Innovative Tyres & Tubes Limited was incorporated in 1995. As the name suggests, the company manufactures and sells various tyres and tubes for different vehicles suitable for Indian roads. Innovative Tyres & Tubes Ltd is coming up with an NSE SME IPO on 22 September 2017. The Innovative Tyres & Tubes Ltd IPO review will look into the draft prospectus and present investment viability for investors interested in this new issue.
About the issue – Innovative Tyres & Tubes Ltd IPO review finds the following details from the draft prospectus (DRHP) about this issue.
- Issue opens on – 22 September 2017
- Issue closes on – 26 September 2017
- Issue type – Book built issue IPO
- Issue size – 6,297,000 nos. of equity shares aggregating up to Rs 28.34 crores
- Issue price – Rs 42 to Rs 45 per equity share
- Face value – Rs 10 per equity share
- Lo size – A minimum of 3000 shares and in multiples thereof can be bought from this IPO
- Listing Exchange – NSE SME
- Issue objectives – The net proceeds from this issue will be used to fulfil the following requirements. a) To meet the cost of the expansion project of the existing manufacturing facility. b) To meet long-term capital expenditure requirement. c) to fulfil general corporate cost requirements.
About the Company – The Innovative Tyres & Tubes Ltd has a manufacturing facility located at Halol, Gujarat. Tyres and Tubes manufactured here are marketed all over India. The company sells its products under the brand Innovative. The company also has a strong business tie-up with tyre major Ceat Tyres Ltd. The company produces all kinds of nylon tyres for two-wheelers, three-wheelers and other vehicles. Besides marketing its own products in India, it also supplies to OEMs and exports to other countries.
Company Financials –
The company has been making profits in the last five fiscal. Though the profit growth was not steady and is riding on a bouncy curve.
Conclusion – The average EPS is Rs 3.15. The P/E of fully diluted post-IPO is 19 and as per draft prospectus P/E of its peers averages from 17 to 21. Thus the IPO is fully priced. Innovative Tyres & Tubes Ltd IPO review holds the view for this IPO is NEUTRAL.
Disclaimer – Views expressed in our IPO reviews are educated guesses made on the basis of available information from the open source and DRHP expressed for the educational purpose. Reviews should not be taken as an investment advice or any kind of recommendation. Investors/traders should invest capital at their own risk.
Partha, an engineer by education, is theoratically actively following the stock and commodity markets since 1990. He is an active trader since 2003. He has received formal education in future and options and quantum analysis. He is presently working on research oriented projects using Python and data analytics.