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Tree House Education & Accessories Ltd IPO (Tree House IPO) Detail

August 10, 2011 - August 12, 2011

Tree House IPO is a book built issue of Rs 113.83 crores.

Tree House IPO bidding started from August 10, 2011 and ended on August 12, 2011. The shares got listed on BSE, NSE on August 26, 2011.

Tree House IPO price band is set at ₹135 to ₹153 per share. The minimum lot size for an application is 40 Shares. The minimum amount of investment required by retail investors is ₹6,120.

Jm Financial Limited and Motilal Oswal Investment Advisors Limited are the book running lead managers of the Tree House IPO, while Link Intime India Private Ltd is the registrar for the issue.

Refer to Tree House IPO RHP for detailed information.

Tree House IPO Details

IPO Date August 10, 2011 to August 12, 2011
Listing Date August 26, 2011
Face Value ₹10 per share
Price Band ₹135 to ₹153 per share
Lot Size 40 Shares
Total Issue Size8,432,189 shares
(aggregating up to ₹113.83 Cr)
Issue Type Book Built Issue IPO
Listing At BSE, NSE
Share holding pre issue25,283,081
Share holding post issue33,715,270

Tree House IPO Reservation

Tree House IPO offers 7,167,361 shares. 2,951,267 (41.18%) to QIB, 1,264,828 (17.65%) to NII, 2,951,266 (41.18%) to RII. 73,781 RIIs will receive minimum 40 shares and (sNII) and (bNII) will receive minimum 1,320 shares. (in case of oversubscription)

Investor Category Shares OfferedMaximum Allottees
Anchor Investor Shares Offered-NA
QIB Shares Offered2,951,267 (41.18%)NA
NII (HNI) Shares Offered1,264,828 (17.65%)
Retail Shares Offered2,951,266 (41.18%)73,781
Total Shares Offered7,167,361 (100%)

Tree House IPO Lot Size

Investors can bid for a minimum of 40 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

Application Lots Shares Amount
Retail (Min) 1 40 ₹6,120
Retail (Max) 32 1280 ₹195,840
Lot Size Calculator

Tree House IPO Promoter Holding

The following individuals are the Promoters of the Company:

1. Mr. Rajesh Bhatia; and
2. Mrs. Geeta Bhatia

Share Holding Pre Issue 39.47%
Share Holding Post Issue 29.6%

About Tree House Education & Accessories Ltd

Incorporated in 2006, Tree House Education is one of the leading educational services providers in India. As per CRISIL report, they operate the largest number of self-operated pre-schools in India. They have 177 pre-schools under the brand name of "Tree House" across 23 cities in India.

Tree House provide a wide variety of educational services to K-12 schools which includes designing curriculum and providing teaching aids, supplying methods for imparting education, organizing extra-curricular activities for students and teacher training.

They offer playschool and nursery facilities, vacation camps, mother-toddler classes, hobby classes, day care facilities and teacher training course at pre-schools. Tree House Education's pre-schools are mainly located in the states of Maharashtra, Gujarat, Karnataka, Rajasthan and Andhra Pradesh. Company has been ranked amongst the 100 Small Business of the year 2010 in the annual survey conducted by the Franchising World.

Company Financials

ParticularsFor the year/period ended (in Rs. Million)
31-Dec-1031-Mar-1031-Mar-0931-Mar-0831-Mar-07
Total Income305.73218.71106.4754.260.99
Profit After Tax (PAT)70.7825.995.12(1.91)(4.89)

Key Performance Indicator

KPI Values
ROE5.7%
RoNW7.5%

Objects of the Issue (Tree House IPO Objectives)

The object of the issue are to:

1. Expansion of pre-school business;
2. Acquisition of office space;
3. Procurement of exclusivity rights to provide educational services;
4. Construction of infrastructure for educational complexes in Rajasthan and Gujarat;
5. Repayment of loan; and
6. General corporate purposes.


Tree House IPO Subscription Status (Bidding Detail)

The Tree House IPO is subscribed 1.85 times on August 12, 2011 6:00:00 PM. The public issue subscribed 2.76 times in the retail category, 1.02 times in the QIB category, and 1.68 times in the NII category. Check Day by Day Subscription Details (Live Status)

CategorySubscription (times)
QIB1.02
NII1.68
Retail2.76
Total1.85

Tree House Education IPO Grading

CRISIL has assigned an IPO Grade 3 to Tree House Education IPO. This means as per CRISIL, company has 'Average Fundamentals'. CRISIL assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. Read Tree House IPO Report

Tree House IPO Prospectus

Tree House IPO Rating

201
3.7
Rating:Rated 3.7 stars
Vote Here ...

Tree House IPO Listing Details

Listing Date August 26, 2011
BSE Script Code 533540
NSE Symbol TREEHOUSE
ISIN INE040M01013
Final Issue Price ₹135 per share

Pre-Open Session - NSE Pre-Open Session - BSE

Listing Day Trading Information

Price Details
Final Issue Price
Open
Low
High
Last Trade
BSE
₹135.00
₹132.80
₹104.15
₹161.50
₹116.55
NSE
₹135.00
₹132.00
₹105.15
₹161.50
₹117.60

Check IPO Performance…

Tree House Education & Accessories Ltd Contact Details

Tree House Education & Accessories Ltd
702 C, Morya House,
Off New Link Road,
Andheri (West), Mumbai 400 053
Phone: +91 22 6456 2320
Email: compliance@treehouseplaygroup.net
Website: http://www.treehouseplaygroup.net

Tree House IPO Registrar

Tree House IPO - Buy or Not

Tree House IPO Recommendation Summary

Review By Subscribe Neutral Avoid
Brokers 0 0 2
Members 0 0 0

Read All Reviews Post Your Review Manage Reviews

Tree House IPO FAQs

Tree House IPO is a main-board IPO of 8,432,189 equity shares of the face value of ₹10 aggregating up to ₹113.83 Crores. The issue is priced at ₹135 to ₹153 per share. The minimum order quantity is 40 Shares.

The IPO opens on August 10, 2011, and closes on August 12, 2011.

Link Intime India Private Ltd is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.

The Tree House IPO opens on August 10, 2011 and closes on August 12, 2011.

Tree House IPO lot size is 40 Shares, and the minimum amount required is ₹6,120.

You can apply in Tree House IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don't offer banking services. Read more detail about apply IPO online through Zerodha, Upstox, 5Paisa, Nuvama, ICICI Bank, HDFC Bank and SBI Bank.

The finalization of Basis of Allotment for Tree House IPO will be done on [.], and the allotted shares will be credited to your demat account by [.]. Check the Tree House IPO allotment status.

The Tree House IPO listing date is on August 26, 2011.
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Tree House IPO Message Board

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278 Comments

278. Ravi, Bangalore |   Link |  Bookmark |September 30, 2011 5:30:18 PM (300+ Posts)
Tree House 154

It could rise to 197, 230 or even 276+. Stop-loss 134.

ACCUMULATE at current levels or on dips upto 135.

Booking profit at each target & trailing stop-loss after retracing the targets again is important to ride the volatality in small-cap stocks.
277. vasanth |   Link |  Bookmark |September 22, 2011 11:25:47 AM
Thanks Ravi.
276. Ravi, Bangalore |   Link |  Bookmark |September 21, 2011 4:44:23 PM (300+ Posts)
276. vasanth

Tree House 180

Above 130, I am not comfortable with valuation. Now it is in trading zone.

Wait till week-end, you will get good opportunity to enter. Play with stop-loss. Be prepared to loose Rs.10 - Rs.15, there is a chance of making Rs.30 - Rs.40 within a week.
275. vasanth |   Link |  Bookmark |September 21, 2011 3:23:05 PM
Ravi,

Any idea why Treehouse stock is going up like anything? Whats ur call on this for long term, i cannot do any daily trades?

Thanks
274. Ravi, Bangalore |   Link |  Bookmark |September 20, 2011 5:53:29 PM (300+ Posts)
Tree House 150

This is further to my comment # 272.

I will utilise any dip to take exposure, preferably below 138 with a stop-loss of 124.

My target is 165, 190 or even above 220+.

Profit booking at each target & trailing stop-loss is my trading strategy. Eg: if hits 165, I will book profit & at closing on same day or any other day if crosses 165 for second time, I will trail my stop-loss & take exposure again for further targets.
273. Jackpoat |   Link |  Bookmark |September 15, 2011 3:57:24 PM (200+ Posts)
Tree House goes the road of vip,jubilant,lovable
272. gundu anna |   Link |  Bookmark |September 9, 2011 10:36:18 PM (500+ Posts, 100+ Likes)
Sell tree house and forget, if holding any..
271. Ravi, Bangalore |   Link |  Bookmark |September 5, 2011 8:39:10 PM (300+ Posts)
Tree House 120

Fair Value appears to be around 130. Any fall to 72 or below 40 could be used to take fresh exposure in phases.

Based on FY 2010 earnings, the PE is over 78; Book Value 3.73x. NPM 23%.

It is not related to education; it is a pre-school for kids, playgroup and kindergarten type of business. It is making good money; a unique kind. They have introduced afternoon shift particularly in the metro branches. It has 230 branches, where each branch produce sales of 17 Lakhs and profit of 4 lakhs. They operate on franchise model also.

They charge high fees and parents are still willing to pay as they see it as an investment rather than an expense.

The company is not serious about complying statutoy rules in time - delay in depositing income tax, paying PF, ESI, sales tax etc. This information is available in RHP.
270. Ravi, Bangalore |   Link |  Bookmark |September 5, 2011 5:26:41 PM (300+ Posts)
269. gundu anna

Your notion that Operator stocks don't follow chart is wrong. Chart shows the historical prices. It is left to the analyst- how they intrepret chart.

Astrology is not vooooovooooooo science, however, astrologer could go wrong. Astrologer could interpret the data wrongly.

Technical analysis is not perfect science. It shows the probability. Eg: if IPO price breaks, then most likely scenario is bearish. However, if some big fund put large buy orders, it could go up despite breaching issue price. Hence, stop-loss is important.

Trading success depends on how less you loose when you go wrong & how much you make when your call is right. Out of 10 trades, if you do reasonable analysis, at least five will click. Don't think that all 10 would go wrong. Professional traders will have some base & reasonable way of making directional call. Most importantly, target & stop-loss are pre-determined. No emotion for traders if they have trading plan!

Had you shorted Brooke at 115 after breaching open price of 120, you could have covered at 62. A whopping profit of Rs.53! Will you get such returns in good stocks? In case your trades goes wrong, you loose only Rs.5.

Trading is all about winning some & loosing few. Will Australia win all matches? When India looses one-day match wih 10 - 20 runs, although fans are disappointed, they will get thrill! However, if India looses one-day match with 200 runs, fans will get upset. Similarly if you loose Rs.50 in Brooke, then it is not trading. However, if trades loose Rs.10 - Rs.15, it is all part of game. Trading in Operators stock gives thrill; there is a chance of making good profit with reasonable risk.

There is no perfect formula in trading to make profit in all trades! You should have basic understanding & risks associated with traders. Criticising is easy job, but, trading is not!! Without trading plan, making even Rs.100 profit is very very difficult!!!
269. DURAISWAMY |   Link |  Bookmark |August 31, 2011 11:39:26 PM
Dear Sreedhar . What you wrote may be correct. I agree with you. sometimes the company may have their account with Dhanalakshmi bank and LOAn with Dhanalakshmi BANK. Thank you for quick response
268. gundu anna |   Link |  Bookmark |August 30, 2011 8:15:00 PM (500+ Posts, 100+ Likes)
268. Ravi, Bangalore:

Ok, congartes, u made lot of money in trading in third class issues...

But one has to remember that third class/ manipulated issues dont follow charts. I am only writing here to warn innocent retail investors on dealing with such stocks.
267. Ravi, Bangalore |   Link |  Bookmark |August 30, 2011 4:28:48 PM (300+ Posts)
267. gundu anna

I, too, not expert. I am giving probability whether target could hit or stop-loss could trigger! It is only probability, not perfect science!

Your statement that experts don't trade in junk stocks is incorrect. The fact is, investors don't invest in junk stocks, but traders don't hate any stock. Traders put stop-loss & trade in both good & bad stocks.

Had you shorted as per my hint, you could have made profit! Keep that in mind before making any loose talks.

Making loose talk is easy, giving opinion during trading hours is challenging! Trading is only probability, not certainty!! If you believe, one should not trade in junk stocks, then there is no reason for you to check this site in the IPO Section meant for junk IPOs!!!
266. gundu anna |   Link |  Bookmark |August 29, 2011 8:46:41 PM (500+ Posts, 100+ Likes)
I am not a market expert. If i am so, I wouldnot be writing my technical skills here, rather will use my skills to trade..

Remember, experts do not trade in third class stocks... its only punters speculation. Nobody can say this will go to that price and that will come to this price. these are all somebody wasting time....
265. Ravi, Bangalore |   Link |  Bookmark |August 29, 2011 1:36:47 PM (300+ Posts)
258. IPO ANALYSIS / 265. gundu anna

There is no need for me to prove IPO Analysis or Gundu Anna. I have given my trades & opinion during trading hours. That is enough.

"I have clearly mentioned that below 138, I will short".

I have shorted whenever my support level is breached with stop-loss. You can verify the support levels that I mentioned.

IPO Analysis & Gundu Anna, there are few options for you:-

1. Ignore messages that you believe not worth,
2. You give your trading idea during trading hours.

Here, everybody can give their opinions. Traders should be careful. You can ask for proof if you pay money. Else, ignore.
264. gundu anna |   Link |  Bookmark |August 28, 2011 1:26:08 PM (500+ Posts, 100+ Likes)
Dear Investors,

Be careful with so called traders. You will loose everything if you trade with somebodys free advices..
263. bond bond |   Link |  Bookmark |August 28, 2011 12:16:48 AM
There are 2 things... Either retail investors should opt for ipo listing gains or hold it for medium term... In the latter case, the investors should judge the stock over a one month period after listing... If its the first case I.e.listing gains then the stock provided enough opputunities for 15 to 20 % exit till 2.45 pm... Retail investors who got a bit carried away lost money...
262. Sreedhar |   Link |  Bookmark |August 27, 2011 8:23:53 PM (900+ Posts)
Duraiswamy,
QIB was subscribed just around 1 times which means these people were persuaded & offered some carrots to pass the issue becos DRHP had clear provison QIB needs to be subscribed to make the issue pass through.Since they had obliged ,they were given profits which were taken with both hands.
261. DURAISWAMY |   Link |  Bookmark |August 27, 2011 5:07:47 PM
Dhanlaxmi Bank sells 7.3 lakh shares of Tree House. which pulled down the price below issue price. WILL SEBI SHOULD STOP QIB'S TO SELL ON LISTING DAY TO PROTECT RETAIL INVESTORS MONEY. ALL ipoS GOES BELOW ISSUE PRICE ON LISTING DAY ITSELF. BETTER TO stop APPLYING FOR ipo
260. JAG CHITTORA |   Link |  Bookmark |August 27, 2011 9:32:51 AM
I AM SURPRISED TO NOTE THE VARIATIONS IN PRICES FROM 160 TO 116. SUDDENLY AFTERNOON PRICE GOES BELOW TO 116 i.e. SOMEONE LOOSING LARGE MONEY IN IPO!!!
259. chaitu s |   Link |  Bookmark |August 26, 2011 9:24:58 PM
Dhanalakshmi Bank & Inventure Growth has offloaded their stake in the market.

Ref BSE bulk deals.