ICRA IPO Oversubscribed 75 times
Saturday, March 24, 2007
The IPO of ICRA Ltd which closed today is oversubscribed 75 times.
| Qualified Institutional Buyers (QIBs) | 1290550 | 116986920 | 90.6489 |
| Non Institutional Investors | 387165 | 27924100 | 72.1245 |
| Retail Individual Investors (RIIs) | 903385 | 48775960 | 53.9924 |
The retail part of the issue is 54 tiems oversubscribed. That means allotment for Rs 1.0 Lakh application will also be on lottery. The Ratio of allotment will be 1 : 2.7 for the Rs 1.0 lakh application. Come back to see the status of allotment here.
Published by DalalStreet Business @ 9:46 AM
ICRA - Review and Recommendation
Monday, March 19, 2007
ICRA is India's number two credit rating agency after CRISIL. Historically, the income of these agencies is directly proportional to the mood on Dalal Street. Moody's have significant stake in ICRA and will be in full control of the company.
The current IPO, is an offer for sale and none of the proceeds will goto the company where you will be a shareholder. IFCI, SBI and UTI are selling their stake and Moody's will get control of the company. ICRA still has 399 public issues under its belt and they are actively involved in rating the country's debt instruments as well. The company will also benefit from Rating outsourcing services, Technical and Analytical Research of parent company's clients from Wall Street.
On the FLIP side, ICRA has borrowed Rs 50 crore from banks to fund the ESOS Welfare Trust (ESOSWT) for subscription to the preferential allotment made to it under the employee stock option plan (ESOP). The interest costs will take a direct hit on the bottom line of the company.
Financials:
The company doesn't have any topline growth YoY. Total Income for FY2002 was Rs 31.5 crore and for FY2006 it was 35.1 crore. For the 9 Months ending Dec-2006, the company had a top line of Rs 31.9 crore and a PAT of Rs 11.7 crore. Annualizing the company's results on fully diluted equity(Rs 10 crore) ICRA will report an EPS of Rs 15.6 for March-2007.
IPO Offer:
Fully Diluted Equity after IPO: Rs 10.00 crore.
Offer Price: Rs 275 to Rs 300
Retail Offer: 903,385 shares. Issue Size of Retail is mere VERY VERY Small - Rs 24.8 crore to Rs 27 crore.
Recommendation:
ICRA has very good promoters and is a very small company with good opportunities for growth. ICRA has been offered at a P/E of 19.2 at higher end. Comparing this to CRISIL which currently trades over a P/E of 40+, one maybe tempted to apply. However, CRISIL's price at a P/E of 40+ is highly unjustified [You can justify in comment, if you like].
Personally, I like to chase growth stocks [Amtek Auto, Punj Lloyd, Tech Mahindra, etc] and ICRA has to prove that its a growth stock by getting Business and increasing its topline which it hasn't done in the past 4 years. Also since the issue is very small, I am personally skipping the issue since the allotment will be in lottery.
Tags:IPO India, Moodys, ICRA IPO, Invest India
Published by DalalStreet Business @ 7:27 PM
RAJ TV Allotment Status
Monday, March 12, 2007
You can now check the IPO allotment status of Raj TV here. Raj TV IPO was oversubscribed 3 times and the final allotment was done at the upper end of the price band - Rs 257.
Published by DalalStreet Business @ 2:11 PM
Idea and MindTree - Post IPO
Friday, March 09, 2007
Idea Cellular listed just a while ago around Rs 89, 18% premium to issue price. Considering the recent blood bath on Dalal Street, Investors are recommended to exit atleast half of their holdings in Idea Cellular. Going forward, Idea will have a tough time to battle Airtel and other GSM operators because of Birla Groups involvement in too many capital intensive businesses - Retail and Commodities. Idea will not enjoy the same premium as Airtel and RCom.
MindTree listed around Rs 650 and is trading at Rs 615. Long Term investors[18+ Months] can add more around Rs 550 levels while short term investors can sell off as you have mere 15 shares allotted and consider BUYING TCS at lower levels - Rs 1125.
Published by DalalStreet Business @ 12:28 PM
IT People files for IPO
Saturday, March 03, 2007
IT People, a company which recruits and trades people to IT/ITeS oriented company has filed draft Red Herring Prospectus for an IPO of Rs 45.25 crore to invest in technology infrastructure, and business expansion.
- IT People (India), is a company providing Human Capital Solutions focused on the IT-ITES industry on a global basis. The company is BS7799 certified organization and has offices in India and Middle East.
- Earlier Balwas ecom India was acquired by the present promoters IT People in 2003.
- The company has eRecruitment portal ITPeople.in, a global recruitment exchange portal exclusively catering to the requirement of IT Professionals in the field of Information Technology & ITES. The portal is a platform for employers, jobseekers and consultants in the IT industry to post, search, advertise and use researched information.
- From the recruiters prospective the company provides a platform to post its requirements, receive applications, schedule interviews and manage the hiring life cycle.
- For the job seekers it provides a platform to search for the best career opportunities available in IT companies across the globe.
- The company through its portal provides a database search product in the IT domain for the recruiters of job seekers with multiple search facilities, unique IT skill and certification based parameters. The revenue from this service line is mainly through subscription, which could be quarterly, half-yearly or yearly as per the requirement. The company only provides the database and will not receive any revenues either from the job seeker or recruiters on recruitment.
- On the portal other than database subscription revenues the company also earns revenues on account of visibility i.e. advertising or branding on the portal. Currently of the e-Recruitment services, which account for 50% of the total revenues, database constitutes 50% of the revenues, and 30-40% revenues are from visibility or branding solutions.
- The second line of service is consulting wherein the company provides placement, contract and project based sourcing services and special projects like Build, Operate and Transfer. The line of business contributes 50% of the revenues.
- Currently the company has total employee strength of 150 people with 75 people on contract staffing.
- IT People has been appointed as exclusive partner for India by Dubai Outsource Zone (DOZ), the world’s first free zone dedicated to the outsourcing industry. Meaning any Indian company wanting to set up office in the DOZ would have to apply through IT People.
- IT People is also the Preferred Business Partner of DOZ on a global basis for providing recruitment and human resource consultancy services, facility management services and BOT services.
- For the quarter ended December 2006, revenues stood at Rs 5.18 crore up 115% over corresponding quarter previous year with operating profits up by 521% to Rs 1.01 crore and PAT zooming to Rs 1.08 crore against Rs 9.10 lakh in the corresponding quarter previous year.
- For the nine months ended December 2006, IT People reported 95% growth in revenues to Rs 11.26 crore with operating profits up at Rs 1.91 crore against Rs 5.60 lakh in corresponding previous period and the PAT at Rs 1.58 crore against loss of Rs 16.25 lakh in the corresponding previous period.
Labels: IT-People
Published by DalalStreet Business @ 7:31 PM
MindTree Consulting & Idea Cellular IPO Status
Thursday, March 01, 2007
You can now check the status of your application for MindTree Consulting IPO here. Due to heavy over subscription in the retail category, all the applicants fate has been decided by lottery. The ratio of allotment is 1:2 in Rs 1.0 Lakh application.
The IPO status of Idea Cellular will be made available here by tomorrow evening. Just choose Idea Cellular from the drop down menu.
Labels: IPO Allotment
Published by DalalStreet Business @ 11:43 PM
