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43. VALUE INVESTOR  Aug 29, 2016 3:04:00 PM IST Reply

RBL Bank Ltd IPO

0/4 Very sad!!!!
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42. VALUE INVESTOR  Aug 19, 2016 5:51:19 AM IST Reply

RBL Bank Ltd IPO

GMP 45-47 Rs
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41. VALUE INVESTOR  Aug 18, 2016 7:30:45 PM IST Reply

RBL Bank Ltd IPO

Analysis of upcoming IPO of RBL Bank has been loaded on LinkExternal Link

You can access it in the Free Zone in New Issue Analysis section (no login required). The section can be accessed at:
https://www.sptulsian.com/free_zone/new_issues_analysis

New issue (IPO) Analysis:
Really Built for the Long haul!

RBL Bank is entering the primary market on Friday 19th August 2016, to raise Rs. 833 crore, via a fresh issue of equity shares of Rs. 10 each and an offer for sale (OFS) of upto 1.69 crore equity shares, both in the price band of Rs. 224 to Rs. 225 per share. The issue size aggregates to Rs. 1,213 crore at the upper end of the price band, of which, OFS portion is Rs. 380 crore. Representing 14.90% of the post issue paid up equity share capital at the upper end, issue closes on Tuesday 23rd August, 2016.

Formerly known as Ratnakar Bank, RBL Bank is a new-generation private sector lender with a balance sheet size of over Rs. 39,000 crore and a network of 197 branches and 362 ATMs (31-3-16) across 16 Indian states, serving 19 lakh customers. Since FY12, post induction of new professional management, the bank has demonstrated an enviable growth rate of over 40%, on all counts, such as total business, earnings and profitability, which no other Indian bank can boast of (Yes Bank, Indusind and Kotak have all posted growth in twenties). RBL Bank’s balance sheet size swelled at 56% CAGR during FY12-16, total business by 51%, net interest income (NII) grew at 4 year CAGR of 44%, while net profit increased at 46% CAGR!

For FY16, bank’s total income grew 37% YoY to Rs. 3,235 crore, led by 41% YoY rise in interest income to Rs. 2,744 crore and 47% YoY growth in advances to Rs. 21,229 crore. Thanks to the declining cost of funds and 44% annual jump in low cost CASA (current account and savings account) deposits, RBL Bank’s net interest income (NII) jumped 47% in FY16 to Rs. 819 crore, leading to PAT of Rs. 292 crore. This resulted in FY16 EPS of Rs. 9.43, on equity of Rs. 324.73 crore, as of 31-3-16. Current equity (20-7-16) has expanded to Rs. 332.81 crore, post exercise of ESOPs. To attract and retain talent, bank has generously issued ESOPs, which covers nearly 67% of the total strength of 3,871 employees.

Despite such aggressive and industry-leading growth, bank’s asset quality has not been compromised. As of 31-3-16, net NPAs as a % to net advances stood at 0.59% and CAR (as per Basel III) stood at 12.94% (versus requirement of 9.63%). Its credit deposit ratio of 87% is also very healthy, when total business increased 44% during the year. Of the total 197 branches, 48% is in Maharashtra, which is considered to be a liability rich geography. On some parameters, although the bank’s current position is healthy, there does remains room for improvement such as FY16 net interest margin (NIM) was sub 3%, at 2.96%. CASA ratio of 18.6% of total deposits of Rs. 24.349 crore can move further north. Return ratios (1% RoA and 11.3% RoE) also lag some of the private sector peers.

The bank does not have any identifiable promoter. It counts marquee investors such as HDFC, HDFC Bank, International Finance Corp (IFC), Norwest Partners, Faering Cap, Samara Capital, TVS Capital, Aditya Birla PE, IDFC Investments among its shareholders. During Oct-Dec 2015, it raised Rs. 488 crore via pre IPO placement of 2.5 crore shares at Rs. 195 each, from Asian Development Bank, CDC among others. PE firm Beacon (holding 2.86% currently) is making a full exit via the OFS, while Gaja Capital (3.13%) and Burman family’s Elephant Cap are making part exit. Fresh issue proceeds will augment the capital base to not only help the bank lend further, but will also comply with Basel III norms (to be fully implement on 31-1-18).

As of 31-3-16, networth stood at Rs. 2,988 crore, indicating BVPS of Rs. 92. Assuming the historical 40% growth in topline, which the bank has consistently posted for the past 5 years, aided by fresh capital infusion of over Rs. 1,300 crore (Rs. 488 crore pre IPO placement and fresh issue proceeds of Rs. 833 crore), FY17 expected EPS is about Rs. 13.50 per share, on expanded equity of Rs. 370 crore. This leads to BVPS of Rs. 117, as of 31-3-17.

At Rs. 225 per share, bank’s market cap will be Rs. 8,321 crore. Based on the above estimates for the current year, PBV multiple works out to 1.9x, while PE multiple works out to 16.7 times, both of which are attractive, given the tremendous growth the bank has demonstrated, with sound balance sheet position. Bigger peers like Yes and Indusind are ruling at PBV multiples of 3 and above. Also, take the case of City Union Bank, with 525 branches, clocks total income of Rs. 3,350 crore annually and commands PBV multiple of 2.2x. On the other hand, RBL achieved that kind of total income with less than half the branches, at 197 and is being offered at PBV multiple of less than 2x. This highlights RBL’s efficiency and productivity.

Led by Vishwavir Ahuja, the bank has a strong management team in place, which has been instrumental for its growth. We have countless examples of what wonders professional and top quality management can do to a business, particularly so in the financial services space. Just in the Indian context, names like Aditya Puri (HDFC Bank), Rana Kapoor (Yes Bank), Romesh Sobti (Indusind Bank), V Vaidyanathan (Capital First) immediately come to the mind, who have shaped companies to becoming highly profitable and efficient.

To conclude, RBL Bank is a very attractive investment opportunity. Industry leading and consistent growth being demonstrated for the past 5 fiscals, despite challenging macros, coupled with strong management team at the helm, make this issue very unique, in the financials space. The pricing is also right, both from listing gains and medium term points of view. The issue is a subscribe.
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40. VALUE INVESTOR  Aug 9, 2016 10:35:55 AM IST Reply

Dilip Buildcon Ltd IPO

Got 1 out of 3 Applied.
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39. VALUE INVESTOR  Aug 3, 2016 2:28:19 PM IST Reply

Dilip Buildcon Ltd IPO

Better to skip this issue IMO and look for better buys in secondary market.
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38. VALUE INVESTOR  Aug 3, 2016 10:48:25 AM IST Reply

Advanced Enzyme Technologies Ltd IPO

After not being allotted in IPO.
I bought 160 shares yesterday and sold today and made profit of 16k
excluding brokerage. Will try to enter at lower levels if it goes.
For now, exited completely.
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37. VALUE INVESTOR  Aug 2, 2016 1:54:57 PM IST Reply

Advanced Enzyme Technologies Ltd IPO

Looks like heading UC Awesome.....Unexpected rally on second day!!!!
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36. VALUE INVESTOR  Aug 1, 2016 2:08:25 PM IST Reply

S P Apparels Ltd IPO

Better not to apply and keep your apparels on your body.
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36.1. RKS  Aug 1, 2016 2:18:33 PM IST
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36.2. mark bab  Aug 2, 2016 10:16:53 AM IST

S P Apparels Ltd IPO

good one buddy
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35. VALUE INVESTOR  Aug 1, 2016 2:06:38 PM IST Reply

Dilip Buildcon Ltd IPO

Not applying in this IPO as it is risky. Market condition and sentiments may also change at the time of listing which may result in discount listing. Please avoid based on your risk taking ability.
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34. VALUE INVESTOR  Aug 1, 2016 1:56:15 PM IST Reply

Advanced Enzyme Technologies Ltd IPO

It will not go up atleast for a week, mostly downside till retailers get panic and sell.
Upside will be limited next few trading sessions.
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33. VALUE INVESTOR  Jul 28, 2016 3:09:30 PM IST Reply

Advanced Enzyme Technologies Ltd IPO

No ALLOTMENT 0/4 SAD :-(
Status available on website now
http://aeipo.linkintime.co.in/
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32. VALUE INVESTOR  Jul 22, 2016 11:03:54 AM IST Reply

Advanced Enzyme Technologies Ltd IPO

GMP down from 400 Rs to 318 - 320 Rs due to global market volatility.
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31. VALUE INVESTOR  Jul 21, 2016 6:13:11 PM IST Reply

L&T Infotech Ltd IPO

Flat and muted listed as expected like L&T Finance
May go down after trapping more people at higher levels
good buy around 600-625 Rs as all IT stocks are down.
Waste IPO after postponing it so many times and pricing it higher.
Greedy management, Good lesson.
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31.1. Bharat Ahuja  Jul 22, 2016 1:46:29 AM IST

L&T Infotech Ltd IPO

Management did not learnt any lesson. Its poor retail who learnt lesson again after LTFin that this management is super greedy and wont leave a penny for retail.
Boycott their next ipo of L&T technology
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30. VALUE INVESTOR  Jul 19, 2016 6:00:31 PM IST Reply

L&T Infotech Ltd IPO

Got 1 out of 4, same as QUESS!!!! Relieved that i did not get alloted in the other accounts for the first time :-)
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29. VALUE INVESTOR  Jul 19, 2016 9:28:13 AM IST Reply

Advanced Enzyme Technologies Ltd IPO

Analysis of upcoming IPO of Advanced Enzyme Technologies has been loaded on LinkExternal Link

You can access it in the Free Zone in New Issue Analysis section (no login required). The section can be accessed at:
https://www.sptulsian.com/free_zone/new_issues_analysis

New issue (IPO) Analysis of Advanced Enzyme Technologies
Onward and Upward …

Advanced Enzyme Technologies is entering primary market on Wednesday 20th July, 2016, to raise Rs. 50 crore via fresh issue of equity shares of Rs. 10 each and an Offer For Sale (OFS) of upto 40.35 lakh equity shares, both in the price band of Rs. 880-896. Issue size aggregates to Rs. 411.5 crore at the upper end of the price band, of which, OFS portion is of Rs. 361.5 crore. Representing 20.6% of the post issue paid up capital at the upper end, issue closes on Friday 22nd July, 2016.

Advanced Enzyme Technologies is the largest enzyme company in India, with fermentation capacity of 360 cubic meters and has the second highest market share domestically, next only to the world''s largest enzyme company Novozymes. Having 6 manufacturing facilities (4 in India and 2 in California) and 4 R&D facilities (3 in India and 1 California), company (along with its subsidiary) has 13 patents and 172 trademarks registered in its name, with 4 patents and 14 trademarks pending before relevant authorities.

Advance Enzyme operates through two segments viz., Healthcare & Nutrition segment (79.72% of total revenue in FY16) and Bio-Processing (20.28% of total revenue in FY16). Geographically, US is important focus market for the company, which contributed nearly 55% of revenue in FY16, followed by India, accounting for 36% revenue, while rest is made up by Europe and other geographies. Company having global clientele of more than 700 customers, generated nearly 42% of total revenue from top 10 clients.

Having presented the background of the company, let us take a look at its financial performance.

In FY16, company’s total income rose to Rs. 295 crore, from Rs. 224 crore in FY15, representing growth of 32% over FY15. EBITDA rose to Rs. 139 crore from Rs. 92 crore in FY15, with margin expanding to 47.2% from 41% seen in FY15. This resulted in PAT (after minority interest) of Rs. 78.4 crore, against Rs. 50.1 crore seen in FY15, registering stupendous growth of 56.6%, leading to an EPS of Rs. 36.03 for FY16.

Over the past 5 years (FY11-FY16), company’s total income has grown at a CAGR of 14%, while PAT has registered healthy CAGR of 23.9.

As on 31-03-2016, equity stood at Rs. 21.77 crore, while Net Worth was at Rs. 278.73 crore. Company has been focused on de-leveraging its balance-sheet consistently, and as a result, consolidated debt has come down from Rs. 175 crore in FY11 to Rs. 69 crore as on 31-03-2016, representing healthy cash flow generation by the company. Currently it has Cash & Cash Equivalents of Rs. 26 crore and Inventory of Rs. 60 crore. Promoters are holding 80.53% stake in the company, which will reduce to 66.5% post IPO.

At the upper end of the price band, company is seeking market cap of Rs. 2,000 crore and EV of Rs. 2,043 crores. This leads to EV/EBITDA multiple of 15x and 12x for FY16 and FY17 respectively, and PE multiple of 25x and 21x for FY16 and FY17 respectively. Also, let us re-iterate here that company has robust EBITDA margin of 47.2% and delivered Return of Net Worth of 28.14% in FY16 with lean balance-sheet.

In the absence of directly listed peer domestically, we compared Advanced Enzymes with Novozymes, world leader in industrial enzymes with market share of 48%, which is currently trading at PE multiple of 33x. This is at 57% premium to PE multiple of Advanced Enzyme Technologies (at the upper end of the price band). On a comparative basis, with premium for leadership status and scale of operations having given to Novozymes, the valuations of Advanced Enzymes is seen reasonable, given good return ratios and better margins, coupled with lean balance-sheet.

Going ahead, global enzyme demand is expected to be led by speciality enzymes, including diagnostic, research & biotechnology enzymes, bio-catalysts and increasing penetration of enzymes into their potential applications in developing countries. Also, company has deep roots in US, the largest consumer of enzymes in the world. Also, the wide spectrum of user industry including human health care and nutrition, animal nutrition, baking, fruit & vegetable processing, brewing & malting, grain processing, protein modification, dairy processing, textile, paper etc gives comfort on earnings visibility and demand growth.

To conclude, issue is seen reasonably priced, with scope for capital appreciation and listing gains seen as well valued attractively and investment is advised.

Disclosure: No Interest
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28. VALUE INVESTOR  Jul 19, 2016 9:14:43 AM IST Reply
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27. VALUE INVESTOR  Jul 18, 2016 8:51:54 PM IST Reply

L&T Infotech Ltd IPO

LinkExternal Link

Some good news to cheer before listing !!!!!
L&T Infotech bags contract for Project Insight
The project, worth about Rs 1,000 crore, will use technology to allow the government to collate all information available with the I-T department and profile people using Permanent Account Number (PAN) detail

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26. VALUE INVESTOR  Jul 16, 2016 10:17:59 AM IST Reply

L&T Infotech Ltd IPO

Some people who have not applied simply floating with messages of L&T infotech.

Bhai log, sabar karo, pehele allotment to anne do, phir listing ka sochenge.
Aur, phir jin logene apply hi nahi kiya, shanti se raho, discount listing hoga to hum dekh lege. Chinta maat karo, 20 si share hain na, koi 100 share toh nahi hain!!!!
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25. VALUE INVESTOR  Jul 15, 2016 9:26:07 AM IST Reply

Quess Corp Ltd IPO

MGL is more like precision camshaft, you money will
go into gestation period for long and it will get stuck.
Better to invest in stock which fetch you money fast and at the
sametime take advantage of bullish market. Just my opinion.
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25.1. gamble  Jul 15, 2016 10:18:58 AM IST

Quess Corp Ltd IPO

Pcl
NIi 0.73x
Qib 2.62x

Mgl
Nii 191x
Qib 72x


Do u see any difference??

Disc:

I hv pre cam @150 @140 @130 waiting for buy at 120,110,100...
Mgl @506 ...waiting for buy 490,480,470....


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25.2. VALUE INVESTOR  Jul 15, 2016 1:40:27 PM IST

Quess Corp Ltd IPO

gamble ji, just because you bought MGL at 502, you are asking to buy MGL.
Its your choice.

I had purchased again today quess 50@481, it is doing well at 494.
so i have 100@469, after i had sold allotted 45@487 on listing day.

I had confidence in MGL and did not sell on listing day and sold last week 105@506. after which it went to 492 before recovering to 490 today.

All i am saying is there are some stocks like dominos pizza if you remember, it was issued at 135 Rs listed at 192 and i kept watching it going to 1200 Rs without entering thinking it is too high a price for me to enter. But it went up daily.

All i am saying is if you are confident on a stock hold it. I never built a portfolio and always been a flipper mostly in primary market as i have a full time job and can''t spend time on this. But now, i have decided to keep some stocks for longterm and build one.

Some turn out to be winners and some turn out to be losers, but you need to balance and ensure that you are in positive in terms of money invested, otherwise you will lose your sleep and peace over it.

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25.3. gamble  Jul 15, 2016 2:29:43 PM IST

Quess Corp Ltd IPO

Yes u r thinking that way.it is okay btw u should have proud of ur own way of thinking...yes i choose mgl over quess because i found mgl can correct less compare to quess,,,i do not bother if my holding goes down,i just add it on every fall ...i will do same with mgl if i got chance at lower level...

Everyone have to confident for their buying/holding stock...if u believe that it can go up then it will...:)
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24. VALUE INVESTOR  Jul 14, 2016 8:17:00 PM IST Reply

Quess Corp Ltd IPO

Quess will be better performer compared to MGL.
Where there are more delivery volumes, chances of shares going up are very less
are floating shares are less!!!!
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24.1. gamble  Jul 14, 2016 8:49:31 PM IST

Quess Corp Ltd IPO

May b ur right..quess can show better gain...in short(which i donno believe)

But

Quess corp is worth to buy at this rate?
Or
Mgl is worth to buy at this rate?



Ask urself!!
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24.2. Eagleye  Jul 27, 2016 10:14:04 AM IST

Quess Corp Ltd IPO

I Completely agree
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