The issue garnered a significant response from investors across all categories and received an overall subscription of close to 13 times. While this may have led the company to fix the issue at the higher end of the price band (Rs 230 –Rs 240), the unsatiated demand could also influence its listing positively.  Above average fundamentals of this small sized EPC player and its asking price make it a value bet as the issue was available at a relative discount to some of its larger peers. Thus value investors could do well to trail with stop profit mechanism as there appears optimism across small and mid-cap stocks.  Long term investors on the other hand can derive comfort from its low gearing, a healthy order book position and its presence in lucrative water management segment.



Background Note: 

Technofab Engineering Limited (TEL) has evolved as an Engineering Procurement and Construction (EPC) contractor and undertakes a wide range of Balance-of-Plant (BoP) and Electro-Mechanical projects on a turnkey basis. TEL caters to requirements across a number of industrial and infrastructure sectors including power, oil and gas, water and waste water infrastructure, etc. Gammon India has acquired a 15.7 per cent stake in the company in 2007.  



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