HEM Securities recommends to ‘Avoid’ Texmo Pipes IPO
The company has come out with public issue of 50 lakh shares of face value Rs 10 each through a 100% book building process.
By ET Bureau |
MUMBAI: HEM Securities has advised investors to ‘Avoid’ the initial public offering of Texmo Pipes & Products. The company has come out with public issue of 50 lakh shares of face value Rs 10 each through a 100% book building process.
It plans to use the proceeds expansion of product range, setting up manufacturing facilities for injection mouldings/fittings and woven sacks and meeting long term working capital requirements.
“The company is bringing the issue at price band of Rs 85-90 per share which will have the p/e multiple of 16.61-17.58 at post issue annualized eps of Rs 5.12.Looking at the financials of company, the topline of company has witnessed downfall in FY 2009 as compared to FY 2008.
Also the listed peers of company like Precision Pipes and Tulsi Extrusions are trading at p/e multiple of less than 11. Hence looking at the valuations of company, we recommend investor to Avoid the issue,” the report said.
As on February 16 till 4 pm the issue was subscribed 0.31 times.
It plans to use the proceeds expansion of product range, setting up manufacturing facilities for injection mouldings/fittings and woven sacks and meeting long term working capital requirements.
“The company is bringing the issue at price band of Rs 85-90 per share which will have the p/e multiple of 16.61-17.58 at post issue annualized eps of Rs 5.12.Looking at the financials of company, the topline of company has witnessed downfall in FY 2009 as compared to FY 2008.
Also the listed peers of company like Precision Pipes and Tulsi Extrusions are trading at p/e multiple of less than 11. Hence looking at the valuations of company, we recommend investor to Avoid the issue,” the report said.
As on February 16 till 4 pm the issue was subscribed 0.31 times.
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