, 2018
Close Date	Apr 19, 2018
Allotment Date	Apr 25, 2018
Listing Date	Apr 27, 2018
Face Value	₹ 10 Per Equity Share
Issue Price	₹ 56 Per Equity Share
Retail Min Lot	1 Lot (2,000 Shares - ₹ 1,12,000)
Lead Manager	Monarch Networth Capital Limited

Aakash Exploration Services Limited

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