Dinesh Engineers, the Mumbai-based fibre network service provider opened its initial public offering (IPO) on 28 September for a three-day period at a price band of Rs 183-185 per share.
Here are 10 things about the issue that you should know before you invest:
- The IPO will close on 3 October (2 October being a public holiday, stock exchanges will remain closed).
- The company is offering one crore shares to raise Rs 185 crore, for the expansion of its business by setting up of further OFC network under IP-1 license, general corporate purposes and to meet expenses related to the issue.
- Dinesh Engineers is into the business of passive communication infrastructure to mainly telecom operators and internet service providers. It has created a fibre network of around 7,500 kms in 10 states and laid down a network of 9,500 km for its clients. Its network is used by top 3 telecom operators in the country and it is also into the business of laying down gas pipelines in Mumbai for Mahanagar Gas Ltd.
- Choice Broking said that the issue was priced at P/E valuation of 11.8 times its restated FY18 EPS of Rs 15.6, on the higher price band.
- In the last two years through March 2018, its revenue and net profit grew at a compounded annual growth rate of 57 percent and 119 percent, especially on account of the higher revenue bookings in the year ended March 2018.
- Brokers have given the IPO a "subscribe with caution" listing because of its limited number of large customers with a concentrated area. Any adverse change in regulatory rules could substantially affect the revenue of the company.