Onesource Techmedia Ltd IPO Review (Avoid)

Review By Dilip Davda on May 17, 2013

While we have a main line IPO of Just Dial opening on 20.05.13, as usual, a sudden announcement of BSE SME IPO came in. Onesource Techmedia Ltd (OTL) is coming out with an IPO for Rs. 2.80 crore fund mobilization plans. Details of the IPO are as under:

OTL is engaged in the business of distribution and trading of media contents in the form of audio and video cassettes, compact disks etc. The company has royalty agreements with various media houses so that it can market the contents of Hindi devotional, Bengali devotional, Bengali folk songs, Rajasthani Devotional, Rajasthani Folk, Bhojpuri Bhajan, Bhojpuri film, Animation movie – Jai Vigneswara, Tamil TV serials in India and abroad. OTL is also engaged in event management for corporate and other small events.

The company is planning expansion of business and office infrastructure, brand building etc and to part finance the same it is offering 2000000 equity share of Rs. 10 each at a fixed price of Rs. 14 per share. The issue opens for subscription on 17.05.13 and will close on 21.05.13. Guiness Corporate Advisors Private Limited is the sole lead manager to the issue. Purva Sharegistry (I) Pvt Ltd is the registrar to the issue. Post issue, shares will be listed on BSE SME. Minimum application is to be made fo 10000 shares and in multiples thereof thereafter.

On the company’s performance front, it has clocked in an average EPS of Rs. 0.06 with inconsistency in performance. Its NAV as on 30.11.12 is Rs. 14.02. Thanks to issue of 47500 equity shares at Rs. 1000 per share in March 2011 that helped it announcing bonus in the ratio of 2 for 1 in November 2012. 

On merchant banker’s front, it had so far mandate for 6 SME IPOs and all of them gave marginal gains on debut day, due to market making effort by it with thin volumes. 

 


Conclusion / Investment Strategy

With this float, the total equity will rise to Rs. 6.49 crore and its earnings for the fiscal 2011-12 with an EPS of Rs. 0.07 on old equity will get further diluted and thus the asking price is much above 289 plus P/E and thus not worth considering.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on May 17, 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

Onesource Techmedia IPO FAQs

  1. 1. Why Onesource Techmedia IPO?

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

  2. 2. How is Onesource Techmedia IPO?

    Read the Onesource Techmedia IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Onesource Techmedia IPO what should investors do?

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

  4. 4. Is Onesource Techmedia IPO good?

    Our recommendation for Onesource Techmedia IPO is to avoid.

  5. 5. Is Onesource Techmedia IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Onesource Techmedia IPO.

  6. 6. When will Onesource Techmedia IPO allotment status?

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

  7. 7. When will Onesource Techmedia IPO list?

    The Onesource Techmedia IPO will list on Wednesday, June 5, 2013, at BSE SME.

Comments

Add a public comment...








Search Chittorgarh.com:

Download Our Mobile App

Android App iOS App