Tuesday, January 25, 2011

FORTHCOMING IPOS




NAME OF THE COMPANY

SANCO INDUSTRIES LIMITED

PROMOTERS

SANJAY GUPTA AND OTHERS

ISSUE SIZE / FV

75,00,000 / RS 10

BRLM

MEFCOM CAPITAL MARKETSSANCO INDUSTRIES LIMITED

REGISTRAR

BEETAL FINANCIAL AND COMPUTER SERVICES



NAME OF THE COMPANY
TRIBHOVANDAS BHIMJI ZAVERI LIMITED

PROMOTERS
SHRIKANT ZAVERI, BINAISHA ZAVERI AND RAASHI ZAVERI

ISSUE SIZE
PUBLIC ISSUE OF 16,666,667 EQUITY SHARES OF FACE VALUE OF Rs. 10 EACH

BRLM
IDFC CAPITAL LIMITED
AVENDUS CAPITAL

REGISTRAR
KARVY COMPUTERSHARE PRIVATE LIMITED



NAME OF THE COMPANY

JOYALUKKAS INDIA LIMITED.

PROMOTERS
ALUKKAS VARGHESE JOY

ISSUE SIZE
PUBLIC ISSUE OF 18,000,000 EQUITY SHARES OF ` 10 EACH

BRLM
Enam Securities Private Limited  Citigroup Global Markets India Private Limited

REGISTRAR
Link Intime India Private Limited

IPO ANALYSIS: FUTURE VENTURES LIMITED – BLEAK FUTURE, DEBT / CASH TRAPPED GROUP – AVOID.





The Futures Ventures Limited, part of Future Group is planning to raise Rs 750cr through an IPO shortly. The Future Group is   led by Kishore Biyani, focuses on consumption-led businesses in the country and is also one of the country‘s leading organized multi-format retailers. PRIL,  the flagship  company  of  the  Future  Group,  has  incubated,  nurtured  and  brought  to  maturity  several  businesses  and formats,  including  FCH,  Future Generali  Insurance,  Future  Supply Chain,  Future Agrovet,  Future Media,  Future Brands, Future Bazaar, Pantaloons, Central, Big Bazaar, Food Bazaar, Home Town and E-zone.  


The company intends to create,  build,  acquire,  invest  in  and  operate  innovative  and  emerging  businesses  in  growing consumption-led sectors in the country. Within the consumption-led sectors, the company intends to focus primarily on opportunities in the business segments
of  (i)  fashion,  (ii)  FMCG,  (iii)  food  processing,  (iv)  home  products,  (v)  rural  distribution  and  (v)  vocational education.

At present the company has 13 Business Ventures, six of which are the subsidiaries. Future Ventures seek to enable the Business Ventures to conceptualize and implement their  growth  and  development  strategies  and  to  help  them  convert  ideas  and  insights  into  viable  business
propositions. The company intends to be a long-term owner, operator and/or partner of the Business Ventures and seek to create value as an active shareholder by deploying the consumer insights, operating skills. Future Ventures seek to access opportunities at various stages of the enterprise growth cycle, from nascent to more mature businesses, with a view towards medium to long-term value creation for the shareholders. 

 

OBJECTLESS IPO

There are no definitive plans to utilize the proceeds of the issue. It appears the issue is brought out to ease the liquidity faced by the group. The  objects  of  the  Issue  have  not  been  appraised  by  any  bank  or  financial  institution.

FINANCIALS:
RS IN CRORES


08

09

10

TOTAL INCOME

5.15

130.64

177.91

PAT

(4.36)

(55.61)

(21.34)

EPS

(0.98)

(1.46)

(0.27)

SHARE CAPITAL

363.84

368.84

576.24

NAV AS ON 31-03-10 is Rs 8.75.

RISKS:

The issue is being managed by Kotak Mahindra Capital, JM Financials and Enam Securities.

The performance of the issues managed by the number ‘one’ merchant banker (Kotak) in the country is pathetic. In the year 2010 the company managed 19 issues. Out of the 19 issues only 8 IPOS are quoting above the issue price. Enam Securities managed 17 issues. Out of the 17 issues only 6 IPOS are quoting above the issue price. JM Financials has managed 7 issues, out of which only 2 are trading above the issue price. The BRLMs are not known to bring investors friendly issues. Their judgment on premium has been totally off the mark. 

The same combination of BRLMs, along with UBS Securities, managed the Future Capital Holdings Limited IPO in 2008. As against the issue price of Rs 765/- the shares are now trading at Rs 160 in the exchanges.


The group / company operate in the highly competitive retail segment.

The past performance of the company / group is not inspiring.

In the past, PRIL made promises during the initial public offering of its equity shares but was unable to perform as per those promises.
 
Out of the 21 group companies, 20 companies reported losses in the FY 10.

The promoters have allotted shares @ Rs 10 only.

The group has not rewarded the investors in the past.

VALUATION AND RECOMMENDATIONS

One of the poor quality IPO, being managed by BRLMs with pathetic record. This is another day light robbery issue, like BS transcomm, Gyscoal alloys, CEBBCO, Aster silicates etc. SEBI should exercise caution while clearing these kinds of IPOS, whose only aim is to loot the public money. A must AVOID issue.

DETAILED ANALYSIS WILL BE POSTED AGAIN IN DUE CORSE / NEAR THE ISSUE DATE.



SUBSCRIPTION STATUS - OMKAR SPECIALITY CHEMICALS - FULLY SUBSCRIBED


Monday, January 24, 2011

FORTHCOMING IPO





NAME OF THE COMPANY

GOODWILL HOSPITAL AND RESEARCH CENTER

PROMOTERS

OJJUS MEDICARE

ISSUE SIZE

RS 62CR

BRLM

SPA MERCHANT BANKERS

REGISTRAR
BEETAL FINANCIAL AND COMPUTER SERVICES

Saturday, January 22, 2011

FORTHCOMING IPO




NAME OF THE COMPANY
M AND B SWITCH GEARS LIMITED

PROMOTERS
Shyam Sunder Mundra,  Vikalp Mundra,  Anurag Mundra

ISSUE SIZE
PUBLIC ISSUE OF 50,00,000 EQUITY SHARES

BRLM
D & A Financial Services Private Limited

REGISTRAR
Big share Services Private Limited

Thursday, January 20, 2011

IPO CRISIL GRADING - GALAXY SURFACANTS

Galaxy Surfactants Ltd, which is planning an IPO, has got 4/5 grading from CRISIL.
The company manufactures surfactants and specialty chemicals. The IPO is expected before March this year.

Tuesday, January 18, 2011

IPO ANALYSIS: OMKAR SPECIALITY CHEMICALS LIMITED (OSCL) – ON RIGHT TRACK - INVEST




BUSINESS:

OSCL is primarily involved in the production of specialty chemicals and pharma intermediates. It manufactures a range of organic, inorganic and organo-inorganic intermediates.  The inorganic intermediates include Molybdenum derivatives, Selenium derivatives, Iodine derivatives, Cobalt derivatives, Bismuth & Tungsten derivatives and the organic intermediates include Tartaric acid derivatives and other intermediates. These products  find applications  in various  industries  like pharmaceutical  industry,  chemical  industry,  glass  industry,  cosmetics, ceramic  pigments  and  cattle  &  poultry  feeds.  The manufacturing units are located in Badlapur, Thane district.


OSCL has recently acquired M/s. Rishichem Research Ltd., which is primarily into research and development activities, to strengthen R&D capabilities of the company.  This company was earlier a sister concern and was owned by the promoters only. It was valued at Rs.1.3 crore and consideration was paid by issue of equity shares. 



PROMOTERS: Pravin Herlekar and Omkar Herlekar


OBJECTS:


The  company  is  planning  to  set  up  a  new manufacturing unit, Unit-IV at Badlapur, Thane, at an estimated cost of Rs. 32.1 crore and is also planning  for  expansion at  the  existing units at an  estimated  cost of Rs. 14.61  crore.

The  total  installed  capacity of the Company would aggregate  to  3650 MT per  annum  from  the  existing  installed  capacity  of  950 MT per  annum, on completion of the expansion.

FINANCIALS:

RS IN CRORES


08
09
10
30-09-10
TOTAL INCOME
43.29
50.64
68.92
51.10
PAT
  2.58
 3.13
  5.13
  5.04
EPS
  2.24
 272
  4.45
  4.38


RISKS:


1. The company does not own the trademark “Omkar”, logo of “Omkar”.

2. The company operates in highly competitive sector.

3. Project not appraised, fully equity funded without any contribution from the promoters.

4. High working capital / bank borrowings, a drag on profit margins.


VALUATION AND RECOMMENDATIONS:

The  Indian  specialty  chemical manufacturers have  the  technical expertise and R&D capabilities  to produce niche, complex and high-quality intermediates  belonging  to  the  pharma  sector. Going  forward,  the  Indian  pharma-associated companies  can  demonstrate  considerable  potential  for  collaborative  and  outsourced  R&D projects in new drug development, biotechnology and chemicals. 

There is a study increase in the margin over the last three years. The company has a CAGR of 28% in the same period. The Return on the capital Employed is stable around 30%.  Pravin  Herlekar,   the  Chairman  and Managing Director of  the  company is a Bachelor of Technology  in Chemical Engineering from the Indian Institute of Technology, Bombay, and is a post graduate in management studies from  the Mumbai University, has vast experience in the field.

At Rs 95 - 98, the company is demanding a valuation around 20 times its FY 11 earnings, which is justified considering the segments it operates and the expected benefits from capacity expansion. Invest.

ISSUE DETAILS:


SIZE / FV


81,00,000 SHARES/ RS 10

BRLM

ALMONDZ SECURITIES

OPEN / CLOSES ON

24-01-11 / 27-01-11

IPO GRADING

CARE 3

POST ISSUE CAPITAL

RS 19.63CR

ONGC FOLLOW ON OFFER - SIX BANKERS SHORTLISTED

Citigroup, Nomura, JM Financials, Bank of America, HSBC and Morgan Stanely are the merchant bankers likely to manage the Rs 14,000-18,000cr FPO.  The issue is likely to hit the market in March 2011. The government has recently approved split and bonus issue.

IPO NEWS -JINDAL POWER IPO IN MAY 2011

The Rs 7000cr IPO of the Jindal Power Limited is expected in the first quarter of FY11. The funds are intended to  be used for its Rs 22,000cr expansion plans at Chhattisgarh and Jharkhand.

LISTING NEWS - C.MAHENDRA EXPORTS TO LIST ON 20-01-11

Sunday, January 16, 2011

FORTHCOMING IPO





NAME OF THE COMPANY
COMFORT SECURITIES LIMITED

PROMOTERS
ANIL AGRAWAL, MRS. ANNU AGRAWAL AND COMFORT INTECH LIMITED

ISSUE SIZE
PUBLIC ISSUE OF 95,00,000 EQUITY SHARES OF FACE VALUE RS. 10 EACH

BRLM
DALMIA SECURITIES PRIVATE LIMITED

REGISTRAR
BIGSHARE SERVICES PRIVATE LIMITED

Saturday, January 15, 2011

FPO ANALYSIS: TATA STEEL LIMITED – INVEST - FOR LONG TERM





The century old, one of the world’s largest steel producers is coming out with an FPO of 57,000,000 equity shares in the price band of Rs 594- 610. The issue opens on 19-01-11 and closes on 21-01-11. The issue constitutes 5.94% of the post issue paid up capital of Rs 959cr.

BUSINESS:

The Company was established as India’s first integrated steel company in 1907 by Jamsetji N. Tata, the founder of the Tata Group, and is currently one of the flagship companies of the Tata Group.

TATA STEEL is one of the world’s largest steel companies with a steel production capacity of approximately 27.2 mtpa. According to WSA, the Company was the seventh largest 
steel company in the world in terms of crude
Steel production volume in 2009. The Company is also one of the most geographically diversified steel producers, with operations in 26 countries and a commercial presence in more than 50 countries.

TATA STEEL has a presence across the entire value chain of steel manufacturing, including producing and distributing finished products as well
as mining and processing iron ore and coal for its steel production. The Company’s operations are primarily focused in India, Europe and other countries in Asia Pacific.
In Financial Year 2010, the Company’s operations in Europe
and India represented 62.9% and 28.8%, respectively, of its total steel production. 

FINANCIALS:

In Financial Years 2009 and 2010 and the first half of Financial Year 2011, the Company recorded net sales of Rs. 1,473,293 million, Rs. 1,023,931 million and Rs. 558,399 million, respectively. The Company recorded a profit
after taxes, minority interests and share of profit of associates of Rs. 35,042 million in Financial Year 2009, a loss after taxes, minority interests and share of profit of associates of Rs. 20,147 million in Financial Year 2010 and a
profit after taxes, minority interests and share of profit of associates of Rs. 37,978 million in the first half of Financial Year 2011. The Company had total assets of Rs. 1,213,678 million and total net worth of Rs. 277,416 million as of September 30, 2010. 


OBJECTS OF THE ISSUE

The objects of the Issue are to:
 
1. Part finance the Company’s share of capital expenditure for expansion of existing works at Jamshedpur. 

2.  Payment of redemption amounts on maturity of certain redeemable non-convertible debentures issued by the Company on a private placement basis.
 
3. General corporate purposes.


STRENGTHS:

  • Global Scale - The Company today has its principal operations in Europe, India and Asia Pacific.
  • Strong Position in the Indian and Europe Market. 
  • Diversified Product Offering.
  • Economies of Scale and Cost Reductions. 
  • Experienced Management Team. 

RISKS:

The steel industry is affected by global economic conditions. A slower than expected recovery of the global economy or a renewed global recession could have a material adverse effect.

The steel industry is highly cyclical and a decrease in steel prices may have an adverse effect on the Company’s results of operations.

Europe is the Company’s largest market, and its current business and future growth could be adversely affected if economic conditions in Europe deteriorate.

The Company operates a global business and its financial condition and results of operations are affected by the local conditions in or affecting countries where it operates.


VALUATION AND RECOMMENDATIONS:

The shares are offered around 8 PE. Valuation wise, from Flagship Company of TATA group is reasonable. However, in the last one year, the stock has given a negative return (-3.52%). Better performance and improvement in bottom line is expected in the coming years, as the world economy is recovering. INVEST with a view on long term.

Sunday, January 9, 2011

IPO ANALYSIS: MIDVALLEY ENTERTAINMENT LIMITED – NO VALLEY, IT IS DESERT – AVOID.




Mid Valley Entertainment Ltd. - the film production, distribution & exhibition in South India is entering the capital market on 10-01-11 with an IPO. The company intends to raise Rs 60cr, in the price band of Rs 64-70. Aryaman Financial Services Limited are the BRLM. The issue closes on 12-01-11.

The  company  produces,  distributes  and  exhibits  movies  both  in  Indian  and  foreign languages.  The company also holds the music, video and television rights of movies, television serials for TV Channels. The company has earlier produced movies like Thambi and Seena Thana, in Tamil. The company presently has screening agreements with 46 theatres across Tamil Nadu (34), Andhra Pradesh (5) and Karnataka (7). The company plans to focus primarily on movie production and exhibition business going forward. 

The promoters of the company are -Datuk K. Ketheeswaran, M/s. Unigold Pacifc Limited, M/s. Global Motion Pictures & Ventures Limited and M/s. Kiara Enigma Sdn Bhd.


The objects of the Issue are: 

A.  Entering into screening agreements with 300 cinema theatres. 
B.  Renovation and Up-gradation of cinema infrastructure with Digital Equipment and other related assets for a select 100 screens.
C.  Acquisition of company, acquisition of screening rights of company having similar line, range and objects of business
D.  To meet general corporate expenses


RISK FACTORS:

1. The company operates in highly competitive and uncertain segment.
2. Lack of transparency and hence lack of corporate governance in doing business.
3. The company has not paid Income Tax dues aggregating to Rs. 914.00 Lacs.
4. For acquisition, no specific target has been identified.
5. The company had in the past defaulted and failed to repay the loan taken from City Union Bank Limited. 
6. The company had violated certain guidelines under FEMA.
7. There are certain audit qualifications in the auditor’s report pertaining to previous financial years/periods.
8. IPO grade 1 by BRICK WORKS.
9. Shares will be listed only in BSE.

VALUATION AND RECOMMENDATIONS

The company will have a post issue capital of around Rs 40cr, servicing this kind of equity will be very difficult, going by company’s past track record. There are issues with respect to corporate governance. Shares of the companies in this segment are not fancied in the exchanges. Even the much hyped, recently listed EROS Entertainment shares are quoting below the offer price. AVOID.

Wednesday, January 5, 2011

IPO SUBSCRIPTION STATUS - C.MAHENDRA EXPORTS FULLY SUBSCRIBED

The IPO was fully subscribed on the penultimate day. However, FIs, Banks, Mutual Funds And Insurance companies have not evinced any interest in the IPO.

IPO NEWS - ENDURANCE GETS 3 /5 GRADE FROM CRISIL

Endurance, which is in to manufacture of suspension and transmission components, has got grade 3 from CRISIL, for its forthcoming IPO.

FORTHCOMING IPO





NAME OF THE COMPANY

TRIM PLASTICS LIMITED

PROMOTERS
DEEPAK SHROFF,  PARU SHROFF,  JIGNASA SUKHADIA AND  NEETA SUKHADIA

ISSUE SIZE
PUBLIC  ISSUE OF  59,30,000  EQUITY  SHARES OF RS.  10  EACH

BRLM
ONELIFE CAPITAL ADVISORS LIMITED

REGISTRAR
BIGSHARE SERVICES PRIVATE LIMITED

IPO NEWS - TRIMAX PLANS IPO

The company intends to raise Rs 250cr through the IPO. The company which is into providing IT Solutions, has plans for overseas expansion.

IPO NEWS - MUTHOOT FINANCE GETS SEBI NOD

The Rs 800cr IPO from the Kerala based finance group got SEBI nod. The company intends to issue 5.15cr shares through the IPO, which will dilute the promoters stake by 14%.

Tuesday, January 4, 2011

IPO PERFORMANCES VS RECOMMENDATIONS – LAST 10 IPOS.





NAME
ISSUE PRICE
 PRICE  AS ON 04-01-11
FIRST CHOICE RECOMMENDATIONS

PUNJAB AND SIND BANK

120

129

APPLY

RAVI KUMAR

64

62
    
                  AVOID

A2Z

400

337

                  AVOID

SCI

140

136

                  AVOID

CLARIS LIFE

228

211

APPLY

MOIL

375

455

APPLY

RPP INFRA

75

58
       
                  AVOID

POWER GRID


90

98

APPLY

GRAVITA

125

266

APPLY

COAL INDIA

245

319

APPLY

As can be seen, except in the case of Claris Life Sciences, the recommendations of First Choice IPO were correct each time.