OIL - Allotment + Application Status
Tuesday, September 22, 2009
We have just a while ago received a Fax from OIL India headquarters which has finalized the basis of Allotment for its recently concluded IPO for which we had a SUBSCRIBE recommendation.
Applicants applying for 6 shares have been allotted in the ratio of 25:28. All applicants who applied for more than 6 shares have been allotted on a firm basis as shown in the chart below.
The Grey market Premium has jumped to Rs 40-50 while Kostak Applications were sold in the range of Rs 30 to Rs 35. [We really don't care about this price ;-)] If you are a Long Term Investor [Like us] we will HOLD the stock instead of sellign on LISTING.OIL India Status of your application can be checked here.
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Published by DalalStreet Business @ 5:24 PM IST.
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Thinksoft Global Services Review
Saturday, September 19, 2009
Thinksoft Global Services Ltd, established in the year 1998, is engaged in the business of financial and insurance software Testing and Documentation.
Currently, 63% of TGSL's revenues come from onsite activities where margins are less compared with the same work being outsourced. Going forward, the company plans to actively focus on offshore work and is targeting an onsite to offsite mix of 55:45. With demand of more standardized products for SME, the Company has developed specialized service offerings to meet their needs.
Company has a success rate of 90% in getting business through the bidding process and its service delivery has achieved recognition from Deloitte Tech Fast 50 India and Deloitte Tech Fast 500 Asia Pacific in 2006 and 07.
Concerns:
Top 10 clients contribute 93% to the revenues and management is focusing to lower the business concentration.
TGSL has reported sales of Rs921mn with EBITDA margins of 15.5%, and exports contributed over 97% to its revenues. On the post issue equity, TGSL's FY09 EPS comes at Rs14.41; this translates into a FY09 P/E of 9x at the higher band of issue price of Rs130. Thinksoft has been posting impressive return ratios over the past few years (RoE of ~30%) and has got an experienced management to run the company but the issue is seen as an exit opportunity for an existing investor.
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Published by DalalStreet Business @ 12:14 PM IST.
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Jindal Cotex - Allotment Status
Monday, September 14, 2009
We have just received the final confirmation about Jindal Cotex Ltd IPO Basis of Allotment. Retail investors who applied for 180 or more shares have been allotted 90 shares on firm basis.
Retail applications for 90 shares have been allotted 90 shares in the ratio of 46:93. Here is the complete Basis of Allotment Chart of Jindal Cotex Ltd IPO Shares.
We do not have the GREY Market rates. The status of individual retail application of Jindal Cotex Ltd for credit of shares to DEMAT account can be checked here.
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Published by DalalStreet Business @ 12:06 PM IST.
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Pipavav Shipyard - Review - AVOID - Shady Gandhi Promoters
Pipavav Shipyard Ltd - PSL is setting up the country's largest state-of-the-art private sector shipyard in Gujarat for construction and repairs of a range of vessels. The total amount to be invested in the yard stands at Rs25bn, of which Rs19.8bn has already been invested.
PSL is jointly promoted by Nikhil / Bhavesh Gandhi and Punj Lloyd Group.
Current IPO Details:
Face Value - Rs 10
Price Band - Rs 55 to Rs 60
Retail - 25,455,068 Equity Shares available for allocation
Reasons to Avoid Investing in Pipavav Shiyard IPO:
The Gandhi promoters of Pipavav are facing are criminal charges and manipulation of stock prices charges.
The promoters of PSL have vast experience in development of infrastructure projects. However, they have not ventured into anything connected to shipbuilding in the past.
PSL's reported order book currently stands at Rs44.5bn. This includes orders
for 22 Panamax vessels from foreign companies and 12 OSVs from ONGC. However, as per our understanding from the company's RHP, a large percentage of these orders are under renegotiation or arbitration.
Poor Financial Track Record - The company is expected to report an EPS of Rs 0.20 for FY10 and Rs 4.5 for FY11 and FY12.
As compared to ABG and Bharati Shipyards, PSL looks expensive on almost all parameters such as P/E, P/BV and EV/EBITDA, etc. Even on a replacement cost basis.
Gandhis have had a passion in the past to takeover unknown finance companies JPT Securities and later merge their projects using another company [Awaita Properties Private Limited] and thus seek backdoor listing. Read Draft RHP Page 239. Such list of companies go on and on.
Looks like Gandhi's are alumni of Ambani school of Manipulation and Malpractices :-)
Every Broking House is raising questions on Stock Price Rigging by Shady promoters Mr. Gandhis.
We strongly recommend VALUE investors to stay away from Pipavav Shipyard IPO.
Labels: Bhavesh-Nikhil-Gandhi, Horizon-Infrastructure, JPT Securities, SKIL
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Published by DalalStreet Business @ 11:34 AM IST.
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Divestment agenda - NTPC next on radar
Thursday, September 10, 2009
Keeping its agenda of disinvestment rolling on, the government is in full speed to finalise stake sale proposals. After power major NHPC and petroleum PSU OIL, the government is now getting ready the plans to dilute 5% stake in the power PSU NTPC. Current holding of the government in the company stands at 89.5% and its plans to bring the same down to 84.5%.
The power ministry is understood to have already completed the formalities relating to due diligence procedures and the proposal is expected to be sent to the Cabinet soon. After the approval from the cabinet committee on economic affairs (CCEA), the company would ready a follow-on public offer with the market regulator Securities and Exchange Board of India.
The sale will bring revenue of close to Rs 7,500 crore to the government if the offer is priced at current market price of the company’s share. While some quarters in the government have expressed apprehensions that power IPOs have already flooded the markets and the issue may face some challenge on appetite front, the company believes that given its low float presently, there would be no problem in attracting investors.
Even if the government does not take any other disinvestment in the current fiscal, the three consisting of OIL, NHPC and NTPC would give it proceeds of close to Rs 15,000 crore, which though lower than Rs 25,000 crore mentioned in the Economic Survey for 2008-09, is much higher than meagre figure of nearly Rs 1,000 crore given by the finance ministry in the Union Budget for current fiscal.
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Published by DalalStreet Business @ 1:18 PM IST.
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IPO Discount to Retail Investors
Monday, September 07, 2009
I am not sure of the Greedy Government offering anything on the table to IPO investors. However, an article in the Economic Times dated Sept-02 by Nishanth Vasudevan speculates that Government is planning to offer discount to Retail Individual Bidders. Here is what he has to say,
Investment bankers feel that the government may bring in differential pricing for retail investors in its forthcoming issues of its companies to soothe bruised sentiments. In some of its early issues, the government had priced its issues for retail investors at 5-10 % discount to the issue price.
Does the Government has the will to do it ?
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Published by DalalStreet Business @ 9:04 PM IST.
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