November 23, 2010

MOIL IPO Price of Rs 340-375 makes Valuation Very Attractive;Mining PSU Should See Huge Oversubscription

The main difference between MOIL and Coal India is the number of shares being issued.Note MOIL is going to raise only $300 million compared to the $3.5 billion raised Coal India.CIL had gotten 15 times over subscription which implies that MOIL can 150 times over subscription based on CIL subscription numbers.While the MOIL IPO Price is very attractive,the massive potential over-subscription would hardly lead to much allotment.However the government had done a good job in pricing the PSU share sales at a decently low price leaving something on the table for investors.Coal India IPO was done at a substantial discount to international peers making it a big success.Shipping Corporation of India is also coming out with a FPO where the pricing will be the key.
November 22, 2010

Claris LifeSciences Stock IPO Review – Good Growth,Sector and Valuation against Low Quality Management

Claris Lifesciences is one of the few decent size pharmaceutical companies coming out with an IPO of around Rs 300 crores ($65mm) in the price band of Rs 278-293 which would give it a market cap of around Rs 1400 crore.Most of the money would be used in manufacturing expansion as the company is still in the capex phase spending around $20-30mm annually.There is a lot to like in the stock except for the management.The Pharma Sector is one where India has done extremely well boosted by its low cost qualified labor something like the IT sector.The Indian Pharma Sector excel in the Generics Category which has been receiving increasing global attention for reducing ballooning health-care costs.India posseses a definite competitive advantage in the Generics Category.Here is the list of pros and cons for Claris LifeSciences
October 12, 2010

Prestige Estates IPO Review and Analysis – Valuation Too High for a Bad Company (Low Margins,High Debt,Stagnant Sales) in a Bad Sector (Real Estate)

Prestige Estates is an Indian Real Estate Company with its operations focused in the southern part of India mainly in the techie city of Bangalore.The company is one on the long list of Realty Companies which have been waiting impatiently to raise money from the Stock Markets trying to pay off their debts.It is raising around Rs 1200 crores or $250mm .Oberoi Realty was a decent Realty Stock as far as the Sector goes which managed good subscription numbers in the last week.With "animal spirits" returning fueled by Bernanke's Helicopter Policy expect more such shoddy Realty issues to hit the market.Note the Sector is an investor minefield with even well connected Fund Managers not trusting the financial statements published by these companies.With the Indian Stock Market already featuring a wide variety in terms of quality and quantity of Realty Stocks,Prestige Estates brings no difference and on analysis seems easy to avoid.Here are some features to this company Summary Prestige Estates is another low quality shady highly indebted Realty Company which should be strictly be avoided.It defies any simple analysis because of its convoluted structure and cross holdings.The Company Sales have been stagnant and Margins Low and it has high concentration risk as well.The Management inspires no confidence at all and is a typical example of the badly managed Real Estate Sector in India.Should be avoided at all costs by investors.Note 5 of the last 9 IPOs in India in the last month are giving losses to investors.This promises to be no different given the fundamentals.
June 9, 2010

Fatpipe Networks IPO misses getting subscribed by 30%,extends Book Building by 5 days and Lowers price band slightly

Fatpipe Networks IPO failed to get full subscription within the prescribed 3 days with the issue getting subscribed by only 70% .Fatpipe Networks Review had revealed […]