Chittorgarh logo
Contact Us   Facebook   Go
IPO
  • IPO Dashboard
  • Current IPO List
  • IPO Calendar
  • Performance Tracker
  • Grey Mkt Premiums
  • Recommendations
  • IPO Ratings
  • IPO Reviews
  • Basis of Allotment
  • IPO Alerts
  • IPO Prospectus Docs
  • IPO Reports
  • IPO News
  • IPO FAQs
  •    Answer IPO FAQs
  • IPO Alert Blog
  • Stock Gadgets
  • Discussion Forums
  • IPO Message Board
  • Stock Message Board
  • Bonds / FDs
  • Current IPO's
    More IPO's...
    Subscribe with us...
     Free Email Alerts
     Name
     Email 

     Free SMS Alerts
    India Stock Market
  • Stock Message Board
  • Stock Market Home
  • NSE Bulk Deals
  • NSE Circuit Filters
  • Corporate
         Announcements
  • Market Holidays
  • Stock Trading Brokers
  • Online Trading
  • Comparison Table
  • ICICI Direct
  • Sharekhan
  • Indiabulls
  • 5Paisa
  • Motilal Oswal
  • HDFC Securities
  • Reliance Money
  • IDBI Capital
  • Religare
  • Geojit
  • Commodity Brokers
  • Angel Commodities
  • Indiabulls Commodity
  • Unicon Commodities
  • SMC Comtrade Ltd
  • IPO Registrars
  • Intime Spectrum
  • Karvy
  • More IPO Managers..
  • Thejo Engineering IPO Review by Dilip Davda

      

     

    Dilip Davda says 'Subscribe' to Thejo Engineering Ltd IPO

    Date Posted: Aug 29, 2012

    IPO Review List   |    IPO Detail

    Issue Summary

    While we have 10th BSE SME platform IPO of Comfort Commotrade opening on 05.09.12, we have first IPO from Thejo Engineering Ltd for listing on NSE (SME) EMERGE platform.. Thus with this issue, NSE is breaking the ice for small IPOs. Details of this IPO are as under:

    Thejo Engineering Ltd. (TEL) is the Chennai based light engineering company engaged in providing engineering solutions for bulk material handling, mineral processing and corrosion protection in core sectors like mining, power, steel, cement, ports, fertilizers etc. Thus it is one of the few companies in sub continent offering all major solutions under one roof. The Company has 4 manufacturing units in and around Chennai with a pan India presence through 11 branch offices and 36 site offices. TEL's presence through partnerships and distribution network extends across Australia, Kingdom of Saudi Arabia, the USA, Germany, Chile, Brazil and Ghana.

    The company now mulls expansion in global reach and setting up subsidiary at Australia, putting up a manufacturing unit for polyurethane for captive consumption, setting up a lining division and general corpus fund. To part finance this to the tune of Rs. 21 crore, the company is offering around 488370  equity shares of Rs. 10 each within a price band of Rs. 402-430. Issue opens for subscription on 04.09.12 and will close on 06.09.12. Post allotment; the shares will be listed on NSE EMERGE platform. Issue is lead managed by IDBI Capital Market Services Ltd. and Cameo Corporate Services Ltd is the registrar to the issue. CRISIL has rated this IPO as "SME 5/5" indicating excellent fundamentals of the company. Thus even though rating was not mandatory, the company has gone for it for more transparency. 

    As far as Lead Manager's track records are concern, out of last 16 IPO mandates it has only 50% IPOs gave listing gains. Thus it has 50:50 ratio of success.


    Conclusion / Investment Strategy

    On the performance front, TEL has posted an average EPS of Rs. 52.32 for the last three fiscals. For the year 2011-12 EPS stands at Rs. 76.17. The company issued 1 for 2 bonuses in 1994 and 2001. Its current equity of Rs. 1.24 crore is supported by free reserves of Rs. 28.76 crore. Even if we take fully diluted equity post IPO the issue is being made at a P/E of around 8 and below 2 P/BV. Thus the issue is low risk-high return one.


    IPO Review Author

    About Dilip Davda

    Dilip Davda, a freelance journalist for more than 25 years, is a stock market analyst and news article writer. Since 1985, he has contributed to print media, electronic media and often appears on TV channels as visiting stock analyst. His articles are regularly publishes in Corporate India, Smart Investment (English and Gujarati weekly published from Ahmedabad), Free Press Journal and many other news papers & magazines. He is also a visiting stock analyst on DD News TV Channel.

    Email: dilip_davda@rediffmail.com

     

    More Thejo Engineering Ltd IPO Views / Analysis ...

    1. K.M. Global Financial Services Ltd