MCX has fixed the price of its initial public offering at the upper end of the band at Rs 1,032 a share.
Drawing a huge investor response, the IPO was over-subscribed around 55 times attracting bids of about Rs 36,000 crore.
MCX has fixed the price of its initial public offering at the upper end of the band at Rs 1,032 a share.
Drawing a huge investor response, the IPO was over-subscribed around 55 times attracting bids of about Rs 36,000 crore.
ISSUE OPENS ON 09-03-12 AND CLOSES ON 12-03-12.
PRICE BAND RS 30-32.
ISSUE SIZE RS 25CR.
Chennai based Olympic Cards is planning to raise Rs 25cr through IPO to fund its expansion programme. Ashika Capital is the sole book-running lead manager for the issue. In the past Ashika has managed Vaswani, Sudar Garments and VMS Industries. Ashika is notorious for introducing poor quality IPOs.
Olympic Cards is in to manufacturing and trading of wedding and greeting cards, business cards, envelopes, letterheads, calendars, notebooks and account books. It also trades in printing inks. Its manufacturing facility is located in Chennai with an installed capacity of 145 mn pieces. Manufacturing sales contribute 82% to 86% to total revenues; trading sales make up the rest.
The IPO carries grade 1, awarded by CRISIL. The grade assigned to Olympic Cards reflects its presence in an industry which is highly fragmented, with low entry barriers. This weakens the bargaining power of players. Even though Olympic Cards is a leading player in South India, low product differentiation does not really give any player an edge.
The current concentration will adversely affect the company’s long-term prospects. The grade factors in the company’s exposure to the risk of brand dilution. It shares the ‘Olympic’ brand with the promoter’s relatives who have a similar business.
Centralized management, and relatively weak internal processes and management information systems have also influenced the grade. Further, the independent directors’ have limited role in the management.
PRICE BAND Rs 860 to Rs 1,032.
ISSUE DETAILS:
ISSUE SIZE / FV
|
64,27,378 SHARES / RS10 |
IPO OPEN / CLOSE |
22-02-12 /24-02-12 |
BRLMS | EDELWEISS, MORGAN STANLEY AND CITI CORP |
REGISTRARS |
KARVY |
IPO GRADE |
5 / 5 BY CRISIL |
IPO - OFFER FOR SALE - DETAILS OF OFFERORS
(NO OF SHARES)
FTIL | 26,43,916 |
SBI | 21,12,025 |
GLG | 7,81,508 |
ALEXNADERIA | 3,90,754 |
CORP BANK | 2,46,175 |
ICICI LOMBARD | 1,48,000 |
BOB | 1,05,000 |
TOTAL |
64,27,378 SHARES |
OBJECTS OF THE OFFER
The objects of the Offer are to achieve the benefits of listing on the exchanges and to carry out the sale.
The listing of the Equity Shares will enhance the brand name and provide liquidity to the existing shareholders.
The Company will not receive any proceeds from the Offer.
ABOUT MCX
It is promoted by FTIL with a pre-IPO stake of 31.18%. FTIL is a Software developer and a technical service provider of automated electronic solutions for foreign exchange, commodities and equities.
MCX’s leadership position in the Indian commodity futures market over the past four years, with over 80% share of the overall traded turnover in FY11. It is a leader in the trading of bullion, crude oil, copper and natural gas.
The total value of commodity futures contracts traded on the Exchange in the nine months ended December 31, 2011 and the fiscals 2011, 2010 and 2009 was Rs 119,806.89 billion, Rs 98,415.03 billion, Rs 63,933.03 billion and Rs 45,880.95 billion, respectively. According to data maintained by the FMC, these amounts represented 87.3%, 82.4%, 82.3% and 87.4% of the Indian commodity futures industry in terms of the value of commodity futures contracts traded during the same periods.
As of December 31, 2011, MCX, offered trading in 49 commodity futures based on contract specifications, from a diverse range of classes including bullion, ferrous and non-ferrous metals, energy and agriculture. The same underlying physical asset traded under different contract specifications is regarded as a separate commodity future.
MCX as has around 2,200 members on the Exchange‘s platform, with over 296,000 terminals.
MCX is the largest silver exchange, the second largest gold, copper and natural gas exchange and the third largest crude oil exchange, in terms of the number of commodity futures contracts traded for each of these commodities.
FINANCIALS (RS IN MILLIONS)
YEAR |
31-03-09 |
31-03-10 |
31-03-11 |
31-12-11 (9 MONTHS) |
INCOME |
2,124.48 |
2,873.82 |
3,688.92 |
4,023.33
|
NET PROFIT AFTER TAX |
1,574.19 |
2,207.26 |
1,730.97 |
2,205.34
|
CAPITAL |
407.96 |
407.99 |
509.99 |
509.99
|
EPS |
31.60 |
43.30 |
34.56 |
58.00# |
NET WORTH |
4,936.50 |
6,968.12 |
8,488.49 |
10,739.25
|
# Annualized.
VALUATION AND RECOMMENDATIONS:
The offer for sale of 64.27 lac shares of Rs 10 each constitutes 12.6% of the paid up capital of Rs 50.99 CR. MCX, in the price band of Rs 860- 1032 is valued around 17 times its FY12 earnings and 5 times its NAV. This compares well with its counterparts, the US based CME and ICE. Shares are being listed only on BSE is a negative factor. The company has had negative cash flow in the previous years.
Considering small size of the offer, there will be listing gains. INVEST.
NAME OF THE COMPANY |
DATE OF FILING OF DRHP WITH SEBI |
Maiam Global Foods |
21-12-11 |
Bluplast Industries
|
21-12-11 |
Preludesys India |
28-12-11 |
Vishwanath Sugar and Steel Industries |
03-1-12 |
Tara Jewels |
04-01-12 |
Hindusthaan Eco Ventures |
19-01-12 |
The most anticipated tech IPO since Google went public in August 2004, Facebook, the world’s largest social-networking service, is likely to file papers with SEC for its initial public offering (IPO) this week.
The expected market valuation of the company is around $100 billion.
Facebook is founded by Mark Zuckerberg with his college roommates - Eduardo Saverin, Dustin Moskovitz and Chris Hughes. The Web site's membership was initially limited to Harvard students, but was expanded to other colleges in the Boston area, the Ivy League, and Stanford University. It gradually added support for students at various other universities before opening to high school students, and eventually to anyone aged 13 and over.
Revenue
Most of Facebook's revenue comes from advertising. Microsoft is Facebook's exclusive partner for serving banner advertising, and therefore Facebook serves only advertisements that exist in Microsoft's advertisement inventory.
Revenues | ||
Year | Revenue | Growth |
2006 | $52 | — |
2007 | $150 | 188% |
2008 | $280 | 87% |
2009 | $775 | 177% |
2010 | $2,000 | 158% |
2011 | $4,270 | 114% |
Facebook generally has a lower click through rate (CTR) for advertisements than most major Web sites. According to Business Week.com, banner advertisements on Facebook have generally received one-fifth the number of clicks compared to those on the Web as a whole, although specific comparisons can reveal a much larger disparity.
For 2012, Facebook is expected to post $5.78 billion in ad revenue globally.
Facebook's reported valuation of $US75 billion to $US100 billion compares with about $US100 billion for McDonald's Corp, $90 billion for Citigroup Inc and Amazon.com Inc and $US75 billion for Bank of America Corp. It would exceed the market cap of $US55 billion for Hewlett-Packard Co, one of the world's largest technology companies by revenue.
Both Facebook and Google earn most of their money from advertising and are now competing to gain as much information as possible about their users to help advertisers target niche audiences.
Even with Facebook's heady growth rate, Google had ad revenue last year of more than five times what Facebook is expected to get in 2013. Yet it is Google that is mimicking Facebook in building a rival social network called Plus.
OBJECTS OF THE IPO
The IPO funds are intended to be used for its expansion and fend off competition from rivals such as Google and Twitter.
LEAD ARRANGERS / MANAGERS
Morgan Stanley and Goldman Sachs Group are the lead managers.
The targeted amount would slot it among the world's 15 largest IPOs.
At the reported price, Facebook's IPO would be the biggest for a US Internet company - topping the debut of one of its main rivals, Google Inc.
VALUATION: