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17. VALUE INVESTOR  Jun 21, 2017 7:20:35 PM IST Reply

Eris Lifesciences Limited IPO

CDSL subscription speaks for itself. Here we have everyday one person coming and supporting this IPO and people who have applied giving it thumbs up. We will see this trend continue till listing next week, because people are more tensed after seeing blockbuster CDSL subscription
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16. VALUE INVESTOR  Jun 21, 2017 2:11:19 PM IST Reply

GTPL Hathway Limited IPO

premium.thehindubusinessline.com/portfolio/news-analysis/gtpl-hathway-expensive-postissue-shocks-possible/article9731434.ece?utm_source=email&utm_medium=Email&utm_campaign=Newsletter

GTPL Hathway: Expensive, post-issue shocks possible

BL RESEARCH BUREAU:
GTPL Hathway, India’s leading cable television operator, is making an initial public offer to raise around ₹240 crore through a fresh issue of shares and another ₹240 crore through an offer-for-sale.

Decent market share
The company, promoted by Hathway Cables and Datacom, has sizeable presence in the cable television segment in Gujarat and Kolkata with market shares of 67 and 24 per cent, respectively.

However, the cable television industry is currently facing multiple challenges that can affect the company’s prospects. High dependence on local cable operators (LCO) is another negative for the cable business of GTPL Hathway.

The broadband services business also faces competitive pressure from wireless Internet services provided by leading telecom players. Volatility in earnings and thin margins put the financials on a weak footing.

At the upper end of the price-band — ₹170, the price-to-book ratio is 4.43 times for 2016-17 (annualised) according to Indian Accounting Standards — IndAS (3.2 times according to IGAAP).

Business challenges
This is expensive compared to peers such as Den Networks and Hathway Cables and Datacom that trade at 1.76 and 3.5 times, respectively. Investors can, therefore, stay away from this offer.

The cable television business accounts for roughly 85 per cent of GTPL’s revenue. This industry is expected to grow at a healthy clip over the coming years and GTPL’s presence in 189 towns across India give it good reach. However, the company faces stiff competition from other cable television players such as Den Networks and its parent, Hathway. The competition from DTH players such as Tata Sky and Bharti Airtel is also intense. Also, Reliance Jio’s expected foray into DTH could affect GTPL’s prospects.

Despite offering various regional channels and making good progress in digitisation, GTPL’s cable television is no match for DTH players, who offer superior channel quality and a wide variety of channels.

Heavy LCO dependence
GTPL is also heavily dependent on its LCOs to generate and maintain revenue. This can prove to be a deterrent to growth. As of January 2017, over 90 per cent of their customers came through LCOs. The LCOs are not under any long-term obligation to remain affiliated with GTPL. Thus, termination of agreement and loss of LCOs to other players could have a negative impact on the company.

The company’s broadband business is also on shaky ground as affordable prices of Internet services from the telecom players affect its pricing power. The company might have to incur additional expenditure on improving its technology if it wants to remain competitive.

Revenue, according to IndAS, has grown at a compounded annual growth rate of 18 per cent between FY14 and FY16; to ₹738 crore in FY16. For the nine months ended December 2016, revenue grew at a healthy pace to ₹652 crore. However, competition can temper this growth rate, going ahead. Profits have also been erratic, coming in at sub-₹8.5 crore, ₹15.5 crore and ₹4.6 crore in FY14, FY15 and FY16, respectively. Net profit margins are also very thin at 0.6 per cent for FY16. The company’s gross debt as on December 2016 stood at ₹476 crore. Proceeds from the fresh issue will be primarily utilised to repay the company’s debt to the tune of ₹228.9 crore.

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15. VALUE INVESTOR  Jun 21, 2017 9:56:47 AM IST Reply

Au Financiers (India) Limited IPO

Analysis of upcoming IPO of AU Small Finance Bank has been loaded on www.sptulsian.com.



You can access it in the Free Zone in the IPO Analysis section. The section can be accessed at:

https://www.sptulsian.com/free-zone/ipo-analysis

IPO Analysis: AU Small Finance Bank

Verdict: Asking for gold!

Shriram Transport Finance, India’s largest asset financing NBFC specialising in used CV segment, with Rs. 79,000 crore loan book, is ruling at PBV multiple of 1.8x and PE of 16x, while M&M Finance, providing vehicle loans to rural India through a nationwide network of 1,200 branches and Rs. 42,000 core loan book is trading at PBV and PE multiples of 2.5x and 18x. 1,000 branches strong Shriram City Union, three-fourth of whose Rs. 23,000 crore AUM comprises of SME and 2wheeler loans, is ruling at PBV of 2.7x while another vehicle financer Cholamandalam Investment is trading at PBV of 3.4x, despite much larger loan portfolio of Rs. 29,000 crore.

Capital First, specialising in SME loans with AUMs of Rs. 20,000 crore, promoted by Warburg Pincus (same investor in AU) having current ownership of 36%, has long term credit rating of AAA (versus AU’s A+, which is four notches lower), higher growth rates (reported NII and PAT growth of 65% and 44% respectively in FY17 as against AU’s 41% and 32%), enjoys better asset quality (net NPA of 0.30% vis-à-vis AU’s 1.05%) with listed track record of nearly one decade, is available much cheaper, at PBV multiple of 2.6x and PE of 21x.

Bajaj Finance is the only NBFC ruling at a higher PBV of 6.5x which is justified by its 44% YoY PAT growth (32% for AU in FY17) and AUM growth of 36% on huge base of Rs. 44,000 crore (31-3-16) to Rs. 60,000 crore (31-3-17), versus AU’s AUM growth of 31% on much lower base of Rs. 8,000 crore (31-3-16). Moreover, Bajaj Fin’s asset quality is significantly better, with net NPAs of only 0.4% in relation to AU’s 1.05%. Well, both size and asset quality matter and AU has a lot of catching up before it can join the premium big league of the likes of Bajaj Finance!



While AU is an asset finance NBFC to start SFB operations, listed peers who have started SFB are Equitas and Ujjivan, being micro finance institutions, and ruling at nearly half of AU’s asking valuation. Equitas, operating its SFB since Sept 2016, is ruling at PBV of 2.2x, while Ujjivan, which launched SFB operations in Feb 2017, is trading at PBV of only 1.9x, with both having comparable AUMs of Rs. 6,000-7,000 crore. What also comes to light from the experience of these 2 companies is as SFB business expands, cost of operations rise, straining P&L for a few quarters, especially when serving unbanked areas (regulatory requirement of minimum 25% of total braches to be located there). Hence, AU will also see pressure on its P&L in FY18.

From the above, one can thus conclude that in relation to (practically all) NBFCs operating in vehicles and SME lending space, AU’s IPO is grossly overpriced.

While it will be futile to compare AU with banking heavy-weights, such as Indusind, Kotak, Yes or even HDFC Bank, in existence for so many years while AU is a new entrant yet to prove its mettle as a bank, different set of RBI regulations govern the two - take for example, priority sector lending at 40% versus 75% for small finance banks. The above four banks are all currently ruling at PBV multiples of less than 4 times, FY18 book. Despite all the investor fancy and spectacular run-up in share price, even RBL Bank, with Rs. 49,000 crore balance sheet, is ruling at PBV of 3.8x on FY18E BVPS, which fades away AU’s pricey valuation.

In short, by all parameters, AU Small Finance Bank IPO is expensively priced.

Benjamin Graham, revered in the investment community as the father of value investing, who has also mentored the most-admired-investor-of-our-times Warren Buffett, has, in his book The Intelligent Investor, said ‘A great company is not a great investment if you pay too much for the stock’. The above applies perfectly in case of AU Small Finance Bank. One wonders what prompted the company and merchant bankers to adopt such steep pricing!

While the company is good, posting strong growth, albeit with regional presence, pricing of the issue is very aggressive, making it an avoid.
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15.1. Nidhike  Jun 21, 2017 12:23:15 PM IST

Au Financiers (India) Limited IPO

A full time operator quoting Benjamin n buffet in his analysis......seems nobody paid him for this issue!!!!!! :)
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14. VALUE INVESTOR  Jun 20, 2017 8:08:28 PM IST Reply

Eris Lifesciences Limited IPO

This Forum has become more of slugfest between those who applied and those who did not apply. Everyone is entitled to their opinion and nobody needs to feel pity for anyone. Finally it comes down to saving your own capital which is outmost importance rather than falling prey to wrong decision influenced by others. It is better to apply in IPOs where gains are 100% sure after lottery allotment like CDSL rather than speculating in IPOs where subscription is not great.
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13. VALUE INVESTOR  Jun 20, 2017 2:26:18 PM IST Reply

Eris Lifesciences Limited IPO

look at s chand company offered at Rs 670 with face value of 2 Rs.
It is trading today at 503 Rs.

Only change here will be in Eris, it is 1 Rs face value
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12. VALUE INVESTOR  Jun 20, 2017 2:12:33 PM IST Reply

Eris Lifesciences Limited IPO

Paying Rs 6030 rs for a pharma share is bit too much an ask.
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11. VALUE INVESTOR  Jun 20, 2017 10:55:21 AM IST Reply

Eris Lifesciences Limited IPO

HINDU BUSINESS LINE REVIEW:
--------------------------
Eris Lifesciences (IPO): Expensive solution

This India-focussed pharma player, with healthy prospects, is asking for a high price

The initial public offer of Ahmedabad-based specialty pharma company Eris Lifesciences (Eris) is underway. The issue is an offer-for-sale by promoters and other shareholders in the price band of ₹600-603.The company has charted a strong growth path so far on the back of its focus on lifestyle-related specialised therapeutic areas in the Indian market, a high growth opportunity.

A low base has also helped, with the company just about a decade old. The company’s growth prospects seem bright. Strong balance sheet and expansion through acquisitions and entry into new product categories are positives too. Its India-only business model also offers comfort in the current scenario of many export-oriented pharma firms facing regulatory heat abroad.

Premium valuation
But the offer has been priced at a stiff premium, that factors in all these positives and more. At the upper end of the price band (₹600-603), the issue’s valuation (price-to-FY17 earnings) is nearly 34 times — much higher than the S&P BSE Pharma’s valuation of about 26 times.

Even compared with the high valuations of some India-focused pharma MNC subsidiaries (24-32 times), the Eris Lifesciences issue seems pricey. The steep valuation of some of the MNC pharma companies can also be called into question.

While the company has been growing faster than many peers, its pace could moderate as size increases and the base gets bigger. Besides, benchmarking valuations with pricey MNC pharma stocks could be tricky, given the different organisation profiles, brand positioning, and premiums due to delisting possibility incorporated in many MNC stocks. Investors can wait out the primary issue and look for more attractive price points to buy into the stock after its listing.

Strong product suite
Incorporated in 2007, Eris Lifesciences manufactures and sells high-margin branded pharmaceutical products only in India. Unlike many India-based pharma peers, the company does not export to foreign markets. Its focus is the fast growing lifestyle-related therapeutic categories in the country. The product portfolio includes niches in high-growth chronic and acute categories such as cardiovascular, anti-diabetics, vitamins, gastroenterology and anti-infectives.

The company operates mainly through the prescription-led business model, with high focus on specialists and super specialists such as cardiologists, diabetologists, endocrinologists and gastroenterologists. More than three-fourth of the company’s revenue comes from metros and Class 1 towns.

Eris is among the top five companies in India by prescription share. The number of doctors prescribing the company’s products increased to 50,282 in FY17 from 37,842 in FY13. It had 1,500 marketing representatives as of March 2017.

The product portfolio comprised 80 mother brand groups as of March 2017. The chronic category, one of the fastest growing segments in the Indian pharmaceutical market (IPM) due to increasing incidence of lifestyle-related diseases, has driven Eris’s growth.
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10. VALUE INVESTOR  Jun 19, 2017 9:14:56 PM IST Reply

Central Depository Services (India) Limited IPO

Retail already 3.5 times on day 1
at this rate, expect 8-10 times
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10.1. AKH  Jun 20, 2017 5:56:42 AM IST

Central Depository Services (India) Limited IPO

It will be approx 15 x applications wise and if few investors keep their past trend by applying multiple lots then you will find 3.5x as 35x on last day
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9. VALUE INVESTOR  Jun 19, 2017 8:10:23 PM IST Reply

Central Depository Services (India) Limited IPO

Retail quota more than Q1B in this IPO, Good allotment chances here,
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8. VALUE INVESTOR  Jun 16, 2017 6:30:56 PM IST Reply

Tejas Networks Limited IPO

Final subscription updated by chittorgarh:
Day 3 - Jun 16, 2017 17:00 IST      

Q1B: 1.6200      
HNI: 0.1000      
Retail: 2.0800      

Overall: 1.2900 times
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8.1. PSR  Jun 16, 2017 6:33:22 PM IST

Tejas Networks Limited IPO

May not be correct figures.
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7. VALUE INVESTOR  Jun 16, 2017 3:12:43 PM IST Reply

Tejas Networks Limited IPO

Did not Apply... Looking at recent listing, volatile GMPs and low subscription, better to avoid and look at it after listing. Nowdays due to GMP manipulations, HNIs are also scared as there is no guaranteed listing gains based on GMP.
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6. VALUE INVESTOR  Jun 16, 2017 8:47:52 AM IST Reply

Tejas Networks Limited IPO

Wait till 2:45 pm to see subscription figures and then decide.
if Q1B and HNI response is good and Since retail is only 10%, If retail is oversubscribed by 4-5 times, then apply. Otherwise Skip. CDSL is only good IPO in the list of running IPOs followed by AU Financiers. Others wait till 2:40 PM if your ASBA closes at 3:00 PM or wait till 3:45 PM if your ASBA closes at 4:00 PM and decide accordingly.
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5. VALUE INVESTOR  Jun 12, 2017 11:24:34 AM IST Reply

Eris Lifesciences Limited IPO

Analysis of upcoming IPO of Eris Lifesciences has been loaded on www.sptulsian.com.
https://www.sptulsian.com/free-zone/ipo-analysis
IPO Analysis: Eris Lifesciences
Verdict: Excellent Eris

Eris Lifesciences is entering the primary market on Friday 16th June 2017, with an offer for sale (OFS) of up to 2.89 crore equity shares of Re. 1 each by PE firm ChrysCapital (77% of OFS), promoters and other shareholders in the price band of Rs. 600 to Rs. 603 per share. Representing 21% of the post issue paid-up share capital, issue will raise Rs. 1,741 crore at the upper end and close on Tuesday, 20th June. Listing is expected on 29th June.



Ahmedabad based Eris Lifesciences is a branded generic selling pharma company, focusing on lifestyle related disorders in the high margin therapeutic areas of cardiovascular, anti-diabetics, vitamins, gastro-enterology and anti-infectives. With 1,500 marketing representatives, share of metros and class 1 towns is 77% of its total revenue of Rs. 725 crore. With strong brands (80 mother brand groups) having superior lifecycle profile (73% brands in high growth segment against 31% for Indian pharma market), product portfolio is tilted towards chronic side (66% against 34% for Indian pharma market) with high prescription share of specialists and super specialists (96% against 62% for Indian pharma market).



Company’s financials have been simply excellent, to say the least. Over 4 years between FY13-17, revenue has clocked 17% CAGR, while EBITDA and PAT 35% and 43% CAGR respectively. FY17 financials growth was partly supported by 2 acquisitions – Rs 77 crore buy of 75% in Kinedex Healthcare catering to mobility related disorders (Dec 2016) with annual turnover of Rs. 83 crore, and Rs. 38 crore buy of Amay Pharma’s 40 brands and ApricaPharma focussed on cardiovascular and anti-diabetics segments (July 2016) clocking Rs. 19 crore in FY17 sales.



While FY17 revenue grew 21% YoY to Rs. 725 crore, EBITDA jumped 65% to Rs. 288 crore, as margin strengthened a whopping 1,040 basis point (yes 10.40%!) to 39.7% from FY16’s 29.3% on account of lower input costs (200 bps) and operational leverage kicking-in. Being debt free, there is hardly any interest outgo, with PBT of Rs. 264 crore, up 71% in FY17 and PAT at Rs. 241 crore, up 79% YoY, leading to an EPS of Rs. 17.61. Pursuant to Sept 2016 99:1 bonus issue and stock split from face value 10 to 1, current equity is still low at Rs. 13.75 crore.



While the company’s growth since its inception 10 years ago is marvellous, what is commendable is that it did not require any external funding to fuel the same. The PE transaction in Aug 2011 (which is exiting via the OFS) was a secondary sale by promoters. Creating a Rs. 8,000 crore plus company from scratch is no mean feat! PE firm ChrysCapital, holding 16.25% stake since 7 years, at effective cost of Rs. 87 per share, will make a complete exit, at an IRR of 39%.

As as 31-3-17, on net worth of Rs. 540 crore, company has a debt free balance sheet. Surplus cash and equivalents are Rs. 261 crore, translating into cash per share of Rs. 19. Currently, company has only 9 shareholders – 5 promoters with combined holding of 59.18%, whose stake, post IPO will shrink to 55.93%. Besides ChrysCapital’s 16.25%, 3 individuals own 24.57%, who will own 23.07% post IPO.



At Rs. 603 per share, company’s market cap will be Rs. 8,291 crore and EV Rs. 8,031 crore, which discounts historic FY17 earnings by EV/EBITDA and PE multiples of 28x and 34x respectively. Factoring in 20% growth for FY18, the upper end of the price band leads to EV/EBITDA multiple of 23x and PE multiple of 28x, which is slightly on the higher side. However, given the unique opportunity, the pricing appears reasonable, as peers are either delivering high growth but earning lower margins, or some are facing severe headwinds on their exports business.



Rarely one comes across business delivering 49% RoCE and 45% RoE, which is definitely unheard of in the pharma sector. Since Eris earns zero revenue from exports, it is immune from US FDA issues plaguing Indian pharma currently. This is a big distinguishing factor vis-à-vis peers. Moreover, it enjoys tax break (under Income Tax Act, which will continue post GST) till FY24 on its sole manufacturing facility at Guwahati, Assam, which accounts for 78% of sales. Balance 22% of sales is outsourced to contract manufacturers. Hence, effective tax rate for company was very low at 8.3% in FY17 and 12.7% in FY16.



Very strong fundamentals, expected healthy growth, cash rich status, no US FDA overhangs make this issue an ‘apply’, despite uneconomical pricing.



Disclosure: No Interest.
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5.1. AKH  Jun 12, 2017 11:11:13 PM IST

Eris Lifesciences Limited IPO

What about the promoter took away all the cash in the form of dividend in fy16 and invested remaining cash in mutual funds.

Company''s main business is pharma and promoters are investing cash surplus in mutual funds
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4. VALUE INVESTOR  May 18, 2017 10:09:08 AM IST Reply

Housing and Urban Development Corporation Ltd IPO

I think it will be not be up on their website. You will come to know only through Bank debit Only.
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3. VALUE INVESTOR  May 17, 2017 8:19:35 PM IST Reply

Housing and Urban Development Corporation Ltd IPO

https://alankit.com/HUDCO_Investor/HUDCO_IPO.aspx
Server Error in ''/HUDCO_Investor'' Application.

The resource cannot be found.

Description: HTTP 404. The resource you are looking for (or one of its dependencies) could have been removed, had its name changed, or is temporarily unavailable. Please review the following URL and make sure that it is spelled correctly.

Requested URL: /HUDCO_Investor/HUDCO_IPO.aspx
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2. VALUE INVESTOR  May 17, 2017 6:38:49 PM IST Reply

Housing and Urban Development Corporation Ltd IPO

data is still not uploaded, so no record is present for anyone. Once populated, everyone will have one record, only think to look for is alloted field whether ZERO or 200 shares :-)
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1. VALUE INVESTOR  May 9, 2017 12:38:58 PM IST Reply

S Chand and Company Ltd IPO

It is pendulum listing with swinging in both sides and stable at issue price of 670 Rs even
after heavy volumes.
Need to check closing rate.
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