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24. bangalore king  May 3, 2016 10:20:19 AM IST Reply

Parag Milk Foods Ltd IPO

Parag Milk Foods (PMF) is an integrated dairy player with strong brands (Go,
Gowardhan, Pride of Cows and Topp UP) with 57% revenues coming from the
value‐added products and having a 35% market share in high growth Cheese
segment. PMF is expanding processing capacity by 70%, by adding capacity for
Whey powder, Cheese, Paneer, UHT milk and Curd for sustaining strong growth in
the coming few years. Sustained 15‐20% sales growth, debt repayment of Rs1bn
and improvement in cash flows will enable the company achieve 30% PAT CAGR
over FY16‐18.

The stock at 37x FY16E would surely offer ''LIMITED'' listing gains.
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23. bangalore king  May 2, 2016 5:39:20 PM IST Reply

Parag Milk Foods Ltd IPO

At the lower price band of Rs 220 per equity share of Rs 10 face value, the P/E works out to 43.4 times the annualized EPS of Rs 5.1(on post-IPO equity) for the nine months ended December 2015 and the P/E works out to 71.2 times the EPS of Rs 3.1 (on post-IPO equity) for the financial year ended March 2015 . At the upper band of Rs 227, P/E works out to 44.6 times the annualized EPS of Rs 5.1 (on post-IPO equity) for the nine months ended December 2015 and the P/E works out to 73.1 times the EPS of Rs 3.1 (on post-IPO equity) for the financial year ended March 2015.

Comparable companies such as Hatsun Agro Product, Heritage Foods and Prabhat Diary are trading at P/E of 47.89x, 23.59x and 50.2x on the annualized EPS for the nine months ended December 2015 and 126x, 41.5x and 52x on the EPS for the financial year ended March 2015.
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23.1. Eagleye  May 2, 2016 5:44:50 PM IST

Parag Milk Foods Ltd IPO

So, what is the fair value of Parag as per your calculations ?
(@227 issue price)
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23.2. bangalore king  May 2, 2016 5:59:11 PM IST

Parag Milk Foods Ltd IPO

hi Eagleye, I see not much is left on table.. at par.. may be retail discount is all we have.
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23.3. C D JOSHI  May 2, 2016 8:00:39 PM IST

Parag Milk Foods Ltd IPO

hii eagle eye...as per SCANNER(Refer comment 40) 227 price is deduction of 450cr/19,850,000(ofs).. But fresh equity shares is 350 cr...that means 750cr - 325 cr=425 n not 450cr shares...which comes to the price of 214Rs....Right??? If i m wrong let me know buddy...
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22. bangalore king  May 1, 2016 2:48:17 PM IST Reply

Parag Milk Foods Ltd IPO

On the valuation front, company at higher price band is available at P/E of 45x on post issue as we annualised 9MFY16 earnings; whereas Prabhat Dairy is currently trading at P/E of 46.6x on TTM basis with EPS of Rs 2.4. In our analysis, we see that company looks costly against other peers except Hatsun Agro which is trading at a PE of 57 and Mcap/ sales of 1.5x its trailing four quarters'' revenues.

For retail investors, the sweet spot will be the discount of Rs 12 which will provide instant listing gains. Looking at the company’s fundamentals and valuation we would recommend a long-term perspective to subscribe for this IPO.
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22.1. NeoTrade  May 1, 2016 3:12:54 PM IST
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22.2. Chem cho  May 2, 2016 5:33:56 AM IST

Parag Milk Foods Ltd IPO

Wait for todays issue ujjain issue to close . and you will see grey market premium after thyroid allotment
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21. bangalore king  Apr 30, 2016 6:52:50 PM IST Reply

Parag Milk Foods Ltd IPO

Thyrocare Techno :- The premiums were at Rs420/466 but came down to 180/185 but after good response to the issue it has touched 220/225. Minimum application rates also touched Rs1300/1350 but came down to 800/850 after the issue getting 73 times subscription. Premiums could be highly volatile on listing.

Ujjivan Fin :- As Thyrocare subscription has been closed, now the market players have
turned to Ujjivan. It may repeat history of Equitas Holdings as the premiums crumbled to 30/32 but have bounced back to 45/48. The application rates have come down from 1200/1300 to 850/ 900

Parag Milk Foods :- It is lacking fancy as investors are interested in Thyrocare and Ujjivan. The preimums have come down to 25/27 from 40/42. The application rates have also come down to 550/600 from 1050/1100. It may get response once Ujjivan''s issue is closed.
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20. bangalore king  Apr 30, 2016 5:03:12 PM IST Reply

Parag Milk Foods Ltd IPO

Parag Milk Foods is one of the leading manufacturers and marketers of dairy-based branded foods in India, with an integrated business model, manufacturing a diverse range of products including cheese, ghee (clarified butter), fresh milk, whey proteins, paneer, curd, yoghurt, milk powders and dairy based beverages targeting a wide range of consumer groups through several brands. The company’s brands are one of its key strengths and that its customers, distributors, stockists and members of the financial community associate its brands with trusted and superior quality products.

On the concern side, the company’s operations are dependent on the supply of large amounts of cow’s raw milk, and its inability to procure adequate amounts of good quality raw milk, at competitive prices, could impact business and financial condition. The company is dependent on a number of key personnel, including its senior management for day to day operations.

The issue has been offered in a price band of Rs 220-427 per equity share. The aggregate size of the offer is around Rs 745.01 crore to Rs 768.72 crore based on lower and upper price band respectively. Minimum application is to be made for 65 shares and in multiples thereon, thereafter. On performance front, on a consolidated basis the company has posted turnover of Rs 900.54 crore in FY12, Rs 927.15 crore in FY13, Rs 1089.50 crore in FY14 and Rs 1440.52 crore in FY15, while it has registered a net profit of Rs 18.90 crore in FY12, Rs 20.77 crore in FY13, Rs 15.97 crore in FY14 and Rs 25.97 crore in FY15. For first nine months ended December 31, 2015, it has earned net profit of Rs 31.92 crore on a turnover of Rs 1231.19 crore. If one annualized these earnings and attribute to the fully diluted equity post IPO then asking price is at a P/E of 44 plus at the higher price band. The company constantly focuses on research and development to distinguish it from its competitors to enable itself to introduce new products based on consumer preferences and demand. It proposes to set up a research and development centre at its Manchar facility to develop new products and processes and a technology centre at its Subsidiary for training and development activities and focus on animal husbandry. The company intends to increase the share of its value-added product portfolio by focusing on health and nutrition to cater to evolving consumer trends. Going further, the company can increase its margins by focussing on increasing sales of its value-added products.
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19. bangalore king  Apr 27, 2016 11:31:06 AM IST Reply

Parag Milk Foods Ltd IPO

Parag''s consolidated revenues and operating profit have little over doubled to Rs 1438.7 crore and Rs 108 crore respectively in the five years ended FY15. The operating margin, which has remained fairly stagnant at 7.5%, is likely to improve in the quarters ahead - thanks to new players like ITC and M&M. This implies increase in its spend on advertising that currently stands at 2.5% of the revenues.

The issue values Parag at 44 times of its FY16 annualised earning per share of Rs 5.12 per share. The company''s valuation of Rs 2000 crore also stands at 1.2 times of its annualised revenues for FY16. These valuations are fair when compared to its larger listed peer Hatsun Agro Products which is trading at a PE of 57 and at a market cap of 1.5 times its trailing four quarters revenues. Retail investors can consider investing in the issue to partake in the growth of the dairy industry - thanks to the addition of new corporate players and increase in per capita consumption of dairy products.
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19.1. Anurag kumar singhal  Apr 27, 2016 11:39:08 AM IST

Parag Milk Foods Ltd IPO

Hello Team and friends.. what are chances to get an allotment for thyrocare if apply for 3 acct.. 2 presell and 1 for risk in thyrocare
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18. bangalore king  Apr 26, 2016 1:38:10 PM IST Reply

Ujjivan Financial Services Ltd IPO

Ujjivan Financial Services''s annualized EPS for the nine-month FY2016 on post-issue equity works out to Rs 13.89. At the price band of Rs 207 to Rs 210, P/E works out to 14.9 to 15.1 times.

The book value of Ujjivan Financial Services is Rs 99.7. Post-issue, the book value works out to Rs 128.26 at the issue price of 207 and Rs 128.51 at the issue price of Rs 210. P/BV at both the bands works out to 1.6 times.

Among the peers, the recently listed Equitas Holdings is trading at P/BV of 2.3 (Price: Rs 138, Consolidated BV: Rs 60). The average ROA of Equitas Holdings as on March 2015 stood higher at 2.96%, while the average ROA for Ujjivan as on March 2015 stood at 2.5%. The average loan book of Equitas as on December 2015 stood at Rs 5505 crore, whereas the loan book of Ujjivan stood at Rs 4589 crore as on December 2015. The net NPA of Equitas as on December 2015 stood at 0.97%, whereas that of Ujjivan stood at 0.04%. Equitas had higher branch network of 539 branches as on December 2015, while Ujjivan operates with 470 branches. Equitas is well diversified offering a range of financial products such as microfinance, vehicle finance, MSE finance and housing finance, whereas Ujjivan has 87.5% of loan book in the microfinance group lending segment.
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17. bangalore king  Apr 23, 2016 10:04:50 PM IST Reply

Parag Milk Foods Ltd IPO

Thyrocare -

Subscription :- it may get 2-2.5 times subscription in retail segment.
Discovery price :- It could be at Rs446.
Listing :- Listing may take place on May 9 around 600+ and may go up to 640/650 on good market situation.

Ujjivan -

Subscription :- It may get 2-3 times subscription in retail segment, while much higher subscription in QIB and HNI segments.
Discovery price :- Discovery price could be around Rs210.
Allotment :- May be on May 9.
Listing :- May be on May 11 around Rs250/26 and Rs270/275 with support of good market conditions


GREY MARKET MOVEMENT

Equitas listing encourages deals in other two issues
Thyrocare issue premiums came down from Rs 225 to Rs190
Ujjivan premiums crumble from 60 to 35/37
Application rates in both issues came down in Sakarbazaar

Thyrocare :- Last week the premiums were at 225 which has come down to 190. The minimum application rates have also come down from Rs1200/1500 to Rs970 to Rs1000.

Ujjivan Fin :-Mircro Finance Company''s premiums were at Rs44/45 which went up to 58/60 but have come down to 35/37. Minimum application rates were at 1150/1200 but havecome
down to 1100.

It is believed that both the issues will be highly volatile at time of opening and listing.
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17.1. ranjan patel  Apr 24, 2016 12:08:33 AM IST

Parag Milk Foods Ltd IPO

should we fill the ipo of ujivan and thyrocare
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16. bangalore king  Apr 23, 2016 11:02:18 AM IST Reply

Thyrocare Technologies Ltd IPO

Thyrocare Technologie is one of the leading pan-India diagnostic chains and conduct an array of medical diagnostic tests and profiles of tests that helps in early detection and management of disorders and diseases. They are India''s first fully automated diagnostic laboratory having its strong presence in more than 2000 cities / towns in India and internationally. It is currently focusing its efforts on new test offerings based on the clinical application of mass spectrometry.

On the concern side, the company’s pathology testing services are performed at the CPL located in Navi Mumbai and at the RPLs located in New Delhi, Coimbatore, Hyderabad and Kolkata. Any disruption in operations of any of its laboratories could reduce or restrict sales and materially and adversely affect its business, financial condition, cash flows and results of operations. Moreover, the company depends substantially on its hub-and-spoke business model complemented by the RPLs. Any delay or interruption in the transportation of samples to the CPL or the RPLs could adversely impact the effectiveness of the company’s business model.

The issue has been offered in a price band of Rs 420-446 per equity share. The aggregate size of the offer is around Rs 451.28 crore to Rs 479.21 crore based on lower and upper price band respectively. Minimum application is to be made for 33 shares and in multiples thereon, thereafter. On performance front, the company has posted a top line of Rs 139.99 crore in FY13, Rs 156.56 crore in FY14 and Rs 187.05 crore in FY15, while the company has reported a net profit of Rs 56.82 crore in FY13, Rs 46.16 crore in FY14 and Rs 48.45 crore in FY15. For first nine months ended on December 31, 2015 of current fiscal, the company has registered a net profit of Rs 30.49 crore on a total income of Rs 117.03 crore. If one attributes latest earnings on annualized basis on the current paid up equity capital of Rs 53.72 crore, then the asking price is at a P/E of around 45. The company intends to strengthen and grow its coverage of regions across India through its network of RPLs and authorized service providers. By expanding this network, the company plans to simultaneously increase its customer base, generate higher volumes of samples for processing, improve its turnaround time and optimize its logistics costs. In order to sustain its future growth and client base, it is also focused on increasing the number and quality of the authorized service providers in the upcoming Fiscals. It intends to develop long-term relationships with authorized service providers with the goal of maintaining consistency of quality of services across its network and reducing churn. Going forward, in a bid to bolster brand visibility and increase the accessibility of its services, the company intends to use the expanded network of RPLs and authorized service providers. The company shall continue to focus on growth of its wellness and preventive offerings and expansion of its test offering and offers a good value despite compared to peers.
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15. bangalore king  Apr 20, 2016 10:50:07 PM IST Reply

Ujjivan Financial Services Ltd IPO

Ujjivan Financial Services Ltd, the micro-lender which has won a provisional license to be a small finance bank (SFB), is expected to launch its initial public offering (IPO) on 28 April to raise around up to Rs.850-900 crore, three people familiar with the development said.

The price band for the issue is likely to be set between Rs. 207-Rs.210 per share, they said. The details of the IPO, for which it won regulatory approval on 25 February, are likely to be announced at a press meet on Thursday.

Of the total issue size, the company will raise about Rs.350 crore in fresh capital, while existing shareholders will sell 24.96 million shares, with an estimated worth of Rs.514-524 crore.

Even before the IPO opens, Ujjivan’s shares were quoting at a premium of Rs.35-40 per share in the grey market, dealers said.

An email sent to the company’s public relations agency on Wednesday remained unanswered.

On 20 February, Mint reported that the Bengaluru-based SFB-licensee had raised Rs.312.4 crore by issuing shares to a clutch of investors in a private placement round ahead of its planned IPO. The sale transaction valued the firm about Rs.2,150 crore.

HDFC Standard Life Insurance Co. Ltd, Shriram Life Insurance Co. Ltd, Bajaj Allianz General Insurance Co. Ltd, Kotak Mahindra Old Mutual Life Insurance Co. Ltd and mutual fund Sundaram Asset Management Co. Ltd were among the investors that bought Ujjivan’s shares in the private placement to institutional investors.

Ujjivan will have to ensure that overseas shareholding in the company remains at or below 49% to meet one of the conditions set by the Reserve Bank of India (RBI) to become a small finance bank. This means that foreign investors cannot participate in Ujjivan’s public issue. Foreigners owned 90.57% in the company at the time of filing its draft proposal, Ujjivan said in its draft red herring prospectus.

Earlier this month, shares of Chennai-based microfinance lender Equitas was subscribed more than 17 times. The company raised a little over Rs.1,500 crore from the public issue.

Equitas will debut on the bourses on Tuesday. Its shares, which were issued at Rs.109-110 per share, were quoting a premium of Rs.20-22 per share in the grey market, two dealers said, requesting anonymity.
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14. bangalore king  Apr 14, 2016 11:17:01 PM IST Reply

Thyrocare Technologies Ltd IPO

GREY MARKET MOVEMENT

Thyrocare premiums and application rates spurt from beginning
Equitas Holding''s form rate touched Rs 2300 and premium 21/22
Ujjivan IPO will also witness fancy in grey market

Equitas Holdings :- On the last day the premium levels touched Rs18/19 and form rates
touched Rs2300. However, after closing the premiums have increased nominally to 20/21.

Thyrocare Techno :- Despite no formal announcement, the grey market is highly volatile.
Issue will open on April 27 and close on April 29 with offer price of Rs575-595 and bid lot size of 25. The premiums touched Rs175 and application form rates touched Rs 1050 which has increased to Rs180-185 and Rs1100-1200 respectively. Market will become active on Monday following four holidays.

Ujjivan Fin :- the issue may witness fancy and premium and form rates may remain highly
volatile.
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14.1. GRAVITA PAROL  Apr 14, 2016 11:26:12 PM IST
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14.2. GRAVITA PAROL  Apr 14, 2016 11:26:44 PM IST
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14.3. NeoTrade  Apr 15, 2016 11:48:23 AM IST

Thyrocare Technologies Ltd IPO

Indicated offer price for Thyro is absolutely wrong IMO!
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13. bangalore king  Apr 11, 2016 8:15:14 PM IST Reply

Equitas Holdings Limited IPO

L&T Infotech -

When contacted, Deepak Morada, VP, L&T told Business Standard: "The reason we have withdrawn the IPO is becaof market conditions. And we want to relook at our pricing. The IT industry undergoes changes on a quarterly basis and it is only fair to investors, in any issue, that they take a call on the financial performance of the most recent quarter."

When asked by when L&T will file a new DRHP with Sebi, Morada said: "At this point I cannot comment. But there is a possibility of we approaching the markets again." On the offer structure and the possibility of it changing in future, he said: "L&T''s stake in the company will come down. How much will it be is yet to be decided. It''s more about price discovery."

The company refused to comment on the changes in offer structure, some of the industry sources said that in the last one quarter the IT services sector has been looking good, which may have made the promoters to relook at the pricing of the IPO. "I think it''s more about price discovery," said a source from the banking industry.
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13.1. Khemka  Apr 11, 2016 8:40:19 PM IST

Equitas Holdings Limited IPO

Seems they want ipo prices more steeply after imfibeam successfully high pricing issues, greedily planned,retailers are so fools that they can grabbed at any prices like 900/1000/1100/1200 even 1300 not ruled out , so think cooling getting time after all...
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13.2. VALUE INVESTOR  Apr 11, 2016 9:00:01 PM IST

Equitas Holdings Limited IPO

L&T infotech don''t want to come out with IPO, everytime they give some stupid
reason for withdrawing their IPO after filing. Market will anyhow do the price discovery
if they fix the same. Nobody is waiting on one leg to grab their shares whatever the price may be.
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12. bangalore king  Apr 9, 2016 9:53:11 PM IST Reply

Equitas Holdings Limited IPO

L&T infotech if at all will have shareholder quota for L&T , then cut off date for that was -

September 28, 2015 !!

That was date of DRHP filled with SEBI.
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12.1. Eagleye  Apr 10, 2016 2:10:29 AM IST

Equitas Holdings Limited IPO

L&T shareholders will not get any preferential treatment for L&T Infotech IPO
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11. bangalore king  Apr 9, 2016 4:40:44 PM IST Reply

Equitas Holdings Limited IPO

Equitas kaa baap Ujjivan Fin .:-

This is also a NBFC connected with micro lending sector.
It has received a small bank license from RBI. Established in 2005, the fundamentals
of this bank are even better than
Equitas. In 2015, the company reported 72%
growth in income and 30% in net profit. The Net
Interest Income was up by 51%. The Gross NPA
is just 0.13%, and Net NPA is also 0.13%. The
debt equity ratio is 4.15 times. The company
aims to raise Rs. 800 crores through the issue.
If reasonably priced, Ujjivan''s IPO can seen
even better fancy than Equitas !
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11.1. Eagleye  Apr 9, 2016 5:33:14 PM IST

Equitas Holdings Limited IPO

Equitas Holdings Ltd. (refer DRHP pages 126-129)
EPS 4.47
NAV 43.54
RONW 9.11

Ujjivan Financial Services Ltd. (refer DRHP pages 80 & 81)
EPS 10.62
NAV 81.76
RONW 10.29

* all data for both companies is as of year ended 31st March 2015
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11.2. Septa  Apr 9, 2016 11:08:46 PM IST

Equitas Holdings Limited IPO

i agree also with successful listing of equitas ujjivan will be market darling also this issue is small so operator can corner this issue easily then equitas
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10. bangalore king  Apr 8, 2016 11:06:18 AM IST Reply

Equitas Holdings Limited IPO

The success of the Equitas IPO throws up some interesting learnings:

1) Who needs FIIs?

Under the banking licensee requirements, the company had to bring down foreign shareholding to under 49%. This regulatory requirement restricted foreign institutional investors (FIIs) from participating in the IPO.

Foreign shareholding in Equitas stood at 92.64% before the IPO.

Never before an IPO deal of Rs.2,176 crore had been sold only to domestic investors and naturally bankers to the issuance were jittery.

However, at the close of the IPO on Thursday, the institutional investors’ category was subscribed nearly 15 times, while retail and high net-worth individuals categories were subscribed 1.4 times and 57.3 times, respectively, according to data from stock exchanges. Clearly, there was no shortage of demand for the Equitas share sale.

Since last year, domestic institutional investors (DIIs), especially mutual funds that are flush with cash, have stepped up their participation in IPOs.

In December, Mint had reported that of the 21 IPOs that have hit the capital markets this year, DIIs bought more than half the anchor book in at least 12 public issues. The anchor book is that portion of the IPO that bankers can allot to institutional investors on a discretionary basis.

No one missed the FIIs.

2) Domestic investors don’t shy away from untested models

One of the concerns about the Equitas offer was that while the company showed exceptional performance as a microfinance institution, it was to soon become a bank.

Unlike a non-banking finance company that it is, it can no longer depend on financing such as term loans from banks and will need to take deposits from customers (apart from other forms of financing), a completely new way of doing business for the company.

The transition is expected to hurt the company’s profitability in the near to medium term.

However, this change in the way of doing business did not deter domestic investors. The fact that the company had undergone the rigorous scrutiny of the Reserve Bank of India to win the licence and the case study of Bandhan’s transformation from a microfinance institution to a universal bank gave investors the confidence to invest in Equitas.

3) Who’s the boss?

One question that is always on the minds of investors, especially domestic ones, looking at IPOs is: How much skin in the game does the promoter have?

Most listed companies in India have promoter holdings of at least around 50%.

But P.N. Vasudevan, who founded Equitas, has just around 3% stake in the company. In fact, he is not even recognized as the promoter of the company.

“Our company is a professionally managed company and does not have an identifiable promoter...,” reads a line displayed prominently on the front page of the company’s prospectus.

The impressive track record of the management and the high levels of corporate governance, thanks to a large of international investors in the company, must have helped assuage investor concerns about there being no promoter in the company.

Domestic investors seem to be warming up to the idea of professional, management-driven corporations. This change in perception is bound to help several companies, especially new-age tech companies that are majority owned by private equity and venture capital funds, when they turn up for listings.

4) Valuation is king

The bargaining power of DIIs, in the absence of FIIs, helped bring the valuation substantially lower than what the company was able to garner in past private funding rounds.

At the upper band of the offer price, Rs.110, the issue was priced at a diluted price to book value of 1.8 times.

Brokerages gave their thumbs up to the valuation of the offer.

“We believe the issue is attractively priced looking at the growth options the company offers in the long run,” said Angel Broking in its research note.

“The IPO looks attractive and the company’s growth potential looks promising at this stage. The IPO is priced at an approx. 50% discount to SKS Microfinance,” said Religare Capital Markets Ltd in its report.
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9. bangalore king  Apr 7, 2016 10:44:11 PM IST Reply

Equitas Holdings Limited IPO

The IPO was also biggest since InterGlobe Aviation''s Rs 3,000-crore IPO last October. P N Vasudevan, managing director, Equitas Holdings told T E Narasimhan that subscription numbers were good and he is confident on commencing SFB before the April 2017 deadline. He speaks on opportunities and challenges.

Are you happy with the response (for IPO)?
Subscription was 17 times, which is a pretty good number. IPO was one of the conditions for the small finance bank (SFB) licence. Now we have to work on the other conditions to get ready for the final application for licence.

Is it regulation pressure which made you to go for an IPO or you really wanted to go for an IPO?
We had foreign holding of 93 per cent, which has to come below 49 per cent as per the regulation and for that size it needed an IPO.

What will be the next step for Equitas towards SFB?
Now we have to merge the three subsidiaries including Equitas Micro Finance Ltd, Equitas Finance Ltd and Equitas Housing Ltd. Once we get the court''s nod, we will work on IT related issues.

We have time till April 2017 to commence the operations, we should be in line with that.

What is your target for the SFB? What are the challenges you foresee?
I don''t want to give any numbers and forward looking statements. On the assets side we are very well diversified, which will continue with additional one or two products. Otherwise we have complete credit products in the offering.

A big challenge would be setting up the liability team, since we need to mobilise deposits. The more we can mobilise retail deposist, more the benefits in terms of cost of funds.

Analysts say that a big challenge would be the current product offerings and geography expansion. What is your view?
We are fairly well diversified. Around 53 per cent is from microvinance, 25 per cent used commercial vehicles, MSME is around 17 per cent and affordable housing five per cent. We operate in 11 states and are comfortable with that.

What will be the new SFB''s focus?
SFB gives us an opportunity to offer liability services to the retail clients. As we out to do that, there are lot of segments of the population which are not finding easy and convenient and comfortable to do banking for low value transactions. While we will do many other things but one of the things we will focus is on how to give a comfortable and convenient banking process for low value transactions.
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8. bangalore king  Apr 7, 2016 3:26:45 PM IST Reply

Equitas Holdings Limited IPO

In case any of you wondering why QIB is low.. reason is foreign investors can''t apply here.. this IPO was to reduce FII exposure.
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7. bangalore king  Apr 4, 2016 3:26:24 PM IST Reply

Equitas Holdings Limited IPO

Strengths

The company follows strict corporate governance standards and is committed to transparent operations and has been able to attract many reputed investors.

Comprehensive understanding and successful track record with underserved customer segment offering significant growth opportunities. In addition, the company''s customer-oriented product structure and operations enable to develop customer loyalty and maintain asquality.

Standardized operating procedures and efficient of technology resulting in effective risk management and improved efficiencies.

Strong branch network of 539 branches across India. The microfinance arm of the company is the fifth largest microfinance company in India.

Experienced management and strong employee engagement with employee base of 8000 staff.

Equitas is among the ten winners of SFB license from the RBI. On the asside, conversion to a small bank could help MFIs/HFCs to diversify their product mix, which is restricted at present.

Weaknesses

The conversion to SFB poses challenges such as increase in overall funding requirement to meet CRR and SLR requirements. Further, access to institutional funding sources may be limited and regulatory restrictions on interbank lending could limit the funding availability from banks.

The negative carry-on CRR and SLR is likely to bring down the net interest margins of the SFB and higher operating expenses on account of introduction of new products, cost of deposit mobilization, recruitment and trainings, upgradation of systems and branch infrastructure and could lead to losses/single digit return on equity in initial years.

Regulations related to SFBs are still evolving.

The company does not have operating history in the banking business and is subject to all of the business risks and uncertainties associated with setting up a new business in general, and with banking operations in particular.

Market acceptance of the Equitas brand is critical to banking business.

Loans to the underserved sections of the population involve relatively higher risk and high operational costs.

The business is heavily dependent on operations in the southern states of India, particularly the state of Tamil Nadu, and any adverse changes in the conditions affecting these markets can adversely impact our business, financial condition and results of operations.

Valuation

Equitas Holdings''s annualized consolidated EPS for 9M FY 2016 on post-issue equity works out to Rs 4.79. At the price band of Rs 109 to Rs 110 P/E works out to 22.8 to 23 times.

Current consolidated book value of Equitas Holding is Rs 48. Post-issue consolidated Book Value works out to Rs 59.92 at issue price of 109 and Rs 60.04 at issue price of Rs 110. P/BV at both the bands works out to be 1.8 times.

Equitas will be the first proposed SFB to be listed and hence no comparable listed player is available. There are nine other players who have won in-principle approval to up SFBs and may get listed in future.
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6. bangalore king  Apr 2, 2016 7:04:28 PM IST Reply

Equitas Holdings Limited IPO

Subscription :- Retail segment may witness 1-1.50 times subscription and full and firm allotment
is expected.
Discovery price :- Discovery price could be Rs110.
Allotment-Refund :- Allotment/refund could be around April 16.
Listing :- Due to three public holidays in next week, the listing could be on April 20. It could get
listed at premium of 10% at price of Rs120/125.

In Equitas Holdings, premium and application forms are rates increasing
Infibeam IPO premium improves marginally still all depends on discovery price

Equitas Holdings :- Last week Equitas Holdings IPO announcement created vibrancy
in the grey market. The premium rates were around Rs7/8. Application form rates were
Rs700. But then after both rates started going up to reach Rs15/16 and then 13/15. The
application form rates touched Rs1500 and are now at Rs1300/1400.
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6.1. Starsipo  Apr 2, 2016 7:31:30 PM IST

Equitas Holdings Limited IPO

Perfect ......fully agree.....
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5. bangalore king  Apr 2, 2016 12:47:53 AM IST Reply

Equitas Holdings Limited IPO

We believe the company will see an upside of 10-15% post listing as the market are ready to embrace the first of SFB structure proposed by the RBI. However we don’t recommend for long-term due merging its three financing subsidiaries still in process. After completion of the process then we can give next call from our side.
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