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Review By Dilip Davda on December 16, 2015
OFS Technologies Ltd (OFST) is perhaps the last IPO for the calendar year 2015 to bid adieu. Details of the same are given hereunder:
OFST is a technology service provider and takes care of the entire cycle of software product development, maintenance, quality assurance testing and support at affordable costs to its clients.
To part finance its plan for JV, strategic acquisitions and other general purpose fund need, the company is coming out with a maiden IPO of 1704000 equity share of Rs. 10 each at a fixed price of Rs. 25 per share to mobilize Rs. 4.26 crore. Issue opens for subscription on 28.12.15 and will close on 31.12.15. Minimum application is to be made for 6000 shares and in multiples thereon, thereafter. Issue is solely lead managed by V B Desai Financial Services Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE SME. Post IPO its present paid up equity capital of Rs. 4.71 crore (all issued at par) will stand enhanced to Rs. 6.41 crore.
On performance front, the company has posted a weighted average EPS of Rs. 10.53 for last three fiscals on the then paid up equity. For first three months of current fiscal, it has earned net profit of Rs. 0.56 crore on a turnover of Rs. 2.41 crore. If we annualized these and attribute to the fully diluted equity post IPO then the EPS stands at Rs. 3.50 and thus the asking price is at a P/E of 7 plus making it a reasonably priced issue. Peers are trading at a P/E ranging from 35 to 225.
On merchant banker’s front, this is the second mandate and the first one that entered in the fiscal 2013-14 has given average reward.
Considering reasonable pricing of the IPO, investors can plan long term investment, as most of SME IPOs have given some rewards post listings in the process.
Review By Dilip Davda on December 16, 2015
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The initial public offer (IPO) of OFS Technologies Ltd offers an early investment opportunity in OFS Technologies Ltd. A stock market investor can buy OFS Technologies IPO shares by applying in IPO before OFS Technologies Ltd shares get listed at the stock exchanges. An investor could invest in OFS Technologies IPO for short term listing gain or a long term.
Read the OFS Technologies IPO recommendations by the leading analyst and leading stock brokers.
OFS Technologies IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the OFS Technologies IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for OFS Technologies IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the OFS Technologies IPO.
The OFS Technologies IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit OFS Technologies IPO allotment status to check.
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