IPO Update : TAC Ltd.

Keep your expectations Low
Talbros Automotive Components Limited is coming with a second public offer aggregating Rs. 50 Crores. The issue comes at a price band of Rs. 90-102 per share. The Share of the company is currently trading on BSE at Rs. 138. The stock has hit a 52-week high of 349 and a low of Rs. 60.

Investment Guru recommends investors to apply in the public offer. However, investors with eye on listing gains are advised to keep their expectation low as the money on the table is already visible and the stock price is expected to come down on listing. Investment Guru is of view that the offer should give a return in the range of 20-25% on its issue price. From long term perspective too, the stocks looks good at the offfer price.

Let’s dig into the company:
The objective of the public offer is to fund the setting up of forging plant at Faridabad to meet internal requirements.

The investment is in joint venture with Nippon Leakless Corporation, Japan for catering mainly to Honda group of companies within the country

The promoters are also investing in the public issue, which is a good indicator.

The company is the largest exporter of Gskets.

The clientele of the company includes Tat Motors, Ashok Leyland and swaraj.

The company is a profit making company since 1959 and has a dividend track record for 48 years. The last dividend declared was 20%.

The company has made six issues of Bonus shares till date. The last bonus isse of 5:2 was made in Dec.2004.

The major competitors of the company are Banco and Victor Gaskets.

The offer comes at a multiple of 3.66 times the Book value of the company.

For the quarter ended June, 2005, company has clocked sales of Rs.29 crores and a net profit of 1.59 Crores

Issue opens : 01-Sep-2005
Issue Closes: 09-Sep-2005
Registrar : KarvyComputershare Pvt. Ltd.
Mode : 100% Book Building

Coming soon on Investment Guru :
Does the Sensex makes Sense ?

The stock markets are booming with index touching new highs. The rally is spread acrss large , mid and small caps. How should a small investor approach the markets at this juncture? Should sensex be taken as a guide for making investment decisions?
Watch out for a crtical analysis of the sensex and the stock movements and the investment policy to be adopted in a bull run. Exclusively on Investment Guru Blog !


Anonymous said...

Hi Rajesh, Thanks for the Update.

Anonymous said...

We are eagerly awiating your upcoming article on stock markets.
Your articles carry lot of insight.