Onelife Capital Advisors Limited (OCAL), an Indian financial service provider, is entering the capital markets with a Public Issue of 33,50,000 Equity Shares of Rs 10 each. The Issue would remain open for subscription between Wednesday, September 28, 2011 and Tuesday, October 4, 2011
The Pricing for the 100% Book Building Issue is made in a price band of Rs.100/- to Rs.110/- per equity share having a Face Value of Rs.10/- each. The IPO has been rated by CARE. Applications in the IPO can be made in a bid lot of 50 Equity Shares and in multiples thereof. The minimum application, therefore would work out to be Rs.5,000/- at the lower end of the price band and Rs.5,500/- at the upper end of the band.
The Issue is being managed by Book Running Lead Manager Atherstone Capital Markets Limited with Syndicate Members as Almondz Global Securities Limited and HEM Securities Limited while Sharepro Services (India) Private Limited is the Registrar to the Issue
Company Profile:
Onelife Capital Advisors Limited (OCAL) is an India based financial service provider specialized in investment banking, including merchant banking. Company has plans to enter in to other financial service sectors including Portfolio Management and Equity Broking services for India Capital Market investors
Onelife Capital offers services like Initial Public Offerings, Rights Issue, Buyback of Shares, Follow-On Public Offering, Qualified Institutional Placements, Open Offers and other Equity Linked Financing for small sized companies. The Company is promoted by Mr. Thiruvidaimarudur Krishna Prabhakar Naig and Mr. Pandoo Prabhakar Naig
IPO Grading:
CARE has assigned an IPO Grade 1 to Onelife Capital Advisors IPO. This means as per CARE, company has "Poor Fundamentals". CARE assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals
According to the Grading Report from CARE, the grading factors in the company's small size of operations which are currently loss making, limited track record, moderate management profile, lack of diversified revenue streams, lack of branch network, highly competitive merchant banking business, and high dependence on capital markets which exposes the company's business to volatility in stock market which may impact its revenues and profitability
Click here to download the entire IPO Grading Document of CARE on Onelife Capital Advisors IPO
Key Insights:
Analysis of Financials:
The following are the financials of the company as per the Red Herring Prospectus filed by the company:
The company has negative cash flows from operating and investing activities in the fiscal year 2008, 2010 and 2011 and from financing activity for fiscal year 2009. Besides, the company has been incurring losses during fiscal 2008, 2010 and 2011.
During the FY08 and FY09, the company had no income from operations due to non-commencement of the company's business till then. The company has posted profit only in the first year of having its income from operations in FY2010 and again went into the red for FY2011 with a loss of around Rs.60 Lakhs in FY11
A profit and loss statement with losses in three out four preceding years does not permit a PE multiple or such other comparison either generally or relatively with peers. However, investors may find it difficult to shell out Rs.100/- to Rs.110/- a share for a loss incurring company, planning to venture into a business which is both new for the company as well as heavily dependent on the conditions of capital markets
The Pricing for the 100% Book Building Issue is made in a price band of Rs.100/- to Rs.110/- per equity share having a Face Value of Rs.10/- each. The IPO has been rated by CARE. Applications in the IPO can be made in a bid lot of 50 Equity Shares and in multiples thereof. The minimum application, therefore would work out to be Rs.5,000/- at the lower end of the price band and Rs.5,500/- at the upper end of the band.
The Issue is being managed by Book Running Lead Manager Atherstone Capital Markets Limited with Syndicate Members as Almondz Global Securities Limited and HEM Securities Limited while Sharepro Services (India) Private Limited is the Registrar to the Issue
Company Profile:
Onelife Capital Advisors Limited (OCAL) is an India based financial service provider specialized in investment banking, including merchant banking. Company has plans to enter in to other financial service sectors including Portfolio Management and Equity Broking services for India Capital Market investors
Onelife Capital offers services like Initial Public Offerings, Rights Issue, Buyback of Shares, Follow-On Public Offering, Qualified Institutional Placements, Open Offers and other Equity Linked Financing for small sized companies. The Company is promoted by Mr. Thiruvidaimarudur Krishna Prabhakar Naig and Mr. Pandoo Prabhakar Naig
IPO Grading:
CARE has assigned an IPO Grade 1 to Onelife Capital Advisors IPO. This means as per CARE, company has "Poor Fundamentals". CARE assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals
According to the Grading Report from CARE, the grading factors in the company's small size of operations which are currently loss making, limited track record, moderate management profile, lack of diversified revenue streams, lack of branch network, highly competitive merchant banking business, and high dependence on capital markets which exposes the company's business to volatility in stock market which may impact its revenues and profitability
Click here to download the entire IPO Grading Document of CARE on Onelife Capital Advisors IPO
Key Insights:
- The company plans to grow their Portfolio Management Services (PMS) through the proceeds of this issue. A major part of issue proceeds (approximately 35%) are proposed to be utilised for this purpose. The contribution of this segment to the company's revenues has been ‘NIL’ since its inception.
- The company is a new entrant in the Portfolio Management Services and Brokerage Market with no customer base, track record and prior experience and there is also a risk relating to the viability of this business due to the company's inexperience in the business
Analysis of Financials:
The following are the financials of the company as per the Red Herring Prospectus filed by the company:
The company has negative cash flows from operating and investing activities in the fiscal year 2008, 2010 and 2011 and from financing activity for fiscal year 2009. Besides, the company has been incurring losses during fiscal 2008, 2010 and 2011.
During the FY08 and FY09, the company had no income from operations due to non-commencement of the company's business till then. The company has posted profit only in the first year of having its income from operations in FY2010 and again went into the red for FY2011 with a loss of around Rs.60 Lakhs in FY11
A profit and loss statement with losses in three out four preceding years does not permit a PE multiple or such other comparison either generally or relatively with peers. However, investors may find it difficult to shell out Rs.100/- to Rs.110/- a share for a loss incurring company, planning to venture into a business which is both new for the company as well as heavily dependent on the conditions of capital markets
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