ATWL is primarily engaged in the business of providing travel and leisure services under one roof covering national/international-inbound/outbound tours, car hiring, travel assistance and ticket bookings, visa processing etc. With its continued services, the company won many accolades such as recognition as an approved tour operator for excellent co-operation and service by the Ministry of Tourism, government of India.
To part finance its proposed brand building plans and generate general corpus fund, it is offering 5000000 equity shares of Rs. 10 each at a fixed price of Rs. 16 per share to mobilise Rs. 8 crore. Post issue, the equity capital will rise to Rs. 12.67 crore from existing Rs. 7.67 crore. The issue opens for subscription on August 26 and will close on August 29. Minimum application is to be made for 8000 shares and in multiples thereof. Corporate Strategic Allianz Ltd is the sole lead manager of the issue and Satellite Corporate Services Pvt. Ltd is the registrar.
Post issue, shares will be listed on the BSE SME. In February 2011, it issued 519949 equity shares to BCCL (Benett, Coleman & Co. Limited) at a price of Rs. 21.49 and then in March 2011 issued bonus in the ratio of 35 for 100. Thereafter, between January 2012 – March 2013 it issued approx 5.5 lakh shares in a price range of Rs. 15 and Rs. 16.
On performance front, for the last three fiscals ended March 2012, it posted an average EPS of Rs. 0.54. For the first 11 months ended February this year, it earned a net profit of Rs. 0.22 crore on a turnover of Rs. 16.71 crore translating into an annualised EPS of Rs. 0.02 thus making this offer price at 800 P/E.
On lead manager’s track record front, it brought three IPOs earlier from Indo Thai, Rushil Décor, Timbor Home wherein we have seen mixed trends post listing with market operations.
Remarks: Not worth it.
Tiger Logistics (India) Ltd.: (TLIL)
Tiger Logistics is engaged in the field of third party logistics providing. It has a 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 to 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 mobilise Rs 7.52 crore. The issue opens for subscription on August 27 and closes on August 29. Minimum application is to be made for 2000 shares and in multiples thereof. 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.
The 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 March this year.
For the year ended March, it posted a 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 into an EPS of Rs. 8.03 thus the asking price is at a P/E of 8.2+.
On lead merchant banker’s track record, it brought SME IPO of Bothra Metal that has marked a 52 week high of Rs. 32.20 and a low of Rs. 24.85. It is currently trading at Rs. 30 against its offer price of Rs.25.