Aishwarya Telecom - Startling Debut
Wednesday, May 07, 2008
Aishwarya Telecom stock debuted at Rs 50.10 on BSE, a premium of 43.14% over its issue price of Rs 35. The stock hit a high of Rs 76.90 and a low of Rs 50.10 so far during the day.Aishwarya Telecom had fixed the issue price at Rs 35 per equity share for its with initial public offering of 40 lakh shares. The initial public offer of Aishwarya Telecom was subscribed around 20 times.
Aishwarya Telecom mainly supplies its products to major telecom operators. The company also manufactures products for telephone service providers, defence sector, railways, telecom equipment companies and cable TV operators. It also exports cable fault locators to France, Taiwan, Czech Republic and Dubai.
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Published by DalalStreet Business @ 11:32 AM IST.
Forthcoming Public Issues
Tuesday, April 29, 2008
Here is the list of IPOs that are waiting to raise money from the primary Markets in India [PDF]. Almost all the promoters are waiting for the market to look up so that they can command heavy premium :-)
More than 50% of the IPOs that raised money in the past 12 months are quoting below their issue price.
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Published by DalalStreet Business @ 12:45 PM IST.
Performance Analysis of IPOs in 2007
Thursday, March 13, 2008
IPOs in India dried up all of a sudden. Adding to the woes of promoters is poor Industrial Production numbers which led to a massive sell-off on the exchanges. Our IPO Analyst decided to track the performance of folks who have raised money in 2007. Out of the approximately 95 companies that raised money from Retail Investors in India by IPO, 60% are quoting below their issue price.Remember, these are the same issues where retailers flocked by looking at FII subscription. However, FIIs have also turned speculators in the primary market and have sold aggressively.
Below is the list which our analyst has provided.
Sl. No, Company Name, Last Traded Price, Issue Price, Premium/Discount
1 Broadcast Initiatives Limited 30.5 120 -75%
2 House of Pearl Fashions Limited 164.5 550 -70%
3 IVR Prime Urban Developers Limited 196.8 550 -64%
4 EMPEE DISTILLERIES LIMITED 153 400 -62%
5 Oriental Trimex Limited 18.85 48 -61%
6 Alpa Laboratories Limited 27.3 68 -60%
7 Decolight Ceramics Limited 22.25 54 -59%
8 Abhishek Mills Limited 42.1 100 -58%
9 Insecticides (India) Limited 49.8 115 -57%
10 MANAKSIA LIMITED 72.45 160 -55%
11 Transwarranty Finance Limited 23.7 52 -54%
12 Raj Television Network Limited 119.3 257 -54%
13 Precision Pipes and Profiles Company Limited 70.5 150 -53%
14 RENAISSANCE JEWELLERY LIMITED 73.25 150 -51%
15 Mudra Lifestyle Limited 44 90 -51%
16 Nelcast Limited 110 219 -50%
17 SMS Pharmaceuticals Limited 192 380 -49%
18 Bang Overseas Limited 106 207 -49%
19 BRIGADE ENTERPRISES LIMITED 204 390 -48%
20 K.P.R. Mill Limited 126 225 -44%
21 Technocraft Industries (India) Limited 58.9 105 -44%
22 Magnum Ventures Limited 17.2 30 -43%
23 Cinemax India Limited 92.25 155 -40%
24 Roman Tarmat Limited 105.3 175 -40%
25 Global Broadcast News Limited 153.1 250 -39%
26 Asian Granito India Limited 60 97 -38%
27 Zylog Systems Limited 219 350 -37%
28 Firstsource Solutions Limited 40.25 64 -37%
29 Kaushalya Infrastructure Limited 38.2 60 -36%
30 Dhanus Technologies Limited 194.2 295 -34%
31 C & C Constructions Limited 191.8 291 -34%
32 KNR Construction Limited 117.5 170 -31%
33 Fortis Healthcare Limited 74.9 108 -31%
34 Purvankara Projects Limited 278 400 -31%
35 CORDS CABLE INDUSTRIES LIMITED 94.45 135 -30%
36 Omaxe Limited 217 310 -30%
37 KOLTE PATIL DEVELOPERS LIMITED 102.85 145 -29%
38 J. Kumar Infraprojects Limited 82.25 110 -25%
39 FUTURE CAPITAL HOLDINGS LIMITED 573 765 -25%
40 MindTree Consulting Limited 332.5 425 -22%
41 Pochiraju Industries Limited 23.5 30 -22%
42 RELIANCE POWER LIMITED 353.2 450 -22%
43 SHRIRAM EPC LIMITED 242.7 300 -19%
44 Central Bank of India 82.6 102 -19%
45 Autoline Industries Limited 191 225 -15%
46 EDELWEISS CAPITAL LIMITED 724.9 825 -12%
47 Transformers And Rectifiers (India) Limited 409 465 -12%
48 Supreme Infrastructure India Limited 95.55 108 -12%
49 Motilal Oswal Financial Services Limited 745 825 -10%
50 BARAK VALLEY CEMENTS LIMITED 38 42 -10%
51 ECLERX SERVICES LIMITED 294 315 -7%
52 BGR ENERGY SYSTEMS LIMITED 451.9 480 -6%
53 ICICI Bank Limited 906.35 940 -4%
54 Euro Ceramics Limited 160 165 -3%
55 Binani Cement Limited 75 75 0%
56 IRB Infrastructure Developers Limited 186.05 185 1%
57 JYOTHY LABORATORIES LIMITED 695 690 1%
58 Tulsi Extrusions Limited 86.15 85 1%
59 Indus Fila Limited 174 170 2%
60 Bharat Earth Movers Limited 1115 1075 4%
61 TAKE Solutions Limited 767 730 5%
62 GSS AMERICA INFOTECH LIMITED 424 400 6%
63 Indowind Energy Limited 69.1 65 6%
64 Meghmani Organics Limited 20.9 19 10%
65 ARIES AGRO LIMITED 145.1 130 12%
66 ONMOBILE GLOBAL LIMITED 546 440 24%
67 DLF Limited 652 525 24%
68 Housing Development and Infrastructure Limited 656 500 31%
69 Page Industries Limited 478 360 33%
70 Evinix Accessories Limited 161 120 34%
71 Idea Cellular Limited 102 75 36%
72 Omnitech Infosolutions Limited 143 105 36%
73 Mundra Port and Special Economic Zone Limited 604 440 37%
74 Advanta India Limited 943.4 640 47%
75 Consolidated Construction Consortium Limited 755.1 510 48%
76 Maytas Infra Limited 590 370 59%
77 Bhagwati Banquets & Hotels Limited 65.15 40 63%
78 Indian Bank 149 91 64%
79 Kaveri Seed Company Limited 291 170 71%
80 Akruti Nirman Limited 930 540 72%
81 Simplex Projects Limited 323 185 75%
82 Power Finance Corporation Limited 152.9 85 80%
83 Power Grid Corporation of India Ltd. 99.8 52 92%
84 ICRA Limited 656.95 330 99%
85 Religare Enterprises Limited 415.05 185 124%
86 Nitin Fire Protection Industries Limited 433 190 128%
87 Koutons Retail India Limited 960 415 131%
88 Time Technoplast Limited 785 315 149%
89 Redington (India) Limited 323 113 186%
90 Vishal Retail Limited 795 270 194%
91 SEL Manufacturing Company Limited 326 90 262%
92 Allied Digital Services Limited 689.9 190 263%
93 Everonn Systems India Limited 667.8 140 377%
94 MIC Electronics Limited 727 150 385%
95 Orbit Corporation Limited 539 110 390%
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Published by DalalStreet Business @ 6:10 PM IST.
Gammon Infrastructure Projects - Avoid
Tuesday, March 11, 2008
Gammon India Ltd, the flagship company of the Gammon Group, is among the leading construction companies in India and also the company which built the Hyderabad Flyover that collapsed :-) [Gamoon Infra]GIPL has 14 projects under its asset portfolio. The projects are fairly diverse spreading across roads, bridges, ports, hydro power projects and biomass power projects. The company is fairly small and hence seeing good growth rates. However, in construction we need scale and size matters.Financials:
The company is cash flow positive and annualizing 6 months FY08 earnings the company is expected to report a Net profit of Rs 24 crore [Rs 32 crore FY07]. At the price band of Rs 167-200, the offer values the company at 33-40 times the expected per share earnings for FY 2010. When market leaders such as Punj Lloyd, Hindustan Constructions, Nagarjuna are available at a discount, we don't find any compelling reason to subscribe to the issue.
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Published by DalalStreet Business @ 12:05 PM IST.
REC - Basis of Allotment + Status
Wednesday, March 05, 2008
The basis of allotment of Rural Electrification Corporation - REC is out. All retail applications for Rs 94,500 / 900 shares have been alloted 900 shares. We had a subscribe recommendation for REC IPO. The stock is expected to be listed in the week of March-17th. See the complete basis of allotment here.
Check the status of your application here.
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Published by DalalStreet Business @ 7:16 PM IST.
REC IPO Subscribed 27.91 times
Friday, February 22, 2008
The IPO of Rural Electrification Corporation was subscribed 27.91 times at 11:00 PM on the final closing day. The retail portion was subscribed 7.67 times.
All retail applications bidding for 480 and above will get atleast 60 shares as firm allotment.All the retail applications for 900 shares [Rs 1 Lakh application] will get firm allotment of 120 shares.
We have a SUBSCRIBE recommendation for the REC IPO.
Labels: REC-IPO-Allotment
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Published by DalalStreet Business @ 11:22 AM IST.
Rural Electrification Corporation - REC - Subscribe
Tuesday, February 19, 2008
Rural Electrification Corporation - REC is a public sector financial institution and a non-banking financial company (NBFC) providing fund and non-fund based services to clients engaged in various aspects of generation, transmission & distribution and related activities in power sector in India.The company was founded with the sole objective of extending finance to and promoting power projects and related activities in India. The company occupies a key position in the government's plans for the growth and development of the Indian power sector, especially in rural areas. It has played and will continue to play a key role in the implementation of government policies and programmes.
The state or centre owned enterprises dominate the power generation, distribution % transmission arena, India is witnessing increased participation by private players. REC employs a pro-active approach in its client relationships. For instance, REC helps its clients prepare a detailed five year plan addressing their anticipated financing needs. Gross NPAs and net NPAs of REC stood at 0.23% and 0.16% as on September 2006 respectively.
The cost of funds stood at 6.55% in the six month period ended September 30, 2007. Moreover, being an NBFC and a public sector undertaking, REC is exempt from the provisions of the Reserve Bank of India (RBI) Act relating to the maintenance of liquid assets and creation of reserve funds.
Financials: REC is a profit making company unlike Reliance Power which is a SHELL company with no CASH PROFITS insight. REC reported a PAT of Rs 522.9 crore for the first half of CFY2008. REC is expected to report an EPS or Rs 12.2 on fully diluted equity by annualizing the results of first half.
REC IPO Details:
Retail portion : Upto 45,665,100 shares
Price Band: Rs90 - Rs105
Fully Diluted Equity: Rs 858.66 crore
Investors can SUBSCRIBE to REC Public Issue at CUT-OFF. Please don't apply on borrowed money because of the volatile markets. We also recommend IPO investors of PFC - Power Finance Corporation to Book Some profits and divert the money into REC.
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Published by DalalStreet Business @ 12:04 PM IST.
Tina Ambani Birthday - Box office Flop for Reliance Power Investors
Monday, February 11, 2008
Feb-11th is the day when the first lady of ADAG group, Tina Munim Ambani celebrates her Birthday. Unfortunately, the day turned out to be a Valentine Mismatch for the ADAG group chairman Anil Ambani. His Dirty Energy IPO closed at Rs 373 a massive 17% discount to issue price after trading below Rs 445 for most of the day.All the Anil Ambani group companies were hammered mercilessly adding to the blood bath on the street.
Reliance Energy Down 18.72%.
Reliance Communications Down 9%
Reliance Capital Down 11%
RNRL Down 17%
AdLab Films Down 16%
One thing is for sure, Anil Ambani has a steep hill to climb and prove that he can execute mega projects in record time and only then the thumbs down given to his group companies will be reversed.
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Published by DalalStreet Business @ 3:55 PM IST.
Emaar MGF Withdraws IPO
Friday, February 08, 2008
Our analyst in Mumbai is informing that the Greedy management of EMAAR MGF Real Estate has withdrawn the IPO.We were the only one to BOLDLY put an AVOID rating on the IPO. However, things changed this late afternoon as QIBs and FIIs withdrew their bids and the subscription fell from 0.83% to just 0.43%.
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Published by DalalStreet Business @ 3:27 PM IST.
IRB Infrastructure Developers - Review
Sunday, February 03, 2008
IRB is an infrastructure development and construction company in India with extensive experience in the roads and highways sector. The Company has established business in the roads sector and has a large portfolio of completed and operational BOT projects in road infrastructure sector.IRB also has an advantage of support of experienced promoters and skilled engineering staff. It has recently diversified into the real estate development sector in order to complement its infrastructure development business. Due to its early entrance in the BOT toll road business, IRB operates a number of BOT projects which contributes to robust cash flow and a healthy bottom-line.
Valuation and Recommendation:
As of August 31, 2007, IRB had a total debt of Rs. 27 bn including fully convertible debentures of Rs. 2.6 bn. IRB is planning to use around 65% of the proceeds toward repayment of loans, even after considering the repayment, the debt-equity ratio remains high at 4.2:1. The company has an order book of Rs 2400 crore.
IRB, at the upper and lower price band, is valued at a forward FY08 P/E of 65.3x and 55x, respectively, which is at a substantial premium when compared with the peer group average of 15-20x. The issue price between Rs 185 - Rs 220 appears expensive compared to peers quoting between 20-25x with larger order books.
Only investors with High Risk appetite may consider investing in the IPO as we have seen downgrades in Infrastructure sector especially on GMR from HSBC and Merill Lynch.
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Published by DalalStreet Business @ 11:25 PM IST.