Archive for the ‘Ipo News’ Category
Titagarh Wagons Ltd (TWL) - Intial Public Offer (ipo)
Titagarh Wagons Ltd (TWL)
Initial Public Offer
Key Data
Date of Opening 24th March, 2008
Date of Closing 27th March, 2008
Method of Payment Full bid amount at the time of submission
Value @ Rs 540-610 Rs128.72-145.40 Crore
No. of Share Offered 2383768 equity shares
Face Value 10
BRLM’S Kotak Mhindra Capital Company Ltd
Registrar Karvy Computershare Pvt Ltd
Minimum Lot 10 equity shares
Maximum Retail Lot 16 (160 Shares Rs97600/- at Rs.610/- per share)
Post Issue Share Capital 17.08 Crore
Post Issue Market - cap. 922.25-1041.80 Crore.
Investment Rationale
Titagarh Wagons Ltd. (TWL) is a private sector wagon manufacturer in India. primarily engaged in the business of manufacturing railway wagons, Bailey bridges, Heavy Earth Moving and Mining equipment, steel and SG iron castings of moderate to complex configuration etc. We recommend investors to subscribe the issue at cut-off price.
TWL has a strong track record in terms of projects delivery and also has an advantage of support of experienced promoters with long standing industry experience. TWL has been registered with Directorate General of Quality Assurance (DGQA) as an approved manufacturer of Bailey Bridges thus enabling it to capitalize the opportunities available in this segment. On obtaining the Uttarapara unit the company has entered into backward integration which is likely to improve the operational efficiency and thus lead to improvements in margins thereafter. The issue seems to be an attractive investment having a strong future growth.
In a Superior position to capitalize opportunity available in Bailey Bridge segment
TWL is registered with Directorate General of Quality Assurance (DGQA) to manufacture Bailey Bridges and other related accessories in India and has the manufacturing capacity of 72 bridges per annum. Since the competition in this segment is limited, TWL is placed in a good position to capitalize opportunities available in this segment. Further to strengthen its modular steel bridge business, TWL has entered into a MOU with Kawada Industries Inc. for development of double lane modular bridges. This technology will increase the application of modular bridges thereby opening up new business opportunity for the company.
Entrance into vital components through backward integration
TWL has acquired the Uttarpara unit and the steel foundry at the unit has been certified as a Class “A” foundry by the RDSO. Thus TWL has been certified as an approved source for manufacturing bogies and couplers. Thus the company has started using the steel foundry for the manufacturing of bogies and couplers for in-house consumption. This has ensured continued access to vital components for manufacturing wagons. On an average the cost of procurement of bogies and couplers is 14-17 percent of the total selling price of a wagon to the Non-Indian Railway customers. Thus going forward we believe TWL’s in-house production capabilities will help it to maintain access to such critical components at competitive prices.
Follows an Innovative approach
TWL has developed the design of wheel on wheels (WoW) wagons which are specially designed to carry various types of trucks plying on the Indian roads catering to the needs of the logistic industry by providing Roll-on-Roll-off service. Its design of the WoW is under consideration by the Research and Development Standard Organization (RDSO). Further, it has also developed a special wagon for carrying automobiles named the COR (“Cars on Rail”) wagon. The wagons are a double deck wagons designed as per Indian railway standards and are suitable for transporting cars. These wagons are capable to run on the entire Indian railway system including under electrified routes. It has submitted the design for evaluation to the RDSO and also applied for patent for the design. In addition, it continuously endeavors to innovate and develop better management and production techniques which help to improve its overall efficiencies.
Intends to diversify globally and optimize the product mix
The company intends to explore relationships with suppliers and customers in developing markets. Recently TWL exported wagons to Africa. Further with the advantage of backward integration the company intends to set up an axle machining and wheelset assembly shop to achieve a higher level of operational continuity.
Positive outlook for the industry to benefit TWL
As per the Railway Budget 2008-09, incremental loading expected for FY07 was about 600 lakh tones. The freight loading for FY08 has been pegged at 850 Million tonnes and by the terminal year of 11th five year plan the railways are targeting a freight loading of 1100 lakh tonnes. In order to achieve this target the railways are targeting to focus their investments in the freight segment and the wagon manufacturing industry. The market structure the industry enjoys is very much oligopoly which has shifted from monopoly. Here there are few sellers and few buyers hence the demand is actually showing a very elastic approach. The price change of one player will actually affect the price of other players and hence makes it more volatile as the approach of all the players is very much towards huge profit maximization. Now as the Indian Railways has started focusing on the private sector with the help of the above mentioned schemes and companies like Titagarh Wagons Ltd will definitely benefit more.
For In-depth Titagarh Wagons Ltd (TWL) ipo research report, company profile along with Titagarh Wagons Ltd stock recommendations, Titagarh Wagons Ltd target price and for making informed investment decisions Click Here.
Kisan Ratilal Choksey Shares and Securities Pvt. Ltd.
1102, Stock Exchange Tower, Dalal Street, Mumbai 400 001
Phone: 91-22-56338050 / 66965555. Fax: 5633 8060
Members: BSE & NSE
www.krchoksey.com
Gammon Infrastructure Projects Ltd IPO - KRC Report
Gammon Infrastructure Projects Ltd
Initial Public Offer
Key Data
Date of Opening 10th March, 2008
Date of Closing 13th March, 2008
Method of Payment Full bid amount at the time of submission
Value @ Rs 167-200 276.38-331 Crore
No. of Share Offered 16550000 equity shares
Face Value 10
BRLM’S IDFC-SSKI Pvt Ltd and Macquire India Advisory Services Pvt Ltd
Registrar Intime Spectrum Registry Ltd
Minimum Lot 35 equity shares
Maximum Retail Lot 14 (490 Share Rs98000/- at Rs.200/- per share)
Post Issue Share Capital 144.55 Crore
Post Issue Market -cap. 2413.99-2891.00 Crore.
Investment Rationale
GIPL was incorporated in 2001 to participate in the development of Infrastructure projects in India. The company is amongst the first to be modeled as an infrastructure development company undertaking projects on Public-Private-Partnership basis.GIPL intends to be a market leader in the Infrastructure sector by building upon its core competency of development of
road projects, diversifying into new sectors, entering into strategic alliance to undertake large value projects and moving up the value chain to realize better margins. GIPL is among the first companies in India incorporated exclusively to participate in Infrastructure development through the PPP model and has assured revenue earned from its portfolio of projects thus making it a
financially strong company.
Assured revenue earned from its portfolio of projects
All the operational projects have assured sources of revenue under either an annuity or take-or-pay type arrangement with various government or quasi-government entities. The annuities receivable by REL and AEL (the two SPV’s) by NHAI are structured to cover the fixed cost s of operating projects, interest and depreciation. This can be stated with an example like; the bridge project at Cochin has a fixed annuity amount payable by GOK until the revised
concession period. Thus contracts of this nature will reduce the revenue risk associated with the project, thereby balancing the market risk with assured returns. GIPL follows a balancing strategy where is gets a significant upside potential with market based projects and stable revenues from assured return projects.
Diversified project portfolio spread across sectors and geographies
The projects both in operational and development phase are spread across roads, bridges, ports, hydropower and biomass power sectors. These projects are geographically diversified across various states in India. Thus due to such sectoral and geographic diversity, GIPL is able to effectively mitigate the risk associated with any particular sector and any particular state in
India.
Significant operational experience
GIPL is among the first companies in India incorporated exclusively to participate in Infrastructure development through the PPP model. Since GIPL has advantage of being an early entrant in the infrastructure development business, it has familiarized itself with the risk associated in the development, operations and maintenance of such facilities in India.Thus this
experience of GIPL will help it to ensure continuous growth of its business operations.
Leverage strategic relationships and expand its core strength
The company intends to leverage its strategic relationships with global infrastructure companies such as Dragods S.P.L., China Light and Power, Alstom, Siemens and Noble group to enhance its project bidding and development opportunities. These relationships will enhance GIPL’s brand name and optimize its ability to develop and deliver quality projects. GIPL intends to expand its
core strength by offering fee-based O&M services by capitalizing its experience in many projects. Since substantial capacity enhancement is expected in the infrastructure sector in India, GIPL forays to aggressively market its capabilities of O&M service provider both within and beyond the infrastructure projects.
Kisan Ratilal Choksey Shares and Securities Pvt. Ltd.
1102, Stock Exchange Tower, Dalal Street, Mumbai 400
001. Phone : 91-22-56338050 / 66965555. Fax : 5633 8060
Members: BSE & NSE
www.krchoksey.com
Rural Electrification Corpn (REC) IPO- Angel Broking Report
We believe the REC Issue comes at a reasonable price based on fundamental value, considering the high visibility of credit demand in the Power Finance sector, RECs strong positioning in the same and its reasonably strong financial performance. At the upper end of the price band of Rs105, the stock is available at 1.3x FY2009E Adjusted Book Value of Rs80.7 and 1.2x FY2010E Adjusted Book Value of Rs90.5. The valuations compare favorably with its closest peer, PFC, which is trading at 1.8x FY2009E Adjusted Book Value of Rs104 and 1.6x FY2010E Adjusted Book Value of Rs117 at the CMP of Rs185. We believe REC can command upto 1.5x 1-year Forward Adjusted Book Value, implying reasonable upside even at the upper end of the price band. Hence, we recommend subscribe to the issue.
Click Here to download the complete Angel Broking report on Rural Electrification Corpn (REC) public issue.
Angel Broking Top Retail Broking House of India- For details logon to http://angeltrade.com/
Wockhardt Hospital IPO extends till Feb 7
Wockhardt Hospital IPO closing date has been extended till Feb 7. The issue has just been subscribed 0.02 times. Uncertainty, volatility and negative sentiments in the market are some of the reasons it did not get full support of the investors.
Ipo open for investment
IRB Infrastructure Developers Ltd.Public Issue of 5,10,57,666 equity shares of Rs 10 each for cash at a premium of Rs 210 per share.Issue Opens: 31 Jan, 2008
Issue Closes: 05 Feb, 2008
We recommend applying for IRB Infrastructure Developers Ltd. IPO
Positive Points:
- Largest toll road operator in India
- Strong order book
Tulsi Extrusions Ltd. Public Issue of 57,00,000 equity shares of Rs 10 each for cash at a premium of Rs 75 per share.
Issue Opens: 01 Feb, 2008
Issue Closes: 05 Feb, 2008
Wockhardt Hospitals Ltd. Public Issue of 2,50,87,097 equity shares of Rs 10 each for cash at a premium of Rs 250 per share.
Issue Opens: 31 Jan, 2008
Issue Closes: 05 Feb, 2008
Emaar MGF Land Ltd. Public Issue of 10,25,70,623 equity shares of Rs 10 each for cash at a premium of Rs 620 per share.
Issue Opens: 01 Feb, 2008
Issue Closes: 06 Feb, 2008
Positive Points:
- Diversified business model
- Aggressive expansion plans- plans to develop 4960 hotel rooms across cities in coming years.
- Planning to foray into Healthcare and Education.
We recommend applying for Emaar MGF Land Ltd IPO
New ipo’s fail to attract investors
Volatility and uncertainty in the secondary markets has forced some initial public offers to revise their price bands, less liquidity in the market is one of the prime reason for this. Recently the mega-IPO of Emaar MGF, has reduced the price band by 9-11 per cent, from Rs 610 to Rs 690 a share to Rs 540 to Rs 630 a share.
Wockhardt Hospitals also announced that the company would revise the price band for its IPO to Rs 225 to Rs 260 a share against Rs 280 to Rs 310 a share, but since it had not notify the sebi about this the ipo did not start as scheduled and now the new start date fixed is February 1 and it will close on February 5.
Due to the recent share market crash ipos are finding hard to attract new investors as the investors are playing safe and waiting for the market to stabilize and only after that we may see start of fresh round of investments from retail or small investors.
The article has
no responses yet