The investors in TD Power Systems had a fairly good day as the listings gained them 7.5% on the first day.
Company’s equity shares started at Rs. 260 and by the end of the day, they hiked up to Rs. 309.70 in the middle of the day but closed at Rs. 275.25 which gave them a total increase of Rs. 19.25, a good 7.52% over Rs 256 issue price.
Trade volume on both exchanges added up to a total of 26.80 million equity shares.
TD Power Systems is one of the top producers of AC generators. The company caters to people around the globe by providing them custom-made generators with capacity of 1MW up to 52 MW. They entered the markets on August 24, 2011 in order to raise 277 crore Indian Rupees, price band from Rs 256 to 261. It was planned to use the increased capital to finance expansion of their already existing plant in Bangalore and also to fund a project in the IT hub of the country. Additionally, the rest of the funds would be utilized to pay debts and fund other corporate purposes.
The company seems solid and possesses a good business plan and prides to compare itself with BHEL. It has excellent relations with its technology partners and that is the USP of the company. Net income has increased from Rs. 506.77 crore in 2009 to Rs. 745.38 in 2010 and the investors will be benefited by a long term relation with the company.
Bell The Bull says that there is more to look out for, from this company and it will still continue to perform better