Review By Dilip Davda on September 24, 2011
Taksheel Solutions Ltd.(TSL): Taksheel, a company promoted by Kuchana family, is a comprehensive IT solutions company focused on providing technology solutions and services for the enterprises engaged in financial service industry, which is one of the industries driven by technology all over the world. With 12 years of presence in the industry the company has gained excellent business domain knowledge and experience in deploying sophisticated and secure financial data and analytical solutions.
Hands on knowledge of several products, in the financial services environment, enables TSL to deliver exceptional results to the clients in terms of customization/ implementation of a third party, modular, or legacy systems. The company got the ability to integrate third party applications/solutions into its software frameworks, such as 'Integrted Wealth Management Framework' coupled with global delivery model and ISO 2001 quality standards help its clients meet their business objectives in shorter time frames even under tighter IT budgets. TSL offers cost-effective solutions through its Onsite, Offsite and Offshore development methodology by leveraging its global delivery model and utilizing delivery centers based in Hyderabad, India, and New Jersey, USA. Some of their customers include Merryl Lynch and Bank of America.
Now the company is planning to set up software development centers at Hyderabad and Warangal and also mulls acquisition and strategic initiatives with a suitable partner along with generation of corpus fund. To part finance this, the company is offering 5500000 equity share of Rs. 10 each within a price band of Rs. 130-150 via book building process. The issue opens for subscription on 29.09.11 and closes on 04.10.11. PNB Investment Services Ltd. is the sole BRLM while Bigshare Services Pvt. Ltd. is acting as registrar to the issue. Minimum application is to be made for 45 shares and in multiples thereafter. Shares will be listed on BSE and NSE. CARE has assigned IPO Grade 2 to this issue indicating at Below Average Fundamentals of the company. This is the first offer from BRLM.
On financial front, while company posted higher top and bottom lines for last 3 years, its net profit of Rs. 27.42 crore on a turnover of Rs. 147.26 crore gives and EPS of Rs. 12.55 on expanded equity post this issue translating in to P/E of 10 to 12 based on lower and higher price band as well as around 2.5 P/BV. This compares well with peers and justified.
Invest for medium term gains.
Review By Dilip Davda on September 24, 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 Taksheel Solutions Ltd. offers an early investment opportunity in Taksheel Solutions Ltd.. A stock market investor can buy Taksheel Solutions IPO shares by applying in IPO before Taksheel Solutions Ltd. shares get listed at the stock exchanges. An investor could invest in Taksheel Solutions IPO for short term listing gain or a long term.
Read the Taksheel Solutions IPO recommendations by the leading analyst and leading stock brokers.
Taksheel Solutions IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Taksheel Solutions IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Taksheel Solutions IPO?"
Our recommendation for Taksheel Solutions IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Taksheel Solutions IPO.
The Taksheel Solutions IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Taksheel Solutions IPO allotment status to check.
