Ace Tours Worldwide Ltd IPO Review (Avoid)

Review By Dilip Davda on Aug 25, 2013

In last two months we witnessed spat of SME platform offerings in primary market and main line IPOs are just waiting for their time. Although we have reports that Wonderla Holidays and ACB India are planning to hit with their IPOs and Engineers India with FPO in the nearer future, we yet another offer from ACE Tours for BSE SME platform. Details of the same are as under:

 

ATWL is primarily in the business of providing travel and leisure services under one roof covering national/international-inbound/outbound tours, individual/Group and Corporate tours, School Trips, car hiring, travel assistance and ticket bookings, Visa processing etc. etc. With its continued services the company won many accolades such as recognition as an approved tour operator for excellent co-operation and service by the Ministry of Tourism, Government of India.

 

To part finance its proposed Brand Building plans and generate general corpus fund, it is offering 5000000 equity shares of Rs. 10 each at a fixed price of Rs. 16 per share to mobilize Rs. 8 crore. Post issue the equity capital will rise to Rs. 12.67 crore from existing Rs. 7.67 crore. Issue opens for subscription on 26.08.13 and will close on 29.08.13. Minimum application is to be made for 8000 shares and in multiples thereof, thereafter. Corporate Strategic Allianz Ltd is the sole lead manager of the issue and Satellite Corporate Services Pvt. Ltd is the registrar. Post issue shares will be listed on BSE SME. In February 2011 it issued 519949 equity shares to BCCL (Benett, Coleman & Co. Limited) at a price of Rs. 21.49 and then in March 2011 issued bonus in the ratio of 35 for 100. Thereafter, between January 2012 - March 2013 it issued approx 5.5 lakh shares in a price range of Rs. 15 and Rs. 16.

 

On performance front, for the last three fiscals ended 31.03.12 it has posted an average EPS of Rs. 0.54. For first 11 months ended 28.02.13 it has earned net profit of Rs. 0.22 crore on a turnover of Rs. 16.71 crore translating into an annualized EPS of Rs. 0.02 thus making this offer price at 800+ P/E.

 

On lead manager’s track record front, it brought three IPOs earlier from Indo Thai, Rushil Décor, Timbor Home wherein we have seen mixed trends post listing with market operations.


Conclusion / Investment Strategy

Not worth

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Aug 25, 2013

Review Author

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. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the past, SME IPOs drew the attention of investors across the board. 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 own risk. The above information is based on information available as on date coupled with market perceptions. The Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

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.

Email: dilip_davda@rediffmail.com

Ace Tours Worldwide IPO FAQs

  1. 1. Why Ace Tours Worldwide IPO?

    The initial public offer (IPO) of Ace Tours Worldwide Ltd offers an early investment opportunity in Ace Tours Worldwide Ltd. A stock market investor can buy Ace Tours Worldwide IPO shares by applying in IPO before Ace Tours Worldwide Ltd shares get listed at the stock exchanges. An investor could invest in Ace Tours Worldwide IPO for short term listing gain or a long term.

  2. 2. How is Ace Tours Worldwide IPO?

    Read the Ace Tours Worldwide IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Ace Tours Worldwide IPO what should investors do?

    Ace Tours Worldwide IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Ace Tours Worldwide IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.

  4. 4. Is Ace Tours Worldwide IPO good?

    Our recommendation for Ace Tours Worldwide IPO is to avoid.

  5. 5. Is Ace Tours Worldwide IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Ace Tours Worldwide IPO.

  6. 6. When will Ace Tours Worldwide IPO allotment status?

    The Ace Tours Worldwide IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Ace Tours Worldwide IPO allotment status to check.

  7. 7. When will Ace Tours Worldwide IPO list?

    The Ace Tours Worldwide IPO will list on Thursday, September 26, 2013, at BSE SME.








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