Indo Thai Securities Limited IPO Review (Avoid)

Review By Dilip Davda on Sep 28, 2011

Indo Thai Securities Ltd. (ITSL):
Stock Broking Company based at Indore and providing all financial sector related services under one roof. . Now it is proposing to expand its infrastructure and network. To part finance this the company is coming out with a book building process IPO. ITSL is offering 4000000 equity share of Rs. 10 each within a price band of 70-84. The issue opens for subscription on 30.09.11 and closes on 05.10.11. Minimum application is to be made for 80 shares and in multiples thereafter. Shares will be listed on BSE and NSE.

Corporate Strategic Allianz Ltd. is the sole BRLM that brought two IPOs in the recent past and both has given positive returns on the listing day. Sharepro Services (India) Pvt. Ltd. is the registrar to the issue. CARE has assigned IPO Grade 2 to this issue, indicating at below average fundamentals of the company.

On performance front, the company made progress from 2007 to 2010 and suffered a set back in 2011. For the fiscal 2010-11 it posted net profit of Rs. 1.06 crore on a total income of Rs. 4.55 crore resulting in an EPS of Rs. 1.77 on existing capital. If this is applied to enhanced equity post this issue, then it stands at Rs. 1.06 and thus the asking price is at a P/E of 70 to 84 and on a NAV of Rs. 12.94 it is being made at a 5.5 to 6.5 P/BV and is a costly bet.


Conclusion / Investment Strategy

Avoid. For the fiscal 2010-11 it posted net profit of Rs. 1.06 crore on a total income of Rs. 4.55 crore resulting in an EPS of Rs. 1.77 on existing capital. If this is applied to enhanced equity post this issue, then it stands at Rs. 1.06 and thus the asking price is at a P/E of 70 to 84 and on a NAV of Rs. 12.94 it is being made at a 5.5 to 6.5 P/BV and is a costly bet.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Sep 28, 2011

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. Any reader taking decisions based on any information published here does so entirely at its own risk. Investors should bear in mind that any investment in stock markets is subject to unpredictable market-related risks. The above information is based on RHP and other documents available as of date coupled with market perception. The author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda, a freelance journalist

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

Indo Thai Securities IPO FAQs

  1. 1. Why Indo Thai Securities IPO?

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

  2. 2. How is Indo Thai Securities IPO?

    Read the Indo Thai Securities IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Indo Thai Securities IPO what should investors do?

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

  4. 4. Is Indo Thai Securities IPO good?

    Our recommendation for Indo Thai Securities IPO is to avoid.

  5. 5. Is Indo Thai Securities IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Indo Thai Securities IPO.

  6. 6. When will Indo Thai Securities IPO allotment status?

    The Indo Thai Securities IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Indo Thai Securities IPO allotment status to check.

  7. 7. When will Indo Thai Securities IPO list?

    The Indo Thai Securities IPO will list on Wednesday, November 2, 2011, at BSE, NSE.








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