The initial public offering of the Ahmedabad-based Kiri Dyes and Chemicals (KDCL), manufacturer and exporters of dyes and dyes intermediates, has subscribed just 0.57 times, as per NSE website. The issue has received bids for 21.40 lakh shares as against shares on offer.
Qualified and non institutional buyers were supporters to the issue; their reserved portion subscribed by 0.92 times and 0.59 times, respectively.
The issue has opened for subscription with its IPO of 37.5 lakh equity shares of face value of Rs 10 each, to raise funds for executing its backward integration project for manufacturing three key raw materials for dye intermediates. The price-band is between Rs 125 to Rs 150 per equity share.
The shares will be listed on Bombay Stock Exchange and National Stock Exchange of India. The book running lead manager to the issue is Centrum Capital.
Source: Moneycontrol.com
Sunday, March 30, 2008
GSPC defers IPO due to market uncertainties
Gujarat State Petroleum Corporation (GSPC) has decided to come out with a Rs 4,000-6,000 crore IPO before Diwali. According to sources, the company has also short-listed a few merchant bankers including SBI Caps and JM Financial for managing the issue.
The GSPC Group flagship was planning to hit the capital market by mid-2008. The plan was, however, deferred in view of the recent market uncertainties. According to sources, financial institutions had advised the Gujarat State E&P company to review the market condition during mid-2008 and decide accordingly. The IPO proposal received an informal go-ahead from the Narendra Modi Government in February. A formal decision in this regard was expected shortly.
The public offer may part-finance the proposed development of GSPC�s Deendayal gas field (KG-OSN-2001/3) in KG Basin.
While the commerciality of the field and the proposed development is yet to be approved by the Directorate General of Hydrocarbons, the company expects the development to cost approximately $ 700 million (Rs 2,800 crore) in phase-I. The company previously claimed to have tested success in appraisal drilling for the development of KG-8 gas discovery during September-October 2007.
Confirming the IPO plans, a GSPC official told Business Line: �We are extremely hopeful that the management committee would declare the commerciality of the find shortly. In the meantime, we have started working on the field-development plan so that we may submit the same as soon as the commerciality is approved.�
Initial Estimates
On whether the company would also rope in strategic investor in the company through IPO, the official said that such options were not considered as yet. On the size of the IPO and other details, he said that while such decisions would be taken in due course of time, initial estimates suggested that the company may raise Rs 4,000-6,000 crore.
GSPC is the holding company of fully integrated GSPC Group, having presence in almost all the energy sectors including E&P, pipeline, city gas distribution, power and others. Gujarat State Petroleum Ltd � a listed company and the group�s midstream subsidiary � manages and owns the largest gas pipeline network in Gujarat. GSPC Gas is in city gas distribution business, reports The Hindu Business Line.
Source: Moneycontrol.com
The GSPC Group flagship was planning to hit the capital market by mid-2008. The plan was, however, deferred in view of the recent market uncertainties. According to sources, financial institutions had advised the Gujarat State E&P company to review the market condition during mid-2008 and decide accordingly. The IPO proposal received an informal go-ahead from the Narendra Modi Government in February. A formal decision in this regard was expected shortly.
The public offer may part-finance the proposed development of GSPC�s Deendayal gas field (KG-OSN-2001/3) in KG Basin.
While the commerciality of the field and the proposed development is yet to be approved by the Directorate General of Hydrocarbons, the company expects the development to cost approximately $ 700 million (Rs 2,800 crore) in phase-I. The company previously claimed to have tested success in appraisal drilling for the development of KG-8 gas discovery during September-October 2007.
Confirming the IPO plans, a GSPC official told Business Line: �We are extremely hopeful that the management committee would declare the commerciality of the find shortly. In the meantime, we have started working on the field-development plan so that we may submit the same as soon as the commerciality is approved.�
Initial Estimates
On whether the company would also rope in strategic investor in the company through IPO, the official said that such options were not considered as yet. On the size of the IPO and other details, he said that while such decisions would be taken in due course of time, initial estimates suggested that the company may raise Rs 4,000-6,000 crore.
GSPC is the holding company of fully integrated GSPC Group, having presence in almost all the energy sectors including E&P, pipeline, city gas distribution, power and others. Gujarat State Petroleum Ltd � a listed company and the group�s midstream subsidiary � manages and owns the largest gas pipeline network in Gujarat. GSPC Gas is in city gas distribution business, reports The Hindu Business Line.
Source: Moneycontrol.com
Bharat Oman Refineries files IPO papers with SEBI
Bharat Oman Refineries (BORL) has filed a draft red herring prospectus with the Securities and Exchange Board of India on March 28, 2008 for its initial public offering (IPO). BORL intends to raise approximately Rs 3850 crore as the equity contribution for a refinery project at Bina. BORL is promoted by Bharat Petroleum Corporation (BPCL), a fortune Global 500 Company, with interests in downstream oil refining and marketing of petroleum products.
BORL is in the process of constructing a grassroots petroleum refinery in Bina in the state of Madhya Pradesh, at an approximate capital cost of Rs 10400 crore. The project is intended to he funded with a mix of debt and equity in the ratio of 1.6:1. BORL has entered into an agreement with a consortium of lenders that provides for the debt component of approximately Rs 6400 crore.
The present issued and paid-up equity share capital of BORL is Rs 151 crore, which is primarily comprised of equity shares held by BPCL and Oman Oil Company S.A.O.C. The remaining equity of Rs 3850 crore will be raised through the issue of equity shares to BPCL, the Government of Madhya Pradesh, certain investors pursuant to a pre-IPO placement and the public pursuant to the IPO.
The refinery is designed to have a crude oil processing capacity of 6 million metric tonnes per annum and a higher complexity factor of 9.1, as measured using the Nelson Complexity Index. The project also includes a crude oil importing and storage system in Vadinar in the state of Gujarat, consisting of a single point mooring facility that can receive crude oil shipments from very large crude carriers in sizes of up to 320,000 dead weight tonnage and a crude oil terminal with a capacity of 480,000 cubic meters. The crude oil terminal will be connected to the refinery through an approximately 935 kilometer long crude oil supply pipeline. The project also includes a 99 megawatt captive co-generation power plant that will meet the power and steam requirements of the refinery. Petroleum coke produced by the refinery will be utilised towards the fuel requirements for this power plant. The refinery is expected to commence commercial operations in or around January 2010.
BORL has entered into an off-take agreement with BPCL pursuant to which BPCL has agreed to purchase substantially all of the refinery's petroleum products. BPCL intends to construct a marketing terminal at Bina and a pipeline connecting the marketing terminal to its existing product pipeline to enable it to transport a portion of refinery's petroleum products through its existing distribution channels. BORL will draw upon BPCL's project execution skills to help BORL to complete the project on schedule. BORL expects to realize significant operational synergies with BPCL, including with respect to crude sourcing, operations and maintenance, marketing of petroleum products and sharing of petroleum-related infrastructure.
The Government of Madhya Pradesh has granted several financial benefits and fiscal concessions to BORL in connection with the construction and operation of the refinery.
BORL believes that its project strategies, such as the flexibility in the design for crude processing at the refinery, the superior product slate of the refinery, including premium quality auto fuels with ultra low sulfur specification (maximum), the strategic location of the crude import facility, freight advantages resulting from the inland location of the refinery and potential residue upgrade to value-added products will enhance its gross refining margins.
Source: Moneycontrol.com
BORL is in the process of constructing a grassroots petroleum refinery in Bina in the state of Madhya Pradesh, at an approximate capital cost of Rs 10400 crore. The project is intended to he funded with a mix of debt and equity in the ratio of 1.6:1. BORL has entered into an agreement with a consortium of lenders that provides for the debt component of approximately Rs 6400 crore.
The present issued and paid-up equity share capital of BORL is Rs 151 crore, which is primarily comprised of equity shares held by BPCL and Oman Oil Company S.A.O.C. The remaining equity of Rs 3850 crore will be raised through the issue of equity shares to BPCL, the Government of Madhya Pradesh, certain investors pursuant to a pre-IPO placement and the public pursuant to the IPO.
The refinery is designed to have a crude oil processing capacity of 6 million metric tonnes per annum and a higher complexity factor of 9.1, as measured using the Nelson Complexity Index. The project also includes a crude oil importing and storage system in Vadinar in the state of Gujarat, consisting of a single point mooring facility that can receive crude oil shipments from very large crude carriers in sizes of up to 320,000 dead weight tonnage and a crude oil terminal with a capacity of 480,000 cubic meters. The crude oil terminal will be connected to the refinery through an approximately 935 kilometer long crude oil supply pipeline. The project also includes a 99 megawatt captive co-generation power plant that will meet the power and steam requirements of the refinery. Petroleum coke produced by the refinery will be utilised towards the fuel requirements for this power plant. The refinery is expected to commence commercial operations in or around January 2010.
BORL has entered into an off-take agreement with BPCL pursuant to which BPCL has agreed to purchase substantially all of the refinery's petroleum products. BPCL intends to construct a marketing terminal at Bina and a pipeline connecting the marketing terminal to its existing product pipeline to enable it to transport a portion of refinery's petroleum products through its existing distribution channels. BORL will draw upon BPCL's project execution skills to help BORL to complete the project on schedule. BORL expects to realize significant operational synergies with BPCL, including with respect to crude sourcing, operations and maintenance, marketing of petroleum products and sharing of petroleum-related infrastructure.
The Government of Madhya Pradesh has granted several financial benefits and fiscal concessions to BORL in connection with the construction and operation of the refinery.
BORL believes that its project strategies, such as the flexibility in the design for crude processing at the refinery, the superior product slate of the refinery, including premium quality auto fuels with ultra low sulfur specification (maximum), the strategic location of the crude import facility, freight advantages resulting from the inland location of the refinery and potential residue upgrade to value-added products will enhance its gross refining margins.
Source: Moneycontrol.com
Thursday, March 27, 2008
Latest Grey Market Premium Rates Dt: 27th March 2008
Grey Market Premium Rates
| Company | Open/Close | Offer Price | Premium | Kostak Rates |
|---|---|---|---|---|
| Kiri Dyes & Chemicals Ltd | 25 Mar - 02 Apr | 125 to 150 | 11 to 14 | ------- |
| Titagarh Wagons Limited | 24 Mar - 27 Mar | 540 to 610 | 35 to 55 | ------- |
| Sita Shree Food Products Limited | 11 Mar - 14 Mar | 27 to 30 | 6 to 9 | ------- |
| Gammon Infrastructure Projects Limited | 10 Mar - 13 Mar | 167 to 200 | 6 to 10 | ------- |
Titagarh Wagons IPO subscribed 6.75 times
The initial public offering of a private sector railway wagon manufacturer, Titagarh Wagons (TWL), has subscribed 6.75 times. It has received bids for 1.60 crore shares as against 23.83 lakh shares on public offer, till 5.30 pm today.
Till now, qualified institutional investors have supported the issue, their reserved portion of 14.21 lakh shares received bids for 1.47 crore shares and got subscribed 10.36 times.
The issue will close on March 27, 2008. The price band is between Rs 540 and Rs 610 per equity share. The net issue will constitute 12.8% of the post issue capital of the company.
It is primarily engaged in the business of manufacturing railway wagons, heavy earth moving and mining equipment, bailey bridges, steel and SG iron castings.
The objects of the Issue are to utilise the proceeds of the Fresh Issue towards the purposes of a) Setting up an EMU manufacturing facility at Uttarpara unit, b) Modernising and expanding the existing facilities at Titagarh and Uttarpara units, c) Setting up an axle machining and wheelset assembly facility at Uttarpara unit, d) Constructing a corporate office and a design cum research and development office, e) Strategic acquisition or investments, f) Brand building exercise and g) General corporate purposes.
The Company proposes to list its equity shares on the Bombay Stock Exchange and the National Stock Exchange. The book running lead manager to the issue is Kotak Mahindra Capital Company Limited and the co-book running lead manager is JM Financial Consultants Private Limited.
Source: Moneycontrol.com
Till now, qualified institutional investors have supported the issue, their reserved portion of 14.21 lakh shares received bids for 1.47 crore shares and got subscribed 10.36 times.
The issue will close on March 27, 2008. The price band is between Rs 540 and Rs 610 per equity share. The net issue will constitute 12.8% of the post issue capital of the company.
It is primarily engaged in the business of manufacturing railway wagons, heavy earth moving and mining equipment, bailey bridges, steel and SG iron castings.
The objects of the Issue are to utilise the proceeds of the Fresh Issue towards the purposes of a) Setting up an EMU manufacturing facility at Uttarpara unit, b) Modernising and expanding the existing facilities at Titagarh and Uttarpara units, c) Setting up an axle machining and wheelset assembly facility at Uttarpara unit, d) Constructing a corporate office and a design cum research and development office, e) Strategic acquisition or investments, f) Brand building exercise and g) General corporate purposes.
The Company proposes to list its equity shares on the Bombay Stock Exchange and the National Stock Exchange. The book running lead manager to the issue is Kotak Mahindra Capital Company Limited and the co-book running lead manager is JM Financial Consultants Private Limited.
Source: Moneycontrol.com
Await listing of Titagarh Wagons
Keynote Capitals has come out with report on Titagarh Wagons' IPO. It has recommended investors to await listing.
It has opened for subscription with its initial public offering (IPO) of 2.383 million Equity Shares of face value Rs 10 each. The issue will close on March 27, 2008. The price band has been fixed at Rs 540 to Rs 610 per equity share.
Keynote Capitals' report on Titagarh Wagons IPO
* Titagarh Wagons (TWL) is predominantly a railway wagon manufacturer (80% of FY07 sales) catering to the needs of Indian Railways (IRs) and non-Indian Railways customers (NIRs).
* In order to de-risk its business model, TWL is diversifying into earth moving and mining equipment. Further, it has acquired a steel foundry and is in the process of setting up a wheelset assembly and axle machining shop, leading to backward integration.
* In order to develop aluminium wagons which are lighter and more efficient than the steel wagons, TWL has signed a JV with FreightCar America, a leading manufacturer of wagons.
* The healthy order book of Rs 753 crore will get reflected in the financials in the next two years. Also the strong balance sheet with low post-issue gearing of 0.09x would help in exploring new opportunities including acquisitions.However,the industry’s pricing power may be under pressure going forward, which may cap margin expansion.
* The revenue and net earnings saw aggressive growth during FY04-07, at CAGR of 69.6% and 90% respectively. Due to the higher base, expect growth trajectory to taper off (CAGR of 39.5% and 34.9%) over FY07-10.
* Concerns include poor track record of the promoter group in shareholder wealth creation (no dividends from group companies Continental Valves Ltd. and Titagarh Steels Ltd.) and also poor corporate governance track record (delisting of Continental Valves Ltd. from the BSE during 1999-2003).
Valuation:
The IPO pricing, at 18.5x FY09 and 15.7x FY10 earnings, is expensive vis-à-vis domestic peer Texmaco (16.5x FY09 and 12.5x FY10) and larger global peers FreightCar America (14.8x FY09 and 12.7x FY10) and American Rail Industries (9.5x FY09 and 8.7x FY10). Given the robust growth prospects of the industry and strong company fundamentals, we recommend investors to await listing.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Source: Moneycontrol.com
It has opened for subscription with its initial public offering (IPO) of 2.383 million Equity Shares of face value Rs 10 each. The issue will close on March 27, 2008. The price band has been fixed at Rs 540 to Rs 610 per equity share.
Keynote Capitals' report on Titagarh Wagons IPO
* Titagarh Wagons (TWL) is predominantly a railway wagon manufacturer (80% of FY07 sales) catering to the needs of Indian Railways (IRs) and non-Indian Railways customers (NIRs).
* In order to de-risk its business model, TWL is diversifying into earth moving and mining equipment. Further, it has acquired a steel foundry and is in the process of setting up a wheelset assembly and axle machining shop, leading to backward integration.
* In order to develop aluminium wagons which are lighter and more efficient than the steel wagons, TWL has signed a JV with FreightCar America, a leading manufacturer of wagons.
* The healthy order book of Rs 753 crore will get reflected in the financials in the next two years. Also the strong balance sheet with low post-issue gearing of 0.09x would help in exploring new opportunities including acquisitions.However,the industry’s pricing power may be under pressure going forward, which may cap margin expansion.
* The revenue and net earnings saw aggressive growth during FY04-07, at CAGR of 69.6% and 90% respectively. Due to the higher base, expect growth trajectory to taper off (CAGR of 39.5% and 34.9%) over FY07-10.
* Concerns include poor track record of the promoter group in shareholder wealth creation (no dividends from group companies Continental Valves Ltd. and Titagarh Steels Ltd.) and also poor corporate governance track record (delisting of Continental Valves Ltd. from the BSE during 1999-2003).
Valuation:
The IPO pricing, at 18.5x FY09 and 15.7x FY10 earnings, is expensive vis-à-vis domestic peer Texmaco (16.5x FY09 and 12.5x FY10) and larger global peers FreightCar America (14.8x FY09 and 12.7x FY10) and American Rail Industries (9.5x FY09 and 8.7x FY10). Given the robust growth prospects of the industry and strong company fundamentals, we recommend investors to await listing.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Source: Moneycontrol.com
Tuesday, March 25, 2008
Kiri Dyes IPO opens for subscription
The Ahmedabad-based Kiri Dyes and Chemicals (KDCL), manufacturer and exporters of dyes and dyes intermediates, is open for subscription with its initial public offering (IPO) of 37.5 lakh equity shares of face value of Rs 10 each, to raise funds for executing its backward integration project for manufacturing three key raw materials for dye intermediates. The price-band has been fixed at Rs 125 to Rs 150 per equity share.
The company has made pre-IPO placement of 12.50 lakh equity shares to an investor, the amount aggregating to Rs 14.44 crore, which the company proposes to utilise towards the objects of the issue.
The backward integration project is proposed to be located in Vadodara district and will have combined production capacity of 1.80 lakh mtpa. The company is setting up the plant with latest double-absorption technology and a power plant of 2.9 MW capacity, which can run from the steam generated by the sulphuric acid plant. With the implementation of backward integration project for manufacturing of intermediates, the company aims to enhance market share and capitalise on the opportunity for high growth in chemicals and dyes industry with reduction in operating costs, research and development, quality controls, and offer competitive price to domestic and international players.
The shares will be listed on Bombay Stock Exchange and National Stock Exchange of India. The book running lead manager to the issue is Centrum Capital.
Source: Moneycontrol.com
The company has made pre-IPO placement of 12.50 lakh equity shares to an investor, the amount aggregating to Rs 14.44 crore, which the company proposes to utilise towards the objects of the issue.
The backward integration project is proposed to be located in Vadodara district and will have combined production capacity of 1.80 lakh mtpa. The company is setting up the plant with latest double-absorption technology and a power plant of 2.9 MW capacity, which can run from the steam generated by the sulphuric acid plant. With the implementation of backward integration project for manufacturing of intermediates, the company aims to enhance market share and capitalise on the opportunity for high growth in chemicals and dyes industry with reduction in operating costs, research and development, quality controls, and offer competitive price to domestic and international players.
The shares will be listed on Bombay Stock Exchange and National Stock Exchange of India. The book running lead manager to the issue is Centrum Capital.
Source: Moneycontrol.com
Monday, March 24, 2008
Recently listed realty IPOs slip below issue price
Market has not been showing any signs of recovery yet. It has been reacting to weak global cues like subprime crisis, Yen carry trade, slowdown in US etc since second half of January. Due to this heavy selling pressure from FIIs, market sentiment has worsened; retail investors have not been showing any confidence. Due to this Sensex slipped below 15000 mark in the last week.
Stocks and sectors have collapsed like pack of card. Real estate sector is one of them, which was the worst hit; BSE Realty Index crashed 52% from its all time high of 13848.09. It has touched a low of 6,625.23 in today’s trade.
There is a big news, which impacted the Mumbai based realty players that Bombay HC dismissed petitions of developers on 'Declared Forest Land' in Mumbai. This Bombay HC Verdict is going to impact construction on 1000 acres land in Suburban Mumbai, Thane. The court has declared Kandivali, Mulund, Thane and Ghatkopar stretches as Forest land.
Pure real estate stocks, which got listed in the last two years, have been getting closer to its issue price or some are trading below issue price. There are nine pure real estate stocks, out of which 2/3 stocks have slipped nearly 40-50% below issue price. In the last bull run till January first half stocks were available at 52-week highs. But now the same stocks are cheaper by 50-70% from that 52-week high.
Omaxe has hit 52-week high of Rs 613 as against its issue price of Rs 310 and now it is trading at around Rs 182, down more than 70% from that high. Similar is the case with Parsvnath, Kolte Patil, Puravankara and many more…
Source: Moneycontrol.com
Stocks and sectors have collapsed like pack of card. Real estate sector is one of them, which was the worst hit; BSE Realty Index crashed 52% from its all time high of 13848.09. It has touched a low of 6,625.23 in today’s trade.
There is a big news, which impacted the Mumbai based realty players that Bombay HC dismissed petitions of developers on 'Declared Forest Land' in Mumbai. This Bombay HC Verdict is going to impact construction on 1000 acres land in Suburban Mumbai, Thane. The court has declared Kandivali, Mulund, Thane and Ghatkopar stretches as Forest land.
Pure real estate stocks, which got listed in the last two years, have been getting closer to its issue price or some are trading below issue price. There are nine pure real estate stocks, out of which 2/3 stocks have slipped nearly 40-50% below issue price. In the last bull run till January first half stocks were available at 52-week highs. But now the same stocks are cheaper by 50-70% from that 52-week high.
Omaxe has hit 52-week high of Rs 613 as against its issue price of Rs 310 and now it is trading at around Rs 182, down more than 70% from that high. Similar is the case with Parsvnath, Kolte Patil, Puravankara and many more…
Source: Moneycontrol.com
Experts reaction mixed on Titagarh Wagons IPO
Titagarh Wagons (TWL), a private sector railway wagon manufacturer in India, primarily engaged in the business of manufacturing railway wagons, heavy earth moving and mining equipment, bailey bridges, steel and SG iron castings, has opened for subscription with its initial public offering (IPO) of 23,83,768 equity shares of Rs 10 for cash at a price to be determined through 100% book building process. The issue will close on March 27, 2008. The price band has been fixed between Rs 540 and Rs 610 per equity share.
The issue comprises a fresh issue of 20,68,111 equity shares and an offer for sale of 3,15,657 equity shares by Mrs Rashmi Chowdhary and Strategic Ventures Fund (Mauritius) Limited (the selling shareholders). The issue consists of a net issue of 23,68,768 equity shares and a reservation of up to 15,000 equity shares for subscription by eligible employees. The net issue will constitute 12.8% of the post issue capital of the company.
The objects of the Issue are to utilise the proceeds of the Fresh Issue towards the purposes of a) Setting up an EMU manufacturing facility at Uttarpara unit, b) Modernising and expanding the existing facilities at Titagarh and Uttarpara units, c) Setting up an axle machining and wheelset assembly facility at Uttarpara unit, d) Constructing a corporate office and a design cum research and development office, e) Strategic acquisition or investments, f) Brand building exercise and g) General corporate purposes.
The order book of the cmpany stands at Rs 7,531.1 million with the rolling stock division constituting nearly Rs 6,693.9 million as on January 31, 2008.
The Company proposes to list its equity shares on the Bombay Stock Exchange and the National Stock Exchange. The book running lead manager to the issue is Kotak Mahindra Capital Company Limited and the co-book running lead manager is JM Financial Consultants Private Limited.
Source: Moneycontrol.com
The issue comprises a fresh issue of 20,68,111 equity shares and an offer for sale of 3,15,657 equity shares by Mrs Rashmi Chowdhary and Strategic Ventures Fund (Mauritius) Limited (the selling shareholders). The issue consists of a net issue of 23,68,768 equity shares and a reservation of up to 15,000 equity shares for subscription by eligible employees. The net issue will constitute 12.8% of the post issue capital of the company.
The objects of the Issue are to utilise the proceeds of the Fresh Issue towards the purposes of a) Setting up an EMU manufacturing facility at Uttarpara unit, b) Modernising and expanding the existing facilities at Titagarh and Uttarpara units, c) Setting up an axle machining and wheelset assembly facility at Uttarpara unit, d) Constructing a corporate office and a design cum research and development office, e) Strategic acquisition or investments, f) Brand building exercise and g) General corporate purposes.
The order book of the cmpany stands at Rs 7,531.1 million with the rolling stock division constituting nearly Rs 6,693.9 million as on January 31, 2008.
The Company proposes to list its equity shares on the Bombay Stock Exchange and the National Stock Exchange. The book running lead manager to the issue is Kotak Mahindra Capital Company Limited and the co-book running lead manager is JM Financial Consultants Private Limited.
Source: Moneycontrol.com
Wednesday, March 19, 2008
Crisil assigns IPO grade 4/5 to UTI Asset Management
Crisil has come out with report on UTI Asset Management Company IPO. It has assigned Grade 4/5 to its IPO. UTI AMC is planning to raise Rs 23-24 billion by this proposed offer for sale of 48,500,000 equity shares.
Crisil report on UTI Asset Management Company IPO
Crisil has assigned a CRISIL IPO Grade "4/5" to the proposed initial public offer of UTI Asset Management Company (UTI AMC). This grade indicates that the fundamentals of the issue are above average relative to other listed equity securities in India. However, this grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals. The offer price for the issue may be higher or lower than the level justified by its fundamentals. The grade is not a recommendation to buy / sell or hold the graded instrument, the graded instrument's future market price or its suitability for a particular investor.
The grading reflects UTI AMC's position as one of the leading players in the mutual funds industry. The company has a higher proportion of retail and equity assets under management (AUM) as compared to other players by virtue of its strong retail distribution channel and brand recognition. The retail base helps UTI AMC to better manage the churn of assets, while the higher proportion of equity provides higher recurring management fees as compared to debt funds. The grading reflects CRISIL's expectation that the management will be able to harness these strengths to mobilise mutual fund assets and
register growth to substitute the expected decline in income from the Specified Undertaking of Unit Trust of India (SUUTI*). CRISIL also expects that in spite of being a specialised asset management company; UTI AMC will be able to effectively compete with universal service providers like the ICICI group, the HDFC group and the Reliance (ADAG) group.
The grading has factored in the undifferentiated nature of products offered by the mutual funds industry in India. This and customers' lack of knowledge about the product, leads to high bargaining power of distributors' vis-à-vis AMCs in the MF Industry. Consequently, distributors command a majority of the surplus made in the AMC business. Further, increasing competition and proactive policy changes by the regulator may put pressure on management fees in the AMC business in future. CRISIL believes that more pro-activeness on part of the management will be critical to capture emerging opportunities in the fast changing asset management businesses like domestic portfolio management services and private equity.
The choice of the pre-IPO strategic investors, their role in UTI AMC's management and the utilisation of proceeds garnered through private placement can have a material impact on the company's business profile.
About the company and the issue
UTI Asset Management Company was formed as a result of the bifurcation of the erstwhile Unit Trust of India into two entities in October 2002. UTI AMC, in its new form, commenced operations with effect from February 1, 2003. Four government-owned sponsors - State Bank of India, LIC, Punjab National Bank, and Bank of Baroda - took equal stakes in the UTI AMC. Subsequent to the IPO the sponsors would still hold majority stake of about 54 per cent.
UTI AMC is one of the largest players in Indian mutual fund industry, with a market share of around 10.3 per cent as of December 2007. UTI AMC has 8.1 million retail investors spread across 455 cities accounting for 51.2 percent of the total domestic AUM.
The company also offers PMS to its clients. As of September 2007, UTI AMC's PMS business had around 320 clients and assets under management (AUM) amounting to Rs 21,609 million.
In addition, UTI AMC has three wholly-owned subsidiaries:
* UTI Venture Funds Management Company Pvt. Ltd (UTIVF), which has till date launched 2 funds with total committed corpus of about Rs 8,535 million
* UTI International Limited (UTIIL), which markets UTI AMC's domestic funds overseas and manages the assets and services investors of its offshore funds. As of September 2007, the total AUM of overseas funds was Rs 17,840 million
* UTI Retirement Solutions Ltd. that has been floated to manage the assets of Pension Fund Regulatory Development Authority
In 2006-07, UTI AMC reported a net profit of Rs 1,529 million on a turnover of Rs 4,096 million. This is as against net profit and revenues of Rs 1,747 million and Rs 3,921 million respectively in 2005-06.
UTI AMC aims to raise Rs 23 billion to Rs 24 billion by this proposed offer for sale of 48,500,000 equity shares.
* SUUTI was formed subsequent to the bifurcation of the erstwhile UTI into two separate entities. It is vested with the assets of UTI's US-64 and assured return funds, while UTI AMC manages all SEBI-compliant schemes. UTI AMC
provides support services such as fund administration, accounting, and investor services to SUUTI.
Source: Moneycontrol.com
Crisil report on UTI Asset Management Company IPO
Crisil has assigned a CRISIL IPO Grade "4/5" to the proposed initial public offer of UTI Asset Management Company (UTI AMC). This grade indicates that the fundamentals of the issue are above average relative to other listed equity securities in India. However, this grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals. The offer price for the issue may be higher or lower than the level justified by its fundamentals. The grade is not a recommendation to buy / sell or hold the graded instrument, the graded instrument's future market price or its suitability for a particular investor.
The grading reflects UTI AMC's position as one of the leading players in the mutual funds industry. The company has a higher proportion of retail and equity assets under management (AUM) as compared to other players by virtue of its strong retail distribution channel and brand recognition. The retail base helps UTI AMC to better manage the churn of assets, while the higher proportion of equity provides higher recurring management fees as compared to debt funds. The grading reflects CRISIL's expectation that the management will be able to harness these strengths to mobilise mutual fund assets and
register growth to substitute the expected decline in income from the Specified Undertaking of Unit Trust of India (SUUTI*). CRISIL also expects that in spite of being a specialised asset management company; UTI AMC will be able to effectively compete with universal service providers like the ICICI group, the HDFC group and the Reliance (ADAG) group.
The grading has factored in the undifferentiated nature of products offered by the mutual funds industry in India. This and customers' lack of knowledge about the product, leads to high bargaining power of distributors' vis-à-vis AMCs in the MF Industry. Consequently, distributors command a majority of the surplus made in the AMC business. Further, increasing competition and proactive policy changes by the regulator may put pressure on management fees in the AMC business in future. CRISIL believes that more pro-activeness on part of the management will be critical to capture emerging opportunities in the fast changing asset management businesses like domestic portfolio management services and private equity.
The choice of the pre-IPO strategic investors, their role in UTI AMC's management and the utilisation of proceeds garnered through private placement can have a material impact on the company's business profile.
About the company and the issue
UTI Asset Management Company was formed as a result of the bifurcation of the erstwhile Unit Trust of India into two entities in October 2002. UTI AMC, in its new form, commenced operations with effect from February 1, 2003. Four government-owned sponsors - State Bank of India, LIC, Punjab National Bank, and Bank of Baroda - took equal stakes in the UTI AMC. Subsequent to the IPO the sponsors would still hold majority stake of about 54 per cent.
UTI AMC is one of the largest players in Indian mutual fund industry, with a market share of around 10.3 per cent as of December 2007. UTI AMC has 8.1 million retail investors spread across 455 cities accounting for 51.2 percent of the total domestic AUM.
The company also offers PMS to its clients. As of September 2007, UTI AMC's PMS business had around 320 clients and assets under management (AUM) amounting to Rs 21,609 million.
In addition, UTI AMC has three wholly-owned subsidiaries:
* UTI Venture Funds Management Company Pvt. Ltd (UTIVF), which has till date launched 2 funds with total committed corpus of about Rs 8,535 million
* UTI International Limited (UTIIL), which markets UTI AMC's domestic funds overseas and manages the assets and services investors of its offshore funds. As of September 2007, the total AUM of overseas funds was Rs 17,840 million
* UTI Retirement Solutions Ltd. that has been floated to manage the assets of Pension Fund Regulatory Development Authority
In 2006-07, UTI AMC reported a net profit of Rs 1,529 million on a turnover of Rs 4,096 million. This is as against net profit and revenues of Rs 1,747 million and Rs 3,921 million respectively in 2005-06.
UTI AMC aims to raise Rs 23 billion to Rs 24 billion by this proposed offer for sale of 48,500,000 equity shares.
* SUUTI was formed subsequent to the bifurcation of the erstwhile UTI into two separate entities. It is vested with the assets of UTI's US-64 and assured return funds, while UTI AMC manages all SEBI-compliant schemes. UTI AMC
provides support services such as fund administration, accounting, and investor services to SUUTI.
Source: Moneycontrol.com
Tuesday, March 18, 2008
84% new listings in 2008 crash below issue price
Markets have knocked down very badly today on the back of weak US cues, which impacted global markets as well. Sensex plunges more than 1000 points and slipped below 15000 mark during the day. Largecap stocks are also hitting new 52-week lows following midcap stocks. The impact of secondary market has seen on primary market as well.
19 stocks have listed in the year 2008, out of which 84% or 16 stocks are below their issue price. Porwal Auto fell 68% at Rs 24.05 as against its issue price of Rs 75, Manaksia closed at Rs 62.55, down 61% from its issue price and Precision Pipes dipped by 58% to Rs 62.85 versus offer price of Rs 150.
Half of the stocks have slumped more than 30%. Amongst the big listings, ADAG’s Reliance Power (collected more than Rs 11,000 crore) and Kishore Biyani’s Future Capital (raised over Rs 450 crore) plummeted nearly 30-31%. Rural Electrification, which raised over Rs 1600 crore, also fell below issue price today.
However, GSS America, Onmobile Global and Burnpur Cement are still above their issue price, gained 50%, 12% and 85%, respectively.
Source: Moneycontrol.com
19 stocks have listed in the year 2008, out of which 84% or 16 stocks are below their issue price. Porwal Auto fell 68% at Rs 24.05 as against its issue price of Rs 75, Manaksia closed at Rs 62.55, down 61% from its issue price and Precision Pipes dipped by 58% to Rs 62.85 versus offer price of Rs 150.
Half of the stocks have slumped more than 30%. Amongst the big listings, ADAG’s Reliance Power (collected more than Rs 11,000 crore) and Kishore Biyani’s Future Capital (raised over Rs 450 crore) plummeted nearly 30-31%. Rural Electrification, which raised over Rs 1600 crore, also fell below issue price today.
However, GSS America, Onmobile Global and Burnpur Cement are still above their issue price, gained 50%, 12% and 85%, respectively.
Company | Issue Price | Current Price | % Gain / Loss |
| Porwal Auto | 75 | 24.05 | -67.93 |
| Manaksia | 160 | 62.55 | -60.91 |
| Precision Pipes | 150 | 62.85 | -58.1 |
| Bang Overseas | 207 | 98.7 | -52.32 |
| KNR Construct | 170 | 100 | -41.18 |
| Cords Cable Ind | 135 | 87.35 | -35.3 |
| Shriram EPC | 300 | 202 | -32.67 |
| J Kumar Infra | 110 | 74.15 | -32.59 |
| Future Capital | 765 | 529.4 | -30.8 |
| Reliance Power | 450 | 316.95 | -29.57 |
| BGR Energy | 480 | 351.65 | -26.74 |
| Tulsi Extrusion | 85 | 73 | -14.12 |
| V-Guard Ind | 82 | 71.2 | -13.17 |
| Aries Agro | 130 | 125.75 | -3.27 |
| IRB Infra | 185 | 180.65 | -2.35 |
| Rural Elect Cor | 105 | 104.65 | -0.33 |
| OnMobile Global | 440 | 493.75 | 12.22 |
| GSS America Inf | 400 | 599.3 | 49.82 |
| Burnpur Cement | 12 | 22.2 | 85 |
Source: Moneycontrol.com
Gammon Infrastructure fixes issue price at Rs 167
Gammon Infrastructure Projects (GIPL), an infrastructure project development company promoted by the 85-year old Gammon Group, has fixed the issue price at Rs 167 for its initial public offering (IPO) of 1,65,50,000 equity shares of par value Rs 10 each for the above issue price determined through the 100% book building process.
The issue closed on March 13, 2008, and was subscribed 3.48 times (according to the preliminary information received by the stock exchanges). The qualified institutional bidders portion was subscribed approximately 5.17 times; the non-institutional bidders portion was subscribed approximately 3.79 times; the retail portion was subscribed approximately 1.07 times; employee reservation portion was subscribed approximately 0.53 times.
The issue comprises a net issue of 1,48,95,000 equity shares to the public and a reservation of 16,55,000 equity shares for eligible employees. The issue and the net issue will constitute 11.45% and 10.30% respectively of the post-issue paid up equity share capital of the Company. The equity shares will be listed on the National Stock Exchange and the Bombay Stock Exchange.
Presently, GIPL undertakes and develops projects such as roads, bridges, ports, hydroelectric power and biomass power projects on a PPP basis. Presently, GIPL’s infrastructure project development business includes fourteen projects, of which four are already in the operations phase, seven are in the development phase and three are in the pre-development phase. GIPL also provides O&M and project advisory services for projects which are being undertaken by the project specific companies.
The book running lead managers to the issue are IDFC-SSKI Private Limited and Macquarie Capital Advisers (India) Private Limited. The co-book running lead manager to the Issue is Collins Stewart Inga Private Limited.
Source: Moneycontrol.com
The issue closed on March 13, 2008, and was subscribed 3.48 times (according to the preliminary information received by the stock exchanges). The qualified institutional bidders portion was subscribed approximately 5.17 times; the non-institutional bidders portion was subscribed approximately 3.79 times; the retail portion was subscribed approximately 1.07 times; employee reservation portion was subscribed approximately 0.53 times.
The issue comprises a net issue of 1,48,95,000 equity shares to the public and a reservation of 16,55,000 equity shares for eligible employees. The issue and the net issue will constitute 11.45% and 10.30% respectively of the post-issue paid up equity share capital of the Company. The equity shares will be listed on the National Stock Exchange and the Bombay Stock Exchange.
Presently, GIPL undertakes and develops projects such as roads, bridges, ports, hydroelectric power and biomass power projects on a PPP basis. Presently, GIPL’s infrastructure project development business includes fourteen projects, of which four are already in the operations phase, seven are in the development phase and three are in the pre-development phase. GIPL also provides O&M and project advisory services for projects which are being undertaken by the project specific companies.
The book running lead managers to the issue are IDFC-SSKI Private Limited and Macquarie Capital Advisers (India) Private Limited. The co-book running lead manager to the Issue is Collins Stewart Inga Private Limited.
Source: Moneycontrol.com
Monday, March 17, 2008
Latest Grey Market Premium Rates DT: 17th March 2008
| Company | Open/Close | Offer Price | Premium | Kostak Rates |
|---|---|---|---|---|
| Kiri Dyes & Chemicals Ltd | 25 Mar - 02 Apr | 125 to 150 | 12 to 15 | ------- |
| Titagarh Wagons Limited | 24 Mar - 27 Mar | 540 to 610 | 30 to 35 | ------- |
| Sita Shree Food Products Limited | 11 Mar - 14 Mar | 27 to 30 | 4 to 5 | ------- |
| Gammon Infrastructure Projects Limited | 10 Mar - 13 Mar | 167 to 200 | 4 to 4.50 | ------- |
Friday, March 14, 2008
Titagarh Wagons IPO opens on Mar 24, price band Rs 540-610
Titagarh Wagons is entering capital market with an initial public offering, IPO of 24.87 lakh shares, including fresh sale of 3.15 lakh shares by Mrs Savitri Devi and Strategic Ventures Fund (Mauritius), of face value Rs 10 each on March 24. The price band has been fixed at Rs 540 to Rs 610. The issue will close on March 27, 2008.
It is planning to raise approximately Rs 129 crore to Rs 145 crore, out of which the company will get Rs 111.6 crore to Rs 126 crore. Issue will constitute 15% of post issue paid up capital.
Amongst PE investments, Blackstone has picked up a minority interest in Titagarh Wagons for Rs 672 a share, which is the fifth major investor to put money in Titagarh Wagons. Other investors include GE Capital Infrastructure (15%), JP Morgan (5%), 2i Capital (6%) and ChrysCapital (6.5%).
Money raised through this issue will be used for setting up an EMU manufacturing facility at Uttarpara unit, modernising and expanding the existing facilities at Titagarh and Uttarpara units, setting up an axle machining and wheelset assembly facility at Uttarpara unit, constructing a corporate office and a design cum research and development office. Money will also be used for strategic acquisition or investments and brand building exercise and General corporate purposes.
Titagarh Wagons is a leading private sector wagon manufacturer in India. It manufactures railway wagons, Bailey bridges, Heavy Earth Moving and Mining equipment, steel and SG iron castings of moderate to complex configuration etc. It is an Industry Partner to Defence Research and Development Organization, Ministry of Defence, manufactures special purpose wagons, shelters and other engineering equipments for defence.
It is into three broad business lines: a) wagon manufacturing, b) special projects (includes defence, bailey bridges and other fabricated equipment) and c) heavy earth moving and mining equipment division.
Current order book stands at Rs 753.11 crore. Rolling stock division is constituting nearly Rs 669.39 crore as on January 31, 2008.
Its subsidiary Titagarh Biotec Private (holds 98.14%), engaged in cultivating, producing, buying and selling all kinds of agricultural and forests produce. Wagon manufacturing business contributes around 86% of total income. 80% of the Order book for wagons comes from Railway.
Since Fiscal 2003, Sales and PBT CAGR stood at 57% and 76%. Wagon dispatches have increased from 644 wagons in 2003 to 2,073 wagons in Fiscal 2007.
Source: Moneycontrol.com
It is planning to raise approximately Rs 129 crore to Rs 145 crore, out of which the company will get Rs 111.6 crore to Rs 126 crore. Issue will constitute 15% of post issue paid up capital.
Amongst PE investments, Blackstone has picked up a minority interest in Titagarh Wagons for Rs 672 a share, which is the fifth major investor to put money in Titagarh Wagons. Other investors include GE Capital Infrastructure (15%), JP Morgan (5%), 2i Capital (6%) and ChrysCapital (6.5%).
Money raised through this issue will be used for setting up an EMU manufacturing facility at Uttarpara unit, modernising and expanding the existing facilities at Titagarh and Uttarpara units, setting up an axle machining and wheelset assembly facility at Uttarpara unit, constructing a corporate office and a design cum research and development office. Money will also be used for strategic acquisition or investments and brand building exercise and General corporate purposes.
Titagarh Wagons is a leading private sector wagon manufacturer in India. It manufactures railway wagons, Bailey bridges, Heavy Earth Moving and Mining equipment, steel and SG iron castings of moderate to complex configuration etc. It is an Industry Partner to Defence Research and Development Organization, Ministry of Defence, manufactures special purpose wagons, shelters and other engineering equipments for defence.
It is into three broad business lines: a) wagon manufacturing, b) special projects (includes defence, bailey bridges and other fabricated equipment) and c) heavy earth moving and mining equipment division.
Current order book stands at Rs 753.11 crore. Rolling stock division is constituting nearly Rs 669.39 crore as on January 31, 2008.
Its subsidiary Titagarh Biotec Private (holds 98.14%), engaged in cultivating, producing, buying and selling all kinds of agricultural and forests produce. Wagon manufacturing business contributes around 86% of total income. 80% of the Order book for wagons comes from Railway.
Since Fiscal 2003, Sales and PBT CAGR stood at 57% and 76%. Wagon dispatches have increased from 644 wagons in 2003 to 2,073 wagons in Fiscal 2007.
Source: Moneycontrol.com
Sita Shree Food IPO subscribed fully
The initial public offering of Sita Shree Food Products has managed to subscribe fully. The issue received bids for 1.16 crore shares.
The issue has opened for subscription with an initial public offering equity shares of Rs 10 each at a price band of Rs 27-30 per share aggregating Rs 31.5 crore. Equity shares are proposed to be listing on the BSE and NSE.
The objects of the issue are to Finance the capital expenditure programs - setting up a Solvent Extraction Plant having 500TPD capacity, setting up a oil refinery for Solvent Extraction Plant having 100TPD capacity, setting up a Lecithin plant for processing the by products of Solvent Extraction Plant having 5TPD capacity at Badia Kima (M.P.) and setting up a Flour Mill of 275TPD. Other objects are to meet working capital margin requirement of the business, to meet the expenses of the issue and to enable listing of the equity shares of the company on the stock exchanges.
Sita Shree is in the business of wheat and pulse processing. The product portfolio of the company consists of wheat flour, maida, rawa, daliya, suji, chana dal etc. These products are marketed under its own brand like Sita Shree, Regular and Sita Shree Gold.
Lead manager to the issue is Keynote Corporate Services Limited and Ankit Consultancy Private Limited is the registrar.
Source: Moneycontrol.com
The issue has opened for subscription with an initial public offering equity shares of Rs 10 each at a price band of Rs 27-30 per share aggregating Rs 31.5 crore. Equity shares are proposed to be listing on the BSE and NSE.
The objects of the issue are to Finance the capital expenditure programs - setting up a Solvent Extraction Plant having 500TPD capacity, setting up a oil refinery for Solvent Extraction Plant having 100TPD capacity, setting up a Lecithin plant for processing the by products of Solvent Extraction Plant having 5TPD capacity at Badia Kima (M.P.) and setting up a Flour Mill of 275TPD. Other objects are to meet working capital margin requirement of the business, to meet the expenses of the issue and to enable listing of the equity shares of the company on the stock exchanges.
Sita Shree is in the business of wheat and pulse processing. The product portfolio of the company consists of wheat flour, maida, rawa, daliya, suji, chana dal etc. These products are marketed under its own brand like Sita Shree, Regular and Sita Shree Gold.
Lead manager to the issue is Keynote Corporate Services Limited and Ankit Consultancy Private Limited is the registrar.
Source: Moneycontrol.com
Avoid Sita Shree Food IPO
Arihant Capital has come out with IPO analysis note on Sita Shree. It has recommended to ignore Sita Shree Food Products IPO.
It has opened for subscription with an initial public offering equity shares of Rs 10 each at a price band of Rs 27-30 per share aggregating Rs 31.5 crore.
Arihant Capital report on Sita Shree Food Products IPO.
Investment Positive:
Experience and Customer Base - The promoters of SSFPL are in the business of food grains trading since last 35 years. This helps the Company to procure its raw material at competitive prices throughout the year. It is benefited due to the past track record of the promoters in sourcing commodities as well as running existing business. Also By virtue of the presence in the industry for a considerable period of time, the Company has been able to develop a customer base which can be leveraged for the expanded operations as well as new products manufactured through proposed project.
Concerns:
* Competition - Much of the Indian food processing industry is unorganized and fragmented with many small and medium-sized companies. The Company is facing competition from around 5-6 mid-sized flour mills in Indore region for its existing products. Besides small unorganized sectors the Company will also face stiff competition from major players like Ruchi Soya Industries Ltd, Gujarat Ambuja Exports Ltd, K S Oil etc. for marketing of products manufactured through proposed project i.e. Soya Oil, lecithin.
* Nature of Business - The business of the Company is seasonal in nature and hence the Company requires substantial working capital for maintaining the stocks. Any shortage in working capital finance will affect the operations of the company and have an impact on the profitability. Also the company operates in very low profitability margins. The present capacity utilization of existing flour mill is 64.15% in spite of which the Company is planning to set up a new flour mill with a capacity of 275 TPD per day.
* The Company at present does not have existing marketing network. The Company will face difficulties to market its existing as well as proposed manufacturing products particularly in branded segment which has higher margins. Also the company is venturing into solvent extraction and lecithin in which the company lacks experience.
Recommendation:
SSFPL makes wheat products which are sold mainly in bulk form. Operating profit margins in this business, however, have been thin, hovering in the 3 per cent range in recent years. In spite of the expansion plans of the company, margins may continue to be wafer thin, given competition from much larger and unorganized players in the flour milling segment.
Based on the valuations the company looks to be priced expensively as compared to its peers. Keeping in mind the competition faced by the company, seasonality nature of the business and valuations we recommend our investors to ignore the issue.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decissions.
Source: Moneycontrol.com
It has opened for subscription with an initial public offering equity shares of Rs 10 each at a price band of Rs 27-30 per share aggregating Rs 31.5 crore.
Arihant Capital report on Sita Shree Food Products IPO.
Investment Positive:
Experience and Customer Base - The promoters of SSFPL are in the business of food grains trading since last 35 years. This helps the Company to procure its raw material at competitive prices throughout the year. It is benefited due to the past track record of the promoters in sourcing commodities as well as running existing business. Also By virtue of the presence in the industry for a considerable period of time, the Company has been able to develop a customer base which can be leveraged for the expanded operations as well as new products manufactured through proposed project.
Concerns:
* Competition - Much of the Indian food processing industry is unorganized and fragmented with many small and medium-sized companies. The Company is facing competition from around 5-6 mid-sized flour mills in Indore region for its existing products. Besides small unorganized sectors the Company will also face stiff competition from major players like Ruchi Soya Industries Ltd, Gujarat Ambuja Exports Ltd, K S Oil etc. for marketing of products manufactured through proposed project i.e. Soya Oil, lecithin.
* Nature of Business - The business of the Company is seasonal in nature and hence the Company requires substantial working capital for maintaining the stocks. Any shortage in working capital finance will affect the operations of the company and have an impact on the profitability. Also the company operates in very low profitability margins. The present capacity utilization of existing flour mill is 64.15% in spite of which the Company is planning to set up a new flour mill with a capacity of 275 TPD per day.
* The Company at present does not have existing marketing network. The Company will face difficulties to market its existing as well as proposed manufacturing products particularly in branded segment which has higher margins. Also the company is venturing into solvent extraction and lecithin in which the company lacks experience.
Recommendation:
SSFPL makes wheat products which are sold mainly in bulk form. Operating profit margins in this business, however, have been thin, hovering in the 3 per cent range in recent years. In spite of the expansion plans of the company, margins may continue to be wafer thin, given competition from much larger and unorganized players in the flour milling segment.
Based on the valuations the company looks to be priced expensively as compared to its peers. Keeping in mind the competition faced by the company, seasonality nature of the business and valuations we recommend our investors to ignore the issue.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decissions.
Source: Moneycontrol.com
Thursday, March 13, 2008
Gammon Infra IPO subscribed 2.8 times
The initial public offer of Gammon Infrastructure Projects (GIPL), an infrastructure project development company, has got good response, subscribed 2.8 times. Reserved portion of QIBs subscribed 4.7 times. It has received bids for 3.13 crore equity shares as against 1.65 crore shares on offer.
The issue has opened for subscription with its initial public offering (IPO) of 1,65,50,000 equity shares of face value Rs 10 each for a cash price to be determined through a 100% book building process. The issue will close on March 13, 2008. The price band is between Rs 167 and Rs 200 per equity share.
Investors can avail of two modes of payment. Under Payment Method-1, the amount payable on submission of the bid-cum-application form (in case of retail individual bidders and non-institutional bidders) is Rs 50 per equity share (such that it shall not be less than 25% of the issue price). And the balance payable shall be paid by the due date. Non-resident bidders cannot make use of Payment Method-1. Under Payment Method-II, the amount payable on submission of the bid-cum-application form in the case of retail individual bidders and non-institutional bidders shall be 100% of the bid amount, and, in the case QIBs, will be 10% of the bid amount with the balance being payable on allocation.
Presently, GIPL undertakes and develops projects such as roads, bridges, ports, hydroelectric power and biomass power projects on a PPP basis.
The Issue proceeds will be utilised to:
* Contribute to a part of the investment required by KBICL, its subsidiary formed for the design, construction, finance & maintenance of a 1.8 kilometer long four-lane bridge across river Kosi including 8.2 kilometers long approach roads and Guide bund & Afflux bund on NH-57 in the Supaul district of Bihar;
* For the investment required by GICL, its subsidiary formed for the design, construction, finance & maintenance of a 32 kilometer long four-lane bypass to Gorakhpur town on NH-28 in the state of Uttar Pradesh;
* For the investment required by SHPVL, its subsidiary formed for developing the Rangit-II hydroelectric power project in the state of Sikkim;
* For infusion of funds into MNEL, its subsidiary formed for the four-laning of the 99.5 kilometers Vadape-Gonde section (between Mumbai and Nasik) of NH 3 on BOT basis;
* Repayment of loan to Gammon India Limited and general corporate purposes and investment in strategic initiatives and acquisitions.
The book running lead managers to the issue are IDFC-SSKI Private Limited and Macquarie Capital Advisers (India) Private Limited . The co-book running lead manager to the issue is Collins Stewart Inga Private Limited.
Source: Moneycontrol.com
The issue has opened for subscription with its initial public offering (IPO) of 1,65,50,000 equity shares of face value Rs 10 each for a cash price to be determined through a 100% book building process. The issue will close on March 13, 2008. The price band is between Rs 167 and Rs 200 per equity share.
Investors can avail of two modes of payment. Under Payment Method-1, the amount payable on submission of the bid-cum-application form (in case of retail individual bidders and non-institutional bidders) is Rs 50 per equity share (such that it shall not be less than 25% of the issue price). And the balance payable shall be paid by the due date. Non-resident bidders cannot make use of Payment Method-1. Under Payment Method-II, the amount payable on submission of the bid-cum-application form in the case of retail individual bidders and non-institutional bidders shall be 100% of the bid amount, and, in the case QIBs, will be 10% of the bid amount with the balance being payable on allocation.
Presently, GIPL undertakes and develops projects such as roads, bridges, ports, hydroelectric power and biomass power projects on a PPP basis.
The Issue proceeds will be utilised to:
* Contribute to a part of the investment required by KBICL, its subsidiary formed for the design, construction, finance & maintenance of a 1.8 kilometer long four-lane bridge across river Kosi including 8.2 kilometers long approach roads and Guide bund & Afflux bund on NH-57 in the Supaul district of Bihar;
* For the investment required by GICL, its subsidiary formed for the design, construction, finance & maintenance of a 32 kilometer long four-lane bypass to Gorakhpur town on NH-28 in the state of Uttar Pradesh;
* For the investment required by SHPVL, its subsidiary formed for developing the Rangit-II hydroelectric power project in the state of Sikkim;
* For infusion of funds into MNEL, its subsidiary formed for the four-laning of the 99.5 kilometers Vadape-Gonde section (between Mumbai and Nasik) of NH 3 on BOT basis;
* Repayment of loan to Gammon India Limited and general corporate purposes and investment in strategic initiatives and acquisitions.
The book running lead managers to the issue are IDFC-SSKI Private Limited and Macquarie Capital Advisers (India) Private Limited . The co-book running lead manager to the issue is Collins Stewart Inga Private Limited.
Source: Moneycontrol.com
V-Guard ends below issue price, at Rs 73 on NSE
V-Guard Industries a based in Kerala Company, which listed today at Rs 84 on BSE, was closed at Rs 73.45 On BSE and at Rs 73 on NSE below its issue price of Rs 82 per equity share.
On the BSE, the stock opened at Rs 82.15 and has touched an intra day high of Rs 98.90 and an intra day low of Rs 70.70 with volumes of 190,80,854 shares.
On the NSE, the stock opened at Rs 90.00 and has touched an intra day high of Rs 98.95 and an intra day low of Rs 72.60 with volumes of 195,09,563 shares.
In an exclusive interview with CNBC-TV18, PGR Prasad, Chairman of V-Guard Industries said he sees FY09 profits at Rs 40 crore with non-recurring profits.
The company fixed the issue price at Rs 82 per equity share. The company had come out with a public issue of 80,00,000 equity shares of Rs 10 each for cash at a price of Rs 82 per equity share for cash aggregating to Rs 65.60 crore.
The issue, which was a 100% book built issue, was oversubscribed 2.45 times. Qualified Institutional Buyers' portion oversubscribed by more than 1.74 times, the retail portion by 4.04 times and the HNI portion by 1.64 times.
The company proposed to utilize the net proceeds of the issue to set up Cable manufacturing facilities in Coimbatore and Uttaranchal, Enameling Plant at Coimbatore, Development and Pilot Productions Plants for water Heaters, Fans and Pumps at Himachal Pradesh and Coimbatore, Service and Distribution Centers at Bangalore, Hubli and Vijaywada.
V-Guard Industries Limited is engaged in the manufacturing and marketing of Electronic Voltage Stabilizers, Monobloc, Jet, Submersible, Compressor pumps and Electric Motors, Insulated Electrical Cables (House Wiring, Industrial), Electric Storage & Instant Water Heaters, Solar Water Heaters, UPS, Electric Fans and is also in generation of Power in a small way. V-Guard is present in 16 states with eighteen branches including their head office located in Cochin. Their products are sold through a network of over 7000 retail dealers and 111 distributors Pan India.
Source: Moneycontrol.com
On the BSE, the stock opened at Rs 82.15 and has touched an intra day high of Rs 98.90 and an intra day low of Rs 70.70 with volumes of 190,80,854 shares.
On the NSE, the stock opened at Rs 90.00 and has touched an intra day high of Rs 98.95 and an intra day low of Rs 72.60 with volumes of 195,09,563 shares.
In an exclusive interview with CNBC-TV18, PGR Prasad, Chairman of V-Guard Industries said he sees FY09 profits at Rs 40 crore with non-recurring profits.
The company fixed the issue price at Rs 82 per equity share. The company had come out with a public issue of 80,00,000 equity shares of Rs 10 each for cash at a price of Rs 82 per equity share for cash aggregating to Rs 65.60 crore.
The issue, which was a 100% book built issue, was oversubscribed 2.45 times. Qualified Institutional Buyers' portion oversubscribed by more than 1.74 times, the retail portion by 4.04 times and the HNI portion by 1.64 times.
The company proposed to utilize the net proceeds of the issue to set up Cable manufacturing facilities in Coimbatore and Uttaranchal, Enameling Plant at Coimbatore, Development and Pilot Productions Plants for water Heaters, Fans and Pumps at Himachal Pradesh and Coimbatore, Service and Distribution Centers at Bangalore, Hubli and Vijaywada.
V-Guard Industries Limited is engaged in the manufacturing and marketing of Electronic Voltage Stabilizers, Monobloc, Jet, Submersible, Compressor pumps and Electric Motors, Insulated Electrical Cables (House Wiring, Industrial), Electric Storage & Instant Water Heaters, Solar Water Heaters, UPS, Electric Fans and is also in generation of Power in a small way. V-Guard is present in 16 states with eighteen branches including their head office located in Cochin. Their products are sold through a network of over 7000 retail dealers and 111 distributors Pan India.
Source: Moneycontrol.com
Wednesday, March 12, 2008
Rural Electr Corp ends with 15% premium
The state-run Rural Electrification Corporation, REC has touched an intraday high/low of 129.90 and Rs 118.75, before closing the day at Rs 120.25, up by Rs 15.25 or 14.52% on the NSE. It traded with volumes of 11,16,71,336 shares and turnover was at Rs 1,364 crore.
Uma Shankar, Chairman, REC said that the company is likely to hold on to their current costs and margins and added that they expect to see continued growth of 25-30%. Shankar said REC will continue to maintain its past CAGR growth going ahead.
In an exclusive interview with CNBC-TV18, Shankar said that their ECB application was with the RBI and that they expect a favourable outcome. He added that they don’t anticipate a rise in the cost of borrowings which currently stands at 6.7%.
Shankar expects the company to have 25-30% profitability in the coming years. He said that REC is expecting business worth Rs 1.35 lakh crore over the next five years and added that higher volumes will ensure that profitability is maintained.
It had come out with an initial public offer of 15.61 crore shares of Rs 10 each and the issue got subscribed by 27.91 tio mes.
Source: Moneycontrol.com
Uma Shankar, Chairman, REC said that the company is likely to hold on to their current costs and margins and added that they expect to see continued growth of 25-30%. Shankar said REC will continue to maintain its past CAGR growth going ahead.
In an exclusive interview with CNBC-TV18, Shankar said that their ECB application was with the RBI and that they expect a favourable outcome. He added that they don’t anticipate a rise in the cost of borrowings which currently stands at 6.7%.
Shankar expects the company to have 25-30% profitability in the coming years. He said that REC is expecting business worth Rs 1.35 lakh crore over the next five years and added that higher volumes will ensure that profitability is maintained.
It had come out with an initial public offer of 15.61 crore shares of Rs 10 each and the issue got subscribed by 27.91 tio mes.
Source: Moneycontrol.com
Gammon Infra IPO subscribed fully
The initial public offer of Gammon Infrastructure Projects (GIPL), an infrastructure project development company, has got good response, subscribed 1.9 times, according to NSE website. Reserved portion of QIBs subscribed 3 times. It has received bids for 3.13 crore equity shares as against 1.65 crore shares on offer.
The issue has opened for subscription with its initial public offering (IPO) of 1,65,50,000 equity shares of face value Rs 10 each for a cash price to be determined through a 100% book building process. The issue will close on March 13, 2008. The price band is between Rs 167 and Rs 200 per equity share.
Investors can avail of two modes of payment. Under Payment Method-1, the amount payable on submission of the bid-cum-application form (in case of retail individual bidders and non-institutional bidders) is Rs 50 per equity share (such that it shall not be less than 25% of the issue price). And the balance payable shall be paid by the due date. Non-resident bidders cannot make use of Payment Method-1. Under Payment Method-II, the amount payable on submission of the bid-cum-application form in the case of retail individual bidders and non-institutional bidders shall be 100% of the bid amount, and, in the case QIBs, will be 10% of the bid amount with the balance being payable on allocation.
Presently, GIPL undertakes and develops projects such as roads, bridges, ports, hydroelectric power and biomass power projects on a PPP basis.
The Issue proceeds will be utilised to:
* Contribute to a part of the investment required by KBICL, its subsidiary formed for the design, construction, finance & maintenance of a 1.8 kilometer long four-lane bridge across river Kosi including 8.2 kilometers long approach roads and Guide bund & Afflux bund on NH-57 in the Supaul district of Bihar;
* For the investment required by GICL, its subsidiary formed for the design, construction, finance & maintenance of a 32 kilometer long four-lane bypass to Gorakhpur town on NH-28 in the state of Uttar Pradesh;
* For the investment required by SHPVL, its subsidiary formed for developing the Rangit-II hydroelectric power project in the state of Sikkim;
* For infusion of funds into MNEL, its subsidiary formed for the four-laning of the 99.5 kilometers Vadape-Gonde section (between Mumbai and Nasik) of NH 3 on BOT basis;
* Repayment of loan to Gammon India Limited and general corporate purposes and investment in strategic initiatives and acquisitions.
The book running lead managers to the issue are IDFC-SSKI Private Limited and Macquarie Capital Advisers (India) Private Limited . The co-book running lead manager to the issue is Collins Stewart Inga Private Limited.
Source: Moneycontrol.com
The issue has opened for subscription with its initial public offering (IPO) of 1,65,50,000 equity shares of face value Rs 10 each for a cash price to be determined through a 100% book building process. The issue will close on March 13, 2008. The price band is between Rs 167 and Rs 200 per equity share.
Investors can avail of two modes of payment. Under Payment Method-1, the amount payable on submission of the bid-cum-application form (in case of retail individual bidders and non-institutional bidders) is Rs 50 per equity share (such that it shall not be less than 25% of the issue price). And the balance payable shall be paid by the due date. Non-resident bidders cannot make use of Payment Method-1. Under Payment Method-II, the amount payable on submission of the bid-cum-application form in the case of retail individual bidders and non-institutional bidders shall be 100% of the bid amount, and, in the case QIBs, will be 10% of the bid amount with the balance being payable on allocation.
Presently, GIPL undertakes and develops projects such as roads, bridges, ports, hydroelectric power and biomass power projects on a PPP basis.
The Issue proceeds will be utilised to:
* Contribute to a part of the investment required by KBICL, its subsidiary formed for the design, construction, finance & maintenance of a 1.8 kilometer long four-lane bridge across river Kosi including 8.2 kilometers long approach roads and Guide bund & Afflux bund on NH-57 in the Supaul district of Bihar;
* For the investment required by GICL, its subsidiary formed for the design, construction, finance & maintenance of a 32 kilometer long four-lane bypass to Gorakhpur town on NH-28 in the state of Uttar Pradesh;
* For the investment required by SHPVL, its subsidiary formed for developing the Rangit-II hydroelectric power project in the state of Sikkim;
* For infusion of funds into MNEL, its subsidiary formed for the four-laning of the 99.5 kilometers Vadape-Gonde section (between Mumbai and Nasik) of NH 3 on BOT basis;
* Repayment of loan to Gammon India Limited and general corporate purposes and investment in strategic initiatives and acquisitions.
The book running lead managers to the issue are IDFC-SSKI Private Limited and Macquarie Capital Advisers (India) Private Limited . The co-book running lead manager to the issue is Collins Stewart Inga Private Limited.
Source: Moneycontrol.com
What experts say about V-Guard Ind listing?
V-Guard Industries, a company based in Kerala, engaged in the manufacturing and marketing of electrical and electronic products, will list on the exchanges on March 13, 2008 with 80,00,000 equity shares.
Investment Advisor, S P Tulsian says, "V Guard Industries having issued shares at Rs 82 per share, is likely to list at Rs 90, and profit booking is advised above this level."
According to R S Iyer of K R Choksey Securities, "V-Guard is expected to list at around its issue price. One can book profits if he/she gets good money. Otherwise one should wait for next six months for strong gains.
The company had come out with a public issue of 80,00,000 equity shares of Rs 10 each for cash at a price of Rs 82 per equity share for cash aggregating to Rs 65.60 crore.
The issue, which was a 100% book built issue, was oversubscribed 2.45 times. Qualified Institutional Buyers' portion oversubscribed by more than 1.74 times, the retail portion by 4.04 times and the HNI portion by 1.64 times.
The company proposed to utilize the net proceeds of the issue to set up Cable manufacturing facilities in Coimbatore and Uttaranchal, Enameling Plant at Coimbatore, Development and Pilot Productions Plants for water Heaters, Fans and Pumps at Himachal Pradesh and Coimbatore, Service and Distribution Centers at Bangalore, Hubli and Vijaywada.
V-Guard Industries is engaged in the manufacturing and marketing of Electronic Voltage Stabilizers, Monobloc, Jet, Submersible, Compressor pumps and Electric Motors, Insulated Electrical Cables (House Wiring, Industrial), Electric Storage & Instant Water Heaters, Solar Water Heaters, UPS, Electric Fans and is also in generation of Power in a small way. V-Guard is present in 16 states with eighteen branches including their head office located in Cochin. Their products are sold through a network of over 7000 retail dealers and 111 distributors Pan India.
Source: Moneycontrol.com
Investment Advisor, S P Tulsian says, "V Guard Industries having issued shares at Rs 82 per share, is likely to list at Rs 90, and profit booking is advised above this level."
According to R S Iyer of K R Choksey Securities, "V-Guard is expected to list at around its issue price. One can book profits if he/she gets good money. Otherwise one should wait for next six months for strong gains.
The company had come out with a public issue of 80,00,000 equity shares of Rs 10 each for cash at a price of Rs 82 per equity share for cash aggregating to Rs 65.60 crore.
The issue, which was a 100% book built issue, was oversubscribed 2.45 times. Qualified Institutional Buyers' portion oversubscribed by more than 1.74 times, the retail portion by 4.04 times and the HNI portion by 1.64 times.
The company proposed to utilize the net proceeds of the issue to set up Cable manufacturing facilities in Coimbatore and Uttaranchal, Enameling Plant at Coimbatore, Development and Pilot Productions Plants for water Heaters, Fans and Pumps at Himachal Pradesh and Coimbatore, Service and Distribution Centers at Bangalore, Hubli and Vijaywada.
V-Guard Industries is engaged in the manufacturing and marketing of Electronic Voltage Stabilizers, Monobloc, Jet, Submersible, Compressor pumps and Electric Motors, Insulated Electrical Cables (House Wiring, Industrial), Electric Storage & Instant Water Heaters, Solar Water Heaters, UPS, Electric Fans and is also in generation of Power in a small way. V-Guard is present in 16 states with eighteen branches including their head office located in Cochin. Their products are sold through a network of over 7000 retail dealers and 111 distributors Pan India.
Source: Moneycontrol.com
Tuesday, March 11, 2008
Sita Shree Food IPO opens for subscription
Sita Shree Food Products is open for subscription with an initial public offering equity shares of Rs 10 each at a price band of Rs 27-30 per share for cast aggregating Rs 31.5 crore.
The issue will close for subscription on March 14, 2008. Equity shares are proposed to be listing on the BSE and NSE.
The objects of the issue are to Finance the capital expenditure programs - setting up a Solvent Extraction Plant having 500TPD capacity, setting up a oil refinery for Solvent Extraction Plant having 100TPD capacity, setting up a Lecithin plant for processing the by products of Solvent Extraction Plant having 5TPD capacity at Badia Kima (M.P.) and setting up a Flour Mill of 275TPD. Other objects are to meet working capital margin requirement of the business, to meet the expenses of the issue and to enable listing of the equity shares of the company on the stock exchanges.
Sita Shree is in the business of wheat and pulse processing. The product portfolio of the company consists of wheat flour, maida, rawa, daliya, suji, chana dal etc. These products are marketed under its own brand like Sita Shree, Regular and Sita Shree Gold.
It has reported sales of Rs 80.73 crore and net profit of Rs 0.92 crore for the year ended March 2007.
Lead manager to the issue is Keynote Corporate Services Limited and Ankit Consultancy Private Limited is the registrar.
Source: Moneycontrol.com
The issue will close for subscription on March 14, 2008. Equity shares are proposed to be listing on the BSE and NSE.
The objects of the issue are to Finance the capital expenditure programs - setting up a Solvent Extraction Plant having 500TPD capacity, setting up a oil refinery for Solvent Extraction Plant having 100TPD capacity, setting up a Lecithin plant for processing the by products of Solvent Extraction Plant having 5TPD capacity at Badia Kima (M.P.) and setting up a Flour Mill of 275TPD. Other objects are to meet working capital margin requirement of the business, to meet the expenses of the issue and to enable listing of the equity shares of the company on the stock exchanges.
Sita Shree is in the business of wheat and pulse processing. The product portfolio of the company consists of wheat flour, maida, rawa, daliya, suji, chana dal etc. These products are marketed under its own brand like Sita Shree, Regular and Sita Shree Gold.
It has reported sales of Rs 80.73 crore and net profit of Rs 0.92 crore for the year ended March 2007.
Lead manager to the issue is Keynote Corporate Services Limited and Ankit Consultancy Private Limited is the registrar.
Source: Moneycontrol.com
Rural Electr Corp to list on March 12
The state-run Rural Electrification Corporation, REC will list on the bourses with equity shares on Wednesday, March 12, 2008. It has been fixed issue price of Rs 105 per share for its initial public offer of 15.61 crore shares of Rs 10 each. The issue generated a demand for over Rs 45,000 crore and got subscribed by 27.91 times.
The price band was between Rs 90-105 per share. The QIB portion was subscribed 39 times, HNI 27 times and retail 8 times. The employee portion was also fully subscribed demonstrating the interest it has generated.
The issue constitutes approximately 18.18% of the fully diluted post-issue capital of REC. IL & FS Investsmart Securities Limited, ICICI Securities Limited and SBI Capital Markets Limited are the Book Running Lead Managers for the Issue.
The Company proposes to utilize the net proceeds from the fresh issue to augment its capital base to improve its borrowing capacity in order to support the future growth in its assets.
Source: Moneycontrol.com
The price band was between Rs 90-105 per share. The QIB portion was subscribed 39 times, HNI 27 times and retail 8 times. The employee portion was also fully subscribed demonstrating the interest it has generated.
The issue constitutes approximately 18.18% of the fully diluted post-issue capital of REC. IL & FS Investsmart Securities Limited, ICICI Securities Limited and SBI Capital Markets Limited are the Book Running Lead Managers for the Issue.
The Company proposes to utilize the net proceeds from the fresh issue to augment its capital base to improve its borrowing capacity in order to support the future growth in its assets.
Source: Moneycontrol.com
2,261 grievances relating to Rel Power IPO filed
The Securities and Exchange Board of India, or Sebi, has received 2,261 grievances relating to the Reliance Power IPO until March 3, 2008, reports CNBC-TV18.
Grievances relate to non-receipt of refund, credit off-share, and non-receipt of interest on delayed refund. It has conveyed these grievances to Reliance Power for necessary action.
Source: Moneycontrol.com
Grievances relate to non-receipt of refund, credit off-share, and non-receipt of interest on delayed refund. It has conveyed these grievances to Reliance Power for necessary action.
Source: Moneycontrol.com
Monday, March 10, 2008
Avoid Gammon Infrastructure IPO
Gammon Infrastructure Projects (GIPL), an infrastructure project development company promoted by Gammon Group, is open for subscription with its initial public offering (IPO) of 1,65,50,000 equity shares of face value Rs 10 each for a cash price to be determined through a 100% book building process. The issue will close on March 13, 2008. The price band has been fixed between Rs 167 and Rs 200 per equity share.
Investors can avail of two modes of payment. Under Payment Method-1, the amount payable on submission of the bid-cum-application form (in case of retail individual bidders and non-institutional bidders) is Rs 50 per equity share (such that it shall not be less than 25% of the issue price). And the balance payable shall be paid by the due date. Non-resident bidders cannot make use of Payment Method-1. Under Payment Method-II, the amount payable on submission of the bid-cum-application form in the case of retail individual bidders and non-institutional bidders shall be 100% of the bid amount, and, in the case QIBs, will be 10% of the bid amount with the balance being payable on allocation.
Presently, GIPL undertakes and develops projects such as roads, bridges, ports, hydroelectric power and biomass power projects on a PPP basis.
The Issue proceeds will be utilised to:
* Contribute to a part of the investment required by KBICL, its subsidiary formed for the design, construction, finance & maintenance of a 1.8 kilometer long four-lane bridge across river Kosi including 8.2 kilometers long approach roads and Guide bund & Afflux bund on NH-57 in the Supaul district of Bihar;
* For the investment required by GICL, its subsidiary formed for the design, construction, finance & maintenance of a 32 kilometer long four-lane bypass to Gorakhpur town on NH-28 in the state of Uttar Pradesh;
* For the investment required by SHPVL, its subsidiary formed for developing the Rangit-II hydroelectric power project in the state of Sikkim;
* For infusion of funds into MNEL, its subsidiary formed for the four-laning of the 99.5 kilometers Vadape-Gonde section (between Mumbai and Nasik) of NH 3 on BOT basis;
* Repayment of loan to Gammon India Limited and general corporate purposes and investment in strategic initiatives and acquisitions.
The book running lead managers to the issue are IDFC-SSKI Private Limited and Macquarie Capital Advisers (India) Private Limited . The co-book running lead manager to the issue is Collins Stewart Inga Private Limited.
Source: Moneycontrol.com
Investors can avail of two modes of payment. Under Payment Method-1, the amount payable on submission of the bid-cum-application form (in case of retail individual bidders and non-institutional bidders) is Rs 50 per equity share (such that it shall not be less than 25% of the issue price). And the balance payable shall be paid by the due date. Non-resident bidders cannot make use of Payment Method-1. Under Payment Method-II, the amount payable on submission of the bid-cum-application form in the case of retail individual bidders and non-institutional bidders shall be 100% of the bid amount, and, in the case QIBs, will be 10% of the bid amount with the balance being payable on allocation.
Presently, GIPL undertakes and develops projects such as roads, bridges, ports, hydroelectric power and biomass power projects on a PPP basis.
The Issue proceeds will be utilised to:
* Contribute to a part of the investment required by KBICL, its subsidiary formed for the design, construction, finance & maintenance of a 1.8 kilometer long four-lane bridge across river Kosi including 8.2 kilometers long approach roads and Guide bund & Afflux bund on NH-57 in the Supaul district of Bihar;
* For the investment required by GICL, its subsidiary formed for the design, construction, finance & maintenance of a 32 kilometer long four-lane bypass to Gorakhpur town on NH-28 in the state of Uttar Pradesh;
* For the investment required by SHPVL, its subsidiary formed for developing the Rangit-II hydroelectric power project in the state of Sikkim;
* For infusion of funds into MNEL, its subsidiary formed for the four-laning of the 99.5 kilometers Vadape-Gonde section (between Mumbai and Nasik) of NH 3 on BOT basis;
* Repayment of loan to Gammon India Limited and general corporate purposes and investment in strategic initiatives and acquisitions.
The book running lead managers to the issue are IDFC-SSKI Private Limited and Macquarie Capital Advisers (India) Private Limited . The co-book running lead manager to the issue is Collins Stewart Inga Private Limited.
Source: Moneycontrol.com
Gammon Infra IPO opens for subscription
Gammon Infrastructure Projects (GIPL), an infrastructure project development company promoted by Gammon Group, is open for subscription with its initial public offering (IPO) of 1,65,50,000 equity shares of face value Rs 10 each for a cash price to be determined through a 100% book building process. The issue will close on March 13, 2008. The price band has been fixed between Rs 167 and Rs 200 per equity share.
The issue comprises a net issue of 1,48,95,000 equity shares to the public and a reservation of 16,55,000 equity shares for eligible employees. The issue and the net issue will constitute 11.45% and 10.30% respectively of the post-Issue paid up equity share capital of the company.
At least 60% of the net issue will be allocated on a proportionate basis to qualified institutional buyers. Further, 5% of the QIB portion will be available for allocation to mutual funds only and the remaining QIB portion will be available for allocation to the QIB bidders including mutual funds. At least 10% of the net issue will be available for allocation on a proportionate basis to non-institutional bidders and at least 30% of the Net Issue will be available for allocation on a proportionate basis to retail investors.
Investors can avail of two modes of payment. Under Payment Method-1, the amount payable on submission of the bid-cum-application form (in case of retail individual bidders and non-institutional bidders) is Rs 50 per equity share (such that it shall not be less than 25% of the issue price). And the balance payable shall be paid by the due date. Non-resident bidders cannot make use of Payment Method-1. Under Payment Method-II, the amount payable on submission of the bid-cum-application form in the case of retail individual bidders and non-institutional bidders shall be 100% of the bid amount, and, in the case QIBs, will be 10% of the bid amount with the balance being payable on allocation.
Presently, GIPL undertakes and develops projects such as roads, bridges, ports, hydroelectric power and biomass power projects on a PPP basis.
Presently, GIPL’s infrastructure project development business includes fourteen projects, of which four are already in the operations phase, seven are in the development phase and three are in the pre-development phase. GIPL also provides O&M and project advisory services for projects which are being undertaken by the project specific companies.
The Issue proceeds will be utilised to:
* Contribute to a part of the investment required by KBICL, its subsidiary formed for the design, construction, finance & maintenance of a 1.8 kilometer long four-lane bridge across river Kosi including 8.2 kilometers long approach roads and Guide bund & Afflux bund on NH-57 in the Supaul district of Bihar;
* For the investment required by GICL, its subsidiary formed for the design, construction, finance & maintenance of a 32 kilometer long four-lane bypass to Gorakhpur town on NH-28 in the state of Uttar Pradesh;
* For the investment required by SHPVL, its subsidiary formed for developing the Rangit-II hydroelectric power project in the state of Sikkim;
* For infusion of funds into MNEL, its subsidiary formed for the four-laning of the 99.5 kilometers Vadape-Gonde section (between Mumbai and Nasik) of NH 3 on BOT basis;
* Repayment of loan to Gammon India Limited and general corporate purposes and investment in strategic initiatives and acquisitions.
The book running lead managers to the issue are IDFC-SSKI Private Limited and Macquarie Capital Advisers (India) Private Limited . The co-book running lead manager to the issue is Collins Stewart Inga Private Limited.
Source: Moneycontrol.com
The issue comprises a net issue of 1,48,95,000 equity shares to the public and a reservation of 16,55,000 equity shares for eligible employees. The issue and the net issue will constitute 11.45% and 10.30% respectively of the post-Issue paid up equity share capital of the company.
At least 60% of the net issue will be allocated on a proportionate basis to qualified institutional buyers. Further, 5% of the QIB portion will be available for allocation to mutual funds only and the remaining QIB portion will be available for allocation to the QIB bidders including mutual funds. At least 10% of the net issue will be available for allocation on a proportionate basis to non-institutional bidders and at least 30% of the Net Issue will be available for allocation on a proportionate basis to retail investors.
Investors can avail of two modes of payment. Under Payment Method-1, the amount payable on submission of the bid-cum-application form (in case of retail individual bidders and non-institutional bidders) is Rs 50 per equity share (such that it shall not be less than 25% of the issue price). And the balance payable shall be paid by the due date. Non-resident bidders cannot make use of Payment Method-1. Under Payment Method-II, the amount payable on submission of the bid-cum-application form in the case of retail individual bidders and non-institutional bidders shall be 100% of the bid amount, and, in the case QIBs, will be 10% of the bid amount with the balance being payable on allocation.
Presently, GIPL undertakes and develops projects such as roads, bridges, ports, hydroelectric power and biomass power projects on a PPP basis.
Presently, GIPL’s infrastructure project development business includes fourteen projects, of which four are already in the operations phase, seven are in the development phase and three are in the pre-development phase. GIPL also provides O&M and project advisory services for projects which are being undertaken by the project specific companies.
The Issue proceeds will be utilised to:
* Contribute to a part of the investment required by KBICL, its subsidiary formed for the design, construction, finance & maintenance of a 1.8 kilometer long four-lane bridge across river Kosi including 8.2 kilometers long approach roads and Guide bund & Afflux bund on NH-57 in the Supaul district of Bihar;
* For the investment required by GICL, its subsidiary formed for the design, construction, finance & maintenance of a 32 kilometer long four-lane bypass to Gorakhpur town on NH-28 in the state of Uttar Pradesh;
* For the investment required by SHPVL, its subsidiary formed for developing the Rangit-II hydroelectric power project in the state of Sikkim;
* For infusion of funds into MNEL, its subsidiary formed for the four-laning of the 99.5 kilometers Vadape-Gonde section (between Mumbai and Nasik) of NH 3 on BOT basis;
* Repayment of loan to Gammon India Limited and general corporate purposes and investment in strategic initiatives and acquisitions.
The book running lead managers to the issue are IDFC-SSKI Private Limited and Macquarie Capital Advisers (India) Private Limited . The co-book running lead manager to the issue is Collins Stewart Inga Private Limited.
Source: Moneycontrol.com
Friday, March 7, 2008
GSS America ends with 25% premium
IT solution provider, GSS America Infotech, has surged to a high of Rs 508.35 before closing the day at Rs 500.65, with 25.16% premium over its issue price of Rs 400. The stock remained in the limelight through the day despite severe correction in markets (Sensex lost more than 850 points, closed down 566 points at 15,975). It traded with volumes of 1,39,82,399 shares on the BSE.
Bhargav Marepelly, CEO & Managing Director of GSS America Infotech said that their FY09 sales are pegged at over Rs 500 crore and PAT at Rs 95 crore. Meanwhile, GSS’s FY09 EPS is being seen at Rs 76, this is not including the inorganic growth planned. Marepelly said that though they are dependant on the US to some extent, the mix would change by FY09 with the inclusion of Singapore and Dubai operations.
The stock opened at Rs 380 on the NSE, and touched a high/low of Rs 540 and Rs 370, respectively. GSS America rose by 25.20% or Rs 100.80, to settle at Rs 500.80. It traded with volumes of 1,06,25,651 shares and turnover at Rs 504.42 crore.
The company had entered capital market with a public issue of 34,97,495 equity shares of Rs 10 each at a price band of Rs 400 to Rs 440 per equity share. The issue got subscribed 1.08 times.
Source: Moneycontrol.com
Bhargav Marepelly, CEO & Managing Director of GSS America Infotech said that their FY09 sales are pegged at over Rs 500 crore and PAT at Rs 95 crore. Meanwhile, GSS’s FY09 EPS is being seen at Rs 76, this is not including the inorganic growth planned. Marepelly said that though they are dependant on the US to some extent, the mix would change by FY09 with the inclusion of Singapore and Dubai operations.
The stock opened at Rs 380 on the NSE, and touched a high/low of Rs 540 and Rs 370, respectively. GSS America rose by 25.20% or Rs 100.80, to settle at Rs 500.80. It traded with volumes of 1,06,25,651 shares and turnover at Rs 504.42 crore.
The company had entered capital market with a public issue of 34,97,495 equity shares of Rs 10 each at a price band of Rs 400 to Rs 440 per equity share. The issue got subscribed 1.08 times.
Source: Moneycontrol.com
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