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Max Alert IPO: Investor may have to wait for decent returns
28 Jun 2012, 10:55 AM
By VS Fernando, IPO Analyst at India Aarthik Research

Max Alert Systems: SEBI requires maximum alert to prevent 'market-makers' turning into manipulators!



Concerns

- Promoters new to investors; profitability far from impressive; non-dividend paying company

-Unrelated and unconvincing diversification

-Conflict of business interest within group companies

-A majority of group companies are into losses

-Negative net cash flow from MASLs operations in four out of last five years

-For a part-use of the `Registered Office the public company pays a hefty rent to a group company which itself has sub-let the office belonged to a third party -IPO is meant for funding crusher project whose land is yet to be identified

-Reserves not even Rs 2 crore yet, asking for a premium of Rs 4 crore

-Promoters cost of holding is just 52 paise as compared to the IPO price of Rs 20

-Pathetic post-list performance of the IPOs handled by the investment banker

 
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