Issue Highlights
Issue Period
|
12/9/16-15/9/16
|
Price Band (Rs.)
|
850-860
|
Issue Size(shares)
|
1,04,00,000
|
Issue Size (Rs. crore) #
|
894.4
|
Issue Type
|
100% Book built
|
Face Value (Rs.)
|
2
|
Listing
|
BSE,NSE
|
Industry
|
Engineering Research & development (ER&D)
|
Registrar
|
Karvy Computershare
|
Minimum Bid Quantity
|
16 shares
|
Maximum Retail Subscription
|
Rs. 1,92,640 (14 lots)
|
BRLM
|
Kotak Investment, BOFA ML,JM Financial ,SBI Capital
|
# derived figure
Issue Details
Offer for Sale: up to 1,04,00,000 shares
Fresh Issue: Nil
Equity Shares
Outstanding Prior to the Issue: 10,16,90,392
Equity Shares
Outstanding After The Issue #: 10,16,90,392
Objects of the Issue
This issue is purely
stake sell by a promoter and no proceeds shall go towards the company. The
object of the issue is to avail the listing benefits.
Industry Profile
ER&D
(Engineering research & development) industry is also
referred to as PES (product engineering services) or ESO (engineering services
outsourcing ) industry. According to NASSCOM
global ER&D spend has grown at a CAGR of over 7 % over past 7-8 years.
The global spend of biggest
500 corporate spenders ER&D better known as G 500 ER&D spend was to the
tune of 614 billion USD and the same constituted around 61 % of the total
global ER&D spend.
Company Profile
LTTSL is a leading
ER&D services providing company catering the needs of manufacturing, technology and
process engineering companies. The company operates in 5 industry segments viz.
transportation, industrial products, telecom, hi-tech process industry and
medical devices.
Risks & Threats
(1)
Being incorporated
in June 2012 only, the company has limited operating history and financials of
only 2 years are there at investors' disposal
(2)
Concentrated
sources of revenue : Around 63 % and 20 % of the revenue comes from North
America and Europe respectively. The top 10 customers accounted for around 36 % of the revenue
(3)
The
company has allotted shares to its promoters at much lower price of Rs. 281 on
June 3,2016
(4)
Though
the company shall not directly be much affected by Brexit but its clients might be significantly
affected
Financial Profile #
Parameter
|
FY 16
|
PE Ratio
|
19.9
|
Net Profit Margin (%)
|
14.62
|
Total Liability to Net worth
|
.63
|
Price to Book Value
|
7.74
|
Post issue ROE (%)
|
38.9
|
TIE (Times Interest Earned)
|
374
|
AR collection Period (Days)
|
84
|
EV/EBITDA
|
15.25
|
M-Cap to Sales
|
2.91
|
Current Ratio
|
1.71
|
# using upper end of
the price-band
Comparison with the listed Peers #
NPM (%)
|
ROCE(%)
|
ROE(%)
|
PE
|
|
LTTSL
|
14.62
|
53.53
|
38.9
|
19.9
|
Tata Elxsi Ltd.
|
14.39
|
38.32
|
40.13
|
46.78
|
Cyient Ltd.
|
18.74
|
13.87
|
13.43
|
23
|
# moneycontrol data
No comments:
Post a Comment