Review By Dilip Davda on September 28, 2011
Indo Thai Securities Ltd. (ITSL):
Stock Broking Company based at Indore and providing all financial sector related services under one roof. . Now it is proposing to expand its infrastructure and network. To part finance this the company is coming out with a book building process IPO. ITSL is offering 4000000 equity share of Rs. 10 each within a price band of 70-84. The issue opens for subscription on 30.09.11 and closes on 05.10.11. Minimum application is to be made for 80 shares and in multiples thereafter. Shares will be listed on BSE and NSE.
Corporate Strategic Allianz Ltd. is the sole BRLM that brought two IPOs in the recent past and both has given positive returns on the listing day. Sharepro Services (India) Pvt. Ltd. is the registrar to the issue. CARE has assigned IPO Grade 2 to this issue, indicating at below average fundamentals of the company.
On performance front, the company made progress from 2007 to 2010 and suffered a set back in 2011. For the fiscal 2010-11 it posted net profit of Rs. 1.06 crore on a total income of Rs. 4.55 crore resulting in an EPS of Rs. 1.77 on existing capital. If this is applied to enhanced equity post this issue, then it stands at Rs. 1.06 and thus the asking price is at a P/E of 70 to 84 and on a NAV of Rs. 12.94 it is being made at a 5.5 to 6.5 P/BV and is a costly bet.
Review By Dilip Davda on September 28, 2011
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 Indo Thai Securities Ltd. offers an early investment opportunity in Indo Thai Securities Ltd.. A stock market investor can buy Indo Thai Securities IPO shares by applying in IPO before Indo Thai Securities Ltd. shares get listed at the stock exchanges. An investor could invest in Indo Thai Securities IPO for short term listing gain or a long term.
Read the Indo Thai Securities IPO recommendations by the leading analyst and leading stock brokers.
Indo Thai Securities IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Indo Thai Securities IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Indo Thai Securities IPO?"
Our recommendation for Indo Thai Securities IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Indo Thai Securities IPO.
The Indo Thai Securities IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Indo Thai Securities IPO allotment status to check.
