Review By on May 26, 2014
Tarini International Ltd, (TIL) has been evolved as an engineering arm to provide financial and technical consultancy related to Hydro Power generation, Transmission and Distribution and Infrastructure. Over a period of time, it has emerged as an integrated player providing turn-key services under one umbrella from designing, construction, generation, transmission and distribution. The company is also professionally competent to undertake projects from concept to commissioning. This entire set of activities, completes the value chain by providing the synergy of backward as well as forward integration.
TIL intends to develop its own 5 MW Kanyatana mini small hydro project in Karnataka under IPP and shall soon be taking up the execution of the same. The project is scheduled to be completed in 2 years’ time and is propose to generate approx. 35 million KWH annually.
Now to meet its long term working capital requirements and to finance our business expansion plans and achieve the benefits of listing on the SME along with Brand Building, the company is coming out with a public issue of 3978000 equity share of Rs. 10 each at a fixed price of Rs. 41 per share. Issue opens for subscription on 09.06.14 and will close on 13.06.14. Minimum application is to be made for 3000 shares and in multiples of it thereon, thereafter. Issue is lead managed by Guiness Corporate Advisors Pvt. Ltd and Link Intime India Pvt Ltd is the registrar to the issue. Post issue shares will be listed on BSE SME.
On performance front, the company incurred loss of Rs. 0.001 crore on a turnover of Rs. 1.22 crore. For nine months ended 31.12.2013 it has earned net profit of Rs.0.02 crore on a turnover of Rs. 0.80 crore. Its equity capital is at Rs. 9.02 crore that will stay enhanced to Rs. 13.00 crore post IPO. If we attribute this earnings on its asking price, then issue is at a P/E of 4000 plus and at a P/BV of 2.8. The company has issued two bonus shares in the ratio of 1 for 1 (on 25.07.11) and 1 for 10 (on 20.03.12). Between 10.08.11 and 17.02.12 it issued 6534460 equity shares at a price of Rs. 12 and Rs. 13.75 per share and now asking from public Rs. 41 per share.
The merchant bankers has rewarded investors in its earlier SME mandates with is market making expertise (?) and may repeat the same in this issue as well. So only HNI’s who have appetite for taking big risk, can park their funds, retails investors must stay away from this issue.
Remark: Avoid this highly priced issue that also has entry barriers.
Review By on May 26, 2014
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 Tarini International Ltd. offers an early investment opportunity in Tarini International Ltd.. A stock market investor can buy Tarini International IPO shares by applying in IPO before Tarini International Ltd. shares get listed at the stock exchanges. An investor could invest in Tarini International IPO for short term listing gain or a long term.
Read the Tarini International IPO recommendations by the leading analyst and leading stock brokers.
Tarini International IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Tarini International IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Tarini International IPO?"
Our recommendation for Tarini International IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Tarini International IPO.
The Tarini International IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Tarini International IPO allotment status to check.
