eClerx Services, which provides data analytics and customised process solutions to global enterprise clients from its offshore delivery centres in India, is entering the capital market with its initial public offering (IPO) of equity shares of Rs 10 each for cash, at a price to be decided through a 100% book building process and aggregating to Rs 1,010 million.
The issue will open on December 4, 2007, and will close on December 7, 2007. The price band has been fixed between Rs 270 and Rs 315 per Equity Share.
The issue comprises a fresh issue of equity shares and an offer for sale by Mr P D Mundhra, Mr. Anjan Malik and Burwood Ventures Limited (being the existing shareholders of the company) of 890,000 equity shares. The equity shares are proposed to be listed on the National Stock Exchange and the Bombay Stock Exchange.
The proceeds of the issue will be used, inter alia, to fund acquisitions; make infrastructure investments; set up additional facilities and avail of listing benefits.
The Company's portfolio of services comprises data analytics, operations management, data audits, metrics management and reporting services.
The company's unconsolidated revenues grew to Rs 862.3 million in Fiscal 2007 from Rs 477.5 million in fiscal 2006 and Rs 266.4 million in Fiscal 2005, growing at a compound annual growth rate of 79.9% over 2005-2007. The company's unconsolidated profit after tax grew to Rs 405.2 million in fiscal 2007 from Rs 240.4 million in fiscal 2006 and Rs 112.2 million in Fiscal 2005. For the six months ended September 30, 2007, its unconsolidated revenues were Rs 514.4 million while the profit after tax was Rs 164.7 million. For the six months ended September 30, 2007, the consolidated revenues were Rs 526.6 million and the net profit was Rs 169. 5 million.
The book running lead managers to the issue are JM Financial Consultants Private Limited and Edelweiss Capital Limited.
Source: Moneycontrol.com
Showing posts with label Indian IPO News. Show all posts
Showing posts with label Indian IPO News. Show all posts
Saturday, December 1, 2007
Saturday, November 17, 2007
Subscribe to Edelweiss with medium term view
Keynote Capitals has come out with report on Edelweiss Capital IPO. The firm has advised to subscribe the issue with medium term view.
Edelweiss Capital, a diversified financial services company, has opened for subscription with its initial public offering (IPO) of 8,386,147 equity shares of Rs 5 each for cash, at a price to be decided through a 100% book building process.
The issue will close close on November 20, 2007. The price band is between Rs 725 and Rs 825 per equity share of face value Rs 5.
Keynote Capitals report on Edelweiss Capital IPO
Recommendation - Subscribe with a medium term view
* Edelweiss Capital (ECL) is a diversified financial services company in India offering services to corporate, institutional and high-net-worth clients. It operates from 43 offices in 19 Indian cities. Strong, professional management.
* It operates through various subsidiaries to offer a wide spectrum of services. Impressive track record since inception in 1995. Topline and bottomline grew at a CAGR of 130% and 142% respectively during FY04-07.
* Bottomline growth mainly on account of expanding EBITDA margin, up from 46.3% in FY04 to 52.6% in FY07. Higher margin attributable to revenues from proprietary trading, institutional clients and investment banking. Its investment banking division has been scaling up operations, successfully lead managed IPOs of MIC Electronics, Meghmani Organics, C & C Construction etc.
* The IPO is aimed primarily at meeting margin money requirements indicating strong growth in the clientele base.
* ECL’s cash balance as of August 2007 stood at Rs 994 crore. In spite of the huge cash on its books, it is raising money primarily to have adequate liquidity and also for prepayment of loan of Rs 105 crore.
* When compared with peers MOFSL and Religare (which went public recently), across a few key parameters, ECL comes across as a mixed bag.
* EBITDA margin superior vis-à-vis that of MOFSL and Religare (32% and 37% respectively).
* MOFSL and Religare have presence in both institutional and retail segments. ECL, however, does not have much presence in the retail segment.
* ROE declined from 42.8% in FY05 to 18.8% in FY07 due to the expansion in net worth, attributable to the issue of preference share capital. However, in spite of this, ROE is on par with that of MOFSL and Religare.
* Broking income constituted 58.4% of ECL’s FY07 revenues; vis-à-vis 87% and 50%% for MOFSL and
Religare respectively. For ECL, income from arbitrage and trading constituted as much as 31% of FY07 revenues. We find the bias towards arbitrage and trading revenues to be a matter of concern.
* Lower leverage and higher interest coverage than that of Religare (however, ECL’s interest cost has increased substantially during the period of 5 months to August 31, 2007, due to sharp increase in debt.
* Reduction in promoter/group stake to just 35%, post-IPO is also a concern.
* Pre-IPO placements to Galleon Special Opportunities Master Fund, Sequoia Capital India and promoters in August, 2007 @ Rs514/517 per share, the last reflecting a discount of 60% to the IPO cap price.
* In line with expected growth in operations, we expect topline and bottomline growth CAGR of 70.3% each during FY07-09. As per our estimates, ECL’s IPO valuation (36.8xFY08E and 21.3x FY09E) is somewhere in between that of MOFSL (39.7xFY08E and 28.4xFY09E) and Religare (22.6xFY08E and 14.4xFY09E). However, in view of strong promoter background and brand equity, we recommend subscribing with a medium term view.
Investment Concerns
* Downturns or disruptions in securities markets could reduce transaction volumes, causing a decline in business. Revenues from operations arise largely during bullish phase in equity market which is not a consistent phenomenon.
* The subsidiary ESL was barred by securities regulators from dealing in securities of certain Indian companies in the past. ECL derives significant business from ESL, any effect in its operations shall affect the consolidated numbers.
* The subsidiary Edelweiss Capital USA LLC is into losses to the tune of Rs 0.09 crore as of August 31, 2007.
* Asset management, investment advisory, financing and wealth management are new businesses in which ECL has recently forayed. It does not have lot of experience in this field.
* There are conflicts of interest within promoter and promoter group. They have equity interests in other entities namely Ivy Financial Services Pvt Ltd and E Cap Partners.
Source: Moneycontrol.com
Edelweiss Capital, a diversified financial services company, has opened for subscription with its initial public offering (IPO) of 8,386,147 equity shares of Rs 5 each for cash, at a price to be decided through a 100% book building process.
The issue will close close on November 20, 2007. The price band is between Rs 725 and Rs 825 per equity share of face value Rs 5.
Keynote Capitals report on Edelweiss Capital IPO
Recommendation - Subscribe with a medium term view
* Edelweiss Capital (ECL) is a diversified financial services company in India offering services to corporate, institutional and high-net-worth clients. It operates from 43 offices in 19 Indian cities. Strong, professional management.
* It operates through various subsidiaries to offer a wide spectrum of services. Impressive track record since inception in 1995. Topline and bottomline grew at a CAGR of 130% and 142% respectively during FY04-07.
* Bottomline growth mainly on account of expanding EBITDA margin, up from 46.3% in FY04 to 52.6% in FY07. Higher margin attributable to revenues from proprietary trading, institutional clients and investment banking. Its investment banking division has been scaling up operations, successfully lead managed IPOs of MIC Electronics, Meghmani Organics, C & C Construction etc.
* The IPO is aimed primarily at meeting margin money requirements indicating strong growth in the clientele base.
* ECL’s cash balance as of August 2007 stood at Rs 994 crore. In spite of the huge cash on its books, it is raising money primarily to have adequate liquidity and also for prepayment of loan of Rs 105 crore.
* When compared with peers MOFSL and Religare (which went public recently), across a few key parameters, ECL comes across as a mixed bag.
* EBITDA margin superior vis-à-vis that of MOFSL and Religare (32% and 37% respectively).
* MOFSL and Religare have presence in both institutional and retail segments. ECL, however, does not have much presence in the retail segment.
* ROE declined from 42.8% in FY05 to 18.8% in FY07 due to the expansion in net worth, attributable to the issue of preference share capital. However, in spite of this, ROE is on par with that of MOFSL and Religare.
* Broking income constituted 58.4% of ECL’s FY07 revenues; vis-à-vis 87% and 50%% for MOFSL and
Religare respectively. For ECL, income from arbitrage and trading constituted as much as 31% of FY07 revenues. We find the bias towards arbitrage and trading revenues to be a matter of concern.
* Lower leverage and higher interest coverage than that of Religare (however, ECL’s interest cost has increased substantially during the period of 5 months to August 31, 2007, due to sharp increase in debt.
* Reduction in promoter/group stake to just 35%, post-IPO is also a concern.
* Pre-IPO placements to Galleon Special Opportunities Master Fund, Sequoia Capital India and promoters in August, 2007 @ Rs514/517 per share, the last reflecting a discount of 60% to the IPO cap price.
* In line with expected growth in operations, we expect topline and bottomline growth CAGR of 70.3% each during FY07-09. As per our estimates, ECL’s IPO valuation (36.8xFY08E and 21.3x FY09E) is somewhere in between that of MOFSL (39.7xFY08E and 28.4xFY09E) and Religare (22.6xFY08E and 14.4xFY09E). However, in view of strong promoter background and brand equity, we recommend subscribing with a medium term view.
Investment Concerns
* Downturns or disruptions in securities markets could reduce transaction volumes, causing a decline in business. Revenues from operations arise largely during bullish phase in equity market which is not a consistent phenomenon.
* The subsidiary ESL was barred by securities regulators from dealing in securities of certain Indian companies in the past. ECL derives significant business from ESL, any effect in its operations shall affect the consolidated numbers.
* The subsidiary Edelweiss Capital USA LLC is into losses to the tune of Rs 0.09 crore as of August 31, 2007.
* Asset management, investment advisory, financing and wealth management are new businesses in which ECL has recently forayed. It does not have lot of experience in this field.
* There are conflicts of interest within promoter and promoter group. They have equity interests in other entities namely Ivy Financial Services Pvt Ltd and E Cap Partners.
Source: Moneycontrol.com
Wednesday, November 14, 2007
BSE IPO to hit mkt before March 2008
According to sources, the Bombay Stock Exchange (BSE) is thinking of launching Sensex futures on Deutsche Bourse & SGX. The BSE IPO will hit the market before March ’08, they add. The BSE will expand its equity by 10% for IPO, sources say. The BSE will raise over Rs 500 crore for the IPO. Sources add that the BSE will enter a strategic tie-up with ASE (Ahmedabad Stock Exchange). ASE members may be able to access BOLT post tie-up, they say. The BSE tie-up with KSE (Kolkata Stock Exchange)& ASE will revive derivative segment, sources estimate.
Source: Moneycontrol.com
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