secondary issue of union bank of india gonna hit market soon...
but right now i think the best strategy is to invest in MFs or remain in cash..
cheers
Sourabh
Gaurav bhai,
Where are you? not coming on the forum these days!!
btw, there are some IPO's of SOUTHERN ONLINE BIO TECHNOLOGIES... Now, i don't know anything about applying in IPO's... except that some people have made huge profits from it.
Can you suggest how to research before I apply??
hey dood ...
whats up ? good to see some activity happening on this thread ...where is our very own relaxingh
Hey , u seem to know where's the honey in the bee-hive
...quite a lot of people interested in IPOs due to the listing gains and the quicker process of allotement these days ...notwithstanding me offcourse Well , for an amateur like us ...its always the INTERNET ..as the guiding lite ...u can surf various sites like moneycontrol , capitalmarket , business line , nse site , indiabulls etc etc for an analysis on IPOs ...
going by the general trend ..most IPOs seem to give good returns ..if not on listing then holding them for a little longer ...
just pray for allotment as the subscription levels tend to spoil the party
neways ...
happy investing
ipo s in the last few months had blockbuster openings,southern bio as above will also have something similar if the current momentum sustains...
Else you'll park your money in a near penny stock...totally helpless and in a company that doesnt have too much fundamentals to talk about...
to be true...i'm parking money..:whatthat:
Hey Ankur,
The company is primarily an ISP etc service provider in South. They are already listed on hyd. SE and b'lore SE. Doing OKish over there.
For IPO, their grounds are bio diseil. The biggest pro they have is that they dont hav any competetor over here. If they are successful in hittin the oil (bio oil), then the scrip is gonna make real big.
investing in this ipo depends on ur risk appetite.
i am not investing coz saving up for Suzlon. its wind energy is strong enough to blow the ipo markets...
Which brings up another interesting investment option... SUZLON... How are prospects for this company...
Aragorn,
Please do share your valuable research outcome...
Which brings up another interesting investment option... SUZLON... How are prospects for this company...
Aragorn,
Please do share your valuable research outcome...
Business of the Company
The company is a leading manufacturer of Wind Turbine Generator (WTG) and is the sixth largest company worldwide as a WT manufacturer for the year ended December 2004 based on installed capacity. The company along with its associate companies is an integrated solution provider to wind energy in the Indian market.
The company is also involved in wind resource mapping, identification of suitable sites, technical planning for wind power projects and after sale O&M; services for the WTGs that they provide. The company has got a market share of 44.5% for the fiscal ended March 2005 with India being the third largest market for wind energy in terms of installed capacity.
Financials
The turnover of the company has grown from Rs.5333 million to Rs.19659 million from March 31 2002 to 31 March 2005. The EPS for the year ended 2005 was Rs. 15 up from Rs.5.7 the previous year.
Indian Market for Electricity
India has been perennially short of electricity with the demand exceeding supply by 7.3% in terms of total requirement and 11.7% for peak demand. India with 355 kWh per capita electricity consumption is one of the lowest with china being 827 kWh, Brazil 1878 kWh and US 12331 kWh (2000).
The market for wind power is expanding and India is the third largest country in the world with an installed capacity of 875 MW in 2004. This is expected to grow to 8300 MW in 2009 representing a CAGR of 22.6%.
The growth drivers for the company are environmental awareness and a need to generate green power, repowering which is replacement of old WTGs with new ones as the WTGs installed in the European markets are ageing with relatively low capacity and outdated technology, and offshore projects which is a new demand driver and several projects have commenced with Denmark accounting for a majority of them.
Objects if the Issue
The purpose of the issue is setting up and expansion of manufacturing facilities in for components at Daman, Bhuj, Hyderabad and Dhule, for tooling at Vadodara and a new storage facility at Daman as well as expansion of existing facilities to increase the storage capacity at Pondicherry.
Further the IPO looks to infuse capital in its subsidiaries for setting up manufacturing facilities in India, United States and China, marketing in the Denmark subsidiary and research and development in the subsidiaries in Germany and Netherlands.
Conclusion
The company is a leader in its own technology in the growing energy sector and to that extent a presence in portfolio is desirable. The price has been determined at Rs.425-510. The EPS is Rs.15 for the last fiscal and so the P/E multiple comes out to be 28.3 times at the lower end and 34 times at the higer end. It seems unlikely that even in this scenario where the company is a leader in its field it can manage a growth so fast to justify the high multiple that it demands. The IPO is high priced and considering the fact that the markets are also at dangerously high levels one is well advised to leave the IPO alone
Suzlon Energy is leveraging on the current euphoria for players involved in the power capex cycle. The issue size is between Rs 1,250 crore and Rs 1,500 crore, based on a price band of Rs 425-Rs 510. Based on Suzlons consolidated earnings per share for FY05, the issue is priced at a valuation of 30 to 36 times. Of course, other power equipment players too enjoy rich valuations. For instance, ABB gets a discounting of about 47 times trailing earnings till March 2005 and in case of Siemens India it is 41 times. Its important to note here that when private equity investors Citicorp and ChrysCapital had picked up a stake in the company last year (in April and August respectively), the acquisition was at a valuation of about 4-4.5 times 12-month earnings till March 2004. In share price terms, Citicorp and ChrysCapitals acquisition price worked out to Rs 24 on an average, and based on the lower end of the price band of Rs 425, Suzlons valuation has gone up about 1600 per cent in the past 12-18 months. Earnings, in fact, have risen at a much lower rate of 150 per cent in the year ended March 2005. Merchant bankers to the issue point out that Citicorp and ChrysCapital invested in Suzlon while the company was still in its investment phase and were partly responsible for the growth that has occurred since last fiscal. Moreover, although they invested only last year, they had committed capital even earlier. On the other hand, two other foreign investors bought Suzlon shares at an average Rs 385.6 a share this year. While that gives some comfort, the fact that the companys valuations have increased sharply in the past 12 to 18 months is a cause for concern. Assuming that the high growth in the past two years continues, the stock would look reasonably priced on forward PE multiple basis. Suzlon is one of the largest players in the domestic wind turbine generators segment, with a 42 per cent market share. A key growth impetus for Suzlon has been rising cost of inputs such as coal in conventional power generating equipment and the resulting need for user industries to evaluate alternative energy sources. Riding piggyback on this, the companys revenues grew 126 per cent and profit before tax and exceptional items grew 227 per cent to Rs 397.3 crore in FY05. Profit growth has exceeded income growth thanks to efficiencies realised in the southern part of the country from the setting up of a factory in Pondicherry. Operating profit margin grew 723 basis points to 24.14 per cent in the previous financial year. An energy consultant BTM Consult ApS has estimated that installed wind power capacity in the country is set to grow at a compound annual growth rate of 23 per cent from CY05 levels to 8300 mw by CY09. The company plans to use part of the resources (about 50-60 per cent) raised via its float for expanding its manufacturing facilities, capitalisation of subsidiaries, redemption of preference shares allotted to private equity investors and setting up a corporate learning centre. A key concern, going forward, remains the government policy on fiscal and tax benefits to promote alternate energy sources. For instance, in FY03, the companys net sales had halved on a y-o-y basis to Rs 269.7 crore, one of the main reasons being the uncertainty relating to announcements of new depreciation rates. The companys profit before tax and exceptional items had fallen 81.7 per cent to Rs 22.7 crore. Senior company management highlighted that alternative energy sources are now cost-effective thanks to advances in technology and the importance of fiscal and tax benefits has been declining
intra day fall of 220 points and then sensex closing just 10 points down 
i must say something is fishy !!
as for small investor one can only suggest 'stay out' !!
Cheers
SOurabh
watch out ITC.......great run up....
n abt the markets on a whole...i guess the news of Ketan Parekh,BE CAUTIOUS,THERE MAY B ANY SCAM n all in all newspapers n news channels has created a panic for short term investors..
also the fall in asian markets has added to the south bound markets.....
one thing is for sure....if fundamentals r strong for a company...no news can make a kill on it...
happy investing...
my delivery picks would be.....YES BANK,IDFC,PANTALOON retail,PRAJ inds,HT media(current levels),INDIABULLS(190-195)
Hey guys,
Indices are going steepily down!! Any spl advices for now??
Which brings up another interesting investment option... SUZLON... How are prospects for this company...
Aragorn,
Please do share your valuable research outcome...
The issue has been priced on the higher range. Splitting the share and offering for half the price would have had done to the investor enthu.
Look at what has come of HT when it tried to put up the share at the higher end. The cutoff price was 530, on the day of listing, investors booked premium, and then exited. The stock is at 410 as of today.
For Suzlon, nothing this bear-ish would happen, still, if you can book profit on the day of listing, do it. After listing the stock can go anywhere, but not less than 10% of listing price.
I am putting in money in partnership - higher probablity of allotment.
DISCLAIMER : views are personal.
my delivery picks would be.....YES BANK,IDFC,PANTALOON retail,PRAJ inds,HT media(current levels),INDIABULLS(190-195)
wow.....yes bank up 4-5 bucks.....idfc 4-5 bucks....pantaloon....1710 to 1890......praj in 5 % circuit.....ht media 15rs up......indiabulls....12rs up....
keep on sharing and keeep on investing....
sensex was on rooooooooooooool 2day...
hey gurus hope u dun mind me askin tis questio wich mite sound stupid to u...
wht are the diffrences between fiis n fdi.wht are the various directives given by the sebi n how changing these at this time n according to the need of the market makes market stable???
I think u r quire right....MF's are much better option now..........I've invested in Fidelity, HDFC tax , Hdfc Long term advantage and SBI Multicap...........let me know abt these
secondary issue of union bank of india gonna hit market soon...
but right now i think the best strategy is to invest in MFs or remain in cash..
cheers
Sourabh
hey guys
i wud like to know what exactly is fringe benefit tax(fbt) ???
sorry got the answer but please answer the other question that i had asked about fiis n fdis .
HI EVERYONE,
thanks Snan,
i recently understood this funda of Bonus and i guess Snan puts it in the best ansd thse simplest manner , i agree wid him completely.......even on the front that theoretically and actaually things differ not just by a whimper but A lot.........
Cheers!!!
Ankur
hey gurus hope u dun mind me askin tis questio wich mite sound stupid to u...
wht are the diffrences between fiis n fdi.wht are the various directives given by the sebi n how changing these at this time n according to the need of the market makes market stable???
hey ppl still waiting for ur replies.havent seen much traffic of post on this thread.where have u guys been???
sensex touches 8600 points 
.When is the correction going to take place?
what'smyname Sayssensex touches 8600 points
Err...If I'm not mistaken, it touched 8700 yest...I guess you are seeing an old newspaper
Cheers
Err...If I'm not mistaken, it touched 8700 yest...I guess you are seeing an old newspaper
Cheers
oops my mistake but anyway u never know about the stockmarkets it might have fallen to 8600
or might have rised to 9000:wow:
what'smyname Sayssensex touches 8600 points
well i dunt exactly know about the height of points which the sensex has scaled maybe its around 8700 rht now but i wanted to ask you that do you people really feel that there is going to be a correction.if the answer is yes then which stocks will be affected by them.in my personal opinion i dont think there will be any correction or even if there will be it will be marginal.wht say you????
regards
sameer