Galaxy Surfactants Limited is a Mumbai based manufacturer of surfactants and other specialty ingredients for the personal care and home care industries. The ingredients company manufacture are commonly used in consumer-centric personal care and home care products like skin care, oral care, hair care, cosmetics, toiletries and detergent products. Galaxy Surfactants product portfolio includes over 200 product grades, which are marketed to over 1,700 customers in 70 countries

Galaxy Surfactants products are classified in 2 categories:
1. Performance Surfactants: This includes anionic surfactants and non-ionic surfactants.
2. Speciality Care Products: This includes amphoteric surfactants, cationic surfactants, UV filters, preservatives, preservative blends and surfactant blends, speciality ingredients such as mild surfactants, syndet and transparent bathing bars and proteins, fatty alkanolamides and fatty acid esters, and other care products.

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

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

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

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!

Multi Commodity Exchange of India Ltd (MCX), the Indian electronic commodity futures exchange, is entering the capital markets with an Initial Public Offering (IPO) with a certain amount of bang around it and an expectation 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

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

Source:  Indian IPO Blog Insights


RDB Rasayans Ltd, a packaging material manufacturer, engaged in manufacture and sale of FIBC (Jumbo Bags), Woven Sacks and various woven polymer based products, has entered the capital markets with Public Issue of 45, 00,000 Equity Shares of Rs.10/- each. The IPO would remain open for subscription for 3 days between September 21, 2011 and September 23, 2011

The Pricing of the 100% Book Building Issue has been done rather ambitiously at Rs.72/- on the lower end of the price band and Rs.79/- at the upper end of the price band. Chartered Capital And Investment Limited is the Book Running Lead Manager as well as the Syndicate Member for the IPO, while Link Intime India Pvt. Ltd. is the Registrar to the Issue. Applications can be made in a Price Band of 80 Equity Shares and in multiples thereof. Brickwork Ratings India Private Limited has assigned the IPO Grading to the Issue

A factor worthy of a note is that the equity shares will be listed only on the Bombay Stock Exchange (BSE) and not on National Stock Exchange (NSE)

Company Background:
RDB Rasayans Ltd. is a subsidiary of RDB Industries Ltd. and engaged in manufacture and sale of FIBC (Jumbo Bags) and Woven Sacks and and various woven polymer based products like container liners, protective irrigation system, canal liners, etc. These products use fertilizers, cement, polymers, chemicals, textiles, machinery, automobiles and steel industry etc. Its manufacturing facility is located in West Bengal

RDB Rasayans Ltd. manufactures fabrics for the manufacture of FIBC and sacks; flat and triplex tapes in India. Its products include bulk bags FIBC, such as corner and full loop, circular, sling loop, UN, conductive, and electrostatic bags, as well as standard bulk bags for agricultural products and construction materials; and multiwall bags, which include PP and PE valve bags, and lami bags. RDB Rasayans exports its products to various countries in Europe, Australia, and the Middle East. The company was founded in 1995 and is based in Kolkata, India.

It can be seen that the company's product portfolio essentially consists of only Bulk Bags (FIBC) and Multiwall Bags. The Company plans to utilize the proceeds from the IPO to finance the capital expenditure to enhance the manufacturing capacity by establishing another unit besides meeting the issue expenses and general corporate purposes


IPO Grading:
Brickwork Ratings (BWR) has assigned BWR IPO Grade 2 to the proposed IPO of RDB Rasayans Limited (“RRL”). Brickwork Ratings’ BWR IPO Grade 2 indicates "Below Average Fundamentals" for the issue in relation to its peers. BWR assigns IPO grading on a scale of IPO Grade 5 to IPO Grade 1 with Grade 5 signifying strong fundamentals and Grade 1 poor fundamentals of the issue in relation to its peers

According to the Grading Report from Brickwork Ratings, the grading factors RRL’s experienced management team and promoter group, strategic cost/logistic advantage enjoyed by RRL due to their location close to clients and ports, healthy growth of domestic packaging industry as well as demand from Western and European countries  and good clientele and suppliers. The grading is constrained by volatility  of raw material prices and RRL’s inability to fully pass on the production price hikes, negative cash flows from operations, fragmented nature of industry with high level of regulation, number of litigations against the promoter and group companies, risk of adverse business environment with regard to labor unrests and cyclicality of end-user sectors

Click here to download the complete grading report of Brickwork Ratings

Analysis of Financials:
A significant factor worth consideration when it comes to the financials of the company is the negative cash flow from operations. The Prospectus filed with SEBI details the following cash flow position of the company during the preceding five years:

As can be seen from the above, the Net Cash Flow from Operating Activities of the company has been widely volatile and also cuts across into the negative quadrant for FY ending on 31-3-2008 and FY ending on 31-3-2011

The following is the company's statement of assets and liabilities and Profit and Loss statement as per the RHP filed with SEBI:



For the FY ending 31-3-2011, on a Sales of around Rs.46.13 Crs, the company has posted a PAT of only about Rs.1.80 Crs, which implies a profit margin of less than 4% of the revenue. The story in earlier four years has also been quite similar with profit to sales margin remaining under 6% in those years as well

The Equity base for the company is also comparatively high with Equity Share Capital alone constituting around 74% of the total Net Worth of the company. For the FY11, the EPS of the company comes to around 1.37, which when compared to the Price Band, gives an exorbitant PE multiple of around 53 times even at the lower end of the Price Band.

Special Remarks:
The general volatility of raw material prices and RRL’s inability to fully pass on the production price hikes may result in lower profit margins leading to low profitability in future. Besides, negative cash flows from operations and a number of litigations against the promoter and group companies plays a significant role in denting the credibility of the IPO. Investors may want to give the IPO a skip and opt for listed stocks with better profit margins and stronger fundamentals

Source:  Indian IPO Blog Insights

Prakash Constrowell Limited, a construction company headquartered in Nashik, Maharashtra, has entered the capital markets with an Initial Public Offer (IPO) to raise Rs.60 Crores. The issue would remain open for subscription between September 19, 2011 and September 21, 2011

The 100% Book Building Issue would be in a price band of Rs.130/- to Rs.138/- per equity share for shares having a Face Value of Rs.10/- each. The applications can be made in a bid lot of 50 Equity Shares and in multiples thereof. Intensive Fiscal Services Private Limited, based in Mumbai is the Book Running Lead Manager to the Issue while Bigshare Services Pvt. Ltd. is the Registrar to the issue.

Click here to read analysis on Prakash Controwell IPO from Indian IPO Blog - Insights