IPO Analysis:Transformers & Rectifiers India Ltd.

11 Dec

Posted by Shyam as IPO Watch

To start with we would like to say sorry to all the regular readers of this blog for not updating it for last 2-3 days mainly because of shortage of time.Ok, now lets get started.The IPO Analysis of Transformers and Rectifiers India Ltd.The company is basically engaged in the business of manufacturing transformer.It has a unit at Ahmedabad and is planning another unit soon.

It is hitting the capital markets with 2,995,000 equity shares of Rs 10 each.The price band has been fixed at Rs 425-465 crores.The issues has already got started and is closing on Dec 12th.It has been graded above average by the market watchers and is expected to do well once it gets listed,but they also say to have a out look of 1-2 years horizon.

Objectives of the issue: To part finance its proposed greenfield manufacturing facility coming up soon and to finance working capital requirements.It is one among the few players who have the capacity of producing these many varieties of power transformers. So keeping this in mind it looks a considerable IPO to watch out for.The company has a order book of 360 crores as of Nov 15th.And theres enough room for growth in medium term

While compared to its competitors it has shown some good results also.The sales and net profit saw CAGR of67% and 96% respectively.It has also reported better margins of 9.1% as compared to 7.4% industry average.So we suggest the short to medium term investors to subscribe this issue.