Sign in | Register

SENSEX  22,628.84  351.61
NIFTY  6,779.40  104.10
« Back to News
NEWS
 
VKS Projects IPO: CRISIL’s rating speaks enough!
29 Jun 2012, 11:24 AM
By VS Fernando, IPO Analyst at India Aarthik Research

VKS Projects: CRISILs rating speaks enough!



Concerns

-Promoters new to investors and non-dividend paying company asking for a hefty share premium

-Yet to place orders for the entire construction equipment and key machinery aggregating to Rs.22.64 crore and yet to identify the office spaces estimated to cost Rs.10 cr

-Negative cash flows from operations for the past five years

-Low order book constraints revenue visibility and the company is unable to win large repeat orders

-Exposed to high concentration risk as orders from two new clients reportedly accounted for 97% of the order book.

-Shifting away from core competency - large portion of order book related to civil constructions

-Largely promoter-driven company and dependence on promoter-director is very high

-CEO does not have any experience in construction or engineering activity

-Co-promoter (main promoters wife) is reportedly not actively involved in the business and lacks technical experience yet draws unjustifiable remuneration from the company

-Promoters cost of holding is less than one-sixth of the IPO price

-Pathetic track record of the IPOs handled by the investment banker

 
Page 1 of 1
Next Story  »
Post your View/Query
 
More on markets:
Market Outlook | Udayan's Comments  | Stock Views  | Broker Recos
 
Start your day with a smile get Cartoon of the day!
HOME
Font Size: S M L
Mobile | Classic
Feedback
© 2014. a Web18 Venture