The IPO of Wockhardt Hospital, one of the largest private healthcare services companies in India, was slated to close today but it has extended the date of the issue by two days, which means now it will close on February 7, 2008. It has got subscribed just 0.02 times as per NSE website. Not a single big investor has given support to the issue till now, only few retail investors helped the issue to some extent.
Negative sentiment in the markets has forced Wockhardt Hospitals to lower price band from Rs 280-310 to Rs 225-260 per share for its initial public offering (IPO) of 25,087,097 equity shares of Rs 10 each for cash at a price determined through a 100% book building process.
The issue comprises a net issue to the public of 24,587,097 equity shares of Rs 10 each and a reservation of upto 500,000 equity shares for subscription by eligible employees. The issue will constitute 24.06% of the post-issue paid up equity share capital of the company.
Wockhardt Hospitals intends to utilise the proceeds from the issue to meet the cost of development and construction of greenfield and brownfield hospitals of the Company, prepay some of the short term loans and to meet general corporate expenses.
The equity shares are proposed to be listed on Bombay Stock Exchange and the National Stock Exchange of India.
The joint global co-ordinators and book running lead managers to the Issue are Citigroup Global Markets India Private Limited and Kotak Mahindra Capital Company Limited. The book running lead managers to the Issue are SBI Capital Markets Limited and ICICI Securities Limited.
Source: Moneycontrol.com
Tuesday, February 5, 2008
Reliance Infratel: What to expect from this IPO?
Reliance Infratel is coming out with issue of nearly 9 crore shares, the second IPO from the ADAG Group. The company is basically into passive infrastructure in the telecom space. The issue size is around 8.9 crore shares which constitutes only 10% of the post issued equity. It has part payment option for retailers and HNI as was the case in Reliance Power IPO as well. But if you look at the business of this company, it plans to have roughly around 36,849 towers by the end of March 2008. It currently owns nearly 23400 towers as of now, so the remaining ones are in the process of being built and is expected to be completed by March 2008.
Currently these towers are operating at nearly 1/3rd occupancy because the anchored tenant in these towers is Reliance Communications and its subsidiaries. Comparing it with its other competitors, like Indus towers which is a joint venture between Bharti, Vodafone and Idea where they have nearly 70,000 towers to begin with and their occupancy rate is likely to be much higher going forward for them as well. 42% of these towers are situated in metros, and in A cities, and the remaining are in B and C cities.
The company has a firm roll out order of 16,000 towers for which it’s going to come to the market and these have to be delivered by March 2009 at an estimated cost of Rs 4,623 crore. So we expect this IPO to be in the range of Rs 5,000 to Rs 5,500 crore which gives the valuation of USD 12.5 to USD 13.7 billion. Just 6-8 months back, they made a private placement of 5% to various investors, that came into a valuation of nearly USD 6.75 billion and it was done at a price of Rs 334. So based on the current capital that it wants to raise, we are looking at a price range of Rs 550 to Rs 610 for this IPO which is much higher.
As per the financials, it has Rs 900 crore for the 9-month period of FY08 and Rs 150 crore in bottom line, so by the end of FY 08, revenues of Rs 12,000 crore and nearly Rs 200 crore worth of profit can be expected for the company.
Source: Moneycontrol.com
Currently these towers are operating at nearly 1/3rd occupancy because the anchored tenant in these towers is Reliance Communications and its subsidiaries. Comparing it with its other competitors, like Indus towers which is a joint venture between Bharti, Vodafone and Idea where they have nearly 70,000 towers to begin with and their occupancy rate is likely to be much higher going forward for them as well. 42% of these towers are situated in metros, and in A cities, and the remaining are in B and C cities.
The company has a firm roll out order of 16,000 towers for which it’s going to come to the market and these have to be delivered by March 2009 at an estimated cost of Rs 4,623 crore. So we expect this IPO to be in the range of Rs 5,000 to Rs 5,500 crore which gives the valuation of USD 12.5 to USD 13.7 billion. Just 6-8 months back, they made a private placement of 5% to various investors, that came into a valuation of nearly USD 6.75 billion and it was done at a price of Rs 334. So based on the current capital that it wants to raise, we are looking at a price range of Rs 550 to Rs 610 for this IPO which is much higher.
As per the financials, it has Rs 900 crore for the 9-month period of FY08 and Rs 150 crore in bottom line, so by the end of FY 08, revenues of Rs 12,000 crore and nearly Rs 200 crore worth of profit can be expected for the company.
Source: Moneycontrol.com
Monday, February 4, 2008
IPO Grey Market Price Dt: 4 February 2008
Below are the Latest IPO Grey Market Rates Dated : 4th February 2008
IPO : Issue Price - GMP (Grey Market Price)
Bang : 200 - 207 30 - 35
Cords : 125 - 135 20 - 25
Emaar : 610 - 690 500 - 525
IRB Infra : 185 - 220 50 - 60
J. Kumar : 110 - 120 5 - 7
KNR 170 : 180 15 - 16
On Mobile : 425 - 450 100 - 110
Reliance : 450 180 - 200
Shri Ram : 290 - 330 32 - 37
IPO : Issue Price - GMP (Grey Market Price)
Bang : 200 - 207 30 - 35
Cords : 125 - 135 20 - 25
Emaar : 610 - 690 500 - 525
IRB Infra : 185 - 220 50 - 60
J. Kumar : 110 - 120 5 - 7
KNR 170 : 180 15 - 16
On Mobile : 425 - 450 100 - 110
Reliance : 450 180 - 200
Shri Ram : 290 - 330 32 - 37
Reliance Power to debut on Feb 11
Reliance Power, part of the Reliance Anil Dhirubhai Ambani group which recently completed its largest IPO in the history of Indian capital market, will debut on the stock exchanges on the February 11, 2008.
The equity shares, offered through this IPO, will be listed on both the Bombay Stock Exchange and National Stock Exchange.
Reliance Power has credited its shares to the demat accounts of the successful allottes in the IPO.
Reliance Power had carried out allotment and refund exercise post closure of the IPO in a record short time of 10 working days considering that this IPO was by far the largest in the history of Indian capital markets. Reliance Power IPO attracted over 5 million bids from all categories of domestic and international investors with aggregate commitment of over Rs 750,000 crore, as against the Issue size of Rs 11,560 crore.
Reliance Power IPO was oversubscribed approximately 70 times. 60% of the net issue reserved for qualified institutional buyers, was oversubscribed 82.5 times, 10% of the net issue reserved for non institutional investors was oversubscribed 159.6 times and 30% of the net issue reserved for retail investors was oversubscribed 13.6 times.
With approximately 42 lakh shareholders Reliance Power will be the largest shareholder base company among the companies listed on the Stock Exchanges.
Reliance Power is the flagship company of the Reliance ADA Group to develop, construct and operate power generation projects. The company is currently developing 12 power projects with a combined planned installed capacity of 28,000 MW, one of the largest portfolios of power generation assets under developments.
Source: Moneycontrol.com
The equity shares, offered through this IPO, will be listed on both the Bombay Stock Exchange and National Stock Exchange.
Reliance Power has credited its shares to the demat accounts of the successful allottes in the IPO.
Reliance Power had carried out allotment and refund exercise post closure of the IPO in a record short time of 10 working days considering that this IPO was by far the largest in the history of Indian capital markets. Reliance Power IPO attracted over 5 million bids from all categories of domestic and international investors with aggregate commitment of over Rs 750,000 crore, as against the Issue size of Rs 11,560 crore.
Reliance Power IPO was oversubscribed approximately 70 times. 60% of the net issue reserved for qualified institutional buyers, was oversubscribed 82.5 times, 10% of the net issue reserved for non institutional investors was oversubscribed 159.6 times and 30% of the net issue reserved for retail investors was oversubscribed 13.6 times.
With approximately 42 lakh shareholders Reliance Power will be the largest shareholder base company among the companies listed on the Stock Exchanges.
Reliance Power is the flagship company of the Reliance ADA Group to develop, construct and operate power generation projects. The company is currently developing 12 power projects with a combined planned installed capacity of 28,000 MW, one of the largest portfolios of power generation assets under developments.
Source: Moneycontrol.com
Rel Power should list at around Rs 600
SP Tulsian of sptulsian.com said that looking at the revival of sentiment in the secondary market, Reliance Power would probably get listed at a premium of Rs 150 over its issue price of Rs 450. So, it should list at about Rs 600. It is likely to get listed either on Friday or Monday.
Excerpts from CNBC-TV18's exclusive interview with SP Tulsian:
Q: At what price do you expect the Reliance Power IPO to list? What is your advice to those investors who have got the stock?
A: Looking at the revival of sentiment in the secondary market, I feel it would probably get listed at a premium of Rs 150 over its issue price of Rs 450. So, it should list at about Rs 600.
It is likely to get listed either on Friday or Monday. If it gets listed at around Rs 600, I see huge selling coming in from the HNI category because they are breaking even at Rs 145-150 levels. The HNI category had been subscribed 190 times but the final tally shows a subscription of 160 times. This means there was a withdrawal of 30 times from the HNI category. So, there will be selling pressure from that category.
Since the retail category has received a discount of Rs 20, they may continue for sometime and remain invested in the issue. Overall, there will be selling pressure. Whatever price it gets listed, one would see the price softening by about Rs 50-75 from those levels, unless the whole quantity gets absorbed.
Disclosures: I have no interest in any of the companies discussed
Source: Moneycontrol.com
Excerpts from CNBC-TV18's exclusive interview with SP Tulsian:
Q: At what price do you expect the Reliance Power IPO to list? What is your advice to those investors who have got the stock?
A: Looking at the revival of sentiment in the secondary market, I feel it would probably get listed at a premium of Rs 150 over its issue price of Rs 450. So, it should list at about Rs 600.
It is likely to get listed either on Friday or Monday. If it gets listed at around Rs 600, I see huge selling coming in from the HNI category because they are breaking even at Rs 145-150 levels. The HNI category had been subscribed 190 times but the final tally shows a subscription of 160 times. This means there was a withdrawal of 30 times from the HNI category. So, there will be selling pressure from that category.
Since the retail category has received a discount of Rs 20, they may continue for sometime and remain invested in the issue. Overall, there will be selling pressure. Whatever price it gets listed, one would see the price softening by about Rs 50-75 from those levels, unless the whole quantity gets absorbed.
Disclosures: I have no interest in any of the companies discussed
Source: Moneycontrol.com
Friday, February 1, 2008
Wait for better price to buy Future Cap
Ambareesh Baliga of Karvy Stock Broking feels that one could get Future Capital, below its issue price or closer to that. So he advised not to buy at current levels, wait for the better results in near term.
Baliga told CNBC-TV18, "I will not buy Future Capital at Rs 875 levels because earlier also we felt that it was expensive at the issue price although the gray market premium was quite high. But the listing shows that it was a bit artificial. Because we feel that this is discounting a bit too much on the future. So we will wait for the performance to come in before really looking at buying this stock."
He further added, "We could get this below its issue price, I will not say too much below issue price but closer to the issue price over the next month or month and a half because we really do not see the markets going anywhere in next month or month and a half. It would still be a bit painful for the markets so one should get this stock closer to the issue price."
Source: Moneycontrol.com
Baliga told CNBC-TV18, "I will not buy Future Capital at Rs 875 levels because earlier also we felt that it was expensive at the issue price although the gray market premium was quite high. But the listing shows that it was a bit artificial. Because we feel that this is discounting a bit too much on the future. So we will wait for the performance to come in before really looking at buying this stock."
He further added, "We could get this below its issue price, I will not say too much below issue price but closer to the issue price over the next month or month and a half because we really do not see the markets going anywhere in next month or month and a half. It would still be a bit painful for the markets so one should get this stock closer to the issue price."
Source: Moneycontrol.com
Future Capital ends with 19% premium
Future Capital Holdings (FCHL), the financial services arm of the Future Group, is the first listed stock in the year 2008. The stock surged to a high of Rs 1081 before closing the day at Rs 909.80, premium of 18.93% over its offer price of Rs 765. It has been remained in the range of Rs 825-900 for the whole day.
It opened at Rs 1081 on the NSE and touched a low of Rs 825. It traded with volumes of 1,25,42,842 shares and turnover was at Rs 1104 crore.
On the BSE, the stock started the day at Rs 1044 and touched a high/low of Rs 1100 and Rs 826.10, respectively. It ended at Rs 908.20, with volumes of 88,82,244 shares.
Samir Sain, CEO of Future Capital Holdings, sees a scale up in business over the next two years. The revenues from consumer finance and distribution business is likely to come in three years. They plan to set up 500-700 outlets in 3-4 years.
The company had come out with its initial public offering (IPO) of 6,422,800 equity shares of Rs 10 each at a price band of Rs 700-765 per share. The issue was subscribed to approximately around 133 times.
Source: Moneycontrol.com
It opened at Rs 1081 on the NSE and touched a low of Rs 825. It traded with volumes of 1,25,42,842 shares and turnover was at Rs 1104 crore.
On the BSE, the stock started the day at Rs 1044 and touched a high/low of Rs 1100 and Rs 826.10, respectively. It ended at Rs 908.20, with volumes of 88,82,244 shares.
Samir Sain, CEO of Future Capital Holdings, sees a scale up in business over the next two years. The revenues from consumer finance and distribution business is likely to come in three years. They plan to set up 500-700 outlets in 3-4 years.
The company had come out with its initial public offering (IPO) of 6,422,800 equity shares of Rs 10 each at a price band of Rs 700-765 per share. The issue was subscribed to approximately around 133 times.
Source: Moneycontrol.com
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