Tuesday, February 11, 2020

IPO Scam : Sebi imposes fine on Tarini International

 Sebi has levied a total fine of Rs 12.05 crore on Tarini International Ltd and its officials for utilizing the initial public offering  proceeds for purposes other than stated in the prospectus.

The company had also concealed crucial information, such as loan taken from Hind Ispat prior to the IPO, from investors.

 The company came IPO in 2014 and this is what we wrote about the issue : 

Tarini International IPO is made at 70 PE. The average EPS earned in the last 3 years is Rs 0.59. The offer is made at Rs 41, the PE works out to 70. The average return on net worth in the last 3 years is 1.14%. More over, funds sought to be mobilized will go towards working capital needs, brand building, renovation and issue expenses (as estimated by the company) and not for implementing any project. 

AVOID the IPO. 

The shares are now not traded on the exchanges.
                       

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