March 2012 - Indian IPO Blog

Indian IPO Blog

Insights into investing world in India

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

NBCC IPO manages close to 5 times subscription

March 27, 2012 0
NBCC IPO manages close to 5 times subscription
NBCC IPO, which closed for subscription today, has managed to garner 4.93 times overall subscription, riding mainly on the back of respectable support from the QIB Investors, the category being oversubscribed 7.07 times.

The response from the Retail Category came at 3.40 times the shares reserved for the category, which may have been blossomed to some extent on account of the 5% Discount announcement on the final issue price.

National Buildings Construction Corporation Limited (NBCC Ltd) is a public sector company engaged in the business of project management consultancy services for civil construction projects, civil infrastructure for power sector and real estate development

L&T Finance to takeover Fidelity Mutual Fund

March 27, 2012 0
L&T Finance to takeover Fidelity Mutual Fund
L&T Finance Ltd has agreed to buy Fidelity Group’s Indian mutual fund arm -- FIL Fund Management Pvt. Ltd and FIL Trustee Co. Pvt. Ltd. --for an undisclosed sum. According to sources, L&T Finance was not in contention for the acquisition in the initial rounds of negotiations, but came up with an offer that was more than that of the two other contenders in the final round -- HDFC Asset Management Co. Ltd and Pramerica Asset Managers Pvt. Ltd

L&T MF currently manages assets worth Rs. 4,616 crore in mutual funds. Fidelity MF in India is a unit of Fidelity Mauritius, which in turn is a subsidiary of Fidelity Worldwide Investment, or FIL Ltd, that manages at least $212 billion in assets

MT Educare IPO - Bidding Status on Day 1

March 27, 2012 0
MT Educare IPO - Bidding Status on Day 1

NBCC IPO - Final Subscription Status

March 27, 2012 0
NBCC IPO - Final Subscription Status

Mahesh Tutorials (MT Educare) IPO opens from today

March 27, 2012 0
Mahesh Tutorials (MT Educare) IPO opens from today
MT Educare Limited, is coming up with an IPO of Equity Shares having a Face Value of Rs.10/- each, which opens from subscription today. MT Educare Ltd. (MTEL) under the brand name of “Mahesh Tutorials” is one of the leading coaching services providers in Maharashtra, with primary operations in Mumbai. MTEL currently caters to 58,300 students through 188 centers at 110 locations spread across Maharashtra, Karnataka, Gujarat & Tamil Nadu

MTEL has 757 faculty members across all coaching centers with dedicated 77 faculty members for students in the School Section to focus on providing personal attention apart from regular classroom coaching. 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

The IPO would remain open for subscription between March 27, 2012 and March 29, 2012. Stay tuned to Indian IPO Blog for more on MT Educare Limited IPO

Monday, March 26, 2012

MT Educare IPO Details

March 26, 2012 0
MT Educare IPO Details
Issue Opens on: March 27, 2012  
Issue Closes on: March 29, 2012
Price Band: Rs.74/- to Rs.80/- per equity share
Bid Lot: 80 Equity Shares and in multiples thereof
Lead Manager: Enam Securities Pvt. Ltd.
Registrar: Link Intime India Pvt. Ltd.

Friday, March 23, 2012

MT Educare IPO opens from March 27, 2012

March 23, 2012 0
MT Educare IPO opens from March 27, 2012

MT Educare Limited, an education support and coaching services provider for students in the secondary and higher secondary school, is coming up with an IPO for part financing the cost of construction of a PUC campus in Karnataka and establishing new Coaching Centres at 20 locations

The IPO would remain open for subscription between March 27, 2012 and March 29, 2012. The price band for the IPO is fixed at Rs.74/- to Rs.80/- per equity share for shares having a Face Value of Rs.10/- each. The company also provide coaching services for students pursuing graduation degree in commerce, preparing for various competitive examinations and undertaking chartered accountancy examinations

Stay tuned to Indian IPO Blog for more on MT Educare Limited IPO!

NBCC IPO - Bidding Status on Day 1

March 23, 2012 0
NBCC IPO - Bidding Status on Day 1

Thursday, March 22, 2012

NBCC IPO opens for subscription

March 22, 2012 0
NBCC IPO opens for subscription
The IPO of National Building Construction Corporation (NBCC) opens for subscription from today, March 22, 2012. NBCC is planning to raise Rs.120 crore via initial public offer of 1.2 crore equity shares, by diluting 10% stake. The price band for the issue has fixed at Rs.90 to Rs.106 a share

Retail Investors and Eligible Employees would be entitled to a Discount of 5% on the Final Issue Price of the IPO. “NBCC offer is unique in a sense that there are no listed project management consultancy firm,” said Abhay Bongirwar, managing director and CEO at IDBI Capital Market Services, which is one of the book running lead managers along with Enam Securities Pvt Ltd.

“Though the NBCC offer is small, it is very important from the government perspective as the revenue raised would flow into the government coffers and not contribute to the expansion of the company,” said an NBCC official.

Monday, March 19, 2012

NBCC IPO Price Band announced

March 19, 2012 0
NBCC IPO Price Band announced
NBCC has announced the price band for its upcoming IPO at Rs.90/- to Rs.106/- per equity share. The IPO would remain open for subscription between March 22, 2012 and March 27, 2012

Retail Investors and Employees would be entitled to a discount of 5% on the final issue price of the IPO. This essentially means that if the issue price is fixed at the upper end of the price band, then Retail Investors will get a discount of Rs.5.30 on Rs.106/-, and thereby get shares at price of Rs.100.70/- per share

National Buildings Construction Corporation Limited (NBCC Ltd) is a public sector company engaged in the business of project management consultancy services for civil construction projects, civil infrastructure for power sector and real estate development

Friday, March 16, 2012

Budget 2012 - Key Highlights

March 16, 2012 0
Budget 2012 - Key Highlights
The Budget 2012, contrary to many expectations, turned out to be a rather low profile one. No revolutionary measures were introduced except some of the already anticipated changes. Here's a look at significant features of Union Budget 2012:

Disinvestment Policy:
For FY 2012-13, Rs 30,000 crore to be raised through disinvestment.
Foreign Direct Investment: Efforts are on to arrive at a broad-based consensus to allow FDI in multi-brand retail upto 51%

Tax Reforms:
  • Direct Tax Code  (DTC) Bill to be enacted at the earliest after expeditious examination of the report of the Parliamentary Standing Committee.
  • Drafting of model legislation for the Centre and State Goods Services Tax in concert with States is under progress.
  • GST network to be set up as a National Information Utility and to become operational by August 2012
  • Tax burden for individuals to come down: Income tax exemption limit raised from Rs.180,000 to Rs2,00,000; 10% tax for Rs.200,000 to Rs.500,000 Income; 20% for Rs.500,000 to Rs.10,00,000 and 30% beyond Rs.10,00,000; 
  • Savings bank account interest up to Rs10,000 exempted from tax
  • Senior citizens not having income from business proposed to be exempted from payment of advance tax
  • Rajiv Gandhi Equity Saving Scheme to allow for income tax deduction of 50% to new retail investors (whose annual income is below Rs 10 lakh), who invest upto Rs 50,000 directly in equities. The scheme will have a lock-in period of 3 years
Infrastructure and Industrial Development:
  • During 12th Five Year Plan period, investment in infrastructure to go up to Rs 50 lakh crore, half of which is expected from private sector.
  • Tax free bonds of Rs 60,000 crore to be allowed for financing infrastructure projects

Attracting foreign funds: 
Efforts on to allow FDI in multi-brand retail and permitting foreign airlines invest in domestic players; External borrowings to the extent of $1 billion for aviation companies; Qualified Foreign Investors to get access to corporate bond market.

Indirect Taxes:
  • Standard rate of excise duty to be raised from 10% to 12%, merit rate from 5% to 6% and the lower merit rate from 1% to 2% with few exemptions.
  • Service Tax Rate raised to 12%
  • Excise duty on large cars also proposed to be enhanced. 3. Indirect taxes estimated to result in net revenue gain of Rs.45,940 crore

Budget 2012-13 Speech - Full Text

March 16, 2012 0
Budget 2012-13 Speech - Full Text
Full Text of Speech by
Mr. Pranab Mukherjee
Minister of Finance

March 16, 2012

Madam Speaker,
I rise to present the Union Budget for 2012-13.

1. For the Indian economy, this was a year of recovery interrupted. When one year ago, I rose to present the Budget, the challenges were many, but there was a sense that the world economy was on the mend. The Budget was presented in the first glimmer of hope. But reality turned out to be different. The sovereign debt crisis in the Euro zone intensified, political turmoil in Middle East injected widespread uncertainty, crude oil prices rose, an earthquake struck Japan and the overall gloom refused to lift.

2. While I believe that there should be no room for complacency, nor any excuse for what happens in one’s own country, we will be misled if we ignore the ground realities of the world. The global crisis has affected us. India’s Gross Domestic Product (GDP) is estimated to grow by 6.9 per cent in 2011-12, after having grown at the rate of 8.4 per cent in each of the two preceding years. Though we have been able to limit the adverse impact of this slowdown on our economy, this year’s performance has been disappointing. But it is also a fact that in any cross-country comparison, India still remains among the front runners in economic growth.

CRISIL assigns an IPO Grade 4/5 to NBCC IPO

March 16, 2012 0
CRISIL assigns an IPO Grade 4/5 to NBCC IPO
Credit Rating Agency CRISIL has assigned an IPO Grade of 4/5 to the proposed IPO of NBCC Ltd., which would open for subscription from March 22, 2012. The grade indicates that the fundamentals of the company are 'Above Average'. CRISIL assigns IPO Grades on a scale of IPO Grade 1 to IPO Grade 5 with IPO Grade 1 indicating poor fundamentals and IPO Grade 5 indicating strong fundamentals

NBCC IPO would be the last IPO in the divestment plan of the Government for FY2012. IDBI Capital Market Services Limited and Enam Securities Private Limited are the book running lead managers to the issue. NBCC is engaged in the business of project management consultancy services for civil construction projects; civil infrastructure for power sector; and real estate development

Check back Indian IPO Blog for more on NBCC IPO!

Thursday, March 15, 2012

Retail Investors to get 5% discount in NBCC IPO

March 15, 2012 0
Retail Investors to get 5% discount in NBCC IPO
The IPO of NBCC, which opens for subscription from March 22, 2012 would include a discount for the Retail Investors and Employees. These categories of invesors will get shares at a 5% discount to final price of the issue.

The offer comprises a net offer of 11,880,000 equity shares and includes a reservation of 1,20,000 equity shares for subscription by the eligible employees. NBCC has appointed IDBI Capital Market Services Ltd. and Enam Securities Pvt. Ltd. as the Book Running Lead Managers. The company currently functions under the Ministry of Urban Development and is the largest public sector construction company in India

Check back Indian IPO Blog for more updates on NBCC IPO!

National Building Construction Corporation (NBCC) IPO opens from March 22, 2012

March 15, 2012 0
National Building Construction Corporation (NBCC) IPO opens from March 22, 2012
National Building Construction Corporation Limited is coming up with an IPO of Equity Shares as part of divestment programme of Rs.40,000 Crore prepared by government for FY 2012. It is an offer for sale by the government, which comprises a net offer to the public of 1.188 crore shares and a reservation of 1.2 lakh equity shares for subscription by eligible employees

National Building Construction Corporation (NBCC) is engaged in the business of project management consultancy services for civil construction projects; civil infrastructure for power sector; and real estate development

The IPO would remain open for subscription between March 22, 2012 to March 27, 2012. This would be the last issue under divestment programme of FY2012

Tuesday, March 13, 2012

Sunday, March 11, 2012

Olympic Cards IPO Subscription on Day 1

March 11, 2012 0
Olympic Cards IPO Subscription on Day 1

Olympic Cards IPO Details

March 11, 2012 0
Olympic Cards IPO Details
Issue opens on: March 09, 2012
Issue closes on: March 13, 2012
Price Band: Rs.30/- to Rs.32/- per equity share
Bid Lot: 200 Equity Shares and in multiples thereof
Lead Manager: Ashika Capital Ltd.
Registrar: Cameo Corporate Services Limited.

Friday, March 9, 2012

Summary of new SEBI Rules for IPO Listing

March 09, 2012 0
Summary of new SEBI Rules for IPO Listing
In order to curb market manipulation and speculation, SEBI has changed rules for newly-listed and re-listed stocks.

For IPOs up to Rs 250 crore in size:
- There will be a 1 hour call auction (9 AM to 10 AM).
- A price band of 5% will be applicable (5% from the equilibrium price).
- The stocks will trade in "Trade for Trade" segment for 10 days.

If no equilibrium price is discovered, the issue price will be used to calculate the price bands.

For IPOs greater than Rs 250 crore in size:
- There will be a 1 hour call auction (9 AM to 10 AM).
- A price band of 20% will be applicable (20% from the equilibrium price).

If no equilibrium price is discovered, the issue price will be used to calculate the price bands.

For re-listings:
- There will be a 1 hour call auction (9 AM to 10 AM).
- A price band of 5% will be applicable (5% from the equilibrium price).
- The stocks will trade in "Trade for Trade" segment for 10 days.

If no equilibrium price is discovered, normal trading will not commence and the stock will continue to trade in call auction sessions.


Call auction timings and details:
9:00 AM to 9:45 AM - Order entry and cancellation.
9:45 AM to 9:55 AM - Order matching.
9:55 AM to 10:00 AM - Buffer period.

Thursday, March 8, 2012

How new SEBI rules will affect MCX IPO Listing

March 08, 2012 0
How new SEBI rules will affect MCX IPO Listing
SEBI has introduced new norms to be followed in case of listing of all new IPOs. The recently concluded MCX IPO would be the first one to be subjected to the new regulations on the listing day. Let's try to understand how these regulations may affect the listing price movements of MCX and future IPOs in the Indian market

According to the new norms mandated by SEBI for IPOs, investors must note that the shares offered under the IPO on the listing day, would initially go through a pre-open session period which will last for an hour between 9:00 AM and 10:00 AM. During this period, investors would be allowed to punch in orders, modify them and/or cancel them during the first 45 minutes, i.e. upto 9:45 AM. The rationale behind such a move is aimed at protecting the interest of the retail shareholders from artificial price-rigging on the bourses.

NBCC IPO to open from March 22, 2012

March 08, 2012 0
NBCC IPO to open from March 22, 2012
The IPO of the state-run National Building Construction Corporation (NBCC) is likely to open for subscription from Thursday, March 22, 2012.

The offer comprises a net offer of 11,880,000 equity shares and includes a reservation of 1,20,000 equity shares for subscription by the eligible employees. NBCC has appointed IDBI Capital Market Services Ltd. and Enam Securities Pvt. Ltd. as the Book Running Lead Managers. The company currently functions under the Ministry of Urban Development and is the largest public sector construction company in India

The government is looking to sell 10% stake in state-owned construction company NBCC via the initial public offering (IPO) route. The price band for this issue would be decided in the EGoM meeting scheduled on Monday, March 19, 2012

What are new listing day rules for IPOs?

March 08, 2012 0
What are new listing day rules for IPOs?
According to the new norms mandated by SEBI for IPOs, investors must note that the shares offered under the IPO on the listing day, would initially go through a pre-open session period which will last for an hour between 9:00 AM and 10:00 AM. During this period, investors would be allowed to punch in orders, modify them and/or cancel them during the first 45 minutes, i.e. upto 9:45 AM. The rationale behind such a move is aimed at protecting the interest of the retail shareholders from artificial price-rigging on the bourses.

However, the crux of the new norms introduced by SEBI states that all the IPO listings on the bourses would be controlled by circuit limits right from the listing day. According to SEBI regulations, in case the equilibrium price (price at which the bid rate matches with the ask rate) is discovered during the pre-open session, the price band for normal trading session shall be 20 per cent of the equilibrium price. In case the equilibrium price is not discovered, then the 20 per cent circuit limit would be applicable on the issue price. While the above mentioned rules are in place for companies with issue sizes in excess of Rs 250 crore, the ones with issue size up to Rs 250 crore would have set circuit limits of 5 per cent either on the equilibrium price or the issue price as stated above

Wednesday, March 7, 2012

MCX IPO be become first IPO to list with listing price discovery regulation

March 07, 2012 0
MCX IPO be become first IPO to list with listing price discovery regulation
MCX IPO, which will list its Equity Shares on the exchanges on Friday, March 9, 2012, will also be the first company to list its shares under the new SEBI regulation of having a mandatory call auction session in the first hour

According to the new regulation envisaged by the market regulator SEBI, there would be a price discovery mechanism in place for IPO listings through a call auction in the first hour of trade. Based on the price arrived at through the call auction between 9:00 am and 10:00 am, there will be a 20% circuit filter on the stock for the rest of the session.

Thus, for instance, if in the first hour of trade, MCX gets a base price of Rs.1400, then the stock price can hover 20% on either side, i.e. in the range of Rs.1120 to Rs.1680 during the rest of the trading session. If the base price is discovered at Rs.1500, then the stock price can roam around in the range of Rs.1200 to Rs.1800 and so on. Check back Indian IPO Blog for the latest updates on listing price and other info on MCX IPO!

MCX IPO Listing Date

March 07, 2012 0
MCX IPO Listing Date
MCX Limited, which recently concluded its mega IPO, would list its Equity Shares on the exchanges from Friday, March 9, 2012. MCX IPO had received a huge response with the IPO getting oversubscribed to the tune of 54 times on an overall basis and about 24 times in the Retail Category

MCX will also become the first new listing to be subject to the recently introduced price discovery mechanism through a call auction in the first hour of trade. Based on the price arrived at through the call auction between 9:00 am and 10:00 am, there will be a 20% circuit filter on the stock for the rest of the session.

Check back Indian IPO Blog for more on MCX IPO Listing!

MCX IPO Allotment Status declared

March 07, 2012 0
MCX IPO Allotment Status declared

Sunday, March 4, 2012

MCX IPO Allotment Status

March 04, 2012 0
MCX IPO Allotment Status
MCX IPO Allotment Status is expected to be declared and would be available online very soon. The IPO had closed for subscription on Friday, February 24, 2012.

MCX IPO, which has opened for subscription from February 22, 2012, had received an excellent response with the IPO getting subscribed 54.10 times on an overall basis as per data gathered from the websites of NSE and BSE.

The Retail Category received stunning response with 24 times oversubscription, while the HNI category is oversubscribed by a jaw-breaking 150 times. More crucial is the QIB subscription figure which is roughly close to 49 times.

Multi Commodity Exchange of India Ltd (MCX) is India based electronic commodity futures exchange. MCX provides online trading facility along with clearing and settlement operations for commodity futures across India. Indian IPO Blog Insights had recommended applying to the IPO in full force considering the fundamentals of the company as well as past performance

Endurance Technologies OFS oversubscribed, cut off price fixed at Rs.1135

Endurance Technologies Offer for Sale was open for Non Retail category on 6-Mar-2019 and for Retail category on 7-Mar-2019 at a floor price ...