Indo Thai Securities closes 69% lower on Day 1

653 Investors following Indo Thai Secu. Share this News with them.

0

Like this story, share it with millions of investors on M3

Indo Thai Securities closes 69% lower on Day 1

Indo Thai Securities, a stock broking firm, disappointed investors on listing day itself. The stock fell 69%, to close at Rs 23 on the BSE after hitting an intra-day high of Rs 99.10 and low of Rs 18.10.

Post your opinion here

 

0

Tweet

Share on Tumblr

Indo Thai Securities , a stock broking firm, disappointed investors on listing day itself. The stock fell 69%, to close at Rs 23 on the BSE after hitting an intra-day high of Rs 99.10 and low of Rs 18.10.

Total traded volume on both exchanges was more than 8.68 crore equity shares - nearly 22 times higher as compared to IPO size of 40 lakh shares.

Company is a small broking house dealing in capital & derivatives market. It is a local player with limited operations and presence, having 12 branches in Madhya Pradesh and 2 in Mumbai, besides 60 business associates mainly in Madhya Pradesh. 

Promoter's stake reduced to 50.94% from 84.91% post issue.

There are litigations against the promoters & company of worth Rs 45.45 crore & Rs 4.3 crore against the group companies.

The company diluted 40% equity through the IPO and raised a meagre amount of Rs 29.6 crore.

Issue proceeds will be used for expansion and upgradation of existing branches and setting up branch network (with an outlay of Rs 2 crore), purchasing of office space for Mumbai regional office (with cost of Rs 4 crore), purchasing and setting up of office space for corporate office (with Rs 4 crore), brand building and advertising (Rs 3 crore) and augmenting long term working capital requirement (Rs 10 crore).