ONGC Videsh IPO,OVL IPO

ONGC Videsh IPO , OVL IPO Subscription , Price , Date
ONGC may soon launch IPO for its subsidiary ONGC Videsh Ltd ( OVL ) .

Government is divesting in its jewel companies this year. After many successful IPOs , Government may announce this offering to raise funds for overseas Buy.
ONGC Videsh Ltd is the company engaged in Oil and Gas exploration and it has operations in many countries directly and also through JV.
Operations run through Africa , Asia , America , Russia.
The company has assets in Russia (Sakhalin-I), Syria (Al-Furat Project), Vietnam (Block 06.1), Colombia (Mansarover Energy Project), Sudan (Greater Nile Oil Project and Block 5A) and Venezuela (San Cristobal Project).
And many projects are in Exploration Phase.
IPO Subscription and other information will be posted here.

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Sahara Prime City IPO - The 1 Billion $ issue

Sahara group Real Estate Arm , Sahara Prime City Ltd is in the verge of filing Draft prospectus for a propsed IPO Offering. Company plans to raise Rs. 5000 crores for exansion plans using this IPO. This offer can be expected in the year end.
Real estate hasn’t seen any ipo in the past 1 year due to adverse market condition.
Ambey valley project is however not under this Sahara Prime City Ltd.
All other details about this Sahara Primecity IPO will be posted soon.


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Cox & Kings prepares again for IPO issue

With the primary market showing signs of revival, one of India’s oldest tour operators, Cox & Kings, has initiated the process for an initial public offering (IPO) and has filed the preliminary draft prospectus with market regulator Sebi. The travel company had earlier planned to go for an IPO last year but was forced to shelve its plans because of adverse market conditions.

The scenario has now improved with Indian companies having raised over Rs 9,000 crore so far this year. Cox & Kings expects to raise $100 million through the IPO.

If the IPO materialises, Cox & Kings will be the third well-known listed company in the travel space. Interestingly, unlike travel industry’s sibling—hotels—not too many travel services are listed.

The other publicly quoted travel firms include Thomas Cook and International Travel House. While Thomas Cook trades at Rs 53, International Travel House, owned by ITC, on Friday closed at Rs 97.65 on BSE.

Cox & Kings median sale of 18.49 million shares would comprise a fresh issue of 15.45 million shares and sale of 3.04 million shares by its current financial investors, Lehman Brothers, Deutsche Securities and Merrill Lynch. The company has also reserved two lakh equity shares for its employees.

The issue would constitute 29.4% of the fully diluted post-issue paid-up capital of the company, Cox & Kings said in a media statement. It added that it was considering a pre-IPO placement. India Infoline is the sole book running lead manager to the issue.
Source : Economic Times

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JSW Energy IPO likely in two months

Sajjan Jindal-led JSW Energy is looking to come out with its initial public offering in the next two months to raise about Rs 3,000 crore for partly funding its expansion plans.

"Provided we get the necessary regulatory approval, we may come out with an IPO in the next two months," JSW Group CFO Seshagiri Rao said in an interview.

The company had last week filed for the Draft Red Herring Prospectus (DRHP) with SEBI to hit the capital market. The market watchdog normally takes 30 days to give its nod for the initial public offer (IPO), he said, adding "subject to that JSW Energy may come out with the offering."

The company is targeting to install a capacity of 11,000 MW in the next five years which would entail an investment of about Rs 55,000 crore.

Currently, JSW Energy is setting up a 3,200 MW super critical thermal power plant entailing an investment of Rs 15,000 crore at Ratnagiri in Maharashtra.

The company had earlier withheld its plans to come out with an IPO citing weak market condition amid the global financial meltdown.

With improved market conditions, Adani Power and NHPC were the first two power firms to give shape to their IPO plans. While, Adani Power got listed today at Rs 105 on the Bombay Stock Exchange, a premium of five per cent over its issue price, state-run NHPC is expected to get listed soon.
Source : Economic Times

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Excel Infoways IPO gets fully subscribed on final day

The Initial Public Offer (IPO) of the business process outsourcing (BPO) firm Excel Infoways Ltd got fully subscribed on the final day of offer today, with most of the bids coming in from non-institutional investors.

The IPO of Excel Infoways received bids for over 68.66 lakh equity shares representing 1.21 times the shares offer, according to the data available with the National Stock Exchange (NSE).

Excel had come out with an IPO of 56.67 lakh shares. The price band for the issue has been fixed between Rs 80-Rs 85. The equity shares are proposed to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Calculated on the basis of upper price band, the company aims to raise funds up to Rs 48.16 crore. Excel is expanding operations with two new facilities in Mumbai with an aggregate seating capacity of 300 seats.

The cost for these projects is estimated to be Rs 47.28 crore (to be funded by Rs 27 crore of IPO proceeds and balance through cash generation from operations).

Excel is also planning to utilize Rs 30 crore of the issue proceeds for strategic investments and overseas acquisitions for which the targets are yet to be identified.

The issue, which opened on July 14 got a positive response from non-institutional investors, which includes corporate and individuals (other than retail institutional investors), as they fully subscribed to the shares reserved for them.

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Mahindra Holidays and Resorts IPO Allotment status

One can get Mahindra Holidays and Resorts IPO Allotment status Here (Mahindra Holidays and Resorts IPO Allotment status)

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SEBI resolves 2 more IPO scam cases.

Securities and Exchange Board of India (SEBI) has resolved two scam cases via consent order route after three years long investigation, reports Business Standard.

The scam involved 10,000 benami demat accounts with common addresses that cornered company shares set aside for small investors in initial public offerings (IPOs).

SEBI had passed an ex parte order in April 2006, directing HDFC Bank, a SEBI-registered depository participant (DP), not to open fresh demat accounts till further orders and the same was cancelled in November 2006.

SEBI settled the case, directing the HDFC Bank to pay Rs 100,000 towards settlement charges and it has also directed Jhaveri Securities, stockbroker and DP, to pay up Rs 100,000 towards settlement charges in another consent order. - MyIRIS

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Stock Update - Suzlon Energy.

I had recommended Suzlon Energy which is giving negative returns and had tumbled 13.8% yesterday.
The reasons behind this fall are -
Markets fell 6.6% i.e. 696 points.
SEBI on Monday ordered investigation of Suzlon IPO.
The stock rose 20% on Nov 3rd as the news came out that the company stake purchase of 22.48% in RePower was on track.
Over the past two months Suzlon energy has lost 73%.

Now I think this scrip is a good buy at a range of 48 - 52 for long term investors.

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Stock Idea - Financial Technology.

Scrip: - Financial Technology.
BSE Code: - 526881
CMP: - 684.10 (BSE)
Market Cap: - 3140.02 Cr
52 Week H/L : - 2855.00 - 426.00

Summary: - Financial Technology one of the favorite scrip of investors floated by Mr. Jignesh Shah.
Financial technology has many products working in the financial trading markets. It has products like ODIN, Inet.net, iWin, FXDirect, etc. These cover all stages of trading – pre trade, trade and post trade. These products cater to Exchanges, Brokers, AMCs,, Depositories, Custodians, Banks, etc.
Financial technologies has set up two commodity exchanges Multi Commodity Exchange (MCX) and Dubai Gold and Commodity Exchange (DGCX). Over the next few years the commodities market is expected to experience exponential growth and Financial Technologies should be a huge beneficiary.
And Also has Stake in Singapore Mercantile Exchange.

Analysis: -
I am recommending this scrip as MCX IPO is awaiting to enter the markets.
Value of MCX as per Fidelity's entry price:
(50/9*100)*45.5=Rs.25200 million= Rs 2500 crores(approx.)
Share of Financial Tech=64 p.c.
Value of Investment in MCX for Financial Tech=64 p.c. of 2500=1600 crores.

The total value of India’s agri produce is equal to US $ 85 billion. Assuming a multiple of 10 times to the commodities futures market the total size should be to the order of US $ 850 billion. It stands at less then US $b 2 billion today.

Financial: -
At a PE of 3.43 the stock looks attractive and cheep.
Paid a dividend of 200% this year on a FV of 2.

" This is a best scrip only for Long Term Investors"

Target could any where between 1100 - 12oo in a period of 12 months.
Chart source - MyIris.Com

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IPO Analysis Note - Nu Tek India Ltd.

Price Band: Rs 170 - Rs 192
Issue Size : Rs 765 million – Rs 864 million
Issue opens-closes : 29th July – 1st August 2008
Listing : BSE, NSE

Nu Tek India Ltd, is a Gurgoan based telecom infrastructure services provider that offers infrastructure roll-out solutions to wireless and wire line telecommunications networks. The company offers services to Telecom Equipment manufacturers, Telecom Operators as well as third party infrastructure leasing companies in installing and maintaining Telecom Network equipment and infrastructure and offers all outsourced services related to design, installation, construction, operation and maintenance of telecom networks. NTIL is also registered with Department of Telecommunication as Infrastructure Provider - Category I.

The company set up a subsidiary in Turkey which commenced its operations in Jan 2008 to carry on telecom infrastructure services and has recently entered into a contract with Ericsson AB, Dubai, to provide technical support services to their operations in the West Asia

Major clients of the company include national and international names such as Nokia, Ericsson, Motorola, ZTE Telecom India Private Limited, Tata Teleservices, Reliance Communication, Vodafone and Bharti Airtel to name a few.

The company has entered the capital markets to raise funds for capital expenditure, overseas acquisitions and augmenting its long-term working capital requirements and thus proposes to raise Rs 864 million at the upper price band of the issue, of which the offer for sale amounts to Rs 192 million i.e. over one-fifth of the total capital to be raised.

KEY POSITIVES

• With its experience track record of over 15 years in managing and executing various projects coupled with designing and service skills, NTIL is capable of offering end to end telecom solutions for Wireless networks (GSM & CDMA), Fixed line networks (Switching Equipments), Broadband (Voice & Data) and Transmission Networks. In addition, the company has successfully implemented new technology projects such as WiMax and underground network for Delhi Metro Rail. Thus with its vast expertise and experience relatively newer technologies, the company seems to be well positioned to capitalize on the fast growing opportunity offered by the telecom industry.
  
  
• The Present orders-in-hand of Rs 1366 million and letters of intent worth Rs 385 million take its total to order book Rs 1751 million. Resultantly, the current size of order-book translates into 1.84 times its revenues for FY08 offering significant visibility in terms of sales and profits of the company going forward.
  
  
• On the financial front, company registered a CAGR growth of 45% during the period FY05 to FY08. At the same time, the net profit of the company registered a growth of close to 56%. Operating margins improved from 17% in FY06 to 33% in FY08 and net profit margins improved from 11% in FY06 to close to 22% in FY08. Strong financial performance coupled with improving profitability and a comfortable order book position provides decent growth visibility for future.
  
  
• Though the company claims to have a Pan-India presence it derives major portion (upto 70% in FY08) of its revenues from the Northern India region. The company is therefore aggressively strengthening its presence in the eastern and southern regions and expanding into regions outside of India, such as, Turkey and Gulf to mitigate the risk of geographical concentration.
  
  
• The Indian telecom industry is faced with lower reach even as the overall tele density during the month on June 2008 reached 28.3%. Further, tele-density in the urban areas is over 50 percent and for rural areas it remains below 10%, representing a wide gap and opportunity for higher penetration. Growing tele-density coupled with a wide gap between the urban and rural areas would lead to significant investment into this sector which in turn could lead to higher demand for NTIL’s products and services.
  
  
• Further, with upcoming new technologies such as WIMAX, 3G and mobile number portability there is a need for upgradation of the networks by the telecom operators leading to higher investments and increased demand for experienced infrastructure companies like NTIL. Even though the argument is further supported by higher entry barriers in this space due to requirement of larger spectrum of service and project execution skills coupled with higher working capital management, bigger players are better placed to capitalize on this opportunity.
  

KEY CONCERNS

• Though the company has grown at a robust rate, the working capital position has deteriorated since FY07 due to a 300% increase in the debtors in FY08. Debtors as a percentage of Net sales increased from 18% in FY07 to 50% in FY08. Due to industry practice, a portion of the project value (5-10%), is usually withheld by the client as retention money and released after 12 months of completion of the project putting further pressure on bad debts and increased working capital requirement. Increased working capital requirements could result into an adverse impact on the margins of the company going forward.
  
  
• Negative cash flows from operating activities for four consecutive years starting FY05. Net cash flow from operating activities in FY08 stands close to 106 million due to substantial increase in projects under execution and debtors.
  
  
• The telecom Infrastructure Service market is highly competitive with a few organized players and smaller unorganized players. The company faces competition from well known established players having greater financial and technical resources and expertise which could enable them to provide better service at lower prices as the competition intensifies, thereby resulting into lower margins for the company.
  
  
• Significant client concentration risk as during FY08, top client (ZTE Telecom India Private Limited) contributed 18% of income from operations, with top 5 clients and top 10 clients contributing 58% and 82% respectively.
  
  
• The company has earmarked Rs 210 million towards setting up a new subsidiary in the overseas markets. The management of the company however lacks overseas experience thereby increasing the risk of execution. Further, successful scalability of the overseas business model remains to be tested.
  
  
• In case TRAI allows sharing of infrastructure by telecom operators, it could have an adverse impact on the number of telecom sites being installed across India which, in turn, could have an adverse impact on the company’s business revenues and profitability. However, as these shared sites have higher capital costs involved, it could lead to higher per unit of revenue for telecom infrastructure services providers thereby negating the impact.
  
  
• Fully Priced – At a historical P/E of 16 times FY08 earnings, the company has left little on the table for its investors. Listed peers like GTL currently trade at a PE of 16 times its trailing earnings.

Our Verdict - AVOID.

Though the negatives of the company clearly outweigh the positives, NTIL’s plans to capitalise on the exponential growth in the domestic telecom industry and explore new opportunities arising out of increasing telecom density, geographical expansion and robust order-book position cannot be overlooked. However, over 20% of the IPO comprises an Offer for Sale and thus not benefit the company to that extent.

Investors could skip this issue given the pricing but could consider an entry at lower levels post-listing.

www.indianmoneyplus.com for more of such stuff.

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