Sunday, September 19, 2010

Tecpro Systems IPO - Analysis, Recommendation, Subscription, Allotment, Listing

Analysis:
Tecpro Systems Ltd, an established material handling company in India, has come out with an IPO of 7,550,000 Equity Shares of Rs. 10 per share. The company is engaged in providing turnkey solutions in material handling, ash handling, balance of plant ("BoP") and engineering, procurementand construction ("EPC") contracts.

Tecpro Systems Limited undertakes turnkey projects in Bulk Solids Handling Systems including belt conveyors, slat conveyors, bucket elevators etc., manufacture equipment viz., stackers, reclaimers, various types of crushers, vibrating screens, feeder and conveyor components like Idlers and pulleys and undertakes civil and structural work along with electrical, control and instrumentation systems for the project.

The issue will open on September 23 and will close on September 28, 2010. The company has fixed a price band of Rs 340-355.

The objects of the issue are to fund working capital requirements; and fund expenditure for general corporate purposes.

Book running lead managers of the issue are Kotak Mahindra Capital Company Limited and SBI Capital Markets Limited. Registrar of the issue is Link Intime India Private Ltd.

Recommendation:
CRISIL has assigned Grade 4 to the IPO. We would also recommend this IPO to investors. The company has got good growth potential but cash out listing profit and invest again at a later stage.

Subscription:
The IPO opened for subscription on a week note but has got over 23 times subscribed at the close. At the close of the IPO,
QII segment got subscribed 27.99 times
NII segment got subscribed 62.48 times
Retail segment got subscribed 9.07 times
Employee reservation segment got subscribed 0.35 times

Allotment:
Click here to check if you have been alloted Tecpro shares!

Listing:
TecPro will get listed on 12th October. Bookmark this post for the listing!


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