Issue Highlights
Issue Period | 3/3/15-5/3/15 |
Price Band | Rs. 181-200 |
Issue Type | 100% Book Building |
Issue Size | 1,41,82,598 shares |
Face Value | Rs. 10 |
Minimum Bid Lot | 75 Shares |
Maximum retail Subscription | Rs. 1,95,000 (13 lots) |
Listing | BSE,NSE |
Industry | Cable & Broadband Service |
Registrar | Karvy Computershare |
Issue Details
(1) Fresh Issue:60,00,000 equity shares
(2) Offer for Sale by NSR-PE Mauritius LLC: 81,82,598 equity shares
Company Profile:
Ortel Communication is a regional cable television and high speed broadband provider predominantly in Odisha (constituting 89 % of its customer base) and a few other states like Chhattisgarh, Andhra Pradesh and West Bengal.
Financial Profile:
Parameter | Value |
P/E | -48.6 |
P/B | 17.6 |
NPM % | -9.5 |
ROCE % | -6 |
ROE % | -36.2 |
Current Ratio | .4 |
Z- Score | .62 |
Inference: The fundamentals of the company are miserable and the company is clearly a value destroyer. The Z-score of .62 indicates the high probability of its bankruptcy.
Total debt is almost 6.5 times Ortel’s networth and rising interest costs are detrimental to Ortel’s strive towards profitability. Besides, Ortel predominantly operates in Orissa only (and a few more states in lower capacities) and its business is quite vulnerable to rising completion and changing technologies.
There was no need to delve deeper into future prospects and financials of this company and this issue is a clear avoid for me.
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