Blindly Avoid DEN Cable Networks Issue
Thursday, October 29, 2009
Den Networks is a Delhi based company was formed in 2007. The company is a leading cable television company with a pan-India presence. Within a short time span Den has reached out to about a crore households across 77 cities, mainly by buying out small cable TV operators. The company has acquired majority stake in 65 MSO’s (multi system operators) to expand its network across 9 states.
We recommend to BLINDLY AVOID the issue. Without any hesitation, skip this IPO as it is steeply priced.
Den IPO is very aggressively priced. The company is loss making from the last two years. We use the market cap to sales ratio as it is a measure used for start up companies. The market capitalization of DEN at the higher price band works out to Rs. 2700 cr and the company clocked in sales of Rs. 719.35 cr last year taking the ratio to 3.75.
WWIL which is the only listed entity in the comparable line of business has a market capitalization of Rs. 400 cr and sales last year were Rs. 308.26 cr, thus the ratio stands at 1.3.
Punish the SEBI Officials / Lead managers who have cleared this IPO and its pricing.
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Published by DalalStreet Business @ 11:14 AM IST.
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IndiaBulls Power - Basis Allotment + Listing
Tuesday, October 27, 2009
We have been given the Basis of Allotment of the Highly Hyped IndiaBulls Power IPO - Power Hai Tou Zindagi Hey :-)
As the Retail portion of the issue was subscribed by mere 1.09 times with recommendation from us and other leading brokerages to AVOID, as expected all retail Investors have been allotted in FULL.
Here is the CHART Showing the BASIS of ALLOTMENT of India Bulls Power.
Listing is expected
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Published by DalalStreet Business @ 12:06 PM IST.
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Satlaj Jal Vidut Nigam + 5% Discount to Retail Investors
Wednesday, October 21, 2009
The Government of India is selling its peoples wealth - PSU companies to Foreign Investors [upto 60% of the IPO] without even first offering the Pie to Indians on whose wealth these companies have been built. After critics and objections from us, the Government has now come out with a proposition to offer shares of all PSUs taking the IPO route at 5% discount to retail Individual investors. The idea is to get more Indians to invest in these Government Bluchips.
The eGOM have appoved the IPO of Satlaj Jal Vidut Nigam - a JV between Govt of India and Himachal State Government. This company had a profit of Rs 725 crore in FY09 and is once again clean energy company :-) The Valuation of this company is pegged at INR 20,000 cr and thus the IPO is likely to be of Rs 2,000 cr.
Other Follow on Public Offers - FPOs are likely in REC, NTPC and SAIL.
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Published by DalalStreet Business @ 10:06 AM IST.
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IndiaBulls Power - Review - AVOID - Power in Wrong Hands
Saturday, October 10, 2009
Before we review the prospects of IndiaBulls Power, we would like to know what is the basis on which SEBI clears these IPOs. Power projects are Long Gestation Projects and not Dot Com Businesses which can start making money immediately [They never made either ;-).IndiaBulls Power Ltd - IPL IPO Review and Recommendation:
IPL will have a combined installed capacity of 6,615MW in Maharashtra and Chhattisgarh post the completion of these projects with lot more projects in the evaluation stage, all of them expected to go on stream by 2013 / 2014.
IPL has been granted coal linkages by the Ministry of Coal for its Amravati Phase I Power Project and the Nashik Power Project. The company has also received letters of assurances for the supply of coal. IPL has entered into a long-term PPA with Tata Power Trading Company Ltd (TPTCL) for the sale of up to 1,000MW of power proposed to be generated at the Amravati Phase I Power Project.
IPO Details:
Retail Portion of 10.2 crore shares @ Rs 40 to Rs 45 / share
IndiaBulls Promoters have pumped in Money at Rs 10 just just less than 2 years ago and have allotted themselves 1:1 BONUS so effectively Rs 5 / share and now they want Rs 45 / Share from you. On what basis should we invest our hard earned money in this shell Company / project which has no cash flow?
Why should you AVOID IndiaBulls Power Ltd IPO:
The promoters have ABSOLUTELY NO experience in Power Projects and is not a speculative finance business like stock broking in which they are.
All its future earnings are highly sensitive to its ability to complete projects on time.
The estimated costs and funding requirements for projects, other than Amravati Phase I Power Project, have been computed on the basis of management estimates [Management has no Experience in Power projects] and has not been independently appraised by any organization or institution.
We have MORE and MORE Questions than answers and hence my only question is WHY SHOULD I INVEST MY Money in such business ? You can BUY the same stock later during market correction, like Reliance Power Ltd. Don't tell me we will not see a market correction until 2013 :-)
Sometimes INACTIVITY saves lot of money
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Published by DalalStreet Business @ 5:29 PM IST.
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Euro Multivision - Allotment Basis + Listing
Thursday, October 08, 2009
We are hereby attaching the Basis of Allotment of Euro Multivision realeased by the company to us just minutes ago. All retail applications bidding for 180 shares and above have been allotted on a firm basis. Check out the chart below.
Please feel FREE to Let your friends know about the allotment.
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Published by DalalStreet Business @ 9:41 AM IST.
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Pipavav Shipyard - Allotment + Listing
Wednesday, October 07, 2009
We have got the Basis of Allotment for Pipavav Shipyard Ltd. The issue was not a BIG Success and hence retail portion was OVERSUBSCRIBED by mere 2.7 times. Here is the complete chart.
Pipavav Shipyard Limited is listing its shares at NSE / BSE on Friday, October 09, 2009. Grey Market premium is around Rs 3.5 to Rs 4.
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Published by DalalStreet Business @ 9:33 AM IST.
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