This week is going for the week of new initial public offerings as many small and medium-sized companies coming up with their issues in the SME exchanges. Mumbai based company Total Transport Systems Limited is one in this IPO list. In this post, I will discuss the pros and cons of the issue and will do an in-depth Total Transport IPO review.
Total Transport IPO Issue Details
- The issue opens: July 25, 2017
- The issue closes: July 28, 2017
- Offer price: Rs. 45 per equity share
- Issue size: Rs. 17.01 crores
- Minimum application size: Rs. 1,35,000
- Listing Exchange: NSE Emerge
- Registrar: Bigshare Services (P) Ltd
About Total Transport Systems Limited
- The company has been incorporated in 1994 and started its operations in Mumbai.
- They are mainly engaged in cargos consolidation as well as deconsolidation in different countries of the far east and the gulf area.
- The management team is comprised of Mr. Makarand Pradhan Prabhakar, Mr. Sanjiv Arvind Potnis and Mr. Shrikant Damodar Nibandhe.
- The main features on the companies operations are their round the clock service, timely alerts, live tracking, mobile app, and strong IT infrastructure.
Company Financials:
The company has posted seen big losses in FY2016 as the decline in their topline. The standalone EPS for the last 3 financial years is -(2.01) and the consolidated EPS for the last 3 financial years is -(1.38).
Pros For Total Transport IPO:
- Years of experience – started operations in 1994.
- Global presence.
- The merchant banker has a good track record, last 8 IPOs out of 10 got listed at profit.
Cons For Total Transport IPO:
- Promoters stake is priced as low as 10-20 paisa as compared to the issue price of Rs. 45.
- The issue looks fully priced.
- Topline and bottomline is still not stabilized.
- Four years profits were wiped out by one single year’s loss in the FY2015-2016.
So the Total Transport IPO review rates this issue NEUTRALLY AVOID. However, risk savvy investors should once again use our closing day IPO choosing technique.
