Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Issue Highlights
Price Band : Rs54 – 63 per share
Minimum Bid Lot Size : 100 Equity Shares
Maximum Bid Lot Size : 3,100 Equity Shares
IPO opens during : May 30 – June 2, 2011
Book Running Lead Manager : Corporate Strategic Allianz Limited
To list on : NSE & BSE
IPO Grading : 1 / 5 (CRISIL)
PE : 17.59x (based on base price)*
: 20.25x (based on cap price)*
Market Cap post-listing : Rs92.97Cr or $20.89mn (based on the cap price)
Market Cap of Free Float : Rs48.87Cr or $10.98mn (based on the cap price)
*Based on FY10 EPS
IPO of 3.69mn equity shares of Rs10each, aggregating to Rs23.25Cr or $5.22mn (at the cap price).
Executive Summary
Ø Timbor Home Ltd. (THL) is engaged in the manufacturing of modular kitchens, furniture, doors & door frames and kitchen baskets and accessories. It operates as a manufacturer-retailer having a Pan-India presence with more than 80 exclusive stores of kitchen, door and furniture retail outlets operating on franchise model.
Ø The furniture industry in India is estimated to be worth €5bn, out of which, the wooden furniture accounts for €750mn. The major part i.e., 85% of furniture sector in India consists of the un-organized sector while the remaining organized sector is made up of manufactures and importers catering to the various segment of the industry.
Ø CSIL Milano has classified India as one of the 14 large furniture markets in the world. This is in view of the fact that India has a middle class population of over 400 million, with a purchasing power on the upswing.
Ø Modular kitchen market in India is still at a nascent stage but has tremendous growth potential. Market has been witnessing a growth rate of 50% YoY.
Ø The promoters of THL are well experienced and are well versed in the building material and timber industry since the last 15 years.
Ø THL manufactures almost 75% of the components that go into making a modular kitchen, the major strengths includes raw material sourcing to finishing.
Our View
Looking at low brand recall, no provision for tax for first 9 months of FY11 and small size of the operations, we advise investors to skip the issue.
