Techknowgreen Solutions Limited IPO Message Board (Page 3)

Avoiding this...better options available....retailers be careful

Keep close 👁️ on subscription of this issue, just one more positive result and a new multibagger is ready

This will be game changer in short to medium time frame. Best wishes to braves who applied here.

@Noorul @newgen consultancy @lokes Please advise apply or not ?

​@Arjun Rajkot @SSingh Sir, Any GMP - the site says 0 - if you could help - also any expected subscription ? thanks in advance....

Unable to open its website.

​@ipo share The site is very much accessible. Any expected subscription stats ?

Another Website Address:
http://www.techknowgreen.com/

Why GMP 0 ?

May be due to new MM and poor past listing record (although very small) of LM.

GMP is zero for mostly all SME IPO (open and upcoming next week) where BigShare is registar
Any expert comments

Had it come during dry season, it's subscription would has been 500x with GMP 2x (in the name of green and ESG) , but now that IPOs are raining like there is no sunny day,All the best to people applying here for allotment and good listing.

Guru lok, APPLY or not to apply for Techknowgreen

It seems a very good company with increasing revenue and net profit.
Definitely applying for this fundamental sound company

@Tejas Gandya kaha chale gaya. Fake mat bolo

Company has 3 verticals i.e. Consulting – Regulatory | Sustainability, Technology – Execution | Info Tech and Research – Policy | Engineering
YoY, 50% jump in x revenue from Rs 9.87 cr to Rs 14.84 cr. Cost of material is unusual, Rs 5.48 cr in 21-22 to Rs 1.06 cr in 22-23. Could be due to sharp change in product mix (e.g. increase in consulting revenue)
Wrong cash flow. Movement in short term borrowing is wrongly shown in operating cash flow, it should be shown in financing cash flow. And this from an auditor whose fees increased from Rs 45K per year to Rs 4 lac per year.
Company is showing Rs 187 lacs as TDS receivable. Normally TDS is deducted by payer and deposited with receiver’s PAN number. It reflects immediately in 26AS and is adjusted against tax payer’s advance tax or self assessment tax. Here it looks like company has received payment after TDS deduction but payer has still not deposited tax with IT authorities. Unusual.
Total tangible & intangible asset (fixed asset) net value as on 31-Mar-23 is Rs 23 lacs only.
Legal and professional fees are quite erratic. Rs 107 lacs in 20-21, Rs 14 lacs in 21-22 and Rs 309 lacs in 22-23.
Current registered office is leased from the promoter and is proposed to be brought from him for Rs 1.6 cr.
From 23-24, MD, CEO and CFO will be paid Rs 90 lacs per year + incentives + perquisites. This will be more tha 50% of 22-23 employee expense.
Company had 74 employees as on 12-sep-23. Company deposited PF of 15 employees for Jan-23 in May-23 and for 46 employees for Jul-23 in Aug-23. PF for 4 months of Jan-Apr-23 was deposited consolidated in May-23. Details before Jan-23 not available.
Company has not provided ageing of receivables. Either it is a slip up or all receivables are less than 6 months. Total bad debts in last 3 years is Rs 42 lacs, more than net book value of fixed assets.
Despite 50% jump in revenue, YoY, the absolute value of receivables has remained same while inventory has gone up by same extent. Incidently, for last 3 fiscals, all inventory has been disclosed as Work In Progress. Company does not keep any RM or FG.
Of the IPO proceeds, company intends to spend Rs 3 cr in hiring staff, Rs 3 cr in purchasing & renovating offices, Rs 2.85 cr in loan repayment and Rs 3.87 cr for general corporate purposes. Borrowings to be repaid carry interest rate of 9.5%
Group company Wotastics solutions, based in Nashik, engaged in same business and there is no non-compete clause with them.
IPO related expenses, Rs 3.85 cr are 23% of the issue size.
In July-23, company has done private placement @ Rs 73 per share to Saint Capital, Aarhat Trade-com and Payal Manish Agarwal.

Appreciate your efforts sir
And the nuances in the accounting looks terrible inspite of the good figures in top and bottom line.
From Apply i am leaning more towards Avoid. Now only GMP and subscription figures

on a related note, I like the sector "Environmental consulting" , fact that governments and public sector will have to invest more capital on environmental related projects - valuation of any companies going public should be looked at from Pre - money valuation basis which in this case is sub 10x

​@ctrl.Alt.facts  I get the rationale for your counters 1,2,4 but for 3, investors must be aware of at least the current working capital details even if the same is not an object to the issue. And with the contrary figures like these, i doubt if the company will show their working capital requirements.

for 3 - It may need a change in Financial reporting standards to cover a situation where WC is not an object to the issue - I agree with the logic that WC cycles should be explained , however if this is not an object of the issue then any disclosures outside of ICDR guidelines becomes Non Public information and therefore should be included in financial reporting standards

Points Noteworthy: Especially point 8-10
      
1      No major litigations against the company are Pending BUT
2      23 lakhs Tax Demand against one of the directors
3      52% revenues continue in increasing trend from top 10 customers
4      Company has not taken any insurance cover whatsoever giving reason they face nothing like this in past so NO INSURANCE.
5      Post Issue P/E is 14.07
6      2 year Revenue CAGR around 37.5%. As per this FY 23-24 revenue comes at 2043.63 lakhs. Avg PAT Margin of 3 years comes at 15.29%.
      FY 23-24 Estimated PAT comes at 312.47 lakhs. EPS comes at 4.23. Forward P/E at 20.33 only if SALES DATA IS NOT COOKED
7      Private placement done in July for Rs 73. Why Rs 13 raised for IPO in 1.5 months is unknown
8      Inventory days are coming 1,112.52. MEANING STOCK OF AROUND 3 YEARS IS THERE IN INVENTORY. WHAT ARE THE SALES IF THE INVENTORY IS SO HUGE. CLEAR HINT OF WINDOW DRESSING. AND BECAUSE OF THIS READ NEXT POINT :
9      Company has provided no current year information regarding days and no estimates for upcoming years regarding inventory, debtor and creditor days. When a call was made to the lead manager to clarify the same, they have given reason that as per SEBI, FORWARD LOOKING STATEMENTS are not allowed so no estimates given by company. And the person also asked to show him one prospectus where estimates were given. No logic behind this.
10      Debtor days at 82. Creditor days at 240. Cash conversion cycle comes to 954 DAYS.
11      Post Issue NAV Comes Around 8.58. So The Asking Price Is Around 10 Times The Book Value
12      Auditors remuneration has increased 8 times approximately in year of IPO, reason unknown. 3 times increase in salaries and wages
13      20 times increase in legal and professional charges done with related parties like father and mother of KMP Aniket Kadam
14      No Comparable Listed Peers Of The Company
15      LM not much past history, only 2 issues. Not much listing gain.
16      Post Issue Company Is Looking At Market Cap Of Around 63.49 Crores

some good points especially on Insurance coverage - few counters

1. Pre IPO is generally done at discount to IPO valuation and not the other way around
2. Auditors remuneration could be linked to scope of re-statement and additional responsibilities of auditing a listed entity - so not comparable to earlier years
3. Working capital is not an object of the issue - so not sure why to provide information on pt 9 above
4. listing gain - more for SEBI to mandate bankers given investors need listing day gains

Buy CDSL at least take advantage of increased demat charges

I am invested huge quantity @ 330 to 550 . There is no looking back in this stock. Its on evergreen business, everyday new ipo is coming which will add to bottom line and increasing volume will keep on minting money.

BAS TUMHARI HI KAMI RAH GAYI THI.........................HO KYA RAHA HAI ?

कुछ नही भाई, जैसे आम का season होता हैं वैसे Ipo का season है।।😊😊

On serious note, market is at highest, there will be a normal correction sooner or later, at that time not many would dare to come out with IPOs, so there is this long line of IPOs..

Now this is crazy...I've never seen so many simultaneous IPOs in my 10yr journey of Stock Markets...absolutely crazy!!

Bhai brain freez ho gaya hai, ab bus GMP dekhkar 1-2 ipo apply kar dena hai. RHP padna and company analysis karne ka time nahi hai. Moreover, if allotted then obviously will read RHP to know whether to dump any of it in preopen or keep it for long.