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 3,500 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

Multi Commodity Exchange of India Ltd. (MCX), has entered the capital markets with an IPO of 6,427,378 Equity Shares of Rs.10/- each from today. The shares would be offered in a price band of Rs.860/- to Rs.1,032/- per equity share. The IPO would close for subscription on February 24, 2012

Multi Commodity Exchange of India Ltd. (MCX) is the Indian electronic commodity futures exchange. The company is taking an entry in the markets with expectations from many of reviving the bleeding IPO market. Does it have what it takes? Let's try and find out in this Detailed Analysis on MCX IPO from Indian IPO Blog Insights

Check back Indian IPO Blog for latest subscription status updates on the MCX IPO!

Indo Thai Securities Limited has entered the capital markets with a Public issue of 40,00,000 Equity Shares of Rs.10/- each. The Issue would remain open for subscription between Sep 30, 2011 to Oct 5, 2011

The Price Band for the 100% Book Building Issue is fixed at Rs.70/- to Rs.84/- per equity share with a bid lot of 80 Equity Shares and in multiples thereof. Corporate Strategic Allianz Limited is the Book Running Lead Manager to the Issue with Hem Securities Limited being its Syndicate Member and Sharepro Services (India) Private Limited being the Registrar to the Issue


Company Profile:
Indo Thai Securities is an Indian Stock Broking Company providing trading services in Indian Equity Market (BSE and NSE), Future & Options and Currency Derivatives Segments. The company also provides depository services through Central Depository Services (India) Limited. Other services offered by Indo Thai Securities includes Mutual Fund Service System (MFSS) & Interest Rate Futures (IRF) from NSE. The company is promoted by Mr. Parasmal Doshi and Mr. Dhanpal Doshi

Click here to read the complete analysis on Indo Thai Securities Limited IPO

Source: Indian IPO Blog Insights

Taksheel Solutions Limited, an IT company serving the financial services industry, has entered the capital markets with an IPO of 55,00,000 Equity Shares of Rs.10/- each to be issued in a Price Band of Rs.130/- to Rs.150/- per equity share. Applications can be made in a Bid Lot of 45 Equity Shares and in multiples thereof

The IPO has been rated by Rating Agency CARE. The IPO would remain open for subscription between September 29, 2011 and October 4, 2011. PNB Investment Services Limited is the Book Running Lead Manager to the Issue. The Syndicate Members are PNB Investment Services Limited, Reliance Securities Limited and Inventure Growth and Securities Limited, while Bigshare Services Pvt. Ltd. is the Registrar to the Issue

Company Profile:
Taksheel Solutions Limited is IT company engaged in the business of providing products and services to the financial services industry, Information Technology & Telecom. The Company is headquartered in Hyderabad, and provides professional IT services to global clients. Taksheel offers Wealth Management Technology Solutions, Telecom Solutions, Business Intelligence, Data Warehousing, Application Development and Application Maintenance

Taksheel focuses vitally on business sectors such as Finance, Information Technology, and Telecom. Entire offering supports customization and flexibility to customer’s requirement and provides extensive support with pre-defined SLA’s

According to the company's website the following are some of the services that Taksheel Solutions has on offer:

Wealth Management: Wealth management to financial institutions offerings such as Asset and Investment managers, Brokerage houses, Insurance, Hedge funds, Trusts and Family Offices.

Telecom: Enterprise IP telephony Solutions, Carrier Switching & Billing Solutions, Contact Center Solutions, IVRS, SMSC, Voice & Video Conference solutions, Chat platforms, Content Delivery Platforms, Closed Private GSM network (CPMN) and more.

Information Technology: Enterprise Network Implementation(LAN,WAN,MAN), OS migration to open source, Software Development, Application customization, Managed IT services (Desktop,Server,Network,NOCsupport) Server Implementation & Support(Windows,Unix,Sun,Linux),Data Storage Network(SAN,NAS),Network & Data Security Solutions, Network Monitoring System, NOC support Systems, Data center and Disaster recovery center implementation, CRM solution


IPO Grading: The Issue has been graded by Credit Analysis & Research Ltd (CARE) and CARE has assigned a ‘CARE IPO Grade 2’ [Grade Two] indicates “Below average fundamentals”. The IPO Grading is assigned on a 5 point scale from 1 to 5 with an ‘IPO Grade 5’ indicating strong fundamentals and an ‘IPO Grade 1’ indicating poor fundamentals


Click here to download complete grading report


Analysis of Financial Information:
The following is the Balance Sheet and Profit and Loss A/c. of the company as per the Red Herring Prospectus filed by the company:



The Balance Sheet shows Reserves and Surplus figure at around Rs.74.25 Crores, which is comforting to look at as a percentage of Total Shareholders' funds, especially after looking at Balance Sheets of some of the recent IPOs where there is serious crunch in this area.

A spurt both in the topline as well as the Net Profit can be seen in FY11 when compared to the rate of growth in both of these attributes in the earlier years. For the FY11, the company has reported a Total Income at around Rs.147.26 Crores and posted a PAT of around Rs.27.42 Crores, earning a Net Profit margin of around 18.62%. This is largely due to the fact that the company operates in SEZ and therefore the tax liability is NIL. However, it has to be noted that with effect from FY2012 onwards, this profit margin is not expected to be sustained since MAT @ 18.5% will be applicable to the company.

The Company has posted a PAT of Rs.27.42 Crores in FY11, with around 1.66 Crores shares outstanding, translating into an EPS of Rs.16.51 per share. At the upper end of the Price Band, the PE multiple would work out to be around 9 times the earning per share, which can be considered at the higher end considering that many listed peers are trading in single digit PE multiples


Concluding Remarks:
The company, unlike most others coming up with an Issue these days, does not look too bad fundamentally. However, it must be remembered that the high profitability is due to the tax holiday enjoyed by the company. Also, there are risks associated with its geographical presence in the United States where the IT sector is expected to face the adverse effects of the risk of global slowdown. The IPO may give some amount of listing gains. However, it is debatable whether the company would be a good addition to the portfolio for the long term

Onelife Capital Advisors Limited (OCAL), an Indian financial service provider, is entering the capital markets with a Public Issue of 33,50,000 Equity Shares of Rs 10 each. The Issue would remain open for subscription between Wednesday, September 28, 2011 and Tuesday, October 4, 2011

The Pricing for the 100% Book Building Issue is made in a price band of Rs.100/- to Rs.110/- per equity share having a Face Value of Rs.10/- each. The IPO has been rated by CARE. Applications in the IPO can be made in a bid lot of 50 Equity Shares and in multiples thereof. The minimum application, therefore would work out to be Rs.5,000/- at the lower end of the price band and Rs.5,500/- at the upper end of the band.

Click here to read Indian IPO Blog Insight on Onelife Capital Advisors IPO

M and B Switchgears Limited, engaged in manufacturing of distribution transformers, power transformers, furnace/rectifier transformers and special purpose transformers, has entered the capital markets with an Initial Public Offer (IPO) of 50,00,000 Equity Shares with a Face Value of Rs.10/- each

The 100% Book Building Issue is offered in a Price Band of Rs.180/- to Rs.186/- per equity share with a bid lot of 30 Equity Shares and in multiples thereof. The IPO has been rated by rating agency ICRA. D&A Financial Services Private Limited is the Book Running Lead Manager to the Issue. Sumpoorna Portfolio Limited and Inventure Growth and Securities Limited are the Syndicate Members while Bigshare Services Private Limited is the Registrar to the Issue. The IPO is scheduled to remain open for subscription between Wednesday, September 28, 2011 to Wednesday, October 05, 2011


Company Profile:
M and B Switchgears Limited is in business of manufacturing transformers for more than 30 years. The Company's existing annual production capacity in terms of KVA is 75,000 KVA of transformer per month on single shift basis and annual aggregate capacity is 9,00,000 KVA per annum.

M and B Switchgears Limited has the capacity to manufacture 5,109 transformers per annum. Company's client-base includes almost all electricity boards and many industrial groups including steel, power, pharma, textile, automobile etc., public sector companies like NCL, SECL, WCL, Ordanace factory and various other government utilities.

The company is promoted by Mr. Shyam Sunder Mundra, Mr. Vikalp Mundra and Mr. Anurag Mundra

Click here to read complete analysis of the IPO on Indian IPO Blog Insights