Review By on December 16, 2015
OFS Technologies Ltd (OFST) is perhaps the last IPO for the calendar year 2015 to bid adieu. Details of the same are given hereunder:
OFST is a technology service provider and takes care of the entire cycle of software product development, maintenance, quality assurance testing and support at affordable costs to its clients.
To part finance its plan for JV, strategic acquisitions and other general purpose fund need, the company is coming out with a maiden IPO of 1704000 equity share of Rs. 10 each at a fixed price of Rs. 25 per share to mobilize Rs. 4.26 crore. Issue opens for subscription on 28.12.15 and will close on 31.12.15. Minimum application is to be made for 6000 shares and in multiples thereon, thereafter. Issue is solely lead managed by V B Desai Financial Services Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE SME. Post IPO its present paid up equity capital of Rs. 4.71 crore (all issued at par) will stand enhanced to Rs. 6.41 crore.
On performance front, the company has posted a weighted average EPS of Rs. 10.53 for last three fiscals on the then paid up equity. For first three months of current fiscal, it has earned net profit of Rs. 0.56 crore on a turnover of Rs. 2.41 crore. If we annualized these and attribute to the fully diluted equity post IPO then the EPS stands at Rs. 3.50 and thus the asking price is at a P/E of 7 plus making it a reasonably priced issue. Peers are trading at a P/E ranging from 35 to 225.
On merchant banker’s front, this is the second mandate and the first one that entered in the fiscal 2013-14 has given average reward.
Considering reasonable pricing of the IPO, investors can plan long term investment, as most of SME IPOs have given some rewards post listings in the process.
Review By on December 16, 2015
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 OFS Technologies Ltd. offers an early investment opportunity in OFS Technologies Ltd.. A stock market investor can buy OFS Technologies IPO shares by applying in IPO before OFS Technologies Ltd. shares get listed at the stock exchanges. An investor could invest in OFS Technologies IPO for short term listing gain or a long term.
Read the OFS Technologies IPO recommendations by the leading analyst and leading stock brokers.
OFS Technologies IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the OFS Technologies IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is OFS Technologies IPO?"
Our recommendation for OFS Technologies IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the OFS Technologies IPO.
The OFS Technologies IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit OFS Technologies IPO allotment status to check.
