Larsen & Toubro Finance Holding IPO - Should you subscribe?

L&T Finance Holdings - As the name suggest, it’s a financial holding company promoted by Larsen & Toubro Ltd.

Business:

It offers variety of financial products and services for the corporate, retail and infrastructure finance sectors, mutual fund and investment management.

L&T Finance Holdings is registered with the RBI as a Systemically Important Non-Deposit Taking Non-Banking Financial Company and has applied for registration as a Core Investment Company.

Operations:

- The Infrastructure Finance Group,

- The Retail Finance Group,

- The Corporate Finance Group and

- The Investment Management Group.       

Customer:

Company’s customer includes individual retail customers as well as large companies, banks, multinational companies and small- and medium-enterprises. LTF offers a spectrum of financial products and services for trade, industry and agriculture.The company's focus segments are corporate products, construction equipment, CVs and tractors.

Objects of the Issue:

1. Repayment of inter corporate deposit issued by Promoter to the Company;

2. To augment the capital base of L&T Finance and L&T Infra, to meet the capital adequacy requirements to support the future growth in their business;

3. To achieve the benefits of listing on the Stock Exchanges; and

4. General corporate purposes including meeting the expenses of the Issue.

Issue Detail:

  Issue Open: Jul 27, 2011 - Jul 29, 2011

  Issue Type: 100% Book Built Issue IPO

  Issue Size: Equity Shares of Rs. 10

  Issue Size: Rs. 1,245.00 Crore

  Face Value: Rs. 10 Per Equity Share

  Issue Price: Rs. 51 - Rs. 59 Per Equity Share

Grading:

CARE has assigned an IPO Grade 5 to L&T Finance IPO. This means as per CARE, company has 'Strong Fundamentals'. CARE assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals.

Subscribe:

I recommend “subscribe” for the IPO with following reasons.

- L&T group has strong brand value and history of creating wealth for the investors.

- L&T group is planning to restructure and come up with different IPO’s of it’s non listed companies and L&T Finance Holdings amongst the first to hit the market would attract investors.

- The company is going to raise Rs. 161 crore via anchor investors in the IPO, which should be one day before the IPO opens for subscription. There is going to be great demand from the Anchor investors for the IPO and would cascade into the IPO by institutional investors.

- “Strong Fundamental” IPO with grade of 5 have done really good in past. Like, Coal India, MOIL. L&T Finance Holding is likely to repeat the same.

Happy Investing!!

Godrej Properties Listed at Rs 510 as suggested

Godrej Properties got listed at Rs 510 per share as suggested in my blog post on this Sunday.

Click here to read the details.

Godrej Properties has touched intraday Rs 586.70. I already indicated this fact in my previous article under Company fundamental section "Qualified Institutional Investors looks quite bullish on the stock, which can add some premium to the counter on the listing day. If this continues you'll see appetite for the stock from Mutual Funds, HNI and Retail Investors"

As I anticipated Godrej Properties has given good return to the investors on the listing.

Now what’s next?

- Lets wait for stock to form base for now. It's likely to settled down around 535-550 Levels.

- Nifty is moving upwards which is good indication.

- Global markets are supportive as yesterday US markets were up and today Asian markets were buzzing.

- Today we had extremely strong breath. We can sense it from Advance Decline ration.

- People who already have position in the stock should continue holding it but keep a stop loss of Rs 495. New position could be taken if stock moves above Rs 575 levels.

Happy Investing!!

Godrej Properties IPO listing

Godrej Properties equity shares will list on 5th Jan to the stock exchanges.

Earlier company has come up with IPO of 9429750 equity shares of Rs 10. Issue was open for subscription from Dec 9 to Dec 11. Company has got good response from qualified institutional investors where it got subscribed 7.45 times. Retail investors and Non institutional investor quota were not fully subscribed.

Company has fixed share issue price at Rs 490 per share, which is lower end of price band Rs 490-530. It has collected more than Rs 460 cr. from this IPO.

Reason for IPO:

- 30% of IPO money would be used for debt repayment.

- Company will acquire land development rights for upcoming projects, investment in new projects.

Company Fundamentals:

Positive:

- Company carries brand name of Godrej. Godrej Industries holds 80.26% in the company.

- Operates in the real estate sector where demand is likely to pick up in upcoming years after current slowdown.

- Qualified Institutional Investors looks quite bullish on the stock, which can add some premium to the counter on the listing day. If this continues you'll see appetite for the stock from Mutual Funds, HNI and Retail Investors

Negative:

- Many brokering houses have downgraded real estate as sector.

- People look more skeptical regarding turn around in the sector.

- Larger players are available in the market as cheap valuation.

Listing Price:

I see Godrej Properties to list around Rs 500-510.

Long term investors should wait for initial market reaction to get into the stock. One can buy this stock during market correction.

Happy Investing!!

JSW Energy Listing Price

JSW Energy will list on coming Monday - Jan 4, 2010. JSW Energy shares will list on both NSE and BSE via public issue.

As many of us know that it's JSW Group Company and frankly speaking they have track record of making money for the investors. Most of their company stocks have outperformed stock market in 2009. Like, Jindal Steel and Power.

In fact they have given discount of Rs 5 for the stock to retail investors where issue price was fixed at Rs 95 per share.

IPO of JSW Energy was subscribed 1.68 times - taken from NSE Website. There was no hunger in the market for the issue as investors have not made money in other recent power IPO's like Adani Power and NHPC.

Qualified Institutional Investors portion was subscribed 2.88 times but retain and non-institutional investors were not much exited about the issue and their quota was not fully subscribed.

Company is planning to utilize raised amount to various power projects and reduce the debt. Thing which I'm glad about is that company will use some portion in Mining acquisition, which will result in giving competitive advantage to the company in the sector. This model will add up into bottom-line of company. As of now company is having 860 MW power generation capacities. With this IPO money they are planning to raise it 2790 MW.

Listing Price for JSW Steel :

Listing Price depends on various conditions like,
- Market opening on Monday. As we all know from Monday Market will open at 9:00 in the morning. So get ready to wake up early
. It's entirely new experience for all of us as our markets are now inline with global markets opening.
- Dow Jones and NASDAQ closed in red on Thursday. So we need to see if global markets are reacting on that.
- I don't see people buying this stock aggressively due to lackluster IPO response, peers are available at bit cheap valuation for now.
- I see listing around Rs 90 - 94 for JSW Energy.

Long term investor should wait for the market correction to get into the stock. One can buy around Rs 85 and hold it for at least 1-2 years.

Happy Investing !!

DB Corp IPO Allotment Status

DB Corp IPO allotment status is available now.

Click Here to check your status.

Happy Investing !!

Subscription Details - DB Corp

Qualified institutional buyers - 68.52
Non institutional investors - 26.17
Retail individual investors - 3.42
Total : 39.54

Subscription details are available for DB Corp IPO on NSE web site.

There's lot more buying interest from QIB's where it subscribed 68.52 times.

For retail investor it subscribed 3.42 times. Hopefully all retail investor should get allottment.

Investor who have applied for DB Corp need not to worry about anything. This is the same case as Cox and kings where people have made lots of money on the day of listing.

You'll definitely get good return out of this IPO.

DB Corp IPO - Subscribe?

Recently many companies are raising money using IPO, but only few have left something on table for the investor. Like, Oil India and Cox and kings.

Now it's turn for DB Corp. You must be thinking what's this company is all about , I've never heard about it. But the truth is you already know much about this company. You must have heard about Divya Bhaskar or Dainik Bhaskar. This company is behind all these brands.

Company has come-up with The IPO of 18,175,000 equity shares.
Price band : Rs 185-212 per share
Issue closes: December 15, 2009

For long term investor this IPO looks good also you can make money on the day of listing.
Company is operating in many states and under vernacular media. This space is getting lot of advertising revenue, inspite of the current slow down.

Growth story for the DB Corp is intact and also they've left some money on the table for investor, as company is having P/E multiple of 20 as per forward earning of Rs. 12 for FY11.

I believe stock can go upto 235 - 245, which would be fair value for the company. So here's chance to get 10-15% return. Only concern is the D-Day for the stock, which is listing day.
As per current situation in market there's no positive surprise likely to come in near future.

Also during first-second week of Jan, there's likely to be rate hike. So we just need to keep close eye the listing date.

So people who want to exist the stock on listing day should go for it and definately long term investor should apply for the IPO.