Indian IPO Blog Insights

TBZ IPO - Indian IPO Blog Insight

noreply@blogger.com (CA Yash Ved) — Sat, 21 Apr 2012 18:38:00 +0000

Tribhovandas Bhimji Zaveri Ltd., an Indian top jewellery retailer, is entering the capital markets with an IPO of 16,666,667 Equity Shares of Rs.10/- each, which would remain open for subscription between April 24, 2012 and April 26, 2012. Is the jewellery retailer worth the glitter? Let's try to find out:

The Price Band for the IPO is Rs.120/- to Rs.126/- per equity share. Correspondingly, the bid lot would be 45 Equity Shares and in multiples thereof.

The objects of Tribhovandas Bhimji Zaveri Ltd. IPO are:
1. To finance the establishment of new showrooms;
2. To finance incremental working capital requirements;

IPO Rating:
CRISIL has assigned an IPO Grade 3 to Tribhovandas Bhimji Zaveri Ltd (TBZ) IPO. This means as per CRISIL, company has 'Average Fundamentals'. CRISIL assigns IPO grading on a scale of IPO Grade 5 to IPO Grade 1, with IPO Grade 5 indicating strong fundamentals and IPO Grade 1 indicating poor fundamentals. Click here to read more on TBZ IPO - CRISIL Rating

Significant Risks involved in the issue:
1. There are criminal proceedings pending against two of the company's independent Directors
2. The objects of the Issue includes the financing of the establishment of nine new large format high street showrooms in eight cities. However, interestingly, within the cities identified, the exact location of where these showrooms would be located has not yet been finalised
3. There are five third parties with the right to use the "Tribhovandas Bhimji Zaveri" name
4.The company does not register its jewellery designs under the Design Act, 2000 and may lose revenue if the designs are duplicated by competitors
5. For Fiscal 2011 and the nine months ended December 31, 2011, 94.15% and 93.69% of total turnover, respectively, was generated from concentrated regions. Hence, lack of geographical diversion can be a restriction for the company

Analysis of Financials:
Following are the financials of the company as per the Red Herring Prospectus filed by the company:

The company has managed to achieve a turnover of around Rs.1,194 Crores for FY ending 2011. The PAT margin for the said year comes to a rather scant 3.35%. As against this, Gitanjali Gems Ltd., a listed peer, has a bit stronger position with a Turnover of Rs.5,122 Crores and a PAT margin of around 4.38%. Besides, unlike Gitanjali Gems, lack of geographical diversity and extensive global presence can also be a bottleneck for TBZ.

Although a strong brand name and experienced management can be positives for the company, investors may not digest the risk factors and not so extraordinary financial performance of the company

MT Educare - Indian IPO Blog Analysis

noreply@blogger.com (CA Yash Ved) — Tue, 27 Mar 2012 17:11:00 +0000

MT Educare Limited, an education support and coaching services provider for students in the secondary and higher secondary school and popular with brand name "Mahesh Tutorials" is entering the capital markets with an IPO for equity shares aggregating to 3,500 lakhs (fresh issue) and an offer for sale of up to 80,00,000 equity shares.(including anchor portion of 17,37,914 equity shares.) MT Educare also provides coaching services for students pursuing graduation degree in commerce, preparing for various competitive examinations and undertaking chartered accountancy examinations

The IPO would remain open for subscription between March 27, 2012 and March 29, 2012. The object of the issue are for general corporate purposes and for:
1. Part financing the cost of construction of a PUC campus in Karnataka, which includes the cost of acquisition of land;
2. Establishing new Coaching Centres at 20 locations

Enam Securities Private Limited is the Book Running Lead Manager to the Issue while Link Intime India Pvt. Ltd. is the Registrar

IPO Grading:
CRISIL has assigned an IPO Grade 4 to MT Educare IPO. This means as per CRISIL, company has 'Above Average Fundamentals'. CRISIL assigns IPO grading on a scale of IPO Grade 5 to IPO Grade 1, with IPO Grade 5 indicating strong fundamentals and IPO Grade 1 indicating poor fundamentals. View MT Educare IPO Grading Report

Analysis of Financials:

Following are the standalone financials of the company as per the Red Herring Prospectus filed by the company:

The Net Worth of the company was Rs.47.75 Crores as on March 2011 which grew close to Rs.57 Crores till September 2011. On the revenue front, for financial year ended 31st March 2011, company reported Rs. 105 crore as total operating income, with PAT of Rs. 8 crore, on a consolidated basis. If we consider FY11, the EPS turns out to be around Rs.2.4. Assuming the shares would be issued at the upper end of the price band, i.e. at Rs.80/- per share, the resulting PE would still be on the higher side

Significant Risk Factors:
1. The company is heavily dependent on the services of the promoter Mahesh Shetty, directors and key members of the management team. Any damage to reputation of the promoter / his services may have an adverse impact on the business

2. There is heavy concentration when it comes to geographical diversity. Most of the coaching centres of the company are located in Mumbai and around 90% of the standalone fees is also received from there.

3. The company has provided loans to MT Educare Charitable Trust in the past at price not linked to market variables and may continue to do so in the future

4. Despite having loan burden of its own as on March 2011, In FY11, a loan of Rs.5 crore was given to a group company Neptune Venture and Developers

Concluding Remarks:
Even while keeping the growth and revenue potential of educational coaching centres in view, it may be difficult for investors to digest a heavier PE for a concentrated business such as this. The IPO may give some listing gains, but continued growth in shareholder value or rather the maintainability of the same over the long term remains a question keeping in view the risk factors involved

Understanding New IPO Listing norms by SEBI

noreply@blogger.com (CA Yash Ved) — Thu, 08 Mar 2012 07:21:00 +0000

According to the new norms mandated by SEBI for IPOs, investors must note that the shares offered under the IPO on the listing day, would initially go through a pre-open session period which will last for an hour between 9:00 AM and 10:00 AM. During this period, investors would be allowed to punch in orders, modify them and/or cancel them during the first 45 minutes, i.e. upto 9:45 AM. The rationale behind such a move is aimed at protecting the interest of the retail shareholders from artificial price-rigging on the bourses.

However, the crux of the new norms introduced by SEBI states that all the IPO listings on the bourses would be controlled by circuit limits right from the listing day. According to SEBI regulations, in case the equilibrium price (price at which the bid rate matches with the ask rate) is discovered during the pre-open session, the price band for normal trading session shall be 20 per cent of the equilibrium price. In case the equilibrium price is not discovered, then the 20 per cent circuit limit would be applicable on the issue price. While the above mentioned rules are in place for companies with issue sizes in excess of Rs.250 crore, the ones with issue size up to Rs.250 crore would have set circuit limits of 5 per cent either on the equilibrium price or the issue price as stated above.

Thus, taking the example of the recently concluded MCX IPO, since MCX falls in the bracket of Rs 250 crore and above, its shares would trade within the range of 20 per cent either on the equilibrium price or on the issue price. If in case the equilibrium price is not met during the pre-open session and the issue price becomes the trade open price during the normal hours, then the price would be restricted within a range that can hover upto 20% on either side of the Issue Price, i.e. the price cannot go in excess of Rs 1,238 per share on listing.

If in the first hour of trade, MCX gets a base equilibrum price of Rs.1,400, then the stock price can hover 20% on either side, i.e. in the range of Rs.1,120 to Rs.1,680 during the rest of the trading session. If the base price is discovered at Rs.1,500, then the stock price can roam around in the range of Rs.1,200 to Rs.1,800 and so on

Hence for all those investors who apply to IPOs with a view of enjoying stupendous listing day gains, these norms would imply a cap on their expected gains. While, the pre-open session is expected help cater to the unreasonably high volatility and price movements witnessed on the first day of listing in case of many IPOs, it remains to be seen how the regulation actually works out. Stay tuned to Indian IPO Blog for the latest happenings in the IPO market in India

MCX IPO - Indian IPO Blog Analysis

noreply@blogger.com (CA Yash Ved) — Tue, 21 Feb 2012 16:05:00 +0000

Multi Commodity Exchange of India Ltd (MCX), the Indian electronic commodity futures exchange, is entering the capital markets with an Initial Public Offering (IPO) with a certain amount of bang around it and an expectation from many of reviving the bleeding IPO market. Does it have what it takes? Let's try to find out....

MCX provides online trading facility along with clearing and settlement operations for commodity futures across India. MCX is the largest among the five officially recognized electronic multi-commodity national exchanges in India and accounts for more than 80% of the market share of the Indian commodity futures exchange industry. As of December 31, 2010, MCX has more than 2,107 registered members operating through over 180,000 trader work stations in over 1,139 cities across India. MCX emerged as the 5th largest exchange in the world

MCX IPO would be open for subscription between February 22, 2012 and February 24, 2012. Citigroup Global Markets India Private Limited, Edelweiss Capital Limited, Morgan Stanley India Company Private Limited are the Book Running Lead Manager to the Issue while Karvy Computershare Private Limited is the Registrar to the Issue

Promoter Background:
MCX is promoted by FTIL with a pre-IPO stake of 31.18%. FTIL is a software developer and a technical service provider of automated electronic solutions in the areas of finance and technology like foreign exchange, commodities and equities. It is listed on the BSE, the NSE, the Ahmedabad Stock Exchange and the Madras Stock Exchange. The promoters of FTIL are Mr Jignesh Shah (18.1%), Mr Dewang Neralla (0.13%) and La-Fin Financial Services Private Ltd (26.5%).

IPO Rating from CRISIL:
CRISIL has assigned an IPO Grade 5 to MCX IPO. This means as per CRISIL, the company has 'Strong Fundamentals'. CRISIL assigns IPO grading on a scale of IPO Grade 1 to IPO Grade 5, with IPO Grade 1 indicating poor fundamentals and IPO Grade 5 indicating strong fundamentals

The grade reflects MCX’s leadership position in the Indian commodity futures market over the past four years, with a share of 82% of the overall traded turnover in FY11. It is a leader in the trading of bullion, crude oil, copper and natural gas (which accounted for ~85% of MCX’s traded turnover in FY11). Historically, metals and energy commodities have witnessed lower regulatory intervention. With a strong technology-backed trading platform and infrastructure (supplied by its promoter Financial Technologies India Ltd), MCX is able to provide high liquidity and low impact cost of transactions – key criteria for the success of any exchange

According to the Grading Report, the grade takes into account the benefits that MCX will derive from amendments to the Forward Contracts (Regulation) Act, which will allow trading of options and indices, and participation by institutional investors, leading to increase in the traded turnover on commodity exchanges. The grade also draws support from MCX’s strong management team and its ability to attract talented and experienced personnel

While new commodity exchanges have been set up over the past couple of years, they have not been able to nudge MCX from the top. However, given the high profitability and cash-churning nature of the business, we expect competition to intensify in the future

Read Analysis of Financials and more in MCX IPO - Analysis - Part 2>>

MCX IPO - Indian IPO Blog Analysis - Part 2

noreply@blogger.com (CA Yash Ved) — Tue, 21 Feb 2012 16:04:00 +0000

Analysis of Financials of MCX IPO:
The Statement of Assets and Liabilities and Income and Expenses of the Company as per the RHP are as under:

Statement of Financial Position:

The company is building upon strongly on the Net Worth from around Rs.5000 mn in FY09 to around Rs.8500 mn in FY11. MCX holds long-term investments in other operational exchanges – MCX Stock Exchange Ltd (5% equity stake) and Dubai Gold and Commodities Exchange Ltd (5% equity stake). MCX also holds 634 mn warrants in MCX-SX, which carry no voting or dividend rights. The company therefore, has the option to generate more cash as and when it decides to liquidate these investments

Statement of Income:

MCX’s sources of operating income are
(a) Transaction fees,
(b) Membership admission fees,
(c) Annual subscription fees and
(d) Terminal charges

Transaction fee is the largest contributor to operating revenue. MCX’s operating revenue has grown at a CAGR of 32% over FY09-11, with much of the growth coming through transaction fees, which grew at a CAGR of 37% over the same period.

EBITDA margin improved to 60.4% in FY11 from 53.6% in FY09, on account of operating leverage. Also, adjusted PAT margin has improved from 35.5% in FY09 to 39.4% in FY11

The company also has an excellent business profile. MCX offers more than 40 commodities across various classes such as bullion, ferrous and non-ferrous metals, and a number of agri-commodities on its platform. Globally, MCX is the largest silver exchange; the second largest gold, copper and natural gas exchange; and the third largest crude oil exchange in terms of the number of contracts traded in each of these commodities

Taking into account the strong profile of the company backed by financial performance, the IPO is clearly worthy of a full blooded go.

Read Indian IPO Blog Analysis on MCX IPO - Part 1

Indo Thai Securities IPO - An Indian IPO Blog Insight

noreply@blogger.com (CA Yash Ved) — Sat, 01 Oct 2011 18:20:00 +0000

Indo Thai Securities Limited has entered the capital markets with a Public issue of 40,00,000 Equity Shares of Rs.10/- each. The Issue would remain open for subscription between Sep 30, 2011 to Oct 5, 2011

The Price Band for the 100% Book Building Issue is fixed at Rs.70/- to Rs.84/- per equity share with a bid lot of 80 Equity Shares and in multiples thereof. Corporate Strategic Allianz Limited is the Book Running Lead Manager to the Issue with Hem Securities Limited being its Syndicate Member and Sharepro Services (India) Private Limited being the Registrar to the Issue

Company Profile:
Indo Thai Securities is an Indian Stock Broking Company providing trading services in Indian Equity Market (BSE and NSE), Future & Options and Currency Derivatives Segments. The company also provides depository services through Central Depository Services (India) Limited. Other services offered by Indo Thai Securities includes Mutual Fund Service System (MFSS) & Interest Rate Futures (IRF) from NSE. The company is promoted by Mr. Parasmal Doshi and Mr. Dhanpal Doshi

IPO Grading/Rating:
CARE has assigned a “CARE IPO GRADE 2” to the proposed IPO issue of Indo Thai Securities Limited (ITSL) “CARE IPO GRADE 2” indicates "Below Average Fundamentals", CARE assigns IPO Grade on a scale of Grade 5 to 1, with grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. Care’s IPO Grading is an opinion on the fundamentals of the issuer. The grade assigned to
any individual issue represents a relative assessment of the fundamentals of the issuer

The grading of Indo Thai Securities Limited (ITSL) is constrained due to the small scale of operating in a highly competitive broking industry marked by the low market share and limited revenue diversification. The geographical concentration with the limited branches network and high dependency on the capital market which are inherent volatile leading to uncertainties in ITSL’S earning profile, further constrain in grading. The grading however takes into account the experience of the promoters with the track record of more than two decades and comfortable financial risk profile commensurate with the present scale of operation

Special Concerns:

The company is involved in a number of legal proceedings amounting to Rs. 4145.06 Lacs against its promoter/directors and company and amount of Rs. 428.80 Lacs against the Group Companies, which, if determined against the company, could adversely affect its business and financial condition
The company is not the owner of its Registered Office. The same has been taken on lease from a certain Paras Doshi (H.U.F.) for a period of 6 years commencing on May 01, 2008 till April 30, 2014.
The company has not complied with AS15 – Accounting for retirement benefit in the financial
statements

Analysis of Financials:
The Statement of Assets and Liabilities and Income and Expenses of the Company as per the RHP are as under:

At an EPS of Rs.1.77, the company comes at a PE multiple of 47.45 times on the upper end of the price band and about 39.55 times on the lower end of the price band, which clearly makes Indo Thai Securities a highly expensive bet. Similar companies with wider geographical coverage and larger scale of operations are trading much cheaper in the listed area. The fundamentals of the company simply cannot justify the price band at which the IPO is made

Indo Thai Securities Limited - A Company Profile

noreply@blogger.com (CA Yash Ved) — Sat, 01 Oct 2011 06:11:00 +0000

Indo Thai Securities is an Indian Stock Broking Company providing trading services in Indian Equity Market (BSE and NSE), Future & Options and Currency Derivatives Segments. The company also provides depository services through Central Depository Services (India) Limited. Other services offered by Indo Thai Securities includes Mutual Fund Service System (MFSS) & Interest Rate Futures (IRF) from NSE. The company is promoted by Mr. Parasmal Doshi and Mr. Dhanpal Doshi

According to the company's website, it offer services in following segments:

NSE - National Stock Exchange
• Capital market
• Future & Options
• Currency Derivative
• Mutual Fund Service System (MFSS)
• Interest Rate Futures (IRF)

BSE - Bombay Stock Exchange
• Capital market
• Future & Options

NCDEX - National Commodity and Derivative Exchange
• Commodity and Derivative

MCX - Multi Commodity Exchange
• Commodity and Derivative

MCX-SX - MCX Stock Exchange
• Currency Derivative

USE - United Stock Exchange
• Currency Derivative

ICEX - Indian Commodity Exchange
• Commodity and Derivative

ACE - Ace Derivatives & Commodity Exchange
• Commodity and Derivative

Depository Services
• Central Depository Services (India) Limited (CDSL)

Flexituff International IPO - Company Profile

noreply@blogger.com (CA Yash Ved) — Sat, 01 Oct 2011 06:08:00 +0000

Flexituff International Limited is engaged in the business of manufacturing Flexible Intermediate Bulk Containers (FIBC), Geo-Textile Fabric and Ground Cover, Reverse Printed Biaxially Oriented Polypropylene (BOPP) Woven Bags, Special Polypropylene (PP) Bags including Leno Bags.

Company has three integrated and self-sufficient manufacturing units located in Pithampur (M.P.) and Kashipur (Uttrakhand). Flexituff also has a recycling and reprocessing plant at Kandla which is used for recovering polypropylene and making various compounds of plastic

The promoters of the company are:
1. Kalani Industries Pvt Ltd (KIPL)
2. Miscellani Global Pvt Ltd (MGPL)
3. Sanovi Trading Pvt Ltd (STPL)

The product portfolio of the company according to its website is as under:
• High-end Bags for Food and Pharma industry
• Sift -proof Bags
• Baffle Bags
• Form-fitted Liner Bags
• Builder Bag / Tunnel-lift
• Single-loop Bags
• Sling Bags

Avoid M&B Switchgears IPO: Hem Securities Research Report

noreply@blogger.com (CA Yash Ved) — Sat, 01 Oct 2011 05:55:00 +0000

Hem Securities has come out with a Research Report on the upcoming IPO of M&B Switchgears Limited with an "AVOID" remark

According to the Report from Hem Securities, the company is bringing the issue at price band of Rs 180-186 which will convert into p/e multiple of more than 100 on post issue FY’11 EPS of Rs 0.39.
The company with relatively small scale of operation as compare to its large peers is into high working capital intensive business . Co also has negative fund flow from operations over the last two years. Also
company is looking very expensive at price band at which it is bringing the issue

Taksheel Solutions Limited IPO Analysis

noreply@blogger.com (CA Yash Ved) — Thu, 29 Sep 2011 09:38:00 +0000

Taksheel Solutions Limited, an IT company serving the financial services industry, has entered the capital markets with an IPO of 55,00,000 Equity Shares of Rs.10/- each to be issued in a Price Band of Rs.130/- to Rs.150/- per equity share. Applications can be made in a Bid Lot of 45 Equity Shares and in multiples thereof

The IPO has been rated by Rating Agency CARE. The IPO would remain open for subscription between September 29, 2011 and October 4, 2011. PNB Investment Services Limited is the Book Running Lead Manager to the Issue. The Syndicate Members are PNB Investment Services Limited, Reliance Securities Limited and Inventure Growth and Securities Limited, while Bigshare Services Pvt. Ltd. is the Registrar to the Issue

Company Profile:
Taksheel Solutions Limited is IT company engaged in the business of providing products and services to the financial services industry, Information Technology & Telecom. The Company is headquartered in Hyderabad, and provides professional IT services to global clients. Taksheel offers Wealth Management Technology Solutions, Telecom Solutions, Business Intelligence, Data Warehousing, Application Development and Application Maintenance

Taksheel focused vitally on business sectors such as Finance, Information Technology, and Telecom. Entire offering supports customization and flexibility to customer’s requirement and provides extensive support with pre-defined SLA’s
According to the company's website the following are some of the services that Taksheel Solutions has on offer:

Wealth Management: Wealth management to financial institutions offerings such as Asset and Investment managers, Brokerage houses, Insurance, Hedge funds, Trusts and Family Offices.

Telecom: Enterprise IP telephony Solutions, Carrier Switching & Billing Solutions, Contact Center Solutions, IVRS, SMSC, Voice & Video Conference solutions, Chat platforms, Content Delivery Platforms, Closed Private GSM network (CPMN) and more.

Information Technology: Enterprise Network Implementation(LAN,WAN,MAN), OS migration to open source, Software Development, Application customization, Managed IT services (Desktop,Server,Network,NOCsupport) Server Implementation & Support(Windows,Unix,Sun,Linux),Data Storage Network(SAN,NAS),Network & Data Security Solutions, Network Monitoring System, NOC support Systems, Data center and Disaster recovery center implementation, CRM solution

IPO Grading: The Issue has been graded by Credit Analysis & Research Ltd (CARE) and CARE has assigned a ‘CARE IPO Grade 2’ [Grade Two] indicates “Below average fundamentals”. The IPO Grading is assigned on a 5 point scale from 1 to 5 with an ‘IPO Grade 5’ indicating strong fundamentals and an ‘IPO Grade 1’ indicating poor fundamentals

Click here to download complete grading report

Analysis of Financial Information:
The following is the Balance Sheet and Profit and Loss A/c. of the company as per the Red Herring Prospectus filed by the company:

The Balance Sheet shows Reserves and Surplus figure at around Rs.74.25 Crores, which is comforting to look at as a percentage of Total Shareholders' funds, especially after looking at Balance Sheets of some of the recent IPOs where there is serious crunch in this area.

A spurt both in the topline as well as the Net Profit can be seen in FY11 when compared to the rate of growth in both of these attributes in the earlier years. For the FY11, the company has reported a Total Income at around Rs.147.26 Crores and posted a PAT of around Rs.27.42 Crores, earning a Net Profit margin of around 18.62%. This is largely due to the fact that the company operates in SEZ and therefore the tax liability is NIL. However, it has to be noted that with effect from FY2012 onwards, this profit margin is not expected to be sustained since MAT @ 18.5% will be applicable to the company.

The Company has posted a PAT of Rs.27.42 Crores in FY11, with around 1.66 Crores shares outstanding, translating into an EPS of Rs.16.51 per share. At the upper end of the Price Band, the PE multiple would work out to be around 9 times the earning per share, which can be considered at the higher end considering that many listed peers are trading in single digit PE multiples

Concluding Remarks:
The company, unlike most others coming up with an Issue these days, does not look too bad fundamentally. However, it must be remembered that the high profitability is due to the tax holiday enjoyed by the company. Also, there are risks associated with its geographical presence in the United States where the IT sector is expected to face the adverse effects of the risk of global slowdown. The company may give some amount of listing gains but investors may not be willing to take the risk and give the IPO a skip

Onelife Capital Advisors IPO - Analysis and Insight

noreply@blogger.com (CA Yash Ved) — Tue, 27 Sep 2011 18:47:00 +0000

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:

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

M and B Switchgears Limited IPO - An Analysis

noreply@blogger.com (CA Yash Ved) — Tue, 27 Sep 2011 17:39:00 +0000

M and B Switchgears Limited, engaged in manufacturing of distribution transformers, power transformers, furnace/rectifier transformers and special purpose transformers, has entered the capital markets with an Initial Public Offer (IPO) of 50,00,000 Equity Shares with a Face Value of Rs.10/- each

The 100% Book Building Issue is offered in a Price Band of Rs.180/- to Rs.186/- per equity share with a bid lot of 30 Equity Shares and in multiples thereof. The IPO has been rated by rating agency ICRA. D&A Financial Services Private Limited is the Book Running Lead Manager to the Issue. Sumpoorna Portfolio Limited and Inventure Growth and Securities Limited are the Syndicate Members while Bigshare Services Private Limited is the Registrar to the Issue. The IPO is scheduled to remain open for subscription between Wednesday, September 28, 2011 to Wednesday, October 05, 2011

Company Profile:
M and B Switchgears Limited is in business of manufacturing transformers for more than 30 years. The Company's existing annual production capacity in terms of KVA is 75,000 KVA of transformer per month on single shift basis and annual aggregate capacity is 9,00,000 KVA per annum.

M and B Switchgears Limited has the capacity to manufacture 5,109 transformers per annum. Company's client-base includes almost all electricity boards and many industrial groups including steel, power, pharma, textile, automobile etc., public sector companies like NCL, SECL, WCL, Ordanace factory and various other government utilities.

The company is promoted by Mr. Shyam Sunder Mundra, Mr. Vikalp Mundra and Mr. Anurag Mundra

IPO Grading:
ICRA has assigned an IPO Grade 2 to M and B Switchgears IPO. This means as per CARE, company has "Below Average Fundamentals". ICRA assigns IPO grading on a scale of IPO Grade 5 to IPO Grade 1, with IPO Grade 5 indicating strong fundamentals and IPO Grade 1 indicating poor fundamentals

Analysis of Financials:
The following is the summary Statement of Profit and Loss and Statement of Assets and Liabilities as per the Red Herring Prospectus filed with NSE:

A look at the Balance Sheet would unlock that the company's Equity Share Capital has increased from Rs.85.83 Lakhs for the year ended FY10 to Rs.1500 Lakhs for the year ended FY11, while at the same time the Reserves and Surpluses have reduced from Rs.965.16 Lakhs in FY10 to Rs.112 Lakhs in FY11. It sounds astonishing when companies ask for a premium of Rs.170/- to Rs.176/- on the Face Value, which translates to a post issue premium of Rs.45 Crores when the company has barely Rs.1.12 Crores in the reserve as per the latest audited accounts

M and B has glaring negative cash flows from operations to the tune of Rs.161.95 in FY09 and Rs.444.29 in FY10. Besides, in last three years the company's average return on net worth has been at around 6.4%, which can be considered low. A look at the listed peers may clearly provide quality alternatives at much reasonable prices in the listed space

M and B Switchgears Limited - A Company Profile

noreply@blogger.com (CA Yash Ved) — Tue, 27 Sep 2011 16:54:00 +0000

M and B Switchgears Limited is engaged in manufacturing of distribution transformers, power transformers, furnace/rectifier transformers and special purpose transformers

M and B Switchgears Limited is in business of manufacturing transformers for more than 30 years. The Company's existing annual production capacity in terms of KVA is 75,000 KVA of transformer per month on single shift basis and annual aggregate capacity is 9,00,000 KVA per annum.

M and B Switchgears Limited has the capacity to manufacture 5,109 transformers per annum. Company's client-base includes almost all electricity boards and many industrial groups including steel, power, pharma, textile, automobile etc., public sector companies like NCL, SECL, WCL, Ordanace factory and various other government utilities.

The company is promoted by Mr. Shyam Sunder Mundra, Mr. Vikalp Mundra and Mr. Anurag Mundra

Tijaria Polypipes Limited IPO - An Insight

noreply@blogger.com (CA Yash Ved) — Mon, 26 Sep 2011 17:24:00 +0000

Tijaria Polypipes Limited, a company engaged in the business of plastic pipes, has entered the capital markets with an Initial Public Offer (IPO) of Equity Shares having a Face Value of Rs.10/- each. The IPO would be open for subscription between Tuesday, September 27, 2011 and Thursday, September 29, 2011

Tijaria Polypipes Limited IPO is a Fixed Price Issue meaning thereby that there would be no Price Band for the IPO, but only a Fixed Issue Price of Rs.60/- per equity share. The company proposes to list its shares on both the exchanges BSE and NSE. Applications can be made in a bid lot of 100 Equity Shares and in multiples thereof, translating to a minimum application of Rs.6,000/- Hem Securities Limited is the Book Running Lead Manager to the Issue and Sharex Dynamic (India) Pvt. Ltd. is the Registrar to the Issue

Company Background:
Tijaria Polypipes Ltd is an ISO 9001:2000 certified company engaged in the business of plastic pipes. Tijaria is manufacturer of pre-lubricated HDPE pipes (PLB HDPE), PVC & SWR pipes, sprinkler pipes and systems, flat tubes, fittings and PET straps under the registered brand name of Tijaria and Vikas. The company produces a big product range in the field of plastics, HDPE sprinkler, drip irrigation, micro irrigation, telecommunications etc.

Tijaria's product offerings include HDPE pipes, PVC pipes, LLDPE pipes, HDPE DWC pipes, PLB HDPE Ducts, MDPE pipes, uPVC RIGID & BLUE CASING pipes, Pet Granules, MICRO/DRIP Irrigation System, SWR PIPES & FITTINGS, PPR Pipes & Fittings, HDPE Sprinkler System. These products are used in irrigation, telecommunication, industrial, and infrastructure and housing sector. Total production capacity of Tijaria Polypipes is 25163 million tonnes per annum (MTPA)

According to the company's website, Tijaria is coming up with expansion cum diversification plan with a separate manufacturing unit at Sitapura Industrial Area, Jaipur

IPO Grading
Credit Rating Agency ICRA has assigned an IPO Grade 2/5 to the upcoming IPO of Tijaria Polypipes Ltd. The rating implies that as per ICRA, company has 'Below Average Fundamentals'. ICRA assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals

Analysis of Financials
For the FY ended 2011, the company has posted total revenue at Rs.119 Crores and earned a NPAT of Rs.7 Crores. Thus, the Net Profit Margin of the company turns out to be just under 6%. A conjoint reading of the EPS at Rs.5.3 with the Issue Price of Rs.60/- per share means that the price of the IPO is at a PE Ratio of about 11.30 times of its earnings which can be considered as aggressive considering the PE multiples of similar listed companies

Other Remarks:
There are serious issues with the management of the company. The company has not followed some of the accounting standards issued by ICAI such as AS-15 on Employee Benefits as also it failed to attach Cash Flow Statement as required by AS-3 in its accounts for the Financial year ended March 31, 2008 and March 31, 2009. Besides, for the aforesaid two years, the company also failed to print disclosures regarding Related Party transactions as required by AS-18. Besides, the company's top 10 customers contributed about 70% of total sales in FY10

Considering the pricing of Rs.60/- per share and a look at the peer PE multiples suggest the pricing of the Issue to be clearly aggressive and investors may choose to give it a skip

Swajas Air Charters Limited IPO | Analysis and Insight - Part 2 of 2

noreply@blogger.com (CA Yash Ved) — Sun, 25 Sep 2011 14:43:00 +0000

Analysis of Financials:

Out of the three years' data provided in the prospectus, the company has reported Negative Cash Flows from Operating Activities in two of the years. For FY09, the company has reported net cash flow from operating activities at Rs.(508.53) lakhs and for FY11, the negative cash flow was posted at Rs.(154.61) lakhs.

The following is the financial position of the company as per the Red Herring Prospectus filed with SEBI:

For the FY11, the company has posted a Net Profit After Tax of Rs.1.34 Crores as against a total revenue of Rs.32.63 Crores, translating to a thin margin of close to around 4% of total income, Although this margin has improved marginally as compared to last year's NP Margin which was around 2.7%, the high operating costs of Charter is likely to restrict the NPM to a large extent

Besides, the prices of Aviation Tribune Fuel (ATF) in India, which is a key component of company's operating costs continue to be higher than the global rates, making ATF account for almost 35-40% of the operating cost as compared to the global average of 20-25%. The business operations and profitability may be adversely affected by increasing rates of Aviation Tribune Fuel (ATF)

A look at the Balance sheet front reveals that the Equity Share Capital of the company has increased significantly to Rs.11.25 Crores in FY11 as compared to merely around Rs.2.6 Crores in FY ending 2010.

Moreover, high dependence on a few customers can be inferred from the fact that the revenues from the top 10 customers constituted approximately 82% and 66% of companies' revenues for FY 2010 and FY 2011 respectively. Loss of one or more of these major customers may have a material adverse effect on the business, results of operations and financial condition of the company

Considering the thin profit margins,the price band of Rs.90/- to Rs.100/- may be considered to be on a higher PE note and the issue is clearly expensive

Swajas Air Charters Limited IPO | Analysis and Insight - Part 1 of 2

noreply@blogger.com (CA Yash Ved) — Sun, 25 Sep 2011 14:43:00 +0000

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:

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

Onelife Capital Advisors Limited - Company Profile

noreply@blogger.com (CA Yash Ved) — Sun, 25 Sep 2011 14:07:00 +0000

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

Swajas Air Charters - Company Profile and Information

noreply@blogger.com (CA Yash Ved) — Sat, 24 Sep 2011 17:31:00 +0000

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 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

RDB Rasayans Limited IPO - An Indian IPO Blog Insight

noreply@blogger.com (CA Yash Ved) — Tue, 20 Sep 2011 17:56:00 +0000

RDB Rasayans Ltd, a packaging material manufacturer, engaged in manufacture and sale of FIBC (Jumbo Bags), Woven Sacks and various woven polymer based products, has entered the capital markets with Public Issue of 45, 00,000 Equity Shares of Rs.10/- each. The IPO would remain open for subscription for 3 days between September 21, 2011 and September 23, 2011

The Pricing of the 100% Book Building Issue has been done rather ambitiously at Rs.72/- on the lower end of the price band and Rs.79/- at the upper end of the price band. Chartered Capital And Investment Limited is the Book Running Lead Manager as well as the Syndicate Member for the IPO, while Link Intime India Pvt. Ltd. is the Registrar to the Issue. Applications can be made in a Price Band of 80 Equity Shares and in multiples thereof. Brickwork Ratings India Private Limited has assigned the IPO Grading to the Issue

A factor worthy of a note is that the equity shares will be listed only on the Bombay Stock Exchange (BSE) and not on National Stock Exchange (NSE)

Company Background:
RDB Rasayans Ltd. is a subsidiary of RDB Industries Ltd. and engaged in manufacture and sale of FIBC (Jumbo Bags) and Woven Sacks and and various woven polymer based products like container liners, protective irrigation system, canal liners, etc. These products use fertilizers, cement, polymers, chemicals, textiles, machinery, automobiles and steel industry etc. Its manufacturing facility is located in West Bengal

RDB Rasayans Ltd. manufactures fabrics for the manufacture of FIBC and sacks; flat and triplex tapes in India. Its products include bulk bags FIBC, such as corner and full loop, circular, sling loop, UN, conductive, and electrostatic bags, as well as standard bulk bags for agricultural products and construction materials; and multiwall bags, which include PP and PE valve bags, and lami bags. RDB Rasayans exports its products to various countries in Europe, Australia, and the Middle East. The company was founded in 1995 and is based in Kolkata, India.

It can be seen that the company's product portfolio essentially consists of only Bulk Bags (FIBC) and Multiwall Bags. The Company plans to utilize the proceeds from the IPO to finance the capital expenditure to enhance the manufacturing capacity by establishing another unit besides meeting the issue expenses and general corporate purposes

IPO Grading:
Brickwork Ratings (BWR) has assigned BWR IPO Grade 2 to the proposed IPO of RDB Rasayans Limited (“RRL”). Brickwork Ratings’ BWR IPO Grade 2 indicates "Below Average Fundamentals" for the issue in relation to its peers. BWR assigns IPO grading on a scale of IPO Grade 5 to IPO Grade 1 with Grade 5 signifying strong fundamentals and Grade 1 poor fundamentals of the issue in relation to its peers

According to the Grading Report from Brickwork Ratings, the grading factors RRL’s experienced management team and promoter group, strategic cost/logistic advantage enjoyed by RRL due to their location close to clients and ports, healthy growth of domestic packaging industry as well as demand from Western and European countries and good clientele and suppliers. The grading is constrained by volatility of raw material prices and RRL’s inability to fully pass on the production price hikes, negative cash flows from operations, fragmented nature of industry with high level of regulation, number of litigations against the promoter and group companies, risk of adverse business environment with regard to labor unrests and cyclicality of end-user sectors

Click here to download the complete grading report of Brickwork Ratings

Analysis of Financials:
A significant factor worth consideration when it comes to the financials of the company is the negative cash flow from operations. The Prospectus filed with SEBI details the following cash flow position of the company during the preceding five years:

As can be seen from the above, the Net Cash Flow from Operating Activities of the company has been widely volatile and also cuts across into the negative quadrant for FY ending on 31-3-2008 and FY ending on 31-3-2011

The following is the company's statement of assets and liabilities and Profit and Loss statement as per the RHP filed with SEBI:

For the FY ending 31-3-2011, on a Sales of around Rs.46.13 Crs, the company has posted a PAT of only about Rs.1.80 Crs, which implies a profit margin of less than 4% of the revenue. The story in earlier four years has also been quite similar with profit to sales margin remaining under 6% in those years as well

The Equity base for the company is also comparatively high with Equity Share Capital alone constituting around 74% of the total Net Worth of the company. For the FY11, the EPS of the company comes to around 1.37, which when compared to the Price Band, gives an exorbitant PE multiple of around 53 times even at the lower end of the Price Band.

Special Remarks:
The general volatility of raw material prices and RRL’s inability to fully pass on the production price hikes may result in lower profit margins leading to low profitability in future. Besides, negative cash flows from operations and a number of litigations against the promoter and group companies plays a significant role in denting the credibility of the IPO. Investors may want to give the IPO a skip and opt for listed stocks with better profit margins and stronger fundamentals

Prakash Controwell Limited IPO - Indian IPO Blog Insight

noreply@blogger.com (CA Yash Ved) — Mon, 19 Sep 2011 09:59:00 +0000

Prakash Constrowell Limited, a construction company headquartered in Nashik, Maharashtra, has entered the capital markets with an Initial Public Offer (IPO) to raise Rs.60 Crores. The issue would remain open for subscription between September 19, 2011 and September 21, 2011.

The 100% Book Building Issue would be in a price band of Rs.130/- to Rs.138/- per equity share for shares having a Face Value of Rs.10/- each. The applications can be made in a bid lot of 50 Equity Shares and in multiples thereof. Intensive Fiscal Services Private Limited, based in Mumbai is the Book Running Lead Manager to the Issue while Bigshare Services Pvt. Ltd. is the Registrar to the issue.

Company Background:

Prakash Constrowell Limited is a construction company predominantly engaged in the business of infrastructure development and civil construction. The company provides integrated engineering, procurement and construction services. It undertakes projects for various Government / semi-government bodies and other private sector clients. Company is headquartered at Nasik, Maharashtra and has operations across the state of Maharashtra. The promoters of the company are Mr. Prakash P. Laddha and Mrs. Aruna P. Laddha

The company focuses on the following segments of construction :

Infrastructure development; including construction and maintenance of roads / highways, bridges, including projects on public private partnership (PPP) model, industrial parks, work-shops, hospitals, educational institutions;
Civil construction; including, Government staff quarters, hostel buildings and auditoriums;
Residential and commercial real estate construction

IPO Grading:

The IPO was assigned the grading by Credit Rating Agency CARE and was assigned an IPO Grade 2/5 indicating "Below Average Fundamentals". CARE assigns IPO grading on a scale of IPO Grade 5 to IPO Grade 1, with IPO Grade 5 indicating strong fundamentals and IPO Grade 1 indicating poor fundamentals.

According to the grading report, the grading reflects the promoters' significant experience in the construction business and demonstrated track record in the execution of small to medium sized projects. The Grading is however, constrained by Prakash Constrowell Limited's relatively moderate scale of operations, fluctuating operating profit margin, highly competitive nature of the industry, geographical concentration of projects in the state of Maharashtra and the client concentration risk. (Click here to download complete grading report from CARE)

Analysis of Financials

According to the Red Herring Prospectus (RHP) filed with SEBI, the following are the financials of the company:

The company has posted a Net Profit After Tax (PAT) of around Rs.10.6 Crs for F.Y. 2010-11 as against around Rs.8.05 Crs for the preceding financial year. The company is asking for a price of around Rs.130/- to Rs.138/- a share, which implies a PE multiple of more than 10 times even on the lower end of the price band. Considering the relatively smaller size of its operations, the pricing of the IPO looks clearly stretched. Investors would have to decide whether they want to go for an expensive new company as against its relatively cheaper listed peers

Prakash Constrowell Limited | Company Profile

noreply@blogger.com (CA Yash Ved) — Sun, 18 Sep 2011 12:30:00 +0000

Prakash Constrowell Limited is a construction company predominantly engaged in the business of infrastructure development and civil construction. It is a fast growing company that provides integrated engineering, procurement and construction services. It believes in providing high quality and innovative projects on a timely basis. It undertakes projects for various Government / semi-government bodies and other private sector clients. Company is headquartered at Nasik, Maharashtra and has operations across the state of Maharashtra.

Company focuses on the following segments of construction :

Infrastructure development; including construction and maintenance of roads / highways, bridges, including projects on public private partnership (PPP) model, industrial parks, work-shops, hospitals, educational institutions;
Civil construction; including, Government staff quarters, hostel buildings and auditoriums;
Residential and commercial real estate construction

According to the company's website, Prakash Constrowell Limited is registered as Class 1A contractor with the Public Works Department, Government of Maharashtra; wherein company can bid for a range of contracts without restriction on any cost parameters. Further, Company is also registered with other Government/semi-government bodies to bid for various types of construction projects

Tijaria Polypipes Limited - Company Profile

noreply@blogger.com (CA Yash Ved) — Sun, 18 Sep 2011 12:26:00 +0000

Tijaria Polypipes Ltd is an ISO 9001:2000 certified company engaged in the business of plastic pipes. Tijaria is manufacturer of pre-lubricated HDPE pipes (PLB HDPE), PVC & SWR pipes, sprinkler pipes and systems, flat tubes, fittings and PET straps under the registered brand name of Tijaria and Vikas. The company produces a big product range in the field of plastics, HDPE sprinkler, drip irrigation, micro irrigation, telecommunications etc.

Tijaria's product offerings include HDPE pipes, PVC pipes, LLDPE pipes, HDPE DWC pipes, PLB HDPE Ducts, MDPE pipes, uPVC RIGID & BLUE CASING pipes, Pet Granules, MICRO/DRIP Irrigation System, SWR PIPES & FITTINGS, PPR Pipes & Fittings, HDPE Sprinkler System. These products are used in irrigation, telecommunication, industrial, and infrastructure and housing sector. Total production capacity of Tijaria Polypipes is 25163 million tonnes per annum (MTPA)

According to the company's website, Tijaria is coming up with expansion cum diversification plan with a separate manufacturing unit at Sitapura Industrial Area, Jaipur

RDB Rasayans Limited - Company Profile

noreply@blogger.com (CA Yash Ved) — Sun, 18 Sep 2011 12:02:00 +0000

RDB Rasayans Ltd, a packaging material manufacturer, engaged in manufacture and sale of FIBC (Jumbo Bags) and Woven Sacks and and various woven polymer based products like container liners, protective irrigation system, canal liners, etc. These products use fertilizers, cement, polymers, chemicals, textiles, machinery, automobiles and steel industry etc. Its manufacturing facility is located in West Bengal

RDB Rasayans Ltd. manufactures fabrics for the manufacture of FIBC and sacks; flat and triplex tapes in India. Its products include bulk bags FIBC, such as corner and full loop, circular, sling loop, UN, conductive, and electrostatic bags, as well as standard bulk bags for agricultural products and construction materials; and multiwall bags, which include PP and PE valve bags, and lami bags. RDB Rasayans exports its products to various countries in Europe, Australia, and the Middle East. The company was founded in 1995 and is based in Kolkata, India. RDB Rasayans Ltd. is a subsidiary of RDB Industries Ltd.

According to the company's website, the following is the list of products of the company:

(1) BULK BAGS (FIBC)

Standard Bags
Baffle Bags
Corner Loop Bags
Full Loop Bags
Circular Bags
Sling Loop Bags
UN Bags
Conductive Bags
Electrostatic Bags

(2) MULTIWALL BAGS

PP Valve Bags
PE Valve Bags
Lami Bags

Taksheel Solutions Limited - Company Profile

noreply@blogger.com (CA Yash Ved) — Sun, 18 Sep 2011 11:54:00 +0000

Taksheel Solutions Limited is IT company engaged in the business of providing products and services to the financial services industry, Information Technology & Telecom. The Company is headquartered in Hyderabad, and provides professional IT services to global clients. Taksheel offers Wealth Management Technology Solutions, Telecom Solutions, Business Intelligence, Data Warehousing, Application Development and Application Maintenance

Taksheel focused vitally on business sectors such as Finance, Information Technology, and Telecom. Entire offering supports customization and flexibility to customer’s requirement and provides extensive support with pre-defined SLA’s

According to the company's website the following are some of the services that Taksheel Solutions has on offer:

Wealth Management: Wealth management to financial institutions offerings such as Asset and Investment managers, Brokerage houses, Insurance, Hedge funds, Trusts and Family Offices.

Telecom: Enterprise IP telephony Solutions, Carrier Switching & Billing Solutions, Contact Center Solutions, IVRS, SMSC, Voice & Video Conference solutions, Chat platforms, Content Delivery Platforms, Closed Private GSM network (CPMN) and more.

Information Technology: Enterprise Network Implementation(LAN,WAN,MAN), OS migration to open source, Software Development, Application customization, Managed IT services (Desktop,Server,Network,NOCsupport) Server Implementation & Support(Windows,Unix,Sun,Linux),Data Storage Network(SAN,NAS),Network & Data Security Solutions, Network Monitoring System, NOC support Systems, Data center and Disaster recovery center implementation, CRM solution

Avoid PG Electroplast IPO: Research Report from MLR Research

noreply@blogger.com (CA Yash Ved) — Thu, 08 Sep 2011 06:19:00 +0000

MLR Research has come out with a Research Report on the upcoming IPO of PG Electroplast Limited with an "AVOID" remark. PG Electroplast is an electronic manufacturing services provider, whose IPO would open for subscription till September 12, 2011

The company manufactures and assembles a comprehensive range of consumer electronic components and finished products such as colour television (CTV) sets & components, air conditioners (ACs) sub-assemblies, DVD players and Compact Fluorescent Lamps (CFL) for third parties. As backward integration, it also does plastic injection moulding and manufacture printed circuit boards (PCB) assemblies for CTVs, DVD players and CFL

PG Electroplast Limited intends to use that money for prepayment of the portion of term loan and line of credit facility proposed to be availed by company for the expansion under Phase I; expansion of manufacturing facility at Unit III, Greater Noida; expansion of manufacturing facility at Unit IV, Pune; and for long term working capital requirements. The Report from MLR Research included the following on the company

Company Background
PG Electroplast is into manufacturing and assembling of consumer electronic products like colour television sets (CTVs) & components, DVD players, air conditioners among others for OEMs. As part of backward integration, the company also manufactures plastic injection mouldings and Printed Circuit Board (PCB) assemblies for CTVs, DVD players and Compact Fluorescent Lamps (CFL).
The manufacturing facilities of PGEL are located at Greater Noida, Uttar Pradesh and Roorkee, Uttrakhand with total installed capacity of 16 lakh pieces p.a. for PCB assemblies for CTVs and DVDs. 6.6 tonnes p.a, for plastic injection mouldings, 16.1 lakh pieces p.a. for CTVs, 3 lakh pieces p.a. for DVDs, 30 lakh pieces p.a for CFL assemblies and 30 lakh pieces p.a. for PCB assemblies. PGEL's Roorkee plant enjoys tax benefits under Industrial Policy, 2003 by the Central Government.
Mr. Promod Gupta is the promoter of the company. He is supported by his three sons namely Mr. Anurag Gupta, Mr. Vishal Gupta and Mr. Vikas Gupta having experience of more than 15 years each in the electronic manufacturing industry as executive directors of the company.

Utilisation of issue proceeds
¨Expansion of plastic injection moulding facility at Greater Noida (Unit III) and Ahmednagar (Unit IV) – Rs 51 Cr
¨ Prepayment of term loan – Rs 24 Cr
¨ To meet long term working capital requirements – Rs 15 Cr

Click here to download complete report now!