Five Core Electronics IPO – Review, Allotment Status, Subscription, Price, Date & more

Five Core Electronics IPO is a new SME IPO drafted with NSE. This SME from the field of audio related electronic items – Five Core Electronics Limited is all set to get listed on exchange as a MidCap item. The SME IPO of Five Core Electronics will be floating in the market by mid 2018. In this article, the details of IPO like the IPO size, IPO offer price, IPO objects, company’s backgrounds and financials etc. have been discussed.


Five Core Electronics IPO Review & Ratings

Five Core Electronics IPO Ratings & Review
Criteria Ratings
Industry Sentiments 6.1/10
Industry Ranking 6.2/10
Company Background 6.1/10
Company Reputation 6.4/10
Competitive Edge  6.3/10
Financial Statements  6.3/10
Popularity Index 6.2/10
Promoters Reputation  6.1/10
Retail Appetite  6.2/10
Top Brokers Review  6.3/10
Overall Ratings  6.2/10
Star Ratings ★★★☆☆

Summary of Five Core Electronics IPO

five core electronics ipoFive Core Electronics, the owner of brand – 5CORE, is a pioneer to introduce multi-core soldering wire of Japanese Technology in India. This medium sized company is coming up with an IPO in this year. Five Core Electronics was initially based in Kolkata and later moved to the capital city Delhi. The brand was established in 1988 and later during expansion Five Core Electronics Limited was incorporated in 2002 in Kolkata to manufacture as well as export PA systems.

The IPO carries 33,33,000 equity shares with a face value of Rs. 10 each. The IPO size is in and around Rs.46.66 crores. Of this, certain shares have been reserved for the market makers. The details of such reservations have been discussed in the later sections of the article.

Five Core Electronics has appointed Sarthi Capital Advisors and Indian Overseas Bank as their lead managers. The registrar to the offer is Bigshare Services.


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Five Core Electronics IPO Date

The release date of the IPO is 9th May 2018 & the issues closes on 11th May 2018.

Five Core Electronics IPO Subscription

  Subscription
Day 1 – May 9, 2018 0.46 times, (1,533,180 shares)
Day 2 – May 10, 2018 0.52 times, (1,747,000 shares)
Day 3  X
Day 4  X
Day 5  X

Once the IPO is released, the details of shares subscribed by the public will be updated here on a regular basis.

Five Core Electronics IPO Allotment Status

The shares allotted to the subscribers will be updated herein after the allotment process is completed by the company.

Five Core Electronics IPO Price Band

The book building process is completed for this IPO. The market makers and the company have decided to keep the offer price at Rs. 140 per share. The offer price is at premium of Rs. 130 per equity share. The factors based on which the offer price is decided is discussed in later sections.

Five Core Electronics IPO Issue Size

Five Core Electronics IPO issue size is Rs. 46.66 crores. The issue constitutes 26.41% of the post-issue paid up capital of the company. The Minimum bid size (lot size) is 1,000 shares.

Five Core Electronics IPO Equity Share Offerings

The IPO of Five Core Electronics carries 33,33,000 equity shares. Out of this offer, 1,69,000 equity shares have been reserved for subscription by market maker to the issue.


Five Core Electronics Limited – Company Overview

Five Core Electronics Limited was incorporated in 2002 in Kolkata to manufacture as well as export PA systems. The Company was founded to enter the audio era with innovative products driven by the needs of professional customers reflecting their commitment to the industry with the use of advanced technology and techniques in the field of Audio Systems.  Improved engineering and aggressive marketing made a significant impact on the sales of the company.

Key members of Five Core Electronics:

  • Amarjit Singh Kalra, Managing Director
  • Surinder Kaur Kalra, Non executive director
  • Jagjit Kaur Kalra, Non executive director
  • Raj Kumar Projapati, Non executive director

Competitive Strengths of Five Core Electronics

  • Experienced promoters
  • Product innovation and design capabilities
  • Brand Value
  • Strong and extensive distribution channels across 56 countries
  • Quality Assurance
  • Strong Customer Base
  • Wide range of Products

Business strategy of Five Core Electronics

  • Establish new standards in terms of consistency and performance
  • To be on every corner of the world map
  • Being highly accountable in our effort to provide excellent products and professional service
  • Offering dynamic products at an economical price as to suit every customer
  • Exploring & innovating and use advanced technologies to produce high quality PA products

Five Core Electronics – Financial Statements

This section provides details of the key financial figures of the company.

Assets of the Company

Assets (in INR & Lakhs)
  Mar’17 Mar’16 Mar’15 Mar’14 Mar’13
Non-Current Asset 1,202 1,028 380 423 377
Current Asset 6,490 3,824 2,941 3,181 1,974
Total Asset 7,692 4,852 3,321 3,604 2,351

Revenue & PAT of the Company

Revenue & Profits (in INR & Lakhs)
  Mar’17 Mar’16 Mar’15 Mar’14 Mar’13
Total Revenue 17062 12249 11349 11180 8558
Profit after Tax (PAT) 149 95 66 85 74

Earnings per Equity Share

Earning per Equity Share (in INR)
  Mar’17 Mar’16 Mar’15 Mar’14 Mar’13
Basic 2.70 1.73 1.32 1.73 1.60
Diluted 2.70 1.73 1.32 1.73 1.60

The numbers certainly show a growing trend. The sales have grew on a constant rate and so has the profit of the company. The EPS has also been on a consistent increment. All and all, the company appears to be a good investment opportunity.


Five Core Electronics Promoters

The promoters of Five Core Electronics are:

  • Mr. Amarjit Singh Kalra
  • Ms. Surinder Kaur Kalra

Promoter Interest in the company.

The promoters can be said to be interested in the promotion of the company to the extent of the Equity Shares held by them as well as their relatives and also to the extent of any dividend payable to them and other distributions in respect of the aforesaid Equity Shares. Further, Promoters may also be interested to the extent of Equity Shares held by or that may be subscribed by and allotted to companies and firms in which either of them are interested as a director, member or partner.

Promoter Interest in property of the company

The Promoters do not have any interest in any property acquired by the Company in last two years or proposed
to be acquired by the Company.


Five Core Electronics IPO Offer Details or Issue Details

Offer 33,33,000 Equity Shares of face value of Rs. 10/- each fully paid of the Company for cash at price of Rs.140/- per Equity Share aggregating Rs. 4666.20 lakhs.
Fresh issue consisting of:
Issue reserved for market makers 1,69,000 Equity Shares of face value of Rs. 10/- each fully paid of the Company for cash at price of Rs.140/- per Equity Share aggregating Rs. 236.60 lakhs.
Net Issue  to public 31,64,000 Equity Shares of face value of Rs. 10/- each fully paid of the Company for cash at price of Rs.140/- per Equity Share aggregating Rs. 4429.60 lakhs.
Of which:
15,82,000 Equity Shares of face value of Rs. 10/- each fully paid of the Company for cash at price of Rs.140/- per Equity Share will be available for allocation to investors up to Rs. 2.00 Lakhs
15,82,000 Equity Shares of face value of Rs. 10/- each fully paid of the Company for cash at price of Rs. 140/- per Equity Share will be available for allocation to investors above Rs. 2.00 Lakhs 
Equity Shares outstanding prior to this Offer 92,87,622 Equity Shares
Equity Shares outstanding after this Offer 1,26,20,622 Equity Shares

Five Core Electronics IPO Issue Object

The objective of raising funds through IPO are:

  • Working capital of the company
  • Working capital of the group company
  • General corporate purpose
  • Repayment of unsecured loans
  • Issue expenses

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Five Core Electronics IPO – Basis of the Offer Price

The Issue Price of Rs. 140/- per Equity Share has been determined by the Company, in consultation with the
book running lead managers on the basis of an assessment of market demand for the Equity Shares through the Fixed Price Process and on the basis of the following qualitative and quantitative factors. The face value of the Equity Share of the Company is Rs. 10/- and Issue Price is 14.10 times the face value.

The qualitative factors considered while deciding the issue price:

  • Experienced promoters
  • Product innovation and design capabilities
  • Brand Value
  • Strong and extensive distribution channels across 56 countries
  • Quality Assurance
  • Strong Customer Base
  • Wide range of Products

The quantitative factors considered while deciding the issue price:

  • Earning per share – On a standalone basis, the weighted average EPS for the latest three years is Rs. 2.15
  • Price/earning ratio – The PE ratio for FY 2016-17 is Rs. 51.85 and the weighted average PE ratio is 65.12
  • Return on Net Worth – The RoNW on a weighted average basis on a standalone basis is 5.17%. Minimum Return on Total Net Worth after Issue needed to maintain Pre-Issue EPS for the year ended March 31, 2017 is 3.53%
  • Net Asset Value – NAV per Equity Share – The net asset value per equity share for FY 2016-17 is Rs. 42.38. Post the issue, the NAV per share would be Rs. 76.44

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Five Core Electronics IPO Lead Managers

Lead Managers
Sarthi Capital Advisors Private Limited
Indian Overseas Bank

Five Core Electronics IPO Registrar to offer

Registrar to offer
Bigshare Services Private Limited

Five Core Electronics IPO Review by Top 10 Stock Brokers

Top Stock Brokers Review Company Reputation Competitive Edge Financial Statement Popularity Index Promoters Reputation
Angel Broking 6.2/10 6.3/10 6.2/10 6.1/10 6.1/10
Sharekhan 6.2/10 6.1/10 6.6/10 6.1/10 6.2/10
Kotak Securities 6.3/10 6.2/10 6.3/10 6.1/10 6.3/10
ICICI Direct 6.3/10 6.3/10 6.7/10 6.1/10 6.1/10
IIFL 6.2/10 6.2/10 6.8/10 6.0/10 6.1/10
Edelweiss 6.2/10 6.3/10 6.3/10 6.3/10 6.2/10
Zerodha 6.3/10 6.1/10 6.2/10 6.1/10 6.0/10
5Paisa 6.1/10 6.1/10 6.3/10 6.1/10 6.1/10
Karvy 6.3/10 6.3/10 6.2/10 6.1/10 6.1/10
Motilal Oswal 6.1/10 6.1/10 6.6/10 6.3/10 6.2/10

Five Core Electronics IPO Grey Market Premium

The grey market price for Five Core Electronics IPO will open 15 days before the release of the IPO. A fortnight before the release of the IPO, the unofficial grey market would open and the securities would be traded. The kostak rate ie. the grey market price would also be floating in the market upon opening of the grey market.


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Five Core Electronics IPO News

News 1 : FIVE CORE ELECTRONICS LTD – STOCK PRICE


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