Business of the Company
Tulip is an IT Infrastructure and connectivity provider. It provides network integration services, rural /state wide networks and inter-city and intra-city IP/VPN (Internet Protocol based Virtual Private Network) wireless connectivity. Tulip designs and develops networks, provide the equipment from other vendors manages the integration and implementation and provides maintenance for these networks. In other words if you have an office with ten computers and want them to be networked you can hire Tulip and they will manage the rest of the process.
Apart from this the company also provides wireless connectivity to its customers. The company was established in 1992 as a reseller of software and hardware products and provider of maintenance contracts for networks. Since then it has been moving up the value chain and is doing well.
Some of the eminent customers of the company are Philips, Hindustan Times, DuPont, HDFC Bank, Punjab National Bank and Bank of Punjab.
The company is into a good growing industry and is the fourth largest company in the country for network integration services.
Finances
The revenues of the company have consistently grown over the last few years and it has clocked in Rs.342 crores for the last fiscal and Rs.274 crores for fiscal 2004. This was just Rs.42 crores in the fiscal 2000. The PAT has also grown well in the last few years with last year Tulip earning Rs.13.91 crores up from Rs.6.61 crores the year before. What has been in the favour of Tulip is that it has been in a growing market and that it has not had to spend a large incremental amount in selling and distribution costs in order to boost its revenues.
The Issue
The IPO will be open from 9th to 15th December and the price that has been decided for the issue is between Rs.100 and Rs.120. Post IPO the public will hold 27.93% of the total capital, the employees will hold 3.1% and the remaining close to 70% stake will be with the promoter and promoter companies. In times such as these when the market is at all time highs these are good signs and shows that the promoters have enough confidence in their own company and do not want to dump the stock on the public when there is an air of euphoria in the market and almost all IPOs are oversubscribed. The EPS last fiscal has been Rs.11.59 and the year before it has been Rs.7.35. However when we consider the new shares that will be floating in the market the EPS (post IPO) will be Rs. 7.99 based on a total of 2.9 crore-equity shares post IPO up from 2 crore shares pre IPO. This translates into a P/E multiple of between 12 and 15 and the issue therefore seems to be decently priced.
The following table shows the upcoming IPO that have been covered under this section and their status. You can click on any of these to read more about them.
