Indian Stock Market

The volatility in the Indian stock market has forced Wockhardt Hospitals to revise the price band to Rs 225 (20 per cent at the lower end) and Rs 260 (16 per cent at the upper end) per equity share (from Rs 280 to Rs 310) for its initial public offering (IPO) of 25.09 million equity shares of Rs 10 each for cash at a price determined through a 100 per cent book-building process.

The issue opens on January 31 and closes on February 5.

The Emaar-MGF management, on the other hand, has decided to stick to its price band of Rs 610-690 for 10.26 million shares.

The issue will open on February 1. The IRB Infrastructure Developers issue of 51.06 million equity shares (which opens tomorrow) has a price band of Rs 185 to Rs 220.

The offer comprises a net issue to the public of 24.59 million equity shares of Rs 10 each (the net issue) and a reservation of up to 500,000 equity shares for subscription by eligible employees.

The issue will comprise 24.06 per cent of the post-issue paid-up equity share capital of the company.

The proposed IPO of Wockhardt Hospitals has been assigned an IPO grade of 4 out of 5 by rating agency Fitch Ratings India, indicating above-average fundamentals.

Wockhardt Hospitals intends to utilise the proceeds from the issue to meet the cost of development and construction of greenfield and brownfield hospitals of the company, pre-pay some of the short-term loans and to meet general corporate expenses.

The equity shares are proposed to be listed on the Bombay Stock Exchange and National Stock Exchange.

Cox and Kings (India), one of the oldest and most reputed travel organizations in India operating as a one-stop-shop for all travel related products, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to enter the capital market soon with an initial public offering (IPO) of 8,700,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.

The issue comprises a net issue of 8,600,000 equity shares to the public and a reservation of up to 1,00,000 equity shares for permanent eligible employees. The issue would constitute 23.75% of the fully diluted post Issue paid up capital of the company and the net issue will constitute 23.48% of the fully diluted post issue paid-up capital of the company.

The equity shares are proposed to be listed on Bombay Stock Exchange and National Stock Exchange.

The company is considering a Pre-IPO Placement of certain equity shares with some investors and will complete the issuance of such equity shares prior to the filing of the red herring prospectus (RHP) with the Registrar of Companies (RoC). The number of equity shares in the issue will be reduced to the extent of the equity shares proposed to be allotted in the Pre-IPO Placement, if, any, subject to the net issue to the public being at least 10% of the fully diluted post-Issued paid up capital of the company.

Of the total equity float, at least 60% of the net issue shall be allocated on a proportionate basis to qualified institutional buyers out of which 5% shall be available for allocation on a proportionate basis to Mutual Funds only. Further, not less than 10% of the net issue shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 30% of the net issue shall be available for allocation on a proportionate basis to retail individual bidders.

About the Company

Cox & Kings is the oldest established travel names in the travel business. It offers a one-stop shop for the travel needs of all segments of travellers. It specializes in Destination Management, Leisure Travel, MICE, NRI Holidays and Trade Fairs. In currency rxchange the company has been granted Category II license by the Reserve Bank of India enabling it to enjoy Authorised Dealer Status.

Cox & Kings has over 12 fully owned offices in India across key cities such as New Delhi, Chennai, Bangalore, Kolkata, Ahmedabad, Kochi, Hyderabad, Pune, Goa, Nagpur and Jaipur. The worldwide offices are located in UK, USA, Japan, Russia, Singapore and Dubai. It has associate offices in Germany, Italy, Spain, South Africa, Sweden and Australia.

The book running lead manager to the issue is Enam Securities Private Limited

SVEC Constructions, a Hyderabad based company proposes to enter the capital market with an initial public offering of 40 lakh equity shares of Rs 10 each.

The issue, which is being made through a 100 per cent book building process, opens on February 4, and closes on February 8. The price band has been fixed at Rs 85-Rs 95.

Of the total issue, at least 50 per cent of the issue to the public shall be allocated on a proportionate basis to qualified institutional buyers, five per cent of the portion available for allocation to qualified institutional buyers will be allocated proportionately to mutual funds. The remainder shall be available for allotment on a proportionate basis to qualified institutional bidders and mutual funds, subject to valid bids being received at or above the issue price. Also not less than 15 per cent of the issue to the public shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 35 per cent of the issue to the public shall be available for allocation on a proportionate basis to retail individual bidders.

The company, which has experience in the areas of building and irrigation works, plans to raise between Rs 34 crore-Rs 38 crore.

The company plans to deploy funds for the purchase of capital equipment worth Rs 15.32 crore and for meeting the long-term working capital requirements estimated at Rs 23.86 crore.

The company’s order book position as on November 30, 2008 stands at Rs 521.91 crore.

The book running lead managers to the issue are Karvy Investor Services Ltd and Centrum Capital Ltd, reports The Hindu Business Line

The initial public offering (IPO) of OnMobile Global, a leading provider of telecommunications value added software products and services in India with an expanding international presence, has received good response and subscribed 10.95 times, as per NSE website.

Public offer has received bids for 11.9 crore equity shares as against 10,900,545 equity shares on offer. Good response has seen from qualified institutional investors, whose reserved portion subscribed 17 times, HNI portion was subscribed 2.6 times and retail 1.3 times. All bids were at higher end of price band.

Crisil has come out with report on Vascon Engineers IPO. The firm has assigned its IPO Grade 3/5 to the proposed initial public offering of Vascon Engineers (VEL).

VEL proposed public issue of 10,680,000 equity shares aims to raise Rs 3 billion to Rs 4 billion.

Crisil report on Vascon Engineers IPO

CRISIL has assigned its IPO Grade ’3/5′ to the proposed initial public offering of Vascon Engineers. The grade indicates that the fundamentals of the issue are  ‘average’ in relation to the other listed equity securities in India.

VEL is seen in the industry as a construction specialist with strong technical and design expertise, delivering quality work within the scheduled time. It has a strong brand in Pune, where it is an entrenched player with a business track record of more than 20 years. In 2006-07 (refers to financial year, April 1 to March 31), VEL reported a 180 per cent year-on-year jump in its consolidated operating income, thanks to the ongoing boom in the Pune realty market.

The IPO will finance seven real estate projects aggregating 2.25 million sq ft of saleable area; most projects will follow the ‘build-lease-sell’ strategy.

However, VEL’s realty business is concentrated in and around Pune, exposing it to the fortunes of the IT/ITES industry. As on October 31, 2007, the company has developed about 3.36 million sq ft of saleable area; it expects to build more than 34.7 million sq ft over the next eight years. Hence, the company’s systems, processes, and people will have to be substantially scaled up for it to be able to execute its projects on time.

This will be a challenging task, as most other developers are scaling up as well, leading to a possible manpower and material crunch. Also, in a scenario where real estate prices are rising, the build-lease-sell strategy works in favour of the developer; but in a downturn the same strategy of holding on to stock could seriously impair the developer’s profitability.

About the company

VEL was incorporated in 1986 and commenced operations with the construction of Cipla Ltd’s plant at Patalganga. Besides realty, the company has business interests in hospitality and commercial properties. The day-to-day operations are headed by the Managing Director, R Vasudevan, while Mr Amar Lulla (presently joint managing director of Cipla Ltd), the other founder promoter, is now a financial investor.

An established second line of management, which has been in place for more than a decade, has ensured continuity and smooth functioning of operations. For 2006-07, the company’s consolidated total income and net profits were Rs 3.99 billion and Rs 464.8 million respectively. As on March 31, 2007, VEL had a consolidated net worth of Rs 2.51 billion.

Initial public offer of integrated design and engineering service provider Shriram EPC got subscribed over two times on the first day of issue. Qualified institutional investors have given strong support to the issue, their reserved portion subscribed 3.57 times.

The Chennai-based company received bids for over 1.07 crore shares against 50 lakh shares on offer, data available on stocks exchanges show.

The issue, which began on January 29, would close on February 1. The price band of the issue has been fixed between Rs 290 and Rs 300.

Shriram EPC is planning to raise up to Rs 165 crore through the IPO. The company plans to utilise the issue proceeds to augment its power equipment manufacturing capacity.

Some amount from the IPO proceeds would also be utilised for acquisitions and working capital.

The company is diluting 11.66 per cent for the initial public offer. From the 50 lakh shares on offer, 60 per cent would be allocated to qualified institutional buyers and 30 per cent for retail investors and remaining 10 per cent would be for the non-institutional bidders.

The company is a service provider of integrated design, engineering, procurement, construction and project management services for renewable energy projects, process and metallurgical plants and wind turbine generator.

Shriram EPC Ltd IPO

Registered Office Address No. 5, T.V. Street, Chetput, Chennai 600031, Tamil Nadu
Phone 91-44-28361817 Fax 91-44-28363518
Email investors@shriramepc.com Website http://www.shriramepc.com
Issue Open 29/01/2008 Issue Close 01/02/2008
Issue Size 50,00,000 Equity Shares Issue Type Book Building
Face Value Rs.10/- Price Range Rs.290/- Rs.330/-
Tick Size Re.1/- Market Lot 20
Minimum Order Qty 20 Listing Stock Exchange Mumbai, NSE
Registrar To The Issue Cameo Corporate Services Ltd
Book Running Lead Managers Kotak Mahindra Capital Company Ltd, ICICI Securities Ltd.
Co-Book Running Lead Manager Motilal Oswal Investment Advisors Pvt. Ltd.
Analysis

Company Background:

* Shriram EPC Limited (SEPC) was incorporated on July 2000, for the purpose of carrying on the business of engineering, procurement and construction.
* SEPC is headquartered in Chennai, Tamil Nadu, with other offices in Mumbai, New Delhi, Kolkata and Beijing, and WTG and cooling tower factories in Puducherry, Chennai and Umbergaon (Gujarat).
* SEPC’s business is divided into two segments -
1. Engineering, procurement and construction (EPC) projects.
2. Development, sale and maintenance of wind turbine generator (WTGs) – SEPC started this business from FY 07.
* SEPC’s EPC business model provide project management services for renewable energy, process & metallurgical plants and municipal services sector projects throughout India.
* The WTG business is engaged in developing, manufacturing, erecting and commissioning 250 KW WTGs, and is currently developing megawatt-class WTGs through Leitner Shriram Manufacturing Limited (“Leitner Shriram”), an associate company.
* SEPC derived 77.49% revenue from EPC business and 22.51% revenue from WTG business in FY 07. For half year ended Sept 07, it derived 53.58% revenue from EPC business and 46.42% revenue from WTG business.
* SEPC have investments in associate companies engaged in the manufacture of WTGs, renewable power generation and manufacture of metallurgical coke, namely Leitner Shriram Manufacturing Limited, Orient Green Power Limited and Ennore Coke Limited.
* SEPC’s client list include Madras Aluminum company Ltd, Vedanta Aluminum Ltd, Grasim Industries Ltd, JSW Steel Ltd, SAIL, Gujarat Water Supply and Sewerage Board, BHEL, Ahmedabad Urban development authority to name a few. Currently, SEPC is executing one gas cleaning project in Zambia for Konkola Copper Mines plc.
* SEPC have received the ISO 9001:2000 certification for the quality management system that it uses in the design and construction of WTGs.
* Post issue promoter and promoter’s group shareholding will reduce to 88.34% from the current ownership of 100%.

Objects of the Issue:

* To invest in the company’s subsidiary and associate companies.
* To fund expenditure for general corporate purposes.
* To achieve benefits of listing on stock exchanges.

Strengths:

* SEPC has got strong consolidated order book position which stands at Rs. 2,279.18 crore as on December 31, 2007.
* The Net Income of the company has increased at a CAGR of 88.99% to Rs. 295.72 crore in FY 07 from Rs. 23.18 crore in FY 03. The Net income for 6 months ended September 07, stands at Rs. 222.48crore.
* The Net Profit of the company has increased at a CAGR of 147.34% to Rs. 13.14 crore in FY 07 from Rs. 0.35 crore in FY 03. The Net Profit for 6 months ended September 07 stands at Rs. 10.44 crore.
* The inventory turnover ratio has improved and stood at 13.20 times in March 07 from 7.41 times in March 06.
* Debt to Equity ratio has improved and stood at 0.1 times in FY 07 from 0.5 times in FY 05.
* The Interest Coverage ratio of the company has improved to 6.3 times in FY March 07 from 3.4 times in FY March 06. For 6 months ended September 07, it stands at 4.9 times.

Weakness:

* SEPC has negative cash flow from operating activities since FY 05. For FY 07, the losses were to the tune of Rs. 29.05 crore and for 6 months ended Sept 07, it amounted to Rs. 12.06 crore respectively. The operating expense of the company is on the rise due to continued development and expansion of company’s business at a high pace.
* The average collection period has increased to 123 days in FY 07 from 103 days in FY 06.

Valuations:

* RONW of the company has improved and stood at 7.71% in March 07 from 4.72% in March 06 due to increase in PAT as well as addition in revenue from WTG business.
* The OPM of the company has improved to 9.2% in FY 07 from 8.4% in FY 05. For 6 months ended September 07, it comes out to 9.8%.
* Debtors turnover ratio for March 07 stood at 2.99 times as compared to 3.56 times in March 06.
* The book value per share as on March 07 comes out to Rs. 84.18.
* EPS as on March 07 comes out to Rs.6.49. Post issue EPS based on annualized PAT for FY 08 stands at Rs. 4.87.
* The shares are being offered in the price band of Rs. 290/- to Rs. 330/. Post issue the P/E Ratio of the company comes out to 59.56 at the lower price band and 67.77 at the upper price band based on annualized PAT for FY 08

Subscription Details , Allotment Details , Listing Date and Price will be updated here soon

Bang Overseas IPO – Subscription , Alloment Status , Listing date , Listing Price

Company Background

• Bang Overseas Ltd (BOL) was incorporated in 1992 as Bang Overseas Pvt Ltd to carry on the business of trading in textiles. It converted to Public Ltd Co. in 2005.
• Presently, BOL is in the business of manufacturing & trading of apparels and trading of fashion fabrics. The company owns the brand name of ‘Bodywaves’ and ‘Thomas Scott’ for fabric collections in textile and ready to wear mens’ garment respectively. The company has applied for ‘Miss Scott’ for registration as brand for women’s apparel.
• BOL has two manufacturing units in Bangalore with present installed capacity of 7,20,000 & 5,40,000 pieces per annum. The company has planned to set up another unit in Banagalore with installed capacity of 6,00,000 pieces per annum.
• BOL also has planned to offer more lifestyle products under their brands along with accessories namely sunglasses, belts, time wear, fashion jewellery and fragrances.
• The company has centralised warehousing and logistic centre at Kalher Village near Bhiwandi to facilitate supply chain management of the business.
• Currently, BOL retailed its products through 157 points of sales comprises of Retail outlets (company owned), Large format stores (Eg. – Shopper’s Stop, Pyramid, Globus, the LOOT & SAGA) and other Multi brand outlet. The company owned 12 Retail outlets including three franchisee and is planning to scale up the same to 100 including 50 franchisee.
• Thomas Scott brand contributed 23.46% and 29.47% during half year ended September 30, 2007 and FY 07 respectively in the total garment sales aggregating to Rs. 22.37 cr and Rs 35.61 cr.
• BOL has a subsidiary named Vedanta Creations Pvt. Ltd. which is also engaged in textile business.
• Post issue Promoter and Promoter group shareholding will reduce from 91.74% to 68.06%.

Objects of the issue

• To set up Retail outlets across India and brand building
• To set up a new apparel manufacturing unit
• To set up Warehousing and Logistic facilities

Strength

• Inventory turnover ratio has increased from 2.67 in FY 03 to 7.17 in FY 07.
• Debtors turnover ratio has increased from 2.37 in FY 03 to 17.18 in FY 07.
• Interest coverage ratio has increased from 1.08 in FY 03 to 6.89 in FY 07.
• OPM has increased from 6.21% in FY 03 to 19.91% in FY 07. For half year ended September 07, OPM was 18.42%.

Weakness

• Book value per share has decreased from Rs 70.92 in FY 03 to Rs 19.13 in FY 07. The same for half year ended September 07 is Rs 28.46.
• Fixed Assets turnover ratio has decreased from 51.61 times in FY 03 to 10.12 times in FY 07. The reason being significant investment in fixed assets.

Valuation

• Operating Income has increased at CAGR of 70% from Rs 11.56 cr in FY 03 to Rs 96.62 cr in FY 07. Income from Trading constitutes 88.95% in FY 03 & 63.06% in FY 07 while Manufacturing constitutes 11.05% in FY 03 & 36.94% in FY 07.
• Net Profit has increased from Rs 0.034 cr in FY 03 to Rs 10.79 cr in FY 07. For half year ended September 07, the same was Rs 7.04 cr.
• Material cost to Operating income increased from 67% in FY 03 to 71% in FY 07. For half year ended September 07, the same was 63.82%.
• Manufacturing cost to Operating income has increased from5.25% in FY 03 to 6.55% in FY 07. For half year ended September 07, the same was 9.46%.
• Total expense to Total revenue has decreased from 94.49% in FY 03 to 81.57% in FY 07. For half year ended September 07, the same was 83.92%.
• Debt-Equity ratio has decreased from 2.28 in FY 03 to 1.30 in FY 07.
• RONW has increased from 1.71% in FY 03 to 32.88% in FY 06. The same has increased to 57.57% in FY 07
• EPS has increased from Rs 1.21 in FY 03 to Rs 11.01 in FY 07 Annualized EPS (based on half year ended September 07) is Rs 14.
• Post issue PE based on Annualized PAT for FY 08 at the lower end of the price band is 19.27 & at the upper end of the price band is 19.94. The shares are being offered at the range of Rs 200/- to Rs 207/-.
• This info is collected from IndiaBulls Trading Portal.

OnMobile Global IPO has received good Subscription numbers.Retail Subscription seems pretty good.

Allotment Status will be out before 3 rd week of Feb and Share allocation will be completed before 3rd week too.

Onmobile Global IPO Allotment Details and Listing Information , Date , Listing Price too will be posted here…

Emkay research has maintained buy rating on Hindustan Construction Company HCC with target price of Rs 260 in its January 22, 2008 report. “We believe that the company is on a strong growth trajectory and with more clarity emerging in the real estate business; the company looks to set to unlock value for the shareholders. We value the company on a SoTP based valuation of Rs 260 / share assigning a value of Rs 148 / share to the core construction business (15xFY10E), Rs109 / share to the real estate business and Rs 3/ share for the BOT projects. We maintain our ‘BUY’ recommendation,” says Emkay report.

Angel Broking has recommended buy rating on Tech Mahindra with a price target of Rs 1222 in its January 24, 2008 report. “During 3QFY2008, Tech Mahindra recorded a strong 8.1% qoq growth in its consolidated Topline. On a standalone basis, the growth stood at 6.1% qoq. Going ahead, we expect Tech Mahindra to record a 32.6% CAGR growth in Topline and a 106.2% CAGR growth in Bottomline over FY2007-10E. EBITDA Margins to trend downwards and fall to 20% by FY2010E v/s over 25% in FY2007. At the CMP, the stock trades at 8.5x FY2010E EPS. These valuations are fairly attractive and even considering a slowdown or recession in the US, the current consolidation and uncertainty in the global TEM market, Rupee appreciation as also a possible higher tax rate post FY2009, the stock still offers room for upside. We recommend a buy on the stock, with a 12-month target price of Rs1,222. However, given the current negative sentiment towards the sector, stock price out-performance seems unlikely in the short-term and investors will need to be patient if they are considering exposure to the sector, according to Angel Broking report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

KNR Constructions IPO subscribed 0.29 times

Allotment is going to be easy , But the listing Price is going to be down.

IPO of OnMobile Global (OGL), the largest telecommunications value added services provider in India, received 2.58 times subscription on day two. The company received nearly 28.15 million bids as against issue size of 10.90 million shares

Lets see the over Subscription details to know about allotment and alocation details of this IPO

Close on the heels of the Aircel mega deal, Wipro Infotech has bagged another one. The company has won a five-year, $100-million contract from Saudi Arabian Airlines, its first large deal from the Middle-East.

Wipro Infotech had announced recently another mega deal from telecom operator Aircel, estimated at $450-600 million. The Saudi Arabian Airlines deal would be its second-highest in terms of value. Wipro’s domestic and APAC arm has won 10 total outsourcing deals in India so far, including a $80-million deal with HDFC and a $60-million contract with Dena Bank.

As part of its privatisation programme, Saudi Arabian Airlines has undertaken an extensive business transformation exercise, which includes overhauling the central IT applications. The next-generation IT infrastructure transformation contract has been given to Wipro Arabia, a joint venture between Wipro and Dar Al Riyadh Group that provides IT solutions & services in Saudi Arabia.

Wipro Arabia will deliver a futuristic, scalable & efficient managed infrastructure platform. The scope includes data centre consolidation & management, integration and management of a highly secure converged network and comprehensive enterprise-wide managed infrastructure & security services.

Khalid Almolhem, director general of Saudi Arabian Airlines, said, “We will extensively leverage Wipro’s innovations in technology lifecycle management and service delivery to create an agile and empowered organisation.”

Suresh Vaswani, president, Wipro Infotech & Global IT Practices, said, “Wipro will combine its service delivery excellence and deep technology expertise to deliver a seamless experience for the customers of Saudi Airlines.”

Tulsi Extrusions Ltd plans to raise up to Rs 48.5 crore through an initial public offering of shares, starting on February 1, it said on Monday.

The maker of PVC pipes based in Jalgaon, Maharashtra, has set a price band of Rs 80-85 a share, and plans to sell 5.7 million shares, it said in a regulatory filing.

The company intends to use the issue proceeds for expanding manufacturing capacity for pipes and moulded fittings at Jalgaon, and for working capital requirements, it said in its draft prospectus.

For the year to March 2007, Tulsi posted net profit of Rs 4.16 crore, on net sales of Rs 59.16 crore. Almondz Global Securities is the sole book-running lead manager to the issue.