Showing posts with label ipo analysis. Show all posts
Showing posts with label ipo analysis. Show all posts

Wednesday, April 1, 2015

IPO ANALYSIS : GODADDY - AVOID


GoDaddy  IPO may be priced around $ 20 a share, which values the company at $3 billions. 

FirstchoiceIPO advises the investors to stay  away from the IPO in view of the following.

a. GoDaddy is not making profits - GoDaddy lost $143 million last year on revenue of $1.4 billion, which followed a loss of $200 million on revenue in the current year.

b.IPO proceeds mostly goes towards repayment of debts.

c. Company operates in a very highly competitive field, further penetration / expansion of sustainable business is difficult.


Sunday, March 29, 2015

IPO ANALYSIS: O P CHAINS LIMITED - AVOID




ISSUE OPENS / CLOSES ON

30-03 / 08-04-2015
ISSUE SIZE
18,50,000 EQUITY SHARES
PRICE 
RS 11
FACE VALUE
RS 10
BUSINESS


PROMOTERS

OMPRAKASH AGARWAL / OTHERS


LISTING
BSE- SME





BRLM

HEM SECURITIES

REGISTRAR

BIG SHARE



Tuesday, March 24, 2015

IPO ANALYSIS : YOGYA ENTERPRISES LIMITED - AVOID





ISSUE OPENS / CLOSES ON

25-03 / 30-03-2015
ISSUE SIZE
10,00,000 EQUITY SHARES
PRICE 
RS 15
FACE VALUE
RS 10
BUSINESS
TRADING IN TEXTILES / BULLION / METALS

PROMOTERS
RAJEEV GUPTA & M/S. DHANU INFRASTRUCTURE PRIVATE LIMITED


LISTING
BSE -SME




BRLM
FIRST OVERSEAS CAPITAL LIMITED

REGISTRAR

BIGSHARE

Saturday, March 21, 2015

IPO ANALYSIS : YOGYA ENTERPRISES LIMITED - AVOID





ISSUE OPENS / CLOSES ON

25-03 / 30-03-2015
ISSUE SIZE
10,00,000 EQUITY SHARES
PRICE 
RS 15
FACE VALUE
RS 10
BUSINESS


PROMOTERS



LISTING
BSE




BRLM


REGISTRAR




Sunday, March 15, 2015

IPO ANALYSIS: INOX WIND LIMITED – LOOT MAAR OFFER – AVOID.

ISSUE DETAILS:



ISSUE OPENS  / CLOSES ON

18-03 /  20-03-2015
ISSUE SIZE
RS 700 CR
PRICE BAND
RS 315 - 325
FACE VALUE
RS 10
PROMOTERS
GUJARAT FLUOROCHEMICALS LIMITED

BUSINESS

WIND POWER SOLUTION PROVIDERS
LISTING
BSE AND NSE
BRLM
AXIS CAPITAL, DSP MERRILL LYNCH,  EDEL WEISS AND YES BANK

REGISTRAR

LINK INTIME

                            
                     BUSINESS:

Inox is in to manufacture of wind turbine generators, or WTGs, and provides turnkey solutions by supplying WTGs and offering services including wind resource assessment, site acquisition, infrastructure development, erection and commissioning, and also long term operations and maintenance of wind power projects.

THE OFFER:

Fresh issue of equity shares amounting to Rs 700 crores (including premium) and OFS by GFCL – 1, 00, 00,000 equity shares.

OBJECTS OF THE ISSUE:

1. Expansion and upgradation of existing manufacturing facilities.
2. Long term working capital requirements.
3. Investment in the Subsidiary.
4. General Corporate Purposes.


RISK FACTORS:

                a. The company experienced negative cash flows in the immediate past.

b. Inox has limited operating history, which makes it difficult to evaluate the past performance and prospects.

c.  Operates in a very competitive industry.

d.  Top five customers contributed over 85% of the total income for the nine months ended December 31, 2014.

e.  If wind patterns at sites that we have previously identified as suitable for wind farm projects change, the business, financial condition / operations of the company could be adversely affected.

f.  Most of the company’s experience implementing projects is derived from projects which have implemented in the states of Rajasthan, Maharashtra and Gujarat.

g.  The company has high working capital requirements.

h. Debtors outstanding as of December 31, 2014, are at Rs 755 crores, which accounts for 42% of revenue for the same period.

i. Clash of interest - Promoter and the affiliates have certain interests that are similar to the company’s business.

j. The company is yet to place orders for majority of the items that they intend to purchase using the Net Proceeds of the Issue and the actual cost of such items may exceed the estimates.

l.  The Net Asset Value per Equity Share was Rs 20.99 and Rs 29.88.

 m. The cost of acquisition per Equity Share by our Promoter is just Rs 2.


 n. On June 12, 2013, the short-term rating for the banking facilities and commercial paper was downgraded by CRISIL Ratings from “CRISIL A1” to “CRISIL A2+”. In the “Rating Rationale” with respect to the downgrade, CRISIL cited deterioration in the liquidity over the past year because of an increase in the working capital requirements resulting from a large inflow of orders and CRISIL noted that our debtor days increased to 172 days as of March 31, 2013 from 43 days as of March 31, 2012. 


CHALLENGES FOR WIND TURBINE MANUFACTURERS:

Grid connectivity is a big bottleneck. About ten years back, the wind energy industry was focusing towards technology, up gradation to high capacity, etc. At that point of time, both Wind Turbine Manufacturers and Wind Farm Developers never thought that land availability and the grid connectivity are going to become such a serious issue. Today, the problem has become a magnificent issue and that needs to be addressed.

The availability of land is becoming a major threat since potential wind sites had all been exhausted and the remaining available sites are generally low and medium windy ones. 

FINANCIALS:
                              (RUPEES IN CRORES)

DEC
31 2014
DEC 2013
MAR 2014
REVENUES
1795
853
1576
PAT
 179
 85
 131
EQUITY
200
200
200
  

EPS
Year
Basic EPS  


March 31,2014
7.21


March 31,2013
9.73


March 31,2012
6.66


Weighted Average
7.96


Nine month period ended December 31, 2014.
9.88


VALUATION AND RECOMMENDATIONS

The offer is made around 30 PE, based on the latest EPS, which is exhorbitant for a company which has very limited operational history and operates in an uncertain business segment.  The company will have Rs 200 crore plus equity, post IPO, the serving of such huge equity is next to impossible.

The average cost of acquisition of shares by promoters is just Rs 2, whereas the public offer is made at Rs 315-325, which reminds us the loot-maar IPOs of 2011. 

Within six months of listings, the IPO could trade around Rs 60-70 range.

 Avoid the IPO.




Friday, March 13, 2015

IPO ANALYSIS: SUPREME (INDIA) IMPEX LIMITED -INVEST



ISSUE OPENS  / CLOSES ON

16-03/18-03-2015
ISSUE SIZE
13,12, 000 EQUITY SHARES
PRICE BAND
RS 50 (FIXED)
FACE VALUE
RS 10
PROMOTERS
JUGALKISHORE JHAWAR

BUSINESS

TEXTILE EXPORTER / WOMENS CLOTHINGS


LISTING
NSE – EMERGE (SME)




BRLM
PANTOMATH CAPITAL ADVISORS PRIVATE LIMITED

REGISTRAR

BIG SHARE



Friday, November 9, 2012

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 


Tuesday, October 16, 2012

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.

Wednesday, October 10, 2012

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.

Saturday, September 29, 2012

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.

Thursday, September 20, 2012

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.

Tuesday, September 18, 2012

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.

Monday, September 17, 2012

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.

Sunday, September 16, 2012

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.

Thursday, October 7, 2010

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.