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|
|
| Company |
Tips Industries
|
| Market Price |
Not listed |
| Lead manager |
Anand Rathi Securities Private Limited
|
| Listing At |
BSE, NSE
|
| Opening/Closing |
Book bldg: September 5/September 12, Fixed price: September 26/October 3 |
| Promoters |
Kumar Taurani, Ramesh Taurani, Renu Taurani, Varsha Taurani, Shyam Lakhani, Kavita Lakhani, Rajeev Sogani
|
| Associate Co. |
Tips Exports, Tips Finance, Tips Films, Dashmesh International Limited
|
| Managing Director |
Kumar Taurani
|
| Post-issue Stake |
75% |
| Issue |
|
| Size |
3 million shares
|
| Price |
Face value: Rs 10, Floor price: Rs 325
|
| On Application |
Minimum shares retail - 50, others - 1050
|
| On Allotment |
— |
| Objective |
Acquire audio rights, set up recording studio (music, promotional activities and videos) manufacturing plant for compact discs
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| Business |
|
| Product |
Pre-recorded audio cassettes, blank audio cassettes and replicated compact discs
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| Location |
Silvassa |
| Project cost |
Rs 1879.50 million
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| Funded by |
Public issue (53%), internal accruals (45%), term loan (2%)
|
| Kensource projections |
(2001) |
| Sales |
Rs 1500 million |
| Profit |
Rs 300 million
|
| Earnings per share |
Rs 24 |
| Forward P/E |
13.5 |
| Return on equity |
28% |
| Post-issue equity |
Rs 120 million |
| Comment |
Ramesh Taurani, one of the promoters, is an accused in the Gulshan Kumar murder case. Accounting is a mess: interest cost doesn't add up, huge unsecured loan from promoters, transactions with related parties, income tax liability of Rs 101 million. Risky business. Ambitious expansion. Expensive pricing. Low floating stock leaves scope for price rise.
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| Rating *
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C
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* A=Subscribe & Hold; B = Subscribe & Watch C=Subscribe & Sell; D = Avoid
By Kensource Information Services Pvt Ltd.
Money
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