Transwind Infra NSE SME IPO review (Subscribe)

Review By Dilip Davda on Jun 28, 2017

Transwind Infrastructures Ltd (TIL) is engaged in executing the Government's & Public sector undertaking Projects for various works such as infrastructure development projects in the growing sectors of Railways signaling and telecommunication (S&T), Quad cable & Optical Fiber Cable (OFC) projects with its annual maintenance, Establishing the Gas Pipeline Network for the Gas Distributors. The company has specialization in Railway infrastructure development in the field of signaling and telecommunication for the past 20 years. Initially, TIL worked for the project of Bharat Sanchar Nigam Limited (BSNL) cable network at different Secondary Switching Area (SSA). Subsequently it expanded the work to many SSA thereafter for the last 10 years. The company is also caring out Annual Maintenance Contract (AMC) of quod cable along with repeaters in the section Rajkot, Viramgam, Dhrangadhra, Bhatia- Okha, Rajkot –Bhatia for almost 10 years.mIt has served and continuing to serve to various government and public sector undertakings projects of S&T to Indian Railways (Western Railway, North Western Railway, West Central Railway).Apart from above TIL has done and continuing to provide Domestic Gas connection pipeline projects for various clients like Mahanagar Gas Limited Mumbai, Green Gas Limited Lucknow, Green Gas Limited Agra, Indraprastha Gas Limited, New Delhi and Bhagyanagar Gas Limited Hyderabad.

To part finance its capital expenditures, working capital and general corpus fund needs, the company is coming out with a maiden IPO of 2700000 equity share of Rs. 10 each at a fixed price of Rs. 27 per share to mobilize Rs. 7.29 crore. Issue opens for subscription on 30.06.17 and will close on 04.07.17. Minimum application is to be made for 4000 shares and in multiples thereof, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is solely lead managed by Swastika Investmart Ltd and Link Intime India Pvt Ltd is the registrar to the issue. Since inception till year 2000 it issued all equity at par. Thereafter it raised further equity in a price range of Rs. 40 to Rs. 160 during December 2007 - May 2017 and has also issued bonus shares in the ratio of 9 shares for every 1 share held in May 2017. Post issue its current paid up equity capital of Rs.3.99 crore will stand enhanced to Rs. 6.69 crore.

On performance front, the company has posted turnover/net profits of Rs. 11.68 cr. / Rs. 0.52 cr. (FY13), Rs. 12.74 cr. / Rs. 0.56 cr. (FY14), Rs. 9.22 cr. / Rs. 0.29 cr. (FY15) and Rs. 9.81 cr. / Rs. 0.33 cr. (FY16). For the nine months ended on 31.12.16 of FY 17, it has earned net profit of Rs. 0.45 cr. on a turnover of Rs. 8.36 cr. Thus it suffered a setback post FY14 in top and bottom lines. If we annualize the latest earnings and attribute it to fully diluted equity post issue, then asking price is at a P/E of 30 and at a P/BV of 2.06. For last three fiscals its average RoNW is around 8.24%. Its peers are trading in a P/E range of 9to 27. Thus issue is aggressively priced.

On merchant banker's front, this is the 5th mandate from its stable and past four issues gave positive returns on the day of listing.

Conclusion: Investors may consider investment for short to long term.


Conclusion / Investment Strategy

Investors may consider investment for short to long term in Transwind Infra NSE SME IPO.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Jun 28, 2017

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

Transwind Infrastructures IPO FAQs

  1. 1. Why Transwind Infrastructures IPO?

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

  2. 2. How is Transwind Infrastructures IPO?

    Read the Transwind Infrastructures IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Transwind Infrastructures IPO what should investors do?

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

  4. 4. Is Transwind Infrastructures IPO good?

    Our recommendation for Transwind Infrastructures IPO is to subscribe.

  5. 5. Is Transwind Infrastructures IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Transwind Infrastructures IPO.

  6. 6. When will Transwind Infrastructures IPO allotment status?

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

  7. 7. When will Transwind Infrastructures IPO list?

    The Transwind Infrastructures IPO will list on Wednesday, July 12, 2017, at NSE SME.

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