Hi Sharmistha Patel You need to put in a minimum of Rs.50000 to get some shares allotted because the madness oversubscription that happens in IPOs these days is huge and each and every IPO get oversubscribed.
since last 2-3 months, i had applied for 6 ipos through icicidirect. However i have not yet got any allotment of shares. Can anybody tell me what is the basis of allotment?
The annualised earning for FY07 of the company, the P/E multiple works out to be 7.53 (on post issue capital). Its EPS for the same consideration works out at 13.9. Considering it presence in the textile and steel sector the valuation appears reasonable. However, the company's history into different lines of business do not reflect its focus. This is also visible from the fact that the company's revenue over the last four years has grown at a marginal rate at a CAGR of 11.9%.
Moreover, the company's three Indian subsidiaries have registered dismal performances with an average loss of more than Rs 100 crore from 2003-2006 (September) period. The company has registered a decline of 4.09% in its turnover for the fiscal 2006 vis-à-vis previous fiscal. Also, the cost involved in the company's plans to set up a power plant for captive electricity cannot be ruled out.
The business prospects of pipe industry is high, but considering the presence of larger and integrated players in the pipe industry the competition can prove to be an obstacle.
TIL being established for such a long years with its varied interests, it hardly has a single-pointed focus and made its presence felt. Hence, the future prospects of the company seem to be uncertain, which may have implications on its financials and in turn may not be a lucrative offer.