Retail applicants who have NOT applied for the maximum allotment (worth 1 lakh = 225 shares) will not be allotted any shares. In other words, those who had applied for maximum retail that is 1 Lakh rupees will get allotment.
Reliance Power (RPL) Allotment process will start from 31st January 2008 onwords - Sources
Reliance Power (RPL) Refund process will start from 1st Febuary 2008 onwords - Sources
Allotment will be on following sites :
http://karsima.karvy.com
http://www.chittorgarh.com/newportal/IPO_detail.asp?a=128
All the best to RPL Investors. Keep your finger crossed
Wednesday, January 30, 2008
Shriram EPC IPO subscribed 2.15 times on day one
Initial public offer of integrated design and engineering service provider Shriram EPC got subscribed over two times on the first day of issue. Qualified institutional investors have given strong support to the issue, their reserved portion subscribed 3.57 times.
The Chennai-based company received bids for over 1.07 crore shares against 50 lakh shares on offer, data available on stocks exchanges show.
The issue, which began on January 29, would close on February 1. The price band of the issue has been fixed between Rs 290 and Rs 300.
Shriram EPC is planning to raise up to Rs 165 crore through the IPO. The company plans to utilise the issue proceeds to augment its power equipment manufacturing capacity.
Some amount from the IPO proceeds would also be utilised for acquisitions and working capital.
The company is diluting 11.66 per cent for the initial public offer. From the 50 lakh shares on offer, 60 per cent would be allocated to qualified institutional buyers and 30 per cent for retail investors and remaining 10 per cent would be for the non-institutional bidders.
The company is a service provider of integrated design, engineering, procurement, construction and project management services for renewable energy projects, process and metallurgical plants and wind turbine generator.
Source: Moneycontrol.com
The Chennai-based company received bids for over 1.07 crore shares against 50 lakh shares on offer, data available on stocks exchanges show.
The issue, which began on January 29, would close on February 1. The price band of the issue has been fixed between Rs 290 and Rs 300.
Shriram EPC is planning to raise up to Rs 165 crore through the IPO. The company plans to utilise the issue proceeds to augment its power equipment manufacturing capacity.
Some amount from the IPO proceeds would also be utilised for acquisitions and working capital.
The company is diluting 11.66 per cent for the initial public offer. From the 50 lakh shares on offer, 60 per cent would be allocated to qualified institutional buyers and 30 per cent for retail investors and remaining 10 per cent would be for the non-institutional bidders.
The company is a service provider of integrated design, engineering, procurement, construction and project management services for renewable energy projects, process and metallurgical plants and wind turbine generator.
Source: Moneycontrol.com
Subscribe to Shriram EPC with long term view
Keynote Capitals has come out with report on Shriram EPC IPO. The firm has recommended subscribing to the issue with a long term view.
Shriram EPC, one of the leading service providers of integrated design, engineering, procurement, construction and project management services for renewable energy projects, process and metallurgical plants and municipal services sector projects throughout India and one of India’s leading 250 KW wind turbine generator manufacturers, has opened for subscription with its initial public offering (IPO) of 5,000,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.
The price band is between Rs 290 and Rs 330 per equity share. The issue will close for subscription on February 1, 2008.
Keynote Capitals report on Shriram EPC IPO
Recommendation - Subscribe with a long term view
* Shriram EPC (SEPC) is a leading provider of integrated design, EPC and project management services for renewable energy projects, process and metallurgical plants and municipal services.
* The JVs with Leitwind BV, Netherlands for wind turbine generators (WTGs), Hamon BV, Netherlands for Cooling towers and Air pollution control systems and other JVs give access to technological know-how, project management skills and helps build strong client relationships.
* 41% of the IPO proceeds will be utilized for equity investments in the subsidiary and associate companies. While no fresh capex is being planned in SEPC, these investments will help consolidate and bring operations of these respective companies under SEPC’s fold.
* The revenue and PAT grew @ CAGR 138% and 287% respectively during FY04-07 reflecting aggression on the part of the management, as also the base effect.
* We believe the healthy order book of Rs22.8Bn will translate into revenues and earnings growth over the next 3 years. We expect revenues and PAT to grow @ CAGR of 70.8% and 74.3% respectively during FY08-10, on the back of the healthy order book and higher revenues from Mega-watt and Kilo-watt class WTGs.
* The investment concerns include low pricing power resulting in poor EBITDA margins and high level of receivables and order execution risks.
* The IPO is priced at 49.1x FY08E, 25.1x FY09E and 16.2x FY10E earnings. We note the relatively small size and very short track record vis-à-vis peers. While we believe it is expensive vis-à-vis WTG/EPC peers like Gamesa, Suzlon Energy and Indowind Energy we are of the view that it can be a good play on combined potential of the EPC / WTG sectors, especially given the global institutional appetite for the renewable energy segment. We therefore recommend investing with a long term perspective.
Investment Concerns
* The business is in early stages and is yet to achieve significant scalability.
* Order execution risks
* Top 10 clients contributed 85.2% of revenues in H1FY08.
* Dependence on JVs with international players Viz, Leitwind, Hamon Group, Orient
Green Power, etc.
Source: Moneycontrol.com
Shriram EPC, one of the leading service providers of integrated design, engineering, procurement, construction and project management services for renewable energy projects, process and metallurgical plants and municipal services sector projects throughout India and one of India’s leading 250 KW wind turbine generator manufacturers, has opened for subscription with its initial public offering (IPO) of 5,000,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.
The price band is between Rs 290 and Rs 330 per equity share. The issue will close for subscription on February 1, 2008.
Keynote Capitals report on Shriram EPC IPO
Recommendation - Subscribe with a long term view
* Shriram EPC (SEPC) is a leading provider of integrated design, EPC and project management services for renewable energy projects, process and metallurgical plants and municipal services.
* The JVs with Leitwind BV, Netherlands for wind turbine generators (WTGs), Hamon BV, Netherlands for Cooling towers and Air pollution control systems and other JVs give access to technological know-how, project management skills and helps build strong client relationships.
* 41% of the IPO proceeds will be utilized for equity investments in the subsidiary and associate companies. While no fresh capex is being planned in SEPC, these investments will help consolidate and bring operations of these respective companies under SEPC’s fold.
* The revenue and PAT grew @ CAGR 138% and 287% respectively during FY04-07 reflecting aggression on the part of the management, as also the base effect.
* We believe the healthy order book of Rs22.8Bn will translate into revenues and earnings growth over the next 3 years. We expect revenues and PAT to grow @ CAGR of 70.8% and 74.3% respectively during FY08-10, on the back of the healthy order book and higher revenues from Mega-watt and Kilo-watt class WTGs.
* The investment concerns include low pricing power resulting in poor EBITDA margins and high level of receivables and order execution risks.
* The IPO is priced at 49.1x FY08E, 25.1x FY09E and 16.2x FY10E earnings. We note the relatively small size and very short track record vis-à-vis peers. While we believe it is expensive vis-à-vis WTG/EPC peers like Gamesa, Suzlon Energy and Indowind Energy we are of the view that it can be a good play on combined potential of the EPC / WTG sectors, especially given the global institutional appetite for the renewable energy segment. We therefore recommend investing with a long term perspective.
Investment Concerns
* The business is in early stages and is yet to achieve significant scalability.
* Order execution risks
* Top 10 clients contributed 85.2% of revenues in H1FY08.
* Dependence on JVs with international players Viz, Leitwind, Hamon Group, Orient
Green Power, etc.
Source: Moneycontrol.com
Invest in Bang Overseas for listing gains
Hem Securities has come out with research report on Bang Overseas IPO. It has advised to invest in the issue for listing gains.
Bang Overseas, a provider of fashion fabrics and ready-to-wear requirements in apparel, textile and retail segment, has opened for subscription with an initial public offering (IPO) of 3,500,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process. The issue will constitute 25.81% of the post-issue paid-up capital of the company.
The issue will close for subscription on January 31, 2008. The price band is between Rs 200 and Rs 207 per equity share.
Hem Securities report on Bang Overseas IPO
Bang Overseas is presently providing fashion fabrics and meeting ready to wear requirements for its customers in apparel, textile and retail segment. The company is conceptualizing and designing fashion fabrics and outsourcing the manufacturing process of the same from the countries like Turkey, Portugal, Mauritius and other European countries.
The company started its own first apparel manufacturing unit in Bangalore in the year 2005 in the name of Reunion Clothing Company with an installed capacity of 350,000 pieces per annum and in the year 2006 the company started its second manufacturing unit in the name of Formal Clothing Company with an installed capacity of 360,000pieces per annum.
The company products are presently retailed through 157point of sales comprising of Retail Outlets, Large Format Stores like Shoppers Stop, Pyramid, Globus, the LOOT, SAGA and Multi Brand Outlets spread all over India.
Investment Rationale
* The company existing brand “Thomas Scott” was introduced in the year 2002 with an objective of tapping the branded apparels for men’s wear segment. This brand of the company has strong brand image and has contributed Rs 52.48 millions and Rs 105.05 million during 6 months period ended September 30, 2007 and FY2006-07 respectively in the total garment sales of company aggregating to Rs 223.74 millions and Rs356.59 millions.
* The company is having strong chain of retail outlets spread across the big cities of India. The company is having twelve retail outlets including three franchises which are established under the brand name “ThomasScott” retail outlets. These retail outlets are located at Mumbai, Rajkot, Surat, Gurgaon, Bangalore, Kolkata, Thane, New Delhi and Ahmedabad.
* The company is having in – house designing capabilities with a dedicated designing team, responsible for the continuous development of newand innovative designs and fashion. The company is having strong understanding of fashion because of ongoing learning process, through different fairs andtrend analysis, forecast reports and through international magazines.
* The company is having strong distribution network. The company sells its fashion fabric through in –house marketing team and distributors on regular and ongoing basis to its various clients in garments segment. The distribution system of the company is supported by strong logistic and warehousing system.
Concerns
* The company is having limited experience in manufacturing activities and its revenues are mainly from trading activities. The company limited experience in setting and operating manufacturing activities may impact its business operations to great extent.
* The company has not yet identified locations to open and operate its retail outlets and franchisee and any delay in identifying ideal location at competitive prices could adversely impact the company’s business and financial operations.
* The company has also not identified location in cities to purchase warehouse and any delay in timely and cost effective completion of proposed activities could adversely impact its total cost of setting up this expansion programme.
Valuation
The company at the price band of Rs 200 – 207 will have a price to earning of 19.27 – 19.94 at a post issue earning per share of Rs 10.38 and will have a price to book value of 8.44 – 8.74 at a post issue book value of Rs 23.70.
The company is having CAGR of 62% in the top line and 335% in the bottom line. The company with the strong financial background is expected to provide some handsome returns.
Therefore, going by the company financials and brand visibility we find company attractive source of investment for listing gains.
Source: Moneycontrol.com
Bang Overseas, a provider of fashion fabrics and ready-to-wear requirements in apparel, textile and retail segment, has opened for subscription with an initial public offering (IPO) of 3,500,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process. The issue will constitute 25.81% of the post-issue paid-up capital of the company.
The issue will close for subscription on January 31, 2008. The price band is between Rs 200 and Rs 207 per equity share.
Hem Securities report on Bang Overseas IPO
Bang Overseas is presently providing fashion fabrics and meeting ready to wear requirements for its customers in apparel, textile and retail segment. The company is conceptualizing and designing fashion fabrics and outsourcing the manufacturing process of the same from the countries like Turkey, Portugal, Mauritius and other European countries.
The company started its own first apparel manufacturing unit in Bangalore in the year 2005 in the name of Reunion Clothing Company with an installed capacity of 350,000 pieces per annum and in the year 2006 the company started its second manufacturing unit in the name of Formal Clothing Company with an installed capacity of 360,000pieces per annum.
The company products are presently retailed through 157point of sales comprising of Retail Outlets, Large Format Stores like Shoppers Stop, Pyramid, Globus, the LOOT, SAGA and Multi Brand Outlets spread all over India.
Investment Rationale
* The company existing brand “Thomas Scott” was introduced in the year 2002 with an objective of tapping the branded apparels for men’s wear segment. This brand of the company has strong brand image and has contributed Rs 52.48 millions and Rs 105.05 million during 6 months period ended September 30, 2007 and FY2006-07 respectively in the total garment sales of company aggregating to Rs 223.74 millions and Rs356.59 millions.
* The company is having strong chain of retail outlets spread across the big cities of India. The company is having twelve retail outlets including three franchises which are established under the brand name “ThomasScott” retail outlets. These retail outlets are located at Mumbai, Rajkot, Surat, Gurgaon, Bangalore, Kolkata, Thane, New Delhi and Ahmedabad.
* The company is having in – house designing capabilities with a dedicated designing team, responsible for the continuous development of newand innovative designs and fashion. The company is having strong understanding of fashion because of ongoing learning process, through different fairs andtrend analysis, forecast reports and through international magazines.
* The company is having strong distribution network. The company sells its fashion fabric through in –house marketing team and distributors on regular and ongoing basis to its various clients in garments segment. The distribution system of the company is supported by strong logistic and warehousing system.
Concerns
* The company is having limited experience in manufacturing activities and its revenues are mainly from trading activities. The company limited experience in setting and operating manufacturing activities may impact its business operations to great extent.
* The company has not yet identified locations to open and operate its retail outlets and franchisee and any delay in identifying ideal location at competitive prices could adversely impact the company’s business and financial operations.
* The company has also not identified location in cities to purchase warehouse and any delay in timely and cost effective completion of proposed activities could adversely impact its total cost of setting up this expansion programme.
Valuation
The company at the price band of Rs 200 – 207 will have a price to earning of 19.27 – 19.94 at a post issue earning per share of Rs 10.38 and will have a price to book value of 8.44 – 8.74 at a post issue book value of Rs 23.70.
The company is having CAGR of 62% in the top line and 335% in the bottom line. The company with the strong financial background is expected to provide some handsome returns.
Therefore, going by the company financials and brand visibility we find company attractive source of investment for listing gains.
Source: Moneycontrol.com
What experts say about IRB Infrastructure IPO?
IRB Infrastructure Developers, an infrastructure and construction company in India with extensive experience in the roads and highways sector and currently involved in 12 BOT projects in this sector, proposes to enter the capital markets on January 31, 2008 with a public issue of 5,10,57,666 equity shares of Rs 10 each through 100% book building process.
The issue closes on February 5, 2008 and the price band has been fixed at Rs 185 to Rs 220 per equity share of Rs 10 each.
The issue will constitute 15.36% of the fully diluted post-issue equity share capital of the company. The equity shares are proposed to be listed on the BSE and the NSE. The company filed a red herring prospectus with the registrar of companies on January 14, 2008 .
Deutsche Equities India Private Ltd is the sole global coordinator and BRLM for the issue and Kotak Mahindra Capital Co. Ltd is the Co-BRLM for the issue.
The company proposes to utilize the net proceeds of the issue for investment in subsidiary IDAA; prepayment and repayment of existing loans of the company and the subsidiaries Aryan Toll Road Pvt. Ltd, Modern Road Makers Pvt. Ltd, Thane Ghodbunder Toll Road Pvt. Ltd, NKT Road & Toll Pvt. Ltd and Mhaiskar Infrastructure Pvt. Ltd.
IRB Infrastructure Developers is currently involved in 12 BOT projects in the roads and highways sector. Out of these projects, 11 projects are in the operational phase, i.e., engineering, procurement and construction phases have been completed on these projects and the project SPVs are currently earning revenues from toll collection under the relevant concession agreements.
Currently, the company's land reserves consist of approximately 925 acres of land in the Mauje Taje and Mauje Pimploli Taluka in Pune district, and it intends to acquire an additional approximately 475 acres of land for its proposed township project.
In fiscal 2007, the consolidated total income of the company was Rs 325.08 crore and it earned consolidated net profit, as restated, of Rs 29.96 crore. In the five months ended August 31, 2007, consolidated total income was Rs 285.26 crore and it earned consolidated net profit, as restated, of Rs 36.38 crore in this period.
Source: Moneycontrol.com
The issue closes on February 5, 2008 and the price band has been fixed at Rs 185 to Rs 220 per equity share of Rs 10 each.
The issue will constitute 15.36% of the fully diluted post-issue equity share capital of the company. The equity shares are proposed to be listed on the BSE and the NSE. The company filed a red herring prospectus with the registrar of companies on January 14, 2008 .
Deutsche Equities India Private Ltd is the sole global coordinator and BRLM for the issue and Kotak Mahindra Capital Co. Ltd is the Co-BRLM for the issue.
The company proposes to utilize the net proceeds of the issue for investment in subsidiary IDAA; prepayment and repayment of existing loans of the company and the subsidiaries Aryan Toll Road Pvt. Ltd, Modern Road Makers Pvt. Ltd, Thane Ghodbunder Toll Road Pvt. Ltd, NKT Road & Toll Pvt. Ltd and Mhaiskar Infrastructure Pvt. Ltd.
IRB Infrastructure Developers is currently involved in 12 BOT projects in the roads and highways sector. Out of these projects, 11 projects are in the operational phase, i.e., engineering, procurement and construction phases have been completed on these projects and the project SPVs are currently earning revenues from toll collection under the relevant concession agreements.
Currently, the company's land reserves consist of approximately 925 acres of land in the Mauje Taje and Mauje Pimploli Taluka in Pune district, and it intends to acquire an additional approximately 475 acres of land for its proposed township project.
In fiscal 2007, the consolidated total income of the company was Rs 325.08 crore and it earned consolidated net profit, as restated, of Rs 29.96 crore. In the five months ended August 31, 2007, consolidated total income was Rs 285.26 crore and it earned consolidated net profit, as restated, of Rs 36.38 crore in this period.
Source: Moneycontrol.com
Tuesday, January 29, 2008
Future Capital Holdings Limited IPO Allotment Status
Future Capital Holdings Limited Initial Public Offer IPO was open on January 11, 2008 and closed on January 16, 2008. Future Capital Holdings Limited IPO was oversubscribed by 133.44 times (55.2187 times in retail).
Check below links for IPO Allotment status of Future Capital Holdings Limited IPO:
http://www.intimespectrum.com
http://www.chittorgarh.com/stockmarket/future-capital-ipo-allotment-status.asp
Check below links for IPO Allotment status of Future Capital Holdings Limited IPO:
http://www.intimespectrum.com
http://www.chittorgarh.com/stockmarket/future-capital-ipo-allotment-status.asp
Cox and Kings files DRHP with SEBI
Cox and Kings (India), one of the oldest and most reputed travel organizations in India operating as a one-stop-shop for all travel related products, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to enter the capital market soon with an initial public offering (IPO) of 8,700,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.
The issue comprises a net issue of 8,600,000 equity shares to the public and a reservation of up to 1,00,000 equity shares for permanent eligible employees. The issue would constitute 23.75% of the fully diluted post Issue paid up capital of the company and the net issue will constitute 23.48% of the fully diluted post issue paid-up capital of the company.
The equity shares are proposed to be listed on Bombay Stock Exchange and National Stock Exchange.
The company is considering a Pre-IPO Placement of certain equity shares with some investors and will complete the issuance of such equity shares prior to the filing of the red herring prospectus (RHP) with the Registrar of Companies (RoC). The number of equity shares in the issue will be reduced to the extent of the equity shares proposed to be allotted in the Pre-IPO Placement, if, any, subject to the net issue to the public being at least 10% of the fully diluted post-Issued paid up capital of the company.
Of the total equity float, at least 60% of the net issue shall be allocated on a proportionate basis to qualified institutional buyers out of which 5% shall be available for allocation on a proportionate basis to Mutual Funds only. Further, not less than 10% of the net issue shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 30% of the net issue shall be available for allocation on a proportionate basis to retail individual bidders.
About the Company
Cox & Kings is the oldest established travel names in the travel business. It offers a one-stop shop for the travel needs of all segments of travellers. It specializes in Destination Management, Leisure Travel, MICE, NRI Holidays and Trade Fairs. In currency rxchange the company has been granted Category II license by the Reserve Bank of India enabling it to enjoy Authorised Dealer Status.
Cox & Kings has over 12 fully owned offices in India across key cities such as New Delhi, Chennai, Bangalore, Kolkata, Ahmedabad, Kochi, Hyderabad, Pune, Goa, Nagpur and Jaipur. The worldwide offices are located in UK, USA, Japan, Russia, Singapore and Dubai. It has associate offices in Germany, Italy, Spain, South Africa, Sweden and Australia.
The book running lead manager to the issue is Enam Securities Private Limited.
Source: Moneycontrol.com
The issue comprises a net issue of 8,600,000 equity shares to the public and a reservation of up to 1,00,000 equity shares for permanent eligible employees. The issue would constitute 23.75% of the fully diluted post Issue paid up capital of the company and the net issue will constitute 23.48% of the fully diluted post issue paid-up capital of the company.
The equity shares are proposed to be listed on Bombay Stock Exchange and National Stock Exchange.
The company is considering a Pre-IPO Placement of certain equity shares with some investors and will complete the issuance of such equity shares prior to the filing of the red herring prospectus (RHP) with the Registrar of Companies (RoC). The number of equity shares in the issue will be reduced to the extent of the equity shares proposed to be allotted in the Pre-IPO Placement, if, any, subject to the net issue to the public being at least 10% of the fully diluted post-Issued paid up capital of the company.
Of the total equity float, at least 60% of the net issue shall be allocated on a proportionate basis to qualified institutional buyers out of which 5% shall be available for allocation on a proportionate basis to Mutual Funds only. Further, not less than 10% of the net issue shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 30% of the net issue shall be available for allocation on a proportionate basis to retail individual bidders.
About the Company
Cox & Kings is the oldest established travel names in the travel business. It offers a one-stop shop for the travel needs of all segments of travellers. It specializes in Destination Management, Leisure Travel, MICE, NRI Holidays and Trade Fairs. In currency rxchange the company has been granted Category II license by the Reserve Bank of India enabling it to enjoy Authorised Dealer Status.
Cox & Kings has over 12 fully owned offices in India across key cities such as New Delhi, Chennai, Bangalore, Kolkata, Ahmedabad, Kochi, Hyderabad, Pune, Goa, Nagpur and Jaipur. The worldwide offices are located in UK, USA, Japan, Russia, Singapore and Dubai. It has associate offices in Germany, Italy, Spain, South Africa, Sweden and Australia.
The book running lead manager to the issue is Enam Securities Private Limited.
Source: Moneycontrol.com
OnMobile Global IPO subscribed 11 times
The initial public offering (IPO) of OnMobile Global, a leading provider of telecommunications value added software products and services in India with an expanding international presence, has received good response and subscribed 10.93 times, as per NSE website.
Public offer has received bids for 11.9 crore equity shares as against 10,900,545 equity shares on offer. Good response has seen from qualified institutional investors, whose reserved portion subscribed 16.68 times, according to sources. All bids were at higher end of price band.
The price band is between Rs 425 and Rs 450 per equity share.
The company is proposing a fresh issue of 8,613,356 equity shares and an offer for sale of 2,287,189 equity shares by Onmobile Systems Inc. The issue would constitute 18.99% of the fully diluted post issue paid-up capital of the company.
The objects of the issue are to purchase equipment for the company’s offices at Bangalore, Mumbai and Delhi and various customer sites, to meet working capital requirements, repayment of loan and to fund expenditures for general corporate purposes.
The equity shares are proposed to be listed on Bombay Stock Exchange and National Stock Exchange of India.
The book running lead managers to the issue are Deutsche Equities India Private Limited and ICICI Securities Limited.
It has a broad range of applications that are delivered by its carrier customers to their end-user subscribers. These products include ringback tones, voice portals, ringtone downloads, subscription manager, contests, music messaging, on-device client software, mobile radio, dynamic voicemail, voice short messaging service and missed call alerts which enable subscribers to personalise their mobile phones and thereby enhance user experience.
Source: Moneycontrol.com
Public offer has received bids for 11.9 crore equity shares as against 10,900,545 equity shares on offer. Good response has seen from qualified institutional investors, whose reserved portion subscribed 16.68 times, according to sources. All bids were at higher end of price band.
The price band is between Rs 425 and Rs 450 per equity share.
The company is proposing a fresh issue of 8,613,356 equity shares and an offer for sale of 2,287,189 equity shares by Onmobile Systems Inc. The issue would constitute 18.99% of the fully diluted post issue paid-up capital of the company.
The objects of the issue are to purchase equipment for the company’s offices at Bangalore, Mumbai and Delhi and various customer sites, to meet working capital requirements, repayment of loan and to fund expenditures for general corporate purposes.
The equity shares are proposed to be listed on Bombay Stock Exchange and National Stock Exchange of India.
The book running lead managers to the issue are Deutsche Equities India Private Limited and ICICI Securities Limited.
It has a broad range of applications that are delivered by its carrier customers to their end-user subscribers. These products include ringback tones, voice portals, ringtone downloads, subscription manager, contests, music messaging, on-device client software, mobile radio, dynamic voicemail, voice short messaging service and missed call alerts which enable subscribers to personalise their mobile phones and thereby enhance user experience.
Source: Moneycontrol.com
Avoid Wockhardt Hospitals IPO
SPA Securities has come out with research report on Wockhardt Hospitals IPO. It has advised to ignore the issue.
Wockhardt Hospitals (WHL), one of the largest private healthcare services companies in India based on the number of hospital beds, is entering capital market with an initial public offering (IPO) of 25,087,097 equity shares of Rs 10 each for cash at a price determined through a 100% book building process.
The price band has been fixed between Rs 280 and Rs 310 per equity share. The issue will open on January 31 and close on February 5, 2008.
SPA Securities report on Wockhardt Hospitals IPO
Company Highlights
* WHL is a private healthcare service company. WHL has a super specialty focus on areas such as cardiology & cardiac surgery, orthopedics, neurology & neurosurgery, urology & nephrology & critical care and they specialize in minimally invasive surgery.
* WHL has shown a CAGR of 35% in the topline; 35% in EBITDA and 245% in the bottomline from FY 2005 to FY 2007.
* Investment Rationale: The company has special focus on tertiary care clinical areas like cardiology & cardiac surgery, etc; Only private hospital group in India associated with Harvard Medical School; Pan India presence; Ability to retain & educate skilled personnel’s.
* Concerns are: Though the company has a national presence, nearly 71% of the revenues are generated by the hospitals in Mumbai & Bangalore; High debt – equity ratio; The company operates brownfield hospitals where the commission earned by WHL is very low; Low margins for the figures recorded in Dec – 07;
* Fitch has assigned an IPO Grade “4/5” to this issue.
* Healthcare spending in India is expected to rise by 12% per annum through 2005-09 and this figure is expected to reach 5.5%, or approximately USD 60.9 billion by 2012, according to IBEF-E&Y. CRISINFAC expects the total healthcare delivery market in India to grow from Rs 1,253 bn in 2006 to Rs.3,642 bn by 2016.
Valuation
The stock is currently available at a P/E of 300x to 332x on the lower & upper price bands respectively of its FY 08E EPS of Re.0.93. The industry P/E is at 25x which shows that this issue is highly priced. The EV/Bed of WHL is at 23x & 26x on the lower & upper price EV bands respectively where as that of Apollo & Fortis is at 4x & 15x respectively, which again shows that the issue is expensive.
The significant revenues of the company will start from 2010 when all the expansion plans of the company will be over & it will start giving higher returns to investors.
Currently, the issue price looks to be on the expensive side. The industry is poised to have an upward trend in the near future and it’s better to invest in peer group companies like Apollo which is available at a cheaper P/E and whose EV/Bed is also relatively cheaper. Hence, we recommend Ignore to the issue.
Source: Moneycontrol.com
Wockhardt Hospitals (WHL), one of the largest private healthcare services companies in India based on the number of hospital beds, is entering capital market with an initial public offering (IPO) of 25,087,097 equity shares of Rs 10 each for cash at a price determined through a 100% book building process.
The price band has been fixed between Rs 280 and Rs 310 per equity share. The issue will open on January 31 and close on February 5, 2008.
SPA Securities report on Wockhardt Hospitals IPO
Company Highlights
* WHL is a private healthcare service company. WHL has a super specialty focus on areas such as cardiology & cardiac surgery, orthopedics, neurology & neurosurgery, urology & nephrology & critical care and they specialize in minimally invasive surgery.
* WHL has shown a CAGR of 35% in the topline; 35% in EBITDA and 245% in the bottomline from FY 2005 to FY 2007.
* Investment Rationale: The company has special focus on tertiary care clinical areas like cardiology & cardiac surgery, etc; Only private hospital group in India associated with Harvard Medical School; Pan India presence; Ability to retain & educate skilled personnel’s.
* Concerns are: Though the company has a national presence, nearly 71% of the revenues are generated by the hospitals in Mumbai & Bangalore; High debt – equity ratio; The company operates brownfield hospitals where the commission earned by WHL is very low; Low margins for the figures recorded in Dec – 07;
* Fitch has assigned an IPO Grade “4/5” to this issue.
* Healthcare spending in India is expected to rise by 12% per annum through 2005-09 and this figure is expected to reach 5.5%, or approximately USD 60.9 billion by 2012, according to IBEF-E&Y. CRISINFAC expects the total healthcare delivery market in India to grow from Rs 1,253 bn in 2006 to Rs.3,642 bn by 2016.
Valuation
The stock is currently available at a P/E of 300x to 332x on the lower & upper price bands respectively of its FY 08E EPS of Re.0.93. The industry P/E is at 25x which shows that this issue is highly priced. The EV/Bed of WHL is at 23x & 26x on the lower & upper price EV bands respectively where as that of Apollo & Fortis is at 4x & 15x respectively, which again shows that the issue is expensive.
The significant revenues of the company will start from 2010 when all the expansion plans of the company will be over & it will start giving higher returns to investors.
Currently, the issue price looks to be on the expensive side. The industry is poised to have an upward trend in the near future and it’s better to invest in peer group companies like Apollo which is available at a cheaper P/E and whose EV/Bed is also relatively cheaper. Hence, we recommend Ignore to the issue.
Source: Moneycontrol.com
Monday, January 28, 2008
Future Capital Holdings to list on February 1
The first public issue of calendar 2008, Future Capital Holdings (FCHL), the financial services arm of the Future Group, will create several records when it lists on the stock exchanges on February 1, within 11 working days from the day of issue closing.
The company and the registrars will start sending out the refunds from January 29, which is eight working days from the day of issue closing.
The company has set the tone for speedy process of refunds by reducing the time-lag for the refund process for IPOs in calendar 2008.
Due to the speedy process, an amount of Rs 16,000 crore will be pumped back into the market and the liquidity will improve
The company had fixed the issue price at Rs 765 per equity share (upper end of the price band) for its initial public offering (IPO) of 6,422,800 equity shares of Rs 10 each for cash at the above price decided through a 100% book-building process.
The issue had opened for subscription on January 11, 2008, and closed on January 16, 2008. According to the preliminary data obtained from the stock exchanges, the issue was subscribed to approximately around 133 times (Source: NSE website). The qualified institutional bidders portion was subscribed to approximately around 180 times; the non institutional investors portion 84 times; and the retail portion 55 times. The public issue received more than 11.71 lakh applications and bids for 85.7 crore equity shares as against 6.422 million shares on offer.
The equity shares are proposed to be listed on Bombay Stock Exchange and the National Stock Exchange. The issue constitutes 10.16% of the post-issue paid-up capital of the company.
The book running lead managers to the issue are Kotak Mahindra Capital Company Limited, Enam Securities Private Limited, JM Financial Consultants Private Limited and UBS Securities India Private Limited.
Source: Moneycontrol.com
The company and the registrars will start sending out the refunds from January 29, which is eight working days from the day of issue closing.
The company has set the tone for speedy process of refunds by reducing the time-lag for the refund process for IPOs in calendar 2008.
Due to the speedy process, an amount of Rs 16,000 crore will be pumped back into the market and the liquidity will improve
The company had fixed the issue price at Rs 765 per equity share (upper end of the price band) for its initial public offering (IPO) of 6,422,800 equity shares of Rs 10 each for cash at the above price decided through a 100% book-building process.
The issue had opened for subscription on January 11, 2008, and closed on January 16, 2008. According to the preliminary data obtained from the stock exchanges, the issue was subscribed to approximately around 133 times (Source: NSE website). The qualified institutional bidders portion was subscribed to approximately around 180 times; the non institutional investors portion 84 times; and the retail portion 55 times. The public issue received more than 11.71 lakh applications and bids for 85.7 crore equity shares as against 6.422 million shares on offer.
The equity shares are proposed to be listed on Bombay Stock Exchange and the National Stock Exchange. The issue constitutes 10.16% of the post-issue paid-up capital of the company.
The book running lead managers to the issue are Kotak Mahindra Capital Company Limited, Enam Securities Private Limited, JM Financial Consultants Private Limited and UBS Securities India Private Limited.
Source: Moneycontrol.com
Big Bazaar evaluating funding options for expansion
Even as it goes through the process of becoming an independent entity, Big Bazaar, the hypermarket of the over Rs 4,000-crore Future Group, said that it has embarked on an aggressive expansion for the next two years.
Mr Rajan Malhotra, CEO, Big Bazaar, said: “We plan to invest substantial amounts in the next one-and-a-half to two years in order to increase our footprint to 300 by the end of June 2009.” Big Bazaar currently has 80 stores across the country and has already signed property for another 140 outlets. Industry sources said that the company has plans of investing nearly Rs 3,000 crore over the next two years.
According to sources, the company is evaluating different possibilities such as internal accruals, debt and strategic investment possibilities such as getting the funds from private investors and private equity players to fund expansion. In fact, officials in the know say that Big Bazaar could consider an initial public offer to raise the funds.
In-house labels:
Mr Malhotra said that in terms of strategy for the coming couple of years, the hypermarket will put extra focus on in-house labels that are going mainstream. “We will definitely provide more visibility to our private label brands that are now going mainstream,” he said. The brands would be across categories such as home linen, footwear, apparels and consumer durables amongst others. Some private labels that have already seen a mainstream launch are apparel brands Bare and John Miller and home linen brand Dreamline. These will be followed by mainstream launches of well performing food brands such as Tasty Treats and Fresh n’ Pure.
Hive-off plans:
On the Group’s plans to hive off the hypermarket format into an independent entity, Mr Malhotra said, “Yes, we are hiving it off and creating an independent structure. In fact, we have already started the procedure. The issue has been discussed at the recent board meeting and a clear picture should emerge within the next few weeks.”
The company, however, maintained that there would not be any major structural or strategic shift due to the hive-off. “We do not plan to change any strategy as a result of the hiving-off. The idea is to create an independent sustainable environment out of the format, since it already is one of the largest contributing formats to the overall revenues,” said Mr Malhotra. He added, “We at Big Bazaar hope to touch the $2-billion mark by the end of 2009.”
Sale event:
On Big Bazaar’s largest sale event, the three-day sale, from January 25-27 on the occasion of Republic Day, Mr Malhotra said, “This is the biggest promotional offer that Big Bazaar does in the year. Last year, we made Rs 140 crore as revenues during the three days. This year, we hope to touch the Rs 200-crore mark”, reports The Hindu Business Line.
Source: Moneycontrol.com
Mr Rajan Malhotra, CEO, Big Bazaar, said: “We plan to invest substantial amounts in the next one-and-a-half to two years in order to increase our footprint to 300 by the end of June 2009.” Big Bazaar currently has 80 stores across the country and has already signed property for another 140 outlets. Industry sources said that the company has plans of investing nearly Rs 3,000 crore over the next two years.
According to sources, the company is evaluating different possibilities such as internal accruals, debt and strategic investment possibilities such as getting the funds from private investors and private equity players to fund expansion. In fact, officials in the know say that Big Bazaar could consider an initial public offer to raise the funds.
In-house labels:
Mr Malhotra said that in terms of strategy for the coming couple of years, the hypermarket will put extra focus on in-house labels that are going mainstream. “We will definitely provide more visibility to our private label brands that are now going mainstream,” he said. The brands would be across categories such as home linen, footwear, apparels and consumer durables amongst others. Some private labels that have already seen a mainstream launch are apparel brands Bare and John Miller and home linen brand Dreamline. These will be followed by mainstream launches of well performing food brands such as Tasty Treats and Fresh n’ Pure.
Hive-off plans:
On the Group’s plans to hive off the hypermarket format into an independent entity, Mr Malhotra said, “Yes, we are hiving it off and creating an independent structure. In fact, we have already started the procedure. The issue has been discussed at the recent board meeting and a clear picture should emerge within the next few weeks.”
The company, however, maintained that there would not be any major structural or strategic shift due to the hive-off. “We do not plan to change any strategy as a result of the hiving-off. The idea is to create an independent sustainable environment out of the format, since it already is one of the largest contributing formats to the overall revenues,” said Mr Malhotra. He added, “We at Big Bazaar hope to touch the $2-billion mark by the end of 2009.”
Sale event:
On Big Bazaar’s largest sale event, the three-day sale, from January 25-27 on the occasion of Republic Day, Mr Malhotra said, “This is the biggest promotional offer that Big Bazaar does in the year. Last year, we made Rs 140 crore as revenues during the three days. This year, we hope to touch the Rs 200-crore mark”, reports The Hindu Business Line.
Source: Moneycontrol.com
Reliance Power a long term call
Amitabh Chakraborty, President Equity at Religare Securities feels that Reliance Power is a stock that is to be held for a longer period of time purely to play the power sector and the up side in the power sectors in India. To that extent, it’s a long term call.
Chakraborty told CNBC-TV18, “I haven’t seen the grey market premium figures for Reliance Power but I was told, as on Friday, it came down quite drastically. Again it’s too early, everything depends on the market. This is a not something for today or tomorrow. It’s a stock that is to be held for a longer period of time purely to play the power sector and the up side in the power sectors in India and to that extent, it’s along term call. “
He further added, “The listings, grey market calls, those are the sentiments driven by the market. We believe the market will be strong going forward in February ahead of the budget and the listing would be sometime in the middle of that month of February. Obviously the stock would be quite decently listed.
Source: Moneycontrol.com
Chakraborty told CNBC-TV18, “I haven’t seen the grey market premium figures for Reliance Power but I was told, as on Friday, it came down quite drastically. Again it’s too early, everything depends on the market. This is a not something for today or tomorrow. It’s a stock that is to be held for a longer period of time purely to play the power sector and the up side in the power sectors in India and to that extent, it’s along term call. “
He further added, “The listings, grey market calls, those are the sentiments driven by the market. We believe the market will be strong going forward in February ahead of the budget and the listing would be sometime in the middle of that month of February. Obviously the stock would be quite decently listed.
Source: Moneycontrol.com
What experts say about Bang Overseas?
Bang Overseas, a provider of fashion fabrics and ready-to-wear requirements in apparel, textile and retail segment, has opened for subscription with an initial public offering (IPO) of 3,500,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process. The issue will constitute 25.81% of the post-issue paid-up capital of the company.
The issue will close for subscription on January 31, 2008. The price band has been fixed between Rs 200 and Rs 207 per equity share.
The issue comprises a net issue of 3,400,000 equity shares of Rs 10 each after a reservation for eligible employees of 100,000 equity shares of Rs 10 each for cash at a premium. The equity shares are proposed to be listed on Bombay Stock Exchange and National Stock Exchange.
The proceeds from the proposed issue are to be deployed for setting up retail outlets across India; brand building; setting up a new apparel manufacturing unit; warehousing and logistic facilities; general corporate purposes and to meet Issue expenses.
The book running lead manager to the Issue is Almondz Global Securities Ltd.
Source: Moneycontrol.com
The issue will close for subscription on January 31, 2008. The price band has been fixed between Rs 200 and Rs 207 per equity share.
The issue comprises a net issue of 3,400,000 equity shares of Rs 10 each after a reservation for eligible employees of 100,000 equity shares of Rs 10 each for cash at a premium. The equity shares are proposed to be listed on Bombay Stock Exchange and National Stock Exchange.
The proceeds from the proposed issue are to be deployed for setting up retail outlets across India; brand building; setting up a new apparel manufacturing unit; warehousing and logistic facilities; general corporate purposes and to meet Issue expenses.
The book running lead manager to the Issue is Almondz Global Securities Ltd.
Source: Moneycontrol.com
Sunday, January 27, 2008
OnMobile Global subscribed 1.31 times on day 2
OnMobile Global was subscribed 1.31 times on the second day of opening. The issue received bids for 1.43 crore shares as against 1.09 crore shares on offer.
The price band of equity share of face value Rs 10 each has been fixed between Rs 425-450 per share. The IPO will close on 29 January 2008.
The issue would constitute 18.99% of the fully diluted post issue paid-up capital. The issue has been graded above average by CRISIL and has been assigned a grade of 4/5.
OnMobile Global is a provider of telecommunications value added software products and services in India with an expanding international presence.
The company plans to use IPO proceeds to purchase equipment for company's offices at Bangalore, Mumbai and Delhi and various customer sites, to meet working capital requirements, repayment of loan and to fund expenditures
Source: CapitalMarket.com
The price band of equity share of face value Rs 10 each has been fixed between Rs 425-450 per share. The IPO will close on 29 January 2008.
The issue would constitute 18.99% of the fully diluted post issue paid-up capital. The issue has been graded above average by CRISIL and has been assigned a grade of 4/5.
OnMobile Global is a provider of telecommunications value added software products and services in India with an expanding international presence.
The company plans to use IPO proceeds to purchase equipment for company's offices at Bangalore, Mumbai and Delhi and various customer sites, to meet working capital requirements, repayment of loan and to fund expenditures
Source: CapitalMarket.com
Friday, January 25, 2008
IPO Grey Market Rates Date : 25th January 2008
Latest IPO Grey Market Premium Rates :- Date : 25th January 2008
Company - Open / Close Dates - Offer Price - Premium - Kostak Rates
Globus Spirits Ltd - 07 Feb / 12 Feb - 140 to 160 - .... - ....
Emaar MGF Land Limited - 01 Feb / 06 Feb - 610 to 690 - 190 to 200
Tulsi Extrusions Limited - 01 Feb / 05 Feb - 80 to 85 - .... - ....
Manjushree - 31 Jan / 06 Feb - 45 - .... - ....
Wockhardt Hospitals - 31 Jan / 05 Feb - 280 to 310 - .... - ....
IRB Infrastructure Developers Limited - 31 Jan / 05 Feb - 185 to 220 - .... - ....
Shriram EPC Limited - 29 Jan / 01 Feb 290 to 330 - .... - ....
Bang Overseas Limited - 28 Jan / 31 Jan - 200 to 207 - 28 to 32 - 2000 to 2100 - ....
KNR Constructions Limited - 24 Jan / 29 Jan - 170 to 180 - 11 to 12 - ....
OnMobile Global Limited - 24 Jan / 29 Jan - 425 to 450 - 70 to 80 - ....
Cords Cable Industries - 21 Jan / 24 Jan - 125 to 135 - 17 to 18 - ....
J.Kumar Infraprojects Limited - 18 Jan / 23 Jan - 110 to 120 - 5 to 6 - ....
Future Capital - 11 Jan / 16 Jan - 700 to 765 - 350 to 360 - ....
Reliance Power Limited - 15 Jan / 18 Jan - 405 to 450 - 140 to 150 - ....
Company - Open / Close Dates - Offer Price - Premium - Kostak Rates
Globus Spirits Ltd - 07 Feb / 12 Feb - 140 to 160 - .... - ....
Emaar MGF Land Limited - 01 Feb / 06 Feb - 610 to 690 - 190 to 200
Tulsi Extrusions Limited - 01 Feb / 05 Feb - 80 to 85 - .... - ....
Manjushree - 31 Jan / 06 Feb - 45 - .... - ....
Wockhardt Hospitals - 31 Jan / 05 Feb - 280 to 310 - .... - ....
IRB Infrastructure Developers Limited - 31 Jan / 05 Feb - 185 to 220 - .... - ....
Shriram EPC Limited - 29 Jan / 01 Feb 290 to 330 - .... - ....
Bang Overseas Limited - 28 Jan / 31 Jan - 200 to 207 - 28 to 32 - 2000 to 2100 - ....
KNR Constructions Limited - 24 Jan / 29 Jan - 170 to 180 - 11 to 12 - ....
OnMobile Global Limited - 24 Jan / 29 Jan - 425 to 450 - 70 to 80 - ....
Cords Cable Industries - 21 Jan / 24 Jan - 125 to 135 - 17 to 18 - ....
J.Kumar Infraprojects Limited - 18 Jan / 23 Jan - 110 to 120 - 5 to 6 - ....
Future Capital - 11 Jan / 16 Jan - 700 to 765 - 350 to 360 - ....
Reliance Power Limited - 15 Jan / 18 Jan - 405 to 450 - 140 to 150 - ....
Shriram EPC IPO opens on Jan 29, price band Rs 290-330
Shriram EPC, one of the leading service providers of integrated design, engineering, procurement, construction and project management services for renewable energy projects, process and metallurgical plants and municipal services sector projects throughout India and one of India’s leading 250 KW wind turbine generator manufacturers, will enter the capital market with its initial public offering (IPO) of 5,000,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.
The price band has been fixed between Rs 290 and Rs 330 per equity share. The issue will open for subscription between January 29 and February 1, 2008.
Out of the total equity shares being offered in the Issue, at least 60% of the net issue shall be allocated to qualified institutional buyers (QIBs) on a proportionate basis out of which 5% shall be available for allocation on a proportionate basis to Mutual Funds only. Further, not less than 10% of the net issue would be allocated to non-institutional bidders and not less than 30% of the net issue would be allocated to retail individual bidders on a proportionate basis, subject to valid bids being received from them at or above the issue price.
The issue will constitute 11.66% of the fully diluted post-issue paid-up capital of the company. The equity shares are proposed to be listed on Bombay Stock Exchange and National Stock Exchange.
The objects of the issue are to invest in its subsidiary and associate companies, fund expenditures for general corporate purposes and to achieve the benefits of listing on the Stock Exchanges. The issue has been graded by CRISIL Limited and has been assigned a grade of 3 out of 5, indicating average fundamentals.
Shriram EPC undertakes most of its Engineering, Procurement and Construction (EPC), and wind turbine generator (WTG) projects on a turnkey basis, in which it provides customised solutions from conceptualization to engineering and manufacturing to commissioning to meet the specialised needs of its public and private sector clients.
The company provides integrated turnkey solutions for bio-mass based power plants, bio-ethanol production plants, process and metallurgy plants (including thermal power plants), water and wastewater treatment plants, water and sewerage infrastructure and pipe rehabilitation.
The WTG business has been focused on developing, manufacturing, erecting and commissioning 250 KW (WTG) and is currently developing megawatt-class WTGs through one of its subsidiaries and associate Companies. It has completed wind energy projects in the WTG business across India and also internationally in Zambia and France.
The global co-ordinator and book running lead manager to the issue is Kotak Mahindra Capital Company Limited and the book running lead manager is ICICI Securities Limited. The co-book running lead manager is Motilal Oswal Investment Advisors Private Limited.
Source: Moneycontrol.com
The price band has been fixed between Rs 290 and Rs 330 per equity share. The issue will open for subscription between January 29 and February 1, 2008.
Out of the total equity shares being offered in the Issue, at least 60% of the net issue shall be allocated to qualified institutional buyers (QIBs) on a proportionate basis out of which 5% shall be available for allocation on a proportionate basis to Mutual Funds only. Further, not less than 10% of the net issue would be allocated to non-institutional bidders and not less than 30% of the net issue would be allocated to retail individual bidders on a proportionate basis, subject to valid bids being received from them at or above the issue price.
The issue will constitute 11.66% of the fully diluted post-issue paid-up capital of the company. The equity shares are proposed to be listed on Bombay Stock Exchange and National Stock Exchange.
The objects of the issue are to invest in its subsidiary and associate companies, fund expenditures for general corporate purposes and to achieve the benefits of listing on the Stock Exchanges. The issue has been graded by CRISIL Limited and has been assigned a grade of 3 out of 5, indicating average fundamentals.
Shriram EPC undertakes most of its Engineering, Procurement and Construction (EPC), and wind turbine generator (WTG) projects on a turnkey basis, in which it provides customised solutions from conceptualization to engineering and manufacturing to commissioning to meet the specialised needs of its public and private sector clients.
The company provides integrated turnkey solutions for bio-mass based power plants, bio-ethanol production plants, process and metallurgy plants (including thermal power plants), water and wastewater treatment plants, water and sewerage infrastructure and pipe rehabilitation.
The WTG business has been focused on developing, manufacturing, erecting and commissioning 250 KW (WTG) and is currently developing megawatt-class WTGs through one of its subsidiaries and associate Companies. It has completed wind energy projects in the WTG business across India and also internationally in Zambia and France.
The global co-ordinator and book running lead manager to the issue is Kotak Mahindra Capital Company Limited and the book running lead manager is ICICI Securities Limited. The co-book running lead manager is Motilal Oswal Investment Advisors Private Limited.
Source: Moneycontrol.com
Cords Cable IPO subscribed 5 times
The initial public offering (IPO) of Cords Cable Industries, a specialised cable manufacturer for variety of industries, has closed for subscription. The issue received bids for 1.54 crore equity shares as against 30.85 lakh shares on offer.
Public issue subscribed 4.99 times, as per NSE website. QIBs reserved portion subscribed 6.83 times, HNIs 5.11 times and retail 2.58 times.
The price band was between Rs 125 and Rs 135 per equity share. The equity shares are proposed to be listed on Bombay Stock Exchange and National Stock Exchange.
The public issue includes an employee reservation of 70,000 equity shares and the net issue to the public is 30,15,000 equity shares. The issue would constitute 27% of the fully diluted post-issue paid-up capital of the company and the net issue would constitute 26.38%.
At present, CCIL manufacture cables upto 1.1 KV for various applications covering most segments of users including industrial, utility and buildings. It caters to a wide spectrum of cable users in various industries like power, steel, cement, fertilizers and chemicals, refinery / petroleum and many others. Its clients are from diverse industries and include names such as BHEL, NTPC, Hindalco, ACC, HPCL, GAIL, TATA STEEL, Siemens, Honeywell, L&T, MRPL and others.
The book running lead manager to the issue is Collins Stewart Inga Private Limited.
Source: Moneycontrol.com
Public issue subscribed 4.99 times, as per NSE website. QIBs reserved portion subscribed 6.83 times, HNIs 5.11 times and retail 2.58 times.
The price band was between Rs 125 and Rs 135 per equity share. The equity shares are proposed to be listed on Bombay Stock Exchange and National Stock Exchange.
The public issue includes an employee reservation of 70,000 equity shares and the net issue to the public is 30,15,000 equity shares. The issue would constitute 27% of the fully diluted post-issue paid-up capital of the company and the net issue would constitute 26.38%.
At present, CCIL manufacture cables upto 1.1 KV for various applications covering most segments of users including industrial, utility and buildings. It caters to a wide spectrum of cable users in various industries like power, steel, cement, fertilizers and chemicals, refinery / petroleum and many others. Its clients are from diverse industries and include names such as BHEL, NTPC, Hindalco, ACC, HPCL, GAIL, TATA STEEL, Siemens, Honeywell, L&T, MRPL and others.
The book running lead manager to the issue is Collins Stewart Inga Private Limited.
Source: Moneycontrol.com
Subscribe to OnMobile Global IPO
Emkay Share and Stock Brokers has come out with research report on OnMobile Global IPO. The firm has recommended subscribing to the issue.
OnMobile Global, a leading provider of telecommunications value added software products and services in India with an expanding international presence, has opened for subscription with an initial public offering of 10,900,545 equity shares of Rs 10 each for cash at a price to determined through a book building process.
The issue will close for subscription on January 29, 2008. The price band has been fixed between Rs 425 and Rs 450 per equity share.
Emkay Share and Stock Brokers report on OnMobile Global IPO
OnMobile Global is a leading provider of telecom value added services (VAS) in India and is expanding its international presence, especially in the emerging markets of Asia. The company offers value added services such as ringback tones, voice portals, ringtone downloads, etc. to its carrier customers. OnMobile not only rides on the telecom growth with increasing subscribers, but also enables operators to protect their ARPUs by providing innovative services, thus generating a pull from them.
Service offerings
OnMobile's offerings include services like ringback tones, voicemail, missed call alerts, voice SMS, music solutions, information and entertainment solutions (stock alerts, sports & news updates, etc) interactive media solutions, m-commerce solutions (mobile ticketing, bill payment, etc) mobile marketing solutions, etc.
Strong customer base
OnMobile's customers include major telecom operators like Bharti Airtel, BSNL, Vodafone, Tata Teleservices, Reliance Communications and Idea Cellular in India. It also offers the services to international operators such as Sheba Telecom Bangladesh, Maxis Malaysia, BTEL and Indosat in Indonesia and SingTel Optus Australia and media companies like AOL, Disney, ESPN, etc.
Robust growth opportunity
The Indian mobile telecom industry is witnessing a robust growth, with the mobile subscribers increasing from 13mn in 2003 to 230mn in December 2007. The lower penetration (~20%), along with the falling handset prices and widening network coverage together provide huge potential for further growth in the mobile subscribers. With robust monthly subscriber additions, Gartner expects the mobile subscriber base to increase by a CAGR of 27% to 462mn by 2011.
While the mobile subscriber base is rapidly growing, the average revenue per user (ARPU) is consistently declining, provoking the mobile operators to find ways to generate higher ARPU thus making a strong business case for companies like OnMobile.
OnMobile's service offerings create new revenue sources for its customers primarily the telecom operators, who are desperately exploring ways to increase their ARPUs. OnMobile derives its revenues on a revenue sharing model from the revenues generated by the carriers using the value added services provided by the company. OnMobile's revenue share typically ranges between 15-40% averaging at 20-25%.
The rising demand for value added services along with the want of higher margins by the operators are the primary drivers for the growth in this segment. The value added services segment of the mobile sector in India is expected to grow at a 36% CAGR from Rs65bn in 2007 to Rs225bn in 2011. With the normal person-to-person (P2P) SMS contributing around 45-50% of the VAS market, the remaining 50-55% of the market is the target market for OnMobile.
Valuation & recommendation
With strong presence in the value added services market and very good relationships with carriers, OnMobile is likely to benefit from the growth in the Indian and international telecom markets. Considering the strong growth opportunity in Indian as well as international telecom markets, and healthy operating margins enjoyed by the company (~45%), we believe that OnMobile is poised for a robust revenue growth in excess of 50% over FY07-10E and an even higher earnings growth due to higher operating leverage. The company also has strong ROE and ROCE of over 30%, which is not only sustainable but also likely to improve. At upper end of the price band of Rs 450 per share, the stock is offered at around 10x EV/EBIDTA and 15x earnings for FY10E. Thus we recommend subscribe on the issue.
Concerns
* OnMobile's business depends on technological and product innovations. Inability to innovate new solutions that are accepted by the market could affect the future growth of the company.
* A reduction in the end-user pricing by the carrier customers could result in loss of revenues as the company primarily derives revenues on sharing arrangement with the carriers.
* OnMobile's major carrier customers operate in a regulated environment and any changes in regulation could affect the operations of the company.
Source: Moneycontrol.com
OnMobile Global, a leading provider of telecommunications value added software products and services in India with an expanding international presence, has opened for subscription with an initial public offering of 10,900,545 equity shares of Rs 10 each for cash at a price to determined through a book building process.
The issue will close for subscription on January 29, 2008. The price band has been fixed between Rs 425 and Rs 450 per equity share.
Emkay Share and Stock Brokers report on OnMobile Global IPO
OnMobile Global is a leading provider of telecom value added services (VAS) in India and is expanding its international presence, especially in the emerging markets of Asia. The company offers value added services such as ringback tones, voice portals, ringtone downloads, etc. to its carrier customers. OnMobile not only rides on the telecom growth with increasing subscribers, but also enables operators to protect their ARPUs by providing innovative services, thus generating a pull from them.
Service offerings
OnMobile's offerings include services like ringback tones, voicemail, missed call alerts, voice SMS, music solutions, information and entertainment solutions (stock alerts, sports & news updates, etc) interactive media solutions, m-commerce solutions (mobile ticketing, bill payment, etc) mobile marketing solutions, etc.
Strong customer base
OnMobile's customers include major telecom operators like Bharti Airtel, BSNL, Vodafone, Tata Teleservices, Reliance Communications and Idea Cellular in India. It also offers the services to international operators such as Sheba Telecom Bangladesh, Maxis Malaysia, BTEL and Indosat in Indonesia and SingTel Optus Australia and media companies like AOL, Disney, ESPN, etc.
Robust growth opportunity
The Indian mobile telecom industry is witnessing a robust growth, with the mobile subscribers increasing from 13mn in 2003 to 230mn in December 2007. The lower penetration (~20%), along with the falling handset prices and widening network coverage together provide huge potential for further growth in the mobile subscribers. With robust monthly subscriber additions, Gartner expects the mobile subscriber base to increase by a CAGR of 27% to 462mn by 2011.
While the mobile subscriber base is rapidly growing, the average revenue per user (ARPU) is consistently declining, provoking the mobile operators to find ways to generate higher ARPU thus making a strong business case for companies like OnMobile.
OnMobile's service offerings create new revenue sources for its customers primarily the telecom operators, who are desperately exploring ways to increase their ARPUs. OnMobile derives its revenues on a revenue sharing model from the revenues generated by the carriers using the value added services provided by the company. OnMobile's revenue share typically ranges between 15-40% averaging at 20-25%.
The rising demand for value added services along with the want of higher margins by the operators are the primary drivers for the growth in this segment. The value added services segment of the mobile sector in India is expected to grow at a 36% CAGR from Rs65bn in 2007 to Rs225bn in 2011. With the normal person-to-person (P2P) SMS contributing around 45-50% of the VAS market, the remaining 50-55% of the market is the target market for OnMobile.
Valuation & recommendation
With strong presence in the value added services market and very good relationships with carriers, OnMobile is likely to benefit from the growth in the Indian and international telecom markets. Considering the strong growth opportunity in Indian as well as international telecom markets, and healthy operating margins enjoyed by the company (~45%), we believe that OnMobile is poised for a robust revenue growth in excess of 50% over FY07-10E and an even higher earnings growth due to higher operating leverage. The company also has strong ROE and ROCE of over 30%, which is not only sustainable but also likely to improve. At upper end of the price band of Rs 450 per share, the stock is offered at around 10x EV/EBIDTA and 15x earnings for FY10E. Thus we recommend subscribe on the issue.
Concerns
* OnMobile's business depends on technological and product innovations. Inability to innovate new solutions that are accepted by the market could affect the future growth of the company.
* A reduction in the end-user pricing by the carrier customers could result in loss of revenues as the company primarily derives revenues on sharing arrangement with the carriers.
* OnMobile's major carrier customers operate in a regulated environment and any changes in regulation could affect the operations of the company.
Source: Moneycontrol.com
Apply for KNR Constructions IPO
Arihant Capital Markets has come out with research report on KNR Constructions IPO. The firm has recommended subscribing to the issue.
KNR Constructions, an infrastructure project development company, has opened for subscription with an initial public offering (IPO) of 7,874,570 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.
The issue will close for subscription on January 29, 2008. The price band has been fixed between Rs 170 and Rs 180 per equity share
Arihant Capital Markets report on KNR Constructions IPO
Investment Positive
Strong Order Book
Order book is considered an indicator of potential future performance since it represents a significant portion of the likely future revenue stream. The value of work remaining to be completed from order book as of November 30, 2007, was Rs 1733.82 crore. The current order book of the company is around 5.4x of the operational income for the period ended March 07 with an execution period of 24 – 30 months.
Currently the company has 25 projects on hand across various states in India covering Uttar Pradesh, Assam, Karnataka, Andhra Pradesh and Tamil Nadu. Most of the company’s road projects under execution are with their joint venture partner, Patel Engineering Ltd with whom they have a business association for the past 7 years.
Good clientele base
Most of KNRC’s clients are governmental agencies like the NHAI, and public works department under the State Governments of Andhra Pradesh, Madhya Pradesh, Karnataka, Tamil Nadu and Uttar Pradesh. They have also been executing projects, funded by multilateral agencies like World Bank and Asian Development Bank.
Expertise in sourcing and maintaining supply chain for raw material
One of the primary raw materials required for all road constructions projects is stone aggregate. KNRCL’s requirement is met out of boulders crushed through their own crushers at various sites. It enables to control the operating costs and the project execution period. Procurement from the captive quarries has also enabled an assured supply on a timely basis at reasonable prices.
Concerns
Competition
KNRCL operates in a competitive environment. While service quality, technical ability, performance record, experience, health and safety records and the availability of skilled personnel are key factors in client decisions among competitors, price is often the deciding factor in most tender awards. KNRC mainly competes with domestic Indian entities in the different segments in which they operate. Some of key competitors are MSK Projects Limited, Patel Engineering, Sadbhav Engineering Limited, and Madhucon Projects Limited.
Heavy dependence on road transportation engineering projects
As on September 30, 2007 revenues from road transportation-engineering segment has contributed to approximately 95% of the income from operations on consolidated basis. The balance order book of the Company as on November 30, 2007 also reflects substantial dependence of Company on the segment, 89.34% of the total balance order book position.
This segment is able to generate operating revenues of about 12.5%-13% on the upper side. Also KNRCL’s operations primarily comprise of contracts under the NHDP awarded by NHAI, which is a government agency and various State Governments. There may be delays associated with collection of receivables from the Government, Government owned or controlled entities. KNRCL also derives a major portion of the revenues from contracts, which they have/are jointly executed/executing with Patel Engineering Limited.
Valuations
The issue is priced at 23.94x FY07 earnings on post issue capital at floor price and at 25.35x at cap price.
Recommendation
With an order book of Rs 1734 crore for a period of 24 – 30 months which translates to 5.4x of FY 07 revenues, KNRCL seems to be well positioned to take advantage of the opportunities showing good growth prospects in the future.
Based on the valuations of 23.94x and 25.35x at a price band of 170 and 180 respectively the issue looks to be reasonably priced as compared to its peers. With the gearing up of infrastructural development, aggressive development plans and strong order book in hand we believe KNRCL is well poised to take advantage of the opportunity Also the current order book provides strong visibility for the future revenue growth of the company. We recommend our investors to subscribe to the issue with a long term view.
Source: Moneycontrol.com
KNR Constructions, an infrastructure project development company, has opened for subscription with an initial public offering (IPO) of 7,874,570 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.
The issue will close for subscription on January 29, 2008. The price band has been fixed between Rs 170 and Rs 180 per equity share
Arihant Capital Markets report on KNR Constructions IPO
Investment Positive
Strong Order Book
Order book is considered an indicator of potential future performance since it represents a significant portion of the likely future revenue stream. The value of work remaining to be completed from order book as of November 30, 2007, was Rs 1733.82 crore. The current order book of the company is around 5.4x of the operational income for the period ended March 07 with an execution period of 24 – 30 months.
Currently the company has 25 projects on hand across various states in India covering Uttar Pradesh, Assam, Karnataka, Andhra Pradesh and Tamil Nadu. Most of the company’s road projects under execution are with their joint venture partner, Patel Engineering Ltd with whom they have a business association for the past 7 years.
Good clientele base
Most of KNRC’s clients are governmental agencies like the NHAI, and public works department under the State Governments of Andhra Pradesh, Madhya Pradesh, Karnataka, Tamil Nadu and Uttar Pradesh. They have also been executing projects, funded by multilateral agencies like World Bank and Asian Development Bank.
Expertise in sourcing and maintaining supply chain for raw material
One of the primary raw materials required for all road constructions projects is stone aggregate. KNRCL’s requirement is met out of boulders crushed through their own crushers at various sites. It enables to control the operating costs and the project execution period. Procurement from the captive quarries has also enabled an assured supply on a timely basis at reasonable prices.
Concerns
Competition
KNRCL operates in a competitive environment. While service quality, technical ability, performance record, experience, health and safety records and the availability of skilled personnel are key factors in client decisions among competitors, price is often the deciding factor in most tender awards. KNRC mainly competes with domestic Indian entities in the different segments in which they operate. Some of key competitors are MSK Projects Limited, Patel Engineering, Sadbhav Engineering Limited, and Madhucon Projects Limited.
Heavy dependence on road transportation engineering projects
As on September 30, 2007 revenues from road transportation-engineering segment has contributed to approximately 95% of the income from operations on consolidated basis. The balance order book of the Company as on November 30, 2007 also reflects substantial dependence of Company on the segment, 89.34% of the total balance order book position.
This segment is able to generate operating revenues of about 12.5%-13% on the upper side. Also KNRCL’s operations primarily comprise of contracts under the NHDP awarded by NHAI, which is a government agency and various State Governments. There may be delays associated with collection of receivables from the Government, Government owned or controlled entities. KNRCL also derives a major portion of the revenues from contracts, which they have/are jointly executed/executing with Patel Engineering Limited.
Valuations
The issue is priced at 23.94x FY07 earnings on post issue capital at floor price and at 25.35x at cap price.
Recommendation
With an order book of Rs 1734 crore for a period of 24 – 30 months which translates to 5.4x of FY 07 revenues, KNRCL seems to be well positioned to take advantage of the opportunities showing good growth prospects in the future.
Based on the valuations of 23.94x and 25.35x at a price band of 170 and 180 respectively the issue looks to be reasonably priced as compared to its peers. With the gearing up of infrastructural development, aggressive development plans and strong order book in hand we believe KNRCL is well poised to take advantage of the opportunity Also the current order book provides strong visibility for the future revenue growth of the company. We recommend our investors to subscribe to the issue with a long term view.
Source: Moneycontrol.com
Future Capital Holdings to list on February 1
The first public issue of calendar 2008, Future Capital Holdings (FCHL), the financial services arm of the Future Group, will create several records when it lists on the stock exchanges on February 1, within 11 working days from the day of issue closing.
The company and the registrars will start sending out the refunds from January 29, which is eight working days from the day of issue closing.
The company has set the tone for speedy process of refunds by reducing the time-lag for the refund process for IPOs in calendar 2008.
Due to the speedy process, an amount of Rs 16,000 crore will be pumped back into the market and the liquidity will improve
The company had fixed the issue price at Rs 765 per equity share (upper end of the price band) for its initial public offering (IPO) of 6,422,800 equity shares of Rs 10 each for cash at the above price decided through a 100% book-building process.
The issue had opened for subscription on January 11, 2008, and closed on January 16, 2008. According to the preliminary data obtained from the stock exchanges, the issue was subscribed to approximately around 133 times (Source: NSE website). The qualified institutional bidders portion was subscribed to approximately around 180 times; the non institutional investors portion 84 times; and the retail portion 55 times. The public issue received more than 11.71 lakh applications and bids for 85.7 crore equity shares as against 6.422 million shares on offer.
The equity shares are proposed to be listed on Bombay Stock Exchange and the National Stock Exchange. The issue constitutes 10.16% of the post-issue paid-up capital of the company.
The book running lead managers to the issue are Kotak Mahindra Capital Company Limited, Enam Securities Private Limited, JM Financial Consultants Private Limited and UBS Securities India Private Limited.
Source: Moneycontrol.com
The company and the registrars will start sending out the refunds from January 29, which is eight working days from the day of issue closing.
The company has set the tone for speedy process of refunds by reducing the time-lag for the refund process for IPOs in calendar 2008.
Due to the speedy process, an amount of Rs 16,000 crore will be pumped back into the market and the liquidity will improve
The company had fixed the issue price at Rs 765 per equity share (upper end of the price band) for its initial public offering (IPO) of 6,422,800 equity shares of Rs 10 each for cash at the above price decided through a 100% book-building process.
The issue had opened for subscription on January 11, 2008, and closed on January 16, 2008. According to the preliminary data obtained from the stock exchanges, the issue was subscribed to approximately around 133 times (Source: NSE website). The qualified institutional bidders portion was subscribed to approximately around 180 times; the non institutional investors portion 84 times; and the retail portion 55 times. The public issue received more than 11.71 lakh applications and bids for 85.7 crore equity shares as against 6.422 million shares on offer.
The equity shares are proposed to be listed on Bombay Stock Exchange and the National Stock Exchange. The issue constitutes 10.16% of the post-issue paid-up capital of the company.
The book running lead managers to the issue are Kotak Mahindra Capital Company Limited, Enam Securities Private Limited, JM Financial Consultants Private Limited and UBS Securities India Private Limited.
Source: Moneycontrol.com
Wednesday, January 23, 2008
IPO Grey Market Rates Date : 23rd January 2008
Latest IPO Grey Market Premium Rates :-
Future Capital Holding- 380 to 400
Reliance Power- 180 to 200
Emaar MGF- 250 to 275
J. Kumar Infra Projects- 10 to 12
Cords Cable Ind.- 12 to 15
Bang Overseas- 30 to 35
IRB Infra- 25 to 35
Future Capital Holding- 380 to 400
Reliance Power- 180 to 200
Emaar MGF- 250 to 275
J. Kumar Infra Projects- 10 to 12
Cords Cable Ind.- 12 to 15
Bang Overseas- 30 to 35
IRB Infra- 25 to 35
IRB Infra IPO opens on Jan 31, price band Rs 185-220
IRB Infrastructure Developers, an infrastructure and construction company in India with extensive experience in the roads and highways sector and currently involved in 12 BOT projects in this sector, proposes to enter the capital markets on January 31, 2008 with a public issue of 5,10,57,666 equity shares of Rs 10 each through 100% book building process.
This includes reservation of up to 125,000 equity shares for subscription by eligible employees. The issue closes on February 5, 2008 and the price band has been fixed at Rs 185 to Rs 220 per equity share of Rs 10 each.
The issue will constitute 15.36% of the fully diluted post-issue equity share capital of the company. The equity shares are proposed to be listed on the BSE and the NSE. The company filed a red herring prospectus with the registrar of companies on January 14, 2008 .
The issue has been assigned a grade of 4/5 by Fitch Ratings India Private Limited, indicating that the fundamentals of the issue are above average, relative to other listed equity shares in India. Deutsche Equities India Private Ltd is the sole global coordinator and BRLM for the issue and Kotak Mahindra Capital Co. Ltd is the Co-BRLM for the issue.
The company proposes to utilize the net proceeds of the issue for investment in subsidiary IDAA; prepayment and repayment of existing loans of the company and the subsidiaries Aryan Toll Road Pvt. Ltd, Modern Road Makers Pvt. Ltd, Thane Ghodbunder Toll Road Pvt. Ltd, NKT Road & Toll Pvt. Ltd and Mhaiskar Infrastructure Pvt. Ltd.
Currently, the company's shareholders include amongst others Deutsche Bank AG, Hong Kong Branch, Jade Dragon (Mauritius) Limited, and CPI Ballpark Investments Limited. Jade Dragon (Mauritius) Limited and CPI Ballpark Investments Limited are subsidiaries of Goldman Sachs and Merrill Lynch, respectively.
IRB Infrastructure Developers is currently involved in 12 BOT projects in the roads and highways sector. Out of these projects, 11 projects are in the operational phase, i.e., engineering, procurement and construction phases have been completed on these projects and the project SPVs are currently earning revenues from toll collection under the relevant concession agreements.
Among these completed projects one of the project is the concession rights to the Mumbai - Pune Corridor including the Mumbai Pune Expressway upto August 2019. One of the BOT projects involves four to six laning under NHDP Phase V on the Bharuch to Surat section of NH 8 project granted by NHAI in July 2006 to IDAA, one of its SPVs. is in the "under - construction" phase. Currently, the company's land reserves consist of approximately 925 acres of land in the Mauje Taje and Mauje Pimploli Taluka in Pune district, and it intends to acquire an additional approximately 475 acres of land for its proposed township project.
In fiscal 2007, the consolidated total income of the company was Rs 325.08 crore and it earned consolidated net profit, as restated, of Rs 29.96 crore. In the five months ended August 31, 2007, consolidated total income was Rs 285.26 crore and it earned consolidated net profit, as restated, of Rs 36.38 crore in this period.
Source: Moneycontrol.com
This includes reservation of up to 125,000 equity shares for subscription by eligible employees. The issue closes on February 5, 2008 and the price band has been fixed at Rs 185 to Rs 220 per equity share of Rs 10 each.
The issue will constitute 15.36% of the fully diluted post-issue equity share capital of the company. The equity shares are proposed to be listed on the BSE and the NSE. The company filed a red herring prospectus with the registrar of companies on January 14, 2008 .
The issue has been assigned a grade of 4/5 by Fitch Ratings India Private Limited, indicating that the fundamentals of the issue are above average, relative to other listed equity shares in India. Deutsche Equities India Private Ltd is the sole global coordinator and BRLM for the issue and Kotak Mahindra Capital Co. Ltd is the Co-BRLM for the issue.
The company proposes to utilize the net proceeds of the issue for investment in subsidiary IDAA; prepayment and repayment of existing loans of the company and the subsidiaries Aryan Toll Road Pvt. Ltd, Modern Road Makers Pvt. Ltd, Thane Ghodbunder Toll Road Pvt. Ltd, NKT Road & Toll Pvt. Ltd and Mhaiskar Infrastructure Pvt. Ltd.
Currently, the company's shareholders include amongst others Deutsche Bank AG, Hong Kong Branch, Jade Dragon (Mauritius) Limited, and CPI Ballpark Investments Limited. Jade Dragon (Mauritius) Limited and CPI Ballpark Investments Limited are subsidiaries of Goldman Sachs and Merrill Lynch, respectively.
IRB Infrastructure Developers is currently involved in 12 BOT projects in the roads and highways sector. Out of these projects, 11 projects are in the operational phase, i.e., engineering, procurement and construction phases have been completed on these projects and the project SPVs are currently earning revenues from toll collection under the relevant concession agreements.
Among these completed projects one of the project is the concession rights to the Mumbai - Pune Corridor including the Mumbai Pune Expressway upto August 2019. One of the BOT projects involves four to six laning under NHDP Phase V on the Bharuch to Surat section of NH 8 project granted by NHAI in July 2006 to IDAA, one of its SPVs. is in the "under - construction" phase. Currently, the company's land reserves consist of approximately 925 acres of land in the Mauje Taje and Mauje Pimploli Taluka in Pune district, and it intends to acquire an additional approximately 475 acres of land for its proposed township project.
In fiscal 2007, the consolidated total income of the company was Rs 325.08 crore and it earned consolidated net profit, as restated, of Rs 29.96 crore. In the five months ended August 31, 2007, consolidated total income was Rs 285.26 crore and it earned consolidated net profit, as restated, of Rs 36.38 crore in this period.
Source: Moneycontrol.com
J Kumar Infraprojects IPO subscribed fully
The initial public offer of J Kumar Infraprojects (JKIL), a civil engineering and infrastructure development company, has managed to get subscribed fully on last day of subscription as it was subscribed just 0.17 times till yesterday due to negative sentiment in markets.
The issue has subscribed 2.17 times till 6 pm, according to NSE website and received bids for 1.41 crore shares as against 65 lakh shares on offer.
The issue closed for subscription. The price band is between Rs 110 and Rs 120 per equity share.
As on November 30, 2007, the company's order book, which includes some uncommenced projects and the unfinished and uncertified portions of the commenced projects, was Rs 461.15 crore. The proceeds from this issue are intended to be deployed for the purchase of capital equipments and for funding working capital requirements.
The company's core areas of expertise in the construction of infrastructure projects include: Transportation Engineering, Civil Construction, Irrigation Projects and Piling work using hydraulic piling rigs.
The sole book running lead manager to the issue is Anand Rathi Securities Limited
Source: Moneycontrol.com
The issue has subscribed 2.17 times till 6 pm, according to NSE website and received bids for 1.41 crore shares as against 65 lakh shares on offer.
The issue closed for subscription. The price band is between Rs 110 and Rs 120 per equity share.
As on November 30, 2007, the company's order book, which includes some uncommenced projects and the unfinished and uncertified portions of the commenced projects, was Rs 461.15 crore. The proceeds from this issue are intended to be deployed for the purchase of capital equipments and for funding working capital requirements.
The company's core areas of expertise in the construction of infrastructure projects include: Transportation Engineering, Civil Construction, Irrigation Projects and Piling work using hydraulic piling rigs.
The sole book running lead manager to the issue is Anand Rathi Securities Limited
Source: Moneycontrol.com
Saturday, January 19, 2008
Rel Power IPO subscribed 73x; gets bids of Rs 7.5 lk cr
The initial public offer of Reliance Power, Anil Dhirubhai Ambani Group Company, has received an excellent response since day one despite negative sentiment in markets as well as across the globe. The issue subscribed 73.04 times and received bids worth about Rs 7.5 lakh crore.
The reserve portion of QIBs subscribed 83 times and non institutional investors 190 times and retail nearly 15 times.
The issue received bids for 16.65 billion equity shares as against 22.8 crore shares on offer.
The price band is between Rs 405-450 per share. The company is likely to raise more than Rs 10000 crore from this public issue excluding promoters’ contribution.
Source: Moneycontrol.com
The reserve portion of QIBs subscribed 83 times and non institutional investors 190 times and retail nearly 15 times.
The issue received bids for 16.65 billion equity shares as against 22.8 crore shares on offer.
The price band is between Rs 405-450 per share. The company is likely to raise more than Rs 10000 crore from this public issue excluding promoters’ contribution.
Source: Moneycontrol.com
Good IPOs will continue to get good response
USD 190 billion is the demand for the USD 2.5 billion Reliance Power IPO and it is a record for the Indian markets.
The issue, which closed today, has attracted a whopping USD 190 billion. It has been subscribed 72.5 times, with the QIB portion being subscribed 80 times. The HNI portion has been subscribed 200 times and the retail portion has been subscribed 15 times.
The issue has broken the record set when Mukesh Ambani's Reliance Petroleum tapped the capital markets. The retail portion of the IPO has seen 45 lakh applications, more than double the 21 lakh applications garnered by the Reliance Petroleum IPO’s retail portion.
Speaking to CNBC-TV18, Vallabh Bhansali, Chairman, Enam said that they were slightly surprised by the overwhelming response. He added that the response has come on the face of some of the worst markets seen in recent times. According to Bhansali, good IPOs are priced well and will continue to receive good response.
Excerpts from CNBC-TV18’s exclusive interview with Vallabh Bhansali:
Q: Were you slightly surprised, especially by the kind of response seen from HNI?
A: We were all surprised by the overwhelming response in each of the categories. We were absolutely overwhelmed.
Q: Where has the demand come from? Could you give us a slightly more detailed breakdown?
A: It has come from every nook and corner, from institutional investor of every shade. It has come from every investor around the country. It has come from HNIs and corporates and every kind of investor one could think of. This has come very significantly on the face of some of the worst markets that we have seen in recent times.
Q: Around USD 1.5 billion was withdrawn, by foreign investors, in the last three days. That is USD 133 billion in market cap wiped out in a week, not quite the best conditions for this and many more IPOs that are lined up. What is your thought on the environment?
A: We have to reckon with this environment. I think people are conscious that the US is going through a difficult phase and it has to have an effect on global markets. But one does not know on what week, day and hour, when this trouble strikes. I think it just so happened that it has been striking this week.
I do think that India is a very good story, wherever these stocks had run-up. So, maybe there is a correction. But the good IPOs priced well and will continue to receive good response.
Q: We have seen foreign institutional investors withdrawing large sums of money in the last three trading sessions. Now we know what is going on in the US. But how optimistic are you that this is just a correction and we will see money coming back into India?
A: The result season is still not over; it has just started. I think the results, starting with the technology results, have been good and will continue to be the main plank, which will attract money. We are seeing some slowdown in some areas of the economy, but the services sector continues to be very strong.
The market has been very intelligent, in terms of punishing stocks, wherever the rally was unsustainable. Therefore, for the last several days, we have seen some categories of stocks go down continuously, even when the broader market was rallying.
So, you are seeing intelligence at play. You are not seeing extraordinary panic or hurt behaviour beyond a point. This is a market, which is driven largely by retail. That is a cause of worry, but it also corrects itself as it has.
So, all in all, the fundamentals of India continue to remain strong, even if industrial production seems to be slowing down for a while. It is the relative attractiveness of India, compared to lot of other markets in the world and that will continue to be the theme.
Q: Were there any anxious moments? We saw the markets correcting and correcting so sharply just when the IPO opened?
A: I think we had some anxious moments, at some point of time, whether the panic will reach to the FIIs particularly and would there be any withdrawals. But that was only internal because over the last night, when the global markets were not really giving great comfort, we saw continuous and sustained interest of FIIs.
On January 18, as soon as the day opened, we were able to get large orders into the book. I believe other lead managers do the same thing. So, the anxious moments were really more in our mind. There was no evidence of any withdrawal, at any point of time, in any segment. So, this has been an extraordinary overwhelming experience.
Q: Initially you talked about the impact of the global market meltdown on the IPO pipeline. Do you actually see the IPO pipeline drying up for the moment, if the situation does not improve?
A: Some times what happens is that if you see quality companies come to the market, people reserve the money for the IPO market, rather than put it in the secondary market. Sometimes they withdraw that money because in the IPO market, particularly in QIPs, people see good prospects of getting the allocation that they want.
So, there is difficulty in the market and the pricing has to be attractive for the IPOs to succeed. But we have seen the demand for Future Capital and we have seen extraordinary demand for Reliance Power, in the face of these markets.
Therefore, one likes to think that there is a discerning decision or discerning mechanism in play and people are trying to buy good companies for the long-term and withdraw from segments and stocks, that they see as overpriced in this market.
Q: Are you are expecting a record breaking opening as well?
A: Why not.
Source: Moneycontrol.com
The issue, which closed today, has attracted a whopping USD 190 billion. It has been subscribed 72.5 times, with the QIB portion being subscribed 80 times. The HNI portion has been subscribed 200 times and the retail portion has been subscribed 15 times.
The issue has broken the record set when Mukesh Ambani's Reliance Petroleum tapped the capital markets. The retail portion of the IPO has seen 45 lakh applications, more than double the 21 lakh applications garnered by the Reliance Petroleum IPO’s retail portion.
Speaking to CNBC-TV18, Vallabh Bhansali, Chairman, Enam said that they were slightly surprised by the overwhelming response. He added that the response has come on the face of some of the worst markets seen in recent times. According to Bhansali, good IPOs are priced well and will continue to receive good response.
Excerpts from CNBC-TV18’s exclusive interview with Vallabh Bhansali:
Q: Were you slightly surprised, especially by the kind of response seen from HNI?
A: We were all surprised by the overwhelming response in each of the categories. We were absolutely overwhelmed.
Q: Where has the demand come from? Could you give us a slightly more detailed breakdown?
A: It has come from every nook and corner, from institutional investor of every shade. It has come from every investor around the country. It has come from HNIs and corporates and every kind of investor one could think of. This has come very significantly on the face of some of the worst markets that we have seen in recent times.
Q: Around USD 1.5 billion was withdrawn, by foreign investors, in the last three days. That is USD 133 billion in market cap wiped out in a week, not quite the best conditions for this and many more IPOs that are lined up. What is your thought on the environment?
A: We have to reckon with this environment. I think people are conscious that the US is going through a difficult phase and it has to have an effect on global markets. But one does not know on what week, day and hour, when this trouble strikes. I think it just so happened that it has been striking this week.
I do think that India is a very good story, wherever these stocks had run-up. So, maybe there is a correction. But the good IPOs priced well and will continue to receive good response.
Q: We have seen foreign institutional investors withdrawing large sums of money in the last three trading sessions. Now we know what is going on in the US. But how optimistic are you that this is just a correction and we will see money coming back into India?
A: The result season is still not over; it has just started. I think the results, starting with the technology results, have been good and will continue to be the main plank, which will attract money. We are seeing some slowdown in some areas of the economy, but the services sector continues to be very strong.
The market has been very intelligent, in terms of punishing stocks, wherever the rally was unsustainable. Therefore, for the last several days, we have seen some categories of stocks go down continuously, even when the broader market was rallying.
So, you are seeing intelligence at play. You are not seeing extraordinary panic or hurt behaviour beyond a point. This is a market, which is driven largely by retail. That is a cause of worry, but it also corrects itself as it has.
So, all in all, the fundamentals of India continue to remain strong, even if industrial production seems to be slowing down for a while. It is the relative attractiveness of India, compared to lot of other markets in the world and that will continue to be the theme.
Q: Were there any anxious moments? We saw the markets correcting and correcting so sharply just when the IPO opened?
A: I think we had some anxious moments, at some point of time, whether the panic will reach to the FIIs particularly and would there be any withdrawals. But that was only internal because over the last night, when the global markets were not really giving great comfort, we saw continuous and sustained interest of FIIs.
On January 18, as soon as the day opened, we were able to get large orders into the book. I believe other lead managers do the same thing. So, the anxious moments were really more in our mind. There was no evidence of any withdrawal, at any point of time, in any segment. So, this has been an extraordinary overwhelming experience.
Q: Initially you talked about the impact of the global market meltdown on the IPO pipeline. Do you actually see the IPO pipeline drying up for the moment, if the situation does not improve?
A: Some times what happens is that if you see quality companies come to the market, people reserve the money for the IPO market, rather than put it in the secondary market. Sometimes they withdraw that money because in the IPO market, particularly in QIPs, people see good prospects of getting the allocation that they want.
So, there is difficulty in the market and the pricing has to be attractive for the IPOs to succeed. But we have seen the demand for Future Capital and we have seen extraordinary demand for Reliance Power, in the face of these markets.
Therefore, one likes to think that there is a discerning decision or discerning mechanism in play and people are trying to buy good companies for the long-term and withdraw from segments and stocks, that they see as overpriced in this market.
Q: Are you are expecting a record breaking opening as well?
A: Why not.
Source: Moneycontrol.com
Enam, JM Fin, Kotak top money collectors in R Power IPO
Anil Dhirubhai Ambani Group’s first IPO, Reliance Power has set a record in primary market history. The issue received bids worth about Rs 7.5 lakh crore (nearly USD 188 billion) and subscribed 73.04 times, according to data available on the NSE website. It got bids for 16.65 billion equity shares as against 22.8 crore shares on offer.
Enam Securities, one of the book running lead managers for the issue, has become the top procurer in Reliance Power IPO book. It has collected about $ 32 billion of the total money, reports CNBC-TV18.
JM Financial, which topped the second spot in the money collection, whose share at 24.31% with $ 30.9 billion followed by Kotak Mahindra Capital share at 12.30% ($ 15.64 billion), Deutsche Equities at 10.93%($ 13.9 bn), UBS Securities share at 9.91% ($ 12.59 bn), ABN AMRO share at 9.12% ($ 11.6 bn) and JP Morgan at 5.09% ($ 6.47 bn).
Others are ICICI Securities, SBI Capital Markets and Macquarie India, whose share at 2.97% ($ 3.78 billion), 1.67% ($ 2.13 bn) and 0.96% ($ 1.22 bn), respectively.
LIC, Soros (Quantum), Merrill Lynch and JP Morgan have bid $ 1.6 billion worth of shares each.
Qualified institutional investors’ reserved portion of 60% subscribed 83 times followed by 15 times subscription in retail category. Non-institutional investors’ category got subscribed 190 times, which is as per analysts’ expectations.
The issue has broken the record set when Mukesh Ambani's Reliance Petroleum tapped the capital markets. The retail portion of the Reliance Power IPO has seen 45 lakh applications - more than double the 21 lakh applications garnered by the Reliance Petroleum IPOo's retail portion.
Source: Moneycontrol.com
Enam Securities, one of the book running lead managers for the issue, has become the top procurer in Reliance Power IPO book. It has collected about $ 32 billion of the total money, reports CNBC-TV18.
JM Financial, which topped the second spot in the money collection, whose share at 24.31% with $ 30.9 billion followed by Kotak Mahindra Capital share at 12.30% ($ 15.64 billion), Deutsche Equities at 10.93%($ 13.9 bn), UBS Securities share at 9.91% ($ 12.59 bn), ABN AMRO share at 9.12% ($ 11.6 bn) and JP Morgan at 5.09% ($ 6.47 bn).
Others are ICICI Securities, SBI Capital Markets and Macquarie India, whose share at 2.97% ($ 3.78 billion), 1.67% ($ 2.13 bn) and 0.96% ($ 1.22 bn), respectively.
LIC, Soros (Quantum), Merrill Lynch and JP Morgan have bid $ 1.6 billion worth of shares each.
Qualified institutional investors’ reserved portion of 60% subscribed 83 times followed by 15 times subscription in retail category. Non-institutional investors’ category got subscribed 190 times, which is as per analysts’ expectations.
The issue has broken the record set when Mukesh Ambani's Reliance Petroleum tapped the capital markets. The retail portion of the Reliance Power IPO has seen 45 lakh applications - more than double the 21 lakh applications garnered by the Reliance Petroleum IPOo's retail portion.
Source: Moneycontrol.com
Friday, January 18, 2008
IPO Grey market prices Dt: 17th Jan. 2008
Latest Grey market prices are:
IPO Issue Price GMP
Cords 125 - 135 30 - 32
Emaar 725 - 850 350 - 375
Future 700 - 765 550 - 575
J. Kumar 110 - 120 25 - 30
Reliance 405 - 450 275 - 300
"HAPPY INVESTMENT-SAFE INVESTMENT"
IPO Issue Price GMP
Cords 125 - 135 30 - 32
Emaar 725 - 850 350 - 375
Future 700 - 765 550 - 575
J. Kumar 110 - 120 25 - 30
Reliance 405 - 450 275 - 300
"HAPPY INVESTMENT-SAFE INVESTMENT"
Thursday, January 17, 2008
Rel Power IPO subscribed 23x; gets bids of Rs 2.34 lk cr
Reliance Power, Anil Dhirubhai Ambani Group Company, has opened for subscription with an initial public offering of 22.8 crore shares at a price band of Rs 405-450 per share. The company is likely to raise more than Rs 10000 crore from this public issue excluding promoters’ contribution.
Public issue has subscribed 22.84 times and received bids worth more than Rs 2.34 lakh crore (USD 59.7 billion).
Reliance Power received over 22 lakh retail applications for its public issue. QIBs reserved portion subscribed nearly 33 times followed by 6 times subscription in retail category.
The issue received bids for 5.2 billion equity shares as against 22.8 crore shares on offer.
Source: Moneycontrol.com
Public issue has subscribed 22.84 times and received bids worth more than Rs 2.34 lakh crore (USD 59.7 billion).
Reliance Power received over 22 lakh retail applications for its public issue. QIBs reserved portion subscribed nearly 33 times followed by 6 times subscription in retail category.
The issue received bids for 5.2 billion equity shares as against 22.8 crore shares on offer.
Source: Moneycontrol.com
Wednesday, January 16, 2008
Subscribe to Rel Power with long term view
Keynote Capitals has come out with research report on Reliance Power IPO. The firm has recommended subscribing to the issue with a long term view.
The initial public offer of Reliance Power, ADAG group company, has opened for subscription today. The company is offering 22.8 crore equity shares through this issue in the price band of Rs 405-450 per share and raising nearly Rs 10530-11700 crore (USD 2.67- 2.97 billion).
The issue will close for subscription on January 18, 2008. Net issue would constitute 10.1% of post issue paid up capital of the company.
Keynote Capitals report on Reliance Power IPO
Recommendation - Subscribe with a long term view
* Reliance Power, part of RADAG has been set up to develop, construct and operate power projects domestically and internationally. It aims to develop 13 power projects with an aggregated generation capacity of 28,200 MW.
* Reliance Power will have a diversified project portfolio in terms of geography, fuel mix and technology.
* Nine of the proposed thirteen projects are coal-fired or gas-based and two of those have fuel security; the rest are yet to be finalised. In our view, for such huge capacity, fuel linkage is of paramount importance
* Long term PPAs for 8,560MW have been signed, constituting just 32% of the aggregated generating capacity. Of these, Sasan project (based on domestically procured coal) and Krishnapatnam project (based on imported coal) have been signed at a tariff of Rs1.19kw/h and 2.33kw/h per unit respectively, the differential attributable to the high cost of imported coal. A large number of PPAs are yet to be signed, reflecting some ambiguity on profitability.
* We believe equipment sourcing will be critical for Reliance Power being able to commission projects on schedule. Other key factors, apart from capital costs, are timely deliveries of equipment and maintenance costs.
* We believe the Group can draw synergies from the expertise of Reliance Energy in EPC in executing projects of Reliance Power.
* Our concerns include lack of fuel linkages except for 2 projects, coal prices and gas and equipment availability. Also in view of the gap between the aggregate project outlay of Rs 1,12,129 crore and post-IPO net worth of Rs 13,707 crore, we believe Reliance Power may have to opt for further equity dilution going forward, in order to maintain a manageable debt-equity ratio going forward.
* While the high promoter holding of around 90% post-listing is a positive, it may be viewed negatively from the point of view of minority shareholders, since the latter will enter the company @ Rs450 per share vis-à-vis promoters’ average cost of Rs 16.92 per share.
* Given the long gestation period of projects, which are likely to get commissioned from FY10 onwards, we have considered non-earnings related valuation parameters. The valuation of the IPO in terms of price/book (7.4x FY08E) appears expensive vis-à-vis NTPC (2.8x) and Tata Power (4.5x).
* The issue appears expensive, also on the basis of asset valuation (estimated valuation of generating capacity) in FY13. It is only on the basis of FY17 estimates, that the issue looks attractive.
* However, we believe the aggression and track record of the promoter group in shareholder wealth creation in all its businesses including telecommunications, power distribution, financial services and entertainment is likely to have a positive rub-off effect on this IPO as well. We therefore recommend investors to subscribe to the IPO from a long-term point of view.
Source: Moneycontrol.com
The initial public offer of Reliance Power, ADAG group company, has opened for subscription today. The company is offering 22.8 crore equity shares through this issue in the price band of Rs 405-450 per share and raising nearly Rs 10530-11700 crore (USD 2.67- 2.97 billion).
The issue will close for subscription on January 18, 2008. Net issue would constitute 10.1% of post issue paid up capital of the company.
Keynote Capitals report on Reliance Power IPO
Recommendation - Subscribe with a long term view
* Reliance Power, part of RADAG has been set up to develop, construct and operate power projects domestically and internationally. It aims to develop 13 power projects with an aggregated generation capacity of 28,200 MW.
* Reliance Power will have a diversified project portfolio in terms of geography, fuel mix and technology.
* Nine of the proposed thirteen projects are coal-fired or gas-based and two of those have fuel security; the rest are yet to be finalised. In our view, for such huge capacity, fuel linkage is of paramount importance
* Long term PPAs for 8,560MW have been signed, constituting just 32% of the aggregated generating capacity. Of these, Sasan project (based on domestically procured coal) and Krishnapatnam project (based on imported coal) have been signed at a tariff of Rs1.19kw/h and 2.33kw/h per unit respectively, the differential attributable to the high cost of imported coal. A large number of PPAs are yet to be signed, reflecting some ambiguity on profitability.
* We believe equipment sourcing will be critical for Reliance Power being able to commission projects on schedule. Other key factors, apart from capital costs, are timely deliveries of equipment and maintenance costs.
* We believe the Group can draw synergies from the expertise of Reliance Energy in EPC in executing projects of Reliance Power.
* Our concerns include lack of fuel linkages except for 2 projects, coal prices and gas and equipment availability. Also in view of the gap between the aggregate project outlay of Rs 1,12,129 crore and post-IPO net worth of Rs 13,707 crore, we believe Reliance Power may have to opt for further equity dilution going forward, in order to maintain a manageable debt-equity ratio going forward.
* While the high promoter holding of around 90% post-listing is a positive, it may be viewed negatively from the point of view of minority shareholders, since the latter will enter the company @ Rs450 per share vis-à-vis promoters’ average cost of Rs 16.92 per share.
* Given the long gestation period of projects, which are likely to get commissioned from FY10 onwards, we have considered non-earnings related valuation parameters. The valuation of the IPO in terms of price/book (7.4x FY08E) appears expensive vis-à-vis NTPC (2.8x) and Tata Power (4.5x).
* The issue appears expensive, also on the basis of asset valuation (estimated valuation of generating capacity) in FY13. It is only on the basis of FY17 estimates, that the issue looks attractive.
* However, we believe the aggression and track record of the promoter group in shareholder wealth creation in all its businesses including telecommunications, power distribution, financial services and entertainment is likely to have a positive rub-off effect on this IPO as well. We therefore recommend investors to subscribe to the IPO from a long-term point of view.
Source: Moneycontrol.com
Electrifying response to Rel Power IPO
It has been an electrifying response since day one for Reliance Power IPO, which has subscribed 13.85 times, till 5 pm, as per data available on NSE website. Maximum bids are at Rs 450 per share, a higher end of band Rs 405-450.
More than 10 lakh forms have been received from retail investors for Reliance Power IPO.
Issue received bids for 3.15 billion shares as against 26 crore shares on offer and that bids worth more than Rs 1.4 lakh crore.
Till yesterday, qualified institutional investors' reserved portion subscribed 16.2 times followed by 7 times subscription in HNIs category. Mild respone has seen from retail investors.
The initial public offer of Reliance Power, ADAG group company, has opened for subscription. The company is offering 26 crore equity shares through this issue in the price band of Rs 405-450 per share and raising nearly Rs 10530-11700 crore (USD 2.67- 2.97 billion).
Net issue to the public is of 22.8 crore shares and will raise between Rs 9234 – 10260 crore from the public. Promoters have pumped in Rs 1440 crore yesterday at Rs 450 per share as against 3.2 crore shares.
The issue will close for subscription on January 18, 2008. Net issue would constitute 10.1% of post issue paid up capital of the company. Shares outstanding post issue would be 226 crore shares. Market cap of the company would be Rs 91530–Rs 101700 crore (USD 23.23 – 25.8 billion).
Power generation company has 13 projects, out of which 6 are under development now.
* 7 coal based projects - 14,620 MW
* 2 gas bsed - 10,280 MW from KG basin
* 4 Hydroelectric projects – 3300 MW
Company intends to use IPO money for part financing power subsidiaries, which are pursuing 13 power generation projects. Out of which, 11 projects are to developed by nine subsidiaries; one is being directly executed by Reliance Power and one project under subsidiary is yet to be transferred. Rest of the money will be used for general corporate purposes and to get benefit of listing.
Source: Moneycontrol.com
More than 10 lakh forms have been received from retail investors for Reliance Power IPO.
Issue received bids for 3.15 billion shares as against 26 crore shares on offer and that bids worth more than Rs 1.4 lakh crore.
Till yesterday, qualified institutional investors' reserved portion subscribed 16.2 times followed by 7 times subscription in HNIs category. Mild respone has seen from retail investors.
The initial public offer of Reliance Power, ADAG group company, has opened for subscription. The company is offering 26 crore equity shares through this issue in the price band of Rs 405-450 per share and raising nearly Rs 10530-11700 crore (USD 2.67- 2.97 billion).
Net issue to the public is of 22.8 crore shares and will raise between Rs 9234 – 10260 crore from the public. Promoters have pumped in Rs 1440 crore yesterday at Rs 450 per share as against 3.2 crore shares.
The issue will close for subscription on January 18, 2008. Net issue would constitute 10.1% of post issue paid up capital of the company. Shares outstanding post issue would be 226 crore shares. Market cap of the company would be Rs 91530–Rs 101700 crore (USD 23.23 – 25.8 billion).
Power generation company has 13 projects, out of which 6 are under development now.
* 7 coal based projects - 14,620 MW
* 2 gas bsed - 10,280 MW from KG basin
* 4 Hydroelectric projects – 3300 MW
Company intends to use IPO money for part financing power subsidiaries, which are pursuing 13 power generation projects. Out of which, 11 projects are to developed by nine subsidiaries; one is being directly executed by Reliance Power and one project under subsidiary is yet to be transferred. Rest of the money will be used for general corporate purposes and to get benefit of listing.
Source: Moneycontrol.com
Future Capital IPO oversubscribed 131 times
The initial public offer of Kishore Biyani-led Future Capital Holdings has been receiving overwhelming response since day one. Its issue has subscribed 131.01 times, till 6 pm, according to NSE website.
Public issue received bids for 84.15 crore equity shares as against 64.22 lakh shares on offer.
Major response was seen from qualified institutional investors, whose reserved portion subscribed 106.26 times followed by 26.56 times in retail and 32.50 times in HNIs category, till 1 pm.
The public offer expects to raise up to Rs 490 crore. The proceeds would be deployed in the company's consumer credit business -- Future Money -- which was launched in June 2007.
The price band for the IPO is between Rs 700-Rs 765. The equity shares are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.
The issue would constitute 10.16 per cent of the post-issue paid-up capital of the company.
Kotak Mahindra Capital Company Ltd, Enam Securities, JM Financial Consultants Pvt Ltd and UBS Securities India are the book-running lead manager to the issue.
Source: Moneycontrol.com
Public issue received bids for 84.15 crore equity shares as against 64.22 lakh shares on offer.
Major response was seen from qualified institutional investors, whose reserved portion subscribed 106.26 times followed by 26.56 times in retail and 32.50 times in HNIs category, till 1 pm.
The public offer expects to raise up to Rs 490 crore. The proceeds would be deployed in the company's consumer credit business -- Future Money -- which was launched in June 2007.
The price band for the IPO is between Rs 700-Rs 765. The equity shares are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.
The issue would constitute 10.16 per cent of the post-issue paid-up capital of the company.
Kotak Mahindra Capital Company Ltd, Enam Securities, JM Financial Consultants Pvt Ltd and UBS Securities India are the book-running lead manager to the issue.
Source: Moneycontrol.com
Tuesday, January 15, 2008
Future Capital IPO oversubscribed 27 times
The initial public offer of Kishore Biyani-led Future Capital Holdings got subscribed 27 times, according to NSE website.
Public issue received bids for 17.36 crore equity shares as against 64.22 lakh shares on offer.
The public offer expects to raise up to Rs 490 crore. The proceeds would be deployed in the company's consumer credit business -- Future Money -- which was launched in June 2007.
The IPO of financial services arm of the retail major Future Group received bids for 5.58 crore equity shares against the 64.22 lakh shares on offer, the data available on the stock exchanges show.
The price band for the IPO is between Rs 700-Rs 765 and the issue would close on January 16. The equity shares are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.
The issue would constitute 10.16 per cent of the post-issue paid-up capital of the company.
Kotak Mahindra Capital Company Ltd, Enam Securities, JM Financial Consultants Pvt Ltd and UBS Securities India are the book-running lead manager to the issue.
Source: Moneycontrol.com
Public issue received bids for 17.36 crore equity shares as against 64.22 lakh shares on offer.
The public offer expects to raise up to Rs 490 crore. The proceeds would be deployed in the company's consumer credit business -- Future Money -- which was launched in June 2007.
The IPO of financial services arm of the retail major Future Group received bids for 5.58 crore equity shares against the 64.22 lakh shares on offer, the data available on the stock exchanges show.
The price band for the IPO is between Rs 700-Rs 765 and the issue would close on January 16. The equity shares are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.
The issue would constitute 10.16 per cent of the post-issue paid-up capital of the company.
Kotak Mahindra Capital Company Ltd, Enam Securities, JM Financial Consultants Pvt Ltd and UBS Securities India are the book-running lead manager to the issue.
Source: Moneycontrol.com
Rel Power IPO subscribed 10.5 times on first day
Reliance Power IPO has subscribed 10.52 times. Maximum bids are at Rs 450 per share, a higher end of band Rs 405-450. Public issue received bids for 2.4 billion shares as against 26 crore shares on offer and that bids worth of USD 27.5 billion (Rs 1.08 lakh crore).
Qualified institutional investors' reserved portion subscribed 17.5 times.
The initial public offer of Reliance Power, ADAG group company, has opened for subscription today. The company is offering 26 crore equity shares through this issue in the price band of Rs 405-450 per share and raising nearly Rs 10530-11700 crore (USD 2.67- 2.97 billion).
Net issue to the public is of 22.8 crore shares and will raise between Rs 9234 – 10260 crore from the public. Promoters have pumped in Rs 1440 crore yesterday at Rs 450 per share as against 3.2 crore shares.
The issue will close for subscription on January 18, 2008. Net issue would constitute 10.1% of post issue paid up capital of the company. Shares outstanding post issue would be 226 crore shares. Market cap of the company would be Rs 91530–Rs 101700 crore (USD 23.23 – 25.8 billion).
Power generation company has 13 projects, out of which 6 are under development now.
* 7 coal based projects - 14,620 MW
* 2 gas bsed - 10,280 MW from KG basin
* 4 Hydroelectric projects – 3300 MW
Company intends to use IPO money for part financing power subsidiaries, which are pursuing 13 power generation projects. Out of which, 11 projects are to developed by nine subsidiaries; one is being directly executed by Reliance Power and one project under subsidiary is yet to be transferred. Rest of the money will be used for general corporate purposes and to get benefit of listing.
Source: Moneycontrol.com
Qualified institutional investors' reserved portion subscribed 17.5 times.
The initial public offer of Reliance Power, ADAG group company, has opened for subscription today. The company is offering 26 crore equity shares through this issue in the price band of Rs 405-450 per share and raising nearly Rs 10530-11700 crore (USD 2.67- 2.97 billion).
Net issue to the public is of 22.8 crore shares and will raise between Rs 9234 – 10260 crore from the public. Promoters have pumped in Rs 1440 crore yesterday at Rs 450 per share as against 3.2 crore shares.
The issue will close for subscription on January 18, 2008. Net issue would constitute 10.1% of post issue paid up capital of the company. Shares outstanding post issue would be 226 crore shares. Market cap of the company would be Rs 91530–Rs 101700 crore (USD 23.23 – 25.8 billion).
Power generation company has 13 projects, out of which 6 are under development now.
* 7 coal based projects - 14,620 MW
* 2 gas bsed - 10,280 MW from KG basin
* 4 Hydroelectric projects – 3300 MW
Company intends to use IPO money for part financing power subsidiaries, which are pursuing 13 power generation projects. Out of which, 11 projects are to developed by nine subsidiaries; one is being directly executed by Reliance Power and one project under subsidiary is yet to be transferred. Rest of the money will be used for general corporate purposes and to get benefit of listing.
Source: Moneycontrol.com
Reliance Power IPO subscribed 4 times at Rs 450/share
Reliance Power IPO has subscribed 4.5 times. All bids are at Rs 450 per share, a higher end of band Rs 405-450.
Source: Moneycontrol.com
Source: Moneycontrol.com
Now, IPO form in your dabba
Reliance Power is making sure it is all powered with its IPO that opens tomorrow. If you get your lunch box delivered by a dabbawalla in Mumbai, chances are you also received an IPO application from Reliance Power. The company has roped in dabawallas to get retail investors to buy, reports CNBC-TV18.
The IPO seems to have more people opening Demat accounts. Leading brokerages say the number of applications they have received has increased from an average of 500-600 per month to 3,000 applications already this month.
Meanwhile, the issue is being pushed using innovative ways. CNBC-TV18’s Pooja Meswani tells us how dabbawalas have been roped to deliver IPO forms along with your lunch.
On offer with your dabba is an IPO form, a demat account form and a host of financial products, delivered by the world-renowned Mumbai dabbawalah. With the much-awaited IPO- Reliance Power - hitting the bourses soon, financial services company Reliance Money is not sparing any effort to make this IPO more appetizing. It has tied-up with the Dabbawalla Association of Mumbai to ensure delivery of its list of services to its 1.6 lakh professional clientele, who order dabba food everyday. Anil Dhirubhai Ambani Group has also started cross promotion, by setting a Reliance Power ringtone on Reliance mobiles, for those who have not subscribed for a specific one.
“The idea is to reach out to a maximum number of people. Reaching out to the age group 24-40 makes a profitable business proposition,” said Sudeep Bandopadhyay, MD and Director, Reliance Money.
That is not all. As the market awaits the two big IPOs- Reliance Power and Future Cap Holdings, brokers and distributors are working round the clock to service eager investors.
Data from depositories shows nearly 2 lakh demat accounts have been opened in the first 10 days of January itself. Leading brokerages like Angel Broking, Motilal Oswal, Kotak Securities and Edelweiss receive as many as 5,000 to 6000 applications a day, compared to the 500-600 forms on an average.
To lure clients, brokers are offering free trading accounts, along with gifts like gold & silver coins. Now that is what some may call a square meal.
Source: Moneycontrol.com
The IPO seems to have more people opening Demat accounts. Leading brokerages say the number of applications they have received has increased from an average of 500-600 per month to 3,000 applications already this month.
Meanwhile, the issue is being pushed using innovative ways. CNBC-TV18’s Pooja Meswani tells us how dabbawalas have been roped to deliver IPO forms along with your lunch.
On offer with your dabba is an IPO form, a demat account form and a host of financial products, delivered by the world-renowned Mumbai dabbawalah. With the much-awaited IPO- Reliance Power - hitting the bourses soon, financial services company Reliance Money is not sparing any effort to make this IPO more appetizing. It has tied-up with the Dabbawalla Association of Mumbai to ensure delivery of its list of services to its 1.6 lakh professional clientele, who order dabba food everyday. Anil Dhirubhai Ambani Group has also started cross promotion, by setting a Reliance Power ringtone on Reliance mobiles, for those who have not subscribed for a specific one.
“The idea is to reach out to a maximum number of people. Reaching out to the age group 24-40 makes a profitable business proposition,” said Sudeep Bandopadhyay, MD and Director, Reliance Money.
That is not all. As the market awaits the two big IPOs- Reliance Power and Future Cap Holdings, brokers and distributors are working round the clock to service eager investors.
Data from depositories shows nearly 2 lakh demat accounts have been opened in the first 10 days of January itself. Leading brokerages like Angel Broking, Motilal Oswal, Kotak Securities and Edelweiss receive as many as 5,000 to 6000 applications a day, compared to the 500-600 forms on an average.
To lure clients, brokers are offering free trading accounts, along with gifts like gold & silver coins. Now that is what some may call a square meal.
Source: Moneycontrol.com
Future Capital IPO oversubscribed 8.7 times on day 2
The initial public offer of Kishore Biyani-led Future Capital Holdings got subscribed 8.69 times till the second day of issue today.
The public offer expects to raise up to Rs 490 crore. The proceeds would be deployed in the company's consumer credit business -- Future Money -- which was launched in June 2007.
Response has seen from qualified institutional investors, whose reserved portion subscribed over 10 times followed by 8 times subscription in retail investors category.
The IPO of financial services arm of the retail major Future Group received bids for 5.58 crore equity shares against the 64.22 lakh shares on offer, the data available on the stock exchanges show.
The price band for the IPO is between Rs 700-Rs 765 and the issue would close on January 16. The equity shares are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.
The issue would constitute 10.16 per cent of the post-issue paid-up capital of the company.
Kotak Mahindra Capital Company Ltd, Enam Securities, JM Financial Consultants Pvt Ltd and UBS Securities India are the book-running lead manager to the issue.
Source: Moneycontrol.com
The public offer expects to raise up to Rs 490 crore. The proceeds would be deployed in the company's consumer credit business -- Future Money -- which was launched in June 2007.
Response has seen from qualified institutional investors, whose reserved portion subscribed over 10 times followed by 8 times subscription in retail investors category.
The IPO of financial services arm of the retail major Future Group received bids for 5.58 crore equity shares against the 64.22 lakh shares on offer, the data available on the stock exchanges show.
The price band for the IPO is between Rs 700-Rs 765 and the issue would close on January 16. The equity shares are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.
The issue would constitute 10.16 per cent of the post-issue paid-up capital of the company.
Kotak Mahindra Capital Company Ltd, Enam Securities, JM Financial Consultants Pvt Ltd and UBS Securities India are the book-running lead manager to the issue.
Source: Moneycontrol.com
Subscribe to Reliance Power IPO for listing gains
Reliance Power is planning to raise around Rs 10,530-11,700 crore from its initial public offering (IPO) of 26 crore equity shares with a face value of Rs 10, for cash, a price decided through 100% book building process. The price band is at Rs 405-450 per share.
The IPO will open on January 15 and close on January 18, 2008. Net issue would constitute of 10.1% of post issue paid up capital of the company. Outstanding shares post issue will be of 226 crore equity shares.
Market cap will be Rs 91,530-101,700 crore (USD 23.23-25.8 billion).
The proceeds from the issue will be used for part financing power subsidiaries and for 13 power generation projects. The projects will be developed by 9 subsidiaries. Some funds will be used for general corporate purposes.
Book running lead managers are Kotak Mahindra Capital Company Ltd, UBS Securities India Pvt Ltd, ABN Amro Securities (I) Pvt Ltd, Deutsche Equities India Pvt Ltd, Enam Securities Pvt Ltd, ICICI Securities Ltd, JM Financial Consultants Pvt Ltd and JP Morgan India Pvt Ltd and Karvy Computershare Pvt Ltd is the registrar to the issue.
Source: Moneycontrol.com
The IPO will open on January 15 and close on January 18, 2008. Net issue would constitute of 10.1% of post issue paid up capital of the company. Outstanding shares post issue will be of 226 crore equity shares.
Market cap will be Rs 91,530-101,700 crore (USD 23.23-25.8 billion).
The proceeds from the issue will be used for part financing power subsidiaries and for 13 power generation projects. The projects will be developed by 9 subsidiaries. Some funds will be used for general corporate purposes.
Book running lead managers are Kotak Mahindra Capital Company Ltd, UBS Securities India Pvt Ltd, ABN Amro Securities (I) Pvt Ltd, Deutsche Equities India Pvt Ltd, Enam Securities Pvt Ltd, ICICI Securities Ltd, JM Financial Consultants Pvt Ltd and JP Morgan India Pvt Ltd and Karvy Computershare Pvt Ltd is the registrar to the issue.
Source: Moneycontrol.com
Reliance Power IPO opens for subscription
Reliance Power, a Anil Dhirubhai Ambani Group Company, is open for subscription with an initial public offer (IPO) of 26 crore equity shares. The issue will close on January 18. The price band is between Rs 405-450 per share.
The Reliance Power IPO, the country’s largest IPO so far, is expected to raise an amount in the range of Rs 10,700 crore-11,700 crore, with a net issue to the public of 228 million shares. The total issue size is of 260 million shares, including the promoters’ contribution of 32 million shares.
* The IPO opens today
* Rs 20 discount for retail investors
* Retail investors have option to pay only Rs 115 per share on application
Retail investors have been offered a discount of Rs 20 per share, which implies their net cost of subscription will be Rs 430 per share, if they choose to bid at Rs 450 per share. Retail investors also have the option of making part payment of the application monies, wherein they will have to put in only Rs 115 per share upon application. The balance will be called upon, post the allotment of partly paid shares.
With a combined planned installed capacity of 28,200 MW, Reliance Power has one of the largest portfolios of power generation assets under development in India
Kotak Mahindra Capital Company Limited, UBS Securities India Private Limited, ABN AMRO Securities (India) Private Limited, Deutsche Equities India Private Limited, Enam Securities Private Limited, ICICI Securities Limited, JM Financial Consultants Private Limited and J.P. Morgan India Private Limited are acting as the Book Running Lead Managers to the Issue whilst Macquarie India Advisory Services Private Limited and SBI Capital Markets Limited are acting as Co-Book Running Lead Managers. Amarchand & Mangaldas & Suresh A. Shroff & Co. is advising the Company whilst Cleary Gottlieb Steen & Hamilton and J. Sagar and Associates are advising the BRLMs and CBRLMs in relation to the Issue.
Source: Moneycontrol.com
The Reliance Power IPO, the country’s largest IPO so far, is expected to raise an amount in the range of Rs 10,700 crore-11,700 crore, with a net issue to the public of 228 million shares. The total issue size is of 260 million shares, including the promoters’ contribution of 32 million shares.
* The IPO opens today
* Rs 20 discount for retail investors
* Retail investors have option to pay only Rs 115 per share on application
Retail investors have been offered a discount of Rs 20 per share, which implies their net cost of subscription will be Rs 430 per share, if they choose to bid at Rs 450 per share. Retail investors also have the option of making part payment of the application monies, wherein they will have to put in only Rs 115 per share upon application. The balance will be called upon, post the allotment of partly paid shares.
With a combined planned installed capacity of 28,200 MW, Reliance Power has one of the largest portfolios of power generation assets under development in India
Kotak Mahindra Capital Company Limited, UBS Securities India Private Limited, ABN AMRO Securities (India) Private Limited, Deutsche Equities India Private Limited, Enam Securities Private Limited, ICICI Securities Limited, JM Financial Consultants Private Limited and J.P. Morgan India Private Limited are acting as the Book Running Lead Managers to the Issue whilst Macquarie India Advisory Services Private Limited and SBI Capital Markets Limited are acting as Co-Book Running Lead Managers. Amarchand & Mangaldas & Suresh A. Shroff & Co. is advising the Company whilst Cleary Gottlieb Steen & Hamilton and J. Sagar and Associates are advising the BRLMs and CBRLMs in relation to the Issue.
Source: Moneycontrol.com
Friday, January 11, 2008
Reliance Power Payment Options & Grey Market Premium
RELIANCE POWER: CUT OFF PRICE IS 450 ONLY.
PAYMENT OPTION -1
Lot Size Part Pay Part Pay Amount
15 115 1725
30 115 3450
45 115 5175
60 115 6900
75 115 8625
90 115 10350
105 115 12075
120 115 13800
135 115 15525
150 115 17250
165 115 18975
180 115 20700
195 115 22425
210 115 24150
22 115 25875
Payment option - 2
Lot Size Issue Price Total Amt
15 430.00 6450.00
30 430.00 12900.00
45 430.00 19350.00
60 430.00 25800.00
75 430.00 32250.00
90 430.00 38700.00
105 430.00 45150.00
120 430.00 51600.00
135 430.00 58050.00
150 430.00 64500.00
165 430.00 70950.00
180 430.00 77400.00
195 430.00 83850.00
210 430.00 90300.00
225 430.00 96750.00
IPO Grey Market Premium - Dt: 11th Jan. 2008
Future Capital - 11 Jan / 16 Jan - 700 to 765 - 560 to 570 - 2500 to 2600
Reliance Power - 15 Jan / 18 Jan - 405 to 450 - 350 to 360 - 8000-8200
Happy Weekend Friends.
PAYMENT OPTION -1
Lot Size Part Pay Part Pay Amount
15 115 1725
30 115 3450
45 115 5175
60 115 6900
75 115 8625
90 115 10350
105 115 12075
120 115 13800
135 115 15525
150 115 17250
165 115 18975
180 115 20700
195 115 22425
210 115 24150
22 115 25875
Payment option - 2
Lot Size Issue Price Total Amt
15 430.00 6450.00
30 430.00 12900.00
45 430.00 19350.00
60 430.00 25800.00
75 430.00 32250.00
90 430.00 38700.00
105 430.00 45150.00
120 430.00 51600.00
135 430.00 58050.00
150 430.00 64500.00
165 430.00 70950.00
180 430.00 77400.00
195 430.00 83850.00
210 430.00 90300.00
225 430.00 96750.00
IPO Grey Market Premium - Dt: 11th Jan. 2008
Future Capital - 11 Jan / 16 Jan - 700 to 765 - 560 to 570 - 2500 to 2600Reliance Power - 15 Jan / 18 Jan - 405 to 450 - 350 to 360 - 8000-8200
Happy Weekend Friends.
Precision Pipes ends below issue price
Precision Pipes and Profiles Company, a Delhi-based OEM supplier to the automobile industry, has closed the day on a weak note. It touched a high/low of Rs 175 and Rs 132, respectively before ending the day at Rs 133.35, down 11.10% to its issue price of Rs 150 on the NSE.
The stock had opened at Rs 165 and ended with turnover of Rs 85 crore. It traded with volumes of 59,17,784 shares.
In an exclusive interview with CNBC-TV18, Ajay Jain, MD, Precision Pipes & Profiles said that their FY08 sales stand at Rs 130 crore and that their PAT is up at 40%. According to him, their FY09 revenues are pegged at Rs 80 crore and PAT at 15%. Jain said that their major customers include Maruti and Honda. He added that they also supply eight parts to Tata’s Rs 1 lakh car, the Nano.
The stock opened at Rs 160, and closed at Rs 138.65, with volumes of 62,46,047 shares. It has hit high/low of Rs 175 and Rs 132.60, respectively on the BSE.
The company had entered capital market with an public issue of shares of face value of Rs 10 each at a price band of Rs 140-150 per equity share and subscribed 10.35 times. It raised more than Rs 80 crore from this issue.
The company is currently in the process of increasing its production capabilities from 4.75 million kg to 9.14 million kg by 2008-09. It is also setting up a new plant for manufacturing of auto components and also a new plant for electrical outlet system products for Power and Data Corporation Pty Ltd, Australia
Source: Moneycontrol.com
The stock had opened at Rs 165 and ended with turnover of Rs 85 crore. It traded with volumes of 59,17,784 shares.
In an exclusive interview with CNBC-TV18, Ajay Jain, MD, Precision Pipes & Profiles said that their FY08 sales stand at Rs 130 crore and that their PAT is up at 40%. According to him, their FY09 revenues are pegged at Rs 80 crore and PAT at 15%. Jain said that their major customers include Maruti and Honda. He added that they also supply eight parts to Tata’s Rs 1 lakh car, the Nano.
The stock opened at Rs 160, and closed at Rs 138.65, with volumes of 62,46,047 shares. It has hit high/low of Rs 175 and Rs 132.60, respectively on the BSE.
The company had entered capital market with an public issue of shares of face value of Rs 10 each at a price band of Rs 140-150 per equity share and subscribed 10.35 times. It raised more than Rs 80 crore from this issue.
The company is currently in the process of increasing its production capabilities from 4.75 million kg to 9.14 million kg by 2008-09. It is also setting up a new plant for manufacturing of auto components and also a new plant for electrical outlet system products for Power and Data Corporation Pty Ltd, Australia
Source: Moneycontrol.com
UTI Asset Management files IPO papers with SEBI
UTI Asset Management Company, a leading provider of asset management services in India catering to a diverse group of individual and institutional investors through a wide variety of equity and debt funds, has filed the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to enter the capital market soon with an initial public offering (IPO) of 48,500,000 equity shares of Rs 10 each through an offer for sale by the selling shareholders for cash at a price to be decided through a 100% book-building process.
Its four sponsors and the selling shareholders are the State Bank of India, Life Insurance Corporation of India, Punjab National Bank and Bank of Baroda (which are all controlled by the Government of India).
The offer also comprises a reservation of not less than 485,000 equity shares for subscription by eligible employees and the offer to the public of 48,015,000 equity shares. The equity shares are proposed to be listed on the National Stock Exchange and the Bombay Stock Exchange.
Of the total net offer, not less than 50% shall be available for allocation on a proportionate basis to qualified institutional buyers, out of which 5% shall be available for allocation on a proportionate basis to Mutual Funds only. Further, not less than 15% of the net offer will be available for allocation on a proportionate basis to non-institutional bidders and not less than 35% of the net offer will be available for allocation on a proportionate basis to retail individual bidders.
The company and its predecessor, the Unit Trust of India have been active in the asset management industry in India for more than 40 years, after having established the first mutual fund in India. It has a national footprint with representatives in 455 of India's 604 districts, with an extensive network of 79 UTI Financial Centres, independent financial advisors, banks and other distributors, as well as offices overseas.
The Company, along with its subsidiaries, manages domestic mutual funds, as well as provides portfolio management services and manages overseas funds, venture capital and private equity funds. Its total assets under management ("AUM") equalled Rs 495,418 million, as of September 30, 2007. Based on the AUM in the domestic mutual funds as of December 31, 2007, it is the second largest mutual fund provider in India, according to the Association of Mutual Funds in India ("AMFI").
The Company currently manages 76 domestic equity, balanced/hybrid, income and liquid mutual funds. Its domestic funds had AUM of Rs 450,026 million, as of September 30, 2007, constituting approximately 9.4% of the total AUM invested in mutual funds in India and making it the third largest fund provider, according to AMFI.
The company also provides portfolio management services to approximately 320 clients. It manages offshore and foreign institutional investor funds (including a co-branded fund with Shinsei Bank of Japan), as well as venture capital and private equity funds. As of September 30, 2007, its portfolio management, overseas, venture capital and private equity funds had total AUM of Rs 45,392 million.
The global co-ordinators and book running lead managers to the Offer are JM Financial Consultants Private Limited, Citigroup Global Markets India Private Limited and Enam Securities Private Limited. The book running lead managers to the Offer are Goldman Sachs ( India) Securities Private Limited, UBS Securities India Private Limited, ICICI Securities Limited, SBI Capital Markets Limited and CLSA India Limited.
Source: Moneycontrol.com
Its four sponsors and the selling shareholders are the State Bank of India, Life Insurance Corporation of India, Punjab National Bank and Bank of Baroda (which are all controlled by the Government of India).
The offer also comprises a reservation of not less than 485,000 equity shares for subscription by eligible employees and the offer to the public of 48,015,000 equity shares. The equity shares are proposed to be listed on the National Stock Exchange and the Bombay Stock Exchange.
Of the total net offer, not less than 50% shall be available for allocation on a proportionate basis to qualified institutional buyers, out of which 5% shall be available for allocation on a proportionate basis to Mutual Funds only. Further, not less than 15% of the net offer will be available for allocation on a proportionate basis to non-institutional bidders and not less than 35% of the net offer will be available for allocation on a proportionate basis to retail individual bidders.
The company and its predecessor, the Unit Trust of India have been active in the asset management industry in India for more than 40 years, after having established the first mutual fund in India. It has a national footprint with representatives in 455 of India's 604 districts, with an extensive network of 79 UTI Financial Centres, independent financial advisors, banks and other distributors, as well as offices overseas.
The Company, along with its subsidiaries, manages domestic mutual funds, as well as provides portfolio management services and manages overseas funds, venture capital and private equity funds. Its total assets under management ("AUM") equalled Rs 495,418 million, as of September 30, 2007. Based on the AUM in the domestic mutual funds as of December 31, 2007, it is the second largest mutual fund provider in India, according to the Association of Mutual Funds in India ("AMFI").
The Company currently manages 76 domestic equity, balanced/hybrid, income and liquid mutual funds. Its domestic funds had AUM of Rs 450,026 million, as of September 30, 2007, constituting approximately 9.4% of the total AUM invested in mutual funds in India and making it the third largest fund provider, according to AMFI.
The company also provides portfolio management services to approximately 320 clients. It manages offshore and foreign institutional investor funds (including a co-branded fund with Shinsei Bank of Japan), as well as venture capital and private equity funds. As of September 30, 2007, its portfolio management, overseas, venture capital and private equity funds had total AUM of Rs 45,392 million.
The global co-ordinators and book running lead managers to the Offer are JM Financial Consultants Private Limited, Citigroup Global Markets India Private Limited and Enam Securities Private Limited. The book running lead managers to the Offer are Goldman Sachs ( India) Securities Private Limited, UBS Securities India Private Limited, ICICI Securities Limited, SBI Capital Markets Limited and CLSA India Limited.
Source: Moneycontrol.com
Future Capital Holdings IPO subscribed 2.4x
Future Capital Holdings (FCHL), the financial services arm of the Future Group, has received good response on day one of subscription period. The issue subscribed 2.38 times, as per data available on NSE website. It received bids for 1.52 crore equity shares as against 64.22 lakh shares on offer.
The issue will close for subscription on January 16, 2008. The price band is between Rs 700 and Rs 765 per equity share. The issue would constitute 10.16% of the post-issue paid-up capital of the company.
FCHL's three primary lines of business are investment advisory services, retail financial services and research. Currently, the two main retail financial services products are consumption loans and personal loans. FCHL will also commence in the near future the distribution of financial products, including credit cards. It has entered into an agreement with ICICI Bank for marketing and distribution of the "Future Card", a credit card offering loyalty points.
The objects of the issue are to augment capital base to meet the future capital requirements arising out of growth and for other general corporate purposes including meeting the expenses of the issue.
The book running lead managers to the issue are Kotak Mahindra Capital Company Limited, Enam Securities Private Limited, JM Financial Consultants Private Limited and UBS Securities India Private Limited
Source: Moneycontrol.com
The issue will close for subscription on January 16, 2008. The price band is between Rs 700 and Rs 765 per equity share. The issue would constitute 10.16% of the post-issue paid-up capital of the company.
FCHL's three primary lines of business are investment advisory services, retail financial services and research. Currently, the two main retail financial services products are consumption loans and personal loans. FCHL will also commence in the near future the distribution of financial products, including credit cards. It has entered into an agreement with ICICI Bank for marketing and distribution of the "Future Card", a credit card offering loyalty points.
The objects of the issue are to augment capital base to meet the future capital requirements arising out of growth and for other general corporate purposes including meeting the expenses of the issue.
The book running lead managers to the issue are Kotak Mahindra Capital Company Limited, Enam Securities Private Limited, JM Financial Consultants Private Limited and UBS Securities India Private Limited
Source: Moneycontrol.com
Wednesday, January 9, 2008
Grey mkt overpriced Reliance Power IPO
Portfolio Manager, P N Vijay believes that Reliance Power IPO is a dampener on the whole sector because people are seem to be pulling out money from other power stocks to invest in Reliance Power. It is going to be sort of a DLF effect to power sector.
Vijay told CNBC-TV18, “Reliance Power IPO is a dampener on the whole sector because people are seem to be pulling out money from other power stocks to invest in Reliance Power.”
He further added, “Reliance Power is going to give us a sort of a DLF effect to the whole power sector. There are cynics who say that the issue especially if one takes the grey market it’s way-way over priced. It’s overpriced to about 150% but that’s how the Ambani’s operate. Right now it is going to be, atleast in the immediate future, pull up effect to the whole sector by better visibility.”
Source: Moneycontrol.com
Vijay told CNBC-TV18, “Reliance Power IPO is a dampener on the whole sector because people are seem to be pulling out money from other power stocks to invest in Reliance Power.”
He further added, “Reliance Power is going to give us a sort of a DLF effect to the whole power sector. There are cynics who say that the issue especially if one takes the grey market it’s way-way over priced. It’s overpriced to about 150% but that’s how the Ambani’s operate. Right now it is going to be, atleast in the immediate future, pull up effect to the whole sector by better visibility.”
Source: Moneycontrol.com
Manaksia ends with 4.7% premium
Manaksia, a multi division and multi location company focusing on manufacturing of value added metal products and metal packaging products, has ended the day with mild premium of 4.7% at Rs 164.70 as against its issue price of Rs 160. The stock has touched a high/low of Rs 212 in early trade on the NSE. Some profit booking during the day has pulled the stock below its issue price to hit a low of Rs 161.70.
It traded with volumes of 2,20,42,252 shares and the turnover was at Rs 394 crore.
It closed at Rs 168.10 on the BSE and traded with volumes of 1,22,02,270 shares on the BSE. The stock has touched a high/low of Rs 248.70 and Rs 161.55, respectively.
The company had come out with an initial public offering of 15,500,000 equity shares of Rs 2 each at a price band between Rs 140 and Rs 160 per equity share and subscribed 8.79 times. It has raised Rs 248 crore from this issue.
The company intended to use the net proceeds of the issue for expansion of metals business by purchase of capital equipment, prepayment of certain term debt and for general corporate purposes. The expansion of metals business includes addition of certain equipments for de-bottlenecking to aluminium rolling line at Haldia is aimed at production of higher value added products as well as improving efficiency of its present production.
Source: Moneycontrol.com
It traded with volumes of 2,20,42,252 shares and the turnover was at Rs 394 crore.
It closed at Rs 168.10 on the BSE and traded with volumes of 1,22,02,270 shares on the BSE. The stock has touched a high/low of Rs 248.70 and Rs 161.55, respectively.
The company had come out with an initial public offering of 15,500,000 equity shares of Rs 2 each at a price band between Rs 140 and Rs 160 per equity share and subscribed 8.79 times. It has raised Rs 248 crore from this issue.
The company intended to use the net proceeds of the issue for expansion of metals business by purchase of capital equipment, prepayment of certain term debt and for general corporate purposes. The expansion of metals business includes addition of certain equipments for de-bottlenecking to aluminium rolling line at Haldia is aimed at production of higher value added products as well as improving efficiency of its present production.
Source: Moneycontrol.com
Subscribe to Reliance Power IPO
Hem Securities has come out with report on Reliance Power IPO. It has recommended subscribing the issue.
Reliance Power is planning to raise around Rs 10,530-11,700 crore from its initial public offering (IPO) of 26 crore equity shares with a face value of Rs 10, for cash, a price decided through 100% book building process. The price band has been fixed at Rs 405-450 per share.
Hem Securities report on Reliance Power IPO
Business Profile
Reliance Power (RPower), originally incorporated as Bawana Power Private Limited, is part of the Reliance Anil Dhirubhai Ambani Group and is currently developing 13 medium and large sized power projects with a combined planned installed capacity of 28,200 MW. The identified project sites are located in western India (12,220 MW), northern India (9,080 MW), northeastern India (2,900 MW) and southern India (4,000 MW).
The projects include seven coal-fired projects (14,620 MW) to be fuelled by reserves from captive mines and supplies from India and abroad, two gas-fired projects (10,280 MW) to be fueled primarily by reserves from the Krishna Godavari Basin (the “KG Basin”) off the east coast of India, and four hydroelectric projects (3,300 MW), three of them in Arunachal Pradesh and one in Uttarakhand.
Company intends to sell the power generated by these projects under a combination of long-term and short-term PPAs to state-owned and private distribution companies and industrial consumers. In addition to the 28,200 MW of power projects, company intends to develop additional power projects to help meet the huge demand in this sector. Company is considering the development of CBM (Coal Bed Methane) power generation projects based on fuel from CBM blocks being explored by a consortium that includes company’s affiliates.
Company also intends to invest in overseas opportunities that are a strategic fit with company’s business. Company intends to explore the possibility of registering certain of its projects with the Clean Development Mechanism executive board for the issuance of carbon emission reduction certificates that company may sell. The company has subsidiaries viz SPL, CAPL, MPPGL, RPSCL, MEGL, VIPL, USHPPL, THPPL, SHPPL and KPPL. Projects of an aggregate generation capacity of 24,600 MW were bid and secured by the Company in its own name. Of this Dadri Project of 7,480 MW is being developed by the Company and the Projects of 17,120 MW are being developed through subsidiaries.
Valuation
The company is the primary vehicle for investments in the power generation in Reliance ADA group. The company has entered and intended to enter into various arrangements with companies of Reliance ADA group, including REL, RNRL and Reliance Energy Transmission. This will help the company in drawing upon the considerable expertise and resources these affiliates have in the energy sector.
As the company is in project implementation phase hence meaningful earnings likely to kick in later years. After commissioning of these proposed projects over next few years the company would be among one of the major power producing company in India. The company enjoys the lower risk due to its well diversified project portfolio comprising of coal , gas and hydro.
The company with its strategies like lower cost of generation, fast completion of projects and efficient operations looks an attractive issue to deploy the funds. Investor can “Subscribe” the issue.
Source: Moneycontrol.com
Reliance Power is planning to raise around Rs 10,530-11,700 crore from its initial public offering (IPO) of 26 crore equity shares with a face value of Rs 10, for cash, a price decided through 100% book building process. The price band has been fixed at Rs 405-450 per share.
Hem Securities report on Reliance Power IPO
Business Profile
Reliance Power (RPower), originally incorporated as Bawana Power Private Limited, is part of the Reliance Anil Dhirubhai Ambani Group and is currently developing 13 medium and large sized power projects with a combined planned installed capacity of 28,200 MW. The identified project sites are located in western India (12,220 MW), northern India (9,080 MW), northeastern India (2,900 MW) and southern India (4,000 MW).
The projects include seven coal-fired projects (14,620 MW) to be fuelled by reserves from captive mines and supplies from India and abroad, two gas-fired projects (10,280 MW) to be fueled primarily by reserves from the Krishna Godavari Basin (the “KG Basin”) off the east coast of India, and four hydroelectric projects (3,300 MW), three of them in Arunachal Pradesh and one in Uttarakhand.
Company intends to sell the power generated by these projects under a combination of long-term and short-term PPAs to state-owned and private distribution companies and industrial consumers. In addition to the 28,200 MW of power projects, company intends to develop additional power projects to help meet the huge demand in this sector. Company is considering the development of CBM (Coal Bed Methane) power generation projects based on fuel from CBM blocks being explored by a consortium that includes company’s affiliates.
Company also intends to invest in overseas opportunities that are a strategic fit with company’s business. Company intends to explore the possibility of registering certain of its projects with the Clean Development Mechanism executive board for the issuance of carbon emission reduction certificates that company may sell. The company has subsidiaries viz SPL, CAPL, MPPGL, RPSCL, MEGL, VIPL, USHPPL, THPPL, SHPPL and KPPL. Projects of an aggregate generation capacity of 24,600 MW were bid and secured by the Company in its own name. Of this Dadri Project of 7,480 MW is being developed by the Company and the Projects of 17,120 MW are being developed through subsidiaries.
Valuation
The company is the primary vehicle for investments in the power generation in Reliance ADA group. The company has entered and intended to enter into various arrangements with companies of Reliance ADA group, including REL, RNRL and Reliance Energy Transmission. This will help the company in drawing upon the considerable expertise and resources these affiliates have in the energy sector.
As the company is in project implementation phase hence meaningful earnings likely to kick in later years. After commissioning of these proposed projects over next few years the company would be among one of the major power producing company in India. The company enjoys the lower risk due to its well diversified project portfolio comprising of coal , gas and hydro.
The company with its strategies like lower cost of generation, fast completion of projects and efficient operations looks an attractive issue to deploy the funds. Investor can “Subscribe” the issue.
Source: Moneycontrol.com
Sebi clears Emaar-MGF IPO; price band Rs 725-850
CNBC-TV18 learns from the sources that the market regulator, SEBI has cleared the Emaar-MGF IPO. The price band has been fixed at Rs 725-850 per share. The company may list by February 27 and expects to raise Rs 7000 crore.
Source: Moneycontrol.com
Source: Moneycontrol.com
Monday, January 7, 2008
Grey Market Premium Rates : 8th January 2008
Grey Market Premium Rates
Company - Open/Close - Offer Price - Premium - Kostak Rates
Future Capital - 11 Jan / 11 Jan - 700 to 765 - 525 to 540 - 3000 to 3100
Reliance Power - 15 Jan / 18 Jan - 405 to 450 430 to 450 - 9500-10000
Precision Pipes - 17 Dec / 20 Dec - 140 to 150 - 25 to 30 -------
Porwal Auto - 17 Dec / 20 Dec - 68 to 75 - Discount -------
Manaksia Ltd - 17 Dec / 19 Dec - 140 to 160 - 15 to 17 -------
Aries Agro - 14 Dec / 19 Dec - 120 to 130 - 35 to 40 -------
P.S. :- SELL MANAKSIA ON LISTING AT 160-165, WILL IMMEDIATELY GET DISCOUNTED UNDER RS. 130/-
Company - Open/Close - Offer Price - Premium - Kostak Rates
Future Capital - 11 Jan / 11 Jan - 700 to 765 - 525 to 540 - 3000 to 3100
Reliance Power - 15 Jan / 18 Jan - 405 to 450 430 to 450 - 9500-10000
Precision Pipes - 17 Dec / 20 Dec - 140 to 150 - 25 to 30 -------
Porwal Auto - 17 Dec / 20 Dec - 68 to 75 - Discount -------
Manaksia Ltd - 17 Dec / 19 Dec - 140 to 160 - 15 to 17 -------
Aries Agro - 14 Dec / 19 Dec - 120 to 130 - 35 to 40 -------
P.S. :- SELL MANAKSIA ON LISTING AT 160-165, WILL IMMEDIATELY GET DISCOUNTED UNDER RS. 130/-
Manaksia to list on January 8
Manaksia, a multi division and multi location company focusing on manufacturing of value added metal products and metal packaging products, will list on the bourses with equity shares on Tuesday, January 08, 2008. The issue price has been fixed at Rs 160 per equity share. It has raised Rs 248 crore from this issue.
The company had come out with an initial public offering of 15,500,000 equity shares of Rs 2 each at a price band between Rs 140 and Rs 160 per equity share.
It had subscribed 8.79 times, according to data available on NSE website. Big support was seen from qualified institutional investors, their reserved portion subscribed 13.7 times followed by retail and HNIs with 5.09 times and 2.72 times, respectively.
The company intended to use the net proceeds of the issue for expansion of metals business by purchase of capital equipment, prepayment of certain term debt and for general corporate purposes. The expansion of metals business includes addition of certain equipments for de-bottlenecking to aluminium rolling line at Haldia is aimed at production of higher value added products as well as improving efficiency of its present production.
ICICI Securities is the book running lead manager for the issue. The equity shares of the company are presently listed on the CSE and the equity shares offered through this public issue are proposed to be listed on the BSE, NSE and the CSE.
Source: Moneycontrol.com
The company had come out with an initial public offering of 15,500,000 equity shares of Rs 2 each at a price band between Rs 140 and Rs 160 per equity share.
It had subscribed 8.79 times, according to data available on NSE website. Big support was seen from qualified institutional investors, their reserved portion subscribed 13.7 times followed by retail and HNIs with 5.09 times and 2.72 times, respectively.
The company intended to use the net proceeds of the issue for expansion of metals business by purchase of capital equipment, prepayment of certain term debt and for general corporate purposes. The expansion of metals business includes addition of certain equipments for de-bottlenecking to aluminium rolling line at Haldia is aimed at production of higher value added products as well as improving efficiency of its present production.
ICICI Securities is the book running lead manager for the issue. The equity shares of the company are presently listed on the CSE and the equity shares offered through this public issue are proposed to be listed on the BSE, NSE and the CSE.
Source: Moneycontrol.com
Reliance Power will oversubscribe hopelessly
Q: The space everyone will talk about from now up until when the IPO kicks off its power. What’s a good way to approach Reliance Power?
A: I don’t think everybody will get much allotment in the Reliance Power IPO, because it will be hopelessly oversubscribed. So you need to now focus your eyes on what happens post-listing and when you take a look at the grey market then you worry a little bit, not a little bit more than a little bit because the grey market price is somewhere around Rs 900 that’s double of the IPO price. Whatever good to that one is heard from the management on the Reliance Power IPO and there were many positives, which came through from the media conference at Rs 900 its very difficult unless the market remains in this very frothy frame of mind on the sector its extremely difficult to justify that price because at Rs 900 you are talking about 2 lakh crore marketcap for Reliance Power, you got to look four-five years out and still you will be scratching your heads to justify that.
Reliance Industries one-year back in February 2007 was at 2 lakh crores marketcap and not even a year has passed since Reliance crossed over that 2 lakh crore marketcap. But that’s apples and oranges just look at Reliance Power at Rs 900 our estimates are that in FY11 we are sitting in FY08 right now, so straight away you take a leap of three-years for generation and you may find that they have 6,000 megawatts in FY11 that’s three-years down the line assuming faultless execution.
You want to look at sales and earnings you take a bigger leap go to FY13 that’s five-years from now, FY13 what the pre-multiple would be on our expected delivery - 90. We are talking about 90-times FY13 earnings if all goes well on execution for Reliance Power at Rs 900. If you look at four-years out FY012 and attribute some sales number to the kind of generation that they have, you are almost talking about 30-times sales for FY012 that’s four-years down the line. It’s a good space and probably this company will do lots of exciting things down the line but sitting out here to justify Rs 900 per share on Reliance Power even if you have that perspective of three-four years, five-years down the line seems like a big leap of faith.
Source: Moneycontrol.com
A: I don’t think everybody will get much allotment in the Reliance Power IPO, because it will be hopelessly oversubscribed. So you need to now focus your eyes on what happens post-listing and when you take a look at the grey market then you worry a little bit, not a little bit more than a little bit because the grey market price is somewhere around Rs 900 that’s double of the IPO price. Whatever good to that one is heard from the management on the Reliance Power IPO and there were many positives, which came through from the media conference at Rs 900 its very difficult unless the market remains in this very frothy frame of mind on the sector its extremely difficult to justify that price because at Rs 900 you are talking about 2 lakh crore marketcap for Reliance Power, you got to look four-five years out and still you will be scratching your heads to justify that.
Reliance Industries one-year back in February 2007 was at 2 lakh crores marketcap and not even a year has passed since Reliance crossed over that 2 lakh crore marketcap. But that’s apples and oranges just look at Reliance Power at Rs 900 our estimates are that in FY11 we are sitting in FY08 right now, so straight away you take a leap of three-years for generation and you may find that they have 6,000 megawatts in FY11 that’s three-years down the line assuming faultless execution.
You want to look at sales and earnings you take a bigger leap go to FY13 that’s five-years from now, FY13 what the pre-multiple would be on our expected delivery - 90. We are talking about 90-times FY13 earnings if all goes well on execution for Reliance Power at Rs 900. If you look at four-years out FY012 and attribute some sales number to the kind of generation that they have, you are almost talking about 30-times sales for FY012 that’s four-years down the line. It’s a good space and probably this company will do lots of exciting things down the line but sitting out here to justify Rs 900 per share on Reliance Power even if you have that perspective of three-four years, five-years down the line seems like a big leap of faith.
Source: Moneycontrol.com
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