Touchwood Entertainment Limited

LISTED

SME IPO · IPO Guide

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Issue Price

₹40

Listed On

21 Dec 2017

Listing Price

₹43.50 (+8.75%)

Current Price LIVE

₹43.50 (+8.75%)

🧮

Lot Size Calculator

Application	Lots	Shares	Amount
Retail	2	6,000	₹2,40,000
HNI Min	3	9,000	₹3,60,000

As per financials, company's growth is good, but only in top-line, RoNW is 19.14% for last three fiscals, there is sudden jump in bottom line in FY17 and FY18 and issue looks aggressively priced as per latest earnings. So, we give AVOID rating to this SME IPO.

Started in 1997, Touchwood Entertainment Limited is Delhi based company specializes in Event Management. Company offers all of its clients a complete variety of event facilities, like event planning, marketing, production and legal services for the events. Touchwood assists with all the planning, facilitating, negotiating, and handling of various aspects of wedding planning ensuring best services. Main services of company are as follow: 1. Mega Ground Concerts2. Private Social Events3. Wedding Planning and Wedding Decor4. Political Activation5. Artist Management6. Destination Wedding About the financial performance, Touchwood has posted turnover/net profits of Rs. 1.95 cr. / Rs. 0.03 cr. (FY14), Rs. 3.93 cr. / Rs. –(0.81) cr. (FY14), Rs. 6.22 cr. / Rs. 0.06 cr. (FY15), Rs. 12.77 cr. / Rs. 0.03 cr. (FY16) and Rs. 13.42 cr. / Rs. 1.01 cr. (FY17). For first five months of current fiscal, it has reported net profit of Rs. 0.33 crore on a turnover of Rs. 3.81 crore. Thus for last 15 months improvement in bottom line is surprising. It has posted an average EPS of Rs. 2.09 and average RoNW of 19.14% on an equity base of Rs. 2.01 crore. Issue is priced at a P/BV of 2.32 on the basis of post issue NAV. If we annualize latest earnings and attribute it on fully diluted post issue equity then asking price is at a P/E of around 19 plus. It has no listed peers to compare with. Based on previous financials record, issue looks aggressively priced. On merchant banker’s front, this is the 2nd mandate from its stable in past three years. The only listing (Shish Ind.) took place at a premium of around 7% on the day of listing and is currently quoting at a discount of about 12% (as on 07.12.17). As per financials, company's growth is good, but only in top-line, RoNW is 19.14% for last three fiscals, there is sudden jump in bottom line in FY17 and FY18 and issue looks aggressively priced as per latest earnings. So, we give AVOID rating to this SME IPO.

Fresh Issue

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Capital Expenditures for Business ExpansionRepayment of existing loansGeneral Corporate PurposeTo Meet the Issue Expenses
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Capital Expenditures for Business Expansion
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Repayment of existing loans
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General Corporate Purpose
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To Meet the Issue Expenses
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All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decision
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Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published on this applicatio
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With entry barriers, SEBI wants only well informed investors to participate is such SME offer
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With crazy recent listings, SME IPOs have started drawing attention of investors across the boar
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However, as SME issues have entry barriers and continued low preference from broking community, any reader taking decisions based on any information published here does so entirely at own ris
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Above information is based on information available as on date coupled with market perception

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Disclaimer

No financial information whatsoever published herein, should be construed as an offer to buy or sell securities, or as information to make investment decisions, or as an official confirmation of any transaction. All matter published herein is purely for educational and informational purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

💬 Community Discussion

24 Comments

A
Aditya. 30 Dec 2017, 08:09

ab nahi jayega kuch khas
A
Ashok. 29 Dec 2017, 21:27

Not sold yet.
I
IPO Guru. 23 Dec 2017, 18:54

unexpected move, so anything can be possible.
A
Aditya. 23 Dec 2017, 15:09

whats the expectation on 25th? another UC is difficult
A
Ashok. 21 Dec 2017, 21:38

hope tomorrow also uc
I
IPO Guru. 21 Dec 2017, 14:13

our expected price was 43-45 and its well above that now its upon you how long wait.
A
Aditya. 21 Dec 2017, 13:26

guruji hold or sell? its 48 now and no seller... will tomorrow it will hit uc?
A
Aditya. 20 Dec 2017, 21:17

i am also thinking tomorrow its gonna be 48
A
Ashok. 20 Dec 2017, 21:13

don't sale anyone 8 rs buyer. tomorrow circit..
I
IPO Guru. 20 Dec 2017, 16:42

premium of 3 to 4, so its advisable to sell on listing around 43-45
A
Aditya. 20 Dec 2017, 13:17

what is the grey market price though?
A
Aditya. 20 Dec 2017, 11:24

thank you guruji, It was first I applied my own discretion and was not sure for the outcome, now I am relieved
I
IPO Guru. 20 Dec 2017, 11:19

as per gmp it may open around 43-44. So sell around this level.
A
Aditya. 20 Dec 2017, 00:47

will there be any listing gain of atleast 5%?
I
IPO Guru. 13 Dec 2017, 11:15

@Laxman, you should try using icici bank net banking.
A
anshul. 13 Dec 2017, 05:23

ye private ltd he ya ltd
L
Laxman. 12 Dec 2017, 15:19

but i can't these IPO's in icicidirect IPO list sir
I
IPO Guru. 12 Dec 2017, 12:11

its similar like normal IPO.
L
Laxman. 12 Dec 2017, 11:58

how to apply sme IPO's i am using icicidirect account
I
IPO Guru. 11 Dec 2017, 12:56

we are not tracking it.
R
Rajesh. 11 Dec 2017, 12:37

rnaval ke baare me bataye
I
IPO Guru. 09 Dec 2017, 11:15

not looks good from financial performance.
G
Gautam Laniya. 08 Dec 2017, 17:38

@ipo guru please suggest is it profitable?
H
himanshu. 07 Dec 2017, 19:27

what about this ipo , suggest guru

As on Date	QIB	RII	Total
Shares Offered / Reserved	5,01,000	4,98,000	9,99,000
Day 1 11-12-17	2,01,000 (0.40)	1,26,000 (0.25)	3,27,000 (0.33)
Day 2 12-12-17	5,31,000 (1.06)	3,99,000 (0.80)	9,30,000 (0.93)
Day 3 13-12-17	21,99,000 (4.38)	28,71,000 (5.77)	50,70,000 (5.08)

Period	Total Income	Total Expenses	Profit After Tax (PAT)
31.08.17 FY 18	3.81	3.32	—
FY 17	13.42	11.82	—
FY 16	12.77	12.54	—
FY 15	6.22	6.10	—
FY 14	3.93	4.71	—
FY 13	1.95	1.91	—

Open Date	Dec 11, 2017
Close Date	Dec 13, 2017
Listing Date	Dec 21, 2017
Face Value	₹ 10 Per Equity Share
Issue Price	₹ 40 Per Equity Share
Retail Min Lot	1 Lot (3,000 Shares - ₹ 1,20,000)
Lead Manager	Corporate Capital Ventures Private Limited

Touchwood Entertainment Limited

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