Central Bank Issue Subscribed 62.07 times
Saturday, July 28, 2007
The IPO of Central Bank of India was subscribed 62.07 times. Retail participation was also extremely good. Here is the final Tally.
| Sr.No. | Category | No.of shares offered/reserved | No. of shares bid for | No. of times of total meant for the category |
| Qualified Institutional Buyers (QIBs) | 45600000 | 4063677240 | 89.1157 |
| Non Institutional Investors | 7600000 | 528778260 | 69.5761 |
| Retail Individual Investors (RIIs) | 22800000 | 369421620 | 16.2027 |
All retail application of 960 shares @ cut off are likely to get 60 shares, but may go in for a lottery too. Check back for the status of allotment here.
The allotment status of Everonn Allotment status can be checked here.
Published by DalalStreet Business @ 12:51 AM
Central Bank of India - Subscribe
Thursday, July 26, 2007
Central Bank of India [CBI] has the third largest network in the country with 3,194 branches (with major presence in central, eastern and western parts of the country). It has an employee base of 36,227 employees serving over 2.5 crore customers. Around 98% of the banks business has been computerised as at the end of March 2007 with 353 branches covering 35% of the banks business covered under core banking solution.CBI cleans up Balance Sheet:
The bank restructured its capital base in March 2002 by netting off accumulated unabsorbed losses of Rs681.3 crore against its paid-up capital of Rs1,805.5 crore. On March 2007 the balance equity capital of Rs1,124.1 crore was further restructured and converted into Rs800 crore worth of noncumulative perpetual preference shares and Rs324.14 crore of equity capital.
NPAs are on a decline since 2003 and at an all time low of 1.7% to net advances which is still a high compared to Bank of Baroda at 0.9%.
Current IPO Offer:
Issue Size - Rs 680 - Rs 816 crore.
Pricing Rs 85 - Rs 102
Retail offer - Rs 272 crore
Valuations:
Based on the price range of Rs85102, CBI is available at (1.11.2)x its post-issue book value (BV) and (1.51.7)x its post-issue adjusted book value (ABV). The bank has a return on equity of around 13%, a dividend yield of 3% (based on the upper price band).
Recommendation:
Being the 3rd largest banking network in the fastest emerging economy of the world, CBI will attract heavy FII interest pre and post IPO. Investors with appetite for long term capital appreciation are requested to HOLD after allotment [You see what happened to Indian Bank] and Investors who want to SELL on allotment can also do so. We recommend a subscribe to CBI IPO for our readers.
Indian Banks are in much better shape than their Chinese counterparts and Indian banks attract cheaper valuations and are unexpected to cool off. Drastic measures by the RBI may hit their bottomline in short-term. Long Term Investors just hold your investments tight.
Suggestions and Comments maybe sent to "feedback @ DalalStreet . Biz"
Published by DalalStreet Business @ 8:42 AM
Zylog + Omnitech heavily over subscribed
Wednesday, July 25, 2007
The IPO of Zylog Systems for which we had a SUBSCRIBE recommendation was heavily subscribed by Retail and Institutional Investors. Total over-subscription 76.51 times. Here is the final break up.
| Sr.No. | Category | No.of shares offered/reserved | No. of shares bid for | No. of times of total meant for the category |
| Qualified Institutional Buyers (QIBs) | 2100000 | 188063600 | 89.5541 |
| Non Institutional Investors | 350000 | 50383980 | 143.9542 |
| Retail Individual Investors (RIIs) | 1050000 | 36889600 | 35.1330 |
The fate of Rs 98,000 application will also be decided by lottery. Ratio of allotment for Rs 98,000 application will be 1 : 2.5. Grey Market Premium si already Rs 150+. Good Luck!!!
Omnitech Info Solutions:
The issue was oversubscribed by 61.84 times. Here is the final breakup.
| Sr.No. | Category | No.of shares offered/reserved | No. of shares bid for | No. of times of total meant for the category |
| 1 | Qualified Institutional Buyers (QIBs) | 1847199 | 114073140 | 61.7547 |
| 2 | Non Institutional Investors | 554160 | 60216660 | 108.6629 |
| 3 | Retail Individual Investors (RIIs) | 1293039 | 65884920 | 50.9535 |
The stock is expected to list at Rs 150. Good Luck for your allotment. We strongly recommend value investors to AVOID IVR Prime Urban Developers IPO.
Published by DalalStreet Business @ 9:14 PM
IVR Prime Urban Developers - Dangerous Issue.
Tuesday, July 24, 2007
We have carefully analyzed the Public Issue offering of IVR Prime Urban Developers and recommend value investors to AVOID the issue.IVR has just completed one Residential project in Hyderabad. Cushman & Wakefield had valued projects using net present value of the projects in the range of Rs 4998.4 crore and Rs 5524.6 crore after deducting the developers margin, the net present value of the land reserves was between Rs 2889.8 crore and Rs 3194 crore. The per share value after deducting the developers margin works out to Rs 450-Rs 498 per share.
Consolidated FY 2007 EPS on post-issue equity works out to Rs 3.3. At the offer price band of Rs 510 - 600, the P/E range is 155-182.4, respectively. Comparable listed player according to size Ansal Properties and Infra is currently trading at 24.7 times its consolidated recurring FY 2007 earning. Nearest location-wise comparable company Sobha Developers is trading at 41.6 times its FY 2007 earning.
We recommend VALUE Investors to BLINDLY AVOID the IPO of IVR Prime. Fundamentals of the market will return and this Bull Market and Party won't last forever. Don't commit your hard earned money to worthless promoters and fly by night operators. Please don't be tempted by Listing Gains or whatever stories your broker tells you. Stick to Fundamentals and Stick to Diversified Folio. You will make lot of money in the long run.
Published by DalalStreet Business @ 8:41 PM
Zylog Systems - Review and Recommendation
Zylog Systems is promoted by first generation entrepreneurs Sudarshan Venkatraman and Ramanujam Sesharathnam. It is a global services provider with major focus on application development and integration including web application, web services, application integration, business Intelligence, data warehousing and mobile and wireless applications; enterprise infrastructure management and quality assurance & testing.Zylog is a very small company 1/15th the size of Infosys. The company has business concentrations in the same verticals as Infosys does.
Current Offer:
36,00,000 Equity shares within the price band of Rs 330 to Rs 350 aggregating mere Rs 126 crore.
Fully Diluted Equity Post IPO = 1.65 Crore Equity Shares of Rs 10 each.
Valuations:
At the price band of Rs 330 - Rs 350, FY 2007 EPS (on post-issue equity) of Rs 33.2 is discounted 9.9-10.5 times.
The stock looks reasonably valued and leaves good scope for appreciation. Since the issue is very small, Investors who are lucky and have chances of allotment can blindly subscribe to the IPO. Even the fate of Rs 100,000 application will be decided by lottery. The stock will be easily listed upwards of Rs 525 as the Grey Market Premium is upwards of Rs 150.
Good Luck!!!
Published by DalalStreet Business @ 8:07 PM
Omaxe IPO Oversubscribed 68.34 Times
Saturday, July 21, 2007
The IPO of Omaxe which was reasonably priced saw a terrific response from all the classes of investors. Out IPO Analyst had a subscribe recommendation and the retail portion of the IPO was subscribed 13.89 times close to 14 times [his prediction]. Here is the final breakup as obtained from the NSE.
| Sr.No. | Category | No.of shares offered/reserved | No. of shares bid for | No. of times of total meant for the category |
| 1 | Qualified Institutional Buyers (QIBs) | 10500000 | 1000893560 | 95.3232 |
| 2 | Non Institutional Investors | 1750000 | 142026240 | 81.1579 |
| 3 | Retail Individual Investors (RIIs) | 5250000 | 72931660 | 13.8917 |
All applications / bids for 280 shares and above i.e 280/300/320 will get a firm allotment of 20 shares. Good Luck for your listing gains.
Published by DalalStreet Business @ 9:51 AM
Apply for Omaxe Developers IPO
Friday, July 20, 2007
We recommend investors with appetite for risk to apply. [Note this is not a Blind Apply as it was in case of MindTree, ICRA etc]Rohtas, Goel, promoter of Omaxe Constructions and Developers Ltd made it to the richest real estate land barons in India.
Unfortunately, I don't have the time to pen the complete review and I am uploading the docs from where I have studied and personally applying. SELL some on allotment.
Share Khan Review of Omaxe Developers Ltd
HDFC Securities Review of Omaxe Ltd.
Retail portion is of Rs 180 crore and is likely to be oversubscribed 14+ times.
Grey Market premium as on today is Rs 50 and may vary according to market fluctuations and BSE Real Estate Stock Index.
HDIL IPO Status:
The status of application for Housing Development and Infrastructure Ltd IPO can be checked here.
Published by DalalStreet Business @ 11:50 AM
HDIL Oversubscription + Allotment
Wednesday, July 04, 2007
The IPO of Mumbai's leading Real Estate player, HDIL was oversubscribed 6.6 times mainly from FIIs and PE Funds. Here is the breakup as obtained from the Bombay Stock Exchange.
| Sr.No. | Category | No.of shares offered/reserved | No. of shares bid for | No. of times of total meant for the category |
| 1 | Qualified Institutional Buyers (QIBs) | 17460000 | 176952454 | 10.1347 |
| 2 | Non Institutional Investors | 2910000 | 5187182 | 1.7825 |
| 3 | Retail Individual Investors (RIIs) | 8730000 | 13886194 | 1.5906 |
The retail individual investor portion was subscribed mere 1.5 times. So any retail investor who has applied for more 28 shares will get a firm allotment of at least 14 equity shares. The Grey market premium as of today, is Rs 22, it may change depending on the market's perception for real estate stocks. Good Luck for your listing gains.
Real Estate IPO - DLF will list tomorrow. If their are any listing gains Book at least 50% profits as you will get a chance to re-enter the stock at lower levels.
Published by DalalStreet Business @ 12:46 PM
BEML Subscription and Allotment
The IPO of BEML was oversubscribed 30.65 times according to a release from National Stock Exchange. Here is the breakup.
| Sr.No. | Category | No.of shares offered/reserved | No. of shares bid for | No. of times of total meant for the category |
| 1 | Qualified Institutional Buyers (QIBs) | 2205000 | 139654750 | 63.3355 |
| 2 | Non Institutional Investors | 661500 | 5604055 | 8.4717 |
| 3 | Retail Individual Investors (RIIs) | 1543500 | 4930965 | 3.1947 |
The individual investors retail portion of the issue was subscribed 3.1 times. So any retail investor applying for 20 or more shares will get firm allotment of 5 shares. Even if you have applied for 15 shares, your chances of allotment are very high.
[Don't look for grey market because BEML is already listed and Current Market Price of BEML is Rs 1239]
Update:
BEML issue price has been fixed at Rs 1,075 for 49 lakh shares in the FPO [Follow on Public Offer]
Published by DalalStreet Business @ 12:38 PM
HDIL - Review and Recommendation
Tuesday, July 03, 2007
Housing Development and Infrastructure (HDIL), part of the Wadhwan group develops real estate mainly in the Mumbai Metropolitan Region. Since its incorporation in 1996, the company has developed 23 projects covering approximately 11 million square feet of saleable area, including about 5.7 million square feet of land sold to other builders after the development. It also have constructed an additional two million square feet of rehabilitation housing area under the slum rehabilitation schemes. Dewan Housing Finance Corporation, a listed company is part of the promoter group.HDIL is coming out with an IPO to fund acquisition of land or land development rights for its ongoing and planned projects. The price band is Rs 430- Rs 500.
HDIL has land reserves of approximately 112.1 million square feet of saleable area to be developed through 32 ongoing or planned projects. The company has 21 ongoing projects under construction and development, aggregating to approximately 45.5 million square feet of saleable area, and has 11 planned projects aggregating approximately 66.6 million square feet of saleable area. Of the land reserves, about 73.4% is actually owned by the company; and 15.7% of it is to be acquired under memorandum of understanding (MoU) and agreements.
Advances from customers are Rs 512.1 crore end March 2007, representing amounts that have been received from customers but not booked by the company as sales. As and when the projects are completed, this amount will percolate to the top line. This represents 43% of the reported FY 2007 revenue. There was an inventory of Rs 1324.48 crore (approximately 98% constitutes work in progress) end March 2007.
On the flip side:
Of the total land bank, 82% is in Mumbai Metropolitan Region, with a significant proportion in the Vasai-Virar region and in residential projects. The currently benchmark rates in Vasai-Virar region are in the range of only Rs 1000-1800 per square feet. In the year ending March 2007, 69% of reported revenue was derived from selling of development rights/floor space index (FSI).
Valuation:
Knight Frank had valued HDIL’s per share value at Rs 984. Cushman & Wakefield has valued per share value at Rs 1028. These valuations are six months old and the real-estate market condition has changed after that.
Consolidated FY 2007 EPS on post-issue equity, assuming green shoe option is exercised, works out to Rs 25.3. At the offer price band of Rs 430 – Rs 500, the P/E range is 17-19.8, respectively. Comparable companies location-wise (focused on Mumbai) are: Akruti Nirman (mainly into slum rehabilitation) and Orbit Corporation (mainly into redeveloping projects) are trading at P/E of 31.5 and 16, respectively. However both these companies are much smaller compared with HDIL. Comparable listed player in terms of size, Parsvnath Developers (with development rights of approximately 151 million square feet), is currently trading at 22 times its FY 2007 earning.
Recommendation:
Investors willing to hold for long term / with some risk appetite should apply as their will be listing gains for sure.
Real Estate Major - DLF will list on July-5th on the bourse.
Published by DalalStreet Business @ 1:41 PM
