BHARTI INFRATEL IPO OPENS TODAY

Bharti Infratel IPO in the price band of Rs 210-240 opens for subscription today. The IPO has been irrationally priced. After listing  the stock will settle down around Rs 100. One can look at the stock then.

AVOID SUBSCRIPTION.

FORTHCOMING IPO : SMC GLOBAL SECURITIES

NAME OF THE  COMPANY	SMC GLOBAL SECURITIES LIMITED
PROMOTERS	SUBHASH CHAND AGGARWAL, MAHESH CHAND GUPTA, SUSHMA GUPTA AND DAMODAR KRISHAN AGGARWAL
ISSUE SIZE	PUBLIC ISSUE OF 1,58,67,380 EQUITY SHARES OF FACE VALUE OF RS 2 EACH
BRLM	TATA SECURITIES, IL&FS CAPITAL ADVISORS
REGISTRAR	LINK  INTIME

IPO NEWS : IPsoft IPO IN 2014

IT infrastructure management company - IPsoft has plans hit the market by 2014.  The company expects to clock $1 billion revenue this financial year.

IPO NEWS : INTERNATIONAL TRACTORS PLANS IPO.

International Tractors which manufactures farm equipments, SUVs, diesel generators sets and tractors is planning an IPO of Rs 800cr in two years time.

IPO NEWS : CALYX CHEMICALS FILES PAPERS WITH SEBI

Calyx Chemicals and Pharmaceuticals has filed papers with SEBI for an IPO. The company intends to issue 70,50,000 equity shares of Rs 10 each. The premium has not been decided. The Mumbai based company is promoted by Smitesh C Shah, B C Mehta and R I Doshi. The IPO will be lead managed by Prabhudas Lilladher and Yes Bank.

IPO ANALYSIS: RCL RETAIL LIMITED - AVOID

ISSUE OPEN / CLOSES ON	27-09-12 / 01-10-12
ISSUE SIZE	57,95,000  EQUITY SHARES
PRICE / FV	RS 10 / FV RS 10
PROMOTERS	NITESH LODHA & SHREYANS LODHA
BUSINESS	Company is  engaged  in  the  business  of  trading  of  ready  to  eat  snacks,  fryums,  bakery  products,  cookies, confectioneries,  namkeens,  chutneys,  mouth fresheners,  juices,  mobile  food  such  as  vada  pav.
OBJECTS OF THE ISSUE	For Setting up of eight  new retail outlets, setting up a food grain processing unit, strengthen supply chain management  and for meeting General corporate expenses.
LISTING	BSE-SME
GRADING	N A
BRLM	GUINESS MERCHANT BANKERS
	CAMEO CORPORATE SERVICES LTD.

SGX NIFTY RECOVERS, TRADES IN GREEN

SGX NIFTY which was down more than 70 points yesterday due Mamata's effect has recovered and in green zone in the early trade today. Although Asian markets are down SGX NIFTY is up 10 points at 7.25a.m. However we expect our markets to open in and close in red.

IPO LISTING NEWS : THEJO ENGINEERING LISTS AT PREMIUM

Thejo Engineering as against the IPO price of Rs 402, got listed at Rs. 412, with a premium of 2.48 per cent and closed at the IPO price.
 
Thejo Engineering is the first company to to be listed on Emerge - the SME platform of the NSE.

INDICES SNAP NINE DAY RALLY

As expected markets closed in red after gaining for nine days. Some PSU stocks kept the indices falling at check. PNB, BOB,SBI, BHEL and GAIL were the top gainers among NIFTY stocks. Cairn,TCS, Hindalco,RIL and Wipro are the main losers.DIIs net sold for Rs 671cr where as FIIs net purchased for Rs 1049cr in cash market. Tomorrow being holiday on account of Ganesha festival, traders have squared off some of the positions. Global cues will guide our markets on Thursday.

IPO LISTING NEWS : THEJO TO LIST ON 20-09-12

Thejo Engineering has set the IPO price at Rs 402 and the allotment has been completed. The shares are likely to be listed in the exchanges on 20-09-12. This is the first SME IPO to be listed on NSE. We expect the shares to list around Rs 455.

IPO NEWS : BHARTI INFRATEL FILES PAPERS WITH SEBI

Bharti Infratel, subsidiary of telecom major Bharti Airtel, has plans to mobilize Rs 5000cr through stake sale. In this regard the company has filed papers with the regulator. The proposed IPO may offer 190 million shares equivalent to 10% equity dilution in the price band around Rs 250. The offer may consist of both fresh issue of equity and offer for sale from early investors. Bharti Infratel manages around 80,000 towers.

NBCC IPO GETS LUKE-WARM RESPONSE

The Public offer of 1,20,00,000 equity shares by NBCC , in the price band of Rs 90 - 106, received luke-warm response till today, getting subscription to the extent of 58% only. The IPO closes tomorrow.

IPO ANALYSIS : PRESTIGE ESTATES PROJECTS LIMITED: CASTLES IN THE AIR – AVOID. PRICE BAND RS 172 -183.

The Bangalore based real estate developer - Prestige Estates Projects Limited (PEPL) is entering the capital market on 12-10-10. The company intends to raise Rs 1200cr through the IPO.  The issue closes on 14-10-10. Enam Securities, J.P.  Morgan India,   Kotak Mahindra and Capital UBS Securities are the BRLMs.

BACK GROUND AND BUSINESS:

The Prestige Group owes its origin to Mr. Razack Sattar. Promoters have been associated with the real estate business since 1981. The group has over two decades of experience in  real  estate  development  and  are  one  of  the  leading  real  estate development companies in south India. PEPL has  completed more than 140  real  estate  projects  of  approximately  27 million sq. ft. The company has diversified portfolio of real estate development projects, focusing on projects in  the  residential,  commercial, hospitality and  retail  (including  shopping malls)  segments. The company currently own or hold development rights for 52.57 million sq. ft. of Developable Area, this includes 24.49 million sq. ft. of Saleable Area and 9.64 million sq. ft. of Leasable Area. 

PEPL’s completed notable projects, among others, include, Prestige Technology Park,

Oakwood Premier Prestige Serviced Apartments and The Forum Mall and Forum Value Mall, all in Bengaluru.

The company  currently  has  33 Ongoing  Projects which  comprise  10  residential,16  commercial  projects, 4 hospitality projects and  3  retail projects.  

LAND BANK

The group has a total Land Bank of approximately 250.61 acres. Apart from Bengaluru, the company has on going projects in Hyderabad, Goa, Mysore, Mangalore, Chennai and Cochin.

FINANCIALS:

(RS IN CRORES)

	08	09	10
TOTAL INCOME	989.26	916.15	1086.01
PAT	65.92	77.31	147.00
EPS (Rs)	2.57	2.95	5.53

 

OBJECTS OF THE ISSUE:

Rs in cores

a. For on going projects	429.00
b. Investment in subsidiaries	193.00
c. For land acquisition	21.00
d. Loan repayment	280.00
e. General corporate purposes	277.00

STRENGTHS:

Strong execution track record and capability. 

Diversified portfolio of real estate projects. 

MATTERS OF CONCERNS:

1. The land, which is  registered in the name of the Company, is 18.44 acres and this accounts for less than 25% of the total Land Reserves. The balance is held by subsidiaries / associates.

2. The business  enjoys  various  tax  benefits  under  the  Income Tax Act,  and  is  also  expected  to  benefit from  SEZ  related  tax  benefits.   Any policy change in this regard will affect the profitability.

3. The company has debt around Rs1370cr as of Sept 2010. Heavy indebtedness is a strain on the liquidity and margins.

4. CARE IPO grade 3/5, indicating average fundamentals.

5. The company faces  intense  competition  from both domestic  and  foreign  players,  based  on  the availability and cost of land.

6. The company has not declared and paid any dividend so far.

7.The  average  cost  of  acquisition  of  the  Company's  Equity  Shares  by  the  Promoters  is  Rs.  0.36 Per share. Family run enterprise.

VALUATION AND RECOMMENDATIONS.

On the price band of Rs 172 -183, the company is demanding a PE multiple of 33 on its FY 10 earnings, which is expensive, compared to the peers in the industry. Family run, debt ridden enterprise. More than 25% of the issue proceeds will go towards loan repayment. Although not indicated, it appears, most the issue proceeds will go towards clearance of loans. The PAT margin, which was around 7% until 2009, has gone up to 14%, in 2010, because of the IPO envisaged. The average RONW in the last three years is mere 16%.  AVOID SUBSCRIPTION.

PEER COMPARISON

Name of the company	CMP	P/ E
Sobha developers	390	24
Purvankara Projects	133	18

Recently listed Nitesh Estates and DB Realty are quoting below the issue price.

IPO LISTING NEWS

Career Ponit, Eros International, Electrosteel Steels, Orient Green Power and Ramky Infra are likely to list this week, between 06-10-10- and 08-10-10.

IPO NEWS : Muthoot Finance plans 800 cr IPO.

The Kerala-based, largest gold financing company, is planning an IPO. The company intends to dilute around 14% of the equity.

FORTH COMING IPO

NAME OF THE COMPANY	VASWANI INDUSTRIES LIMITED
ISSUE SIZE / FV	1,00,00,000 EQUITY SHARES OF Rs. 10/- EACH
PROMOTERS	RAVI VASWANI,  PRAMOD VASWANI AND YASHWANT VASWANI
BRLM /S	ASHIKA CAPITAL LIMITED
ISSUE TYPE	100% BOOK BUILDING
REGISTRAR TO THE ISSUE	LINK INTIME INDIA PVT LTD

FORTH COMING IPOs

NAME OF THE COMPANY	HINDUSTAN COPPER LIMITED
ISSUE SIZE / FV	185,043,600 EQUITY SHARES OF RS 5 EACH
PROMOTERS	Government of India
BRLM /S	ICICI SECURITIES, SBI CAPS, ENAM SECURITIES, UBS SECURITIES, KOTAK MAHINDRA
ISSUE TYPE	100% BOOK BUILDING
REGISTRAR TO THE ISSUE	KARVY

NAME OF THE COMPANY	SANGHVI FORGING AND ENGINEERING LIMITED
ISSUE SIZE / FV	RS 42.50cr / RS 10
PROMOTERS	Babulal Sanghvi,  Jayanti Sanghvi,  Naresh Sanghvi,  Vikram Sanghvi
BRLM /S	ARIHANT CAPITAL MARKETS
ISSUE TYPE	100% BOOK BUILDING
REGISTRAR TO THE ISSUE	BIG SHARE

FORTHCOMING - IPOS

NAME OF THE COMPANY	L&T FINANCE HOLDINGS LIMITED
ISSUE SIZE / FV	1250 cr / FV RS 10
PROMOTERS	L& T LIMITED
BRLM /S	JM Financial,   Citigroup Global, HSBC Securities, Barclays Securities Credit Suisse Securities (India) and Equirus Capital
ISSUE TYPE	100% BOOK BUILDING
REGISTRAR TO THE ISSUE	Sharepro Services

FORTH COMING IPO

NAME OF THE COMPANY	FINEOTEX CHEMICAL LIMITED
ISSUE SIZE / FV	42,11,160 EQUITY SHARES / Rs10
PROMOTERS	Surendra Kumar Tibrewala and associates
BRLM /S	INDBANK MERCHANT BANKING SERVICES LIMITED
ISSUE TYPE	100% BOOK BUILDING
REGISTRAR TO THE ISSUE	BIG SHARE

FORTH COMING IPO

NAME OF THE COMPANY	MOIL LIMITED
ISSUE SIZE / FV	33,600,000 EQUITY SHARES / RS 10
PROMOTERS	GOVERNMENT OF INDIA
BRLM /S	EDELWEISS CAPITAL,  J.P. MORGAN INDIA, IDBI CAPITAL MARKET SERVICES
ISSUE TYPE	100% BOOK BUILDING
REGISTRAR TO THE ISSUE	KARVY