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
Showing posts with label V-Guard IPO. Show all posts
Showing posts with label V-Guard IPO. Show all posts
Thursday, March 13, 2008
Wednesday, March 12, 2008
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, February 19, 2008
Avoid V-Guard Industries IPO
Arihant Capital Markets has come out with report on V-Guard Industries IPO. They have recommended to ignore the issue.
V-Guard Industries has opened for subscription with its initial public offer (IPO) of 80,00,000 equity shares of Rs 10 each for cash at a premium, at a price band of Rs 80-85 per equity share.
Arihant Capital Markets report on V-Guard Industries IPO
Investment Positive
Strong Presence and Dealer Network
VGIL has been present in the industry for the last 3 decades which has helped it in understanding changing needs and demands of its customers. The V-Guard brand enjoys strong recall and credibility, especially in south India. The company has been able to establish a strong dealer network countrywide. The sales of the company are through the distribution network that has been developed over a period of last thirty years. Presently the company has around 108 distributors and more than 7000 dealers across the nation. Further, the company also provides after sales services at distributors end with total 107 service centers.
Strategic sourcing
VGIL follows a manufacturing model wherein products are sourced from SSI units/small manufactures across south India. The company contracts with third parties for the manufacture of voltage stabilizers, pumps, UPS, electric water heaters and electric fans which are manufactured according to the specifications given by the company. VGIL has diversified competencies in this area by maintaining good and cordial relations with the suppliers.
Concerns
Competition
VGIL operates in a competitive environment. Their competition varies for each product and region.
Concentration in Southern India
VGIL is predominantly a regional player, with over 90% of the revenue (in FY 2007) coming from southern states and Goa. Kerala, Andhra Pradesh, Karnataka and Tamil Nadu contribute a very significant percentage of VGIL’s revenues.
Valuations
The issue is priced at 16x FY07 earnings on post issue capital at floor price and at 17x at cap price. VGIL’s competition varies for each product and region.
Recommendation
VGIL is presently into manufacturing and marketing of Electronic Voltage Stabilizers, Cables, Pumps, Water heaters, UPS, Fans etc. With a well-established position in south India, V-Guard Industries has only recently ventured into Maharashtra, Haryana, Madhya Pradesh, Orissa, Himachal Pradesh, Chhattisgarh, Uttar Pradesh, Gujarat, Punjab and Rajasthan on a very small scale. Based on the valuations of 16x and 17x at a price band of 80 and 85 respectively the issue looks to be priced expensively as compared to its peers. Keeping in mind the present geographical concentration, cheaper valuations of competitors and high dependence on trading income we recommend our investors to avoid 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 decisions.
Source: Moneycontrol.com
V-Guard Industries has opened for subscription with its initial public offer (IPO) of 80,00,000 equity shares of Rs 10 each for cash at a premium, at a price band of Rs 80-85 per equity share.
Arihant Capital Markets report on V-Guard Industries IPO
Investment Positive
Strong Presence and Dealer Network
VGIL has been present in the industry for the last 3 decades which has helped it in understanding changing needs and demands of its customers. The V-Guard brand enjoys strong recall and credibility, especially in south India. The company has been able to establish a strong dealer network countrywide. The sales of the company are through the distribution network that has been developed over a period of last thirty years. Presently the company has around 108 distributors and more than 7000 dealers across the nation. Further, the company also provides after sales services at distributors end with total 107 service centers.
Strategic sourcing
VGIL follows a manufacturing model wherein products are sourced from SSI units/small manufactures across south India. The company contracts with third parties for the manufacture of voltage stabilizers, pumps, UPS, electric water heaters and electric fans which are manufactured according to the specifications given by the company. VGIL has diversified competencies in this area by maintaining good and cordial relations with the suppliers.
Concerns
Competition
VGIL operates in a competitive environment. Their competition varies for each product and region.
Concentration in Southern India
VGIL is predominantly a regional player, with over 90% of the revenue (in FY 2007) coming from southern states and Goa. Kerala, Andhra Pradesh, Karnataka and Tamil Nadu contribute a very significant percentage of VGIL’s revenues.
Valuations
The issue is priced at 16x FY07 earnings on post issue capital at floor price and at 17x at cap price. VGIL’s competition varies for each product and region.
Recommendation
VGIL is presently into manufacturing and marketing of Electronic Voltage Stabilizers, Cables, Pumps, Water heaters, UPS, Fans etc. With a well-established position in south India, V-Guard Industries has only recently ventured into Maharashtra, Haryana, Madhya Pradesh, Orissa, Himachal Pradesh, Chhattisgarh, Uttar Pradesh, Gujarat, Punjab and Rajasthan on a very small scale. Based on the valuations of 16x and 17x at a price band of 80 and 85 respectively the issue looks to be priced expensively as compared to its peers. Keeping in mind the present geographical concentration, cheaper valuations of competitors and high dependence on trading income we recommend our investors to avoid 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 decisions.
Source: Moneycontrol.com
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