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Sobha Developers Ltd IPO 114 times subscribed
Thursday, November 30, 2006

The IPO of Sobha Developers Ltd is heavily oversubscribed. Compared to Parsvnath developers Ltd, the size of Sobha IPO was half but it did see lot of applications on the last day of the IPO.

NOTE: If you are having problems with Intime Spectrun w.r.t Parsvnath IPO - Refund or Shares not credited to your demat account, send me an e-mail to nascentnet@yahoo.com with your application number and city. We are launching a SEBI complaint against Parsvnath.


The final subscription figures of Sobha Developers that I just received on fax are as follows,

Qualified Institutional Buyers (QIBs) 168.8409 times subscribed
Non Institutional Investors 193.9597 subscribed
Retail Individual Investors (RIIs) 20.6839 subscribed
Employee Reservation 0.9320 subscribed. So some shares from Employee reservation will be made available to the above categories.

Lets analyze the Retail Individual Category subscription of Sobha Developers.

No of shares Offered: 24,01,282
No of Shares applied at Cut-Off: 4,68,19,100
Therefore, if we assume the IPO is priced at cut-off i.e is Rs640, then the issue is subscribed by 19.49 times. The allotment will be in the inverse ratio of subscription. So even for folks applying 150 shares, the allotment may go for lottery. [Many chances, it will not be known we know the demand in each category]

Good Luck!!! Don't forget to e-mail if you have any complaints about Parsvnath and Intime Spectrum the third rate registrar.

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Published by DalalStreet Business @ 12:51 AM  



ICICI OneSource - FirstSource Indian BPO - IPO
Monday, November 27, 2006

Little did PE and VC investors in 2000-01 knew that Indian BPO operations will lead the second wave of IT outsourcing to India. Those with a vision invested and are now cashing out, prime example Warburg Pincus in WNS Holdings.

ICICI Ltd, India's Citibank which is at the forefront of banking revolution in India invested in a BPO company ICICI OneSource [Renamed as FirstSource] and is now listing the company with an offer for sale of equity shares. ICICI has filed for the draft prospectus and is likely to sell 9.56 crore shares at a price to be determined by book building. Proceedings of the IPO are to be used for acquisitions in BPO space.

Other investors in the company are, Metavante Corp, Temasek Investments, West Bridge Capital and Sequoia Capital.

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Published by DalalStreet Business @ 8:31 AM  



Forthcoming PSU IPOs in India

The Cabinet Committee on Economic Affairs have cleared the IPO offerings of the following PSU companies.
All of these IPOs are likely to hit the market in between Jan-07 and March-07. Stay tuned for more developments.

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Published by DalalStreet Business @ 8:20 AM  



Parsvnath Developers application Allotment Status
Friday, November 24, 2006

Take this link to know the application status for Parsvnath Developers Ltd IPO.

Lanco Infratech IPO Allotment Status can be checked here.

Lanco Infratech Ltd: The stock will list on BSE on November 27, 2006.
Lanco Infratech Ltd BSE Scrip Code : 532778.

The Grey Market Premium for Lanco Infratech is Rs40 and for Parsvnath is Rs125 as on Friday.

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Published by DalalStreet Business @ 9:21 PM  



Zenith Birla Allotment Status - Basis of Allotment
Thursday, November 23, 2006

Finally, Zenith Birla Basis of allotment and Status of allotment can be checked online. Zenith Birla Allotment status is available at Bigshare Registry Online here.Full and firm allotment has been made to Retail Investors.

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Published by DalalStreet Business @ 12:19 AM  



Sobha Developers Ltd IPO - Analysis and Recommendation.
Wednesday, November 22, 2006

After having read the draft and final Red Herring prospectus of the company, here is DalalStreet.Biz detailed analysis and recommendation on Sobha Developers IPO.

Read - Sobha Developers initial Review -1
Read - Sobha Developers Business Line Review
Read - How to value Indian Real Estate Stocks ?

We expect the company's bottomline to grow by 80% over last year at Rs 160 crores for FY07 and 50% for FY08 Rs 240 crores, yielding an EPS of Rs 22 for FY07 and Rs 32.8 for FY08 on fully diluted equity.

Sobha Developers Land bank: Cushman and Wakefield have valued the lands of Sobha Developers and at the lower end, constituting the sum of it's Land Reserves [Rs 3,971 crores] + Land Arrangements [Rs 2, 306 crores] is Rs 6277 crores. NAV of Land bank at lower end is Rs 859 per equity share. On the higher end the Land Bank is valued at Rs 6937 crores which translates to Rs 950 per share.

Sobha gets full credit for its management which is visible by the number of contracts it fulfills for India's top IT company, Infosys Technologies Ltd.

Sobha Developers pre-IPO private placement: Sobha did a private placement to Kotak Mahindra Private Equity Fund and Bennett & Coleman for 5.83 Lakh shares at Rs 617 per share on Oct-28-2006.

Sobha IPO Final Recommendation: Sobha's discounting maybe based on Cash Flow more than Land Bank as it derives significant part of its income from contract works. Majority of the indicators are in favor of applying, we still advise caution and recommend that only investors who are willing to hold for a period of atleast 12 months should apply in the event of market crash. Your critics and comments are most welcome.

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Published by DalalStreet Business @ 1:15 AM  



Sobha Developers Ltd IPO - Business Line Critics
Sunday, November 19, 2006

DalalStreet.Biz initiated its coverage on Sobha developers IPO last week. Sobha Developers Review - 1 is here and Sobha Developers Land Bank Details is available here.

Vidya Bala, writer for Business Line newsppare writes that, Sobha's offer price at Rs 550 or Rs 640 is at a P/E multiple of 19 or 22 times its expected earnings for Fy08 [Not FY07]. Why isn't Vidya writing about FY07 ? Why isn't Vidya clearly stating the figures ? Oho! their can be some Page3 scenes going in the background :-) . Lets analyze this. Offer price of Rs 640 at 22 times P/E translates into earnings per share of Rs 29 for FY08. Which translates into a Net profit of Rs 211 crores for FY08 on an equity of 7.29 crore shares of face value Rs10 each.

Sobha's profits for first half of FY07 (sept-30th 2006) is Rs 53 crores. It has recorded a 137% growth over first half of last year. So if we assume Sobha grows at 100% for full year its net profits for FY07 will be 180 crores. So in FY08 will Sobha Developers just grow by mere 17.20% ? [Net Profit of 211 crores as arrived above.] When and where will growth slowdown ? I hope you now understand what is the problem with Business Line Analysis.

Business Line also writes that investors with HIGH RISK APPETITE can subscribe to the issue. Your thoughts and comments are appreciated. Mail them to nascentnet AT Yahoo Dot Com.

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Published by DalalStreet Business @ 7:22 PM  



Info Edge India - Basis of allotment
Thursday, November 16, 2006

The basis of allotment for Info Edge India IPO Limited is as mentioned below. This is for Retail Individual Investors.

Info Edge (India)

Oversubscription Figures:

HNI : 61.46106 times

RETAIL : 11.10637 times


Basis of allocation under Retail:

No of Shares Applied

No. of Shares Allotted

Ratio

20

20

9:100

40

20

9:50

60

20

27:100

80

20

9:25

100

20

9:20

120

20

27:50

140

20

63:100

160

20

18:25

180

20

81:100

200

20

9:10

220

20

FIRM

240

22

FIRM

260

24

FIRM

280

25

FIRM

300

27

FIRM


You can check if you are allotted or not on Intime Spectrum registry here.


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Published by DalalStreet Business @ 10:17 AM  



Info Edge India Ltd Allotment Status and Details
Wednesday, November 15, 2006

The Info Edge India Ltd IPO allotment and other details are now available. You can check it on Intime Spectrum here.

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Published by DalalStreet Business @ 7:28 PM  



Blue Bird (India) Limited IPO - Review - 1
Monday, November 13, 2006

Blue Bird (India) Limited, a leading manufacturer of paper-based notebook and stationery products with the highest market share of 48% amongst large, organised players in India, is entering the capital market with a public issue.

Issue Size: No of 8,775,000 equity shares of Rs. 10 each at a premium to be decided through the 100% book-building process. The price band for the issue has been fixed at Rs. 90 to Rs. 105.

Date: Issue opens for subscription/bids on November 16, 2006 and closes on November 22, 2006.


Out of the net offer to the public, 50% is reserved for allotment to Qualified Institutional Buyers, of which 5% is reserved for allotment to Mutual Funds. Further, 15% is reserved for allotment on a proportionate basis to Non-Institutional Buyers and the balance 35% will be allotted to Retail Individual Bidders on a proportionate basis. The issue constitutes 25.07% of the fully-diluted post-issue capital of the company.

The company has privately placed 1,225,000 equity shares at a price of Rs. 98 per share with India China Pre-IPO Equity (Mauritius) Limited, a SEBI-registered Foreign Venture Capital Investor which has appointed ST Asset Management Limited, wholly owned by Temasek Holdings (Private) Limited, as its investment manager.

The company is raising capital through this public issue to finance the construction of its second major notebook manufacturing and printing unit in South India; to expand capacity at its existing plant in Pune and purchase the registered and corporate office premises presently on leave and licence; to expand its network of sales and distribution offices throughout India; to augment its long-term working capital requirements; and to repay some existing long-term debts.

Blue Bird (India) Limited, under its “Blue Bird” brand of paper-based notebooks, has built a strong presence in western and southern India. According to a survey carried out by AC Nielsen ORG-MARG, approximately 80% of the Indian notebook and stationery market is controlled by unorganized, local players. Of the 20% of the market catered to by the organised segment, 15% is controlled by large, national players and the balance 5% by medium-sized, regional players. AC Nielsen ORG-MARG has estimated that Blue Bird enjoys the highest market share of 48% of the total market share controlled by large, organised players.

In addition to notebooks, the company also manufactures products like files, perforated pads, registers and filler papers as part of its stationery business. Moreover, the company publishes study aids/educational materials and children’s books with in-house developed content and is also engaged in commercial printing of third-party content including textbooks, magazines, catalogues, calendars and annual reports.

During fiscal 2005, Blue Bird began export of notebooks and printed materials to Kenya, Ghana and South Africa. The company plans to expand both its market presence within India and in sub-Saharan Africa, with increased marketing efforts and penetration in the export market.

Financials: Blue Bird had total income of Rs. 401.70 crores and net profit of Rs. 25.12 crores in fiscal 2006. The company has posted improved performance during the first-half of the current year. For the period ending September 30, 2006, the company reported a total income of Rs. 237.55 crores, 18.34% higher compared to the previous year’s first-half total income of Rs. 200.75 crores. During the same period, net profit for the first half of fiscal 2007 at Rs. 15.10 crores was 19.65% higher compared to the previous year’s first-half net profit of 12.62 crores.

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Published by DalalStreet Business @ 2:31 PM  



Lanco Infratech Ltd IPO Subscription Details - Final
Saturday, November 11, 2006

Lanco Infratech Limited overall subscription: 11.36 times
QIBs inclusing FIIs - 18.4834 times
Non Institutional- 1.6754 times
Retail Individual Investors - 2.4758 times
Employee-1.0532 times (99% of the bids are priced bids)

This means if you are a Retail Investor with an application for more than 75 shares, you will get firm allotment.

I'll keep you informed about allotment details. It will be made available on In-Time Spectrum.

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Published by DalalStreet Business @ 7:30 AM  



Parsvnath Developers IPO Subscription Details - Final

The IPO of Real estate major, Parsvnath Developers was heavily oversubscribed. The total subscription stood at around 64 times. Here is the break-up

Qualified Institutional Buyers (QIBs) 81.4532 Subscription (Heavy Demand from FIIs).
Non Institutional Investors 100.4308 Subscription
Retail Individual Investors (RIIs) 10.9353
Employee 2.6669 Subscription

This means all retail applications for 220 shares or more will get a firm allotment.

This is according to data obtained from BSE Terminal at Midnight 00:00 hours exclusively by DalalStreet.Biz analysts.

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Published by DalalStreet Business @ 7:08 AM  



IPO Investment Pattern by Retail Indian Investors - Review and Analysis
Thursday, November 09, 2006

I decided to explore the investment pattern of Retail Indian Investors in various IPOs in 2006. Based on this pattern, and various other factors, you can predict how retail investors are likely to invest in an IPO.

Below you will find, Name of Company, Retail Investors collection in the IPO, Issue Price / Current Market Price.

Reliance Petroleum Ltd - Rs12,100 crores , Rs 60 / Rs65
Sun TV Ltd - Rs 540 crores, Rs 875 / Rs1270
Tech Mahindra - Rs 1120 crores, Rs 365 / Rs995
Voltamp Transformers Ltd - Rs 327 crores, Rs 345 / Rs 511
Action Construction Equipment - Rs 578 crores, Rs 135 / Rs 251
GVK Ltd - Rs1048 crores, Rs 310 / Rs 248
Unity Infrastructure - Rs 140 crores, Rs 675 / Rs 555
GMR Infrastructure - Rs 144 crores, Rs 210 , Rs351

You can see that Reliance is still the most sought after company and everybody from Grandfathers to kids must have applied in that IPO. SunTV and Tech Mahindra equally good brand names also saw terrific subscription and demand.

Retail investor who has burnt his fingers in GVK and Unity infrastructure issue is unlikely to subscribe in Lanco Infra and may subscribe in Parsvnath.

Info Edge India has sucked Rs360 crores from retail investors already. Based on various other factors I expect the Parsvnath Developers Ltd issue to subscribe 3 times (collection of Rs 1,000 crores) in the Retail category. And in the best case it may subscribe over 5 times (collection of Rs 1,500 crores) in the retail category.

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Published by DalalStreet Business @ 12:03 AM  



Sobha Developers Ltd IPO - Review Part -1
Wednesday, November 08, 2006

Bengalooru based Sobha Developers Ltd is planning for an IPO which is likely to be in the range of Rs500 to Rs550 crores.

Sobha Developers IPO Proposal:
Fresh issue of 88.9 lakh equity shares of Rs 10 each at a price band of Rs 550-640 per share through the 100% book-building process, which will comprise 12.2% of the company's fully diluted equity base.

Expected Date of Sobha developers IPO: November 23 and 29, 2006. So by this time you will have got your Parsvnath Developers Ltd and Lanco Infratech Ltd IPO money refunded.

The IPO proceeds will be used to finance land acquisitions, construction and development of existing and proposed residential projects and for retiring certain loans.

Sobha has land bank of about 2,747 acres in Bangalore / Bengalooru, Mysore / Mysooru, Pune, Chennai, Cochin, Thrissur and Coimbatore. Its core competency is in IT and is most preffered construction company by Infosys Technologies Ltd.

Last month, Sobha completed a pre-IPO placement of 4.8 lakh shares with Kotak Mahindra Private Equity Trustee and 97,245 shares with Bennett, Coleman & Company Ltd @ ??? I'll tell you as soon as I get this info.

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Published by DalalStreet Business @ 9:27 PM  



Parsvnath Developers Limited - IPO Review
Sunday, November 05, 2006

Company: Parsvnath Developers Limited (PDL)
IPO Dates: Nov-06-2006 t oNov-10-2006.
Issue Price: 100% Book Building. Range Rs250 to Rs300.
Issue Size : 33,238,000 Shares Plus Green Shoe Option of 3,087,800 shares.
Total Issue Size= 36,325,800 shares * Rs250 = Rs908 crores
Or 36,325,800 shares * Rs300 = Rs1089.7 crores
Retail Investors have 30% reservation.

Company Background: The company is currently engaged in a variety of projects, 20 integrated townships, 25 residential projects, 27 commercial complexes, including shopping malls, multiplexes, office space and a complete metro station. Further, the company has obtained in-principle government approvals for the development of nine SEZ projects. It is the first company to receive a rating of DR 2-ICRA-NAREDCO from ICRA, which is given for a “strong project development capacity”. It has also receives ISO 9001:2000, ISO 14001:2004, and OHSAS 18001:19999 certifications from RINA. It has diversified business model spanning 14 states and 41 cities. Parsavanath has reputed client list of Biz Bazaar, Raymonds, Spencers, Pizza Hut, McDonalds etc.

It may face risks like any other real estate stock in India due to the overhetaing. No I don't think commodity prices like Iron and Cement will affect its bottomline as commodities have turned bearish now. (Courtesy: Shankar Sharma and Mark Mobius)

Parsvnath SEZ Plans: Parsvnath is developing 1,500 Hectares together in 9 SEZs.

Parsvnath Company Financials: YoY Growth in Income and PAT is as follows. Figures in crores.
FY2002. Income=27.295 PAT=3.29
FY2003. Income=69.38 (+154%) PAT=11.46 (+248%)
FY2004. Income=112.945 (+62.8%) PAT=18.4 (+60%)
FY2005. Income=306.846 (+171%) PAT=65.6 (+256%)
FY2006. Income=653.67 (+130%) PAT=106.9 (+63%)

Q1FY2007. Income=249 and PAT=36.5. Lets be conservative and annualise the same earnings, we get PAT for FY2007 at 146.

Parsvnath Post-Equity: Post Equity considering the Green shoe option is exercised, 184.696
Expected EPS = Rs7.90

At the issue price of Rs250 or Rs300, the forward PE Multiple on EPS of Rs7.9 is 31.6 or 37.97.

DalalStreet.Biz expects that investors will have some gains on listing. By Tuesday, after talking to our sources in Mumbai, we will come with a clear recommendation.

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Published by DalalStreet Business @ 1:47 AM  



Info Edge India IPO subscribed by 55 Times
Friday, November 03, 2006

The Naukri.Com IPO is finally over.
Total Issue Size : 5323851
Total Bids Received at Cut-off Price: 16110180
No. of times issue is subscribed: 54.77

Retail Individual Investors portion subscribed by 12.2133

Employyes of Info Edge India don't have confidence in their own company and issue was UNDERSCRIBED in employee portion. Just 0.1141%

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Published by DalalStreet Business @ 3:13 AM