Tarini International Ltd IPO Review (Avoid)

Review By Dilip Davda on May 26, 2014

Tarini International Ltd, (TIL) has been evolved as an engineering arm to provide financial and technical consultancy related to Hydro Power generation, Transmission and Distribution and Infrastructure. Over a period of time, it has emerged as an integrated player providing turn-key services under one umbrella from designing, construction, generation, transmission and distribution. The company is also professionally competent to undertake projects from concept to commissioning. This entire set of activities, completes the value chain by providing the synergy of backward as well as forward integration. 

 

TIL intends to develop its own 5 MW Kanyatana mini small hydro project in Karnataka under IPP and shall soon be taking up the execution of the same. The project is scheduled to be completed in 2 years’ time and is propose to generate approx. 35 million KWH annually.

 

Now to meet its long term working capital requirements and to finance our business expansion plans and achieve the benefits of listing on the SME along with Brand Building, the company is coming out with a public issue of 3978000 equity share of Rs. 10 each at a fixed price of Rs. 41 per share. Issue opens for subscription on 09.06.14 and will close on 13.06.14. Minimum application is to be made for 3000 shares and in multiples of it thereon, thereafter. Issue is lead managed by Guiness Corporate Advisors Pvt. Ltd and Link Intime India Pvt Ltd is the registrar to the issue. Post issue shares will be listed on BSE SME.

 

On performance front, the company incurred loss of Rs. 0.001 crore on a turnover of Rs. 1.22 crore. For nine months ended 31.12.2013 it has earned net profit of Rs.0.02 crore on a turnover of Rs. 0.80 crore. Its equity capital is at Rs. 9.02 crore that will stay enhanced to Rs. 13.00 crore post IPO. If we attribute this earnings on its asking price, then issue is at a P/E of 4000 plus and at a P/BV of 2.8. The company has issued two bonus shares in the ratio of 1 for 1 (on 25.07.11) and 1 for 10 (on 20.03.12). Between 10.08.11 and 17.02.12 it issued 6534460 equity shares at a price of Rs. 12 and Rs. 13.75 per share and now asking from public Rs. 41 per share.

 

 The merchant bankers has rewarded investors in its earlier SME mandates with is market making expertise (?) and may repeat the same in this issue as well. So only HNI’s who have appetite for taking big risk, can park their funds, retails investors must stay away from this issue.  


Conclusion / Investment Strategy

Remark: Avoid this highly priced issue that also has entry barriers.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on May 26, 2014

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

Tarini International IPO FAQs

  1. 1. Why Tarini International IPO?

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

  2. 2. How is Tarini International IPO?

    Read the Tarini International IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Tarini International IPO what should investors do?

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

  4. 4. Is Tarini International IPO good?

    Our recommendation for Tarini International IPO is to avoid.

  5. 5. Is Tarini International IPO worth Investing?

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

  6. 6. When will Tarini International IPO allotment status?

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

  7. 7. When will Tarini International IPO list?

    The Tarini International IPO will list on Thursday, June 26, 2014, at BSE SME.








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