Review By on September 17, 2017
Trident Taxofab Ltd. (TTL) is a multi-product fabric trading Company and its range includes home furnishing, bed sheets, scarf, pareos, suiting and shirting and technical textile fabrics, etc. Company’s product portfolio consists of finished, unfinished fabrics and value added fabrics.
To part finance its working capital and general corpus fund needs, TTL is coming out with a maiden IPO of 1176000 equity share of Rs. 10 each at a fixed price of Rs. 30 per share to mobilize Rs. 3.53 crore. Issue opens for subscription on 21.09.17 and will close on 26.09.17. Minimum application is to be made for 5000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is jointly lead managed by Guiness Corporate Advisors Pvt. Ltd. and Indian Overseas Bank (IOB). Karvy Computershare Pvt. Ltd. is the registrar to the issue. Having issued initial equity at par, it raised further equity in the price range of Rs. 35 to Rs. 100 per share (between January 2010 to May 2017) and has also issued bonus shares in the ratio of 7 for 1 in April 2017. Post issue, its current paid up equity capital of Rs. 2.82 crore will stand enhanced to Rs. 4 crore. Issue constitutes 29.43% of fully diluted post issue paid up equity capital of the company.
On performance front, for last four fiscals TTL has reported turnover/net profits of Rs. 60.52 cr. / Rs. 0.22 cr. (FY14), Rs. 62.65 cr. / Rs. 0.18 cr. (FY15), Rs. 66.03 cr./ Rs. 0.06 cr. (FY16) and Rs. 76.19 cr. / Rs. 0.34 cr. Thus while top line has been seeing upward trends, bottom line has witnessed roller coaster ride. For last three fiscals, it has posted an average EPS of Rs.0.70 and average RoNW of 5.93%. Issue is priced at a P/BV of 1.93. If we attribute latest earnings on fully diluted post issue equity then asking price is at a P/E of 35 plus against industry average of 20. Thus issue is priced aggressively.
On merchant banker’s front, from Guiness this is the 18th mandate from its stable in past three years and out of last 10 listings, 3 issues opened at discount, 1 at par and the rest with 3 to 20% premium on offer price on the listing day. From IOB this is the 5th mandate in last two years and out of last 4 listings all opened at a premium ranging from 12 to 20% on the day of listing.
Conclusion: Considering aggressive pricing, cash surplus risk savvy investors may consider investment for long term.
Review By on September 17, 2017
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 Trident Texofab Ltd. offers an early investment opportunity in Trident Texofab Ltd.. A stock market investor can buy Trident Texofab IPO shares by applying in IPO before Trident Texofab Ltd. shares get listed at the stock exchanges. An investor could invest in Trident Texofab IPO for short term listing gain or a long term.
Read the Trident Texofab IPO recommendations by the leading analyst and leading stock brokers.
Trident Texofab IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Trident Texofab IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Trident Texofab IPO?"
Our recommendation for Trident Texofab IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Trident Texofab IPO.
The Trident Texofab IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Trident Texofab IPO allotment status to check.
