QIB: 63.52 times
HNI: 288.87 times
Retail: 8.11 times
Employees: 0.49 times
Overall: 76.05 times
Showing posts with label IPO in August 2017. Show all posts
Showing posts with label IPO in August 2017. Show all posts
Thursday, August 3, 2017
Cochin Shipyard IPO Final subscription status till 7 PM
IndianIPOBlog
August 03, 2017
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Cochin Shipyard IPO closes - Should you go for it?
IndianIPOBlog
August 03, 2017
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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
IndianIPOBlog
August 03, 2017
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QIB: 5.64x
HNI: 1.66x
Retail: 19.51x
Overall: 7.07 times
Tuesday, August 1, 2017
Cochin Shipyard IPO - Brokerage Recommendations summary
IndianIPOBlog
August 01, 2017
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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
IndianIPOBlog
August 01, 2017
0
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
IndianIPOBlog
August 01, 2017
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QIB subscription: 0.72 times
HNI subscription: 0.22 times
Retail subscription: 1.57 times
Employees subscription: 0.12 times
Overall subscription: 0.92 times
HNI subscription: 0.22 times
Retail subscription: 1.57 times
Employees subscription: 0.12 times
Overall subscription: 0.92 times