SEBI has agreed to dispose of pending proceedings against Mr Gautam Jhaveri for his involvement in the IPO scam of 2003-04, following settlement of the case through a consent order.
Mr Zhaveri who applied for the consent order, paid Rs 2.7 crore towards settlement, including a disgorgement amount of Rs 2.36 crore, settlement charges of Rs 23.6 lakh, compounding charges of Rs 9 lakh and legal charges of Rs 1 lakh.
The applicant (Zhaveri) had been proceeded against for irregular dealings in shares issued through IPOs, and for cornering shares meant for retail investors, making unlawful profits from the shares upon their listing.
SEBI had banned the applicant from dealing in the securities market; initiated adjudication proceedings against him, prosecution proceedings in the ACMM court in Mumbai under the Companies Act; and a protest petition before the CBI court for non-filing of chargesheet against the applicant.
SEBI’s consent order disposes of all these pending proceedings. SEBI will file an application for withdrawal of its protest application at the CBI special court, and shall not oppose compounding of prosecution in the ACMM court, the regulator said in its consent order.
SEBI said it would also drop proceedings against Pratik Stock Vision Pvt Ltd in the matter of carry forward transactions in the shares of Global Tele-systems Ltd in 2000-01. The applicant offered to settle the case, offering Rs 1.25 lakh towards settlement charges, reports The Hindu Business Line.
Source: Moneycontrol.com
Showing posts with label IPO. Show all posts
Showing posts with label IPO. Show all posts
Friday, July 3, 2009
Monday, September 22, 2008
CARE assigns IPO Grade 2/5 to Gemini Engi-Fab
CARE has come out with a research report on Gemini Engi-Fab. It has assigned IPO Grade 2/5 to the company's IPO. GEFL proposes an IPO of 55,00,000 equity shares of face value of Rs 10 each, at a price which will be determined through the book building process.
CARE's report on Gemini Engi-Fab's IPO:
CARE has assigned ‘CARE IPO Grade 2’ to the proposed (Initial Public Offer) IPO of Gemini Engi–Fab Limited (GEFL). CARE IPO Grade 2 indicates below 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 assessment of the fundamentals of that issuer. GEFL proposes an IPO of 55,00,000 equity shares of face value of Rs 10 each, at a price which will be determined through the book building process.
The grading factors in promoters’ experience in fabrication and engineering industry, long track record in operations, favourable industry scenario for fabrication and salvaging of equipment, multi-product capability of company, strong growth in order book, good profitability margins in past financial years, sanctioning of term loan by the bankers for the proposed expansion project and expected improvement in technical capabilities of the company post expansion .
However, the grading is constrained by GEFL’s relatively small size of operations, dependence on IPO proceeds for the proposed project completion, unorganized and highly competitive industry in which the company operates, moderate corporate governance practices, low entry barriers, dependence on few customers and limited experience of management in executing large projects. The grading is also constrained by risks associated with proposed deployment of funds from the IPO in setting up new manufacturing units.
“Gemini Engi-Fab Private Limited” was incorporated as a private limited company on January 12, 1998 and later converted into a public limited company “Gemini Engi-Fab Limited” (GEFL) in January 2007. Promoted by the members of the Panchal family, the company is in the business of manufacturing and salvaging of process equipment through fabrication for various process industries. GEFL manufactures spares, channel heads, tube sheets and tube bundles for refineries. It also manufactures heat exchangers for refineries and dairy plants, pressure vessels, storage vessels, tanks, heat exchangers, distillation and absorption columns. The company has also entered into salvaging of equipment in 2006-07.
The company currently has a weight handling capacity of 27 tonnes. The existing workshop of the company is located at Umbergaon in Valsad and it proposes to build a new workshop near its existing facilities with higher technical capabilities so as to move up the value chain.
The proceeds from the proposed issue of shares are intended to be deployed for setting up a new manufacturing workshop at Umbergaon, meeting working capital requirements, general corporate purposes and issue expenses. As per the organizational structure of GEFL, Mr. Dalpatram J. Panchal, Chairman & Executive Director, is supported by a team of senior executives headed by Mr. Rakesh Panchal, Managing Director of GEFL.
The company has three legal cases pending against it as on July 07, 2008. They include a case in relation to payment of back wages of Rs.1.84 lakh, another case in relation to transfer of duty paid goods from one industrial plot to another owned by GEFL without the permission of Central Excise Authorities and the third case of compounding applications filed by GEFL with the Company Law Board (CLB) in relation to non increment of paid-up capital upto one lakh and non appointment of company secretary during the period October 2007 to February 2008.
With an increase in the manufacturing facility and due to manufacturing of specialized equipment, salvaging and trading operations during the period FY 2005-08, the company has reported a CAGR of 74.21% for the above period. In future, the demand for the fabrication and salvaging from various sectors is likely to provide good growth opportunities to the company therefore, the growth projected and the margins expected appear reasonable considering the track record of the company. Post IPO, the company will be moving up the value chain and competing against established players.
Source: Moneycontrol.com
Wednesday, April 23, 2008
New IPO application forms to avoid manual intervention
SEBI’s Primary Market Advisory Committee (PMAC) has given an in-principle nod for initiating steps to ensure “no manual intervention” in the primary market issuance process.
The Minister of State for Finance, Mr Pawan Kumar Bansal, said in a written reply in the Rajya Sabha today that the PMAC has endorsed the suggestions of the Group on Review of Issue Process (GRIP) on this matter. GRIP had recommended modified application forms that can be submitted physically as well as electronically.
For transparency :
“These measures will enable faster and transparent processing of application forms leading to a reduction in the time gap between closure of an IPO and its listing,” Mr Bansal said.
Indications are that the proposed measures would be placed for approval before the SEBI Board, as part of reform process on the primary market. SEBI had advised the PMAC to review the entire issue process with an objective to reduce the time gap between closure of an IPO and its listing, reports The Hindu Business Line.
Source: Moneycontrol.com
The Minister of State for Finance, Mr Pawan Kumar Bansal, said in a written reply in the Rajya Sabha today that the PMAC has endorsed the suggestions of the Group on Review of Issue Process (GRIP) on this matter. GRIP had recommended modified application forms that can be submitted physically as well as electronically.
For transparency :
“These measures will enable faster and transparent processing of application forms leading to a reduction in the time gap between closure of an IPO and its listing,” Mr Bansal said.
Indications are that the proposed measures would be placed for approval before the SEBI Board, as part of reform process on the primary market. SEBI had advised the PMAC to review the entire issue process with an objective to reduce the time gap between closure of an IPO and its listing, reports The Hindu Business Line.
Source: Moneycontrol.com
Monday, November 19, 2007
Subscribe to Kolte-Patil with medium term view
Keynote Capitals has come out with report on Kolte-Patil Developers IPO. They have recommended to subscribe to the issue with medium term view.
Kolte-Patil Developers, a real estate developer in India, has opened for subscription with an initial public offering (IPO) of 19,000,836 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.
The issue will close on November 22, 2007. The price band has been fixed between Rs 125 and Rs 145 per equity share.
Keynote Capitals report on Kolte-Patil Developers IPO
Recommendation - Subscribe with a medium term view
* Kolte-Patil Developers (KPDL) is a real estate developer, having presence mainly in the cities of Pune and Bangalore. It has a diversified project portfolio across residential properties, townships, commercial properties, IT parks etc. Has an experienced management team.
* Land reserves of around 54.5mn sq ft. Of this, approx. 39mn sq ft represents expected saleable area. However, land owned and land over which it has sole development rights aggregates to 57.7% of land bank, which is on the lower side vis-à-vis developers like Omaxe (76.2%) and IVR Prime Urban (73%) (source: respective RHPs).
* Its JVs provide it with the ability to capitalise on bigger opportunities, raise funding via the equity and debt routes and undertake large-scale development projects.
* On account of the increase in sales of IT premises in FY07, topline and bottomline grew at a CAGR of 174.1% and 486.8% during FY05-07 respectively on standalone basis.
* Diversification of its project portfolio and expansion into emerging local markets like Hyderabad, Chennai, Nasik, Goa, Nagpur, Aurangabad and Mysore will help derisk its business model.
* Its accounting practice of recognising revenues and expenses only in the period in which the project is completed leads to volatility of revenues.
* On the basis of its project implementation schedule, we estimate sales revenues to grow at 51.4% CAGR during FY07-09. We expect a modest 10.7% bottomline growth in FY08, followed by a 70.5% growth in FY09, as a number of projects are likely to get completed in that year. We expect a slight impact on EBITDA margin and accordingly expect net profit to grow at a 37.4% CAGR during FY07-09.
* Tax provision of 22.8% of PBT for FY07 is comparable with that of peers Parsvnath (24.7%), IVR Prime (34%) and DS Kulkarni (14%).
* Concentration of approx. 92% of land reserves in and around Pune is both a positive (due to the IT/BPO backed real estate boom in Pune) and a concern (over-exposure to a single city).
* The IPO valuation, at 11.8x FY08E and 6.9x FY09E earnings is in line with that of peers (Parsvnath Developers at 6.1x FY09E, D.S. Kulkarni Developers at 6.2x FY09E and Akruti Nirman at 11.1x FY09E). Our NPV valuation is in the broad range of Rs187 - 258 per share, translating into a price/NPV multiple of 0.56 - 0.77x.We recommend subscribing to the IPO with a medium term view.
Concerns
* Approx. 92% of the projects portfolio is concentrated in and around Pune.
* Revenue for long-term projects is recognized in the year in which the sale is completed. Therefore, there may be long lead time in the development of a project leading to earnings volatility.
Source: Moneycontrol.com
Kolte-Patil Developers, a real estate developer in India, has opened for subscription with an initial public offering (IPO) of 19,000,836 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.
The issue will close on November 22, 2007. The price band has been fixed between Rs 125 and Rs 145 per equity share.
Keynote Capitals report on Kolte-Patil Developers IPO
Recommendation - Subscribe with a medium term view
* Kolte-Patil Developers (KPDL) is a real estate developer, having presence mainly in the cities of Pune and Bangalore. It has a diversified project portfolio across residential properties, townships, commercial properties, IT parks etc. Has an experienced management team.
* Land reserves of around 54.5mn sq ft. Of this, approx. 39mn sq ft represents expected saleable area. However, land owned and land over which it has sole development rights aggregates to 57.7% of land bank, which is on the lower side vis-à-vis developers like Omaxe (76.2%) and IVR Prime Urban (73%) (source: respective RHPs).
* Its JVs provide it with the ability to capitalise on bigger opportunities, raise funding via the equity and debt routes and undertake large-scale development projects.
* On account of the increase in sales of IT premises in FY07, topline and bottomline grew at a CAGR of 174.1% and 486.8% during FY05-07 respectively on standalone basis.
* Diversification of its project portfolio and expansion into emerging local markets like Hyderabad, Chennai, Nasik, Goa, Nagpur, Aurangabad and Mysore will help derisk its business model.
* Its accounting practice of recognising revenues and expenses only in the period in which the project is completed leads to volatility of revenues.
* On the basis of its project implementation schedule, we estimate sales revenues to grow at 51.4% CAGR during FY07-09. We expect a modest 10.7% bottomline growth in FY08, followed by a 70.5% growth in FY09, as a number of projects are likely to get completed in that year. We expect a slight impact on EBITDA margin and accordingly expect net profit to grow at a 37.4% CAGR during FY07-09.
* Tax provision of 22.8% of PBT for FY07 is comparable with that of peers Parsvnath (24.7%), IVR Prime (34%) and DS Kulkarni (14%).
* Concentration of approx. 92% of land reserves in and around Pune is both a positive (due to the IT/BPO backed real estate boom in Pune) and a concern (over-exposure to a single city).
* The IPO valuation, at 11.8x FY08E and 6.9x FY09E earnings is in line with that of peers (Parsvnath Developers at 6.1x FY09E, D.S. Kulkarni Developers at 6.2x FY09E and Akruti Nirman at 11.1x FY09E). Our NPV valuation is in the broad range of Rs187 - 258 per share, translating into a price/NPV multiple of 0.56 - 0.77x.We recommend subscribing to the IPO with a medium term view.
Concerns
* Approx. 92% of the projects portfolio is concentrated in and around Pune.
* Revenue for long-term projects is recognized in the year in which the sale is completed. Therefore, there may be long lead time in the development of a project leading to earnings volatility.
Source: Moneycontrol.com
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