Review By on May 17, 2013
While we have a main line IPO of Just Dial opening on 20.05.13, as usual, a sudden announcement of BSE SME IPO came in. Onesource Techmedia Ltd (OTL) is coming out with an IPO for Rs. 2.80 crore fund mobilization plans. Details of the IPO are as under:
OTL is engaged in the business of distribution and trading of media contents in the form of audio and video cassettes, compact disks etc. The company has royalty agreements with various media houses so that it can market the contents of Hindi devotional, Bengali devotional, Bengali folk songs, Rajasthani Devotional, Rajasthani Folk, Bhojpuri Bhajan, Bhojpuri film, Animation movie – Jai Vigneswara, Tamil TV serials in India and abroad. OTL is also engaged in event management for corporate and other small events.
The company is planning expansion of business and office infrastructure, brand building etc and to part finance the same it is offering 2000000 equity share of Rs. 10 each at a fixed price of Rs. 14 per share. The issue opens for subscription on 17.05.13 and will close on 21.05.13. Guiness Corporate Advisors Private Limited is the sole lead manager to the issue. Purva Sharegistry (I) Pvt Ltd is the registrar to the issue. Post issue, shares will be listed on BSE SME. Minimum application is to be made fo 10000 shares and in multiples thereof thereafter.
On the company’s performance front, it has clocked in an average EPS of Rs. 0.06 with inconsistency in performance. Its NAV as on 30.11.12 is Rs. 14.02. Thanks to issue of 47500 equity shares at Rs. 1000 per share in March 2011 that helped it announcing bonus in the ratio of 2 for 1 in November 2012.
On merchant banker’s front, it had so far mandate for 6 SME IPOs and all of them gave marginal gains on debut day, due to market making effort by it with thin volumes.
With this float, the total equity will rise to Rs. 6.49 crore and its earnings for the fiscal 2011-12 with an EPS of Rs. 0.07 on old equity will get further diluted and thus the asking price is much above 289 plus P/E and thus not worth considering.
Review By on May 17, 2013
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 Onesource Techmedia Ltd. offers an early investment opportunity in Onesource Techmedia Ltd.. A stock market investor can buy Onesource Techmedia IPO shares by applying in IPO before Onesource Techmedia Ltd. shares get listed at the stock exchanges. An investor could invest in Onesource Techmedia IPO for short term listing gain or a long term.
Read the Onesource Techmedia IPO recommendations by the leading analyst and leading stock brokers.
Onesource Techmedia IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Onesource Techmedia IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Onesource Techmedia IPO?"
Our recommendation for Onesource Techmedia IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Onesource Techmedia IPO.
The Onesource Techmedia IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Onesource Techmedia IPO allotment status to check.
