NHPC IPO price band fixed at 30-36
Wednesday, July 29, 2009
National Hydroelectric Power Corporation (NHPC), which is set to tap the capital market with its initial public offering (IPO) next month, has fixed the price band for the issue at Rs 30-36. The issue will take the book building route to raise the funds.The IPO is set to open for subscription on August 7 and will close on August 11, 2009. The issue comprises 168 crore shares comprising 5% dilution of the govt's stake and a 10% fresh issuance. NHPC plans to mop up between Rs 5,040 crore and Rs 6,048 crore from the issue.
The NHPC IPO will be the first PSU issue after Rural Electrification Corporation that floated a Rs 1,639 crore issue in February last year.
Labels: NHPC-Billion-Dollar-IPO
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Published by DalalStreet Business @ 3:18 PM IST.
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Adani Power - Dirty Energy - Avoid
Thursday, July 23, 2009
Adani Power Ltd (APL) is a power project development company and plans to add 6,600MW power generation capacity by FY12 with total capital cost of Rs284bn.Adani Global, a wholly owned subsidiary of AEL, has entered into agreements with holders of long-term exploitation licences to exclusively mine coal in Bunyu Island, Indonesia.
All of Adani's Power plants will be COAL based which is globally considered as Dirty Energy. The Indian Government is mere spectator with its flawed energy policy by not encouraging renewable energy and dancing to the tunes of Dirty Energy producers. Worldwide, dirty energy plants are forced to shutdown and Wind Power Mills are established and Suzlon is cashing on the same.
Details of the Issue:
Issue opens : July 28, 2009
Issue closes : July 31, 2009
Issue size : 30.16 crore equity shares
Face value : Rs10 each
Price band : Rs90-10
Retail portion : Not less than 8.8 crore shares
Valuation:
The NAV works out to Rs84 per share. Add to this the cash of Rs12.5-14 per share raised from the public issue, the fair value per share is close to the higher end of the offer price band. Thus, the upside for investors would largely accrue from the additional capacity of 3,300MW, which is still on a planning stage.
Compared with its peers such as National Thermal Power Corporation (NTPC), Tata Power and Reliance Power, the issue is priced at 3.9-4.1x its book value, which is at a premium to its peers' valuations.
Recommendation:
If not today, tomorrow, the company will be forced to BUY Carbon credits for the extremely heavy environment pollution it will cause thus directly hitting on its bottom line.
Adani Power's indicative IPO price does not offer the sufficient discount for the risks that have to be taken before projected profits can materialize.
However, in reality, the market Euphoria may lead the stock to list at small premium [You know better how it works]. We are personally not subscribing to the issue and recommend value investors to stay away. Speculators can have their way :-)
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Published by DalalStreet Business @ 8:27 PM IST.
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Insurance IPOs hit in near time
Friday, July 10, 2009
Awaiting response from the Parliament to go public, life insurance companies are seemingly looking to put their plans of listing on the stock exchanges on the backburner. Notably, Parliament's nod for the Insurance Bill is also expected to enhance the foreign investment limit. Insurers feel that going for an IPO would require examining actual situation after the Parliament clears the Bill as ground realities may change. However, a debate is going on between the government and the Insurance Regulatory and Development Authority (Irda) over the issue of mandate of listing of insurers after 10 years.
On one hand, Irda wants insurance companies to go public only after completing ten years of operations, insurance firms like Reliance Life have already applied to the government for initial public offering (IPO), on the the other hand, SBI Life is also looking for floating an IPO. It is expected to come up with the IPO once the government passes the Bill and HDFC Standard Life is mulling to go for listing in the next year only.
The valuation estimates of life insurance companies peg ICICI Prudential Life insurance at $ 3.67 billion, followed by SBI Life at $ 2.62 billion, Bajaj Allianz at $ 2.3 billion and HDFC Standard Life at $ 1.62 billion. Due to lack of disclosure norms, insurance companies do not disclose their embedded value of the assets. However, Irda is contemplating to make it mandatory for the insurance companies to disclose their embedded value.
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Published by DalalStreet Business @ 10:12 AM IST.
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Probable PSU Disinvestment Companies
Here is a list of Government owned companies that are likely candidates for Disinvestment. The Government holding in most companies is over 90% and if the 75% rule is brought into force Government will divest in most companies in the next 2 years upto 75% and then later reduce it to 51%. The following chart shows the details.
So open as many DEMAT accounts you can and Apply and HOLD these shares for Long Term Bounty.
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Published by DalalStreet Business @ 9:44 AM IST.
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Mahindra Holidays - Basis of Allotment
Wednesday, July 08, 2009
We have received the final Basis of Allotment for Mahindra Holidays and Resorts IPO just a while ago from the Merchant Bankers which was finalized in consultation with SEBI.
All applications for Rs 100,000 [1 Lakh] have received firm allotment of 102 shares. The following data sheet shows the basis of allotment for all categories of retail investors.
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Published by DalalStreet Business @ 1:31 PM IST.
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