ATTENTION !! Dear Readers, BHAVIKK SHAH's BLOG is totally free website. Contents here should be viewed for Knowledge purpose only. Author does not charge for any kinds of the services. Kindly don't entertain to any of the paid services in a name of BHAVIKK SHAH's BLOG !!

Wednesday, April 21, 2010

Talwalkars Better Value Pvt Ltd : TBVF

Price Band - Rs.123-128, Face Value- Rs.10
Issue opens on - 21th April 2010, Wednesday
Issue closes on - 23th April 2010, Friday
QIB Book - 30,25,000 shares (50% of Net issue)
HNI Book - 9,07,500shares (15% of Net issue)
Retail Book - 21,17,500 shares (35% of Net issue)
Total No. of Shares offered - 60,50,000 shares or 25.09%
Equity Shares outstanding after the Issue - 2,41,15,672 Eq Sh
Equity Shares outstanding prior Issue - 1,80,65,672 Eq Sh
Total Size of the Issue- Rs. 74.42 Crs. - Rs. 77.44 Crs.

Talwalkars Better Value Pvt Ltd (TBVF) - Commonly famous as Talwalkars, is India’s largest chain of health centers. The company established in 1932, it operates 58 health clubs in 28 cities, serves 55,000 clients in India.Hence demands premium. Talwalkars were the Official Fitness Partners for Standard Chartered Mumbai Marathon in 2008 and 2009 and Femina Miss India Contest in 2009.

The proceeds will be used for setting up of 27 additional health clubs about Rs.50.22 cr and repaying certain unsecured loans of Rs. 20.59 cr. The issue will constitute 25.09% of the fully diluted post issue paid-up capital of the company. Promoters’ stake will be reduced to 59.39% and non-promoters to 15.42% post issue.

At upper band of Rs.128 the stock is available at 53.9x the P/E & 2.6x the P/Bv based on FY10 post issue EPS of Rs.2.4 & BVPS of Rs 48.6. For the year ended on 31st March 2009 company reported PAT of Rs.5.687cr on total income of Rs.59.424 crs, For the period ended in April-September 2009 ,Company posted PAT of Rs.31.90 cr on the total income of Rs. 358.82 cr.

CARE has assigned an IPO Grade 3 to Talwalkars Better Value Fitness Ltd IPO. This means as per CARE company has 'Average Fundamentals'. CARE assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals.

The company has set a price band of Rs 123 to Rs 128 per equity share of Rs 10 face value. At the lower band of Rs 123 per share, the P/E would be 51.6 times the annualized EPS of Rs 2.4 for the nine months ended December 2009 (on post-IPO equity) and 82 times the EPS of Rs 1.5 (on post-IPO equity) for FY09. At the upper price band of Rs 128 per share, the P/E would be 54 times the annualized EPS for the nine months ended December 2009 and 85 times the EPS for FY09. There is no comparable listed company. The very high valuation already factors in very high growth rates in future.


  1. SirfMoney is the place where one can find up-to-date information about finance, stock Market and can get expert guidance that will help you work through the myraige of invest is a leading financial information source. It provides news, views, and analysis on equity / stock markets, sensex, nifty, commodities, personal finance, mutual funds, insurance and loans.

    SirfMoney is aimed at giving viewers an easy and interactive platform online to understand the stock market. The objective of this first-ever interactive stock market game is to educate and help them in understanding how the stock market functions. Participants need to register online on to be part of the SirfMoney Discussions.

    For More details
    You can visit

  2. Awesome ωebsite you hаve here but I was cuurious if you knew of any community forums that cover the same topics discussed in this article?
    I'd really love to be a part of community where I can get responses from other experienced individuals that share
    thе same interest. Іf you have any suggestiοns, please let
    me know. Μany thanks!

    Here is my blog pοst :: bombay stock Exchange today Rate


Related Posts Plugin for WordPress, Blogger...


Why you should have a Stop Loss of 8 % ? Click to know more. Author is also on Facebook and Click here for SHORT STORIES