August 2017 - Indian IPO Blog

Indian IPO Blog

Insights into investing world in India

Thursday, August 31, 2017

Monday, August 21, 2017

Infosys : When the elephants fight, the grass gets the wounds!

August 21, 2017 0
Infosys : When the elephants fight, the grass gets the wounds!
- By Yash Ved

Unless you live under a rock, you sure as hell would have had to bear the echos of the battle of giants within Infosys' boardroom

For those who like gossips, here's what happened: Infosys CEO Vishal Sikka says enough is enough and decides to quit the company and with this: all hell breaks loose. The company’s board puts the blame squarely on the company’s founder N.R. Narayana Murthy, saying his relentless rhetoric is the primary reason behind the abrupt exit.

With Infosys' first non-founder CEO resigning and the dirty laundry of the spat between the board and Murthy coming out in the open, the stock slipped from its high to 13 per cent down in intra day trade to touch its multi-year low of Rs 884.20 this Friday though closing in at Rs.924

In a bid to counter the overflow of negative sentiments, the board announces buyback of Rs.13000 crores at Rs.1150 a piece. Does it or would it work? Well, that's upto future but the stock bleeds away another 5 percent on Monday and reaches Rs.873 levels!

But wait! Hold on a moment! Who gained amidst all this? Apparently: no one! The situation clearly all sounds synonymous to that good old saying that when the elephants fight, the grass gets hurt!

Whether it was the tension between Sikka and Murthy or the spat between the Board and the founder, one can do as much root cause analysis of it as one wants but the fact remains that the 'discliplined investor' who trusted the name and bought shares at Rs.1k levels like a good boy is the one that has really had to bleed red! 

With such hard earned money of thousands at stake, it is high time that good sense prevails over ego and both Infosys board and Murthy do what they need to and that is stop being kiddish and work on providing some well deserved and credible confidence to the investors!


Disclosure: Views expressed are personal. The writers may hold position in the stocks discussed in above article

Apex Frozen Foods IPO opens on Aug 21

August 21, 2017 0
Apex Frozen Foods IPO opens on Aug 21

Apex Frozen Foods Ltd. is coming with an IPO comprising of fresh issue of shares and offer for sale (OFS) to raise around Rs 148.77 to Rs.152.25 crore.

The company is going to raise between Rs.123.97 to Rs.126.87 crore by issuing 72,50,000 shares

While under OFS, promoters will offer 14,50,000 equity shares with face value of Rs 10 per share. The lot size consists of minimum of 80 shares

The issue will remain open from August 22 to August 24, 2017 with price band of Rs.171 to Rs.175 per share. The company will be listed on both BSE and NSE

Friday, August 11, 2017

Cochin Shipyard speedboats in sea at jet speed, up 20 percent on debut

August 11, 2017 0
Cochin Shipyard speedboats in sea at jet speed, up 20 percent on debut

The equity shares of Cochin Shipyard powerboated upon listing with the shares listing at 20 percent premium over issue price

The scrip took gear changing time to take off the shores with the listing at mere Rs.3 above the issue price before speed boating to 20 percent up at Rs.522 as against issue price of Rs.432 a piece. The stock was trading at Rs.512.40 at 10.26 am

Stay tuned to Indian IPO Blog for more

Wednesday, August 9, 2017

Cochin Shipyard IPO Allotment Status declared - Click to check your status now

August 09, 2017 0
Cochin Shipyard IPO Allotment Status declared - Click to check your status now

Cochin Shipyard IPO Allotment Status is declared. Investors have started to receive SMSs for allotment and credit of equity shares in their demat account

The link to check Cochin Shipyard IPO Allotment Status is http://cs.linkintime.co.in/ipo/IPO.aspx

Cochin Shipyard IPO Allotment Status declared, link to be shared shortly

August 09, 2017 0
Cochin Shipyard IPO Allotment Status declared, link to be shared shortly

Cochin Shipyard IPO Allotment Status is declared. Investors have started to receive SMSs for allotment and credit of equity shares in their demat account

The link to check Cochin Shipyard IPO Allotment Status is http://cs.linkintime.co.in/ipo/IPO.aspx

Cochin Shipyard IPO - Basis of Allotment

August 09, 2017 0
Cochin Shipyard IPO - Basis of Allotment

Tuesday, August 8, 2017

Cochin Shipyard IPO GMP

August 08, 2017 0
Cochin Shipyard IPO GMP

Cochin Shipyard IPO Allotment Status expected today

August 08, 2017 0
Cochin Shipyard IPO Allotment Status expected today
The much awaited allotment status for the recently concluded Cochin Shipyard IPO is expected to be declared today

The finalization and upload of the Cochin Shipyard IPO Allotment Status is expected to be done by late night today

The latest update on Cochin Shipyard IPO Allotment Status would be posted on Indian IPO Blog and Indian IPO Blog Whatsapp groups. 

Stay tuned for more

Securities and Intelligence Services (SIS) IPO Allotment Status declared

August 08, 2017 0
Securities and Intelligence Services (SIS) IPO Allotment Status declared

Monday, August 7, 2017

SIS IPO Allotment Status

August 07, 2017 0
SIS IPO Allotment Status

Thursday, August 3, 2017

Cochin Shipyard IPO Final subscription status till 7 PM

August 03, 2017 0
Cochin Shipyard IPO Final subscription status till 7 PM

Cochin Shipyard IPO subscription status till 12.20 pm

August 03, 2017 0
Cochin Shipyard IPO subscription status till 12.20 pm

Cochin Shipyard IPO Subscription status - Day 3 at 12:20PM

The following data is assuming the shares will be issued at upper price band

QIB*: 8.14x (*Excluding Anchor)
NII: 3.24x
RII: 5.69x
Empl. 0.36x
Overall: 6.40 times

Applications: 13,64,000 Approx
No. of Application: 3.53 times

Cochin Shipyard IPO closes - Should you go for it?

August 03, 2017 0
Cochin Shipyard IPO closes - Should you go for it?
The initial public offering (IPO) of state-owned Cochin Shipyard Limited was subscribed 3.16 times on its second day of opening
The IPO is a fresh issue of 22.65 million shares, which at the upper end of the price band will fetch the company over Rs978 crore. There is also an offer for sale of 11.3 million shares. At the upper end of the price band, the government, which is selling 10% stake, will raise over Rs.489 crore

But whether all this makes a good bet to go for it? Let's find out on a simple 3 point criteria

1. Company Business prospects

The company has a strong reputation in the shipbuilding space, particularly in relation to the defence sector. It has been in existence since 1972. In the past it has undertaken repairs of Indian Navy aircraft carriers such as INS Viraat and INS Vikramaditya. It is also building India's first indigenous Aircraft Carrier (IAC) for Indian Navy. It is also one of the few companies with "Miniratna" status
Cochin Shipyard has a credible moat given that it receives preferential orders from the Indian navy and the coast guard. Being a Government of India company it also receives some confidential orders which can not be given to private players

2. Financials

The company's average five year ROE and ROCE were 16.1% and 24.7% respectively. Current ROE and ROCE stand at 16.2% and 23.9% respectively
The company's revenue increased at a CAGR of 5.7% in last five years. However this growth seems impressive, given the poor health of the shipbuilding industry, excess supply, low demand and volatility in crude prices
Moreover, the company is effectively debt free and has cash and cash equivalents of around Rs 2,000 crores against estimated capital expenditures of around Rs 2,000 crores over 3-4 years after adjusting for IPO proceeds

3. Pricing

The company has set a price band of Rs. 424 to Rs.432 per share for the initial share sale. One of the tempting features especially for Retail investors is the special discount of Rs.21 per equity share which will in turn reduce the cost per share Rs.411 per share assuming allotment is made at upper end of price band.

The company is best profit making one in the shipbuilding industry since all of its listed peers have negative earnings and are highly leveraged whereas Cochin Shipyard would have a PE ratio of 18.8 times which is fairly justified

This price is also clearly attractive for listing gains considering already high grey market premium running through

Verdict

Considering that the company ticks most of the boxes, investors may not want to miss this ship!

SIS IPO Final subscription figures

August 03, 2017 0
SIS IPO Final subscription figures

Wednesday, August 2, 2017

SIS IPO Grey Market Premium (GMP)

August 02, 2017 0
SIS IPO Grey Market Premium (GMP)

Cochin Shipyard IPO Grey Market Premium (GMP)

August 02, 2017 0
Cochin Shipyard IPO Grey Market Premium (GMP)

Hindustan Copper Offer for Sale (OFS) - Official NSDL Announcement

August 02, 2017 0
Hindustan Copper Offer for Sale (OFS) - Official NSDL Announcement
Name of Seller
The President of India, acting through and represented by the Ministry of Mines,Government of India

Name of Company whose shares are proposed to be sold
Hindustan Copper Limited
(ISIN:INE531E01026)

Name of stock exchanges where orders shall be placed
NSE and BSE

Date and time of the opening of the offer for retail investors
August 3, 2017 at 9.15 a.m.

Date and time of the closing of the offer for retail investors
August 3, 2017 at 3.30 p.m.

Date and time of the opening of the offer for non-retail investors
August 2, 2017 at 9.15 a.m.

Date and time of the closing of the offer for non-retail investors:
August 2, 2017 at 3.30 p.m.

Floor Price
Rs. 64.75 per share

Retail Discount
Retail Investors will be allocated Offer Shares at the Discounted Price i.e. at a discount of 5% to the Cut-Off Price in accordance with the SEBI OFS circulars. The Discounted Price, which shall be the final allocation price to the Retail Investors, may be below the Floor Price

Tuesday, August 1, 2017

Cochin Shipyard IPO - Brokerage Recommendations summary

August 01, 2017 0
Cochin Shipyard IPO - Brokerage Recommendations summary

IIFL Wealth Management Ltd 
IPO provides good retail exposure to the promising domestic defence sector and available at attractive valuations of 18.1 times FY17 price to earnings (PE). “With average margins of 18% over last five years and return on equity (RoE) of around 15 over the same period, it has consistently delivered the goods, even during the slowdown phase in shipbuilding industry,”

Motilal Oswal Securities Ltd (MOSL)
Continuous focus on high margin repair business, strong positioning in west coast of India, healthy order book and negligible debt with cash and bank balance of Rs2,000 crore and decent ROEs and return on capital employed (ROCE) are key strengths of Cochin Shipyard, “At higher end of price band, the issue is attractive,” MOSL said

Prabhudas Lilladher Pvt. Ltd.
The strong net cash balance sheet, strong order pipeline and option value of bagging further air craft carriers could provide multi-year visibility of earnings. At the upper end of the issue price, market capitalization works out to be Rs.5,880 crore

Angel Broking 
The issue is reasonably priced on the back of healthy order book with execution capability and experienced management. “Despite cyclical business it has maintained net cash positive balance sheet and eased working capital cycle from over 195 days in FY2012 to current 59 days,”

Sharekhan Ltd.
“Consequently, CSL is not comparable with listed private sector shipyard companies. CSL is expected to be available at 18.8x P/E multiple (EPS calculated on post issue number of shares) and 2.9x P/B on FY2017 financials at the upper price band of Rs.432,”


Security and Intelligence Services (India) IPO closes tomorrow

August 01, 2017 0
Security and Intelligence Services (India) IPO closes tomorrow
Security and Intelligence Services (India) IPO is closing for subscription tomorrow on Aug 2, 2017. Security and Intelligence Services (India) Limited provides private security and facility management services in India and Australia. They offer cash logistics; security services, including manned guarding, cash logistics, and electronic security; and facility management services, such as mechanized cleaning, and pest and termite control services.

Security and Intelligence Services (India) servers customers that operate in various industries and sectors, which include banking and financial services, IT/ITeS and telecom, automobile, steel and heavy industries, governmental undertakings, hospitality and real estate, utilities, educational institutions, healthcare, consumer goods, engineering, and construction

The IPO has been subscribed 1.93 times on an overall basis with the retail category getting subscribed 7.14 times till Day 2 of the opening

Stay tuned to Indian IPO Blog for more on SIS IPO

Cochin Shipyard IPO Subscription Status on Day 1

August 01, 2017 0
Cochin Shipyard IPO Subscription Status on Day 1

Upcoming IPOs in 2017

August 01, 2017 0
Upcoming IPOs in 2017

1. *Cochin Shipyard IPO*

Cochin Shipyard Limited, one of the leading Shipbuilding and Ship repairing Company in India.

Cochin Shipyard IPO is being issued to fund 2 major infras expenditure projects i.e International Ship Repair facility for Rs 970 Crores and Construction of New Dry Dock for Rs 1,799 Crores.

The issue size is approx. Rs 2,700 Crores.

The issue price is Rs 424 to Rs 428 approx and change.

Cochin Shipyard IPO would get listed on BSE/NSE.

Its revenue is increased from Rs 2,107 Crores for FY16 to Rs 2,222 Crores for FY17.

Its profits are increased from Rs 272 Crores for FY16 to Rs 322 Crores for FY17.

IPO would open for subscription on 1st August, 2017. 

2. *Security and Intelligence Services IPO (SIS IPO)*

The firm provides security solutions and business support services to a wide range of customers across India and Australia.

The issue size expected approx. for Rs 500 Crores.

Proceeds of the issue will be utilised towards repayment of loan, funding working capital requirements and for general corporate purposes.

The issue price is Rs 810 to Rs 815 per share. SIS IPO would get listed on BSE/NSE.

Its revenue is increased from Rs 3,850 Crores for FY16 to Rs 4,577 Crores for FY17. 

Its profits are increased from Rs 64 Crores for FY16 to Rs 90.5 Crores for FY17. 

It got SEBI approval in Jan-2017, however there is delay in IPO.

IPO is opening for subscription on 31st July, 2017

3. *Shalby Hospitals IPO*

Shalby Hospitals is a multi speciality hospital chain operator in India. Its hospitals are tertiary care hospitals, few of which also offer quaternary healthcare services to patients in various areas of specialisation such as orthopaedics, complex joint replacements, cardiology, neurology, oncology, and renal transplantations. They provide inpatient and outpatient healthcare services through eight fully operational hospitals, having an aggregate operational bed count of 781 beds, as on March 31, 2017.

The issue size is contains fresh issue of approx. Rs 580 Crores + Offer for sale for 10 Lakh shares from promoters.

The issue price is yet to be known.

Shalby Hospitals IPO would get listed on BSE/NSE.

Its revenue is increased from Rs 265 Crores for FY15 to Rs 289 Crores for FY16. For 9 month ended Dec-16, its revenues are at Rs 244 Crores.

Its profits are increased from Rs 28 Crores for FY15 to Rs 39.6 Crores for FY16. For 9 months ended Dec-16, its profits are at Rs 47.5 Crores.

It got SEBI approval for its IPO on 18 July, 2017.

IPO is expected in August, 2017.

 4. *Capacite Infra Projects IPO*

Mumbai-based construction company Capacit’e Infraprojects Ltd received SEBI approval last month in June for its IPO.

The company will use the proceeds for working capital requirements, purchase of capital assets and general corporate purposes.

The issue size is Rs 400 Crores approx. The issue price is yet to be known.

Capacite InfraProjects IPO would get listed on BSE/NSE.

The company’s consolidated revenue grew from Rs 214 crore in FY14 to Rs 853 crore in FY16 and Rs 847 crore for the nine-month period ended 31 December, 2016.

It got SEBI approval for its IPO in June, 2017.

IPO is expected in August, 2017.

5. *Apex Frozen IPO*

Andhra Pradesh-based Apex Frozen is the integrated producer and exporter of shelf stable quality aquaculture products. It supplies ready-to-cook products to a diversified customer base consisting of food companies, retail chains, restaurants, club stores and distributors.

Apex Frozen’s IPO proceeds will be used for setting up a new shrimp processing unit in East Godavari district, Andhra Pradesh, and general corporate purposes.

The initial offer will comprise a fresh issue of 72.5 lakh shares and on offer for sale (OFS) of up to 14.5 lakh by the existing shareholders, according to the draft red herring prospectus (DRHP). The issue price is yet to be known.

Apex Frozenfoods IPO would get listed on BSE/NSE.

Its revenue is increased from Rs 604 Crores for FY15 to Rs 608 Crores for FY16. For 9 month ended Dec-16, its revenues are at Rs 541 Crores.

Its profits are increased from Rs 18.3 Crores for FY15 to Rs 19.3 Crores for FY16. For 9 months ended Dec-16, its profits are at Rs 16.3 Crores.

It got SEBI approval recently in July, 2017

IPO is expected by end of August, 2017.

6. *Matrimony.com IPO*

Matrimony.com runs online match business under bharatmatrimony brand.

The issue size is approx. Rs 350 Crores consisting of fresh issue of Rs 130 Crores and Offer for sale of 37.67 Lakh shares.

The issue price is yet to be known. Matrimony.com IPO would get listed on BSE/NSE.

Its revenue is increased from Rs 255 Crores for FY16 to Rs 292 Crores for FY17.

Its incurred loss of Rs 75 Crores for FY16 and profit of Rs 43.8 Crores for FY17. Matrimony.com IPO got SEBI approval on 18 July, 2017.

Expected date of the IPO is in August, 2017. 

 7. *Khadim India IPO*

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Khadim India is leading footwear brand and 2 largest footwear retailer in India in terms of retail stores. It has 829 Khadim Branded exclusive retail showrooms in 23 states across India.

Size of the issue is yet to be known. The issue price is yet to be known.

Khadim India IPO would get listed on BSE/NSE.

Its revenue is increased from Rs 538 Crores for FY16 to Rs 625 Crores for FY17.

Its profits are increased from Rs 25 Crores for FY16 to Rs 30.7 Crores for FY17.

Khadim India IPO has submitted Draft Red Hearing Prospectus (DRHP) in 1 week of July IPO is expected in Aug or early September, 2017.

8 *SBI Life Insurance IPO*

SBI Life Insurance which is joint venture between SBI and BNP Paribas Cardif is the 2 life insurance company that is coming up for IPO after ICICI Life Insurance. They are India’s leading private life insurer, in terms of New Business Premium generated in each fiscal year, since Fiscal 2010.

They have also increased its market share of New Business Premium generated among private life insurers in India, from 15.87% in Fiscal 2015 to 20.04% in Fiscal 2017.

The issue price is yet to be known. SBI Life Insurance IPO would get listed on BSE/NSE.

Its revenue is increased from Rs 15,665 Crores for FY16 to Rs 20,852 Crores for FY17.

Its profits are increased from Rs 3,690 Crores for FY16 to Rs 4,464 Crores for FY17.

It has filed DRHP on 17 July, 2017 with SEBI.

IPO is expected in September, 2017.

9 *ICICI Lombard Insurance IPO*

It is a joint venture between ICICI Bank and Fairfax. It is first non life insurance company in India that is coming up for IPO. 

They were the largest private-sector non-life insurer in India based on gross direct premium income in fiscal 2017, a position they have maintained since fiscal 2004 after being one of the first few private

sector companies to commence operations in the sector in fiscal 2001. They offer its customers a comprehensive and well-diversified range of products, including motor, health, crop/weather, fire, personal accident, marine, engineering and liability insurance, through multiple distribution channels. They were founded as a joint venture between ICICI Bank Limited, India’s largest private-sector bank in terms of consolidated total

Assets with an asset base of Rs 9.9 trillion at March 31, 2017, and Fairfax Financial Holdings Limited, a Canadian based holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management with US$43.38 billion of total assets at December 31, 2016.

The issue price is yet to be known. ICICI Lombard Insurance IPO would get listed on BSE/NSE.

Its revenue is increased from Rs 5,804 Crores for FY16 to Rs 7,180 Crores for FY17.

Its profits are increased from Rs 5,040 Crores for FY16 to Rs 6,221 Crores for FY17.

ICICI Lombard General Insurance has filed DRHP on 14 July, 2017 with SEBI.

IPO is expected in September, 2017.

10 *Pratap Snacks IPO*

They are one of the top six Indian snack food companies in terms of revenues in 2016, and among the fastest growing companies in the Indian organised snack market between 2010 and 2016. Based on the FS Report, the snacks market in India is estimated at approximately 550 billion, out of which organised snack market is estimated at 220 billion and grew at a CAGR of 14% between 2012 and 2016. With increasing competition and cost pressure, there has been a gradual shift from an unorganized to organized sector across the various product segments. They are present in three major savoury snack food categories in India and all its products are sold under the Yellow Diamond brand.

The issue price is yet to be known. IPO would get listed on BSE/NSE.

Its revenue is increased from Rs 758 Crores for FY16 to Rs 905 Crores for FY17.

Its profits are decreased from Rs 27 Crores for FY16 to Rs 9.8 Crores for FY17.

It has filed DRHP in last week of June, 2017 with SEBI.

IPO Share IPO Prospectus IPO

IPO is expected in August or September, 2017.

11 *HDFC Life Insurance IPO*

It is 3 biggest life insurance company in India. The issue price is yet to be known.

The IPO would get listed on BSE/NSE.

Its revenue is increased from Rs 16,313 Crores for FY16 to Rs 19,445 Crores for FY17.

Its profits are increased from Rs 818 Crores for FY16 to Rs 892 Crores for FY17.

It is planning to file DRHP with SEBI very soon. Since the process may take time.

it is unlikely that this IPO would come before Sep, 2017

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 ...