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Review By Dilip Davda 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 Dilip Davda on December 9, 2013
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
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 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 IPO for short term listing gain or a long term.
Read the Tentiwal Wire IPO recommendations by the leading analyst and leading stock brokers.
Tentiwal Wire IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Tentiwal Wire IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Tentiwal Wire IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Tentiwal Wire IPO.
The Tentiwal Wire IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Tentiwal Wire IPO allotment status to check.
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