Issue Highlights
Issue Period | 11/7/16-13/7/16 |
Price Band (Rs.) | 705-710 |
Issue Size(shares) | 1,75,00,000 |
Issue Size (Rs. crore) | 1400 |
Issue Type | 100% Book built |
Face Value (Rs.) | 1 |
Listing | BSE,NSE |
Industry | IT |
Registrar | Link Intime India Ltd. |
Minimum Bid Quantity | 20 shares |
Maximum Retail Subscription | Rs. 1,98,800 (14 lots) |
BRLM | Citygroup Global, Kotak, ICICI Sec |
Retail Discount | Rs. 10 |
Offer for Sale: 1,75,00,000 equity shares
Fresh Issue: Nil
Equity Shares Outstanding Prior to the Issue: 169,843,538
Equity Shares Outstanding After the Issue: 169,843,538
QIB Portion: up to 87,50,000 equity shares
NII: at least 26,50,000 equity shares
RII: at least 61,50,000
Objects of the Issue
This issue being an offer for sale no proceeds shall go towards the company . This issue shall fetch listing benefits to the company .
Risks & Threats
1. Being an IT company with around 95 % of its revenue coming from abroad, stronger rupee against foreign currencies especially dollar shall not augur good for this company
2. Around 70 % and 18 % of the revenue comes from North America and Europe respectively and thus company’s profitability depends on the well being of these economies
3. BFSI and Insurance sector account for 26 % and 21 % of the total revenue and any slowdown in this sector shall not augur good for this company
4. Top ten clients account for almost half of the revenue and thus company can’t afford even a few parting their ways out
Financial Profile #
Parameter | FY 15 |
PEG (Profit, trailing 4 years) | .55 |
Net Profit Margin (%) | 15.8% |
Return on Equity (%) | 50 |
Total Liability to Net worth | .74 |
Price to Book Value | 6.47 |
Operating Cash to Net Profit | .8 |
TIE (Times Interest Earned) | 121 |
EV/EBITDA | 10.5 |
Profit CAGR (%) | 23.3 |
# using upper end of the price-band
Comparison with the Peers #
PEG | NPM (%) | ROE(%) | EV/EBITDA | |
L&T Infotech | .55 | 15.8 | 50 | 10.5 |
Infosys | 1.18 | 29.24 | 27.6 | 13.3 |
TCS | .99 | 26.64 | 38.87 | 16 |
# moneycontrol data
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