Tuesday, August 23, 2011

TD Power Systems IPO

TD Power Systems, one of the leading manufacturers of AC Generators with output capacity in the range of 1 MW to 52 MW, is entering the capital markets with a public issue of equity shares through 100% book building process.

Apart from manufacturing AC Generators, TD Power Systems also executes Turbine Generator (TG) island projects for steam turbine power plants with output capacity up to 52 MW using a Japanese turbine combined with TD Power generator. The companys customer base primarily comprises companies operating in the industrial sector and includes cement, steel, paper, chemical, metals, sugar co-generation, bio-mass power plants, hydro-electric power plants, etc.

TD Power Systems IPO shall open on 24 August and shall close on 26 August 2011. The company has fixed the price band at Rs 256-261 per equity share of Rs 10 each.

The company proposes to utilize the net proceeds of the issue mainly to finance the expansion of the existing manufacturing plant in Dabaspet, Bangalore and for the construction of a project office in Bangalore. It also proposes to utilize part of the net proceeds to repay debt, fund working capital requirements and for other general corporate purposes.

As of June 30, 2011 the company has completed a total of 92 TG island projects with an aggregate output capacity of 1,799 MW in India, Uganda, Kenya, Zambia and Philippines. As June 30, 2011, the company’s cumulative order book was Rs 1,094.68 crore.

Enam Securities Pvt Ltd is the global co-ordinator and book running lead manager for the issue. Antique Capital Markets Pvt Ltd and Equirus Capital Pvt Ltd are also the book running lead managers for the issue. Link Intime India Pvt Ltd is the registrar to the issue. TD Power Systems shares are proposed to be listed on the NSE and the BSE.

Recommendation:
CARE has assigned grade 4/5 to the issue indicating above average fundamentals. We would recommend this IPO to long term investors.

Susbscription:
TD Power Systems IPO has got subscribed around 3 times largely due to QIB support.

At the close of the IPO,
QII segment got subscribed by 6.52 times
NII segment got subscribed by 0.38 times
Retail segment got subscribed by 0.38 times

Allotment:
Click here to check TD Power Systems IPO Allotment status!

Listing:
TD Power Systems IPO got listed on 8 September, 2011. The share opened at Rs 251, touched an intra day high of 309 and an intra day low of Rs 242 before closing the day at Rs 275, 7% increase over the issue price of Rs 256.