Tecpro Systems to tap Capital Market
Thursday, August 30, 2007
Tecpro Systems (TSL), engaged in the business of undertaking turnkey projects in Bulk Material Handling Systems including raw material handling systems for power, steel, cement plants etc., propose to enter the capital market with an initial public offering through a book built issue of 7,300,000 equity shares and has filed its Draft Red Herring Prospectus with SEBI. The issue will constitute 22.33% of the fully diluted post issue paid-up capital of the company.
TSL installs conveyor systems and manufactures equipment such as crushers, screens, feeders, conveyor components like Idlers and pulleys and undertakes structural steel fabrication. TSL has received ICICI CNBC Emerging India 2007 award powered by CRISIL in the infrastructure category.
TSL is promoted by Mr. Ajay Kumar Bishnoi, Chairman & Managing Director and Mr. Amul Gabrani, Vice Chairman & Managing Director
Published by DalalStreet Business @ 11:22 AM
Motilal Oswal - Avoid
Thursday, August 23, 2007
We recommend Value Investors to stay away from the IPO of Motilal Oswal. It is an expensive issue being offered at a P/E higher than PSU asset classes. Moreover, we know the internal matter about management and its acquisition of Cochin based Peninsular Capital Markets and thus give a ZERO rating to the management of Motilal Oswal. Also the network of offices that it is banking on is just a SHELL which and when if cracked is EMPTY.
Here is a research report from HDFC which expresses concern about the valuations at which the IPO is priced.
Short Term and Risky Investors can apply but Value Investors including ourselves are staying away from this issue.
Published by DalalStreet Business @ 9:57 AM
Central Bank Lists at Rs 130
Tuesday, August 21, 2007
Central Bank of India listed few minutes ago at Rs 130. We had a subscribe recommendation to the IPO. Book partial profits at Rs 132 [Gain of Rs 30 / share]. Huge block deals were witnessed on BSE in CBI counter.
We are reviewing the prospects of Motilal Oswal IPO and will come with a recommendation very soon.
Published by DalalStreet Business @ 10:04 AM
IVR Prime to List on August-16th
Tuesday, August 14, 2007
IVR Prime Urban Developers will list on the stock exchange on August-16th, Thursday. We had recommended to avoid the issue. In spite of our recommendation if you have applied, then surely you have been alloted because of the poor response.
The stock may list above the offer price of Rs 550 but it is expected to close below the offer price. We advise to book profits ASAP.
Published by DalalStreet Business @ 3:53 PM
Central Bank India Allotment status
Friday, August 10, 2007
The allotment status of Central Bank of India IPO is now available online here. All applications for Rs 97,920 have been alloted 63 shares. The grey market premium has come down to Rs 21 from Rs 30. Long Term investors can hold the stock CBI has the third largest network of branches.
Published by DalalStreet Business @ 9:48 AM
Avoid Purvankara at Revised Price
Tuesday, August 07, 2007
After careful research, we recommend Value Investors to avoid the IPO of Purvankara Projects at the revised price band of Rs 400 to Rs 450. The real estate prices in Bangalore /Bengalooru are also correcting. [We are personally not buying any argument from Edelweiss Research or Moneycontrol-CNBC TV18 as we are convinced beyond doubt that the management of Purvankara is interested only in stripping investors money]
Purvankara also kept investors in the dark by not going for their land Bank Valuation from reputed Realty Consultants like Cushman & Wakefield. Now the big question is how reliable is Edelweiss or Motilal Oswal analysis of Land Bank when domain experts are kept away.
The problem with small realty firms is their earnings visibility and hence will also not command any premium to their NAV. With correction in the market, their are many other BUYING opportunities and one can AVOID the BIG MISTAKE of investing in Purvankara IPO.
You can now check the status of allotment of Zylog Systems IPO here. [On Phone they told it will be available from the 8th]
Published by DalalStreet Business @ 2:52 PM
Omaxe Allotment Status Available
Friday, August 03, 2007
The Allotment Status Omaxe Construction Ltd IPO can be checked here. All individual retail applications for 320 shares have been firmly alloted 26 shares.Intime Spectrum Registrar to the issue has told us that, As per information made available by ECS-Refund Banker(HDFC BANK LTD.)
Credit into respective account through ECS can be expected
In Mumbai by : 04/08/2007
Other than Mumbai by : 08/08/2007
Update on Purvankara Ltd IPO:
Our Analyst has an AVOID on Purvankara projects. The issue is very poorly subscribed at mere 0.28 times [just one more day to go] with absolutely no interest from Retailers. Stay away from the issue.
Published by DalalStreet Business @ 12:11 AM
Purvankara Projects-Developers - Avoid
Wednesday, August 01, 2007
Purvankara Projects, Dirty and Polluted Bangalore / Bengalooru based Realty Developer is offering shares to the public to raise around Rs 1,100 crore. We do agree that Purvankara is a good quality Developer but we recommend our value investors to Blindly Avoid the IPO as it is Expensive.Background:
Purva has 74% of its Land Bank in Bangalore / Bangalore District. It also operates in Chennai, Kochi, Coimbatore and Colombo. On 2 July 2007, had a land bank of 38.07 million sq ft, representing a 106.8 million sq ft of saleable area. The area under development represents 8.5 times the amounts booked and 55% of its projects have been sold, revenue visibility is high. The realisation target is Rs 3200 per sq. ft. The average cost of construction is Rs 1500 per sq. ft.
Concerns:
Purva's prospects etc are not as sunny as they look. They have a debt of 676 crores and liablities of another 483 crores. So in a way of speaking the entire proceeds of the IPO can goto fulfill these obligations. Union government recently banned real-estate players and township developers from accessing external commercial borrowings (ECBs) to fund projects. Over the past couple of years, there has been a significant increase in interest rate and prices of real estate. This has increased the equated monthly installment (EMI) on housing loans. With IT companies under severe pressure from Dollar, pay packets for IT employees are also under pressure. Purva has just around 25% folio in the Commercial Real Estate category which will see lot of demand from Retailers in India.
Current IPO:
IPO Band Rs 500-Rs 525
IPO offer size Rs1,073 crore to Rs1,126 crore
Post Issue Equity of Rs 5 each: 21.34 crore shares
Valuation:
Consolidated FY 2007 EPS on post-issue equity works out to Rs 6.1. At the offer price band of Rs 500 Rs 525, the P/E range is 81.9-85.9, respectively. [Higher that that of DLF and Unitech] Comparable listed player according to size is HDIL, currently trading at 24.6 times its consolidated recurring FY 2007 earning. Motilal Oswal values Purvavankara at mere Rs 508/ share and this company is expecting Rs 525 from the Public.
Recommendation:
The issue looks very expensive and going forward real estate prices maybe headed for a correction. Dependence on just Residential Realty market and asking money at a valuation higher than that of DLF makes us recommend to stay away from the issue.
Published by DalalStreet Business @ 10:12 AM
