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Taylormade Renewables BSE SME IPO review (May apply)

Review By Dilip Davda on Mar 18, 2018

Taylormade Renewables Ltd. (TRL) is primarily engaged in providing renewable energy solutions. Its  specialization is in manufacturing of Solar Parabolic Concentrating Systems for steam generation used in steam cooking and other industrial application, direct or in-direct heating, including solar air-conditioning, and solar space heating, solar drying, solar waste water evaporation and many more applications requiring thermal energy. Company uses parabolic static focus and moving focus technology that concentrate solar radiation by automatically tracking the sun and using the thermal energy. The advantage of using this technology is, it is risk free, safe, and indigenous and this system can be run by any person without using much skill. TRL is also the manufacturer of Solar Dish Cooker, Solar Box Cooker, Solar Dryer, Biomass cook stoves and biomass gasifiers, air source heat pumps, solar thermic fluid cooking system, evacuated tube collectors with and without CPC reflector. It is an ISO 9001-2008 certified Company which offers systems of high quality and reliability that intends to provide solutions to the customers for their various thermal energy needs at a reasonable cost.

To part finance its working capital and general corpus fund needs, TRL is coming out with a maiden IPO of 3240000 equity shares of Rs. 10 each at a fixed price of Rs. 35 per share to mobilize Rs. 11.34 crore. Issue opens for subscription on 22.03.17 and will close on 27.03.17. Minimum application is to be made for 4000 shares and in multiples thereon, thereafter. Post allotment shares will be listed on BSE SME. Issue is solely lead managed by Guiness Capital Advisors Pvt. Ltd. and Bigshare Services Pvt. Ltd. is the registrar to the issue. Issue constitutes 32.98% of the post issue paid up capital of the company.  Having issued initial equity at par, it raised further equity in the price range of Rs. 11.50 to Rs. 35 per share. It has also issued bonus shares in the ratio of 0.37 to 1 (October 2017) and 2 for 1 (January 2018). Average cost of acquisition of shares by the promoters is Rs. 7.73, Rs. 11.27 and Rs. 11.52 per share. Post issue, its current paid up equity capital of Rs. 6.58 will stand enhanced to Rs. 9.82 cr.

On performance front, TRL has ported turnover/net profits of Rs. 2.45 cr. / Rs. 0.03 cr. (FY14), Rs. 8.41 cr. / Rs. 0.03 cr. (FY15), Rs. 12.11 cr. / Rs. 0.07 cr. (FY16) and Rs. 18.19 cr. / Rs. 0.45 cr. (FY17). For first nine months of the current fiscal, it has earned net profit of Rs. 1.29 cr. on a turnover of Rs.18.97 cr. For all these fiscals while top line has shown remarkable growth, bottom line remained static and under pressure till FY15. For last three fiscals it has posted an average EPS of Rs.4.17 and an average RoNW of 26.51%. Issue is priced at a P/BV of 1.03 on the basis of its NAV of Rs. 34.10 as on 31.12.17 and at a P/BV of 1.83 on the basis of its post issue NAV of Rs. 19.17. If we annualize latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 20.It has no listed peers to compare with.

On merchant banker’s front, this is the 26th mandate from its stable in last three fiscals. Out of last 10 listings, 1 opened at discount to offer price, 1 at par and the rest eight with a premium ranging from 2.6% to 25% on the day of listing.


Conclusion / Investment Strategy

Considering Improving performance and better prospects for the segment going forward, investment in this issue may be considered for long term.

Review By Dilip Davda on Mar 18, 2018

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

Taylormade Renewables IPO FAQs

  1. 1. Why Taylormade Renewables IPO?

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

  2. 2. How is Taylormade Renewables IPO?

    Read the Taylormade Renewables IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Taylormade Renewables IPO what should investors do?

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

  4. 4. Is Taylormade Renewables IPO good?

    Our recommendation for Taylormade Renewables IPO is to subscribe for long term.

  5. 5. Is Taylormade Renewables IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Taylormade Renewables IPO.

  6. 6. When will Taylormade Renewables IPO allotment status?

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

  7. 7. When will Taylormade Renewables IPO list?

    The Taylormade Renewables IPO will list on Friday, April 6, 2018, at BSE SME.