Latest IPO Grey Market Premium Rates

Grey Market Premium Rates

Company	Open/Close	Offer Price	Premium	Kostak Rates
Birla Cotsyn	30 June - 04 July	15 to 18	02 to 03	-------
KSK Energy Venture Limited	24 June - 27 June	240 to 255	Discount	-------
Somi Conveyor Beltings Limited	24 June - 27 June	35	04 to 06	-------
Lotus Eye Care	12 June - 20 June	38 - 42	Discount	-------
Archidply Industries Limited	11 June - 17 June	70 - 80	03 to 05	-------
First Winner Industries Limited	09 June - 17 June	115 - 125	Discount	-------
Sejal Architectural Glass Ltd	09 June - 12 June	105 - 115	15 to 16	-------
Avon Weighing Systems Limited	09 June - 12 June	10	06 to 07	-------
Bafna Pharmaceuticals Limited	27 May - 30 May	40	07 to 09	-------

Listing/Refund Board

Company	Expected Allotment Date	Expected Refund Date	Listing Date
KSK Energy Ventures Limited	09 July	10 July	-------
Somi Conveyor Beltings Limited	14 July	15 July	-------
Lotus Eye Care Limited	04 July	07 July	-------
Archidply Industries Limited	01 July	02 July	-------
First Winner Industries Limited	26 June	27 June	-------
Avon Weighing Systems Limited	30 June	02 July	-------
Sejal Architectural Glass Ltd	26 June	27 June	-------

Bafna Pharmaceuticals to list on June 27

Bafna Pharmaceuticals will list on the bourses with its public issue of 64,00,000 equity shares of Rs 10 each on June 27, 2008. The issue price was Rs 40 per equity share (including share premium of Rs 30 per equity share).

The issue will constitute 40.05% of the post issue paid-up capital of the company. The issue price is 4 times of the face value. The shares are proposed to be listed on the BSE.

Objects of the issue were as follows:
* Brand building in domestic markets Rs 10.44 crore.
* Part payment of loan from SBI Rs 4 crore.
* Brand building in international markets Rs 3.03 crore.
* Setting up R&D facilities Rs 3 crore.
* MHRA Accrediation Rs 1.08 crore.
* Public Issue expenses Rs 2.05 crore.
* Cameo Corporate Services is the Registrar to the Issue.

Ashika Capital and Keynote Corporate Services were the Lead Managers to the Issue

Source: Moneycontrol.com

KSK Energy Ventures subscribed 0.94 times

Receives bids for 3.26 crore shares

The initial public issue of KSK Energy Ventures on Monday, 23 June 2008 got subscribed 0.94 times. The issue received bids for 3.26 crore shares as against 3.46 crore shares on offer. (As at 16:00 IST)

The price band for the IPO has been fixed between Rs 240 - Rs 255 per share. The issue will close on 25 June 2008.

The company had successfully completed the pre-IPO placement of 1.73 crore equity shares at a price of Rs 240 per share, thus raising over Rs 415 crore.

KSK Energy was established in 2001 to capitalise on emerging opportunities in the Indian power sector and focus on developing, operating and maintaining power projects.

It has operational power plants capable of generating 144 megawatts (MW) of power, and it is currently constructing, developing or planning power projects capable of generating an aggregate of 8,993 MW of power.

The Hyderabad-based firm plans to raise up to Rs 882 crore to part finance its investment in the SPV Wardha Power Company for the 1,800 MW coal-based thermal power plant in Chattisgarh.

Source: Capitalmarket.com

Lotus Eye Care extends IPO to June 20, price band Rs 36-38

Lotus Eye Care Hospital has revised its IPO price band to Rs 36-38 from Rs 38-42 per share and extended by three days on the back of poor subscription. Now the issue will close on June 20, 2008 instead of today, June 17.

It has subscribed only 0.54 times as per the NSE web site. It has received total bids for 54,26,700 shares as against issue size of 1,00,00,000 shares.

The issue had opened for subscription on June 12, 2008 with a public issue of 1,00,00,000 equity shares of Rs 10 each through 100% book building process. The price band is between Rs 38 to Rs 42 per equity share of Rs 10 each.

The issue will constitute 48.09% of the fully diluted post issue paid-up equity share capital of the company.

Keynote Corporate Services Ltd is the BRLM and Canara Bank Merchant Banking Division is the co-lead manager for the issue and S.K.D.C. Consultants Ltd is the registrar to the issue.

The company proposes to utilise the net proceeds of the issue to part finance its Rs 5500 lacs expansion plan. The plan covers expansion of existing facilities and establishment of new centers with latest technology. To fund this plan, Lotus expects to raise Rs 4200 lakh through the public issue, it has tied up Rs 999.54 lakh of term loans from banks and raises remaining Rs 300.46 lakh through internal accruals.

Source: Moneycontrol.com

Archidply Industries IPO oversubscribed

Receives bids for 97.64 lakh shares as against 66.15 lakh shares on offer

The IPO of Archidply Industries received decent response for its initial public offer (IPO). The IPO which closed today 17 June 2008, was subscribed 1.48 times by 17:00 IST on NSE. The IPO received bids for 97.64 lakh shares, as against 66.15 lakh shares on offer.

Archidply Industries had set Rs 70 to Rs 80 per share price band for its IPO.

Archidply Industries manufactures comprehensive engineered interior products which include plywood, block board, plain and pre laminated particle board, decorative laminates and decorative veneers.

The capital raised from the issue will be deployed to set up a new manufacturing facility of plain particle board, pre laminated board and decorative plywood at Karnataka. The capital will also be deployed to set up a new manufacturing capacity for medium density fibreboard (MDF) at Rudrapur in Uttarakhand. Also the proceeds will be deployed towards margin money for working capital.

The company reported 157.26% jump in net profit to Rs 14.87 crore on 52.68% rise in net sales to Rs 143.55 crore in the year ended March 2008 over the year ended March 2007.

Source: CapitalMarket.com

First Winner Industries IPO subscribed 1.26 times

Receives bids for 69.2 lakh shares as against 55 lakh shares on offer

The IPO of First Winner Industries received bids for 69.2 lakh shares, as against 55 lakh shares on offer till 17:30 IST on the last day of issue today. The issue was subscribed 1.26 times. The First Winner Industries IPO had opened on 9 June 2008.

The First Winner Industries IPO, which was originally scheduled to close on 12 June 2008, closed today 17 June 2008, as the company had extended the IPO closing date due to poor responce to the issue. Further the price band was revised downwards from the earlier Rs 120 to Rs 130 per share to Rs 115 to Rs 125 per share.

First Winner Industries is engaged in the manufacture of grey fabrics and in trading of textile fabrics which are supplied to various wholesalers, apparel and garment manufacturers. The company has two subsidiaries, Ramshyam Textile Industries and First Winner Lifestyle (formerly Realgold Exports), which are engaged in same businesses. Ramshyam Textile Industries has 48 looms with total installed capacity of 42.24 lakh meter fabrics per annum. First Winner Lifestyle has a weaving unit with 48 looms and total installed capacity of 62 lakh meters per annum.

First Winner Industries plans to utilise the proceeds of the IPO to set up a new apparel manufacturing facility with a production capacity of 5,000 pieces of men’s wear shirts per day at an estimated cost of Rs 12.03 crore and setting up of a new weaving unit to increase its existing production capacity to 170 lakh meter per annum at an estimated cost of Rs 21.63 crore. The company also intends to make prepayment of term loan amounting to Rs 18 crore.

The company reported 4150% spurt in net profit to Rs 2.55 crore on 45.20% rise in net sales to Rs 55.50 crore in the year ended March 2007 over the year ended March 2006.

Source: CapitalMarket.com

Somi Conveyor Beltings IPO opens on June 24

Somi Conveyor Beltings will enter the capital market with an initial public offering, IPO of 62,27,860 equity shares of Rs 10 each through 100% book building process on June 24, 2008. The price has been fixed at Rs 35 per equity share. The issue will close for subscription on June 27, 2008.

The issue comprises of contribution by promoters, of 14,99,286 equity shares of Rs 10 each at a price of Rs 35 per equity share for cash aggregating to Rs 5.25 crores, and the net issue to the public of 47,28,574 equity shares of Rs 10 each at a price of Rs 35 per equity share for cash aggregating to Rs 16.55 crores including an allocation of atleast 10% of the net issue to the public to Aualified Institutional Buyers. The net issue to public would constitute 40% of the fully diluted post issue paid up capital of the company. The issue price is 3.5 times of the face value of the equity share.

The shares are proposed to be listed on the BSE.

Ashika Capital is the Lead manager to the issue.

Mondkar Computers is the Registrar to the issue.

Source: Moneycontrol.com

CARE assigns IPO grade 3/5 to Lotus Eye Care Hospital

CARE has come out with a research report on Lotus Eye Care Hospital. It has assigned IPO Grade 3/5 to the company's IPO. The company proposes an initial public offering of about one crore equity share of face value of Rs 10 each. The issue will close today.

CARE report on Lotus Eye Care Hospital's IPO:
CARE has assigned a ‘CARE IPO Grade 3’ to the proposed IPO (initial public offer) of Lotus Eye Care Hospital (LECHL). ‘CARE IPO Grade 3’ indicates Average Fundamentals. CARE assigns IPO grades on a scale of Grade 5 to Grade 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. CARE’s IPO grading is an opinion on the relative fundamentals of the issuer. LECHL proposes an initial public offering of about one crore equity share of face value of Rs.10 each.

The grading factors in the vast experience of the promoter in the field of eye surgery, supported by qualified and experienced team of doctors, availability of latest sophisticated technology and medical equipment providing comprehensive eye care services and high profit margins of the company. The grading is however constrained by company’s small size of operation, regional presence, project implementation risk, uncertainty associated with the proposed revenue streams in light of competition from established players and moderate corporate governance practices which presents scope for improvement LECHL is a leading super-specialty eye care company, originally incorporated as “Kalaivani Health Centre Pvt Limited” in March, 1997. The name of the company was subsequently changed to “Lotus Eye Care Hospital Limited” upon conversion into Public Limited Company in October, 2007. The company was promoted by Dr.S.K.Sundaramoorthy and his family members Dr.Sundaramoorthy is a renowned eye surgeon and has more than 25 years of experience in the field of eye surgery. He is the Chairman and Managing Director (CMD) of LECHL and looks after the day to day affairs of the company.

LECHL runs a leading super-specialty eye care hospital and is headquartered in Coimbatore. LECHL offers advanced treatment for cataract, diabetic related eye diseases and refractive errors besides regular eye care services. LECHL has a team of qualified and experienced doctors in different specialties using the latest technology medical equipments and backed by well-trained paramedical and administrative team. Currently, LECHL has four eye care centers in Coimbatore, Salem and Tirupur and the total bed strength of all the centers is 120.

LECHL has structured its business activities in the form of a “hub and spokes” network under which its centers are organized into primary, secondary and tertiary eye care centers. The tertiary eye care centre functions as a hub, which is surrounded by secondary eye care centers, which are in turn served by the outermost layer of primary eye care units. This model results in increased reach and quality of service to patients and enhanced market visibility.

Gross sales of LECHL increased from Rs.221 lakh in FY05 to Rs.695 lakh in FY07 due to the acquisition of the optical business of Dr. Sundaramoorthy and merger of Dr.S.K.S. Eye Care Centre Pvt Ltd, a company promoted by Dr. Sundaramoorthy, with LECHL. Substantial portion of LECHL’s revenue is from cataract department, which accounts for around 30- 35% of the total revenue. For FY07, PBIDT and PAT margin was high as 41% and 18% respectively. ROCE and RONW were moderate at 12.8% and 14% respectively in FY07.

LECHL has planned various expansion projects which include establishing new secondary and primary centers with latest technology and expanding their existing facilities. The total estimated project cost is Rs.55 cr which will be funded by IPO issue proceeds of Rs 42 crore and debt of Rs 10 crore from various banks and balance (Rs.3cr) by internal accruals.

With the emergence of India as a destination for medical tourism, private hospitals like LECHL which provide high quality healthcare facilities at competitive costs and coupled with high success rate and growing credibility, can capitalize on the increasing health care needs of the western world. Healthcare industry is expected to get further boost with the opening up of the insurance sector to private players which will make healthcare affordable to a large number of people. Though there is an increasing preference for private medical care amongst the urban population due to the world class facilities offered by them, LECHL, with its limited presence may face tough competition from other established and bigger charitable institutions and private eye hospitals.

Source: Moneycontrol.com

Avon Weighing IPO Subscribed 45 Times

The fixed price at par IPO by Avon Weighing Systems received an overwhelming response from investors and it was subscribed 45 times, according to the data available. Keynote Corporate Services Limited is the Lead Manager for the Issue and Datamatics Financial Services Limited is the Registrar to the Issue.

The company engaged in the business of selling weighing systems in India had entered the capital markets on 9th June 2008 with a public issue of 1,37,33,033 Equity Shares of Rs 10 each at par aggregating to Rs 1373.30 lacs. This comprises of promoters’ contribution of 38,96,633 Equity Shares aggregating to Rs 389.66 lacs, leaving a net offer to the public of 98,36,400 Equity Shares aggregating Rs 983.64 lacs constituting 59.33% of the post issue paid-up capital of the Company. The Equity Shares are proposed to be listed on BSE.

Avon proposes to part finance its Rs 17.30 crore plan through the net proceeds of the Issue. The plan include setting up of facility for manufacturing of a range of weighing systems, open four showrooms for display and sale of its weighing systems in Mumbai, Delhi, Chennai and Hyderabad, and purchase of additional office premises in Mumbai. The project is proposed to be funded through IPO of Rs 9.83 crores, promoters contribution of Rs 4.36 crores, internal accruals of Rs. 0.50 crore and a term loan of Rs.2.60 crores from Bank of India.

The proposed manufacturing plant will be set up at Baddi in Himachal Pradesh with technical assistance from Tanita Corporation of Japan. Avon will be able to enjoy fiscal incentives provided by the Himachal Pradesh government for setting up plant at Baddi.

Source: Moneycontrol.com

First Winner revises IPO price band to Rs 115-125

First Winner Industries presently engaged in the manufacture of grey fabrics and in trading of textile fabrics which are supplied to various wholesalers, apparel and garment manufacturers, announced that its public issue, which was initially slated to close on June 12, will now close on June 17. The price band has been revised downwards from Rs 120-130 to Rs 115-125. As on June 12 the issue had received bids for 40.69 lakh shares as against issue size of 55,00,000 shares and was subscribed only 0.74 times.

The issue had opened for subscription on June 9, 2008 with an Initial Public Offering (IPO) of 55,00,000 Equity Shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.

The Equity Shares are proposed to be listed on Bombay Stock Exchange Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”). Almondz Global Securities Limited is the sole Book Running Lead Manager (“BRLM”) to the Issue.

Source: Moneycontrol.com

Archidply Industries IPO sees poor response on day three

Receives bids for 6.17 lakh shares as against 66.15 lakh shares on offer

The IPO of Archidply Industries continued to see muted response on day three. As per NSE data, the IPO received bids for just 6.17 lakh shares, as against 66.15 lakh shares on offer. The issue was subscribed 0.09 times.

Archidply Industries has set Rs 70 to Rs 80 per share price band for its IPO. The issue will close on 17 June 2008.

Archidply Industries manufactures comprehensive engineered interior products which include plywood, block board, plain and pre laminated particle board, decorative laminates and decorative veneers.

The capital raised from the issue will be deployed to set up a new manufacturing facility of plain particle board, pre laminated board and decorative plywood at Karnataka. The capital will also be deployed to set up a new manufacturing capacity for medium density fibreboard (MDF) at Rudrapur in Uttarakhand. Also the proceeds will be deployed towards margin money for working capital.

The company reported 157.26% jump in net profit to Rs 14.87 crore on 52.68% rise in net sales to Rs 143.55 crore in the year ended March 2008 over the year ended March 2007.

Source: Capitalmarket.com

First Winner Industries IPO subscribed 0.74 times by day five

Receives bids for 40.54 lakh shares as against 55 lakh shares on offer

The First Winner Industries IPO, which was originally scheduled to close on 12 June 2008, will now close on 17 June 2008, as the issue remained unsubscribed. Further the price band has also been revised from the earlier Rs 120 to Rs 130 per share to Rs 115 to Rs 125 per share.

The IPO received bids for 40.54 lakh shares, as against 55 lakh shares on offer, by day five. The issue was subscribed 0.74 times. The First Winner Industries IPO had opened on 9 June 2008.

First Winner Industries is engaged in the manufacture of grey fabrics and in trading of textile fabrics which are supplied to various wholesalers, apparel and garment manufacturers. The company has two subsidiaries, Ramshyam Textile Industries and First Winner Lifestyle (formerly Realgold Exports), which are engaged in same businesses. Ramshyam Textile Industries has 48 looms with total installed capacity of 42.24 lakh meter fabrics per annum. First Winner Lifestyle has a weaving unit with 48 looms and total installed capacity of 62 lakh meters per annum.

First Winner Industries plans to utilise the proceeds of the IPO to set up a new apparel manufacturing facility with a production capacity of 5,000 pieces of men’s wear shirts per day at an estimated cost of Rs 12.03 crore and setting up of a new weaving unit to increase its existing production capacity to 170 lakh meter per annum at an estimated cost of Rs 21.63 crore. The company also intends to make prepayment of term loan amounting to Rs 18 crore

The company reported 4150% spurt in net profit to Rs 2.55 crore on 45.20% rise in net sales to Rs 55.50 crore in the year ended March 2007 over the year ended March 2006.

Source: Capitalmarket.com

Lotus Eye Care Hospital IPO subscribed 0.25 times by day two

The Lotus Eye Care Hospital IPO was subscribed 0.25 times by day two. The IPO received bids for 25.20 lakh shares, as against 1 crore shares on offer.

Lotus Eye Care Hospital entered the primary market with a public issue of 1 crore equity shares of Rs 10 each through the 100% book building process. The price band has been fixed at Rs 38 to Rs 42 per share. The issue closes on 17 June 2008.

Lotus Eye Care Hospital is a leading super-speciality eye care company with eye care hospitals and clinics at locations in South India. It presently has a network of two eye care hospitals at Coimbatore and one each in Salem and Tirupur. The network had nine operation theatres and three lasik laser equipment and total bed strength of all the centres was 120 beds, excluding eye camp beds.

The company plans to utilise the net proceeds of the issue to part finance its Rs 55-crore expansion plan.

The company reported 148.10% jump in net profit to Rs 1.29 crore on 177.80% surge in net sales to Rs 6.75 crore in the year ended March 2007 over the year ended March 2006.

Source: Capitalmarket.com

Sejal Architectural Glass IPO ends with healthy subscription

Receives bids for 9.10 crore shares as against 91.94 lakh shares on offer

The IPO of Sejal Architectural Glass, a glass processing house, saw good response for its initial public offer. The IPO which closed on 12 June 2008, was subscribed 9.90 times. The IPO received bids for 9.10 crore shares, as against 91.94 lakh shares on offer. The IPO had opened on 9 June 2008.

The price band for the IPO has been set at Rs 105 to Rs 115. The company proposes to list its equity shares on the National Stock Exchange and Bombay Stock Exchange.

The company will use proceedings from the IPO in setting up a new manufacturing for the production of float glass with an installed capacity of 2,00,750 metric tonnes (MT) per annum at Bharuch in Gujarat. The new production unit would start commercial operations in March 2009. Presently, the company has processing facilities for insulating, toughened, laminated glasses and decorative glass.

Setting up of the greenfield project would be a step towards backward integration for the company and would enable it to control its cost and enhance the quality of glass used for value-added products and brands like Kool Glass, Armor Glass, Fort Glass and Tone Glass.

The company reported 27.80% rise in net profit to Rs 2.76 crore on 29.60% rise in net sales to Rs 38.24 crore in the year ended March 2007 over the year ended March 2006.

Source: Capitalmarket.com

Oil India plans to launch IPO by September

Oil India is planning to launch initial public offering (IPO) by September 2008. The company expects SEBI nod next month, reports CNBC-TV18 quoting NW18.

Source: Moneycontrol.com

Lotus Eye Care Hospital IPO subscribed 0.25 times on day one

Receives bids for 25.12 lakh shares as against 1 crore shares on offer

The Lotus Eye Care Hospital IPO was subscribed 0.25 times on day one. The IPO received bids for 25.12 lakh shares (by 16:00 IST), as against 1 crore shares on offer.

Lotus Eye Care Hospital entered the primary market with a public issue of 1 crore equity shares of Rs 10 each through the 100% book building process. The price band has been fixed at Rs 38 to Rs 42 per share. The issue closes on 17 June 2008.

Lotus Eye Care Hospital is a leading super-speciality eye care company with eye care hospitals and clinics at locations in South India. It presently has a network of two eye care hospitals at Coimbatore and one each in Salem and Tirupur. The network had nine operation theatres and three lasik laser equipment and total bed strength of all the centres was 120 beds, excluding eye camp beds.

The company plans to utilise the net proceeds of the issue to part finance its Rs 55-crore expansion plan.

The company reported 148.10% jump in net profit to Rs 1.29 crore on 177.80% surge in net sales to Rs 6.75 crore in the year ended March 2007 over the year ended March 2006.

Source: Capitalmarket.com

First Winner Industries IPO sees poor response

Receives bids for 35.11 lakh shares as against 55 lakh shares on offer

The First Winner Industries IPO remained unsubscribed on its final day. As per NSE data, the IPO received bids for 35.11 lakh shares (by 16:00 IST), as against 55 lakh shares on offer. The issue was subscribed 0.64 times.

The First Winner Industries IPO had opened on 9 June 2008. The company has set Rs 120 to Rs 130 per share price band for the IPO.

First Winner Industries is engaged in the manufacture of grey fabrics and in trading of textile fabrics which are supplied to various wholesalers, apparel and garment manufacturers. The company has two subsidiaries, Ramshyam Textile Industries and First Winner Lifestyle (formerly Realgold Exports), which are engaged in same businesses. Ramshyam Textile Industries has 48 looms with total installed capacity of 42.24 lakh meter fabrics per annum. First Winner Lifestyle has a weaving unit with 48 looms and total installed capacity of 62 lakh meters per annum.

First Winner Industries plans to utilise the proceeds of the IPO to set up a new apparel manufacturing facility with a production capacity of 5,000 pieces of men’s wear shirts per day at an estimated cost of Rs 12.03 crore and setting up of a new weaving unit to increase its existing production capacity to 170 lakh meter per annum at an estimated cost of Rs 21.63 crore. The company also intends to make prepayment of term loan amounting to Rs 18 crore

The company reported 4150% spurt in net profit to Rs 2.55 crore on 45.20% rise in net sales to Rs 55.50 crore in the year ended March 2007 over the year ended March 2006.

Source: Capitalmarket.com

Archidply Industries IPO sees poor response on day two

Receives bids for 5.67 lakh shares as against 66.15 lakh shares on offer

The IPO of Archidply Industries continued to see muted response on day two. As per NSE data, the IPO received bids for just 5.67 lakh shares (by 16:00 IST), as against 66.15 lakh shares on offer. The issue was subscribed 0.09 times.

Archidply Industries has set Rs 70 to Rs 80 per share price band for its IPO. The issue will close on 17 June 2008.

Archidply Industries manufactures comprehensive engineered interior products which include plywood, block board, plain and pre laminated particle board, decorative laminates and decorative veneers.

The capital raised from the issue will be deployed to set up a new manufacturing facility of plain particle board, pre laminated board and decorative plywood at Karnataka. The capital will also be deployed to set up a new manufacturing capacity for medium density fibreboard (MDF) at Rudrapur in Uttarakhand. Also the proceeds will be deployed towards margin money for working capital.

The company reported 157.26% jump in net profit to Rs 14.87 crore on 52.68% rise in net sales to Rs 143.55 crore in the year ended March 2008 over the year ended March 2007.

Source: Capitalmarket.com

Sejal Architectural Glass IPO sees healthy subscription

Receives bids for 6.86 crore shares as against 91.94 lakh shares on offer

The IPO of Sejal Architectural Glass, a glass processing house, was subscribed 7.47 times (by 16:00 IST), on its last day. The IPO received bids for 6.86 crore shares, as against 91.94 lakh shares on offer. The IPO had opened on 9 June 2008.

The price band for the IPO has been set at Rs 105 to Rs 115. The company proposes to list its equity shares on the National Stock Exchange and Bombay Stock Exchange.

The company will use proceedings from the IPO in setting up a new manufacturing for the production of float glass with an installed capacity of 2,00,750 metric tonnes (MT) per annum at Bharuch in Gujarat. The new production unit would start commercial operations in March 2009. Presently, the company has processing facilities for insulating, toughened, laminated glasses and decorative glass.

Setting up of the greenfield project would be a step towards backward integration for the company and would enable it to control its cost and enhance the quality of glass used for value-added products and brands like Kool Glass, Armor Glass, Fort Glass and Tone Glass.

The company reported 27.80% rise in net profit to Rs 2.76 crore on 29.60% rise in net sales to Rs 38.24 crore in the year ended March 2007 over the year ended March 2006.

Source: Capitalmarket.com

Archidply Industries IPO sees poor response on day one

Receives bids for mere 1.93 lakh shares as against 66.15 lakh shares on offer

The IPO of Archidply Industries saw muted response on day one. As per NSE data, the IPO received bids for just 1.93 lakh shares (by 16:00 IST), as against 66.15 lakh shares on offer. The issue was subscribed 0.03 times.

Archidply Industries has set Rs 70 to Rs 80 per share price band for its IPO. The issue will close on 17 June 2008.

Archidply Industries manufactures comprehensive engineered interior products which include plywood, block board, plain and pre laminated particle board, decorative laminates and decorative veneers.

The capital raised from the issue will be deployed to set up a new manufacturing facility of plain particle board, pre laminated board and decorative plywood at Karnataka. The capital will also be deployed to set up a new manufacturing capacity for medium density fibreboard (MDF) at Rudrapur in Uttarakhand. Also the proceeds will be deployed towards margin money for working capital.

The company reported 157.26% jump in net profit to Rs 14.87 crore on 52.68% rise in net sales to Rs 143.55 crore in the year ended March 2008 over the year ended March 2007.

Source: Capitalmarket.com

First Winner Industries IPO sees muted response on day three

Receives bids for 14.55 lakh shares as against 55 lakh shares on offer

First Winner Industries IPO saw muted response for its IPO on day three. As per NSE data, the IPO received bids for 14.55 lakh shares (by 16:00 IST), as against 55 lakh shares on offer. The issue was subscribed 0.26 times.

The First Winner Industries IPO will close on 12 June 2008. The company has set Rs 120 to Rs 130 per share price band for the IPO.

First Winner Industries is engaged in the manufacture of grey fabrics and in trading of textile fabrics which are supplied to various wholesalers, apparel and garment manufacturers. The company has two subsidiaries, Ramshyam Textile Industries and First Winner Lifestyle (formerly Realgold Exports), which are engaged in same businesses. Ramshyam Textile Industries has 48 looms with total installed capacity of 42.24 lakh meter fabrics per annum. First Winner Lifestyle has a weaving unit with 48 looms and total installed capacity of 62 lakh meters per annum.

First Winner Industries plans to utilise the proceeds of the IPO to set up a new apparel manufacturing facility with a production capacity of 5,000 pieces of men’s wear shirts per day at an estimated cost of Rs 12.03 crore and setting up of a new weaving unit to increase its existing production capacity to 170 lakh meter per annum at an estimated cost of Rs 21.63 crore. The company also intends to make prepayment of term loan amounting to Rs 18 crore

The company reported 4150% spurt in net profit to Rs 2.55 crore on 45.20% rise in net sales to Rs 55.50 crore in the year ended March 2007 over the year ended March 2006.

Source: Capitalmarket.com

Sejal Architectural Glass IPO subscribed 1.29 times by day three

Receives bids for 1.18 crore shares as against 91.94 lakh shares on offer.

The IPO of Sejal Architectural Glass, a glass processing house, was subscribed 1.29 times (by 16:00 IST), on third day of its issue. The IPO received bids for 1.18 crore shares, as against 91.94 lakh shares on offer. The issue closes on 12 June 2008.

The price band for the IPO has been set at Rs 105 to Rs 115. The company proposes to list its equity shares on the National Stock Exchange and Bombay Stock Exchange.

The company will use proceedings from the IPO in setting up a new manufacturing for the production of float glass with an installed capacity of 2,00,750 metric tonnes (MT) per annum at Bharuch in Gujarat. The new production unit would start commercial operations in March 2009. Presently, the company has processing facilities for insulating, toughened, laminated glasses and decorative glass.

Setting up of the greenfield project would be a step towards backward integration for the company and would enable it to control its cost and enhance the quality of glass used for value-added products and brands like Kool Glass, Armor Glass, Fort Glass and Tone Glass.

The company reported 27.80% rise in net profit to Rs 2.76 crore on 29.60% rise in net sales to Rs 38.24 crore in the year ended March 2007 over the year ended March 2006.

Source: Capitalmarket.com

CRISIL assigns IPO grade 3/5 to Nu Tek India

CRISIL has come out with a research report on Nu Tek India's IPO. It has assigned a CRISIL IPO Grade 3/5 to the company's IPO. The issue consists of fresh issue of 3.5 million shares and the offer for sale of 1 million shares aims to raise Rs 1,125 million - Rs 1,350 million.

CRISIL's report on Nu Tek India's IPO:
CRISIL has assigned a CRISIL IPO Grade "3/5" to the proposed initial public offer of Nu Tek India Ltd. (NTIL). This grade indicates that the fundamentals of the issue are 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 grade is not a recommendation to buy / sell or hold the graded instrument, or a comment on the graded instrument's future market price or its suitability for a particular investor.

The grading reflects NTIL's strength in offering a complete range of services related to the roll out of wireless telecom infrastructure. NTIL has proven execution capability in the deployment of wireless telecom infrastructure in difficult terrains such as Jammu & Kashmir (J&K). The company also has the advantage of having worked on projects with relatively new technologies such as WiMax and the successful implementation of the underground network for Delhi Metro Rail. NTIL's clients include all major telecom operators, telecom equipment vendors and telecom infrastructure leasing companies. On the back of NTIL's healthy order book position and strong network roll out plans of telecom operators, we expect the company's revenue growth momentum to continue over the next couple of years. However, margins may contract slightly due to change in the revenue mix in favour of full turnkey projects.

NTIL's business direction and vision is governed by its founder promoter - Mr. Inder Sharma. The second line management of the company is relatively strong and headed by people with vast domain expertise.

Our grading is tempered by the company's unfavourable working capital position that has deteriorated over the past two years. The grading also takes into consideration the limited management bandwidth available to the company in view of the expected strong growth in existing business. The grading also reflects the inadequate corporate governance structure that could lead to a potential area of conflict.

The issue consists of fresh issue of 3.5 million shares and the offer for sale of 1 million shares aims to raise Rs 1,125 million - Rs 1,350 million.

About the company and the issue:
Formed in 1993, Nu Tek India Ltd (NTIL) is a telecom infrastructure service provider, offering services related to the infrastructure roll out, primarily for the wireless telecom network. The company's range of services includes conceptualisation, design, construction, installation, commissioning, integration, testing, operation and maintenance of wireless telecom infrastructure (both active as well as passive). In addition, it also provides services in relation to laying of optic fibre network. The Delhi-based company derives a major portion of its revenues from the northern region of India.

NTIL was promoted by Mr. Inder Sharma and his wife Mrs. Sumati Sharma in 1993, as a company providing maintenance services for Alcatel's E-10B switches to ITI Ltd. In 1996, the company started offering technical manpower outsourcing services for telecom projects and in 1999, the company expanded its operations by offering services related to installation and integration of active telecom infrastructure. In 2002, the company ventured into telecom turnkey projects for the construction and installation of passive telecom infrastructure. Finally, in 2005, NTIL started offering services in relation to the operation and maintenance of telecom infrastructure. NTIL has recently set up a subsidiary in Turkey to carry on the existing business of telecom infrastructure services in Turkey.

In 2006-07, the company reported a net profit of Rs 127 million on a turnover of Rs 637 million. In 2006-07, the company's return on capital employed (RoCE) and return on equity (RoE) was 48.7 per cent and 41.1 per cent, respectively. For the six-month period ended September 2007, NTIL reported a net profit of Rs 74 million on a turnover of Rs 386 million.

Source: Moneycontrol.com

Subscribe to Sejal IPO with long term view

Keynote Capitals has come out with a report on Sejal Architectural Glass' IPO. It has recommended investors to subscribe the issue with a long term view.

The issue has opened for subscription with its initial public offering (IPO) of 9.2 million equity shares of face value Rs 10 each. The issue will close on June 12, 2008. The price band has been fixed at Rs 105 to Rs 115 per equity share.

Keynote's report on Sejal Architectural Glass' IPO:
Incorporated in 1998, Sejal Architectural Glass (SAGL) is into processing of insulating, toughened and laminated glass. Its plant is located at Dadra, Nagar Haveli. The company also has a trading division which supports various in-house brands and products of other manufacturers. The products include tiles, sanitaryware, mirrors, glass, etc. for home and commercial interiors.

The per capita consumption of glass doubled from 0.4Kg in 1999 to 0.8 Kg in 2007. Float glass and sheet glass constitute 89% and 11% of the flat (float and sheet) glass market respectively. The flat glass industry in India grew by 90% during FY00-07. The demand for flat glass in 2005 was 1977 tonnes per day, a growth of 18.5% y-o-y.

Construction and auto are the major user industries of float glass. While 83% of glass is used in construction, 15% is used in automotive industry. Both these industries reported phenomenal growth during the past few years, on account of softened interest rates.

However, the recent macro-economic developments are not very encouraging for construction and automotive industries. In the backdrop of the growing inflation, rising crude oil prices and increasing interest rate scenario, both industries are likely to see a marginal slowdown in the medium term.

The glass industry is also going under the strain of over-capacity situation, (which is likely to continue for next 1-2 years), cheap Chinese glass imports and lack of codes of standards for Indian glass.

SAGL plans to set-up a glass manufacturing line (capacity of 550 tonnes per day) in Gujarat. The line is expected to commence production in March 2009.

The Indian glass industry has immense potential to grow as the long term growth story in the constructionand automotive industries in India remains intact. The introduction of low-cost cars and the changing focus of real estate developers to semi-urban cities due to high land prices can be major growth drivers.

In our view, though SAGL has a track record of 7 years in the glass industry, processing has been its core business. We believe there is an execution risk. Further the expansion will reflect in revenues only from FY10. The company has raised Rs310Cr in debt for the purpose of expansion, servicing of which can further impact profitability. Competing with other market leaders and marketing efforts would require strong management support.

Valuation:
IPO is priced at 73.3x FY09E and 19.4 FY10E earnings. Considering the aggressive plans of the company (increasing balance sheet size by 6 times) and also taking into account execution risks, high leverage, recent macro-economic scenario, we recommend subscribing with a long term view only.

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

Sejal Architectural Glass IPO subscribed 0.75 times - Day 2

Receives bids for 69.19 lakh shares as against 91.94 lakh shares on offer

The IPO of Sejal Architectural Glass, a glass processing house, was subscribed 0.75 times on second day of its issue (till 16:00 IST). The IPO received bids for 69.19 lakh shares, as against 91.94 lakh shares on offer. The issue closes on 12 June 2008.

The price band for the IPO has been set at Rs 105 to Rs 115. The company proposes to list its equity shares on the National Stock Exchange and Bombay Stock Exchange.

The company will use proceedings from the IPO in setting up a new manufacturing for the production of float glass with an installed capacity of 2,00,750 metric tonnes (MT) per annum at Bharuch in Gujarat. The new production unit would start commercial operations in March 2009. Presently, the company has processing facilities for insulating, toughened, laminated glasses and decorative glass.

Setting up of the greenfield project would be a step towards backward integration for the company and would enable it to control its cost and enhance the quality of glass used for value-added products and brands like Kool Glass, Armor Glass, Fort Glass and Tone Glass.

The company reported 27.80% rise in net profit to Rs 2.76 crore on 29.60% rise in net sales to Rs 38.24 crore in the year ended March 2008 over the year ended March 2007.

Source: Capitalmarket.com

First Winner Industries IPO subscribed 0.26 times - Day Two

Receives bid for 14.16 lakh shares as against 55 lakh shares on offer

First Winner Industries IPO saw muted response for its IPO on day two. As per NSE data, the IPO received bids for 14.16 lakh shares by 16:00 IST today, as against 55 lakh shares on offer. The issue was subscribed 0.26 times.

The First Winner Industries IPO will close on 12 June 2008. The company has set Rs 120 to Rs 130 per share price band for the IPO.

First Winner Industries is engaged in the manufacture of grey fabrics and in trading of textile fabrics which are supplied to various wholesalers, apparel and garment manufacturers. The company has two subsidiaries, Ramshyam Textile Industries and First Winner Lifestyle (formerly Realgold Exports), which are engaged in same businesses. Ramshyam Textile Industries has 48 looms with total installed capacity of 42.24 lakh meter fabrics per annum. First Winner Lifestyle has a weaving unit with 48 looms and total installed capacity of 62 lakh meters per annum.

First Winner Industries plans to utilise the proceeds of the IPO to set up a new apparel manufacturing facility with a production capacity of 5,000 pieces of men’s wear shirts per day at an estimated cost of Rs 12.03 crore and setting up of a new weaving unit to increase its existing production capacity to 170 lakh meter per annum at an estimated cost of Rs 21.63 crore. The company also intends to make prepayment of term loan amounting to Rs 18 crore

The company reported 4150% spurt in net profit to Rs 2.55 crore on 45.20% rise in net sales to Rs 55.50 crore in the year ended March 2008 over the year ended March 2007.

Source: Capitalmarket.com

Sejal Architectural Glass IPO subscribed 0.18 times on day one

Receives bid for 16.26 lakh shares as against 91.94 lakh shares on offer

The IPO of Sejal Architectural Glass, a glass processing house, was subscribed 0.18 times on first day of its issue. The IPO received bids for 16.26 lakh shares (by 16:00 IST), as against 91.94 lakh shares on offer (As at 16:00 IST). The issue will close on 12 June 2008.

The price band for the IPO has been set at Rs 105 to Rs 115. The company proposes to list its equity shares on the National Stock Exchange and Bombay Stock Exchange.

The company will use proceedings from the IPO in setting up a new manufacturing for the production of float glass with an installed capacity of 2,00,750 metric tonnes (MT) per annum at Bharuch in Gujarat. The new production unit would start commercial operations in March 2009.

Presently, the company has processing facilities for insulating, toughened, laminated glasses and decorative glass.

Setting up of the greenfield project would be a step towards backward integration for the company and would enable it to control its cost and enhance the quality of glass used for value-added products and brands like Kool Glass, Armor Glass, Fort Glass and Tone Glass.

The company reported 27.80% rise in net profit to Rs 2.76 crore on 29.60% rise in net sales to Rs 38.24 crore in the year ended March 2008 over the year ended March 2007.

Source: Capitalmarket.com

First Winner Industries IPO sees dismal response on first day

Receives bid for just 2950 shares as against 55 lakh shares on offer

First Winner Industries IPO saw dismal performance for its IPO on day one. The issue received bids for just 2950 shares (by 16:00 IST) as against 55 lakh shares on offer

The First Winner Industries IPO will close on 12 June 2008. The company has set Rs 120 to Rs 130 per share price band for the IPO.

First Winner Industries is engaged in the manufacture of grey fabrics and in trading of textile fabrics which are supplied to various wholesalers, apparel and garment manufacturers. The company has two subsidiaries, Ramshyam Textile Industries and First Winner Lifestyle (formerly Realgold Exports), which are engaged in same businesses. Ramshyam Textile Industries has 48 looms with total installed capacity of 42.24 lakh meter fabrics per annum. First Winner Lifestyle has a weaving unit with 48 looms and total installed capacity of 62 lakh meters per annum.

First Winner Industries plans to utilise the proceeds of the IPO to set up a new apparel manufacturing facility with a production capacity of 5,000 pieces of men’s wear shirts per day at an estimated cost of Rs 12.03 crore and setting up of a new weaving unit to increase its existing production capacity to 170 lakh meter per annum at an estimated cost of Rs 21.63 crore. The company also intends to make prepayment of term loan amounting to Rs 18 crore

The company reported 4150% spurt in net profit to Rs 2.55 crore on 45.20% rise in net sales to Rs 55.50 crore in the year ended March 2008 over the year ended March 2007.

Source: Capitalmarket.com

Avoid First Winner, Sejal Architectural IPOs

SP Tulsian of sptulsian.com feels that First Winner is ruling at IPO price of about may be 50% or may be 60% with a P/E multiple of 4 to 5. It is a very aggressively priced issue; clear skip for the issue. Sejal Architectural Glass is a very risky venture inspite of having the project potential and highly priced.

Q: Lot’s of chhota (small) Initial Public Offering (IPOs) have opened the first one is the First Winner do you like the story there?

A: You have rightly put it that chhota IPOs (small IPOs) are coming because the badda IPOs (big IPOs) have no guts and courage to tap this capital market because of their plans of having or the drawing boards that they have done the calculation at a very stiff pricing.

Coming on the First Winner; it's a pure textile story. Their weaving capacity has gone on swing just last year and may be because of the working capital pressure, its entire capacity is being used on the job work basis and that too at a capacity utilization of close to 51% and it is very strange to see the companies going into further expansion. Right now they have about more than 100 handlooms and they are adding on about 60 handlooms further, they are also putting a stitching capacity of about 5,000 shirts per day. Already we have seen the fate of all the textile stocks, the leading one which are into the integrated, having their weaving capacity, processing, dyeing and all sort of things are not doing well. They are ruling at their IPO price of about may be 50% or may be 60% with a P/E (Price-Earnings ratio) multiple of 4 to 5.

I am not here to take a call on the P/E basis for this IPO, which would be any where about 25-30 times. So the call is that it is a very aggressively priced issue; no questions of giving any thoughts, clear skip for the issue.

Q: What about Sejal Architectural Glass. How do you rate that one?

A: I would say that project is very interesting. They are going into the float glass, which is on gas base; they have tied up the gas at USD 7.5 per million British thermal unit. They have this sand supply, which is a critical raw material they have this soda ash availability in the region because they are setting up their project in Dahej. See the promoter’s background - they have all along been into trading, they have been procuring float glass from outside executing the main direct contracts as well as the sub-contracts. Now they are setting up a project of Rs 480 crore of which about Rs 320 crore is debt with a clear-cut debt-equity ratio of 2:1. Definitely the listed peer is float glass, which is in fact their feedstock is naphtha so they are not able to make a good profit. Their profitability has been taking a hit. But unlisted stock the Gujarat Guardian Ltd they have been doing quite well.

When you compare with the listed peer definitely you get a scary picture for the industry inspite of having the good future ahead of this sector. Promoters capability could also come into the way because Rs 320 crore debts, Rs 160 crore financing of which about Rs 100 crore odd is coming from the IPO, I do not think that financial structuring is really very healthy. Any delay in execution or any non-establishment or not settling with the production could really spoil the financials of the company and even if they incur a loss of Rs 40-50 crore in the first year. The whole projects can start facing problems.

It’s a very risky venture inspite of having the project potential. But again the question comes is of the stiff valuation probably at Rs 60-70 a share would have been an attractive investment leaving some room for the prospective investors who make money but not at Rs 100 or maybe at Rs 110.

Q: What about the third one Avon Weighing Systems?

A: I think the promoters have understood the present state of the market. So straight away they have gone with the price tag of at par, inspite of the book value of the share at Rs 120. The company has been all along marketing the electronic weighing scale of two Japanese manufacturers and having gained the marketing experience, having gained the feel of the market for the last six to seven years, now they have started or thought of venturing into the production of the weighing scale setting up a unit in Himachal Pradesh and it is a very small project of about Rs 40 crore.

But if you see the equity of about Rs 17 crore and the project financing, probably at par looking to the book value of Rs 20 as on today, and the experience of the promoter at least one could take a chance though the expectation should not be too high because this is a typically a macro-cap company with a expected marketcap of about Rs 30-40 crore. But if somebody has to see the downside, I do not think the share price can go below Rs 10, you can have the chances of making 20-30% profits on listing or may be even if you remain invested for couple of years into the stock.

SP Tulsian Disclosure: I do not have any interest in the IPOs commented upon.

Source: Moneycontrol.com

Gokul Refoils and Solvent to debut on Wednesday 4th June

Gokul Refoils and Solvent will list on the stock exchanges on Wednesday, 4 June 2008. The stock will be placed in the B Group on BSE.

The company had fixed issue price at the top end of the Rs 175-Rs 195 per share IPO price band.

At Rs 195, the price earning (PE) works out to 19.11, based on the year ended March 2007 EPS of Rs 10.2.

The Gokul Refoils and Solvent IPO had ended on 13 May 2008 with 4.27 times subscription. The IPO received bids for 3.05 crore shares as against 71.58 lakh shares on offer.

The qualified institutional buyers (QIBs) category was subscribed 2.72 times, the non institutional investors category was subscribed 6.58 times and the retail investors category was subscribed 5.59 times.

Gokul Refoils and Solvent is primarily engaged in the business of solvent extraction, refining of edible oils and vanaspati manufacturing. At present the company has 680 tonnes per day (TPD) of seed processing, 600 TPD of solvent extraction, 1200 TPD of refining and 200 TPD of vanaspati manufacturing capacities.

The company plans to utilise the proceeds of the IPO for setting up a new 1500 tonnes per day (TPD) soyabean processing plant near Gandhidham, Gujarat; expansion of the existing edible oil refinery at Surat; investment in Singapore subsidiary; funding part of the long term working capital; brand building activities; investment in increasing warehousing capacities and continuous capex for exising units; general corporate purposes and for public issue expenses.

Gokul Refoils and Solvent reported a net profit of Rs 26.94 crore on sales of Rs 1562.49 crore in the year ended March 2007.

Source: Capitalmarket.com

Anu's Laboratories to debut on 4th June Wednesday

Anu's Laboratories will list on the stock exchanges on Wednesday, 4 June 2008. The stock will be placed in the B Group on BSE.

The company had fixed the issue price at the top end of the Rs 200-Rs 210 per share IPO price band.

At Rs 210, the price earning (PE) multiple works out to Rs 18.58, based on the year ended March 2007 EPS of Rs 11.3.

The Anu's Laboratories IPO had ended on 15 May 2008 with 8.43 times subscription. The IPO received had bids for 3.22 crore shares as against 38.20 lakh shares on offer.

The qualified institutional buyers (QIBs) category was subscribed 2.83 times, the non institutional investors portion was subscribed 26.97 times and the retail investors portion was subscribed 9.64 times.

Anu's Laboratories is engaged in the manufacturing of basic, advanced intermediates and fine chemicals and supplying them to various drug manufacturers.

The company plans to utilize the proceeds for – setting up a new plant for manufacturing of drug intermediates including active pharmaceutical ingredients at Vishakhapatnam, setting up of pilot plant for carrying out contract research and manufacturing at Vishakhapatnam, for long term working capital requirement, general corporate purposes and for issue expenses.

Anu's Laboratories reported a net profit of Rs 13.59 on sales of Rs 107.82 in the year ended March 2007.

Source: Capitalmarket.com