Started in 1994, Share India Securities Ltd is engaged in providing brokerage services for securities. The Company offers equity trading, futures and options, currency and commodity derivatives, mutual funds, IPO, and depository services. They are in the business of Share broking and trading services in Equity, Future& Options and Currency Derivatives segments and has the membership in the cash, future and options and currency derivatives segments of both BSE and NSE, Depository Participant services with CDSL and is also providing Mutual fund investment services to clients. Apart from the above they have also entered into proprietary trading (own account trading) activities also. SISL got registered with SEBI as Stock Broker (Member of BSE) in the year 2000 and started the Stock Brokering operations. Later during the year 2007-08 they got registered as a trading and clearing member of Bombay Stock Exchange (BSE). Post the merger of the company it got registered with SEBI as Stock Broker, Trading and Clearing Member of National Stock Exchange of India (NSE) in the year 2012. With the introduction of the Future and option segment into the Indian capital market the company became Member under future & Option (F&O) Segment as well. On performance front, SISL has posted total income/net profits of Rs. 17.37 cr. / Rs. 1.45 cr. (FY14), Rs. 19.12 cr. / Rs. 0.57 cr. (FY14), Rs. 28.74 cr. / Rs. 3.35 cr. (FY15), Rs. 73.99 cr. / Rs. 6.28 cr. (FY16) and Rs. 110.09 cr. / Rs. 8.03 cr. (FY17). Thus it has shown very impressive growth in top and bottom lines. For last three fiscals it has posted an average EPS of Rs. 3.65 on an equity base of Rs. 4.62 crore. It has reported average RoNW of 24.33% for past two years. Issue is priced at a P/BV of 2.27. If we attribute latest earnings on fully diluted equity post issue, then asking price is at a P/E of 12 plus against peers trading at a P/E of 34 to 74. Thus issue appears having priced at reasonable levels. On merchant banker’s front, this is the 39th mandate from its stable in last three years. Out of last 10 recent listings, 1 issue opened at discount, 2 at a premium of 2.5 to 5% and the rest with 20% premium to offer price on the day of listing. As per financials, company's growth is good (only two years financial data available), RoNW is 24.33% for last two fiscals and issue is reasonably priced. As this company is related to equity broking investment, so its future depends on market also. Government steps and low or no return on real estate & gold helped in growth of these kind of companies and we believe this trend to be continue for next 3-5 years, so we give SUBSCRIBE rating to this SME IPO.
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