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
Tuesday, June 10, 2008
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
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
Monday, June 9, 2008
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
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
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
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
Tuesday, June 3, 2008
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
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
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
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