Swajas Air Charters Limited, South India's oldest and a recognized Air Charter Operator, has entered capital markets with an IPO having an Issue Size of Rs.37.5 Crores. The 100% Book Building Issue opens for subscription from Monday, September 26, 2011 and would close for subscription on Wednesday, September 28, 2011.
The Price Band for the Public issue of Equity Shares of Face Value Rs.10/- each has been ascertained at Rs.90/- per share on the lower end and Rs.100/- per share on the upper end of the band. Applications can be made in a bid lot of 60 Equity Shares and in multiples thereof. Aryaman Financial Services Limited is the Book Running Lead Manager as well as a Syndicate Member to the Issue. India Securities Broking Private Limited is another Syndicate Member. Cameo Corporate Services Limited is the Registrar for the IPO
Company Background:
Swajas Air Charters Limited is South India's oldest and a recognized Air Charter Operator. It is a non-scheduled Airline Operator, servicing a fleet of fixed-wing aircraft and helicopters within and outside India.
According to the company's website, Swajas Air Charters currently has 24x7 operational bases in Chennai, Hyderabad, Bangalore, Mumbai and New Delhi as well as an in-house Aircraft Maintenance team that offers turn-key, tailor-made solutions to aircraft owners. Swajas Air Charters is the sole operator to provide Air Ambulance Services as part of its service repertoire and Chennai's first private offshore helicopter operator.
With the induction of its first helicopter Bell 407 in 2008, Swajas enlarged the scope of its charter operations in South India and went on to add off-shore support and logistics capabilities by inducting two Bell 412 helicopters in the same year. In 2009 one Augusta 109 E helicopter and one Cessna Citation XL560 were added to the fleet to further expand the scope of charter operations of the company. Swajas then bagged the certification by DGCA to carry out in-house maintenance of Bell 407, Bell 412 and Augusta 109 E Helicopters and Cessna Citation XL560 Aircraft in 2010
Swajas Air offers a number of services falling under the segments of:
Swajas clients base includes names such as Hardy Exploration & Production (India) Inc.,Government of Orissa, Videocon Industries Limited, Larsen & Toubro Limited, Nimbus Communications Limited, Suzlon Energy Limited, Apollo Hospitals Group, Bharat Aluminium Company Limited. The company is promoted by Mr. R. Jayakumar and Mr. Christopher Ian Want
Utilization of IPO Proceeds:
The proceeds of the IPO are proposed to be primarily utilised towards part funding the acquisition of a helicopter and an aircraft (to offer air ambulance services), setting up of a hangar facility to broaden its MRO services and purchasing an office facility, besides funding its working capital and general corporate requirements
IPO Grading:
ICRA has assigned an “ICRA IPO Grade 2”, indicating "Below Average Fundamentals" to the proposed Initial Public Offering (IPO) of Swajas Air Charters Limited (”SACL” / “the Company”). ICRA assigns IPO grading on a scale of IPO Grade 5 to IPO Grade 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals.
According to the grading report from ICRA, The grading considers the experience of promoters in the business, SACL’s established relationships with customers in South India and the proposed broadening of service offerings which is likely to support business growth. The Company, which presently derives a major portion of its revenues from general air charter and off-shore transportation, intends to enhance its services to include air-ambulance and maintenance services.
Owing to capital intensive nature of the business, the Company’s ability to achieve high fleet utilization would be critical in improving profitability. Similarly, compliance with regulatory requirements including safety will be critical to ensure smooth operations. SACL’s profits are also exposed to volatility in fuel prices and wage inflation, although price variability clauses with some of its customers mitigate the risk to an extent. The grading also considers the small scale of SACL’s operations, which limits scale economies and financial flexibility to an extent. Click here to download the complete grading report from ICRA
>> Read more on Swajas Air Charters IPO Analysis and Insight - Part 2 of 2
The Price Band for the Public issue of Equity Shares of Face Value Rs.10/- each has been ascertained at Rs.90/- per share on the lower end and Rs.100/- per share on the upper end of the band. Applications can be made in a bid lot of 60 Equity Shares and in multiples thereof. Aryaman Financial Services Limited is the Book Running Lead Manager as well as a Syndicate Member to the Issue. India Securities Broking Private Limited is another Syndicate Member. Cameo Corporate Services Limited is the Registrar for the IPO
Company Background:
Swajas Air Charters Limited is South India's oldest and a recognized Air Charter Operator. It is a non-scheduled Airline Operator, servicing a fleet of fixed-wing aircraft and helicopters within and outside India.
According to the company's website, Swajas Air Charters currently has 24x7 operational bases in Chennai, Hyderabad, Bangalore, Mumbai and New Delhi as well as an in-house Aircraft Maintenance team that offers turn-key, tailor-made solutions to aircraft owners. Swajas Air Charters is the sole operator to provide Air Ambulance Services as part of its service repertoire and Chennai's first private offshore helicopter operator.
With the induction of its first helicopter Bell 407 in 2008, Swajas enlarged the scope of its charter operations in South India and went on to add off-shore support and logistics capabilities by inducting two Bell 412 helicopters in the same year. In 2009 one Augusta 109 E helicopter and one Cessna Citation XL560 were added to the fleet to further expand the scope of charter operations of the company. Swajas then bagged the certification by DGCA to carry out in-house maintenance of Bell 407, Bell 412 and Augusta 109 E Helicopters and Cessna Citation XL560 Aircraft in 2010
Swajas Air offers a number of services falling under the segments of:
- General Air-Charter Services
- Off-Shore Transportation & Logistics
- Charter Tourism
- Medical Evacuation Services
- Operations & Maintenance
Swajas clients base includes names such as Hardy Exploration & Production (India) Inc.,Government of Orissa, Videocon Industries Limited, Larsen & Toubro Limited, Nimbus Communications Limited, Suzlon Energy Limited, Apollo Hospitals Group, Bharat Aluminium Company Limited. The company is promoted by Mr. R. Jayakumar and Mr. Christopher Ian Want
Utilization of IPO Proceeds:
The proceeds of the IPO are proposed to be primarily utilised towards part funding the acquisition of a helicopter and an aircraft (to offer air ambulance services), setting up of a hangar facility to broaden its MRO services and purchasing an office facility, besides funding its working capital and general corporate requirements
IPO Grading:
ICRA has assigned an “ICRA IPO Grade 2”, indicating "Below Average Fundamentals" to the proposed Initial Public Offering (IPO) of Swajas Air Charters Limited (”SACL” / “the Company”). ICRA assigns IPO grading on a scale of IPO Grade 5 to IPO Grade 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals.
According to the grading report from ICRA, The grading considers the experience of promoters in the business, SACL’s established relationships with customers in South India and the proposed broadening of service offerings which is likely to support business growth. The Company, which presently derives a major portion of its revenues from general air charter and off-shore transportation, intends to enhance its services to include air-ambulance and maintenance services.
Owing to capital intensive nature of the business, the Company’s ability to achieve high fleet utilization would be critical in improving profitability. Similarly, compliance with regulatory requirements including safety will be critical to ensure smooth operations. SACL’s profits are also exposed to volatility in fuel prices and wage inflation, although price variability clauses with some of its customers mitigate the risk to an extent. The grading also considers the small scale of SACL’s operations, which limits scale economies and financial flexibility to an extent. Click here to download the complete grading report from ICRA
>> Read more on Swajas Air Charters IPO Analysis and Insight - Part 2 of 2
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