Indian Stock Market

Satluj Jal Vidyut Nigam ( SJVN ) IPO has been fully subscribed and IPO Allotment status will be known in a few days. Retail investors who had applied for this issue will get full allotment.

SJVN is a hydro power generator . SJVN is a joint venture between the Government of India and the state government of Himachal Pradesh, formed to develop and operate the 1,500MW Nathpa Jhakri Hydro Power Station (NJHPS).

Price of IPO is yet to be decided.  Mostly the lower band would be used. Allotment would be done in few days too.

Allocation details when available will be put up here.

About SJVN IPO:

SJVN is joint venture between the central government and the Himachal Pradesh (HP) state government. The Centre holds 74.5% stake and the HP state government holds the remaining 25.5%. The central government’s stake after the divestment will decline to 64.47%.

SJVN reported net profit of Rs 775.37 crore on net sales of Rs 1423.10 crore for nine months period ended December 2009

Jaypee Infratech is a subsidiary of Jaiprakash Associates Ltd.  IPO Allotment status of Jaypee infra will be posted here as soon as its available.

IPO has received decent subscription . Allotment for this jaypee group ipo will be easy for retail investors. CHeck allocation details here later.

About Jaypee infratech IPO:

Price Band: Rs. 102-117

Amount raised: Rs 1,650 crores

IPO funds : Nearly 90% of the proceeds will be utilised to fund the construction of Yamuna Expressway Project linking Greater Noida with Agra. The balance will be used for general corporate purpose and meeting the issue expenses

Jaypee Infra is owned by Jaiprakash Associates Ltd

The company offers a 5% discount to retail investors whose bid amount doesn’t exceed Rs 1 lakh. The issue represents nearly 15% of the post-IPO equity capital of the company and the promoter’s stake in the company will decline to around 85% after the issue.

Talwalkars Better value Fitness IPO Allotment Status Page

Talkwalkar Better value ipo has been a huge hit. It has been over subscribed 28 times.

Qualified institutional investors got subscribed 35.4 times, Non-institutional investors 51.5 times and retail investors 8.43 times

About Talkwalkar Fitness IPO

Claris Lifesciences IPO – VCCIRCLE

Details about Claris Lifesciences IPO from VCCIRCLE

Carlyle-backed Claris Lifesciences is looking to raise over Rs 300 crore through its maiden public float. As per VCCircle estimates, Carlyle could be sitting on as much as 3x unrealised gains on its four-year-old investment in the Ahmedabad-based drugmaker.

Carlye through First Carlyle Ventures III had invested $20 million (~Rs 90 crore) in Claris Lifesciences in March 2006, through preferential shares that represents 13.89% stake currently. Its average cost iof purchase works out to be around Rs 127 a piece.

Claris is yet to declare how much equity it plans to dilute in the IPO, but assuming the promoters would like to maintain 75% stake in the company after the issue (the maximum allowed as against their current holding of 86%), it could mean about 15% dilution in equity base through fresh issue of around 7.3 million shares. This could translate into an issue price of around Rs 410 a share, over three times the cost price for Carlyle.

Claris plans to use IPO funds to set up some new manufacturing lines besides repayment of Rs 50-crore term loan.

Carlyle’s investment was to fund expansion in capacity, establishing new facilities, R&D and product development initiatives. The 10-year-old firm’s product basket includes the high-end critical care segments such as clinical nutrition, anesthesia, blood products, plasma expanders, transplant, dialysis, anti-infectives, and cardiology.

For the year ended December’09, Claris had net revenue of Rs 621 crore with net profit of Rs 125 crore. With 15% equity dilution, the company could be looking at an EPS of around Rs 21 on its FY’09 earnings post issue translating into a P/E multiple of around 20 if the issue price is close to Rs 410. This would give it a market cap of around Rs 2,395 crore or $540 million.

Some of the other current investments of Carlyle in India include HDFC, Great Offshore and Allsec Technologies.

I came across an article in Moneycontrol today. Its about the IPO from Indigo Airlines. Not sure how far its true.

Low cost carrier Indigo Airlines is all set to go public and may well issue one of the largest size IPO in the domestic aviation space. The company is plans to raise Rs 1,500 crore through the IPO by the end of this calendar year and has appointed some bankers like Morgan Stanley, UBS and Credit Suisse and Citi. The promoters are likely to remain majority shareholders.

Indigo’s net profit for FY 2009-10 stands at around Rs 400 crore. The company also has plans to induct nine more aircraft this year & 10 more aircraft next year.

Steel Authority of India ( SAIL ) is going to raise funds by an IPO / FPO. Government of India will divest 10% while SAIL will issue new shares to the tune of 10%

Here is a press article from Economic Times

The government on Thursday approved a follow-on offer by Steel Authority of India (SAIL) that is expected to raise Rs 16,000 crore,

prompting investors to sell the state-run firm’s shares in anticipation of a discount.

While the country’s largest steelmaker will issue fresh shares equivalent to 10% of its paid-up equity, the government will divest 10% of its holding. At current prices, SAIL will get an additional capital of Rs 8,000 crore while the government will pocket Rs 8,000 crore.

“The current valuation of the company appears a bit stretched,” said Mayank Shah, chief executive of Anagram Capital, a Mumbai-based broking firm. An attractive discount could work in favour of the offer, he said.

The share sale will be done in two tranches. Each tranche will contain 5% fresh equity and 5% government shares, said home minister P Chidambaram after a meeting of the Cabinet Committee on Economic Affairs.

The share sale is part of the government’s ambitious disinvestment drive, which seeks to raise Rs 40,000 crore to meet its growing expenditure. The government holds a little over 85% stake in the company. After both tranches of sale are completed, the government holding will come down to about 69%.

On Thursday, SAIL shares slipped 7.18% on the Bombay Stock Exchange to close at Rs 236.75, indicating investors expect the offer to be priced at a discount. The market may also be concerned about the impact of the equity dilution and the fresh supply of shares on the company’s stock.

The share prices of state-run companies NMDC and NTPC had also seen a sharp drop after disinvestment was announced, raising apprehensions that SAIL’s stock price may fall further.

“A fair valuation of SAIL shares would be anywhere between Rs 210 and Rs 220 per share,” said Pawan Burde, vice-president of broking firm PINC Research.

“SAIL is among the few steel companies in the country that have captive mines. This prevents SAIL from getting adversely impacted from the cyclical nature of the steel industry as it could control its cost,” said Navin Vohra, partner with consulting firm Ernst & Young.

SAIL is executing a Rs 70,000-crore expansion programme to raise its installed production capacity from 13.82 million tonnes per annum (mtpa) to 23.46 mtpa.“It can leverage the same (equity) to raise debt with the rest coming from internal accruals and its cash reserves,” Amber Dubey, director at global consulting major KPMG.

The government received tepid response from retail investors when it divested stakes in REC, NMDC and NTPC last year.

You Broadband & Cable India is planning to launch an IPO. Here are the details from VCCIRCLE.

Citigroup Venture Capital (CVC)-backed cable broadband service provider You Broadband & Cable India Ltd is looking to raise Rs 360 crore through its public float. One of the few Indian companies in which CVC has a majority stake (others include names like Sharekhan), You Broadband also counts amongst its investors names like media house BCCL, Tanti family (of Suzlon) and financial services firm Edelweiss Capital (who is also managing the issue).

CVC owns over 82% in You Broadband. Originally owned by British Gas, the company was acquired by CVC-backed Mauritius company in 2006 and is estimated that it has already pumped in over Rs 300 crore through a string of fresh issues and allotments against amalgamations.

The exact quantum of investment made by BCCL, which strikes ad-for-equity deals and holds 4.4% stake pre IPO, could not be ascertained, the company has commitments to advertise in BCCL media vehicles to the tune of Rs 22.37 crore which is valid for four years ending November’10. Edelweiss Capital had picked a small stake worth Rs 2.5 crore at Rs 13.7/ share in November’08.

Another group of investors comprises members of the Tanti family who together own around 4.45%. They were allotted shares as a part of an inorganic expansion deal where You Broadband acquired 36.24% in a cable TV company Digital Outsourcing Private Ltd that was owned by the Tantis. This cable company operates in 10 cities in India, including Mumbai – Navi Mumbai, Bangalore, Vishakapatam, and Nagpur. Of these 10 cities, four cities, namely Mumbai, Navi Mumbai, Bangalore and Vishakapatnam, overlap with the cable broadband services footprint and network infrastructure of You Broadband.

The company had an agreement entitling it to buy another 12.75% provided it allots 4.425% to the Tantis, which it has done. Further, You also has rights to purchase another 13.29% of the cable company for Rs 12.8 crore (valuing it at Rs 96 crore) within two months of completing the issue of shares. As of February 28, 2010, DOPL offered its services to an estimated 1.5 million homes through cable operators and approximately 8,000 direct residential subscribers.

You Broadband plans to use little less than half of the issue money for expanding broadband business. Rest of the money is intended to be used for acquiring the additional stake(13.29%) in the cable company besides hardware for the cable firm, working capital expenses etc.

For the year ended March’09, it had total income of Rs 79 crore with net loss of Rs 15.9 crore. It reduced its capital and adjusted it to balance the outstanding losses of the company(Rs 168 crore) during, possibly to clean balance sheet ahead of the IPO. For the period ended September’09, its total income stood at Rs 37.6 crore with net loss of Rs 9 crore.

Electrosteel Integrated is planning to launch an IPO. Here are the details from VCCIRCLE.

Electrosteel Integrated, which is backed by a number of financial investors including IL&FS and IFCI, is looking to raise Rs 368-400 crore (as per VCCircle estimates) through a public float. The company could price its issue(which also has a greenshoe option) at par the face value of shares of Rs 10, the price at which it has allotted shares to all investors over the last one year.

The company is promoted by Electrosteel Castings which owns 42%. Post issue, it will get diluted to around 34% post IPO. Another large shareholder in the company is international steel firm Stemcor that owns 24% as of now.

If Electrosteel Integrated actually prices the issue at Rs 10-11, it could be eyeing a market cap of around Rs 2,050 crore which will be more than that of Electrosteel Castings (Rs 1,758 crore).

The IPO is largely (Rs 250 crore) to part finance the construction of an integrated steel and D.I. pipe plant having a capacity of 2.2 MTPA in the state of Jharkhand. Some of the money (Rs 22 crore) will also be used as margin money towards bank guarantees besides other purposes.

Among the key investors: IFCI has invested Rs 100 crore and IL&FS and its managed funds have together invested more than Rs 100 crore.

Tarapur Transformers has received SEBI approval for IPO .  Tarapur Transformers is a subsidiary of BILPOWER Ltd.

Tarapur Transformers, a Bilpower’s subsidiary is planning to tap capital markets to mobilise over Rs 69 crore. The company will use issue proceedings for expansion and modernization of Pali unit, to part-finance incremental working capital requirements, the acquisition of business and the marketing and corporate branding expenses.

CRISIL Rating:

CRISIL Research has assigned a CRISIL IPO Grade “1/5″ to the proposed initial public offer of Tarapur Transformers Ltd, which indicates poor fundamentals relative to other listed securities.

The IPO grade reflects the weak position of Tarapur Transformers in a highly competitive power transformer industry, dominated by large established players. The power transformer segment is expected to show strong growth due to the government’s focus on increasing power generation and on improving distribution efficiency. However, Tarapur Transformers is expected to face challenges in establishing itself successfully in this segment.

Despite having considerable experience in power transformer repairing and distribution transformer manufacturing, the company is inexperienced in manufacturing higher range of power transformers. The execution team required for scaling up of operations is also in the process of being recruited. The grading also considers negative operating cash flows for the last three years due to long working capital cycle brought about by high receivables days. The working capital position is further strained due to delays in payment from State Electricity Boards.

The IPO grading also reflects inadequate corporate governance structure as well. Nik-San Engineering Company (P) Ltd, a promoter group company, operates in a similar line of business as that of Tarapur Transformers. The two companies do not have a formal non-compete agreement, which poses a potential conflict of interest. In addition, Tarapur Transformers sources its key raw material (transformer core) from its parent company Bilpower. However, no formal arms-length pricing agreement for this purpose is in place. Further, the extent of engagement of independent directors falls below the expected level.

Tarapur Transformers repairs, upgrades and manufactures power and distribution transformers. It is a 71 per cent subsidiary of Bilpower, which manufactures laminations and motor stampings. Tarapur Transformers is a registered vendor for various SEBs across the country, and is also registered with many private companies for supply and repair of power transformers. The company has three operating plants.

Through the IPO proceeds, the company proposes to fund the expansion of its Pali unit and also plans to undertake an acquisition to diversify into an allied segment. Of the total requirement of Rs 700 million, the debt component (including amount already spent) is Rs 220 million. The balance amount of Rs 470-480 million will be raised through IPO proceeds.

SKS Microfinance is planning to launch an IPO . This is the fiest IPO in microfinance sector. Investor Participation will be pretty good too.

Here are few details about SKS Micro from ET.

One of the pioneers in Indian microfinance, SKS Microfinance, is planning to tap the IPO market through a sale of about 16.8 million equity share.

Following RBI directive asking microfinance companies to maintain higher prudential capital of 12% of their assets in FY11,which is expected to go up even further, many microfinance companies are tapping different anenues to raise capital, including the IPO market and private equity investments. SKS is the first microfinance company to hit the market.

In addition to fresh equity of 7.4 million shares, 9.4 milliom existing shares, largely owned by existing shareholders, is also on offer. Promoter Vikram Akula is believed to own 6% of the company’s existing equity in the company. Besides Mr Akula, Infosys founder NR Narayana Murthy has recently invested Rs 28 crore through his venture fund, Catamaran Investments. The issue will constitute 21.6% of the fully diluted post-issue capital of the company.

Reid and Taylor IPO back in news again. 2nd innings indeed.

SKNL is planning an initial public offering (IPO) of Reid & Taylor in the next 6-8 months, reports CNBC-TV18.

The company plans to convert Belmonte into a separate subsidiary and is looking to bring in private equity investment into Belmonte.

It is looking at a qualified institutional placement (QIP) within this year.

Singapore’s GIC holds 25% stake in Reid & Taylor’s subsidiary.

The soft launch of the mass brand world player has been successful. Margins will remain between 19% and 21%.

SKNL is not looking at acquisitions currently. It is currently in consolidation mode.

The group brand makeover will be unveiled in 3-4 months.

One more jewellery IPO. Sree Ganesh jewellery ipo opens for Subscription tomorrow. Read further details below.

Sree Ganesh Jewellery House Limited (Shree Ganesh), one of India’s largest manufacturers and exporters of handcrafted gold jewellery, has planned to hit the capital markets with its proposed public issue.

The bid offer of 1,42,69,831 equity shares of the face value of Rs 10 each opens on March 19, 2010 and closes on March 23, 2010. The company has fixed the price band at Rs 260 to Rs 270 per equity share for the initial public offering.

The IPO will consist of a fresh issue of 1,21,36,497 equity shares by the company itself and an offer for sale 21,33,334 equity shares by its PE investor, Credit Suisse PE Asia Investments (Mauritius) Ltd.

The issue will constitute 23.52 per cent of the fully diluted post issue paid-up capital and the fresh issue will constitute 20 per cent of the fully diluted post issue paid-up capital of the company. At the higher end of the IPO Price Band, the company will raise Rs 328 Crore from the fresh sales of equity shares where as the offer for sale portion for selling shareholder will be Rs 58 crore.

Having set up its first unit at Manikanchan SEZ in 2004 with a capacity of 500 kgs of gold jewellery per year, Shree Ganesh added three additional units at Manikanchan SEZ

IL&FS Transportation Network IPO Allotment Status

ILFS IPO Allotment status will be put up here as soon as it is available. Retail Investors should get a pretty decent allocation.

Link for checking your status.

IL&FS Transportation Networks’ (ITNL) initial public offering (IPO) has been fully subscribed, as per data available on the NSE website. The issue received bids for 2.39 crore equity shares as against issue size of 2.37 crore equity shares.

The company plans to raise upto Rs 700 crore through this issue, which will close on Monday, March 15.

It already received a committment of Rs 126 crore from anchor investors (AIs). AIs subscribed for 48,83,720 equity shares at Rs 258 per equity share, at higher end of price band at Rs 242-258.

ITNL was incorporated by IL&FS (an infrastructure development and finance company) in 2000, in order to consolidate their existing road infrastructure projects and to pursue various new project initiatives in the area of surface transportation infrastructure.

The offer for sale will include 42.8 lakh shares by Trinoka Trinity Capital (a UK-based fund), which will be Rs 110 crore at Rs 258 per share.

The book running lead managers to the issue are Enam Securities, Nomura Financial Advisory and Securities and JM Financial. The co-BRLMs to the issue are SBI Capital Markets and Avendus Capital. The shares will be listed on both the BSE and the NSE.

NMDC IPO has been a failure . It got Subscribed less than 1 time.

National Mineral Development Corporation IPO ends today.

Allotment status and Allocation details of this ipo will be posted here as soon as it is available.

Retail portion looks under subscribed even now at this point of time. So your chance for getting the share is very high. Listing date and Price will soon be put up here.

Current Market Cap is Rs.1,43,000 crores

Im applying a considerable amount for this issue now. Share your views people.

Standard Chartered IPO

update: IPO Allotment status – IPO has been successful to some extent . So next on investors radar will be the allotment status and allocation date , rate etc. Will keep you updated,check back again.

British Banking Giant , Standard Chartered may launch IPO of its Indian Operations.

Indian Operations of Standard Chartered is already the 2nd largest contributer of Profits in Standard Chartered balance Sheet.

Hong Kong and Indian Operations together contribute more than 45% of the Bank’s earnings.

Standard Chartered is one of the largest Banks of the world. Its a British Bank with presence all over the world.

Financials of Indian Subsidiary:

Net Profit : Rs. 4900 Crores ( 2009 )

StanChart India witnessed a 10 per cent growth in its loan book in 2009 on the back of a healthy rise in consumer advances and loans to small companies.

India is the 2nd largest market for Standard Charterd in terms of earnings after Hong Kong, where the net profit went up to $1.062 billion in 2009 from $989 million in the previous year.

In terms of earnings after Hong Kong, where the net profit went up to $1.062 billion in 2009 from $989 million in the previous year.

As part of ramping up its operations in the country, the bank plans to hire 2,000 more people here this year, Swaroop said. At present, the lender has total loan book of $9 billion (around Rs 41,400 crore) while the deposits are $11 billion (Rs 50,600 crore).

The proportion of current and savings account deposits to total deposits stood of StanChart India at 43 per cent, which grew by 25 per cent during the year, Swaroop said.

Total income of the bank, during the year went up to $1.813 billion as against $1.694 billion. At present, the bank has a capital adequacy ratio of 12.6 per cent.

During the year, the bank saw a slight rise in its loan impairments, which rose to $182 million from $157 million in the previous year. Net non-performing assets rose to 1.9 per cent during the year while gross NPAs stood at 2.9 per cent as of December 2009.