Aishwarya Telecom Ltd. IPO Details
Registered Office Address 3-C Samrat Commercial Complex, Opp. A G Office, Saifabad, Khairatabad, Hyderabad, Andhra Pradesh - 500004
Phone 91- 40- 23236019 / 23235439 Fax 91- 40-23296282
Book Running Lead Managers SREI Capital Markets Ltd., Sobhagya Capital Options Ltd.
Analysis
Company Background of Aishwarya Telecom Ltd:
* Aishwarya Telecom Ltd. (ATL) acquired the partnership firm named Advanced Electronics & Communications System & was incorporated as Aishwarya Telecom Pvt. Ltd. in 1995. Subsequently it was converted into public company to the present in July 2005.
* ATL’s engaged in trading and manufacturing of test & measuring equipments for telecom industry. The product portfolio can be classified into three categories namely-
* ATL has wide range of products with telecom engineering center (TEC) approval for selling to public sector undertakings like BSNL, Railways, Railtel, MTNL, TCIL, GAIL, PUNCOM etc.
* ATL has a small R&D facility at Hyderabad, manufacturing units each at Dehradun and Yanam and three marketing offices at Delhi, Mumbai and Hyderabad.
* The company plans to expand into designing products for defence & educational sector & proposes to set up a corporate, marketing, administrative office and R&D centre and also a new production unit at Hyderabad.
* The company has entered in a MoU with IIT, Chennai for indigenous manufacturing of Optical Time Domain Reflecto Meter (OTDR).
* As on February 14, 2008, its order book worth over Rs.12.18 crores for supply of products to its customers.
* Post issue promoters & promoter’s group shareholding will reduce to 45.64% from existing 73.05%.
Objects of the IPO:
* To fund the capital expenditure for research & development of Main Frame OTDR in collaboration with IIT, Chennai.
* To fund the capital expenditure for research & development of ethernet traffic analyzers.
* To fund the cost of Global System for Mobile Communication (GSM)/ General Packet for Radio Service (GPRS)/Code Division Multiple Access (CDMA) analyzers for providing technical audit services to the mobile operators.
* To purchase land & construct building for new corporate, marketing, administrative and R&D office at Hyderabad.
* To purchase land & construction of building for a new production unit at Hyderabad.
* To meet additional working capital requirements for its operations.
Valuation:
* Company’s operating income is increasing continuously at a CAGR of 52.59% from Rs.4 crores for FY03 to Rs.21.74 crores for FY07. For the nine months ended 31st December, 2007 operating income stood at Rs.22.08 crores.
* Net profit has increased at a CAGR of 93.87% from Rs.0.21 crores for FY03 to Rs.3.03 crores for FY07. For the nine months ended 31st December, 2007 its net profit stood at Rs.3.16 crores.
* NPM in FY07 has increased to 13.86% from 5.35% in FY03 due to increase in operating income. For the nine months ended 31st December, 2007 it stood at 14.12%.
* Staff cost to operating income has decreased to 3.87% in FY07 from 9.82% in FY03 due to efficiency in controlling staff cost. For the nine months ended 31st December, 2007 its staff cost stood at 3.9%.
* Debtors’ turnover ratio in FY07 was decreased to 2.3 times from 8.76 times in FY03.Collection period in FY07 was increased to 159 days from 42 days in FY03.
* Interest coverage ratio in FY07 was decreased to 7.35 times from 10.68 times in FY06 due to substantial increase in interest expenses.
* RONW of the company in FY07 was decreased to 33% in FY07 from 36.29% in FY05 due to issue of shares. Till 31st December, 2007 it stood at 19.11%.
* Book value per share in FY07 was increased to Rs.17.27 from Rs.12.78 in FY04.
* EPS as on 31st March, 2007 stood at Rs.5.68. Annualized EPS (based on 9 months ended till 31st December, 2007 net profit) for March, 2008 works out to be Rs.5.79.
* Post issue PE multiple (based on annualized EPS for March, 2008) will be 8.86 at upper price band &8.10 at lower price band.
Registered Office Address 3-C Samrat Commercial Complex, Opp. A G Office, Saifabad, Khairatabad, Hyderabad, Andhra Pradesh - 500004
Phone 91- 40- 23236019 / 23235439 Fax 91- 40-23296282
- Issue Open 15/04/2008 Issue Close 17/04/2008
- Issue Size 40,00,000 Equity Shares Issue Type Book Building
- Face Value Rs.10/- Price Range Rs. 32/- to Rs. 35/-
- Tick Size Re. 1/- Market Lot 200
- Minimum Order Qty 200
- Listing Stock Exchange Mumbai
Book Running Lead Managers SREI Capital Markets Ltd., Sobhagya Capital Options Ltd.
Analysis
Company Background of Aishwarya Telecom Ltd:
* Aishwarya Telecom Ltd. (ATL) acquired the partnership firm named Advanced Electronics & Communications System & was incorporated as Aishwarya Telecom Pvt. Ltd. in 1995. Subsequently it was converted into public company to the present in July 2005.
* ATL’s engaged in trading and manufacturing of test & measuring equipments for telecom industry. The product portfolio can be classified into three categories namely-
- o fiber optic cable testing equipments,
- o data network testers,
- o copper cable testing equipments.
* ATL has wide range of products with telecom engineering center (TEC) approval for selling to public sector undertakings like BSNL, Railways, Railtel, MTNL, TCIL, GAIL, PUNCOM etc.
* ATL has a small R&D facility at Hyderabad, manufacturing units each at Dehradun and Yanam and three marketing offices at Delhi, Mumbai and Hyderabad.
* The company plans to expand into designing products for defence & educational sector & proposes to set up a corporate, marketing, administrative office and R&D centre and also a new production unit at Hyderabad.
* The company has entered in a MoU with IIT, Chennai for indigenous manufacturing of Optical Time Domain Reflecto Meter (OTDR).
* As on February 14, 2008, its order book worth over Rs.12.18 crores for supply of products to its customers.
* Post issue promoters & promoter’s group shareholding will reduce to 45.64% from existing 73.05%.
Objects of the IPO:
* To fund the capital expenditure for research & development of Main Frame OTDR in collaboration with IIT, Chennai.
* To fund the capital expenditure for research & development of ethernet traffic analyzers.
* To fund the cost of Global System for Mobile Communication (GSM)/ General Packet for Radio Service (GPRS)/Code Division Multiple Access (CDMA) analyzers for providing technical audit services to the mobile operators.
* To purchase land & construct building for new corporate, marketing, administrative and R&D office at Hyderabad.
* To purchase land & construction of building for a new production unit at Hyderabad.
* To meet additional working capital requirements for its operations.
Valuation:
* Company’s operating income is increasing continuously at a CAGR of 52.59% from Rs.4 crores for FY03 to Rs.21.74 crores for FY07. For the nine months ended 31st December, 2007 operating income stood at Rs.22.08 crores.
* Net profit has increased at a CAGR of 93.87% from Rs.0.21 crores for FY03 to Rs.3.03 crores for FY07. For the nine months ended 31st December, 2007 its net profit stood at Rs.3.16 crores.
* NPM in FY07 has increased to 13.86% from 5.35% in FY03 due to increase in operating income. For the nine months ended 31st December, 2007 it stood at 14.12%.
* Staff cost to operating income has decreased to 3.87% in FY07 from 9.82% in FY03 due to efficiency in controlling staff cost. For the nine months ended 31st December, 2007 its staff cost stood at 3.9%.
* Debtors’ turnover ratio in FY07 was decreased to 2.3 times from 8.76 times in FY03.Collection period in FY07 was increased to 159 days from 42 days in FY03.
* Interest coverage ratio in FY07 was decreased to 7.35 times from 10.68 times in FY06 due to substantial increase in interest expenses.
* RONW of the company in FY07 was decreased to 33% in FY07 from 36.29% in FY05 due to issue of shares. Till 31st December, 2007 it stood at 19.11%.
* Book value per share in FY07 was increased to Rs.17.27 from Rs.12.78 in FY04.
* EPS as on 31st March, 2007 stood at Rs.5.68. Annualized EPS (based on 9 months ended till 31st December, 2007 net profit) for March, 2008 works out to be Rs.5.79.
* Post issue PE multiple (based on annualized EPS for March, 2008) will be 8.86 at upper price band &8.10 at lower price band.
Comments