MUMBAI, 23RD DECEMBER 2015 :
Chennai based OFS Technologies Ltd. (OFST) is coming out with a maiden IPO of 17,04,000 equity shares of Rs. 10 each at a fixed price of Rs. 25 per share to mobilize Rs. 4.26 crore. 96,000 equity shares out of these have been reserved for Market Makers. The issue will open for subscription on 28-12-2015 and will close on 31-12-2015. Minimum application is to be made for 6,000 shares and in multiples thereon.
The Company’s present paid up equity capital of Rs. 4.71 crore will stand enhanced post IPO to Rs. 6.41 crore.
OFS Technologies Ltd. is a technology service provider and takes care of the entire cycle of software product development, maintenance, quality assurance testing and support at a reasonable cost to its clients.
OFS Technologies Ltd. is perhaps the last IPO for the calendar year 2015.
On performance front, the Company has posted a weighted average EPS of Rs. 10.53 for the last three fiscals on the then paid up equity. For first three months of current fiscal ended on 30-6-2015, it has earned net profit of Rs. 0.56 crore on a turnover of Rs. 2.41 crore, which comes to an EPS of Rs. 1.20. If we annualize the EPS for the three months period in the current fiscal, the post IPO stands at Rs. 3.50. The issue price is Rs. 25 at a P/E of 7 plus of current annualized EPS making it a reasonably priced issue. Peers are trading at a P/E ranging from 35 to 225.
On merchant banker’s front, this is the second mandate and the first one that entered in the fiscal 2013-14 has given average reward.
The issue is solely lead managed by V.B. Desai Financial Services Ltd. and Bigshare Services Pvt. Ltd. is the registrar to the issue. Post allotment, shares will be listed on BSE SME.