Tiger Logistics (India) Ltd IPO Review (Avoid)

Review By Dilip Davda on Aug 25, 2013

While secondary market in dilemma and primary market on virtual calm, we are witnessing SME offerings with a tally of half a dozen issues last two months. We have yet another such offer from Tiger Logistics for BSE SME platform. Details of the same are as under:

 

Tiger Logistics is engaged in the field of third party logistics providing. It has registered office at New Delhi and offices at Mumbai, Pune, Mundra, Luthiana and Kolkatta. The company has multi-model transport as well as custom house agent licenses. In March 2005 it issued 10000 shares at a price of Rs. 190 per share. In March 2007 it issued bonus in the ratio of 34 shares for every 1 share held. In February 2008 it issued 2030000 shares at par to take the paid up capital at Rs. 3.08 crore.

 

To meet the working capital requirements and other corpus needs, the company is offering 1140000 equity share of Rs. 10 each at a fixed price of Rs. 66 per share to mobilize Rs 7.52 crore. Issue opens for subscription on 27.08.13 and will close on 29.08.13. Minimum application it to be made for 2000 shares and in multiples thereof, thereafter. Post issue its present capital of Rs. 3.09 crore will rise to Rs. 4.22 crore. .Shares will be listed on BSE SME post allotment.   Issue is lead managed by Sarthi Capital Advisors Pvt. Ltd. and registrar to the issue is Bigshare Services Pvt. Ltd.

 

On performance front, the company has posted an average EPS of Rs. 9.83 for last three fiscals and NAV stands at Rs. 52.96 as on 31.03.13. For the year ended 31.03.13 it posted net profit of Rs. 3.39 crore on a turnover of Rs. 122.74 crore and marked rise of 20% and 16% over the previous year’s bottom and top line respectively. Based on this working, on post issue capital this will translate EPS of Rs. 8.03 thus the asking price is at a P/E of 8.2+.

 

On lead merchant banker’s track record front, it brought SME IPO of Bothra Metal that has marked 52 week high of Rs. 32.20 and the low of Rs. 24.85 with a last trade at Rs. 30 against its offer price of Rs.25.


Conclusion / Investment Strategy

Avoid

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

Tiger Logistics IPO FAQs

  1. 1. Why Tiger Logistics IPO?

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

  2. 2. How is Tiger Logistics IPO?

    Read the Tiger Logistics IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Tiger Logistics IPO what should investors do?

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

  4. 4. Is Tiger Logistics IPO good?

    Our recommendation for Tiger Logistics IPO is to avoid.

  5. 5. Is Tiger Logistics IPO worth Investing?

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

  6. 6. When will Tiger Logistics IPO allotment status?

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

  7. 7. When will Tiger Logistics IPO list?

    The Tiger Logistics IPO will list on Thursday, September 12, 2013, at BSE SME.

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