Scarnose International Limited was incorporated in year 2011. Scarnose is involved in the business of manufacturing and trading of agricultural commodities (basically belonging to textile and cotton sector) and they have come up with an IPO. Know all the details!

About the Company:

The company is being in the textile and cotton sector from past 10 years and are one of the trusted suppliers of cotton products.

The Company had firmed orders and even tied up with many mills and factories wherein the Company sales cotton bales to them. The Company had started manufacturing readymade ladies wear kurtis, salwar kameez, suits, etc on job work basis and supply to the local vendors.

About an IPO:

◇ Date of opening: 14th June, 22

◇ Date of closing: 17th June, 22

◇ Issue price: ₹55 per share

◇ Lot size: 2000 shares

◇ Allotment date: 22nd June, 22

◇ Listing date: 27th June, 22

◇ The minimum investment required to be done is 1,10,000rs.

◇ Mr. Shah Vimalkumar Mishrilal and Mr. Hitesh Loonia are the company promoters.

Financials:

◇ Earnings per share: ₹13.68

◇ Price/Earnings (P/E) Ratio: 3.66

◇ Return on Net worth (RoNW): 11.81%

◇ Net Asset value (NAV): ₹15.12 per share.

Pros and Cons:

Pros:

◇ The company has shown a very good growth in the last 3 years. The revenue has gone from 12 Crores in FY20 to 95 Crores in FY22. However, if you see the Cash Flow from Operations in the last 3 years, it is negative, so be careful there.

◇ Lately they have entered into manufacturing of clothes which in future might increase the margins.

Cons:

◇ Though the company has reported a growing pattern for its top and bottom lines, its low margin raises concerns.

◇ Based on petty earnings, its IPO is priced greedily.

◇ A low post-IPO equity capital base indicates longer gestation for migration to the main board.

◇ They have ROE of just 3%.

◇ Asking P/E of 50x. We don't know on what basis they are asking this much valuation.

Review:

◇ There is no harm in ignoring this pricy issue. However do your own research too.

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Silver Pearl Hospitality and Luxury Spaces Ltd. IPO_Know all details here

Silver Pearl Hospitality and Luxury has come up with an IPO. Apply or Avoid? Know all details here.

About the company:

Silver Pearl Hospitality and Luxury spaces Ltd. has set up its benchmark in hospitality sector. They operate in mid-priced hotel sector and have all their hotels, cafes and restaurants operating under brand name of "Osiya".

The company is direct owner of the hotel properties and is part of their business model, several other things which are included in their business model are long-term lease or license arrangements for the land on which company constructs its hotels, long-term leases for existing hotels or homestays which are owned by third parties, and marketing agreements.

About an IPO:

◇ Silver Pearl IPO will be open for subscription from 6th June to 9th June,2022.

◇ The price band fixed per share is Rs.18 per share.

◇ One lot consists 8000 shares.
◇ The minimum investment require is Rs.144000.

◇ Allotment of shares will be done on 14th june, 2022.

◇The listing of shares will be happen on 17th June, 2022.

Financials:

Pros and Cons:

Pros:

◇ The company as mentioned above is having increasing profits.

◇Operational Efficiency and good customer experience.

Cons:

◇ Asking P/E of 120 is unbelievable and unexpectable for many.

◇ The profit is growing however revenue is quite less as com[pared to competitors.

◇ Dispute between promoter Mr. Rajesh Kumar Negi and his brother is not considered good for health of the company.

Recommendation:

◇ I, personally, would not show strong interest in this IPO because of above mentioned cons. 

◇ However it is not any recommendation and I would encourage you to do your won research.

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