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At 5.00 pm on first day :-
Public issue of 14,500,000 Equity Shares.(including Anchor Portion of 2,175,000 equity shares).
So available shares are 1,23,25,000
Till 1PM. Subscription figures are as below:
Total Issue Size 1,23,25,000
Total Bids Received 4,20,600
Total Bids Received at Cut-off Price 3,54,700
No. of times issue is subscribed 0.03
Valuations are a concern....better to avoid such highly priced IPO''s.
Yes its premium is more than ten times of its face value and more than 1000%
very good ipo but less chance allotment.
At present, market season is high weather, likely to get 20 Rs. at lisiting time
HOZ IT POSSIBLE TO GET RS 20 ,ISNT THERE 5% CAP FOR SMALLER ISSUES?
Likely to give listing gain and it will be subsribed full
Wonderla Holidays is entering the primary market on Monday 21st April 2014 through a fresh issue of 1.45 crore equity shares of Rs.10 each, priced in the band of Rs. 115 to Rs. 125 per share. The issue represents 25.66% of the post issue paid-up capital and will raise Rs. 167 crore and Rs. 181 crore at the lower and upper price band, respectively. To be listed on NSE and BSE, the issue closes on Wednesday 23rd April.
Part of the Kochi based V-Guard group, Wonderla Holidays owns and operates 2 amusement parks in Kochi and Bangalore, spread over 93 & 82 acres since 2000 and 2005 respectively. It also owns and operates a ‘3 star’ 84 key resort beside the Bangalore amusement park, since March 2012, which accounts for Rs 6 crore or 4% of annual revenue.
With footfalls of 23.4 lakh in FY13 at the two parks, company clocked total income of Rs. 139 crore, of which income from services was Rs. 125 crore while sale of products accounted for Rs. 13 crore. While footfalls were higher only by 4% YoY, revenue rose 22% in FY13 on back of 19% growth in services income (mainly ticket sales) and 54% jump in sale of products such as food, beverages, mementoes etc.
For FY13, it earned EBITDA of Rs. 64 crore and net profit of Rs. 33.5 crore, resulting in EBITDA margin and net margin of a handsome 46% and 24% respectively. EPS for FY13 stood at Rs. 7.97, on equity of Rs. 42 crore. Promoter holding is currently at 95.48% and will decline to 70.97%, post IPO. Balance pre-IPO stake is held by employees.
During 9 months ended 31st December 2013, total income rose to Rs. 122 crore, with EBITDA of Rs. 58 crore and net profit of Rs. 31 crore, leading to expansion in net margin to 25.5% from 24.1% in FY13. EPS for 9mFY13 stood at Rs. 7.38 vis-à-vis Rs. 7.97 for FY13. As of 31st December 2013, company’s networth stood at Rs. 152 crore, resulting in BVPS of Rs. 36.3. Company has debt of Rs. 18 crore and liquid investments of Rs. 15 crore, making it nearly debt-free.
It is setting up a 3rd amusement park in Ranga Reddy District near Hyderabad (to be part of Telangana), for which 49.57 acres of land have been acquired for Rs. 25 crore. Total cost of new park is estimated at Rs. 256 crore, of which Rs. 173 crore will be funded via IPO proceeds, Rs 50 crore via debt (tied-up from State Bank of Travencore) and balance Rs 33 crore from internal accruals. Rs. 38 crore has already been spent on the Hyderabad park, till date, mainly towards land purchase and placing order for the new rides.
Since footfalls and hence revenue is seasonal in nature, Q1 and Q3 are better performing than Q2 and Q4. FY14 PAT is estimated at Rs. 38 crore resulting in EPS of Rs. 9.2. At the lower and upper band of Rs. 115 and Rs. 125, shares are being issued at EV/EBITDA multiple of 9x and 9.8x, based on FY14E earnings, respectively, and on PE multiple of 12.5x and 13.6x, respectively, which is quite attractive, given the growth rates, high profitability and planned expansion. At Rs. 125, company’s market cap will be Rs. 706 crore. Adding debt for Hyderabad park, the resultant enterprise value is close to Rs.750 crore – which is equivalent for 3 parks (Kochi, Bangalore and under-construction in Hyderabad).
The company has an established presence in South, which will be expanded further in the same region (plans to enter Chennai after Hyderabad). Besides near debt-free status and high profitability levels, company’s parks enjoy good customer reviews. Once Hyderabad park gets operational in FY17, both revenues and net profit will be augmented.
Although competition, especially in Bangalore and Chennai, may be challenging, so also expansion to parts of North which face severe winters unfavourble to its model of water-cum-dry rides in the same park. Another concern is on the corporate governance. Group company V Guard Industries raised Rs. 66 crore via IPO in 2008. One of the objects of issue included setting up of an enameled copper wire factory for Rs. 9 crore. Post IPO, based on an internal R&D report, company changed this object and diverted funds for general corporate purposes. Also, going by the past performance in share price of V Guard, operator play is not ruled out in this counter as well.
Fundamentally, based on the valuation multiples (EV/EBITDA and PE), the issue looks attractively priced. One can apply in the issue. However, be prepared for strong operator play!
Wonderla Holidays IPO: Invest
Posted by: Srikanth Matrubai in IPO 2 days ago 0 105 Views
V-guard sister concern Bangalore based Wonderla Holidays is coming out with its Initial Public Offering (IPO) on 21st April. Minimum lot is 100 equity shares and in multiples of 100. Issue closes on 23rd April.
The Issue size is 1.45 crore equity shares of Rs.10 each with a price band of Rs.115 -Rs.125, which would constitute about 25% of the Post Issue Share Capital.
The Issue proceeds will be deployed towards setting up an Amusement Park in Hyderabad.
V-guard has proved its mettle and Wonderla too is proving every inch to be a as good performer if not more.
Wonderla is also targetting to open Amusement Park in Chennai at a later date.
CRISIL has assigned a rating of 4/5 to the IPO which indicates ‘ABOVE AVERAGE’.
Wonderla has established a dominant position in the Indian Amusement Park scene. It has been operating its 2 parks in Kochi (earlier known as Veegaland Park) and Bangalore. The Company also manages a Resort in its Bangalore Amusement Park.
1. Strong consistent growth seen since inception
2. High Profit margins
3. Crisil ratings
4. Develops In-Horides including 3D and 4D rides of International standards.
5. Footfalls have been growing steadily.
6. Non-ticket revenue has been steadily increasing and now stands at a good rate of 20%.
7. Highest Safety standards followed has ensured that in its 14 years of operation, Wonderla has seen only about 10 accidents and that too with regard to the Visitors medical conditions like Epilepsy, etc.
8. Despite the Company being in a Capital intensive industry, its Debt is less than Rs.20 crores.
1. Going into Hyderabad and Chennai markets, where there is already a good number of other attactions operating thus could affect profitability margins.
2. The Hyderabad Park will be operational only in Q4 of FY15-16, about 2 years from now.
I had a chat with WonderLa Managing Director Mr.Arun Chittilappilly and posed the question about the expected Competition in Hyderabad and Chennai.
He explained that nearly 35% of visitors to Bangalore Park are non-locals and majority of these come from Hyderabad and Chennai.
About the competition, he said, that out of 3 parks in Hyderabad, 1 has stopped working and what Wonderla will be offering will be completely different from the existing offers.
While the same thing holds good for Chennai, another thing in favour of WonderLa Chennai will be that these parks in Chennai are more than 15 years old at least.
MY TAKE :
Wonderla is different than other players in the Amusement Park field in the sense that they follow a Multi-city model which derisks the location negative.
WonderLa’s Trailing EPS is about 7.5 and at Rs 125, the PE works to 14 which is okay for a player which has a established name with promoters having a good track record.
Since Wonderla has no peers to compare, the stock could be high on the radar of Institutions and with a PE of 20 on a expected EPS of 9 (as indicated by the Management), we could see the Stock quoting around Rs.180 levels.
Wonderla Holidays Limited allots 2.175 mn Equity Shares to 3 Anchor Investors @ Rs. 125 per equity share aggregating to Rs. 271.87 mn (Rs. 27.19 crore)
Wonderla Holidays Limited (the “Company”) has finalized the allocation of 2,175,000 Equity Shares (15% of the total Offer of 14500000 Equity Shares) to 3 Anchor investors at Rs. 125 per equity share (upper end of the price band) aggregating to Rs. 271.875 mn (Rs. 27.19 crores). The Anchor Investors’ list includes HDFC Trustee Company Limited (HDFC Mutual Fund), Aditya Birla Private Equity Trust & TVS Shriram Growth Fund (TVS Capital).
Please go through this link for analysis by Mr. S.P. Tulsiyan.
AS PER MRKT NEWS
FROM 2 MINIMUM APLLICATION 1 WLL GET SHARE
SO APPLY AT HIGHER BAND OF 125
PAVANBHAI, GRAY MARKET ME 12500 KE SAMNE 5% RETUREN MIL RAHA HE.
I will wait and watch subscription figures on 22nd and take final call of applying at lower price band or skip the IPO as we are hearing El Nino effect in May and Market may correct at that time.
If you are sure that you will get 12500 go ahead. I dont know how to get benefit from that grey market premium you are talking about. Could you please explain that for the benefit of all users of this page?
Capital Market Rating is 40/100. So better avoid this IPO and enter once its lists at lower price hopefully.If at all one dont want to miss it out, I think can apply at lower price band.But applying at upper price bad seems risky.
Over priced ipo are injurious to our investment
i sure 600 to 800/- on minimum
Is it per application
Apply at the lower price band only..
many ipo are came of good comany group but listing time......like this
pls. tell me about this ipo.
How many time subcribe?
how may rate will be listing time?
now, Election .......
Seems to be overpriced. But it is from the group of V GUARD.
Can not make up my mind at this time.
Let me wait for some more time.