Friday, September 23, 2016

GNA AXLES IPO SHARES TO BE LISTED ON 26-09-2016

GNA AXLES IPO shares will  be listed on the exchanges on 26-09-2016.

HPL ELECTRIC & POWER IPO GETS TEPID RESPONSE

HPL Electric & Power IPO has received 6% subscription on day 1.

Thursday, September 22, 2016

IPO LISTING NEWS

Shares of L&T Technology Services Limited will be listed on the exchanges on 23-09-2016.

Wednesday, September 21, 2016

NSE SHIFTS 9 STOCKS TO Z SEGMENT


NSE has shifted the following 9 stocks to Z group due to non compliance of listing guidelines.

1. Agro Dutch Industries Limited 
2. Broadcast Initiatives Limited 
3. Entegra Limited 
4. GEI Industrial Systems Limited
5. JVL Agro Industries Limited
6. Lumax Automotive Systems Limited 
7. Sudar Industries Limited 
8. S Vogl Oil Gas And Energy Limited
9. Valecha Engineering Limited

IPO ANALYSIS: HPL ELECTRIC & POWER LIMITED – ‘SURE TO GET ELECTRIC SHOCK’ - AVOID


ISSUE DETAILS

ISSUE OPENS / CLOSES ON

22-09 / 26-09-2016
ISSUE SIZE / OFS

RS 360 CR
FACE VALUE
RS 10
PRICE BAND
RS 175-202

BUSINESS

MFRS OF SWITCH GEAR, ELECTRIC METERS, LIGHTING EQUIPMENTS, WIRES &CABLES

PROMOTERS

LALITH SETH, RISHI SETH, GAUTAM SETH
LISTINGS
BSE, NSE

BRLMs
ICICI SEC, SBI CAPS, IDBI BANK
REGISTRAR
KARVY
IPO GRADE
NA

BUSINESS:

HPL is an electric equipment manufacturing company, manufacturing a diverse portfolio of electric equipment, including, metering solutions, switchgears, lighting equipment and wires and cables. The company has largest market share for electricity energy meters in India in fiscal 2015, with one of the widest portfolios of meters in India and the fifth largest market share for LED lamps during the corresponding period.


OBJECTS OF THE ISSUE:

       1. Repayment of debt Rs 130 cr.
       2. Working capital requirements Rs 180 cr



   FINANCIALS:  (RS IN CRORES)


31-03-2014
31-03-2015
31-03-2016
CAPITAL
18.57
18.57
46.42
REVENUES / TOTAL INCOME
1016
1051
1121
NET PROFIT
28.3
34.6
36.61
EPS
6.11
7.42
7.98
RONW (%)
9.25
10.8
10.4




  RISKS

1. The company is not part of Havells group. Havells India has filed a case against the company and its promoters.

2. Company operates in severally competitive market.

3. Significant portion of the revenue from sale of products to Power Utilities.

4. Highly indebted enterprise.

5. Conflicts of interest. Certain group companies are in the same line of business.




VALUATION AND RECOMMENDATIONS:


The company, post IPO will have equity of Rs 48.20 cr. For FY 17 the likely EPS is around Rs 8 on the expanded capital. The offer is made at 26 PE which is very expensive. More importantly, the money raised from the IPO will go towards reduction of debt / working capital requirements. There won’t be any capacity addition.

AVOID INVESTMENT IN THE IPO.



Tuesday, September 20, 2016

ICICI PRUDENTIAL LIFE IPO SUBSCRIBED 52%

ICICI Prudential Life Insurance company's IPO has been subscribed to the extent of 52% on day 2. The IPO closes tomorrow.

BIS : CHINA SITTING ON A DEBT VALCANO

The Bank for International Settlements says that China’s banking sector could be facing an imminent debt crisis and the country is virtually sitting on a debt volcano. This has  fuelled fresh fears of a blowout in the world’s second largest economy which could hit the global financial system.

China’s credit-to-GDP gap is above 30 per cent in the first quarter of 2016, its highest level ever and far above the 10 per cent level thought to present a risk to a country’s banking system.

Monday, September 19, 2016

IPO ANALYSIS: ICICI PRUDENTIAL LIFE INSURANCE COMPANY – INVESMENT SAFETY ASSURED - APPLY


                                                 ISSUE DETAILS

ISSUE OPENS / CLOSES ON
19-09 / 21-09-2016
ISSUE SIZE
18.13 CE EQUITY SHARES
FACE VALUE
RS 10
PRICE BAND
RS 330-334

BUSINESS

LIFE INS, INVESTMENTS
PROMOTERS
ICICI BANK, PRUDENTIAL CORP HOLDINGS
LISTINGS
BSE, NSE
BRLMs
DSP MERILLYNCH, ICICI SEC,CLSA, DEUTSECH SECURITIES, EDELWEISS,HSBC SEC, IIFL HOLDINGS,JM FINANCIAL, SBI CAPITAL MARKETS AND UBS SECURITIES

REGISTRAR
KARVY
IPO GRADE
NA


BUSINESS:

.
The company is the largest private sector life insurer in India by total premium in fiscal 2016 and assets under management at March 31, 2016. This is a joint venture between ICICI Bank Limited, India’s largest private sector bank in terms of total assets with an asset base of 7.2 trillion at March 31, 2016, and Prudential Corporation Holdings Limited, a part of the Prudential Group, UK.


In fiscal 2016, the market share, on a retail weighted received premium basis, among all insurance companies in India (public and private sector) was 11.3%, as compared with a market share of 9.7% for the nearest private sector competitor. Among the 23 private sector life insurance companies in India, ICICI Prudential Life has a market share of 21.9% in fiscal 2016.
  

OBJECTS OF THE OFFER:


The objects of the Offer are to achieve the benefits of listing the Equity Shares of the Company on the Stock Exchanges and to carry out the sale of up to 181,341,058 Equity Shares by the Promoter Selling Shareholder.



RISKS

1. Regulatory and statutory conditions.
2. General slowdown in the economy.
3. Frequent occurrence of natural disasters.
4. The industry is highly regulated.

  

VALUATION AND RECOMMENDATIONS:

The Company has an established track record of delivering annual returns to shareholders. The profit after tax was 16.53 billion in fiscal 2016 and 4.05 billion for the three months ended June 30, 2016,with an average EPS OF Rs 11.40 for the last 3 years. The return on equity has exceeded 30% for each year since fiscal 2012. ICICI Prudential Life has a strong capital position with a solvency ratio of 320.5% at June 30, 2016 compared to the IRDA-prescribed control level of 150%.

Invest for listing gains and as well for long term appreciation.






Saturday, September 17, 2016

ICICI PRUDENTIAL LIFE INS ALLOTS SHARES TO ANCHOR INVESTORS

ICICI Prudential Life Insurance Corporation raised Rs 1,635 crore from anchor investors. The IPO opens on Monday.

The company has allotted 48.9 million shares at Rs 334 each to several investors, including sovereign wealth funds, pension funds and some mutual funds.

Morgan Stanley was made the highest allotment of 6.2 million shares, followed the government of Singapore (4.3 million). Nomura and Goldman were among the others made a substantial allotment in the anchor category. 

Several mutual funds including L&T , Birla Sun Life , Edelweiss and Sundaram were allotted shares.

GNA AXLES IPO SUBSCRIBED 55 TIMES

GNA Axles IPO which closed yesterday has been oversubscribed by 55 times.

L&T Technology services IPO which closed on 16-09-2016 has been subscribed to the extent of 2.53 times.

Thursday, September 15, 2016

IPO ANALYSIS: RADHIKA JEWELTECH LIMITED -AVOID



                                                 ISSUE DETAILS


ISSUE OPENS / CLOSES ON
14-09 / 16-09-2016
ISSUE SIZE
66,00,000 equity shares
FACE VALUE
RS 10
PRICE BAND
RS 75

BUSINESS

GOLD / DIAMOND JEWELLERY
PROMOTERS
 ASHOKKUMAR MATHURDAS ZINZUWADIA
LISTINGS

BRLMs
CORPORATE STRETEGIC ALLIANZ

REGISTRAR
SATELLITE CORP SERVICES
IPO GRADE
NA

NCD ANALYSIS : Indiabulls Housing Finance Limited - INVEST

ISSUE DETAILS:


SymbolIBHFL
Series (Secured NCDs)S1 - 8.55% 3 years, for Category I & II, 8.65% 3 years, for Category III & 8.70% 3 years, for Category IV - Annual Coupon
S2 - Payable at Redemption - Rs. 1278.47 Tenure - 3 years, for Category I & II, Payable at Redemption - Rs. 1282.01 Tenure - 3 years, for Category III & Payable at Redemption - Rs. 1283.78 Tenure - 3 years, for Category IV
S3 - 8.75% 5 years, for Category I & II, 8.90% 5 years, for Category III & IV - Annual Coupon
S4 - Payable at Redemption - Rs. 1521.41 Tenure - 5 years, for Category I & II, Payable at Redemption - Rs. 1531.93 Tenure - 5 years, for Category III & IV
S5 - 8.51% 10 years, for Category I & II and 8.65% 10 years, for Category III & IV ? Monthly Coupon
S6 - 8.85% 10 years, for Category I & II, 9.00% 10 years, for Category III & IV - Annual Coupon
S7 - Payable at Redemption - Rs. 2336.07 Tenure - 10 years, for Category I & II, Payable at Redemption - Rs. 2368.48 Tenure - 10 years, for Category III & IV
Series (Unsecured NCDs)S8 - 8.65% 10 years, for Category I & II and 8.79% 10 years, for Category III & IV ? Monthly Coupon
S9 - 9.00% 10 years, for Category I & II and 9.15% 10 years, for Category III & IV - Annual Coupon
S10 - Payable at Redemption - Rs. 2368.48 - 10 years, for Category I & II and Payable at Redemption - Rs. 2401.30 - 10 years, for Category III & IV
Issue Period15-Sep-2016 to 23-Sep-2016
Post issue Modification Period26-Sep-2016
Issue SizeBase issue of Rs.35,000 million with an option to retain oversubscription up to Rs. 35,000 million aggregating up to Rs. 70,000 million
Security TypeSecured Redeemable Non-Convertible Debentures and Unsecured Redeemable Non-Convertible Debentures
PriceRs 1000
Face ValueRs 1000
Market Lot1 (one) Bond
Minimum Application Value10 (Ten) NCDs (Rs. 10,000) either taken individually or collectively across all series of NCDs
IPO GradingCARE AAA (Triple A) by Credit Analysis & Research Limited and BWR AAA (Triple A) by Brickwork Rating India Private Ltd
Rating AgencyCARE and Brickwork

IPO SUBSCRIPTION STATUS

L&T Technology Services IPO has received 71% subscription on penultimate day.

GNA Axles IPO has received 64 percent subscription on day 1.

Wednesday, September 14, 2016

IPO ANALYSIS: HPL ELECTRIC & POWER LIMITED


ISSUE DETAILS


ISSUE OPENS / CLOSES ON

22-09 / 26-09-2016
ISSUE SIZE / OFS

RS 360 CR
FACE VALUE
RS 10
PRICE BAND
--

BUSINESS

MFRS OF SWITCH GEAR, ELECTRIC METERS, LIGHTING EQUIPMENTS, WIRES &CABLES

PROMOTERS

LALITH SETH, RISHI SETH, GAUTAM SETH
LISTINGS
BSE, NSE

BRLMs
ICICI SEC, SBI CAPS, IDBI BANK
REGISTRAR
KARVY
IPO GRADE
NA

DETAILED ANALYSIS POSTED ON 21-09-2016.