Indo Thai Securities is a stock broking company in India. It got its National Stock Exchange membership in the year 1999. The company enters the capital market with its 40 lakh equites of FV of Rs 10 each. The company’s Initial Public offer (IPO) will open on 30th September 2011 and will close on 5th October. The IPO will consist of 40 percent diluted issue of fully paid up capital in a price band of Rs 70 to 84 per share. Applicants need to bid for a minimum of 80 shares and thereafter in multiples of 80 shares.
The company will use the issue proceeds for the up gradation and expansion of their existing branches. The company will spend Rs 2 Cr to set up branch network, An amount of rupees 4 Cr will be spend on purchasing of regional office space, another amount of Rs 4 Cr will be spend to purchase corporate office. The company will spend Rs 3 Cr on brand building and advertising and 10 Cr as working capital. Its shares will be listed in both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
To manage its public issue Corporate Strategic Allianz Ltd has been appointed as the BRLMs (book running lead manager). For nine months period the company posted a net income of rupees 401.62 lakhs with a net profit of rupees 114.57 lakhs. Looking at the prospective business options the IPO could be a good buy.
Bell the bull says: In spite of robust growth momentum and a robust business model we are hesitant to recommend the IPO because of the prevailing market conditions.