Markets
BSE See NSE See 26,750.09
55.81 (0.21%)
collapse Related Readings collapse

Know Your IPO: Tiger Logistics (India)

By Priyanka Kumari | 8/8/2013 5:59 PM Thursday

Delhi-based Tiger Logistics (India) (TLIL) is the first company in the logistics sector to file a DRHP for listing on the BSE SME platform. The company has planned to offer 11.40 lakh equity shares, aggregating to Rs 7.52 crore. In this issue, equity shares will cost the public Rs 66 per share. The issue also includes a reservation of 58000 equity shares for market makers out of the total offered size. Sarthi Capital Advisors is the lead manager for this issue. The issue will open on 27 Aug this year and will close on 29 Aug 2013.  

TLIL provides logistics services for its clients and started its logistics services in the year 2000. It is engaged in third party logistics operations. It has a registered office in Delhi and branches in Mumbai, Pune, Mundra, Ludhiana and Kolkata. TLIL offers its services in many sectors including automobiles, aviation, consumer durables, agri & perishable products and chemicals.

The company is raising funds to the tune of Rs 7.52 crore to meet its working capital requirement. It has a total capital requirement of Rs 1154 crore. It intends to employ Rs 6.4 crore from the issue proceeds, and will invest Rs 5.24 crore from internal sources to fulfil the overall requirement.

On the financial front, TLIL's revenue came in at Rs 123 crore in FY13 by showing a growth of 17% on a YoY basis. Due to the increase in operating expenses, the total expenditure for the company increased by 17% to Rs 117 crore. Its EBITDA stood at Rs 5.8 crore. The bottomline stood at Rs 3.4 crore for FY13, over that of Rs 2.81 crore in FY12. Moreover, the company saw a CAGR of 11.5% in its revenues over the five-year period. Its net profits for the same period recorded a CAGR of 20%.

The company has quoted a price of Rs 66 per share, and with this, its share price will trade at a FY13 PE of 8.22x. Other listed players in this sector including Gati, Allcargo Logistics, Transport Corporation of India and Gateway Distriparks are presently trading at a TTM PE of 21.6x, 5.2x 6.7x and 8.7x respectively. In comparison with its peers, TLIL has quoted a higher price for the issue.

The logistics sector primarily depends on four factors – good infrastructure, reforms in governmental policy, increase in trading, and last but not the least, consumption growth. Logistics cost in India is higher as compared to that in developed countries due to poor infrastructure, which results in inadequate service quality. Brand name also plays a critical role in this space, and this company enjoys no brand recognition. Considering all these factors, we advise investors to stay away from the issue.

Find More Articles on: Markets, DSIJ Mindshare, IPO, IPO Analysis, Research

DSIJ
Mindshare

Ten stocks close to their 52-week low

Ten stocks close to their 52-week low

Following stocks are close to their 52-week low as at 12.15 p.m. on December 9.

Beneficiaries of the cashless mantra trade higher on bourses

Beneficiaries of the cashless mantra trade higher on bourses

There are a host of stocks which are likely to benefit from the governments' big Digital push. These stocks have already seen a big run-up, post demonetisation. However, more upside is left in the stocks.

Ten stocks close to their 52-week high

Ten stocks close to their 52-week high

The markets on December 9 opened up. BSE Sensex is trading at 26779.11, up by 84.83 points and the Nifty is trading at 8266.65, up by 19.80 points. Meanwhile, following stocks are close to their 52 week high as on December 9.

Banco Products runs low after rollback of buyback

Banco Products runs low after rollback of buyback

Banco Products’ board of directors have decided to drop the proposal of buyback of equity shares of the company and decided not to further proceed with the proposal.

Quarterly Result: Jindal Steel & Power Ltd

Quarterly Result: Jindal Steel & Power Ltd

Jindal Steel & Power Ltd., is currently trading at Rs. 73.95, up by 0.85 points or 1.16% from its earlier closing of Rs. 73.1 on the BSE. The company's net loss for the quarter stands at Rs 745.98 cr against Rs 909.53 cr.

Markets @ 11 am: Movers and Shockers

Markets @ 11 am: Movers and Shockers

Following are the top gainers and losers as of December 9. Intellect Design is the largest gainer; whereas MMTC is the largest loser. 

IL&FS Engineering & Construction Company shines on bagging REC order

IL&FS Engineering & Construction Company shines on bagging REC order

IL&FS Engineering & Construction Company (IL&FS ECC) has emerged as the lowest bidder for Rural Electrification Corporation (REC) works worth Rs 225 crore crore in Jharkhand. 

Sheela Foams IPO lists at a premium of 39%

Sheela Foams IPO lists at a premium of 39%

Maker of India’s most loved mattresses brand ‘Sleepwell’ has listed with a massive premium of close to 39 per cent on the bourses. The Rs 510-crore initial public offer was oversubscribed 5.09 times on December 1, the last day for subscription. The issue was opened on November 29.

Tanla Solutions hits new 52-week high

Tanla Solutions hits new 52-week high

Tanla Solutions has hit new 52-week high on December 9. The scrips are witnessing high volume with thirty day SMA of 40.85. The shares of the company which previously closed at Rs 49.95; opened at Rs 51.50 and as at 9.52 am are trading at Rs 57.35, up by 14.81 per cent.

Stock in focus: KPR Mill

Stock in focus: KPR Mill

KPR Mill, which had earlier proposed a buy-back has finally got approval from its board. The scrip of KPR Mill by default is expected to spice up. 

Market
CHIT CHAT

What is your view on markets today?

200  Characters Remaining.
Please LOGIN  to post your comments or Click here to go back.
Shubham Maheshwari Dec 09 12:58PM
Buy ugar sugar work for short term profit
MANISH TYAGI Dec 09 12:54PM
@rajiv Nice timing, swing on tara
VINAY HEGDE Dec 09 12:49PM
PASSWORD iA9u1LVE
rajiv jha Dec 09 12:44PM
Elnet tech for short term
rajiv jha Dec 09 12:43PM
Pincon spirit also good for long term

news letter

More for the early bird.

Get the post-market reports and breakfast news right in your inbox. See latest »