I applied for the IPO but did not get any allotment. Since listing, it is trading at a steep premium to offer price so there is no margin of safety at current price hence did not buy any from the secondary market.
No idea about CMI Infraprojects. Can you please point me to their prospectus?
Dynamic cables is a manufacturer of electrical cables and their customers are cash strapped state electricity boards who are having troubles paying their dues to the company. Company has large receivables and receivables past 6 months due is almost 50% their net-worth (pre-ipo). Company even filed lawsuits against their customers for recovery of dues so there is uncertainty about ability of the company to recover these dues. They should have made some provision against unrecoverable receivables but I could not find any. They also have a high customer concentration and low margins, which means even if one customer defaults, entire year’s worth of profits will written off.
Normally I don’t invest in companies with huge receivables and when company is raising IPO money with the sole objective of enhancing working capital or general corporate purposes. there is good chance that such companies treat shareholder money as free money.