Thursday, November 30, 2017

IPO ANALYSIS : Shalby Limited - Aggressively priced - Avoid




ISSUE DETAILS :




Issue opens / closes on
05-12 / 07-12-2017
Issue Size
Rs 580 cr
Face Value
Rs 10
Price
Rs 245-248


BUSINESS
Multi speciality hospital chain
Promoters
DR VIKRAM SHAH, DR DARSHINI SHAH, SHANAY SHAH, ZODIAC MEDIQUIP LIMITED AND SHAH FAMILY TRUST
LISTINGS
Bse, Nse
BRLMs
Edelweiss, IIFL Holdings, IDFC Bank
REGISTRAR
Karvy



BUSINESS :

Shalby is an Ahmedabad based multi-specialty hospital chain. The hospitals are tertiary care hospitals, few of which also offer quaternary healthcare services to patients in various areas of specialisation such as orthopaedics, complex joint replacements, cardiology, neurology, oncology, and renal transplantations. As on Sep 2017, Shalby provides inpatient and outpatient healthcare services through 11 operational hospitals with an aggregate bed capacity of 2,000 beds.

OBJECTS OF THE IPO :

Company proposes to utilise the Net Proceeds from the Fresh Issue towards the following objects:

 1. Repayment of certain loans - Rs 300 cr.
 2. Purchase of medical equipments.
 3. Purchase of interiors, furniture and for allied infrastructure.
 4. General corporate purposes.

QUALITATIVE FACTORS:

  • Leadership in orthopaedics and strong capabilities in other specialties.
  • Integrated and scalable business model enhancing the patient reach.

FINANCIALS : (Rs in crores)
   

31-03-2017
31-03-2016
31-03-2015
Revenues
332
292
277
Capital
87.4
87.8
35.3
PAT
62.5
37.5
25.7
EPS (Rs)
7.16
4.30##
2.94##

(##Adjusted after bonus issue.)

RISK FACTORS :

  1. A significant portion of the revenue, in excess of 70%, is currently generated from two hospitals.
  2. Dependent on one field of specialty for a substantial portion of the revenue, i.e. orthopaedics.
  3. Change in government policies that relate to patients covered by government schemes will impact business.
  4. Net Proceeds would be utilised to repay a loan facility availed by the Company from IDFC Bank, who are one of the BRLMs.
  5. Contingent liability respect of income tax / sales tax dues amounting to rupees one crore.
  6. Instances of non-compliances in relation to certain regulatory filings to be made with the RoC in the past.
  7. The average cost of acquisition of Equity Shares by Dr Vikram Shah, Dr Darshini and Shanay Shah are ₹4.00 per Equity Share.


VALUATION AND RECOMMENDATIONS :

The company post IPO will have equity around Rs 80 cr. For FY 18 the likely EPS on the expanded capital is Rs 8. The offer is made at 30 plus PE which is expensive. There are challenges in scaling up the operations. For sucking the blood of common man / patients, hospitals are under scanner by various state governments.  This segment will be highly regulated in the coming years.

AVOID THE IPO.



Dr Reddy's faces class action lawsuit

Image result for dr reddy

 Dr Reddy’s Laboratories has been served a securities class action lawsuit in  the  US for alleged violations of federal securities laws.

 The lawsuit, filed in the US district court of New Jersey, seeks damages to  compensate investors for a purported decline in Dr Reddy’s share price  caused  by alleged misstatements or omissions by the company. The  company is listed  in the New York Stock Exchange besides Indian  exchanges.

Bharti Airtel under UIDAI scanner

Image result for bharti airtel

UIDAI has ordered an investigation against Bharti Airtel for alleged violations of the Aadhaar Act and is threatening to slap a financial penalty for opening Airtel Payments Bank accounts of customers surreptitiously while carrying out Aadhaar verification of their mobile numbers. The probe against the company was ordered after complaints of prima facie violations were found to be valid.

Bharti airtel stock to come under pressure in today's trade.

Future Supply chain, Shalby hospital fixes IPO price

Future Supply Chain Solution’s initial public offering of shares to raise up to Rs 650 crore will open next week. The company has fixed the price band in the range of Rs 660-664.

 Shalby Ltd's IPO will open on Dec 5 and close on 7th.   Shalby has set a price  band of Rs 245-248 per share.


SBI raise bulk deposits rate

State Bank of India has raised its rate on all bulk term deposits, that is Rss 1 cr and above,  by one per cent from Friday. The revision comes after about a year and also signals the end of a rate easing cycle.

Fiis are in selling mood

Fiis net sold for Rs 859 cr in cash market yesterday. Diis have net bought for Rs 771 cr in the same segment. Benchmark Indices marginally closed in the red. 

Wednesday, November 29, 2017

Fox News : North Korea fires ballistic missile

North Korea on Wednesday fired a ballistic missile that landed into the Sea of Japan, according to Fox News. 

The missile, believed to be an intercontinental ballistic missile (ICBM) by the Pentagon based on initial assessments, was launched from Sain Ni, North Korea and flew roughly around 1,000 km before landing in the Sea of Japan.

Morgan Stanley says rising oil prices is biggest risk to India

Rising oil prices and an expected volatility in the market due to a number of elections scheduled in states, Morgan Stanley has cut the size of its ‘overweight’ rating on India for 2018 to accommodate Brazil’s upgrade to the overweight category.

 China continues to remain the global firm’s biggest bet in the category. A Morgan Stanley report co-authored by Jonathan Garner, the firm’s chief Asia and Emerging Markets Equity Strategist, reduced overweight rating on India from +250 basis points (bps) to +150 bps.

Tuesday, November 28, 2017

Forthcoming IPO : SHALBY LIMITED

ISSUE DETAILS :


Issue size
Rs 580 cr
Face Value
Rs 10


Promoter
DR VIKRAM SHAH, DR DARSHINI SHAH, SHANAY SHAH, ZODIAC MEDIQUIP LIMITED AND SHAH FAMILY TRUST
Business
Hospital chain - multi speciality
Registrar
Karvy
Listings
Bse, Nse
BRLM
Edelweiss, IIFL Holdings, IFDC Bank

IPO ANALYSIS : SHRADHA INFRAPROJECTS (NAGPUR) LIMITED - Avoid


ISSUE DETAILS :



Issue opens / closes on

27-11 / 30-11-2017
Issue Size
27,04, 000 equity shares
Face Value
Rs 10
Price
Rs 70

BUSINESS
Real estate
Promoters
Sunil Raisoni and Riaan Diagnostic Private Limited
LISTINGS
Nse, emerge
BRLMs
Aryaman Financial Services
REGISTRAR
Big Share


IPO ANALYSIS : ICE MAKE REFRIGERATION LIMITED - INVEST

ISSUE DETAILS :



Issue opens / closes on

28-11 / 30-11-2017
Issue Size
41,60,000 equity shares
Face Value
Rs 10
Price
Rs 57-57

BUSINESS
Refrigeration equipment mfrs / cooling solution providers
Promoters
AJENDRA P. PATEL AND MR. VIPUL I. PATEL
LISTINGS
Nse, emerge
BRLMs
Vivro Financial Services
REGISTRAR
Link Intime



QUALITATIVE FACTORS:

1.Manufacturers of wide range of refrigeration equipments.
2. Well established manufacturing facilities.
3. Experienced Promoters and qualified technical team.
4. Providing customized solutions with a focus on after sales service.
5. Consistently profit making enterprise.

FIR lodged against Flipkart promoters

Flipkart founders Sachin Bansal and Binny Bansal and a few other company officials faces cheating allegations by a businessman to the tune of Rs 9.96 crore.

The cheating case pertains to “non-payment” of dues by Flipkart to C-Store Company for laptops it supplied, officials at the Indiranagar police station said. 

They said an FIR has been registered against Flipkart founders Sachin Bansal and Binny Bansal and a couple of company officials, based on the complaint by C-Store Company’s Naveen Kumar.

GST collection dips in Oct

GST collections slipped almost 10 per cent to Rs 83,346 crore in October as tax rates on several products were cut and teething troubles with the new regime pushed back implementation of key provisions.

 Goods and Services Tax returns filed for October resulted in a revenue of Rs 83,346 crore, down from over Rs 92,000 crore in the previous month.

CDB files insolvency petition against Rcom

China Development Bank has filed an insolvency petition against Reliance Communications in the bankruptcy court to recover Rs 11,460 crore, it had lent to the Anil Ambani-owned telecom enterprise.


Goldman Sachs on Nifty


The US-based brokerage expects the benchmark Nifty to climb to 11,600 by the end of the next calendar year, implying a 12 per cent upside from current levels. The forecast is impressive, considering the 50-share index has already rallied 28 per cent in the past one year.

IPO ANALYSIS : INNOVANA THINKLABS LIMITED - Avoid


ISSUE DETAILS :


Issue opens / closes on

29-11 / 04-12-2017
Issue Size
11,00,000 equity shares
Face Value
Rs 10
Price
Rs 60

BUSINESS

Software development
Promoters
CHANDAN GARG AND MR. KAPIL GARG
LISTINGS
Nse, emerge
BRLMs
Swastika Investments
REGISTRAR
Skyline Financial Services


Remarks : Limited operational history.