Sham Foam IPO

About this issue

Sham Foam is an SME issue priced at ₹130 a share. One lot is 1,000 shares, which costs ₹1,30,000. The book is 2.40 times subscribed overall. The grey market premium is +₹4 (+3.1%), which is an informal figure and not a quoted price. Our call is Risky, on 67% of our checks.

Segment

SME

Price

₹130

Lot size

1,000 shares

One lot costs

₹1,30,000

Issue size

₹38 Cr

Grey market premium

+₹4 (+3.1%)

Subscribed

2.40x

Our call

Risky

What we checked

• Profitable in the latest yearPAT ₹8.65 Cr
• Profit grew year on yearPAT +142%
• Revenue grew year on yearRevenue +13%
• Borrowing under half of net worthDebt/net worth 0.19
• Return on net worth above 15%RoNW 41.0%
• Post-issue P/E under 40P/E 17.3
• Price to book under 6P/B 5.2
• Majority is fresh capital100% fresh issue
• Promoters keep at least half72.9% held post-issue
• Anchor investors participatedNo anchor book
• Overall book more than 10× covered2.4× overall
• Lead manager above segment medianCorporate Makers Capital Ltd.: 10 past issues, -1% avg vs +8% segment median

3 further checks could not be judged, because the issue did not disclose enough. They count neither for nor against.