Review By on September 22, 2016
Diksat Transworld Ltd (DTL) is engaged in the business of Media and Entertainment through the mediums of Television, Newspapers and Movies. DTL is an established television broadcaster and newspaper in India, headquartered from Southern India. The Company started its operations on small scale in the year 1999, and has since expanded horizontally over the years to cover various geographical areas via setting up of various channels and also via circulation of its newspaper. Currently, it owns four satellite channels, namely; “Win TV (Tamil)”, “Win TV (U.P.)”, “Cuisine TV”, and “Aaseervatham TV”, and also circulates a daily newspaper named “Tamil News”. The company has recently ventured into production of movies under a separate division – ‘GR8 Talkies’ and has recently released the first Tamil movie.
For listing gains the company is coming out with a maiden IPO of 4608000 equity share of Rs. 10 each via book building route with a price band of Rs. 36 – Rs. 40 per share as offer for sale to mobilize Rs. 16.59 cr. to Rs. 18.43 cr. based on lower and upper price band. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Issue opens for subscription on 29.09.16 and will close on 06.10.16. Issue is solely managed by Aryaman Financial Services Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. After allotment, shares will be listed on BSE SME. It issued equity shares at par till 1999 and thereafter issued all equity at a price of Rs. 110 per share. In September 2013 it issued bonus shares in the ratio of 4 for 1. Being offer for sale, its equity remains at Rs. 17.21 crore post IPO.
On performance front, it has shown inconsistency in top and bottom lines for last five fiscals. Its turnover / net profit s were Rs. 7.80 cr. / Rs. (-0.10 cr.) (FY12), Rs. 9.37 cr. / Rs. 0.15 cr. (FY13), Rs. 9.81 cr. / Rs. (-0.001 cr.) (FY14), Rs. 8.54 cr. / Rs. 0.26 cr. (FY15) and Rs. 9.14 cr. / Rs. 0.23 cr. (FY16). Based on latest earnings, its offer price is at a P/E of 276 to 307 based on lower and upper price band.
On merchant banker’s front, this is the 12th mandate from its stable in last three years and out of earlier mandates 10 that got listed have given average rewards on listing day.
Conclusion: Being highly priced IPO, only risk savvy cash surplus investors may consider long term investment.
Review By on September 22, 2016
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
The initial public offer (IPO) of Diksat Transworld Ltd. offers an early investment opportunity in Diksat Transworld Ltd.. A stock market investor can buy Diksat Transworld IPO shares by applying in IPO before Diksat Transworld Ltd. shares get listed at the stock exchanges. An investor could invest in Diksat Transworld IPO for short term listing gain or a long term.
Read the Diksat Transworld IPO recommendations by the leading analyst and leading stock brokers.
Diksat Transworld IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Diksat Transworld IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Diksat Transworld IPO?"
Our recommendation for Diksat Transworld IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Diksat Transworld IPO.
The Diksat Transworld IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Diksat Transworld IPO allotment status to check.
