XPRO India allotted warrants worth 25 cr to promoter group and 125 cr to Malabar group at issue price of Rs 762 each. 18 months window ends on July 2023, CMP is Rs 729. If stock price doesn't move substantially in next 6 month, promoter may have to forego the upfront payment 🤷♂️
What's the trigger btw? They are planning to double the capacity and business is highly capital intensive. Last major CapEx came in 2013-14, they've managed to double the revenues since then.
Change in Net fixed asset + CWIP during these years is ~170 cr excluding depreciation. So they're staring at another ~200 cr kind of investment to double the capacity. How strong the company is financially?
In last 10 year-
CFO ~ 220 cr
Capex ~200 cr
With 20 cr FCF generated, they've paid 170 cr in interest liability. With the kind of capital intensive, low asset turn business it is, I'd have preferred stronger balance sheet & cash flow statement.
CFO ~ 220 cr
Capex ~200 cr
With 20 cr FCF generated, they've paid 170 cr in interest liability. With the kind of capital intensive, low asset turn business it is, I'd have preferred stronger balance sheet & cash flow statement.
Besides, I have not checked why, but they're paying 60-70 lakh tax on 50 cr income
While we discussed company is short of funds, promoters took home 2.5 cr salary on 2 cr PAT (been consistent through the years).
Since promoters understand the business inside out, issuing warrants is usually considered a positive sign for near term price appreciation. But if you see they take away a considerable chunk of shareholding that could've been shared with minority shareholders.
Loading suggestions...