IPO

HDFC Asset Management Company Limited IPO (HDFC AMC IPO) Detail

Posted on by Hiren Kamani

hdfc amc

Incorporated in 1999, Mumbai based HDFC Asset Management Company (HDFC AMC) Limited is well-known fund house engaged in providing savings and investment products. It is a joint venture between Housing Development Finance Corporation Limited (HDFC) and Standard Life Investments Limited (SLI). SLI is part of Standard Life Aberdeen plc., one of the world’s largest investment company.

According to CRISIL, as of December 31, 2017, HDFC AMC has been the most profitable AMC of the country in terms of net profits since Fiscal 2013 with a total AUM (Assets Under Management) of INR 2,932.54 billion. Its profits has grown every year since 2002.

It has been the largest AMC in equity-oriented AUM since the last quarter of Fiscal 2011 and has consistently been among the top two asset management companies in India in terms of total average AUM since the month of August 2008..

HDFC AMC offers a wide range of savings and investment products across asset classes. As of December 31, 2017, it offered 127 schemes categorized into-

  • 28 equity-oriented schemes
  • 91 debt schemes
  • 3 liquid schemes
  • 5 other schemes (including exchange-traded schemes and funds of fund schemes).

The company also provides portfolio management and segregated account services to HNIs, family offices, trusts, domestic corporate and provident funds etc. As of December 31, 2017, it managed a total AUM of ₹75.78 billion as part of its portfolio management and segregated account services’ business.

Strengths-

  1. Brand reputation of HDFC and SLI helps in earning the trust of customers.
    2. Consistent investment performance over the years has helped it established itself as one of the leading AMC in the country
    3. Diversified product mix with a multi-channel distribution network helps it expand its reach.
    4. Strong profitable growth, over the years, provides it with resources to fund future growth.

Issue Detail:

»»  Issue Open: Jul 25, 2018 – Jul 27, 2018
»»  Issue Type: Book Built Issue IPO
»»  Issue Size: 25,457,555 Equity Shares of Rs 5 aggregating up to Rs 2,800.33 Cr
›  Offer for Sale of 25,457,555 Equity Shares of Rs 5 aggregating up to Rs [.] Cr
»»  Face Value: Rs 5 Per Equity Share
»»  Issue Price: Rs 1095 – Rs 1100 Per Equity Share
»»  Market Lot: 13 Shares
»»  Minimum Order Quantity: 13 Shares
»»  Listing At: BSE, NSE

 

Performance Front

HDFC AMC has an established track record of delivering robust financial performance. Its total revenue increased from Rs. 903.11 cr. in FY14 to Rs. 1867.25 cr. in FY18 with a CAGR of 19.91%, and net profits has grown from Rs. 357.77 cr. to Rs. 721.62 cr. for the same period at a CAGR of 19.17%. Its Dividend Payout Ratio increased from 41% in Fiscal 2014 to 56% in Fiscal 2018 and has paid a dividend of Rs. 336.89 cr. for FY18 compared to Rs. 126.20 cr. for FY14. As on 31.03.18 its net worth was Rs. 2159.97 cr. Its return on average net worth exceeded 40% every year since Fiscal 2014 and was 40.28% for Fiscal 2018. As on 31.03.18, its equity capital of Rs. 105.28 cr. is supported by free reserves of Rs. 2054+ crore. Being secondary offer, its post issue paid up equity capital remains same at Rs. 105.99 cr. Issue price at the upper band is at a P/E of around 32. For last three fiscals HDFC AMC has posted an average EPS of Rs. 30.42 and average RoNW of 36.51%. As per offer documents, it has shown Reliance Nippon Life AMC as its listed peers that is currently trading at a P/E of around 26 (as on 18.07.18). HDFC AMC is way ahead of its listed peers on many counts except other income. Thus although this issue appears fully priced, HDFC groups fancy among investors across the board, brand image and rewards to stakeholders are at center stage. MF industry set for a big boom ahead and this second largest player set for bright prospects going forward.

Conclusion

One Must apply and hold this gem for  long term as far as listing gain also.

RITES Limited IPO (RITES Limited IPO) Detail

Posted on by Hiren Kamani

rites-logo

RITES Ltd Incorporated in 1974, RITES Ltd. is a Government of India Enterprise, under the aegis of Indian Railways. RITES Ltd., an ISO 9001:2008 company, is a multi-disciplinary consultancy organization in the fields of transport, infrastructure, and related technologies. It provides a comprehensive array of services under a single roof and believes n transfer of technology to client organizations. In overseas projects, RITES actively pursues and develops cooperative links with local consultants/firms, as means of maximum utilization of local resources and as an effective instrument of sharing its expertise.

Since its inception, the company has evolved from providing transport infrastructure consultancy and quality assurance services and has developed expertise in:

  1. Design, engineering and consultancy services in transport infrastructure sector with a focus on railways, urban transport, roads and highways, ports, inland waterways, airports, and ropeways.
    2. Leasing, export, maintenance, and rehabilitation of locomotives and rolling stock.
    3. Undertaking turnkey projects on engineering, procurement and construction basis for the railway line, track doubling, 3rd line, railway electrification, up gradation works for railway transport systems and workshops, railway stations, and construction of institutional/ residential/ commercial buildings, both with or without equity participation; and
    4. Wagon manufacturing, renewable energy generation and power procurement for Indian Railways through collaborations by way of joint venture arrangements, subsidiaries or consortium arrangements.

In India, the clients include various central and state government ministries, departments, instrumentalities as well as local government bodies and public sector undertakings. These include Indian Railways, NTPC, Dedicated Freight Corridor Corporation of India Limited, High Speed Rail Corporation of India Limited, Public Works Department, DMRC, Steel Authority of India Limited, Rashtriya Ispat Nigam Limited, Hindustan Petroleum Corporation Limited, Bharat Coking Coal Limited, Metro Link Express for Gandhinagar and Ahmedabad (MEGA) Company Limited, Indian Port Rail Corporation Limited, Airports Authority of India, among others. The company also engages with various large private sector corporations including L&T Metro Rail (Hyderabad) Limited, Kanti Bijlee Utpadan Nigam Limited (KBUNL), Cimmco Limited, Titagrah Wagons Limited, Snowmex Engineers Limited, Unity Infraprojects Limited, Rajdeep Buildcon Private Limited, Mahalsa Constructions Private Limited, Marymatha Constructions Limited, AFCON Infrastructure Limited, INCAP, ARK Services, MNEC Consultants Private Limited, Indian Geotechnical Services Limited, Geokno India Private Limited and NATRIP Implementation Society among others.

On performance front

Rites has (on a consolidated basis) posted growth of CARG 15.62% in top line and CAGR 7.73% in PAT for last three fiscals (FY15 to FY17). For last four fiscals, Rites reported turnover/net profits of Rs. 1223.47 cr. / Rs. 260.61 cr. (FY14), Rs. 1159.11 cr. / Rs. 312.21 cr. (FY15), Rs. 1226.73 cr. / Rs. 282.93 cr. (FY16) and Rs. 1563.27 cr. / Rs. 361.76 cr. (FY17). For first nine months of FY ended on 31.12.17 it has earned net profit of Rs. 252.54 cr. on a turnover of Rs. 1061.06 cr. For last three fiscals, it has posted an average EPS of Rs. 16.11 and an average RoNW of 16.77%. Issue is priced at a P/BV of 1.7 based on its NAV of Rs. 108.60 as on 31.12.17. Its current order book is little over Rs. 4800 crore comprising 53% for consultancy services, 29% for Turnkey projects, 15% for exports and the rest for leasing and power generation projects. Out of total contracts on hand 77% is from Central/State Governments and the rest from others. If we annualize latest performance and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 11, thus it is attractively priced. It has no listed peers to compare with. Company is having asset light business model that augurs well for lucrative returns going forward.

Issue Detail:

»»  Issue Open: Jun 20, 2018 – Jun 22, 2018
»»  Issue Type: Book Built Issue IPO
»»  Issue Size: 25,200,000 Equity Shares of Rs 10 aggregating up to Rs 466.20 Cr
»»  Face Value: Rs 10 Per Equity Share
»»  Issue Price: Rs 180 – Rs 185 Per Equity Share (6 Rs Discount for Retail Investor)
»»  Market Lot: 80 Shares (80*179 = 14320 Rs)
»»  Minimum Order Quantity: 80 Shares
»»  Listing At: BSE, NSE

 

Conclusion: Long Term Perspective one can subscribe this IndoStar Capital Finance Limited IPO.

IndoStar Capital Finance Limited IPO (IndoStar Capital Finance IPO) Detail

Posted on by Hiren Kamani

indostar-capital-finance-logo





IndoStar Capital Finance Limited Incorporated in 2009, Mumbai based IndoStar Capital Finance Limited is a leading non-banking finance company (NBFC) registered with the Reserve Bank of India as a systemically important non-deposit taking company. The company operates four principal lines of business, namely corporate lending, SME lending, vehicle financing and housing financing. It recently expanded its portfolio to offer vehicle finance and housing finance products.

IndoStar Capital Finance Limited conducts its retail operations through ten branches across Mumbai, Delhi, Chennai, Bengaluru, Hyderabad, Jaipur, Surat, Ahmedabad, Pune and Indore and central support office in Mumbai.

The lenders of the company include, among others, 14 public sector banks, 13 private sector banks, 21 mutual funds and four insurance companies and other financial institutions. The distribution network includes approximately 210 personnel in its in-house sales team, and approximately 648 third-party direct sales associates (DSAs) and other third-party intermediaries.

Strengths-
1. Strong SME lending businesses
2. A high-quality loan portfolio with low rates of Gross NPAs and Net NPAs.
3. Proven track record of delivering results. Between fiscal 2013 and 2017, the company’s Total Credit Exposure and total revenue grew at a CAGR of 30.0% and 31.4%, respectively.
4. Access to best industry practices and international corporate governance standards due to institutional Promoter.

On performance front :

As of 28th February 2018,IndoStar Capital Finance Limited conducted its operations through 71 branches across India with central office support at Mumbai. As on the said date its distribution network included 548 personnel and approx. 949 third party direct sales associates. Promoters are part of the Everstone Group. Company’s gross NPAs accounted for 0.6%, 0.2%, 1.4% and 1.7% of Gross Advances, while net NPAs accounted for 0.5%, 0.2%, 1.2% and 1.3% of Net Advances, respectively. Its average Cost of Borrowings in the fiscal 2015, 2016 and 2017 and the nine month period ended December 31, 2017 was 11.9%, 11.1%, 10.3% and 9.1%, respectively. Currently ICFL has around 100 branch network.





For last four fiscals (on a consolidated basis) ICFL has posted total revenue/net profits of Rs. 396.91 cr. / Rs. 112.13 cr. (FY14), Rs. 528.06 cr. / Rs. 149.04 cr. (FY15), Rs. 644.05 cr. / Rs. 191.64 cr. (FY16) and Rs. 719.92 cr. / Rs.210.80 cr. (FY17). For the first nine months ended on 31.12.17 of FY18 it has earned net profit of Rs. 164.08 cr. on revenue of Rs.585.95 cr. For last three fiscals it has posted an average EPS of Rs. 25.53 and an average RoNW of 11.62%. Issue is priced at a P/BV of 2.17 based on its NAV of Rs.263.96 as on 31.12.17. If we annualize latest earnings and attribute it on fully diluted equity post issue then asking price is at a P/E of around 24 against industry average of 28.66. As per offer documents it is showing its listed peers as L & T Finance, Piramal Enterprise, Aditya Birla Capital, Capital First, Shriram Transport Fin., Sundaram Fin., Cholamandalam Inv. , Repco Home that are trading at a P/E of around 25, 31,48, 21, 25, 36, 28 and 21 (as on 02.05.18).

Objects of the Issue:

The Selling Shareholders will be entitled to the proceeds of the Offer for Sale of their respective portions of the Offered Shares, respectively net of their share of the Offer related expenses. The Company will not receive any proceeds from the Offer for Sale

The Objects Of The Issue is to utilize the Net Proceeds from the Fresh Issue towards augmenting its capital base to meet future capital requirements.

Issue Detail:

»»  Issue Open: May 9, 2018 – May 11, 2018
»»  Issue Type: Book Built Issue IPO
»»  Issue Size:
›  Fresh Issue of [.] Equity Shares of Rs 10 aggregating up to Rs 700.00 Cr
›  Offer for Sale of 20,000,000 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
»»  Face Value: Rs 10 Per Equity Share
»»  Issue Price: Rs 570 – Rs 572 Per Equity Share
»»  Market Lot: 26 Shares
»»  Minimum Order Quantity: 26 Shares
»»  Listing At: BSE, NSE

 

Conclusion : Long Term Perspective one can subscribe this IndoStar Capital Finance Limited IPO.

Bandhan Bank IPO

Posted on by Hiren Kamani

bandhanbank

Bandhan Bank Limited was incorporated on 23rd December 2014 as a wholly-owned subsidiary of Bandhan Financial Holdings Limited. Bandhan received the in-principle approval of the Reserve Bank of India (RBI) for setting up a universal bank in April 2014; the banking regulator gave its final nod in June 2015. Bandhan Bank Limited is Kolkata, West Bengal based commercial bank focused on micro banking and general banking services. Bandhan Bank has a license to provide banking services pan-India across customer segments. Bank offer a variety of asset and liability products and services designed for micro banking and general banking, as well as other banking products and services to generate non-interest income.

The RBI licensing norms stipulate that a new bank must have an Rs 500 crore capital. Bandhan Bank started with a capital base of Rs 2,570 crore and this has been raised to Rs 4,446 crore as on March 31, 2017.This translates into more than 26.34% capital to risk weighted assets ratio or CAR for the new bank, signifying its robustness.

With the a network of 2,546 doorstep service centers (DSCs) and 9.47 million micro loan customers, the bank has strong very hold in microfinance. Bandhan bank has 864 bank branches and 386 ATMs serving over 1.87 million general banking customers. Banks distribution network is strong in East and Northeast India, with West Bengal, Assam and Bihar.




Bandhan Bank Products:
1. Retail loans including micro loans, SME loans and small enterprise loans
2. Savings accounts, current accounts and a variety of fixed deposit accounts
3. Other banking products and services including debit cards, internet banking, mobile banking, EDC-POS terminals, online bill payment services and the distribution of third-party general insurance products and mutual fund products.

Bandhan Bank Strengths:
1. Operating Model Focused on Serving Under banked and Underpenetrated Markets (microfinance)
2. Consistent Track Record of Growing a Quality Asset and Liability Franchise
3. Extensive, Low Cost Distribution Network
4. Provide accessible, simple, cost-effective and innovative financial solutions
5. Robust Capital Base
6. Maintaining focus on micro lending while expanding further into other retail and SME lending

 

Performance Front

On performance front, BBL has reported total income/net profits of Rs. 7.95 cr. / Rs. 0.60 cr. (FY15), Rs. 1731.25 cr. / Rs. 275.25 cr. (FY16) and Rs. 4320.12 cr. / Rs. 1111.95 cr. (FY17). For first nine months of the current fiscal ended on 31.12.17 it has earned net profit of Rs. 957.70 on total income of Rs. 3954.51 cr.




Issue Detail:

»»  Issue Open: Mar 15, 2018 – Mar 19, 2018
»»  Issue Type: Book Built Issue IPO
»»  Issue Size: 119,280,494 Equity Shares of Rs 10 aggregating up to Rs 4,473.02 Cr
›  Fresh Issue of 97,663,910 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
›  Offer for Sale of 21,616,584 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
»»  Face Value: Rs 10 Per Equity Share
»»  Issue Price: Rs 370 – Rs 375 Per Equity Share
»»  Market Lot: 40 Shares
»»  Minimum Order Quantity: 40 Shares
»»  Listing At: BSE, NSE

Tara Chand Logistic Solutions Limited (TLS)

Posted on by Hiren Kamani

Tara Chand Logistic Solutions Limited logo



Tara Chand Logistic Solutions Limited (TLS) formerly known as Tara Chand & Sons, is engaged in serving the infrastructural needs of India since 1980 and has successfully provided comprehensive solutions to many large organization mainly engaged in providing logistic and supply chain services including transportation and warehousing, equipment rental and steel processing and distribution in India.

With over 35 years of experience, Tara Chand Logistic Solutions Limited (TLS) enjoys the distinction of being the industry leader in steel material handling and warehousing. Over the last two decades, the group has diversified into deployment of heavy lifting equipment required for infrastructure and construction projects. Company’s fleet or cranes and trailers has served across various sectors like Power, Windmill, Refinery, Steel and Urban Infrastructure (Roads, Bridges, Highways, Airports, Metros, and Gas Pipelines)

Tara Chand Logistic Solutions Limited (TLS) major clientele includes Reliance industries ltd, Larsen & Toubro ltd (seven Independent Companies), Steel Authority of India ltd, Rashtriya Ispat Nigam ltd, Oil and Natural Gas Corporation ltd, Tata Projects ltd, Hindustan Construction Company ltd, Vedanta ltd, J Kumar Infraprojects ltd, NCC ltd, Welspun Corp, ITD Cementation India ltd, Bharat Heavy Electricals ltd, Gayatri Projects Ltd, Megha Engineering & Infrastructures ltd.
Tara Chand Logistic Solutions Limited (TLS) current fleet of cranes consists of capacities ranging from 15MT to 800MT. The company has added another feather to its cap by acquiring an 800MT Liebherr crane, which will become only the second such crane to be deployed in India once it joins our fleet in April 2017.

Performance Front
Tara Chand Logistic Solutions Limited (TLS) has posted turnover/net profits of Rs. 23.98 cr. / Rs. 0.66 cr. (FY14), Rs. 39.25 cr. / Rs. 0.69 cr. (FY15), Rs. 46.22 cr. / Rs. 1.19 cr. (FY16) and Rs. 52.65 cr. / Rs. 2.63 cr. (FY17).




Issue Detail:

»»  Issue Open: Mar 13, 2018 – Mar 15, 2018
»»  Issue Type: Fixed Price Issue IPO
»»  Issue Size: 3,720,000 Equity Shares of Rs 10 aggregating up to Rs 20.46 Cr
»»  Face Value: Rs 10 Per Equity Share
»»  Issue Price: Rs 55 Per Equity Share
»»  Market Lot: 2000 Shares
»»  Minimum Order Quantity: 2000 Shares
»»  Listing At: NSE SME

»» Investment Amount : 110000 Rs

Recommendation
Investors may consider investment for short to long term.

Sarveshwar Foods Ltd IPO

Posted on by Hiren Kamani

Sarveshwar Foods Ltd



Sarveshwar Foods Ltd Incorporated in 2015, but the business was founded by the late Shri Mulamal Ji in 1890, and his son the late Shri Isher Dass Gupta took it into the second quarter of the last century. The group further expanded under the vision of the current chairman, Shri Suraj Prakash Gupta (Papaji), who gave it a new direction. Currently owned and managed by the fourth generation of the family and supported by a team of able professionals.

With over 100 years of experience in sourcing and processing of traditional Basmati rice Sarveshwar Foods Ltd is engaged in the business of processing and marketing of branded and un-branded basmati and non-basmati rice in the domestic and international markets. They offer procurement, storage, milling, sorting, packaging, branding and distribution of Rice.

Company’s product portfolio comprises of Basmati and non-Basmati rice of various kinds including white raw rice, steam rice, broken rice, brown rice and parboiled rice. Along with
the varied variety of conventional Basmati and non-Basmati rice their product portfolio also includes organic Basmati and non-Basmati rice including range of other organic products. They markets and distributes these organic food products under its brand “Nimbark”.

Company is selling organic products through this store viz. rice, red rice, brown rice, flours, pulses, nuts & dry fruits, spices & condiments, jaggery & sugar, breakfast cereals, edible oils, saffron, flaxseed, sesame seed. Sarveshwar’s operations are based out of the Jammu Region in the State of Jammu and Kashmir.

(Source: sarveshwarrice.com)

On performance front, Sarveshwar Foods Ltd has (on a consolidated basis) posted turnover/net profits of Rs. 241.37 cr. / Rs. 7.40 cr. (FY14), Rs. 262.50 cr. / Rs. 7.97 cr. (FY15), Rs. 355.19 cr. / Rs. 5.43 cr. (FY16) and Rs. 419.89 cr. / Rs. 12.81 cr. (FY17). For first half of current fiscal ended on 30.09.17 it has reported net profit of Rs. 7.93 cr. on a turnover of Rs. 259.39 cr. For last three fiscals, SFL has posted an average EPS of Rs. 7.09 and an average RoNW of 18.94%. Based on last three years’ average EPS asking price is at a P/E of around 12. Issue is priced at a P/BV of 1.98 on the basis of its NAV of Rs. 43.03 as on 30.09.17. If we annualize latest earnings and attribute it on fully diluted post issue equity then asking price is at a P/E of around 13 against its peers trading at 60 (LT Foods), 27 (KRBL) and 19 (Chamanlal Setia) as on 28.02.2018.




Issue Detail:

»»  Issue Open: Mar 5, 2018 – Mar 7, 2018
»»  Issue Type: Book Built Issue IPO
»»  Issue Size: 6,467,200 Equity Shares of Rs 10 aggregating up to Rs 54.97 Cr
»»  Face Value: Rs 10 Per Equity Share
»»  Issue Price: Rs 83 – Rs 85 Per Equity Share
»»  Market Lot: 1600 Shares
»»  Minimum Order Quantity: 1600 Shares
»»  Listing At: NSE SME

One can apply this sme for short to long term.

HDFC Standard Life Insurance Company Ltd IPO (HDFC Life IPO) Detail

Posted on by Hiren Kamani

hdfc-life

HDFC Standard Life Insurance Company Ltd (HDFC Life) Incorporated in 2000, HDFC Standard Life Insurance Company Ltd (HDFC Life) is Mumbai based life insurance provider in India. offering a range of individual and group insurance solutions. Its portfolio comprises various insurance and investment products such as 1) Protection, 2) Pension, 3) Savings & Investment and Health, along with Children's and Women's Plan. As on June 30, 2017, the Company offered 31 individual and 10 group products, along with 8 optional rider benefits catering to specific needs of customers during each stage of their lives.

HDFC Standard Life Insurance Company Ltd (HDFC Life) is a joint venture between Housing Development Finance Corporation Limited, one of India’s leading housing finance institutions and Standard Life Aberdeen plc (one of the world’s largest investment companies), initially through its wholly owned subsidiary The Standard Life Assurance Company and now through its wholly owned subsidiary, Standard Life (Mauritius Holdings) 2006 Limited. 

HDFC Life has a pan India presence, comprising 414 branches and spokes, and over 11,200 branches across India of its top 15 bancassurance partners, as on June 30, 2017. The Company has two wholly owned subsidiaries namely HDFC Pension Management Company Limited, which is regulated by Pension Fund Regulatory and Development Authority of India and HDFC International Life and Re Company Limited, which is regulated by Dubai Financial Services Authority.

Company Promoters:

The Promoters of the Company are:

1. Housing Development Finance Corporation Limited ("HDFC");
2. Standard Life (Mauritius Holdings) 2006 Limited ("Standard Life Mauritius"); and
3. Standard Life Aberdeen plc ("Standard Life Aberdeen").

Objects of the Issue:

The objects of the issue are:
1. To achieve the benefits of listing the Equity Shares on the Stock Exchanges and 
2. To carry out the sale of Offered Shares by the Selling Shareholders.

Issue Detail:

  »»  Issue Open: Nov 7, 2017 – Nov 9, 2017 
  »»  Issue Type: Book Built Issue IPO 
  »»  Issue Size: 299,827,818 Equity Shares of Rs 10 aggregating up to Rs 8,695.01 Cr 
    ›  Offer for Sale of 299,827,818 Equity Shares of Rs 10 aggregating up to Rs [.] Cr 
  »» Face Value: Rs 10 Per Equity Share 
  »» Issue Price: Rs 275 – Rs 290 Per Equity Share 
  »» Market Lot: 50 Shares 
  »» Minimum Order Quantity: 50 Shares 
  »» Listing At: BSE, NSE