2012 - Indian IPO Blog

Indian IPO Blog

Insights into investing world in India

Friday, December 28, 2012

Bharti Infratel to list today

December 28, 2012 0
Bharti Infratel to list today
The shares of Bharti Infratel would go live for trades from today, December 28, 2012. The Issue Price under the IPO was fixed at Rs.220/- a piece whereas the shares offered under the IPO were under a price band of Rs.210/- to Rs.240/- a share

Bharti Infratel Limited is a provider of tower and related infrastructure. Bharti Infratel is one of the world's largest telecom tower infrastructure providers which deploys, owns and manages telecom towers and communication structures for all wireless operators. The business of Bharti Infratel and Indus is to acquire, build, own and operate tower and related infrastructure.

CRISIL had assigned a IPO Grade 4/5 to the IPO of Bharti Infratel. This grade indicates that the fundamentals of the Bharti Infratel IPO are 'above average' relative to the other listed equity securities in India. CRISIL assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. However, the IPO had received a weak subscription of 1.30 times on an overall basis chiefly on support from QIB investors. Click here to view PC Jeweller IPO Final Subscription Status

While the share had a grey market discount and also the lack of interest in the issue pushes for a likely listing below issue price, it remains to be seen how much resistance the share throws up to maintain a respectable level closing on the listing day

Thursday, December 27, 2012

PC Jeweller IPO lists at 11 percent premium

December 27, 2012 0
PC Jeweller IPO lists at 11 percent premium
Jewellery Retailer PC Jeweller, which listed on the exchanges today, ended the listing day at a premium of close to 11% over the issue price. The shares under the IPO, which was open for subscription between December 10 to December 12, were offered in a price band of Rs.125/- to Rs.135/- per share with a discount of Rs.5/- to Retail Investors and Employees on the Issue Price

PC Jeweller Ltd is an established jewellery retailer in North India. The company's operations include the manufacture, retail and wholesale of jewellery. PCJ offers a wide range of products including gold jewellery, diamond jewellery and other jewellery including silver articles

On the Bombay Stock Exchange, the share touched an Intra-day High of Rs.154.75 and an Intra-day low of Rs.135.5 before concluding the trade at Rs.149, up nearly 10.4 percent over the Issue Price of Rs.135/- a share. The Total Traded Quantity on BSE was 286.13 Lakh Equity Shares with a weighted average price of Rs.146.64 a share

Eco Friendly Food Processing Park IPO opens today

December 27, 2012 0
Eco Friendly Food Processing Park IPO opens today
Eco Friendly Food Processing Park Ltd (EFFPP), engaged in the operations of agriculture and wood plantation, is coming up with an IPO proposing to list shares on BSE SME.

The following are details of IPO:

Eco Friendly Food Processing Park Ltd (EFFPP) IPO Details:
Issue Size: 3,006,000 Equity Shares of Rs. 10 
Issue opens on: December 27, 2012
Issue closes on: December 31, 2012
Issue Type: Fixed Price Issue IPO
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 25 Per Equity Share
Listing At: BSE SME

Wednesday, December 26, 2012

CARE closes listing day at 23 percent premium

December 26, 2012 0
CARE closes listing day at 23 percent premium
The Equity Shares of CARE Limited, the Indian credit rating agency listed on the exchanges today. These were offered under the IPO at a price of Rs.750/- per share. The share opened in hefty green and touched an Intra-day high of Rs.986.20 on BSE before concluding the listing day at Rs.923.95 (Premium of 23.2 percent over the issue price)

According to BSE website, a total of 48.25 lakh shares were traded on the exchange on the listing day with total traded value amounting to Rs.450.08 Crs. The Wd. Average Price for the day at the BSE was Rs.932.88. Although the share never touched the circuits, the upper circuit limit was set at price of Rs.1,138.80 and lower circuit at Rs.759.25

CARE IPO was open for subscription between Dec 07, 2012 - Dec 11, 2012 and had received overwhelming response from all categories of investors

Click here for CARE IPO Category-wise Final Subscription Status
Click here for CARE IPO - Basis of Allotment

CARE shares to list shares today on December 26

December 26, 2012 0
CARE shares to list shares today on December 26
Credit rating agency Credit Analysis and Research Limited (CARE) will list its equity shares on exchanges today on Wednesday, December 26, 2012. The company had fixed its issue price at Rs.750/- per share.

The IPO had received an overwhelming response with the response from QIB Investors being 45.8 times while non-institutional and retail investors' portion received subscription of 110.96 times and 6.18 times respectively. CARE is one of the leading rating agency in India apart from CRISIL and ICRA.

Stock market analysts are predicting a clear premium listing with opening bell easily above Rs.900/- for the share. While the grey market premium for the share is also up to those levels, it remains to be seen whether the listing would reach or exceed expectations

Tuesday, December 25, 2012

CARE IPO - Basis of Allotment

December 25, 2012 0
CARE IPO - Basis of Allotment

Saturday, December 15, 2012

Bharti Infratel Final Subscription Figures

December 15, 2012 0
Bharti Infratel Final Subscription Figures
Bharti Infratel Limited IPO was finally subscribed 1.30 times despite a rather subdued response from investors. The IPO had received bids for 20,84,92,050 Equity Shares as against 16,05,65,000 Equity Shares offered

The shares were offered in a price band of Rs.210/- to Rs.240/- per equity share with a discount of Rs.10/- per share for Retail Individual Investors and Eligible Employees on the Final Issue Price. Despite this incentive, the Retail Investors were aloof from the issue with the category getting subscribed a relatively tiny 19 percent. The following is the final subscription status of the IPO:


Thursday, December 13, 2012

Bharti Infratel IPO crawls to 1 time subscription on Day 3

December 13, 2012 0
Bharti Infratel IPO crawls to 1 time subscription on Day 3
The IPO of Bharti Infratel Limited has been receiving muted response from investors. The IPO, at the close of Day 3 of its opening, has managed to crawl to 1 time subscription solely due to rescuing support from QIB Category which is subscribed 2.84 times

The IPO has been subscribed 1.21 times on an overall basis at the close of Day 3, December 13, 2012, which is also the closing day for subscription for QIB Investors. The issue will close for subscription on December 14, 2012 for other category of investors. The response from HNI and Retail investors has been fragile with 0.10 times and 0.06 times subscription in each of these categories respectively

The shares under the IPO are offered in a Price Band of Rs.210/- to Rs.240/- a piece with a discount of Rs.10/- on the final issue price for Retail Investors. Despite this incentive, the retail investors have so far and are also expected to away from the IPO

PC Jeweller IPO Final Subscription Figures

December 13, 2012 0
PC Jeweller IPO Final Subscription Figures
PC Jeweller IPO has been subscribed 6.85 times on an overall basis. The IPO was open for subscription between December 10, 2012 and December 12, 2012

The category-wise subscription statistics are as under:


Wednesday, December 12, 2012

Bharti Infratel IPO subscribed 35 percent

December 12, 2012 0
Bharti Infratel IPO subscribed 35 percent
Bharti Infratel IPO, which opened for subscription from yesterday, December 11, 2012, has been subscribed 0.35 times or 35 per cent on an overall basis. The IPO has received bids for 5,59,07,100 Equity Shares according to data available on the NSE website.

The Total Bids Received at Cut-off Price are 18,95,250. The Issue consists of Public offer of 188,900,000 equity shares of Rs.10 each issued in a price band of Rs.210/- to Rs.240/- per equity share with entitlement of discount of Rs.10/- for Retail Investors

Barclays Securities (India) Private Limited, Deutsche Equities India Private Limited, Enam Securities Private Limited, HSBC Securities and Capital Markets (India)Private Limited,Kotak Mahindra Capital Company Limited are the Book Running Lead Managers to the Issue, while BNP Paribas,DBS Bank Ltd,HDFC Bank,ICICI Securities are the Co-Book Running Lead Managers to the Issue

CARE IPO Final Subscription Status

December 12, 2012 0
CARE IPO Final Subscription Status
CARE IPO has been subscribed 41 times on an overall basis. The IPO, which closed today, received overwhelming response on the closing day of the issue.

The IPO received bids for 1,55,62,400 Equity Shares in the Retail Category as against 25,19,895 Equity Shares reserved in the category, thus making the category subscribed 6.18 times. The category-wise final subscription status is as under:


Tuesday, December 11, 2012

CARE IPO subscription blasts its way to 40 times

December 11, 2012 0
CARE IPO subscription blasts its way to 40 times
The subscription figures for CARE IPO has rocketed on the closing day of the issue. The IPO has received bids for a staggering 41 times the size of its issue.

According to data available on the NSE website as on December 11, 2012 2100 hrs IST, the IPO has been subscribed 40.98 times, having received total bids for 25,08,00,220 Equity Shares. The total bids received at cut-off prices is 1,39,91,680 Equity Shares as per NSE website, thus translating into a Retail oversubscription of close to 6 times the shares available in the category.

More than the Retail subscription, it is the subscription in the QIB and HNI categories that has shot up on the closing day of the IPO, which may act as a significant positive for the retail investors. The subscription in the HNI category has already crossed 100 times

Credit Analysis & Research Ltd (CARE) is the second largest full-service credit rating company in India. CARE offers rating and grading services across a diverse range of instruments and industries including IPO grading, equity grading, and grading of various types of enterprises, including shipyards, maritime training institutes, construction companies and rating of real estate projects, among others. The final category-wise subscription status will be updated on Indian IPO Blog. With SEBI's new allotment mechanism in place, it would be interesting to see how the allotment would practically take place. Click here to read more on SEBI's New IPO Allotment mechanism

Bharti Infratel IPO gets 15 percent response on opening day

December 11, 2012 0
Bharti Infratel IPO gets 15 percent response on opening day
Bharti Infratel IPO, which opened for subscription today, has received scant response on the opening day. The IPO has received bids for 2,45,34,650 Equity Shares as against Issue Size of 16,05,65,000 Equity Shares, thus taking the coverage of subscription of IPO at 0.15 times

Total Bids Received at Cut-off Price as per data available on NSE website, are for 7,68,500 Equity Shares. The shares under this issue are offered under a Price Band of Rs.210/- to Rs.240/- per equity share. The IPO would remain open for subscription till December 14, 2012

Bharti Infratel Limited is a provider of tower and related infrastructure. Bharti Infratel is one of the world's largest telecom tower infrastructure providers which deploys, owns and manages telecom towers and communication structures for all wireless operators. The business of Bharti Infratel and Indus is to acquire, build, own and operate tower and related infrastructure. In India, Bharti Infratel has over 34,000+ towers, across 18 states, and 11 Telecom circles, and still growing. Bharti Infratel also has a 42% stake in Indus Towers which was created as a Joint Venture between Bharti Infratel, Vodafone and Aditya Birla Telecom to hive off the Towers business in 15 telecom circles

PC Jeweller IPO covered around 40% till Day 2

December 11, 2012 0
PC Jeweller IPO covered around 40% till Day 2
PC Jeweller IPO, which opened for subscription from yesterday, has been bid around 40% on an overall basis as per data available on NSE website till December 11, 2012 1900 hrs IST

The IPO has received bids for 1,70,46,990 Equity Shares on an overall basis with bids received for 55,82,790 at cut-off price. The issue consists of Public offer of 45,133,500 equity shares of Rs.10 each (including Anchor Portion of 67,16,250 equity shares). The shares are issued in a price band of Rs.125/- to Rs.135/- per equity share with retail investors and eligible employees being entitled to Rs.5/- discount on the issue price

PC Jeweller Ltd is an established jewellery retailer in North India. Company's operations include the manufacture, retail and wholesale of jewellery. PCJ offers a wide range of products including gold jewellery, diamond jewellery and other jewellery including silver articles. The company provides 100% Hallmarked jewellery and Certified Diamond jewellery.

Monday, December 10, 2012

Bharti Infratel IPO - Analysis

December 10, 2012 0
Bharti Infratel IPO - Analysis
Bharti Infratel is entering the capital markets with an IPO of 18.89 crore equity shares of Rs.10 each, comprising of an offer for sale of 4.27 crore shares by 4 PE investors and balance shares consisting of fresh issue. The IPO would open for subscription from December 11, 2012 and would close for subscription for QIB investors on December 13, 2012 and for other investors on December 14, 2012.

The shares are offered in a price band of Rs.210/- to Rs.240/- per equity share. The Retail Investors and eligible employees would be entitled to a discount of Rs.10/- per share

Company Profile:

Bharti Infratel is one of the world's largest telecom tower infrastructure providers which deploys, owns and manages telecom towers and communication structures for all wireless operators. The business of Bharti Infratel and Indus is to acquire, build, own and operate tower and related infrastructure.

Bharti Infratel and Indus currently provide access to their towers primarily to wireless telecommunications service providers. Bharti Infratel's and Indus's three largest customers are Bharti Airtel (together with Bharti Hexacom), Vodafone India and Idea Cellular. They are the three leading wireless telecommunications service providers in India by wireless revenue. Bharti Infratel, having presence in all 22 telecom circle in India, enjoys 23% market share in terms of tenancies, as of March 2012. The promoter of the company is Bharti Airtel


IPO Rating:
CRISIL has assigned a CRISIL IPO Grade "4/5" (pronounced "four on five") to the proposed initial public offer (IPO) of Bharti Infratel Ltd (Bharti Infratel). This grade indicates that the fundamentals of the IPO are ‘above average’ relative to the other listed equity securities in India. CRISIL assigns IPO grading on a scale of IPO Grade 5 to IPO Grade 1, with IPO Grade 5 indicating strong fundamentals and IPO Grade 1 indicating poor fundamentals. According to the grading document from CRISIL, the assigned grade also reflects the strong and stable operating cash flows resulting from long-term contracts.

The company’s robust back-end processes, which ensure higher reliability of network uptime for its clients, support the grade. However, low return on capital employed (RoCE) is a concern. Since tower infrastructure is a business with high operating leverage, RoCE is expected to improve in line with an increase in the tenancy ratio albeit from a lower base. The grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals. The grade is not a recommendation to buy, sell or hold the graded instrument, or a comment on the graded instrument’s future market price or its suitability for a particular investor.


Key Strengths:
  • The company stands to gain from the increase in penetration of voice and data services, which is expected to drive the telecom companies' demand for base transceiver stations (BTS) and additional towers.
  • Bharti Infratel and Indus Towers will benefit from any expansion of the network by India’s leading telcos - Bharti Airtel, Vodafone and Idea Cellular Ltd - as they are the preferred players for passive infrastructure requirements of the three telcos. 
  • Large-scale operations, first-mover advantage and pool sharing arrangement among the top three telcos have resulted in better-than-industry tenancy ratio for Bharti Infratel. It is expected to improve further leading to high operating leverage and improvement in profitability

Risks and Concerns:
  • Tower infrastructure is a business with high operating leverage. Low asset turnover and minimal use of leverage in a capital intensive industry have resulted in low return on equity (RoE) for Bharti Infratel over the past three years, which can increase if the leverage is corrected
  • The overcapacity in the industry is expected to limit the demand for rollout of new towers. Further, regulatory changes and the resultant uncertainty pose a risk to telecom players as their network rollout plans could be hampered.

Concluding Remarks:

The company has sound operating model in place. At the upper band of Price Band of Rs. 210 to Rs. 240 per share, shares are being issued at a PE that is undoubtedly expensive. Such higher price may be justified considering the long term story of the company, but investors may want to exercise caution before jumping into the ship, particularly if they are seeking listing gains, which seem unlikely

CARE IPO subscribed 2.25 times till Day 2

December 10, 2012 0
CARE IPO subscribed 2.25 times till Day 2
CARE IPO has been subscribed 2.25 times on an overall basis till Monday, December 10, 2012 as per data available on the NSE website. The IPO has received bids 1,37,55,080 Equity Shares as against 6,119,746 Net Equity Shares offered. The IPO consists of Public offer of 7,199,700 equity shares of a Face Value of Rs. 10 each.(including Anchor Portion of 1,079,954 equity shares)

The shares are offered under a price band of Rs.700/- to Rs.750/- per equity share with a bid lot of 20 Equity Shares and in multiples thereof. Kotak Mahindra Capital Company Limited, DSP Merrill Lynch Limited, Edelweiss Financial Services Limited, ICICI Securities Limited, IDBI Capital Market Services Limited and SBI Capital Markets Limited are BRLMs to the Issue. The IPO closes on December 11, 2012

The following is the subscription status till Day 2, Monday, December 10, 2012 1700 hrs IST:

CREDIT ANALYSIS AND RESEARCH LIMITED
Sr.No. Category No.of shares offered/reserved No. of shares bid for No. of times of total meant for the category
1 Qualified Institutional Buyers (QIBs) 2519896 8824980 3.50
1(a) Foreign Institutional Investors (FIIs)
7245620
1(b) Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies)
1045860
1(c) Mutual Funds
533500
1(d) Others
0
2 Non Institutional Investors 1079955 414120 0.38
2(a) Corporates
0
2(b) Individuals (Other than RIIs)
0
2(c) Others
6740
3 Retail Individual Investors (RIIs) 2519895 4515980 1.79
3(a) Cut Off
0
3(b) Price Bids
0

Total 6119746 13755080 2.25

PC Jeweller IPO - Bidding Status on Day 1

December 10, 2012 0
PC Jeweller IPO - Bidding Status on Day 1

CARE IPO Fully Subscribed

December 10, 2012 0
CARE IPO Fully Subscribed
CARE IPO, which opened for subscription from Friday, December 7, 2012, has been fully subscribed on second day of its opening.

The IPO consists of Public offer of 7,199,700 equity shares of a face value of Rs. 10 each.(including Anchor Portion of 1,079,954 equity shares) offered in a Price Band of Rs.700/- to Rs.750/- per equity share. Credit Analysis & Research Ltd (CARE) is the second largest full-service credit rating company in India. CARE offers rating and grading services across a diverse range of instruments and industries including IPO grading, equity grading, and grading of various types of enterprises, including shipyards, maritime training institutes, construction companies and rating of real estate projects, etc.

According to data available on NSE website, the IPO is subscribed 1.11 times on an overall basis till 4 PM. Precise subscription figures at the end of Day 2 would be updated here.





Sunday, December 9, 2012

PC Jeweller IPO - Indian IPO Blog Analysis

December 09, 2012 0
PC Jeweller IPO - Indian IPO Blog Analysis
PC Jewellers (PCJ) is coming out with an initial public offering (IPO) of 4.51 crore equity shares with a Face Value of Rs.10 each (including employee reservation of 3.6 Lakh shares). The shares will be offered in a price band of Rs.125/- to Rs.135/- per equity share. The Issue will remain open between December 10, 2012 and December 12, 2012. Retail Investors and Employees of the company will be offered a discount of Rs.5/- per equity share


Company Profile and Promoters:

PC Jeweller Ltd is an established jewellery retailer in North India. Company's operations include the manufacture, retail and wholesale of jewellery. PCJ offers a wide range of products including gold jewellery, diamond jewellery and other jewellery including silver articles. The company provides 100% Hallmarked jewellery and Certified Diamond jewellery. PC Jeweller have 30 showrooms under the "PC Jeweller" brand located across 23 cities in north and central India. Company is planning to expand their showroom network across India by adding 20 more in next two years, including in southern and western parts of India. They have manufacturing facilities at 5 locations. The company is promoted by Balram Garg and Padam Chand Gupta


IPO Rating:

CRISIL has assigned a CRISIL IPO Grade "3/5" (pronounced "three on five") to the proposed initial public offer (IPO) of PC Jeweller Ltd (PCJ). This grade indicates that the fundamentals of the IPO are ‘average’ relative to the other listed equity securities in India. CRISIL assigns IPO grading on a scale of IPO Grade 5 to IPO Grade 1, with IPO Grade 5 indicating strong fundamentals and IPO Grade 1 indicating poor fundamentals. However, this grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals. The grade is not a recommendation to buy, sell or hold the graded instrument, or a comment on the graded instrument’s future market price or its suitability for a particular investor

According to the grading report, the assigned grade reflects its seven-year-old presence and the ensuing strong reputation in an industry quintessentially benefited by the country’s obsession for gold. Strong brand recall, successful branch expansion (from one to 30 showrooms in the past seven years) and stellar increase in gold prices have added shine to PCJ’s top line, which has grown at a three-year CAGR of 69%.

However, competition in the jewellery retailing market - likely to intensify following planned expansions by regional/traditional players - poses a significant risk



Key Strengths:
  • Compared with other gold jewellery players, PCJ’s revenue mix leans towards higher-margin diamond jewellery
  • The organised players account for approximately 16-18% share (including the regional players) of the Indian jewellery industry. The low penetration presents a good growth opportunity for a player like PCJ on account of the rising disposable incomes, which are likely to fuel the growth of jewellery consumption in the country
  • The operating profit grew at a CAGR of 96.3% in the last 4-5 years from around Rs.20 crore in FY2008 to Rs.330 crore in FY2012. The operating profit margin of the company at approximately 11%, is respectable enough when compared with peers. The Net Profit Margin stands at around 7.7% which also is one of highest amongst peers

Risks:
  • The company generates a major portion of its domestic sales from its showrooms in Delhi 
  • PCJ’s plans to add 20 showrooms by FY14 across India should mitigate the risk of regional concentration but the opening of new stores in a competitive market is likely to put pressure on profitability due to higher marketing expenses and working capital requirement. 
  • Moreover, the compensation structure for key management personnel appears low, which can lead to attrition.
  • Uncertain macro environment may put pressure on sales. The jewellery segment is discretionary in nature and is a luxury item. The current uncertain macro economic environment may drag on the company’s performance for the near term.

Remarks:

The share offered at roughly 7-8 times PE multiple, which is neighter generous nor blown out of proportions. Though participating in the IPO may be apt, however, investors may not be willing to go full throttle on the IPO

Friday, December 7, 2012

CARE IPO Subscription Status on first day

December 07, 2012 0
CARE IPO Subscription Status on first day

CARE IPO, which opened for subscription from today, has received quiet response on opening day, with the IPO getting subscribed about 9% on an overall basis

The following is the subscription position of the IPO on Day 1:



Thursday, December 6, 2012

New IPO Allotment Process explained

December 06, 2012 0
New IPO Allotment Process explained
SEBI has come out with new allotment process for IPOs, which will incorporate a mechanism. Here's an attempt to understand the new mechanism of IPO allotment through an illustration:

For our exercise, let us assume the total number of specified securities (read equity shares) on offer to be 1 crore specified securities. Let's say these securities are on offer at Rs.600/- a share. Thus, specified securities on offer for Retail Individual Investors category would translate to 35,00,000 specified securities. Let's add that the issuer decides to fix the minimum application / bid size as 20 specified securities (falling within the range of Rs. 10,000 - Rs. 15,000). Application can therefore, be made for a minimum of 20 specified securities and in multiples thereof.

Let's further assume that the issue is over-subscribed 2.5 times whereas the Retail Individual Investors’ category is oversubscribed 4 times. Assume that a total of 100,000 Retail Individual Investors have applied in the issue, in varying number of bid lots i.e. between 1 – 16 bid lots, based on the maximum application size of upto Rs. 2,00,000 (i.e. Bid Lot 1 is for 20 shares, Bid Lot 2 for 40 shares, Bid Lot 3 for 60 shares and so on till Bid Lot 16 which will translate to 320 shares)

Out of the 100,000 Retail Individual Investors, let's say there are five retail individual investors A, B, C, D and E who have applied as follows:
  • A has applied for 320 specified securities
  • B has applied for 220 specified securities
  • C has applied for 120 specified securities
  • D has applied for 60 specified securities and 
  • E has applied for 20 specified securities
Now, as per allotment procedure, the allotment to retail individual investors shall not be less than the minimum bid lot, subject to availability of shares, and the remaining available shares, if any, shall be allotted on a proportionate basis

The actual entitlement for allotment, thus, shall be as follows:


Okay. Now, in the above example, we assumed an overall over-subscription of 2.5 times and retail over-subscription of 4 times. But what happens if subscription if higher? Let's find out:

This time around, let's keep total no. of specified securities on offer (at Rs. 600 per share) unchanged at 1 crore specified securities. Specified securities on offer for Retail Individual Investors’ category therefore would be again: 35 lakh specified securities. Issuer decides to fix the minimum application / bid size as 20 specified securities (falling within the range of Rs. 10,000 - Rs. 15,000). Application can be made for a minimum of 20 specified securities and in multiples thereof

Let's now assume the issue is over subscribed 7 times whereas the Retail Individual Investors’ category is over subscribed 9.37 times.

Assume that a total of 200,000 Retail Individual Investors have applied in the issue, in varying number of bid lots i.e. between 1 – 16 bid lots (i.e. 16th lot at Rs.192,000 since the maximum application size of upto Rs.2,00,000)

Again, as per allotment procedure, the allotment to retail individual investors shall not be less than the minimum bid lot, subject to availability of shares, and the remaining available shares, if any, shall be allotted on a proportionate basis

Now since the total number of shares on offer to retail individual investors is 35,00,000 and the minimum bid lot is 20 shares, the maximum no. of investors who can be allotted this minimum bid
lot will be 1,75,000.

In other words,
  • 1,75,000 Retail Investors will get the Minimum Bid Lot and  
  • Remaining 25,000 retail applicants will not get allotment

The allotment in this case will be as follows:



Wednesday, December 5, 2012

CARE IPO - Analysis and Insight

December 05, 2012 0
CARE IPO - Analysis and Insight
Credit Analysis & Research Ltd. (CARE), the second largest full-service credit rating company in India, is coming up with an Initial Public Offering (IPO) consisting of 7,199,700 Equity Shares of Rs.10/- each for cash in a price band of Rs.700/- to Rs.750/- per equity share. Applications can be made in a bid lot of 20 Equity Shares and in multiples thereof, translating into minimum application size of Rs.15,000/-. The Equity shares are proposed to be listed on both BSE and NSE

Company Profile and Promoter Background:

CARE offers rating and grading services across a diverse range of instruments and industries including IPO grading, equity grading, and grading of various types of enterprises, including shipyards, maritime training institutes, construction companies and rating of real estate projects, among others. They also provide general and customized industry research reports.

The Company as such, has no promoter, domestic banks and financial institutions being the chief stakeholders. IDBI Bank, Canara Bank, SBI are amongst CARE's current shareholders. Post IPO, IDBI Bank will continue to be the largest shareholder retaining 17.2% stake in the company


IPO Grading:

CARE itself is the top rating agency of IPOs in India, having graded the largest number of IPOs since the introduction of IPO grading in India. CARE Ratings has completed over 19069 rating assignments having aggregate value of about Rs. 44051 Billion (as of September 30, 2012), since its inception in April 1993. As such, none of the rating companies including CRISIL, ICRA, Fitch, Brickworks would be rating the Initial Public Offer of CARE, which goes on air from Friday, December 7, 2012. The IPO is exempted from credit rating


Strengths and Positives:
  • The company gets most of its revenue from the ratings business, which is clearly a high margin business. This coupled with debt free and cash rich status of the company, translates into a concrete strength for the company
  • The Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) margin for the half-year ended September is 69%, comparing very well to listed peers with ICRA at 32.9% and CRISIL at 31.7%. CARE's Return on Equity also was 30.7% in FY12, clearly better than ICRAs 16%, though lower than CRISIL's 42%
  • The Company has a low-cost back-office in Ahmedabad, which helps it restrict its employee costs to less than 25% of its sales, compared with nearly 50% as in the case of CRISIL and ICRA
  • If an estimated Rs.100 Crore of Net Profit for FY 2013, translating to EPS of about Rs.35. Thus, the shares under IPO are offered in a relatively attractive prospective PE of about 20-22 times

Significant Risks:
  • For the year ended March, 86.4% of its revenue came from ratings. Thus, the mainstream revenue come from concentrated pocket. If banks decide to rate their loans internally, which the RBI may allow them to do so in future, it may impact CARE Ratings significantly
  • The company is planning to emulate its listed peers by expanding and diversifying its business into research wings, which may take time to materialize

Overall Comments:
The strengths of the company clearly outweigh the risks involved. The quality of financials coupled with relatively attractive pricing offers a very strong reason to go for the IPO

Tuesday, December 4, 2012

Veto Switchgears IPO subscribed 70 percent till second day

December 04, 2012 0
Veto Switchgears IPO subscribed 70 percent till second day
The SME IPO of Veto Switchgears and Cables Ltd., which has gone on air from December 3, 2012, has received 70% subscription so far till Day 2 on an overall basis.

Veto Switchgears and Cables Ltd is an ISO 9001:2008 certified company, engaged in the manufacture and sale of wires & cables and electrical accessories in India. Veto Switchgears product portfolio ranges from industrial cables, stand cables to telephone & co-axial wires, from general switches to modular switches, from ceiling fans to rechargeable fans, compact fluorescent lamps and other electrical accessories.

The IPO has received a CRISIL SME fundamental grade of "SME 4/5" (SME Four on Five) to the proposed IPO of the Company. The grade indicates that the fundamentals of the Company are superior compared to other SMEs in India. The IPO would remain open for subscription till December 5, 2012

Bharti Infratel IPO Rating from CRISIL

December 04, 2012 0
Bharti Infratel IPO Rating from CRISIL
Credit Rating Agency CRISIL has rated the upcoming IPO of Bharti Infratel Limited with an IPO Grade 4/5 (Pronounced Grade Four out of Five)

This grade indicates that the fundamentals of the Bharti Infratel IPO are 'above average' relative to the other listed equity securities in India. CRISIL assigns IPO grading on a scale of IPO Grade 1 to IPO Grade 5, with IPO Grade 5 indicating strong fundamentals and IPO Grade 1 indicating poor fundamentals. This grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals. The grade is not a recommendation to buy, sell or hold the graded instrument, or a comment on the graded instrument's future market price or its suitability for a particular investor.

Bharti Infratel is one of the world's largest telecom tower infrastructure providers which deploys, owns and manages telecom towers and communication structures for all wireless operators. The business of Bharti Infratel and Indus is to acquire, build, own and operate tower and related infrastructure. The company is promoted by Bharti Airtel Limited

Monday, December 3, 2012

CARE IPO Exempted from IPO rating

December 03, 2012 0
CARE IPO Exempted from IPO rating
The IPO of Credit Analysis & Research Ltd (CARE), the second largest full-service credit rating company in India, will be exempted from obtaining credit rating for its IPO, being a credit rating agency itself.

CARE itself is the top rating agency of IPOs in India, having graded the largest number of IPOs since the introduction of IPO grading in India. CARE Ratings has completed over 19069 rating assignments having aggregate value of about Rs. 44051 Billion (as of September 30, 2012), since its inception in April 1993. As such, none of the rating companies including CRISIL, ICRA, Fitch, Brickworks would be rating the Initial Public Offer of CARE, which goes on air from Friday, December 7, 2012.

The shares under the IPO would be offered in a Price Band of Rs.700/- to Rs.750/- per share. The applications can be made in a bid lot of 20 Equity Shares and in multiples thereof. The IPO would remain open for subscription till Tuesday, December 11, 2012

Sunday, December 2, 2012

Bharti Infratel IPO - Retail Investors to get discount

December 02, 2012 1
Bharti Infratel IPO - Retail Investors to get discount
Retail Individual Investors would be entitled to a discount in the upcoming Initial Public Offer of Bharti Infratel from the Bharti Group. The price band for the IPO is fixed at Rs.210/- to Rs.240/- per equity share. The IPO would run between December 11, 2012 and December 14, 2012

Bharti Infratel Ltd. is expected raise as much as Rs.4,530 crore through the divestment of a 10% stake. According to Bloomberg, the largest IPO prior to this was of state-run Coal India Ltd, which raised some $3.5 billion in October 2010. Bharti Infratel is a provider of tower and related infrastructure. Bharti Infratel and Indus currently provide access to their towers primarily to wireless telecommunications service providers. Bharti Infratel's and Indus's three largest customers are Bharti Airtel (together with Bharti Hexacom), Vodafone India and Idea Cellular

The discount would be 5% on the final issue price subject to Rs.10 per equity share. In India, Bharti Infratel has over 34,000+ towers, across 18 states, and 11 Telecom circles

Saturday, December 1, 2012

Bharti Infratel IPO to be the biggest in two years

December 01, 2012 0
Bharti Infratel IPO to be the biggest in two years
Sunil Mittal promoted Bharti Group will come up with an Initial Public Offering (IPO) next week which is set to become the biggest IPO in last two years. Bharti Infratel Ltd. is expected raise as much as Rs.4,530 crore through the divestment of a 10% stake. According to Bloomberg, the largest IPO prior to this was of state-run Coal India Ltd, which raised some $3.5 billion in October 2010

Currently, Temasek Holdings Pte. Ltd, Goldman Sachs, Citigroup Inc., KKR and Co. are major holders in the company. The MD of the Company Akhil Gupta believes the IPO would hit the streets at the right time. “The timing is perfect for a number of reasons,” said he adding “We are not a start-up dotcom company. We have a perfect business model with predictable revenues and globally comparable size.”

Bharti Infratel IPO would entail offer of 189 million shares in a price band of Rs.210/- to Rs.240/- each. The IPO would be open between December 11, 2012 and December 14, 2012.  Credit Rating Agency CRISIL has assigned a rating of IPO Grade 4/5 [IPO Grade 4 out of 5] to the issue indicating that the fundamentals of the company are above average compared with other listed companies in India

Bharti Infratel IPO Price Band announced

December 01, 2012 0
Bharti Infratel IPO Price Band announced
The price band for the upcoming IPO of Bharti Infratel has been declared. The shares will be offered in a price band of Rs.210/- to Rs.240/- a piece. Bharti Infratel is one of the world's largest telecom tower infrastructure providers which deploys, owns and manages telecom towers and communication structures for all wireless operators

The promoter of the company is Bharti Airtel Limited. The Issue Size of the IPO would be Rs.3966 to Rs.4533 Crores for shares having a Face Value of Rs.10 each. The IPO would remain open for subscription between December 11, 2012 and December 14, 2012. Besides general corporate purposes, the following are the objects of the issue:
  • Installation of 4,813 new towers;
  • Upgradation and replacement on existing towers; and
  • Green initiatives at tower sites;

Friday, November 30, 2012

CARE IPO Price Band Announced

November 30, 2012 1
CARE IPO Price Band Announced
The Price Band for the IPO of CARE has been announced at Rs.700/- to Rs.750/- per equity share. Credit Analysis & Research Ltd (CARE) is the second largest full service credit rating company in India.

CARE offers rating and grading services across a diverse range of instruments and industries including IPO grading, equity grading, and grading of various types of enterprises, including shipyards, maritime training institutes, construction companies and rating of real estate projects, among others. They also provide general and customized industry research reports.

CARE IPO would remain open for subscription between December 7, 2012 and December 11, 2012. CARE Ratings has completed more than 19000 rating assignments and is the leading credit rating agency in India for IPO grading having graded the largest number of IPOs since the introduction of IPO grading in India.

Thursday, November 29, 2012

Upcoming IPOs in December 2012

November 29, 2012 0
Upcoming IPOs in December 2012
The primary markets in India are expected to get a perk up and kick-start again with some of most anticipated names expected to enter the capital markets in December 2012. Here's a look at some of the IPOs expected to hit the streets in coming month:

1. Veto Switchgears IPO
The company is a manufacturer and seller of wires, cables and electrical accessories, has a diversified product basket, which includes around 20 product categories. The IPO would be open for subscription between December 3, 2012 and December 5, 2012. The price band would be Rs.48/- to Rs.50/- per equity share

2. CARE IPO
Credit Analysis & Research Ltd (CARE) is a second largest full service credit rating company in India. The company offers rating and grading services across a diverse range of instruments and industries including IPO grading, equity grading, and grading of various types of enterprises, including shipyards, maritime training institutes, construction companies and rating of real estate projects, among others. The IPO would be open for subscription between December 7, 2012 and December 11, 2012

3. Bharti Infratel IPO
Bharti Infratel Limited, one of the largest tower infrastructure providers in India, based on the number of towers that Bharti Infratel owns and operates, is a provider of tower and related infrastructure. Bharti Infratel deploys, owns and manages telecom towers and communication structures for all wireless operators. The IPO would be open for subscription between December 10, 2012 and December 14, 2012

4. PC Jewellers IPO
PC Jeweller Ltd is an established jewellery retailer in North India. Company's operations include the manufacture, retail and wholesale of jewellery. PCJ offers a wide range of products including gold jewellery, diamond jewellery and other jewellery including silver articles. The Delhi-based jeweler currently has 20 stores, the brand has many showrooms in 8 states of India. The IPO would be open for subscription between December 10, 2012 and December 12, 2012

Sunday, November 25, 2012

Tara Jewels IPO finally subscribed 2 times

November 25, 2012 0
Tara Jewels IPO finally subscribed 2 times
The IPO of jewellery manufacturer Tara Jewels Limited, which closed for subscription on Friday, November 23, 2012, was finally subscribed 1.98 times on an overall basis

The IPO got subscriptions in various categories as under:
QIB: 1.49 times
HNI: 3.10 times
Retail: 2.05 times
Employees: 0.14 times
Overall: 1.98 times

Tara Jewels Limited is engaged in the business of jewellery manufacturing, export and retailing. Tara Jewels is among the top India based Jewel exporter to global markets. For the year ended 31-3-2012, the company had a PAT of Rs.52.37 Crores as against a topline of Rs.1,281.43 Crores. Check back Indian IPO Blog for more on Tara Jewels IPO! 

Wednesday, November 21, 2012

Tara Jewels gets response from only Retail Investors on opening day

November 21, 2012 0
Tara Jewels gets response from only Retail Investors on opening day
Tara Jewels IPO, which opened for subscription today, has received response from only the retail individual investors with the issue getting subscribed 0.04 times or 5% on an overall basis on the opening day

The IPO under which equity shares are offered in a price band of Rs.225/- to Rs.230/- an equity share, has been rated with an IPO Grade 3/5 by credit rating agency CARE. This means as per CARE, company has 'Average Fundamentals'. CARE assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals.

The issue remained unsubscribed in QIB, HNI and Employees categories on the opening day. The IPO would remain open for subscription till Friday, November 23, 2012

Tara Jewels IPO opens for subscription today

November 21, 2012 0
Tara Jewels IPO opens for subscription today
The IPO of Tara Jewels is set to hit the capital market today from Wednesday, November 21, 2012. The Equity shares under the IPO would be offered with a price band of Rs.225/- to Rs.230/- per equity share

Tara Jewels Limited is engaged in the business of jewellery manufacturing, export and retailing. Tara Jewels is among the top India based Jewel exporter to global markets. The products of Tara Jewels include fashion, bridal and handmade bespoke jewellery. Tara Jewels has 4 manufacturing units; 3 in India and 1 in China. Company has over 1800 employees

CARE has assigned an IPO Grade 3 to Tara Jewels Ltd IPO. This means as per CARE, company has 'Average Fundamentals'. CARE assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals

The details of the IPO are as under:

Tara Jewels IPO Details:
Issue Size: 7,977,778 Equity Shares of Rs. 10 each
Issue opens on: Nov 21, 2012
Issue closes on: Nov 23, 2012
Price Band: Rs.225/- to Rs.230/- per equity share
Bid Lot: 50 Equity Shares and in multiple shares
Listing At: BSE, NSE

Sunday, November 18, 2012

Tara Jewels IPO Details

November 18, 2012 0
Tara Jewels IPO Details
Issue Size: 7,977,778 Equity Shares of Rs. 10 each

Issue opens on: Nov 21, 2012
Issue closes on: Nov 23, 2012
Price Band: Rs.225/- to Rs.230/- per equity share
Bid Lot: 50 Equity Shares and in multiple shares
Listing At: BSE, NSE

Friday, October 19, 2012

Bronze infra-tech Ltd IPO Details

October 19, 2012 0
Bronze infra-tech Ltd IPO Details
Issue Size: 5,704,000 Equity Shares of Rs. 10
Issue opens on: Oct 19, 2012
Issue closes on: Oct 23, 2012
Issue Type: Fixed Price Issue IPO
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 15 Per Equity Share
Market Lot: 8000 Shares
Listing on: BSE SME

Saturday, October 13, 2012

RINL deferment sends out wrong signals from Government

October 13, 2012 0
RINL deferment sends out wrong signals from Government
The Government has once again gone down the wrong lane after taking the initial step. The IPO of Rastriya Ispat Nigam Limited (RINL) which was earlier expected to open from October 15, 2012 has been postponed for the third time now. Giving its reasoning for the deferral, the steel ministry said, "We will not sell RINL below book value". Currently, the book value of the PSU firm is pegged at Rs 22.52 a share. Sources close to the development said merchant bankers UBS Securities and Deutsche Equities (India) have proposed Rs 15-17 as the price band. In a statement to the media, the Government said press conference for the announcement has been postponed due to “unavoidable circumstances”

RINL is the second largest state-owned steel maker in the country producing three million tonnes per annum (mtpa) at its lone facility at Visakhapatnam. The capacity is being raised to 6.3 mtpa in the current fiscal. The government plans to sell 10 per cent of its stake. The issue was previously deferred twice since the filing of the draft prospectus with market regulator Sebi on May 18 due to reasons as varied as volatile market conditions and fire at the company's Vizag steel-making facility.

While the conditions of the market may not be perfectly ripe for IPOs, but deferring IPOs repeatedly the way the Government is doing, may only send out wrong signals. The department of heavy industries is still also not on board for the BHEL OFS and it is very likely that this may be deferred as well. Still more, the finance ministry is also likely to bring the National Fertiliser, RCF, EIL issues for cabinet approval in a bid to meet the Rs 30,000 crore divestment target. With such ambitions of divestment targets, it is only right to say that the Government should realize that no lunch is free and if it were to successfully clear IPOs, pricing issues attractively may be the only way out

Sunday, September 23, 2012

RCL Retail IPO opens from September 27, 2012

September 23, 2012 0
RCL Retail IPO opens from September 27, 2012
Chennai-based ready-to-eat food retailer RCL Retail is planning to enter capital market with a Public Issue of 57.95 Lakh Equity Shares on September 27, 2012. The issue comprised of promoter's contribution of 21.05 lakh shares and 6.15 lakh shares, which will be reserved for subscription by market makers. Net issue to the public is of 30.75 lakh shares. The issue will close on October 01, 2012.

RCL Retail 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 etc.

Stay tuned for more on RCL Retail IPO!

Saturday, September 22, 2012

Indian Bank may raise capital through FPO

September 22, 2012 0
Indian Bank may raise capital through FPO
Indian Bank may come out with a follow-on public offer (FPO) next fiscal if market conditions improve, a top official said. "We do not require capital immediately...we may go in for FPO in the next fiscal (2013-14)," the state-owned bank's Chairman and Managing Director T M Bhasin told PTI.

Talking about overseas expansion plan, Bhasin said the bank plans to open a branch in Hong Kong. The bank has already sought regulatory permissions for opening its office in Hong Kong.

Indian Bank has three foreign branches at Singapore and Colombo and Jaffna in Sri Lanka.

Friday, September 21, 2012

CRISIL: Higher IPO graded companies enjoy better valuation

September 21, 2012 0
CRISIL: Higher IPO graded companies enjoy better valuation
Companies with higher IPO grades command superior valuation driven by stronger fundamentals, a study by Crisil shows.

"For the period under review (May 2007 - June 2012), these companies weathered the business cycles (global meltdown in 2008-2009, followed by a slowdown during 2011-2012) better on the back of robust business fundamentals, superior management strength and good governance practices," it said.

Since all these parameters are taken into account in the IPO grading process, it said, this finding is a reflection of the effectiveness of the grading methodology.

Companies with an IPO grade of 5/5 (indicating strong fundamentals relative to other listed securities in India) enjoyed a higher P/B than companies with IPO grades of 1/5 and 2/5, respectively, it said.

Thursday, September 20, 2012

Government may sell stake in NTPC

September 20, 2012 0
Government may sell stake in NTPC
The Finance Ministry has proposed a 9.5% stake sale in NTPC, reports CNBC-TV18. There is a strong possibility that NTPC stake sale disinvestment may happen in tranches and sources add that this is very much part of the CCEA note. The route that has been identified for this disinvestment is the offer for sale.

NTPC Limited (formerly National Thermal Power Corporation) is the largest Indian state-owned electric utilities company based in New Delhi, India. It is listed in Forbes Global 2000 for 2011 ranked it 348th in the world. It is an Indian public sector company listed on the Bombay Stock Exchange. With a current generating capacity of 39,174 MW, NTPC has embarked on plans to become a 75,000 MW company by 2017.

The company was founded on 7 November 1975. On May 21 2010, NTPCL was conferred Maharatna status by the Union Government of India.

Wednesday, September 19, 2012

Bharti Infratel may come up with IPO

September 19, 2012 0
Bharti Infratel may come up with IPO
Bharti Airtel's mobile phone tower unit Bharti Infratel Limited has filed a draft prospectus with the capital markets regulator for an Initial Public Offering that aims to raise nearly $1 billion

Bharti Infratel is a leading telecom passive infrastructures provider company in India. The issue constitutes a fresh issue of equity shares by Bharti Infratel and an offer for sale (OFS) portion by Compassvale Investments Pte Ltd, GS Strategic Investments Limited, Anadale Limited and Nomura Asia Investment (IB) Pte. Ltd," according to a release sent to exchanges.

Bharti Airtel said the committee of directors of the company has decided not to participate in the offer for sale of equity shares in the proposed issue of its subsidiary.

GB Tools files IPO docs with SEBI

September 19, 2012 0
GB Tools files IPO docs with SEBI
G B Tools & Forgings has filed documents with market regulator Sebi to raise about Rs.40 crore through the initial public offering (IPO) route.

The company engaged in the business of manufacturing and export of drop forge hand tools and allied forging products. The company said proceeds of the issue would be used for expansion and modernisation of its existing hand tool manufacturing facility at Jalandhar that needs Rs 32.17 crore funds, and general corporate purpose. It also proposes to consider a pre-IPO placement of up to Rs 10 crore with certain investors.

Check back Indian IPO Blog for more on G B Tools & Forgings IPO!

Rastriya Ispat Nigam IPO to hit the streets soon

September 19, 2012 0
Rastriya Ispat Nigam IPO to hit the streets soon
The Initial Public Offering (IPO) of Rashtriya Ispat Nigam (RINL) is likely to hit the market in third week of October, most probably on October 16. The issue price would be finalised at a meeting of the Empowered Group of Ministers (EGoM), likely on October 8, and be made public the next day

Rashtriya Ispat Nigam Limited (RINL), also known as Vizag Steel, is an Indian government-owned steel producer. Based in Visakhapatnam, RINL has been awarded the Navaratna status, with accompanying autonomy of operations, due to its strong financial performance.

Stay tuned for more on Rashtriya Ispat Nigam Limited (RINL) IPO!

Anshu's Clothing Limited IPO Details

September 19, 2012 0
Anshu's Clothing Limited IPO Details
Issue Size: 1,872,000 Equity Shares of Rs. 10
Issue Opens on: September 26, 2012
Issue Closes on: September 28, 2012
Issue Type: Fixed Price Issue IPO
Issue Price: Rs. 27 Per Equity Share
Listing At: BSE SME

Tuesday, September 11, 2012

SRG Housing Finance closes listing day in green

September 11, 2012 0
SRG Housing Finance closes listing day in green
Shares of SRG Housing Finance rose 1.5% to close at Rs 20.30 on listing day after hitting an intraday high of Rs.20.35 on the BSE SME platform.

SRG Housing Finance is primarily engaged in the business of providing housing finance for home ownership. The company raised Rs 7 crore through the issue of 35.04 lakh equity shares of face value of Rs.10 each, which was open for subscription during August 22-28

Monday, August 20, 2012

SEBI IPO Reforms: Price Band to be announced early

August 20, 2012 0
SEBI IPO Reforms: Price Band to be announced early

The market regulator SEBI has said that the company issuing IPOs must announce the price band of the issue at least five working days before the issue opens

Currently, the price band could be announced two working days before the IPO opened. This often left very less time in the hands of investor to analyse and arrive at an informed decision. The move by SEBI is aimed at enabling the investor to take an informed call on whether the price is fair and improve the quality of investor decision making

The price band is the price range within which the company will offer the shares under the IPO. Under the regulations, the spread or the difference between the floor and the cap of the price band cannot be more than 20%. In other words, it means that the cap should not be more than 120% of the floor price

Sunday, August 19, 2012

SRG Housing Finance Limited IPO Information

August 19, 2012 0
SRG Housing Finance Limited IPO Information
Issue Size: 3,504,000 Equity Shares of Rs.10/- each 

Issue Type: Fixed Price Issue IPO 

Issue opens on: August 22, 2012
Issue closes on: August 24, 2012 


Face Value: Rs.10/- per equity share Issue Price: Rs.20/- per equity share
Bid Lot: 6000 Equity Shares

Listing At: BSE SME

SEBI IPO Reforms: e-IPOs

August 19, 2012 0
SEBI IPO Reforms: e-IPOs
The Securities and Exchange Board of India (SEBI) has introduced a number of sweeping changes by way of reforms that promise to revive primary markets and boost investor interest. Here's an insight into e-IPOs


Currently, IPOs are marketed through merchant bankers or syndicate members. Applications can be made only through these syndicate members. An ASBA Investor can visit an ASBA Bank branch and deposit IPO application under the current system.

To enhance retail participation in IPOs, SEBI plans to introduce electronic IPOs by utilizing broker terminal networks. The idea under e-IPO is to enable every single terminal of every registered broker of BSE and NSE to be able to accept application.

“We are talking to the RBI and Indian Banks’ Association to make ASBA available in all bank branches under the core banking system,” U. K. Sinha, Chairman, SEBI has said. Moreover, Brokers will be remunerated by issuer companies for using this mode

If gone as planned, electronic IPOs or e-IPOs can prove to be a real boon particularly in terms of accessibility as it has the potential take IPOs even to smaller towns and cities - wherever a terminal exists. Plus, if ASBA is made compulsory for all branches, then it can further enhance the reach of IPOs since in such case, the investor will only have to walk in to the nearest bank branch and deposit his IPO application

Saturday, August 18, 2012

SEBI IPO Reforms: Safety net under consideration

August 18, 2012 0
SEBI IPO Reforms: Safety net under consideration
The Securities Exchange Board of India (SEBI) had earlier announced a list of reforms aimed at boosting primary market, the mutual fund industry and retail participation in the market. Of all the items on the agenda, the market regulator has not yet approved the issue of a safety net for retail participants in an IPO.

Under a safety net mechanism, certain portion of the investment made by retail shareholders could be guaranteed for a fixed period against market volatility. This concept was introduced to encourage more retail participation on initial public offers, especially at a time when investment sentiment is low in the country.

As per the proposed mechanism, a certain portion of the investment made by retail shareholders in the IPOs could be guaranteed for a fixed period, which could of six months, even if the shares' value plunge below the IPO allotment price during this time.

 This 'safety net' mechanism is being considered only for the small retail investors, who would be compensated by the promoters and other entities selling shares through IPOs in the event of the company's shares plunging below a certain threshold limit within six months of listing or the time frame set by Sebi,


Chairman UK Sinha today said that this concept required more consultation, and has therefore invited the public to voice their views on the idea of a safety net.

SEBI expected to introduce more reforms: FM

August 18, 2012 0
SEBI expected to introduce more reforms: FM
Finance Minister P Chidambaram has said regulator SEBI is expected to announce fresh market reform measures next month

Expressing satisfaction over wide-ranging reforms announced by Securities and Exchange Board of India (Sebi) yesterday for mutual funds and other segments, Chidambaram said he has requested SEBI Chairman U K Sinha to look into a number of other suggestions for the benefit of investors.

'The examination by the Government and Sebi is likely to be completed in the next two weeks. I have requested Sebi Chairman to schedule another meeting of the (Sebi) Board in early September when some more decisions can be taken on the suggestions that are under examination,' he said.

The Finance Minister said the measures announced by SEBI yesterday 'will stimulate financial savings among households as well as give a fillip to the mutual fund industry. More and more households should be encouraged to save in financial instruments rather than in gold'.

In wide-ranging changes to its various regulations, SEBI made it easier and more cost effective to invest and raise funds through IPOs, while allowing the Mutual Funds ( MFs) flexibility in using their fund expense charges and proposing a national mutual fund policy.

Besides, SEBI has also made provisions for retail investors getting an assured minimum lot of shares in IPOs (Initial Public Offers) and asked the companies to announce their price band at least five days in advance of the issue

Thursday, August 16, 2012

SEBI's New IPO Norms at a glance

August 16, 2012 0
SEBI's New IPO Norms at a glance
SEBI has been up in the arms to boost investor interest and revive the Indian primary markets. With the said view, it has come up with a number of reforms in the IPO market, following being the key regulations introduced:

  • e-IPO facility to be available at 1,000 points initially 
  • All IPO applicants must get minimum allocation of shares 
  • Price band to be disclosed 5 days before IPO opens
  • Minimum IPO application limit band hiked to Rs.10,000-15,000
  • No need to file new DRHP if issue size changes up to 20%
  • Compulsory book build issue to have 75% for QIBs
  • Non-retail investors cannot cut, withdraw IPO bid, but can enhance IPO bid price, size
  • Funds raised for General Corporate purpose to be capped at 25% of IPO
  • Minimum profit norm for IPOs pegged at Rs.15 crore

SEBI approves norms for e-IPOs

August 16, 2012 0
SEBI approves norms for e-IPOs
The Securities and Exchange Board of India (Sebi) board has approved a wide range of comprehensive reforms to revamp the primary markets. The reforms include norms for e-IPOs as well

Addressing the press, Sebi Chairman UK Sinha said that the market regulator will ensure a minimum lot of shares for retail investors in IPOs and approves e-IPO procedure for electronic bidding in public offers.

SEBI has been quite active, of late, as far as the reforms in primary market is concerned and e-IPOs is one more step in that direction. It is hoped that the steps would revive the poor interest of investors in the Indian primary markets

Wednesday, August 15, 2012

SEBI to hold discussions on e-IPOs

August 15, 2012 0
SEBI to hold discussions on e-IPOs
The Securities Exchange Board of India will meet on Thursday to decide on a wide range of reforms for the primary market including e-IPOs.

The arrangement under the proposal for electronic initial public offers that would save investors the trouble of bothering with paperwork. Some other changes are also anticipated to streamline the eligibility criteria for companies coming up with an IPO

The Security and Exchange Board of India (SEBI) would soon initiate actions for reforms in IPO market, SEBI Member Rajeev Agrawal had said earlier according to Moneycontrol.com. "Our objective is to ensure good quality of IPOs as well as rational pricing of the IPOs. For this purpose, we are going to introduce several actions in coming days," he had said.

"It is important to take actions to create awareness among people about the market as well as risk involved in the market simultaneously. We have good resources in persons in the country to create awareness programmes," he added

Jointeca Education Solutions IPO opens for subscription

August 15, 2012 0
Jointeca Education Solutions IPO opens for subscription
Jointeca Education Solutions Ltd is an ISO 9001:2008 certified company and provides a range of IT solutions for business in areas of Enterprise Application Solutions and Integrated IT Solutions. Jointeca Education Solutions Ltd's products as GuruSeva in education, Restro in restaurant and Prosav in investment field are designed according to the global market. Jointeca offers educational ERP solutions through its product GuruSeva and its business is concentrated mainly in the Northern Region of India.

The company is coming up with an IPO of 3,568,700 Equity Shares of Rs.10/- each. The shares will be offered at a Fixed Issue Price of Rs.15/- per share. The IPO would remain open for subscription between August 16, 2012 and August 21, 2012

The objects of the issue are:
1. To expand product Guruseva (Educational ERP solution) under BOOT Model through cloud computing solutions;
2. To establish and expand infrastructure for B2B educational portal www.shiklo.in;
3. To meet the promotion and branding expenses for setting up robust sales network for products

Stay tuned for more on Jointeca Education Solutions IPO

Tuesday, August 7, 2012

SEBI to initiate IPO reforms to ensure good quality

August 07, 2012 0
SEBI to initiate IPO reforms to ensure good quality
The Security and Exchange Board of India (SEBI) would soon initiate actions for reforms in IPO market, SEBI Member Rajeev Agrawal said according to Moneycontrol.com. "Our objective is to ensure good quality of IPOs as well as rational pricing of the IPOs. For this purpose, we are going to introduce several actions in coming days," he said.

"It is important to take actions to create awareness among people about the market as well as risk involved in the market simultaneously. We have good resources in persons in the country to create awareness programmes," he added

Friday, August 3, 2012

SEBI restricts selling ESOP shares for ex-staff till one year after IPO

August 03, 2012 0
SEBI restricts selling ESOP shares for ex-staff till one year after IPO
The Securities and Exchange Board of India (SEBI) today said that shares owned by ex-employees, allotted through ESOPs (Employee Stock Options), cannot be sold for a period of one year pursuant to an IPO by the company.

SEBI said that if someone ceases to be an employee of a company on the date of allotment of shares pursuant to the IPO, the shares held by such a person cannot be exempted from the one year lock-in provision. SEBI said “In other words, such shares held by ex-employees have to be locked in...”

Wednesday, August 1, 2012

V-Mart Retail files DRHP with SEBI

August 01, 2012 0
V-Mart Retail files DRHP with SEBI
New Delhi based retail departmental store chain V-Mart Retail proposes to tap capital market with a public issue of 57.46 lakh equity shares of face value of Rs.10 each. The issue comprised of a fresh issue of 40.11 lakh equity shares by the company and an offer for sale of 17.35 shares by Naman Finance and Investment Private Limited

V-Mart operates in Tier-II and Tier-III cities, with a chain of value retail departmental stores that offering apparels, general merchandise and kirana. Currently it owns and operates 59 stores spread across 51 cities and 10 states and union territories, with a total area of 4.82 lakh sq ft.

Check back Indian IPO Blog for more on the IPO!

Tamilnad Mercantile Bank to come up with an IPO

August 01, 2012 0
Tamilnad Mercantile Bank to come up with an IPO
Tamilnad Mercantile Bank (TMB) is soon going to the tap the capital markets with an Initial Public Offering (IPO) of Equity shares. The Chief Executive Nagendra Murthy said, "The paperwork and ground work is almost done. We are ready. But the timing can be decided only after the court sets the date for the AGM’

The history of Tamilnad Mercantile Bank Ltd., the then Nadar Bank Ltd., dates back to 1921. The bank which had a deposit base of Rs. 21,010.00 in the year 1921 increased it to Rs. 27 Lakhs during 1946 and to Rs. 182 Lakhs during 1971. Deposit level of the bank as on Mar 31, 2011 is Rs. 13,809 Crores. The bank, which had a Net Profit of Rs. 6,984.00 in the year 1921 had spurted its profit to Rs. 5.05 Lakhs in the year 1971 and Rs. 250.90 Crores for the year ended March 2011

Check back Indian IPO Blog for more on the IPO!

Monday, July 30, 2012

Nevyeli Lignite stake sale finalized

July 30, 2012 0
Nevyeli Lignite stake sale finalized
Department of Disinvestment (DoD) has finally finalised to sell 5% stake in Neyveli Lignite, CNBC-TV18 reported. Due to the poor market conditions, the government has not been able to launch the Rs 30,000-crore disinvestment programme for the current fiscal so far. The government currently holds 93.56% in NLC. The company is expecting to raise about Rs 500-600 crore by the stake sale. The company will also offer 5% discount to employees.

Jupiter Infomedia IPO Details

July 30, 2012 0
Jupiter Infomedia IPO Details
Issue opens on: July 30, 2012
Issue closes on: August 01, 2012
Issue Type: Fixed Price Issue IPO
Issue Size: 2,040,000 Equity Shares of Rs. 10
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 20 Per Equity Share
Bid Lot: 6000 Equity Shares and in multiples thereof
Listing At: BSE SME

Monday, July 23, 2012

Samgam Advisors IPO Details

July 23, 2012 0
Samgam Advisors IPO Details
Issue Size: 2,304,000 Equity Shares of Rs. 10 each 

Issue opens on: July 24, 2012
Issue closes on: July 26, 2012
Issue Type: Fixed Price Issue IPO
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 22 Per Equity Share
Bid Lot: 6000 Equity Shares and in multiples thereof
Listing on: BSE SME

Wednesday, June 27, 2012

Max Alert Systems IPO to open from June 28

June 27, 2012 0
Max Alert Systems IPO to open from June 28
Max Alert Systems , a Mumbai based project company with focus in areas as diverse as mining, fire fighting systems and telecommunications, is entering capital market with a public issue of 40 lakh equity shares on June 28, 2012.

Comfort Securities Limited is the Lead Manager to the Issue. Stay tuned for more on the IPO!

Tuesday, June 26, 2012

VKS Projects IPO opens from June 29

June 26, 2012 0
VKS Projects IPO opens from June 29
VKS Projects, another EPC company, is coming up with an IPO of Equity Shares, which would open for subscription from June 29, 2012. The IPO would be open till July 4, 2012

VKS Projects, engineering procurement and construction (EPC contractor) company, proposes to enter the capital markets with an IPO to raise aggregating Rs 55 crore through 100% book building process.

The price band has been fixed at Rs.55 to Rs.60. The issue opens on June 29, 2012 and closes on July 04, 2012. Aryaman Financial Services Ltd is the sole book running lead manager and Bigshare Services Pvt. Ltd. is the registrar to the Issue

Friday, May 18, 2012

Speciality Restaurants IPO finally subscribed 2.54 times

May 18, 2012 0
Speciality Restaurants IPO finally subscribed 2.54 times
The IPO of Speciality Restaurants Ltd., which had opened for subscription from May 16, 2012, has been finally subscribed 2.54 times on an overall basis.

The QIB portion of the issue was oversubscribed 4.68 times while the HNI Category received 2.19 times oversubscription. Incidentally, it is the retail investors this time around, who have chosen to stay away from the issue with the category receiving subscription for only 0.30 times the reserved portion

Speciality Restaurants Ltd is a fine dining operator in India with 62 restaurants and 11 confectionaries as of December 31, 2010. The objects of the issue are for:
1. Development of new corporate restaurants;
2. Development of a food plaza;
3. Repayment of a term loan facility

Wednesday, May 16, 2012

Speciality Restaurants IPO - Bidding Status on Day 1

May 16, 2012 0
Speciality Restaurants IPO - Bidding Status on Day 1

Speciality Restaurants IPO - Rating from CRISIL

May 16, 2012 0
Speciality Restaurants IPO - Rating from CRISIL
CRISIL has assigned an IPO Grade 4 to Speciality Restaurants Ltd IPO. This means as per CRISIL, company has 'Above Average Fundamentals'. CRISIL assigns IPO grading on a scale of IPO Grade 5 to IPO Grade 1, with IPO Grade 5 indicating strong fundamentals and IPO Grade 1 indicating poor fundamentals

Speciality Restaurants Ltd is a fine dining operator in India with 62 restaurants and 11 confectionaries as of December 31, 2012. Speciality Restaurants has established various famous brands across the nation, including Mainland China, Oh! Calcutta, Sigree, Haka, Machaan, Mostly Kababs, Just Biryani and Sweet Bengal. It runs 62 Food & Beverage outlets in various important cities. Mainland China serves more than 2 lakhs Chinese meals per month

The IPO would remain open for subscription between May 16, 2012 and May 18, 2012

Tuesday, May 15, 2012

Speciality Restaurants IPO Information

May 15, 2012 0
Speciality Restaurants IPO Information
Issue Size: 11,739,415 Equity Shares of Rs.10/- each

Issue opens on: May 16, 2012
Issue closes on: May 18, 2012
Price Band: Rs.146/- to Rs.155/- per equity share
Bid Lot: 40 Equity Shares and in multiples thereof
Lead Manager: Kotak Mahindra Capital Company Limited
Registrar: Link Intime India Pvt. Ltd. 

Monarch Health Services IPO Details

May 15, 2012 0
Monarch Health Services IPO Details
Issue Size: 3,000,000 Equity Shares of Rs. 10/- each 

Issue Opens on: May 12, 2012
Issue Closes on: May 16, 2012
Issue Type: Fixed Price Issue IPO
Issue Price: Rs. 40 Per Equity Share
Bid Lot: 3000 Shares
Minimum Order Quantity: 3000 Shares
Listing At: BSE SME

Plastene IPO withdrawn

May 15, 2012 0
Plastene IPO withdrawn
Plastene India Limited has withdrawn its IPO due to poor response from investors

Plastene India IPO was subscribed 0.29 times on its final day of subscription. HNI Category was subscribed 1.76 times while, the response in QIB and Retail Categories was negligible. The Employees category was subscribed 0.75 times

Thursday, May 10, 2012

Plastene India Limited IPO Details

May 10, 2012 0
Plastene India Limited IPO Details
Issue Size: 9,255,290 Equity Shares of Rs. 10 

Issue Opens on: May 09, 2012
Issue closes on: May 15, 2012
Price Band: Rs.81/- to Rs.84/- per equity share
Bid Lot: 75 Equity Shares and in multiples thereof
Lead Manager: Motilal Oswal Investments Advisors Pvt. Ltd.
Registrar: Karvy Computershare Pvt. Ltd.

Saturday, May 5, 2012

Samvardhana Motherson Finance IPO withdrawn

May 05, 2012 0
Samvardhana Motherson Finance IPO withdrawn
Samvardhana Motherson Finance Ltd (SMFL) has withdrawn its Rs 1665.00 Crore IPO due to poor response from investor from all categories of investors
 
SMFL public issue subscribed 0.23 times on its final day of subscription. QIB quota of the IPO subscribed with bids received for 57% shares. The response in Non Institutional, Retail Individual and Employee Reservation quota was horribly frail with less than 1% subscription

Samvardhana Motherson Finance Limited (SMFL) is a multinational business with manufacturing and design capabilities providing full system solutions to diverse industries. SMFL provides an end-to-end range of design and manufacturing solutions to the automotive customers, including product concept and product design, engineering, manufacturing, sub-assembly and the production of integrated modules

Wednesday, April 25, 2012

Samvardhana Motherson Finance IPO opens from May 2, 2012

April 25, 2012 0
Samvardhana Motherson Finance IPO opens from May 2, 2012
Samvardhana Motherson Finance Limited (SMFL) is coming up with an IPO of Equity Shares having Face Value of Rs.10/- each, which opens for subscription from May 02, 2012. The IPO would be open for subscription till May 04, 2012

Samvardhana Motherson Finance Limited (SMFL) is a multinational business with manufacturing and design capabilities providing full system solutions to diverse industries. SMFL provides an end-to-end range of design and manufacturing solutions to the automotive customers, including product concept and product design, engineering, manufacturing, sub-assembly and the production of integrated modules.

Check back Indian IPO Blog for more on Samvardhana Motherson Finance Limited (SMFL) IPO!

Tribhovandas Bhimji Zaveri (TBZ) IPO - Bidding Status on Day 2

April 25, 2012 0
Tribhovandas Bhimji Zaveri (TBZ) IPO - Bidding Status on Day 2

Tuesday, April 24, 2012

TBZ IPO fails to woo investors on opening day

April 24, 2012 0
TBZ IPO fails to woo investors on opening day
Tribhovandas Bhimji Zaveri (TBZ) IPO which has opened for subscription from April 24, 2012, has failed to attract investors even on the auspicious day of Akshay Tritiya. The IPO has received bids only in the HNI and Retail Category which are subscribed 0.22 times and 0.05 times respectively with QIB category receiving no bids on the opening day

Earlier, CRISIL had assigned an IPO Grade 3 to Tribhovandas Bhimji Zaveri Ltd (TBZ) IPO. This means as per CRISIL, company has 'Average Fundamentals'. CRISIL assigns IPO grading on a scale of IPO Grade 5 to IPO Grade 1, with IPO Grade 5 indicating strong fundamentals and IPO Grade 1 indicating poor fundamentals.

Indian IPO Blog has posted an insight based on analysis of TBZ IPO. Click here to read Indian IPO Blog Insight on TBZ IPO!

Sunday, April 22, 2012

Tribhovandas Bhimji Zaveri IPO - Detailed Insight

April 22, 2012 0
Tribhovandas Bhimji Zaveri IPO - Detailed Insight
Tribhovandas Bhimji Zaveri Ltd., an Indian top jewellery retailer, is entering the capital markets with an IPO of 16,666,667 Equity Shares of Rs.10/- each, which would remain open for subscription between April 24, 2012 and April 26, 2012. Is the jewellery retailer worth the glitter? Let's try to find out:

The Price Band for the IPO is Rs.120/- to Rs.126/- per equity share. Correspondingly, the bid lot would be 45 Equity Shares and in multiples thereof.

The objects of Tribhovandas Bhimji Zaveri Ltd. IPO are:
1. To finance the establishment of new showrooms;
2. To finance incremental working capital requirements;


IPO Rating:
CRISIL has assigned an IPO Grade 3 to Tribhovandas Bhimji Zaveri Ltd (TBZ) IPO. This means as per CRISIL, company has 'Average Fundamentals'. CRISIL assigns IPO grading on a scale of IPO Grade 5 to IPO Grade 1, with IPO Grade 5 indicating strong fundamentals and IPO Grade 1 indicating poor fundamentals. Click here to read more on TBZ IPO - CRISIL Rating


Significant Risks involved in the issue:
1. There are criminal proceedings pending against two of the company's independent Directors
2. The objects of the Issue includes the financing of the establishment of nine new large format high street showrooms in eight cities. However, interestingly, within the cities identified, the exact location of where these showrooms would be located has not yet been finalised
3. There are five third parties with the right to use the "Tribhovandas Bhimji Zaveri" name
4.The company does not register its jewellery designs under the Design Act, 2000 and may lose revenue if the designs are duplicated by competitors
5. For Fiscal 2011 and the nine months ended December 31, 2011, 94.15% and 93.69% of total turnover, respectively, was generated from concentrated regions. Hence, lack of geographical diversion can be a restriction for the company


Analysis of Financials:
Following are the financials of the company as per the Red Herring Prospectus filed by the company:


The company has managed to achieve a turnover of around Rs.1,194 Crores for FY ending 2011. The PAT  margin for the said year comes to a rather scant 3.35%. As against this, Gitanjali Gems Ltd., a listed peer, has a bit stronger position with a Turnover of Rs.5,122 Crores and a PAT margin of around 4.38%. Besides, unlike Gitanjali Gems, lack of geographical diversity and extensive global presence can also be a bottleneck for TBZ.

Although a strong brand name and experienced management can be positives for the company, investors may not digest the risk factors and not so extraordinary financial performance of the company

Saturday, April 21, 2012

Tribhovandas Bhimji Zaveri (TBZ) IPO - Grading Report

April 21, 2012 0
Tribhovandas Bhimji Zaveri (TBZ) IPO - Grading Report
CRISIL has assigned a CRISIL IPO Grade of ‘3/5’ (pronounced ‘three on five’) to the proposed IPO of Tribhovandas Bhimji Zaveri Ltd (TBZ). This grade indicates that the fundamentals of the IPO are average relative to other listed equity securities in India. However, this grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals. The grade is not a recommendation to buy, sell or hold the graded instrument, its future market price or suitability for a particular investor

According to the grading report by CRISIL, The assigned grade reflects TBZ’s century-old presence in the retail jewellery business and the resultant strong brand recall. The grade factors in the resilience of demand for gold jewellery in India despite a significant rise in gold prices, 28% y-o-y in 2011, which has added shine to TBZ’s top line. Compared to other gold jewellery players, TBZ’s revenue mix leans towards higher-margin diamond jewellery, which bodes well for TBZ in the wake of increasing acceptance of diamond jewellery in India. The grade has also taken into account the expected increase in organised retail penetration in jewellery vis-à-vis the single-store format, which will benefit established players like TBZ. The company has steadily expanded from one store to 14 stores in the past decade

The grade is restrained by competition in the jewellery retailing market, which will likely intensify following planned expansions by regional/traditional players. TBZ too plans to expand to 22 stores by end-FY13 at a faster-than ever pace, which could throw up execution challenges even though its
strategies (regarding store location, size, format, personnel and schedule) are in place. Opening of new stores will also put pressure on profitability due to higher marketing expenses and working capital requirement. Further, with the Tribhovandas Bhimji Zaveri brand being used by other Zaveri family members, the risk of brand dilution cannot be ignored, especially if they under-perform on quality.

Wednesday, April 18, 2012

Tribhovandas Bhimji Zaveri (TBZ) IPO - Price Band

April 18, 2012 0
Tribhovandas Bhimji Zaveri (TBZ) IPO - Price Band
The Price Band for the upcoming IPO of Tribhovandas Bhimji Zaveri (TBZ) is fixed at Rs.120/- on the lower end and Rs.126/- on the upper end. The company is a leading India jewellery retailer dealing in gold jewellery, diamond-studded jewellery, platinum jewellery and jadau jewellery though 14 showrooms in 10 cities across five states

The IPO would remain open for subscription between April 24, 2012 and April 26, 2012. BRLMs to the Issue are IDFC Capital and Avendus Capital whereas the Registrar is Karvy Computershare Pvt. Ltd. Corresponding to the price band, the bid lot or the minimum order quantity for the IPO is set at 45 Equity Shares and in multiples thereof

Check back Indian IPO Blog for more on TBZ IPO!

TBZ IPO opens from April 24

April 18, 2012 0
TBZ IPO opens from April 24
The IPO of Mumbai based Jewelery retailer Tribhovandas Bhimji Zaveri opens for subscription from April 24, 2012.

The company has 14 showrooms in nine cities across five states and it primarily sells gold jewellery and diamond-studded jewelery. Stay tuned for latest updates on TBZ IPO

Sunday, April 8, 2012

BSE may come up with an IPO soon

April 08, 2012 0
BSE may come up with an IPO soon
The Bombay Stock Exchange (BSE) is planning to come up with an IPO which may hit the streets as early as April end or early May. Market regulator SEBI said that BSE Limited may be the first to list on the exchanges soon, reports CNBC-Awaaz. The board members of BSE Limited may consider the IPO in the last week of April

An extraordinary and rather interesting aspect of this listing, whenever materialized, would be that BSE is itself an exchange and listing of BSE on itself would be an issue. In this regard, SEBI said an exchange cannot be listed on itself, which means if the BSE were to go public, it has to do so on the NSE or another exchange and vice versa

"The stock exchanges will have diversified ownership and no single investor will be allowed to hold more than 5% except the stock exchange, depositories, insurance company, banks or public financial institutions which may hold up to 15%," SEBI said after the board meeting.

NBCC IPO Allotment Status

April 08, 2012 0
NBCC IPO Allotment Status

Friday, April 6, 2012

BHEL will withdraw FPO papers

April 06, 2012 0
BHEL will withdraw FPO papers
The state owned Bharat Heavy Electricals Limited (BHEL) has said it would withdraw the initial papers for its follow-on offer that were filed with Securities and Exchange Board of India (SEBI). The company informed BSE that "The Board of Directors of BHEL has approved the withdrawal of DRHP (draft red herring prospectus) filed by BHEL with Sebi"

The company said the decision has been taken after the receipt of "no-objection" for withdrawal of DRHP for BHEL FPO from the Department of Heavy industry and Department of Disinvestment.

The company had earlier filed DRHP in September for the follow-on public offer (FPO) under which the government which currently holds 67.72% stake in the company, planned to offload 5% stake in the company through the proposed FPO


Tuesday, March 27, 2012

MT Educare - Indian IPO Blog Insight

March 27, 2012 0
MT Educare - Indian IPO Blog Insight
MT Educare Limited, an education support and coaching services provider for students in the secondary and higher secondary school and popular with brand name "Mahesh Tutorials" is entering the capital markets with an IPO for equity shares aggregating to INR3,500 lakhs (fresh issue) and an offer for sale of up to 80,00,000 equity shares.(including anchor portion of 17,37,914 equity shares.) MT Educare also provides coaching services for students pursuing graduation degree in commerce, preparing for various competitive examinations and undertaking chartered accountancy examinations

The IPO would remain open for subscription between March 27, 2012 and March 29, 2012. The object of the issue are for general corporate purposes and for:
1. Part financing the cost of construction of a PUC campus in Karnataka, which includes the cost of acquisition of land;
2. Establishing new Coaching Centres at 20 locations

Enam Securities Private Limited is the Book Running Lead Manager to the Issue while Link Intime India Pvt. Ltd. is the Registrar


IPO Grading:
CRISIL has assigned an IPO Grade 4 to MT Educare IPO. This means as per CRISIL, company has 'Above Average Fundamentals'. CRISIL assigns IPO grading on a scale of IPO Grade 5 to IPO Grade 1, with IPO Grade 5 indicating strong fundamentals and IPO Grade 1 indicating poor fundamentals. View MT Educare IPO Grading Report


Analysis of Financials:

Following are the standalone financials of the company as per the Red Herring Prospectus filed by the company:

The Net Worth of the company was Rs.47.75 Crores as on March 2011 which grew close to Rs.57 Crores till September 2011. On the revenue front, for financial year ended 31st March 2011, company reported Rs. 105 crore as total operating income, with PAT of Rs. 8 crore, on a consolidated basis. If we consider FY11, the EPS turns out to be around Rs.2.4. Assuming the shares would be issued at the upper end of the price band, i.e. at Rs.80/- per share, the resulting PE would still be on the higher side


Significant Risk Factors:
1. The company is heavily dependent on the services of the promoter Mahesh Shetty, directors and key members of the management team. Any damage to reputation of the promoter / his services may have an adverse impact on the business

2. There is heavy concentration when it comes to geographical diversity. Most of the coaching centres of the company are located in Mumbai and around 90% of the standalone fees is also received from there.

3. The company has provided loans to MT Educare Charitable Trust in the past at price not linked to market variables and may continue to do so in the future

4. Despite having loan burden of its own as on March 2011, In FY11, a loan of Rs.5 crore was given to a group company Neptune Venture and Developers


Concluding Remarks:
Even while keeping the growth and revenue potential of educational coaching centres in view, it may be difficult for investors to digest a heavier PE for a concentrated business such as this. The IPO may give listing gains - may be even handsome gains, but continued growth in shareholder value or rather the maintainability of the same over the long term remains a question keeping in view the risk factors involved

Neogen Chemicals IPO subscription status on Day 2

QIB: 0.95x HNI: 1.12x Retail: 3.14x Overall: 2.08 times