Review By on December 9, 2013
Since inception of SME platform, we witnessed forty two IPOs coming for listing on BSE SME platform and four on NSE Emerge platform. As on last Monday (09.12.13), we marked trading in just 18 counters of BSE SME out of 41 listed one as Captain Poly has yet to be listed. On last Friday the trades took in just 11 counters. Despite market making, such scenario is really raising eyebrows.
Amidst such scenario, we have yet another BSE SME IPO which is 43rd in opening its Rs. 2.12 crore maiden IPO on 11.12.13. Details of the same are as under:
Tentiwal Wire Products Ltd. is a UP based company engaged in manufacturing Polyester & Polypropylene Insulated Winding Wire for Submersible Motor Pumps and has expanded their business in various other types of Winding Wires since then. It manufactures winding wire products on made-to-order basis for OEMs. To meet general corpus finds and reduce its indebtedness, the company is offering 1630000 equity share of Rs. 10 each at a fixed price of Rs. 13 per share (i.e. at a premium of Rs. 3 per share) to mobilize Rs. 2.12 crore. The issue opens on 11.12.13 and will close on 16.12.13. Minimum application is to be made for 10000 shares and in multiples thereof, thereafter. Post allotment, shares will be listed on BSE SME. Hem Securities it the sole lead manager of the issue and Sharepro Services India Pvt. Ltd is the registrar to the issue. Post issue the paid up equity will be Rs. 5.42 crore. Entire pre-issue equity to promoters is at par value with last allotment of 601800 shares on 02.03.13
The company has posted an average EPS of Rs. 1.51 for last three fiscals and for first three months of the current fiscal ended 30.06.13, it has earned net profit of Rs. 0.08 crore on a turnover of Rs. 5.57 translating into EPS of Rs. 0.22 (not annualized). Their trading activity has generated no revenue for Q1 against Rs. 17.82 crore for fiscal 2012-13. If we attribute these earnings on annualized basis on expanded equity, then it amounts to an EPS of Rs. 0.06 and based on it the asking price is at a P/E of 200 plus against its peers that are trading at a P/E of 2 to 4. Its merchant banker has poor track record so far.
Review By on December 9, 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 Tentiwal Wire Products Ltd. offers an early investment opportunity in Tentiwal Wire Products Ltd.. A stock market investor can buy Tentiwal Wire Products IPO shares by applying in IPO before Tentiwal Wire Products Ltd. shares get listed at the stock exchanges. An investor could invest in Tentiwal Wire Products IPO for short term listing gain or a long term.
Read the Tentiwal Wire Products IPO recommendations by the leading analyst and leading stock brokers.
Tentiwal Wire Products IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Tentiwal Wire Products IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Tentiwal Wire Products IPO?"
Our recommendation for Tentiwal Wire Products IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Tentiwal Wire Products IPO.
The Tentiwal Wire Products IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Tentiwal Wire Products IPO allotment status to check.
