Total Transport IPO Review (Total Transport Systems Ltd)

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

• Issue opens: July 25, 2017
• 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 on 1994 and started their operations in Mumbai.
• They are mainly engaged in cargos consolidation as well as deconsolidation in different countries of far east and 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 last 3 financial years is -(2.01) and the consolidated EPS for last 3 financial years is -(1.38).

Pros For Total Transport IPO:

• Years of experience – started operations on 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 prices as low as 10-20 paisa as compared to issue price of Rs. 45.
• Issue looks fully priced.
• Topline and bottomline is still not stabilized.
• Four years profits were wiped out by one single years 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.