OIL India - Oversubscription + Listing Estimates
Friday, August 28, 2009
Since we are the pioneers in giving good recommendations for IPOs backed by thorough Research, here is how OIL India IPO subscription will look like.
Retailers have an appetite of ~ 6500 cr for IPO market. OIl India Retail portion is Rs 750 cr at the upper band. So OIL India's Retail Portion of the IPO is likely to subscribe by 8 to 10 times. All Applications of Rs 94500 bidding for 90 shares are likely to be allotted 10 shares.
Our sources in the Ministry and company have said that OIL India will list on the Indian Stock Exchanges on September 29th.
We recommend a SUBSCRIBE to OIL India IPO and we do not believe in stupid Grey market Premium or Discount, OIL is a fundamentally sound company. Go for it.
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Published by DalalStreet Business @ 12:34 PM IST.
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OIL - Review + Recommendation - Subscribe
Oil India Limited engages in the exploration, production, and transportation of crude oil and natural gas onshore in India and internationally. It is India's second-biggest state-run oil producer after ONGC.
Business Profile:
The company involves in the exploration of crude oil and natural gas in Gabon, Iran, Libya, and Nigeria, as well as exploration blocks in Yemen as part of a consortium. In addition, it offers pipeline construction and related services to third parties, including pipeline construction, pipeline cathodic protection services, and other specialized pipeline services, such as hot tapping and line tracking.
Government Disinvestment:
Post-IPO and disinvestment, the government's stake in the company will decrease from 98.13 per cent to 78.5 per cent. The government has fixed the price band for the hyped initial public offer (IPO) of Oil India at Rs 950-1,050 a share. CRISIL has assigned 4 of 5 Star Rating for OIL India.
Reasons to Invest:
OIL, believes its earnings per share (EPS) and book value are better than ONGC. OIL produces to 10 per cent of the total crude oil produced in the country [ONGC 76%]. Company has the corporate strategy to dilute exploration and production portfolio as well to reduce the geological risks.
OIL India Offer Details:
Bidding Opens 07-09-09
Bidding Closes 10-09-09
Minimum Bid Size - 6 Equity Shares of Cace Value RS 10
Retail Size - not less than 72,13,631 shares [~INR 750 cr]
Fully Diluted Equity after IPO - 240.5 cr
Last Year EPS - Rs 104
NAV Per Share - Rs 438 [pre- equity dilution]
Peer Group Companies - ONGC, Cairn India, Hindustan Oil Exploration.
Financial Reasons to Subscribe to the Issue:
OIL India has recorded a CAGR in PAT of 15% over the past 5 years [Outstanding record in our view]. For Quarter ending June-2009, OIL India has recorded a PAT of Rs 739.6 cr, annualising the same it will yield to Rs 2956 cr PAT on an expanded Equity after IPO of Rs 240 cr thus leading to an EPS of ~ Rs 120 for FY 2010.
OIL India should not find any difficulty in trading at a P/E of 11-12 on conservative basis thus we setting a Target price of Rs 1400 for March-2010.
Additionally, if dividend is maintained at 305%, you will stand to get an yield of 3% on you investment, same as your Savings Bank A/C.
We Recommend Investors to Subscribe to the OIL India IPO Public Offering
This analysis is based on OIL India's filing of Draft Red Herring Prospectus with the SEBI.
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Published by DalalStreet Business @ 11:18 AM IST.
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NHPC - Allotment + Application Status
Tuesday, August 25, 2009
In a fax message just received from our analyst in Mumbai, NHPC has finalized the allotment for retail individual Indian investors.
All applications for 2625 shares have been allotted 713 on a firm basis. Anybody bidding for more than 700 shares have secured firm allotment in the MiniRatna. Here is the complete basis of allotment chart the to be published firs anywhere in Global media.
We had a subscribe recommendation to the issue. Do not sell in grey Market or on Listing. Hold the stock for long term if you have been allotted.
You can check the status of your NHPC IPO Application here.
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Published by DalalStreet Business @ 3:24 PM IST.
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Oil India price band Rs 950- Rs1,050
The government has fixed the price band for the much hyped initial public offer (IPO) of Oil India at Rs 950-1,050 a share. The price band was fixed by a Group of Ministers headed by Finance Minister Pranab Mukherjee.
The IPO of the Oil India will be the second state-run firm to hit the market this year after NHPC and likely to raise Rs 4,507- Rs 4,982 crore from the issue of which Government would earn Rs 1,995-Rs 2,205 crore and the company would get Rs 2,512 to Rs 2,777 crore respectively.
The IPO of Oil India will open for subscription on September 7, 2009 and will close on September 11, 2009.
We will post a review of the same on this page in the next couple of days reviewing the fundamentals of the company and not going by the Grey Market Premium.
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Published by DalalStreet Business @ 9:05 AM IST.
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BSE introduces IPO index
Monday, August 24, 2009
The Bombay Stock Exchange (BSE) has launched the new index series - BSE IPO index on August 24, 2009.
The intention behind the launch of index is to track the current primary market conditions in the Indian capital market and measure the growth in investor's wealth within a period of two years after listing of a company subsequent to successful completion of initial public offering (IPO).
Method of calculation of the index will be based on Free-float market capitalization, while the number of scrips will be variable.
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Published by DalalStreet Business @ 10:52 AM IST.
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Oil India gets 4/5 Rating
Thursday, August 13, 2009
CRISIL has assigned "4/5" (four on five) rating to the proposed initial public offer (IPO) of Oil India Ltd. OIL is a Mini Ratna public sector undertaking. This grade indicates that the fundamentals of the IPO are above average relative to the other listed equity securities in India. However, this grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals. The grade is not a recommendation to buy / sell or hold the graded instrument, or a comment on the graded instrument's future market price or its suitability for a particular investor.
As of March 2009, the company had cash and cash equivalent of Rs 61 billion or Rs 283.6 per share.
In 2008-09, the company reported a net profit of Rs 21.6 billion on a turnover of Rs 72 billion. It posted an EPS of Rs 101 during the same period, while its book value per share stood at Rs 436. OIL's return on capital employed (RoCE) and return on equity (RoE) for the year stood at 35.0 per cent and 25.0 per cent, respectively.
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Published by DalalStreet Business @ 11:26 AM IST.
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Retailers Subscribe NHPC In Big Way - Pool 6800 Cr
Small Indian Investors also known as retailers have come out in a big way and embraced the Clean and Green Energy IPO of NHPC Ltd. NHPC was asking for Rs 6100 cr and Retail Indian investors by themselves could have subscribed to the issue in FULL as they have bid for a whopping Rs 6835 cr. Compare this to mere Rs 2608 cr bids for Adani Power by Indian Retailers. Well Indian Retail investors know the background of Adani Group, do we need to say more :-)
Overall the NHPC IPO was subscribed whopping 23 times. That means when the Government wants to raise Rs 6000 cr, there is a demand of over Rs 138,000 Cr :-)
Do not SELL the stock on Listing. Hold for Long Term as ad vised while recommending a subscribe to the issue.
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Published by DalalStreet Business @ 8:15 AM IST.
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Adani Power - Allotment + Status of Application
Tuesday, August 11, 2009
The management of Adani Power has released the Basis of Allotment just minutes ago and our reporters are in receipt of a copy. All applications above 195 shares have been given firm allotment :-)Applications for 975 shares have received 368 shares. The chart is as below
You can check the status of your IPO application for Adani Power here.
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Published by DalalStreet Business @ 8:22 PM IST.
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NHPC - Subscribe for Long Term
Friday, August 07, 2009
NHPC is India's largest hydro power company. NHPC has experience of developing and executing hydroelectric projects. The company has managed the development and implementation of 13 hydroelectric projects, including two through its subsidiary, NHDC. NHPC has 5,175MW of existing generation capacity and is likely to almost double this over the next 4-5 years. This is totally CLEAN and Green Energy which will help the company earn carbon credits some time later. In FY2009, the company derived Rs3,436.22 crore or 84.81% of its restated consolidated total income from the sale of energy to the state electricity boards (SEBs) and their successor entities, pursuant to long-term PPAs.
In FY2009, the company generated a total of 16,582.72 million units (MUs) of electricity and its cumulative capacity index was 93.61%, which is higher than
the cumulative capacity index levels required under the Central Electricity Regulatory Commission (CERC) regulations. NHPC is par-excellencewith any other company in the world in executing Hydro Power projects.
Current IPO:
Mix of Offer for sale by Government of India and Additional Capital raising by the company.
Retail portion : 49,06,31,900 equity shares at Rs 36 [Cut-off] ~ Rs 1800 cr for Retail Indian Individual Bidders.
Valuations:
The company has been profit making for over 8 years now. [Thats all the records we have]. NHPC reported an EPS of Rs 1.0 for March-09.
At 1.9x FY10 P/B for 6-7% RoE and 30x FY10CL EPS (upper band) for its EPS growth (9% cagr over FY09-14) we believe the valuations are demanding; at Rs36/share
Recommendation:
If you had subscribed to Powergrid Corporation - PGCIL and still HOLDING you will make good money in Long Term. PGCIL was offered at Rs 52 and your worth has already doubled with stock now quoting at Rs 110 levels. In the next 3 years as PGCIL's earnings rise, it will pay in excess of 50% dividend which yields 10% RoI yearly. Stock appreciation is additional return :-)
We feel NHPC offers long term value to the investors and we recommend SUBSCRIBING to the IPO. Retail portion of the issue will OVERSUBSCRIBE by 2 or 3 times. personally subscribing to the issue.
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Published by DalalStreet Business @ 10:08 AM IST.
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