Travels & Rentals Limited, based in Kolkata, India, has been delivering top-notch travel services since 1987. The company caters to a diverse clientele across various industries, including Chemical, Tea, Oil & Minerals, Steel, Engineering, IT, Healthcare, Refractories, Financial, Food Processing, Media & Entertainment, Fashion, Real Estate, Consulates, Chambers, and more. They offer value-added travel solutions and tech support with end-to-end travel assistance.

IPO Overview

The Travels & Rentals Limited IPO is a fixed-price issue amounting to ₹12.24 Crores, comprising:

Fresh Issue: 30.6 Lakh shares

Subscription Details:

Subscription Period: August 29, 2024, to September 02, 2024

Listing: Shares will be listed on BSE SME

Tentative Listing Date: September 05, 2024

Share Price:

Price Per Share: ₹40

Minimum Lot Size: 3,000 shares

Retail Investment Minimum: ₹120,000

HNIs Minimum Investment: 2 lots (6,000 shares), amounting to ₹240,000

Lead Manager and Registrar:

Book-Running Lead Manager: FINSHORE MANAGEMENT SERVICES LIMITED

Registrar: CAMEO CORPORATE SERVICES LIMITED

Market Maker: Black Fox Financial Private Limited

Allotment Status

The IPO allotment is expected to be announced on September 3, 2024. To check the allotment status:

Go to the IPO allotment status page.

Select Travels & Rentals Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

Objectives of the IPO

The proceeds from the Fresh Issue will be used for:

Working Capital Requirements: ₹803.30 Lakhs

General Corporate Purposes: ₹250.00 Lakhs

Financial Performance and Valuation

Travels & Rentals Limited has shown solid financial performance:

Revenue: Increased from ₹290.59 Lakhs in FY22 to ₹579.06 Lakhs in FY23, and currently at ₹803.54 Lakhs in FY24.

EBITDA: Grew from ₹157.49 Lakhs in FY22 to ₹238.00 Lakhs in FY23, and currently at ₹434.79 Lakhs in FY24.

PAT: Rose from ₹69.01 Lakhs in FY22 to ₹150.64 Lakhs in FY23, and currently stands at ₹296.55 Lakhs in FY24.

The IPO is being offered at a pre-issue EPS of ₹3.64 and a post-issue EPS of ₹2.64. The pre-issue P/E ratio is 10.99x, while the post-issue P/E ratio is 15.15x compared to the industry P/E ratio of 32.05x. The company's ROCE for FY24 is 27.54% and ROE is 26.72%. These metrics suggest that the IPO is fairly priced.

Investment Recommendation

With a Grey Market Premium (GMP) indicating potential listing gains of 40% - 50%, and considering the company's solid financial performance, we recommend investors to apply for the Travels & Rentals Limited IPO for potential listing gains or long-term investment purposes.

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