FORTHCOMING IPOS- MILESTONE CAPITALS , PLANET 41 MOBI-VENTURE

NAME OF THE COMPANY	Milestone Capital Advisors Limited
BUSINESS	Financial services
PROMOTERS	VED PRAKASH ARYA AND MILESTONE FINCAP SERVICES PRIVATE LIMITED
ISSUE SIZE	PUBLIC ISSUE OF 42,85,715 EQUITY SHARES OF FACE VALUE OF Rs. 10 EACH.
BRLMs	IDFC CAPITAL LIMITED, EDELWEISS CAPITAL LIMITED, ICICI SECURITIES LIMITED

NAME OF THE COMPANY	PLANET 41 MOBI-VENTURE LIMITED
BUSINESS	Mobile Value Added Service (MVAS) provider
PROMOTERS	SOMIL GUPTA AND  SANGAM GUPTA
ISSUE SIZE	PUBLIC ISSUE OF 39, 00,000 EQUITY SHARES OF RS. 10/- EACH
BRLMs	KEYNOTE CORPORATE SERVICES LTD.

IPO ANALYSIS: HINDUSTAN MEDIA VENTURES LIMITED – SOARING CIRCULATION, STRONG BRAND EQUITY - INVEST

One  of  the  leading  print media  company, which publishes, among others, ‘Hindustan‘,  the  third  largest  daily  newspaper  in  India,  in  terms  of Readership,  with  a  Readership  of  9.3  million  readers. ‘Hindustan‘  began publication in 1936, during freedom movement and has been  one  of  India‘s  eminent Hindi  newspaper  dailies  for  over  70  years.  ‘Hindustan‘  has  the  largest Readership in key Hindi-speaking markets of Bihar and Jharkhand, with a strong and growing presence in Delhi NCR and the states of Uttar Pradesh and Uttarakhand. It is one of the fastest growing Hindi daily newspapers in India.

‘Hindustan‘is presently printed at 16 locations in the states/regions of Uttar Pradesh, Bihar, Jharkhand, Uttarakhand, Punjab and Delhi NCR. The distribution of newspapers takes place through a multi-tiered network of agents and vendors. 

HMVL  also  publish  two Hindi magazines,  ‘Nandan‘,  a  children‘s magazine,  and  ‘Kadambini‘,  a  general interest  magazine.  The company also operates the website, www.livehindustan.com, which focuses on providing news in Hindi with regional content.

ISSUE DETAILS:

ISSUE OPENS/CLOSE ON	05-07-10 / 07-07-10
ISSUE SIZE/FV	RS 270 CR / RS 10
PRICE BAND	RS 162-175
BRLMS	EDELWEISS,KOTAK MAHINDRA
PROMOTERS	H T MEDIA LIMITED

  

FINANCIALS - RS IN CRORES

	08	09	31-12-09
REVENUE	16.85	17.73	52.14
NET PROFIT	0.28	0.19	3.57
EPS	0.70	0.28	5.11
RONW	2.54%	1.74%	21%

OBJECTS:

The objects of the Issue are to raise funds for (1) setting up new publishing units (Rs 66cr) (2) upgrading existing plant and machinery (Rs 55cr) (3) prepayment of loans (Rs153cr)

CHALLENGES:

The  Indian  newspaper  and  magazine  industry,  particularly  the  Hindi  newspaper  and  magazine industry,  is  intensely competitive.  In each of the markets, the company faces competition primarily from other newspapers and magazines for circulation, readership and advertising.  In  addition,  there is competition  from  other  alternative  forms  of  media  including,  but  not  limited  to,  television broadcasters,  magazines,  pamphlets,  flyers,  radio  broadcasters  and  internet  websites.  These other forms of media compete with newspapers for advertisers and for the time and attention of the readers. Ad-spend  by  the  advertisers  and  the  ability  to  attract  new  advertisers  is  influenced  largely  by  the circulation and  readership,  the geographical  reach,  readership demographics of the newspapers  and the preference of advertisers  for one media over another.  Pricing in the short term may be affected by the Circulation of the newspapers and magazines among the readers which is an important source of revenue for the  Company  since  its  derives  significant  revenues  from  subscriptions  and  sales.  In addition, circulation and readership significantly influence ad-spend by advertisers and the advertising rates in the newspapers. Circulation and readership is dependent on the quality and reach of the publications and the loyalty of the existing readers. Circulation  in  the  Indian market  is  also  largely  affected  by price and,  therefore,  the circulation of the newspapers may be adversely affected  if the company  fails  to meet any price competition.

Changes in technology may render the current technologies obsolete or require the company to make substantial capital investments. 

STRENGTH:

• Hindustan – Strong brand recognition.

• Emerging as a leading Hindi daily with leadership in key markets.

• Ability to successfully launch ‘Hindustan’ daily - in new markets.

• Strong relationship with Advertisers.

• Ability to provide local, national and international news with quality editorial content. 

• Credible editorial team. 

• Modern and advanced printing and technology infrastructure. 

• Synergies with HT Media Limited. 

• Strong management team. 

 

RECOMMENDATIONS - INVEST

CRISIL HAS AWARDED GRADE - 4 FOR THE IPO, INDICATING ABOVE AVERAGE FUNDAMENTALS.

HMVL is a professionally run company and focuses a lot on adopting good corporate governance practices. It is a subsidiary of HT Media which has been acknowledged as one of the top 25 companies adopting good corporate governance practices for 2009 by the Institute of Company Secretaries of India. HMVL draws its governance practices from HT Media itself and is expected to have similar robust board practices. HMVL has a completely different senior and second line  of management.

FORTHCOMNIG IPOS

1.

NAME OF THE COMPANY	NKG INFRASTRUCTURE LIMITED
BUSINESS	CONSTRUCTION, INFRA
PROMOTERS	NARESH KUMAR GARG,. PRADEEP KUMAR GARG, DEVENDRA KUMAR GARG AND AMAN PROMOTERS PRIVATE LIMITED
ISSUE SIZE	RS 275 CR
BRLMs	ENAM SECURITIES PRIVATE LIMITED,   SBI CAPITAL MARKETS LIMITED
OBJECTS OF THE ISSUE	Investments in capital equipments, Working capital requirements, Funding pre-payment and repayment of a portion of debt and General corporate purposes

2.

NAME OF THE COMPANY	IND-BARATH POWER INFRA LIMITED
BUSINESS	POWER GENERATION
PROMOTERS	K. RAGHU RAMAKRISHNA RAJU, K. RAMA DEVI AND SRIBA SEABASE PRIVATE LIMITED
ISSUE SIZE	RS 1140CR
BRLMs	JM FINANCIAL CONSULTANTS MOTILAL OSWAL,  DSP MERRILL LYNCH,  IDFC CAPITAL AND AVENDUS CAPITAL
OBJECTS OF THE ISSUE	FUNDING OF SUBSIDIARIES, GENERAL CORPORATE PURPOSES

IPO INVESTING- KNOW YOUR MERCHANT BANKER

The performamence of IPOs and the BRLMs associated

with the issues from 01-01-10 and listed till 23-06-10, are furnished below.

NAME OF ISSUER	ISSUE PRICE	CURRENT PRICE - AS ON 23-06-10.	MERCHANT BANKERS
JSW Energy	RS 100	RS 128	JM Financial. Kotak Mahindra , ICICI Securities , IDFC-SSKI, JP Morgan , SBI Capital Markets , Morgan Stanley and IDBI Capital
GODREJ PROPERTIES	RS 490	RS 567	ICICI Securities, Kotak Mahindra, IDFC- SSKI LIMITED and Nomura Financial Advisory.
DB CORP	RS 212	RS 241	Enam Securities, Citi Corp Markets, Kotak Mahindra Capital.
MBL INFRA	RS 180	RS 245	Motilal Oswal
BIRLA SHLOKA	RS 50	RS 83	Ashika Capital
INFINITE COMP	RS 165	RS 171	IIFL, SPA Merchant Bankers
JUBILANT FOODS	RS 145	RS 307	Kotak Mahindra
SYNCOM	RS 75	RS47	Chartered Capital
VASCON	RS 165	RS 135	Kotak Mahindra, Enam Securities
AQUA LOGISTIC	RS 220	RS 522	Saffron Capital, Centrum Capital
EMMBI	RS 45	RS19	Keynote
DB REALTY	RS 468	RS 383	Enam Securities, Kotak Mahindra
HATHWAY	RS 240	RS 184	Morgan Stanley, UBS Securities, Kotak Mahindra
ARSS INFRA	RS 450	RS 1206	IDBI Capital Markets, SBI Capital Market
REC	RS 203	RS 299	Kotak Mahindra Capital,  DSP Merrill Lynch, ICICI Securities, JM Financial Consultants, RBS Equities
TEXMO PIPES	RS 90	RS 45	Almondz Global
MAN INFRA	RS 252	RS 314	IDFC – SSKI, Edelweiss Capital.
UNITED BANK	RS 66	RS 84	SBI Capital Markets, Edelweiss Capital, Enam Securities.
NMDC	RS 285	RS263	UBS Securities, CITI group global, Edelweiss Capital, Kotak Mahindra Capital, Morgan Stanely and RBS Equities.
PRADIP OVERSEAS	RS 110	RS 70	ANAND RATHI
SHREE GANESH JEWELERS	RS 260	115	Axis Bank Ltd. ICICI Securities Ltd.  Avendus Capital
DQ ENTERTAINMENT	RS 80	100	SBI CAPS
GOENKA DIAMONDS	RS 135	76	SBI CAPS
INTRASOFT	RS 145	120	Collins Stewart Inga Private Limited and Anand Rathi Advisors
PERSISTENT	RS 310	404	Enam Securities private limited and J P Morgan India Private Limited
ILFS TRANSPORTATION	RS 257	RS 289	Enam Securities, Nomura Financial, HSBC Invest Direct, JM Financial Consultants.
THANGA MAYIL	RS 75	RS139	KEYNOTE CORPORATE
TALWALKAR	RS 128	RS 182	IIFL
NITESH ESTATES LIMITED	RS 54	RS 45	ICICI Securities, Enam Securities and Kotak Mahindra Capital Company.
TARAPUR TRANSFORMERS	RS 75	RS40	COMFORT SECURITIES
JAYPEE INFRA	RS 102	RS 85	Morgan Stanley , DSP Merrill Lynch  Axis Bank and Enam Securities
MANDHANA INDUSTRIES	RS 130	RS 150	Edelweiss Capital Limited and Axis Bank
SJVNL	RS 26	RS23	JM Financial Consultants, IDBI Capital Market Services, IDFC – SSKI and SBI Capital Markets
STAN CHART- IDR	RS104	RS 108	JM Financial Consultants DSP Merrill Lynch, Kotak Mahindra Capital Company and SBI Capital Markets

IPO NEWS :TECHNOFAB ENGINEERING FIXES PRICE BAND

Technofab engineering limited, which is entering the capital market on 29-06-10, has fixed the price band for its IPO at Rs 230-240.

For detailed analysis and recommendations search this blog.

ENGINEERS INDIA LIMITED FILES DRHP FOR FPO

The Government of India owned engineering consultancy company, providing design, engineering, procurement, construction and integrated project management services, has filed papers with SEBI for follow-on-public offer.




ICICI Securities, HSBC Securities, IDFC Capital and SBI Capital Markets are the BRLMs.




The company proposes to issue 33,693,660 equity shares of Rs 5 each at a premium. The offer constitutes 9.78% of the post issue paid up capital of the company.

IPO ANALYSIS: ASTER SILICATES LIMITED – MUST AVOID.

The Ahmedabad based Sodium Silicate manufacturer is entering the capital market to mobilize Rs 53.10 cr through an IPO. The issue will open on 24-06-10 and close 0n 28-06 -10. The company intends to issue shares of Rs 10 FV in the price band of Rs 112-118.  Saffron Capital Advisors Private Limited are the sole BRLM.

Promoters: Mr. Mahesh A. Maheshwari, Mrs. Namrata Mahesh Maheshwari.

BUSINESS:

Aster Silicates Limited (ASL) commenced manufacture of Sodium Silicate in 1997.  The Company  now  operates  two  units  in Gujarat  at Kheda  and Bharuch  having  a  capacity  of  100 metric  tonnes per day  (MTPD) and 50 MTPD respectively. Kheda unit has three furnaces and Bharuch has one furnace. These  are  triple  pass  regenerative  and  recuperative  end  fired  glass furnace with multiple fuel arrangement capable of using bio gas, natural gas and coal.

ASL manufactures  sodium  silicate  which  includes  food,  special  drilling  and  detergent  grade silicate  in  glass  and  liquid  form.  Food  grade  sodium  silicate  is  used  in  the manufacturing  of Silica  precipitate  and  gel  which  finds  its  applications  in  toothpaste,  salt,  cosmetics,  glucose powder, tire & rubber and pesticides etc. Sodium silicate, (special drilling grade silicate) is also used in offshore drilling, for reactivation of old oil, and gas fields. 

OBJECTS OF THE ISSUE:

The funds are intended to be used for - Expansion of Manufacturing facilities and to meet the additional Working Capital Requirements.

FINANCIALS:

 

The company achieved a turn over of Rs 32.09cr and net profit of Rs 2.54cr for the FY09. For the six months ended Sept -09 the revenue recorded is Rs 30.09cr and a net profit of Rs 2.32cr.

RISKS / MATTERS OF CONCERN:

• Basic raw material constitute major portion of cost of production in the chemical industry. Indian chemical industry uses either natural gas or crude oil as feedstock for manufacturing process.  The fluctuations in oil prices therefore affects the growth projections.

·         The objects of the Issue for which funds are being raised have not been appraised by any bank or financial institution.

·         The company is yet place orders for Plant and Machinery aggregating Rs. 744.99 Lacs.

·         The Company has a negative cash flow in the past 5 years.

·         Top five clients contributed approximately 80.90% of  sales for FY 2009. High business risks.

·          Company has no history of dividend payment.

·         Company has history of related party transactions.

·         IPO grade -2 by Brickworks, indicating below average fundamentals.

 .       Criminal case to the tune of Rs. 4.69/-  lacs and excise case to the tune of Rs. 21.05  lacs has been filed against the company and arbitration  proceedings to the tune of Rs. 371.07 lacs have been initiated by the  Company against Gas Authority of India Ltd.

·     The company has also revalued the fixed assets and increased the value by Rs  492.01 lacs in the FY 09. 

RECOMMENDATIONS

Risks associated with the project / company are very high. The issue is irrationally priced.             Investors are advised to stay away from the issue.

IPO NEWS: PARABOLIC DRUGS - IPO SCRAPE THROUGH

The Chandigarhbased bulk drugs manufacturer's IPO  was just able to scrape through. The issue received a total subscription of 1.04 times. The retail subscription was to the extent of 0.40 times. Interestingly the portion reserved for employees received only 11% subscription.

FIRST CHOICE HAD ADVISED THE INVESTORS TO STAY AWAY FROM  THE ISSUE.

IPO ANALYSIS: TECHNOFAB ENGINEERING LIMITED – WELL FABRICATED- INVEST

The New Delhi based EPC company is entering the capital markets with an IPO. The company proposes to issue 29, 90,000 equity shares of Rs 10 FV in the  price band of Rs 230 -240. The issue will open on 29-06-10 and close on 02-07-10. The issue constitutes 28.50% of the post issue paid-up equity capital.

Promoters :  Avinash C. Gupta,  Arjun Gupta and  Nakul Gupta.


COLLINS STEWART INGA PRIVATE LIMITED are the sole BRLM.

BUSINESS:

Technofab Engineering provides EPC services to domestic and overseas markets across a number of industrial and infrastructure sectors, which includes conventional power, nuclear power, oil & gas, water & waste-water treatment, electrical distribution & rural electrification and other industrial, & infrastructure sectors. Apart from India, the company has presence in international markets like Ethiopia, Kenya and Fiji.

The Company is in the EPC business for the last thirty-eight years and has developed expertise in the line of operations by to minimizing overheads, cost control and prevent overruns on project schedules along with strong skills in construction and contract management. This has contributed towards securing multiple orders received from customers like Lanco Infrastructure, BHEL, NPCIL, NTPC, amongst others. The company has a record of accomplishment in designing, manufacturing, procuring, constructing, commissioning and servicing various systems and equipments.

FINANCIALS:
The company has achieved a turnover of Rs 200.37cr, PAT of Rs 19.09 cr for FY 2010, as against the turn over of Rs 149.56 cr and PAT of Rs 11.68 cr for the FY 2009.

OBJECTS OF THE ISSUE:

The company intends to utilize the funds - to meet long-term working capital requirements (Rs 30cr), for financing the procurement of construction equipment (Rs 15.35cr), to set up maintenance and storage facility for construction equipment (Rs 5cr) and for setting up of training center for employees (Rs 5.40cr).

MATTERS OF CONCERN / RISKS:

• Company relies substantially on government-owned and government-controlled entities for our work orders. Political or financial pressures may cause a decrease in Government spending on public sector projects, which could adversely affect the growth.
• The standard conditions in contracts typically awarded by clients including government-owned and government-controlled entities are that they have the right to terminate the contract at any time, without assigning any reason.

• Technofab is exposed to significant risks on fixed-price or lump sum turnkey contracts and high working capital requirements.

• The Company is presently carrying out projects in Ethiopia, Fiji and Kenya and is bidding in several other African countries, some of them are unstable political economies.


VALUATION:

The EPS for FY 10 on post issue capital is around Rs 18/-. At the upper price band, the company demands a valuation of 13x. Compares favorably with the other listed players like Shriram EPC (21PE) and Vascon Engineers (27 PE). The company has 27 on going projects. Growth oriented. Fitch IPO grade -3. INVEST.