Monday, September 26, 2011

Indo Thai Securities IPO

Indo Thai Securities, a Stock Broking company is coming out with an IPO of 40 lakh equity shares. The company provides trading services in Equities, Future and Options and Currency Derivatives Segments. The parent group of Indo Thai Securities is Indo Thai group which has 13 financial companies under its umbrella. The company also provides depository services through Central Depository Services (India) Limited. Other services offered by Indo Thai Securities includes Mutual Fund Service System (MFSS) & Interest Rate Futures (IRF) from NSE.

The IPO opens for subscription on 30 September and closes on 5 October, 2011. The company has fixed IPO price band at Rs 70-84 a share. Bids can be made for minimum of 80 equity shares and in multiples of 80 shares thereafter. The shares will list on both NSE and BSE.

Indo Thai Securities intends to utlilize the proceeds of the IPO for expansion and upgradation of existing branches and setting up branch network (with an outlay of Rs 2 crore), purchasing of office space for Mumbai regional office (with cost of Rs 4 crore), purchasing and setting up of office space for corporate office (with Rs 4 crore), brand building and advertising (Rs 3 crore) and augmenting long term working capital requirement (Rs 10 crore).

Corporate Strategic Allianz Limited is the book running lead manager to the issue. Sharepro Services Private Limited is the registrar to the issue.

Recommendation:
CARE has assigned Grade 2 to the IPO indicating below average fundamentals. We would not recommend this IPO to investors.

Subscription:
Indo Thai Securities IPO managed to get 1.1 times subscription by close of the IPO, largely due to support from retail segment.

At the close of the IPO,
QII segment did not get subscribed at all
NII segment got subscribed by 0.02 times
Retail segment got subscribed by 3.35 times

Allotment:
Click here to check Indo Thai Securities IPO Allotment status!

Listing:
Indo Thai Securities IPO got listed on 2 November, 2011. The stock fell 69%, to close at Rs 23 on the BSE after hitting an intra-day high of Rs 99.10 and low of Rs 18.10.