tag:blogger.com,1999:blog-19909570859007352832024-03-14T12:29:04.074+05:30Intraday Calls - IPO Analysis - Team IntradayUnknownnoreply@blogger.comBlogger174125tag:blogger.com,1999:blog-1990957085900735283.post-42471053324780651822009-05-12T12:07:00.000+05:302009-05-12T13:23:39.252+05:30Kabirdass Motor to invest Rs 100 cr, files for IPO<DIV><STRONG><FONT size=2 face=Verdana> <DIV align=left> <P><FONT class=f12>Mumbai: Kabirdass Motor Co has approached the Securities and Exchange Board of India (SEBI) with a draft prospectus for an initial public offer to partly finance its plans to invest more than Rs 100 crore in its business. <BR><BR>The company is planning for different options to raise Rs 81.28 crore from the sale of its shares, including Rs 61.28 crore from the IPO. Apart from that, it has tied up for a bank term loan worth Rs 20 crore, as per its draft IPO prospectus filed with the SEBI. <BR><BR>The total investment plan of Rs 101.28 crore includes those for land, building, plant and machinery, research and development, brand promotion and other expenses. <BR><BR>Chennai-based Kabirdass Motor Company Limited was incorporated in November 2006 as a private limited company. It is engaged in the manufacturing and distribution of electric bikes and scooters under the brand name 'Xite'.</FONT> </P></DIV> <DIV class=sectionbody1> <TABLE align=right> <TBODY> <TR> <TD><FONT class=fn11><FONT size=1><B>Source: </B>Asian CERC</FONT></FONT></TD></TR></TBODY></TABLE></DIV></FONT></STRONG></DIV>Unknownnoreply@blogger.com9tag:blogger.com,1999:blog-1990957085900735283.post-49249424638442593022009-05-12T12:00:00.003+05:302009-05-12T12:00:54.013+05:30Godrej Properties plans IPO<DIV><STRONG><FONT size=2 face=Verdana> <DIV align=left> <P><FONT class=f12>Godrej Properties, the realty arm of Godrej, plans to come out with an IPO (initial public offering) this fiscal. This IPO is coming at a time when the realty index has given up 71% in the last year. The recent salary hike of government employees, as well as fall in property prices and cut in lending rates may give a support to the falling property prices. <BR><BR>Recently, Godrej Industries has announced buy back of shares of 5.70 lakh equity shares at a price not exceeding Rs275, which translates into a 9.9 per cent stake. <BR><BR></FONT></P></DIV> <DIV class=sectionbody1> <TABLE align=right> <TBODY> <TR> <TD><FONT class=fn11><FONT size=1><B>Source: </B>Asian CERC</FONT></FONT></TD></TR></TBODY></TABLE></DIV></FONT></STRONG></DIV>Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-1990957085900735283.post-50817117710541836592009-05-12T12:00:00.001+05:302009-05-12T12:00:20.036+05:30Middle East IPOs raise $83.6 m in Q1 of 2009<DIV><STRONG><FONT size=2 face=Verdana> <DIV align=left> <P><FONT class=f12>Dubai: Middle-East companies raised $83.6 million through two IPOs in the first quarter of this year. However, this is 97.9 per cent lower as against fund raised in 2008, an Ernst & Young report has said. <BR><BR>$3.98 billion was raised through 13 IPOs in the first quarter of 2008, Ernst & Young's first quarter Global IPO update 2009 has said. <BR><BR>Saudi Arabia's Etihad Atheeb Telecommunications was the largest IPO in the Middle East during this period, which raised $80 million and listed on the Riyadh Stock Exchange. The company was ranked third in terms of capital raised among a total of 50 IPOs worldwide, all of which raised just $1.4 billion, it said. <BR><BR>A Syrian company, Al Adham Foreign Exchange Co, was the only other regional IPO in Q1 2009. It raised $3.62 million and listed on the Damascus Stock Exchange. </FONT></P></DIV> <DIV class=sectionbody1> <TABLE align=right> <TBODY> <TR> <TD><FONT class=fn11><FONT size=1><B>Source: </B>Asian CERC</FONT> </FONT></TD></TR></TBODY></TABLE></DIV></FONT></STRONG></DIV>Unknownnoreply@blogger.com3tag:blogger.com,1999:blog-1990957085900735283.post-64281408740828956392009-05-12T11:59:00.003+05:302009-05-12T11:59:57.569+05:30Rights issues were priority of FY09<DIV><STRONG><FONT size=2 face=Verdana> <DIV align=left> <P><FONT class=f12>Most of the Indian companies were using existing investor's route for raising capital last year mainly due to economic turmoil. Awful market condition led loss of investor appetite in new share issues and also froze out overseas funding avenues. <BR><BR>Rights issues, the route through which companies raise funds by issuing fresh shares to existing investors emerged as the single-biggest fundraising route during the year as compared to initial public offers (IPOs) and overseas issues that dominated fundraising in the previous year.<BR><BR>According to Prime Database, companies raised Rs 12,622 crore through 23 rights issues in 2008-09 compared with Rs 2,023 crore through IPOs during the period. The amount raised through rights issues last year, however, more than halved compared to Rs 32,518 crore by 30 companies last year. However, the extent of decline was much less than IPOs, which tumbled 95 per cent during the same period.<BR><BR>Rights issues are the current flavour. Companies are looking to tap existing shareholders as valuations are too attractive to dilute to outsiders, says Ravi Sardana, senior vice-president of ICICI Securities.</FONT> </P></DIV> <DIV class=sectionbody1> <TABLE align=right> <TBODY> <TR> <TD><FONT class=fn11><FONT size=1><B>Source: </B>Asian CERC</FONT> </FONT></TD></TR></TBODY></TABLE></DIV></FONT></STRONG></DIV>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-1990957085900735283.post-27513163971418145632009-05-12T11:59:00.001+05:302009-05-12T11:59:22.158+05:30SEBI wants legal opinion on NSDL order<DIV><STRONG><FONT size=2 face=Verdana> <DIV align=left> <P><FONT class=f12>The Securities and Exchange Board of India (Sebi) on Monday said it will look for an external legal opinion on whether the board of Sebi has the right to scrutinize the orders of special committee passed after the quasi-judicial proceedings against NSDL. The board has decided to keep back the committee's orders till opinion. The committee was set up after CB Bhave, former NSDL chairman, took over at Sebi. <BR><BR>The case deals with Sebi's investigations into 21 IPOs between 2003 and 2005. Sebi's investigate revealed that the shares, which was reserved for retail investors were illegally acquired by various entities through thousands of untrue applications. The regulator want advice of legal counsel on whether the committee has acted within the framework and terms of reference established by the board resolution.</FONT> </P></DIV> <DIV class=sectionbody1> <TABLE align=right> <TBODY> <TR> <TD><FONT class=fn11><FONT size=1><B>Source: </B>Asian CERC</FONT> </FONT></TD></TR></TBODY></TABLE></DIV></FONT></STRONG></DIV>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-1990957085900735283.post-44341466347179959142009-05-12T11:58:00.001+05:302009-05-12T11:58:44.508+05:30UBI IPO may come out by February 2010<DIV><STRONG><FONT size=2 face=Verdana> <DIV align=left> <P><FONT class=f12>United Bank of India (UBI) is planning for its proposed maiden public offer on a February 2010. The bank received Cabinet clearance for the long-awaited capital restructuring. UBI is one of the two public sector banks that are not listed. The other one is 'The Punjab & Sind Bank'. <BR><BR>UBI chairman and managing director Satish C Gupta said the bank intends to file the red herring prospectus with Securities & Exchange Board of India (SEBI) after September 2009 once it comes up with its audited half yearly results. <BR><BR>We will go public in the third or the fourth quarter. It's now on top of our agenda, the CMD said. Although the bank is still to decide the size of the IPO, Mr Gupta indicated that it would be not less than Rs 50 crore. </FONT></P></DIV> <DIV class=sectionbody1> <TABLE align=right> <TBODY> <TR> <TD><FONT class=fn11><FONT size=1><B>Source: </B>Asian CERC</FONT></FONT></TD></TR></TBODY></TABLE></DIV></FONT></STRONG></DIV>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-1990957085900735283.post-2996684094317910292009-05-12T11:53:00.001+05:302009-05-12T11:53:49.674+05:30United Bank plans to float IPO in 6 months<DIV><STRONG><FONT size=2 face=Verdana> <DIV align=left> <P><FONT class=f12>Kolkata: United Bank of India is looking at the option of floating an initial public offer in six to nine months with an equity issue of Rs50-60 crore. The bank at a premium of Rs 100 a share would be able to mobilise around Rs 500-600 crore worth Tier I capital. The bank's paid-up equity capital will be reduced to Rs 266 crore. <BR><BR>The cabinet recently has approved the capital restructuring plan of the bank, which would include reduction in paid-up equity by over 80 per cent to improve its financial parameters. Moreover, the restructuring would enhance the bank's book value of shares to Rs 84-85 (up from Rs 14 at present) and it would further improve to Rs 100 after the IPO. The paid-up capital of the bank would reduce to Rs 266 crore (Rs 1,532 crore). The excess capital of Rs 1,266 crore would be infused into the bank's capital reserves.<BR></FONT></P></DIV> <DIV class=sectionbody1> <TABLE align=right> <TBODY> <TR> <TD><FONT class=fn11><FONT size=1><B>Source: </B>Asian CERC</FONT></FONT></TD></TR></TBODY></TABLE></DIV></FONT></STRONG></DIV>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-1990957085900735283.post-87263695965344368102009-05-12T11:52:00.002+05:302009-05-12T11:53:01.831+05:30MCX chief denies IPO revival plans<DIV><STRONG><FONT size=2 face=Verdana> <DIV align=left> <P><FONT class=f12>Multi Commodity Exchange of India (MCX), has declined any plans to renew its deferred initial public offering (IPO), a top company official said on late Monday. <BR><BR>These are rumours... said Joseph Massey, managing director of the bourse, said in response to some media reports quoting sources about a revival in MCX IPO plans. <BR><BR>MCX had in August 2008, shelved its IPO, taking into consideration the market scenario and the advice of the merchant bankers. <BR><BR>MCX, a unit of Financial Technologies India Ltd, had filed an offer document with the market regulator in February 2008 and media reports had estimated the size of the issue at around 5-6 billion rupees. </FONT></P></DIV> <DIV class=sectionbody1> <TABLE align=right> <TBODY> <TR> <TD><FONT class=fn11><FONT size=1><B>Source: </B>Asian CERC</FONT> </FONT></TD></TR></TBODY></TABLE></DIV></FONT></STRONG></DIV>Unknownnoreply@blogger.com3tag:blogger.com,1999:blog-1990957085900735283.post-21283926463858761812009-05-12T11:52:00.001+05:302009-05-12T11:52:25.895+05:30MCX to revive IPO plans; may soon file fresh prospectus<STRONG><FONT size=2 face=Verdana> <DIV align=left> <P><FONT class=f12>Multi-Commodity Exchange (MCX), is expected to be reviving the initial public offer (IPO) and may soon approach the SEBI. The MCX had put on hold its IPO plan within a year back. <BR><BR>The promoter of MCX, Jignesh Shah-led Financial Technologies (FTIL), is supposed to have sounded out some investment bankers and brokers in recent times about the possibility of reviving plans for the IPO, according to the market sources.<BR><BR>As per company policy, we do not respond to day to day market news and rumours. We also do not do selective disclosures, a company spokesperson said in an emailed statement.<BR><BR>At the time of achieving the milestone we report it to stock exchanges so that the information regarding development is uniformly distributed to all stakeholders, he added.<BR><BR>There are also speculations that the IPO revival plans could be due to pressure from some investors such as Citigroup and Fidelity, who wanted to exit after MCX's listing.</FONT> </P></DIV> <DIV class=sectionbody1> <TABLE align=right> <TBODY> <TR> <TD> <DIV align=center><FONT class=fn11><FONT size=2><B>Source: </B>Asian CERC</FONT></FONT></DIV></TD></TR></TBODY></TABLE></DIV></FONT></STRONG>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1990957085900735283.post-4027684554755522232009-05-12T11:51:00.001+05:302009-05-12T11:51:37.924+05:30No sign of relief for IPO market<DIV>There is no sign of relief for the IPO market. The come back of Sensex to the 10,000-level is doubtful to prompt a revitalization in the primary market in the future. The doubt is there as foreign institutional investors (FII) continue to introverted and also there are concerns for the general elections. <BR><BR>According to Prithvi Haldea of Prime Database, it's not the Sensex level by itself, but the stability and positive outlook for the secondary markets that's important for the primary market. He points out to the spate of successful IPOs in 2005-06, when the Sensex was between 8,000-16,000 points. <BR><BR>India's primary markets have been on a dried up since 2007. So far in 2009, only one initial public offer (IPO) has seen the light of the day, raising Rs 23 crore. There was a enlistment of Rs 16,927 crore in 2008, almost 63 per cent down from the Rs 45,137 crore raised in 2007 through public equity issues, comprising both IPOs and FPOs, according to Prime Database.</DIV> <DIV><STRONG><FONT size=2 face=Verdana></FONT></STRONG> </DIV> <DIV><STRONG>Source: </STRONG>Asian CERC</DIV>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-1990957085900735283.post-12921812758881941712009-05-12T11:49:00.001+05:302009-05-12T11:49:58.436+05:30Sistema-Shyam to list in 18 months<DIV>Shyam Sistema Teleservices, which is the joint venture between Kolkata based Shyam group and Russian diversified company Sistema, announced that are planning to get themselves listed in India in a year and a half. On Thursday the company committed to invest US $ 5 billion, primarily in telecom infrastructure development in India, over the next 5 years. The company made announcement while launching its CDMA mobile prepaid services only in the unified circle of Tamil Nadu, Chennai and Pondicherry under Sistema's MTS brand,<BR><BR>At present, the company's network in Tamil Nadu is presently supported by its own telecom electronic equipment. However, its towers are either self owned or shared with other mobile operators on a 10:90 ratio. Moving forward, we plan to change this ratio to 30:70 in the first year, as it's effective network coverage and quality of service that we are leveraging as our strength, said Sistema-Shyam president and CEO Vsevolod Rozanov.</DIV> <DIV> </DIV> <DIV><STRONG>Source: </STRONG>Asian CERC</DIV>Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-1990957085900735283.post-5352679094119621192008-09-23T22:34:00.001+05:302008-09-23T22:34:46.675+05:30Bharat Oman Refineries to go ahead with IPO plans<DIV>Bharat Oman Refineries Ltd, a joint venture between Bharat Petroleum Corporation and Oman Oil Company Ltd, is all set to go ahead with its proposed IPO plan, a top company official said here. <BR><BR>BORL is implementing a 6-million tonnes per annum (mtpa) greenfield refinery at Bina, Madhya Pradesh. <BR><BR>"The company is preparing for its IPO, but it's not immediate. We are yet to get our final clearance from the Securities and Exchange Board of India (SEBI). We are meeting some queries from SEBI," Bharat Petroleum Chairman and Managing Director Ashok Sinha told reporters here. <BR><BR>"We are not in a hurry to float our IPO. We will take it as and when we feel comfortable," Sinha said. <BR><BR>BPCL's Bina refinery will be commissioned by December 2009 and will help the company meet its requirements in central and northern India, he said. <BR><BR>BORL has spent Rs 9,275 crore for the Bina project and has completed 75 per cent of the construction. The estimated capital outlay for the project is Rs 10,378 crore. <BR><BR>The project is proposed to be financed in a debt/equity mix of 1.6:1. <BR><BR>Both BPCL and Oman Oil Company Limited (OOCL) have contributed Rs 75.5-crore each towards the equity share capital of the company. <BR><BR>With OOCL having decided to limit its equity contribution to the present level of Rs 75.50 crore, BPCL has, with the approval of the government, decided to enhance its equity contribution in BORL up to 50 per cent, amounting to Rs 1,996-crore. </DIV> <DIV> </DIV> <DIV><FONT face=Arial size=2>Via Economic Times</FONT></DIV>Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-1990957085900735283.post-5192110203713434682008-09-22T03:18:00.001+05:302008-09-22T03:18:09.795+05:30GSPC IPO Coming soon<DIV><SPAN class=Apple-style-span style="WORD-SPACING: 0px; FONT: 12px/18px Verdana; TEXT-TRANSFORM: none; COLOR: rgb(0,0,0); TEXT-INDENT: 0px; WHITE-SPACE: normal; LETTER-SPACING: normal; BORDER-COLLAPSE: separate; TEXT-ALIGN: left; orphans: 2; widows: 2; -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0"> <TABLE align='"center"'> <TBODY> <TR> <TD align='"center"'></TD></TR></TBODY></TABLE>Gujarat State Petroleum Corp. (GSPC) plans to raise about US$1bn (about Rs45bn) from an initial public offering (IPO) of its equity shares, a senior company official said. "Our plan is to have the IPO by November but it may extend to December-January," the official, who did not want to be named, said on the sidelines of a conference in New Delhi. GSPC is planning to sell about 10-20% equity through the IPO. The company has mandated DSP Merrill Lynch, JM Financial, Kotak, SBI Caps and Citibank to manage the IPO, the company official said.</SPAN></DIV>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1990957085900735283.post-45919485627482506022008-09-15T09:52:00.001+05:302008-09-15T09:52:38.928+05:30Grey Market - Chemcel Biotech, 20 Microns<DIV>20 MICRONS Ltd. 50 to 55 8 to 10<BR><BR>Chemcel Biotech Ltd. 16 4 to 5 </DIV>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1990957085900735283.post-72723716429960999382008-09-08T01:59:00.000+05:302008-09-08T02:00:02.414+05:30Grey Market - 20 Microns, Chemcel Biotech<DIV> <TABLE align='"center"'> <TBODY> <TR> <TD align='"center"'></TD></TR></TBODY></TABLE>20 MICRONS Ltd. 50 to 55 7 to 9<BR><BR>Chemcel Biotech Ltd. 16 4 to 5 </DIV>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-1990957085900735283.post-39301662378344851382008-09-05T09:55:00.001+05:302008-09-05T09:55:10.555+05:3020 Microns IPO Analysis<DIV> <P>Promoted by Chandresh S Parikh and seven others, 20 Microns was incorporated in Gujarat in 1987 to manufacture white non-metallic minerals in India. The company is a leading manufacturer of micronized mineral products including micronised ground calcium carbonate, china and calcined clay, talc, dolomite, silica, mica and whiting (calcite and calcium carbonate), which finds application in the paints, plastics, rubber, ceramic, paper and other industries as functional fillers. </P> <P>The mining resources and plants are strategically located in Rajasthan, Gujarat, and Tamil Nadu. With eight manufacturing facilities located in different strategic regions that are closer to its key markets, 20 Microns also has four mines of ground minerals, ensuring unhindered supply of raw materials at lower cost. The four mines comprise 72 hectors of mining area and permission has been sought for further 1,000 hectors of additional mining area.</P> <P>With a turnover of 1,70,000 tonnes per annum, 20 Micron is a leader in white minerals including ultra-fine minerals ranging from 20 microns to 2 microns of particle size and is planning to introduce sub-micronized grades and nano-additives. Sub-microns and nano-additives are processed non-metallic minerals used as import substitute in various chemicals and polymers in paints, PVC pipes, paper, cement and ceramics. The company's clients include Finolex Cables, Berger Paints, Asian Paints, Goodlass Nerolac Paints, ICI India and Pidilite Industries.</P> <P>Higher value added technology intensive, import substitute product like sub microns will be introduced in existing capacities at Vadadla (Gujarat), Bhuj (Gujarat) Tirunelveli (Tamil Nadu) and Udaipur (Rajasthan). Finer and pure material with size up to 0.7 microns will be produced at the expanded facilities. </P><B></B> <P><B>Strengths</B> </P> <UL> <LI>Has mining rights in four different locations leased from the Union government for 20 years, thus enabling sourcing of raw materials at lower cost.</LI> <LI>Has a diversified product mix catering to various industries, thus providing a hedge against any downturn in any industry or product.</LI> <LI>R&D capabilities have been used to manufacture innovative value-added products such as sub-microns and nano additives.</LI></UL><B></B> <P><B>Weakness</B> </P> <UL> <LI>Various pending legal proceedings related to Central excise, sales tax and labour could have a monetary impact of more than Rs 10.50 crore--a significant sum compared with the size of operations. </LI> <LI>Faces extreme competition from the unorganised sector/tiny sector, which is able to supply materials at lower cost due to exemption from excise duty.</LI></UL><B></B> <P><B>Valuation</B></P> <P>The issue comprises fresh issue of 16,75,000 equity shares and an offer for sale of 26,75,632 equity shares by the selling shareholders (Gujarat Venture Capital Fund 1995).</P> <P>20 Microns has set a price band of Rs 50-Rs 55 per equity share of Rs 10 each, translating into a PE of 15.2x at the lower price band and 16.7x at the higher price band, based on the earning per share of Rs 3.3 in the year ended March 2008 (FY 2008) on post-IPO equity. Though there are no strictly comparable companies, one can refer to the valuations of English India Clay and Ashapura Minechem for assessing the kind of P/E 20 Microns can command. Currently, English India Clay is trading at P/E of 16 and Ashapura Minechem is trading at P/E of 7.</P></DIV>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1990957085900735283.post-58804083661490842562008-08-11T09:37:00.000+05:302008-08-11T09:29:57.773+05:30Resurgere Mines and Minerals IPO Analysis<DIV>Promoted by Subhash A Sharma and his wife, Resurgere Mines and Minerals (RMMIL) is in the business of extraction, processing and sale of mineral products and exploration and development of mining assets. The product range includes various forms of iron ore such as Lump ore, Size ore, Calibrated Lump ore (CLO) and iron ore fines etc. and bauxite. The company sells all these products domestically except iron ore fines, which the company exports to China. <P>The company currently operates in Nuagaon, Kendujhargarh district (Reserve - 12.37 million tonnes) and Maharajpur, Mayurbhanj district (Reserve - 42.08 million tonnes) in Orissa and is expected to commence operations at Tatiba mine in Singhbhum district of Jharkhand (Reserve - 20.37 million tonnes) in the near future. The company has entered in to long-term contracts for these mines, Nuagoan, Tatiba and Maharajpur, with the leaseholders for raising and purchasing of iron ore. All the three mines carry high quality iron ore of about 62% - 64% Fe content.</P> <P>The present operations at the Nuagoan Mines and the Jharkhand Mines are being carried out under deemed renewal provisions since the respective Mining Leases have expired, prior to the expiry whereof the respective applications for renewals of the Mining Leases have been made to the State Government and are pending consideration.</P> <P>The company has also made an application to the Collector of Sindhudurg district for the grant of an iron ore mining lease over an area of 108.77 hectares in village Banda, District Sindhudurg in Maharashtra, wherein company's application is under process. The company has also applied for two prospecting leases of iron ore in Banda region to the Collector of Sindhudurg district. </P> <P>Furthermore the company is also engaged in merchant export of iron ore fines to China.</P> <P>Through its wholly owned subsidiary M/s. Warana Minerals Private (WMPL), the company holds 60% interest in a registered partnership firm, Shri Warana Minerals which is engaged in the business of mining bauxite ore under the 30 year mining lease with respect to a bauxite mine situated in Yelwan Jugai, Maharashtra.</P> <P>The mining assets of the Company, except Banda mine, have cumulative estimated reserve of 74.82 million tonnes of iron ore and 4.92 milllion tonnes of bauxite as certified by Central Mining Research Institute.</P> <P>RMMIL proposes to enter the capital markets with a public issue of 4450000 Equity shares of Rs 10 each through 100% book building process. The price band has been fixed at Rs 263 to Rs 272 per Equity share of Rs 10 each.</P> <P>The Company proposes to utilize the net proceeds of the Issue to part finance its plan for purchase of Plant and Machinery valued at Rs 128.56 crore for setting up of its own extraction and crushing facilities at the mines and purchase of 6 railway rakes worth Rs 116.36 crore to set up own logistics infrastructure facilities, besides meeting margin money requirement for working capital (Rs 18.25 crore), Provision for contingencies and Pre Operative expenses (Rs 8.24 crore), General corporate purpose (Rs 10 crore) and Issue expenses. </P> <P>Besides the proceeds of the issue, the Company proposes to finance the cost through term loans of Rs 86 crore to be raised from banks, Rs 43 crore through Private Equity funding from Merrill Lynch International and Rs 13.75 crore through Pre-IPO allotment.</P> <P>Merrill Lynch International holds 3000000 Equity shares, India Business Excellence Fund-I holds 910000 Equity shares, IL&FS Trust Co. (Trustees of Business Excellence Trust-India Business Excellence Fund) hold 402500 Equity shares, Mr Motilal Oswal hold 250000 Equity shares and Mr. Raamdeo Agarwal holds 200000 Equity Shares in the Company.</P> <P>On Dec.'07, Merrill Lynch International has been allotted 3000000 shares of the Company for a total consideration of Rs 63 crore (Rs 210 per share). On Feb'08, IL&FS Trust Co. (Trustees of Business Excellence Trust-India Business Excellence Fund) and India Business Excellence Fund I subscribed to 550000 Equity Shares at Rs 250 per Equity Share for a total consideration of Rs 13.75 crore. Mr Motilal Oswal hold 250000 Equity shares and Mr. Ramdeo Agarwal holds 200000 Equity Shares in the Company at a price of Rs 210 per share</P><B></B> <P><B>Strengths</B> </P> <UL> <LI>The iron ore industry is currently in the midst of favorable conditions, on the back of robust demand scenario. However prices are already high and may be near the peak of the cycle.</LI></UL><B></B> <P><B>Weaknesses</B> </P> <UL> <LI>The company is operating on mines wherein the lease has either already expired or is about to expire in a short period of time. The mining leases of Nuagaon and Tatibha have already expired, while that of Maharajpur is due for expiry in April 2009. Even though the applications for renewal have already been made, the possibility of non-renewal in favour of existing leaseholders cannot be ruled out.</LI></UL> <UL> <LI>The company's selling strategy has been to sell only in the spot market and it sells most of its output to traders, hence, it currently does not enjoy any long-term relationship with any of its buyers. This also exposes the company to volatility in spot prices.</LI></UL><B></B> <P><B>Valuation</B></P> <P>At a price band of Rs 263 272, RMMIL's P/E works out to 11.3 11.7 times FY 2008 earning on post-IPO equity. Sesa Goa, which is a leading company within the sector, trades at P/E of 8.4 times FY 2008 earnings.</P></DIV>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1990957085900735283.post-9549035550809126062008-08-11T00:03:00.000+05:302008-08-10T23:00:42.604+05:30Austral Coke & Projects - IPO<DIV> <TABLE align='"center"'> <TBODY> <TR> <TD align='"center"'></TD></TR></TBODY></TABLE>Investors can avoid investment in the initial public offering (IPO) of Austral Coke and Projects Ltd., considering the high execution risks and cyclical nature of the business, though prospects for volume growth are bright.<BR><BR>At Rs 196 (upper end of the price band), the offer is priced at 13-15 times the expected 2007-08 earnings per share, computed on the post-offer equity base. This is almost on a par with the valuation enjoyed by Gujarat NRE Coke, which has a larger scale of operations now.<BR><BR>The Kolkata-based Austral Coke is mainly into the manufacture of low ash metallurgical coke (LAMC) and refractories, apart from equipment rental and textile trading.<BR><BR>The company plans to use the IPO proceeds to finance its expansion in coke manufacturing facilities, acquisition of coal mining licences in India and abroad, prepaying debt and setting up an 8 MW captive power plant.<BR><BR>The expansion project is proposed to be financed almost entirely through this offer. Only about 2 per cent of the total outstanding debt is sought to be pre-paid through the proceeds of the IPO.<BR>Financials<BR><BR>Austral Coke registered revenues of Rs 274 crore, with net profits of Rs 35.17 crore in the 11-months ended February 2008 (full year numbers are not disclosed).<BR><BR>However, only 45 per cent of these revenues (Rs 124 crore) came from manufacturing operations, the rest came from textile trading, equipment rentals and other businesses.<BR><BR>The company's track record in coke manufacture is relatively short and in the three years since 2004-05, the company managed revenue CAGR of 88 per cent in the manufacturing business, while net profits (before extra ordinary items) expanded from Rs 2 crore to about Rs 35.2 crore.<BR><BR>Demand potential for LAMC appears quite good in the light of the ongoing capacity expansion in the steel and cement sectors. The domestic demand for the product has been met significantly by imports, with Gujarat NRE Coke being the only large domestic player in this business.<BR><BR>However, the business is cyclical, with coke prices being highly sensitive to demand from user industries. Prices of coking coal, a key input, are also subject to sharp swings, making for a volatile earnings record for companies in this business.<BR><BR>According to the offer document, the company, which is now producing 1.75 lakh mtpa (metric tonnes per annum) of coke has recently added another 2 lakh mtpa in 2008. This IPO is set to fund another expansion of 1.50 lakh mtpa.<BR><BR>The rapid scaling up of capacities within a short period poses execution risks, as results of even the second expansion are not yet available. Austral has entered into an MoU with a group company Gremach Infrastructure Equipment & Projects Ltd for prospecting, mining and commercial activities in Mozambique.<BR>Business risks<BR><BR>Apart from generic issues such as cyclicality of the met coke and steel industries and fluctuations in the international prices of inputs, there are company specific challenges such as lack of forward integration and execution risks. In the coal mining and equipment rental businesses, there are potential conflicts of interest with group companies also engaged in this line of activity.<BR><BR>The proposed coke project site is in red category zone of the Pollution Control Board. The offer document states that in the case of any environmental/other policy issue, the management may decide about the relocation of the project site.<BR>Issue Details<BR><BR>The issue opened on August 7 and closes on August 13 and the issue size is Rs 119-142 crore. The price band is Rs 164-196.</DIV>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-1990957085900735283.post-41976460800416332008-08-03T23:11:00.001+05:302008-08-03T22:57:37.924+05:30Grey Market Premiums - Austral Coke<DIV> Vishal Information Technologies 140 to 150 3 to 5<BR><BR>NU TEK India Ltd. 170 to 192 6 to 8<BR><BR>Austral Coke & Projects 164 to 196 20 to 22</DIV>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1990957085900735283.post-83886868864862331642008-08-03T23:11:00.000+05:302008-08-03T22:57:14.229+05:30Reliance Infratel IPO to be deferred<DIV>Anil Ambani group firm Reliance Infratel is likely to defer its IPO plans as Sebi's go ahead for the issue is set to expire soon, making it the third major IPO deferment after that of commodity exchange MCX and mutual fund house UTI AMC.<BR>Sebi had issued observation on the IPO of Reliance Infratel, the telecom infrastructure division of Reliance Communications, on 12 May. As per the regulations, a company is required to close the IPO within 90 days of issuance of Sebi's observation on the draft red herring prospectus (DRHP)the period which ends on 11 August .<BR>When contacted Reliance Infratel officials declined to comment.<BR>Meanwhile, Reliance ADAG chairman Anil Ambani on 31 July had said, "We have received the approvals on the red herring prospectus... The volatility in global and Indian capital markets is what we are watching. A decision would be taken at an appropriate time."<BR>"When we find an appropriate time, I am sure that we will proceed both with Globalcom and Reliance Infratel," Ambani added.<BR>Reliance Infratel builds, owns and operates telecom towers and related assets at designated sites. It also offers these passive telecom infrastructure assets on a shared basis to wireless service providers and other communications service providers under long-term contracts.<BR>Earlier, the IPO of MCX and that of UTI Asset Management, were deferred due to volatile market conditions.<BR>MCX is believed to be reviving the process of its initial public offer and may file a new draft prospectus with the market regulator Sebi by the middle of this month.</DIV>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1990957085900735283.post-24416476769675330202008-07-31T09:53:00.000+05:302008-07-31T09:51:37.415+05:30Grey Market - Nu Tek India, Vishal Information Technolgoies<DIV> <TABLE align='"center"'> <TBODY> <TR> <TD align='"center"'></TD></TR></TBODY></TABLE>Vishal Information Technologies 140 to 150 4 to 6<BR><BR>NU TEK India Ltd. 170 to 192 14 to 16</DIV>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-1990957085900735283.post-25941813670365671132008-07-21T01:04:00.001+05:302008-07-21T01:04:13.480+05:30Vishal Information Technologies IPO Analysis<DIV> <TABLE align='"center"'> <TBODY> <TR> <TD align='"center"'></TD></TR></TBODY></TABLE>Investors can avoid the initial public offering of Vishal Information Technologies, a company delivering digitisation and E-Publishing services, considering the high valuation that the offer demands and the inherent business risks, given the rough macro-environment.<BR><BR>At Rs 150 (upper end of price band), the offer is priced 14 times the company's 2007-08 per share earnings on post-offer equity base.<BR><BR>This is at a premium to most BPO/KPO players in the mid and small tier space, which have more diversified service offerings than Vishal Information.<BR><BR>Heavy competition in all segments of its operations, a long receivables cycle, lack of diversification in its service portfolio and client concentration are key risks to the business.<BR><BR>Vishal Information delivers digitisation, e-publishing and digital library services to publishers.<BR><BR>The company has also been able to create digital library formatting for visually challenged people to access books by downloading text from the Internet.<BR><BR>In addition, Vishal has a subsidiary that handles back-end accounting and administrative services for financial services clients.<BR><BR>Vishal Information's revenues over the last five years have grown at a compounded annual rate of 24.1 per cent to Rs 40.9 crore for 2007-08, while revenues have grown at a rate of 24 per cent to Rs 12.4 crore during the same period.<BR>Business Risks<BR><BR>The absence of diversification from the core business makes the company vulnerable to vagaries of publishing houses' outsourcing schedules. Competition exists for the company from three sets of players. Large companies that have a diversified KPO services basket in addition to publication services such as RR Donnelley (Office Tiger), Hexaware Technologies and TCS; independent KPO players such as Scientific Publishing and Ninestar Information Technologies that specialise in digitisation; and captive units of publication houses.<BR><BR>In this light, pressure may be on billing rates with clients, and with a rough macro environment, it may only get tougher to stay competitive and maintain margins.<BR><BR>Cushion from diversification in the form of voice and other transaction based services that BPOs/KPOs provide across several verticals is not available to Vishal Information. Technology upgrade may not be as easily possible for a smaller player such as Vishal when compared to well-entrenched players with deeper pockets.<BR><BR>Scalability has also been a problem, a fact supported by the sedate growth rates even during the outsourcing boom phase of 2003-07. Now, in a tough environment with companies cutting on outsourcing budget, the company may feel the pinch even more.<BR><BR><!-- Begin: AdBrite -->The company also has high concentration risks with its top three clients accounting for 56 per cent of revenues. In the absence of many long-term contracts or continuously large orders, the company may be subject to fluctuation in results.<BR><BR>Vishal receives its payments for projects only over a six-eight month period, after its clients successfully upload the completed publications on their Web sites.<BR><BR>This large timeline in receivables would significantly increase working capital requirements.<BR><BR>In a rising interest rate scenario, bank borrowings for such purposes would significantly increase expenses on this count.<BR><BR>Considering these aspects, investors may avoid this initial public offering</DIV>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1990957085900735283.post-16264127319589656102008-07-21T01:02:00.000+05:302008-07-21T01:03:06.586+05:30Grey Market - Vishal Information Technologies<DIV> Somi Conveyor Belting 35 3 to 5<BR><BR>Birla Cotsyn (India) 12 to 14 Discount<BR><BR>Vishal Information Technologies 140 to 150 7 to 10</DIV>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-1990957085900735283.post-61979754590816488852008-07-14T09:57:00.001+05:302008-07-14T09:57:22.182+05:30Grey Market Discounts - Premiums<DIV> KSK Energy Ventures 240 Discount<BR><BR>Somi Conveyor Belting 35 4 to 5<BR><BR>Birla Cotsyn (India) 12 to 14 Discount</DIV>Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-1990957085900735283.post-21447256434426419952008-06-16T03:20:00.001+05:302008-06-16T03:20:29.773+05:30Grey Market - Sejal Architectural Glass, Archid Ply Industries<DIV> Bafna Pharmaceutical 40 7 to 10<BR><BR>Avon Weighing 10 5 to 6<BR><BR>Sejal Architectural Glass Ltd. 105 to 115 18 to 20<BR><BR>First Winners Ind. Ltd. 115 to 125 3 to 5<BR><BR>Archid Ply Ind. 70 to 80 6 to 8<BR><BR>Lotus Eye Care Hospital 38 to 42 3 to 4</DIV>Unknownnoreply@blogger.com0