Tulip IT Services IPO
Tulip IT Services IPO — date, price band, lot size & details 2005
Tulip IT Services listed on 5 Jan 2006 at ₹150, 25% above the ₹120 issue price.
Tulip IT Services provides network integration and wireless IP/VPN data connectivity services to corporate and government clients. Its total income was Rs 343.86 crore in FY2005.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 12 November.
- Open 09 Dec 2005
- Close 15 Dec 2005
- Allotment 27 Dec 2005
- Refund/credit TBA
- Listing 05 Jan 2006
Issue summary
The terms of the offer, as filed.
| IPO Dates | 9 to 15 Dec, 2005 |
|---|---|
| Price Band | ₹100 – ₹120 |
| Face Value | ₹10 |
| Lot Size | 50 Shares |
| Issue Size | ₹108 Cr |
| Sale Type | Fresh capital only |
| Listing On | BSE, NSE |
| Registrar | KFin Technologies Limited |
| Min Investment | ₹ 6,000 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 50 shares at the ₹120 cut-off. Drag to size your application.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 50 | ₹6,000 |
| Retail (max) | 33 | 1,650 | ₹1,98,000 |
| S-HNI (min) | 34 | 1,700 | ₹2,04,000 |
| S-HNI (max) | 166 | 8,300 | ₹9,96,000 |
| B-HNI (min) | 167 | 8,350 | ₹10,02,000 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 4
- 01Total income rose from Rs 276.12 crore in FY2004 to Rs 343.86 crore in FY2005.
- 02Profit after tax doubled from Rs 6.67 crore in FY2004 to Rs 14.02 crore in FY2005.
- 03Profit after tax was Rs 16.73 crore in six months to September 2005.
- 04Net worth rose from Rs 18.74 crore in FY2004 to Rs 53.16 crore in September 2005.
Risks · 5
- 01Its inter-city network was leased from others, so its service depended on their quality; it had switched from 1 provider to 2 others in places.
- 02Network integration margins are thin; profit was Rs 14.02 crore on income of Rs 343.86 crore in FY2005.
- 03It had not placed orders or signed agreements for the investments planned with the Rs 108 crore raised.
- 04The Rs 108 crore issue was large next to its net worth.
- 05Promoter holding fell from 100% before the issue to 68.97% after it.
Three years of numbers
All figures in ₹ crore, as reported in the Tulip IT Services offer document.
| Metric | 30 Sep 2005 | 31 Mar 2005 | 31 Mar 2004 |
|---|---|---|---|
| Assets | 93.52 | 69.92 | 31.61 |
| Total Income | 195.81 | 343.86 | 276.12 |
| Profit After Tax | 16.73 | 14.02 | 6.67 |
| NET Worth | 53.16 | 46.76 | 18.74 |
| Reserves and Surplus | 31.57 | 20.85 | 6.83 |
See how this IPO compares — view listing performance of all mainboard IPOs.
Valuation & key ratios
Ratios are for the latest full financial year reported in the Tulip IT Services RHP. EPS and P/E are post-issue — the table below carries the pre-issue comparison.
Tulip IT Services IPO Valuation
How the issue prices the company before and after the fresh shares are created.
| Valuation Metric | Pre-Issue | Post-Issue |
|---|---|---|
| EPS (₹) | ₹7.01 | ₹11.54 |
| P/E Ratio (x) | 17.12 | 10.40 |
| Market Cap at Offer Price (₹ Cr) | ₹286.39 | ₹173.97 |
Pre-issue figures use the shareholding reported in the RHP; post-issue figures use the shareholding once the fresh issue has created new shares. The two differ because of that dilution and because post-issue earnings per share are often annualised, so the change can run in either direction. Market capitalisation is calculated at the ₹120 offer price. Compare the post-issue P/E against listed peers before deciding — a premium there is growth you are paying for in advance.
Where the money goes
₹134.01 Cr of the issue is earmarked to named objects.
About the company
It designs, builds and manages computer networks for corporate and government clients, and runs a wireless based IP/VPN connectivity business.
It leased its inter-city network from other providers rather than building it, and had switched in some places from RailTel to GAIL and PowerGrid for greater reliability.
The IPO was Rs 108 crore and was entirely a fresh issue at Rs 120, the top of the Rs 100 to Rs 120 band.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
Tulip IT Services IPO Documents
Read the filings this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
YES Bank Ltd
14 issues handledBest listing: CDSL (+67.8%). Weakest: New India Assurance (-6.3%).
Karvy Investor Services Ltd
31 issues handledBest listing: Ramkrishna Forgings (+92.3%). Weakest: Astral Poly Technik (-10.4%).
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of Tulip IT Services?
The current Grey Market Premium is ₹0.
What is the Tulip IT Services IPO price band?
₹100 to ₹120, on a face value of ₹10.
When is the allotment?
The basis of allotment is 27 December 2005, with listing on 5 January 2006.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — KFin Technologies Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
