Atam Valves Limited

LISTED

SME IPO · IPO Guide

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Issue Price

₹40

Listed On

06 Oct 2020

Listing Price

₹40 (+0.00%)

Current Price LIVE

₹40 (+0.00%)

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Lot Size Calculator

Application	Lots	Shares	Amount
Retail	2	6,000	₹2,40,000
HNI Min	3	9,000	₹3,60,000

Company has shown zig-zag results and issue is priced at P/E of around 33 as per FY20 earnings, which is over priced in current scenario. Performance of BRLM very poor. So we give AVOID rating to this SME IPO.

As on Date	Combined (QIB + NII)	RII	Total
Shares Offered / Reserved	5,34,000	5,34,000	10,68,000
Day 1 18-09-20	9,33,000 (1.75)	84,000 (0.16)	10,17,000 (0.95)
Day 2 21-09-20	11,73,000 (2.20)	6,21,000 (1.16)	17,94,000 (1.68)
Day 3 22-09-20	12,21,000 (2.29)	8,73,000 (1.63)	20,94,000 (1.96)
Day 4 23-09-20	12,21,000 (2.29)	10,95,000 (2.05)	23,16,000 (2.17)
Day 5 24-09-20	12,21,000 (2.29)	10,95,000 (2.05)	23,16,000 (2.17)
Day 6 25-09-20	13,95,000 (2.61)	18,84,000 (3.53)	32,79,000 (3.07)

Atam Valves Limited, started in 1982 and based in Jalandhar - Punjab, is engaged in the business of Valves. Company, an ISO 9001:2015 and ISO 14001:2015 certified, is engaged in the business of manufacturing bronze, cast iron, cast steel, carbon steel, stainless-steel, forged steel as well as gun metal industrial valves of various types and size ranging from 8 mm up to 350 mm. They manufacture boiler mountings and supply various types of valves and fittings, steam traps and strainers and have a significant customer base in the industry. The products are supplied in India as well as all over the world under two brands, viz., ATAM and FEBI. Under brand ATAM, they deal in Valves and fittings, steam traps and strainers. Under brand FEBI, they deal in Ball-Valves. AVL exports in more than 13 regions, viz., United States, Kuwait, Kenya, South Africa, Malaysia, Dubai, Indonesia, Australia, Oman, Philippines, Ethiopia, Nepal and United Kingdom. As on July 31, 2020, company employed 201 personnel. On the financial performance front, for the last three fiscals, AVL has reported turnover/net profits (loss) of Rs. 17.32 cr. / Rs. 0.51 cr. (FY18), Rs. 18.41 cr. / Rs. 0.65 cr. (FY19) and Rs. 16.33 cr. / Rs. 0.49 cr. (FY20). So company has shown zig-zag results. For the last three fiscals, company has posted average EPS of Rs. 1.87 and an average RoNW of 12.37%. The issue is priced at a P/BV of 1.76 based on its NAVs of Rs. 22.68 post issue. As per FY20 earnings issue is priced at P/E of 33. So as per FY20 earnings issue looks very aggressively priced. Comparison between listed peers are shown in above table. On BRLM's front for Fedex Securities Limited, this is the 11th IPO in last three fiscals. Out of last 10 listing, 1 opened below issue price and the rest with premiums ranging from 0% to 50% on the day of listings. As of now from last 10 IPOs, seven are trading below issue price, and remaining above issue price. ( As on 15.09.2020 ) Company has shown zig-zag results and issue is priced at P/E of around 33 as per FY20 earnings, which is over priced in current scenario. Performance of BRLM very poor. So we give AVOID rating to this SME IPO.

Fresh Issue

1
Repayment/ Prepayment of certain secured borrowings availed by the Company ( Rs 3.14 Cr )General corporate expenses ( Rs 1.04 Cr )
2
Repayment/ Prepayment of certain secured borrowings availed by the Company ( Rs 3.14 Cr )
3
General corporate expenses ( Rs 1.04 Cr )
4
All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decision
5
Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published on this applicatio
6
With entry barriers, SEBI wants only well informed investors to participate is such SME offer
7
With crazy recent listings, SME IPOs have started drawing attention of investors across the boar
8
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
9
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

4 Comments

I
IPO Guru 23 Sep 2020, 07:51

not active in gray market
R
Rishi shah 23 Sep 2020, 01:00

gmp kya hai
H
Harshad 22 Sep 2020, 13:46

i think isme paisa banega
B
bhavin 21 Sep 2020, 23:35

apply or not ?

Period	Total Income	Total Expenses	Profit After Tax (PAT)
FY20	16.33	15.65	0.49
FY19	18.41	17.53	0.65
FY18	17.32	16.56	0.51

Open Date	Sep 18, 2020
Close Date	Sep 25, 2020
Allotment Date	Oct 01, 2020
Listing Date	Oct 06, 2020
Face Value	₹ 10 Per Equity Share
Issue Price	₹ 40 Per Equity Share
Issue Size	Fresh Issue of Up to 11,25,000 with aggregating up to Rs 4.5/- Cr
Retail Min Lot	1 Lot (3,000 Shares - ₹ 1,20,000)
Lead Manager	Fedex Securities Limited

Atam Valves Limited

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