Gujarat Pipavav Port Ltd (GPPL) IPO Message Board (Page 76)

pipavav becho nahiter listing pe pahendega-yad rakhna

pipavav becho nahiter listing pe pahendega-yad rakhna

Mundra Port trading at 9 times to book value. gujarat Pipavav coming at around 6 times.

Gujarat Pipavav Port sets IPO price band at Rs 42-48/sh

Gujarat Pipavav port application lot details
Application Multiple :       130 and in multiples there off starting with atleast 130 shares
Maximum Shares :       2080 (for Retail)

Gujarat Pipavav Port opens next Monday with the price band of Rs. 42-48 (issue size could be Rs.550 crore which includes offer for sale). Having gone through the prospectus of the Company, I would like to share some finer points for fellow investors to make up their mind - It is a loss making company since 2006 with NAV of the share as on 30.9.09 (latest provided by Company) of Rs.8.41.

9M 12 12 12
30.9.09 31.12.08 31.12.07 31.12.06

Income(Crores) 151 121 167 151
NP (82) (60) (70) (46)

Equity Capital - Rs. 315 cr (Face value -10/-)

Promoted by APM Terminals, a worlds leading port operator, the last few allotments made by Company are - Rights Issue in Sep'07 @ 50/-, made preferential issue to APM in Dec'09 @ 47.25. The shareholder list includes UTI which is holding shares since 2000 @ 80/-, NewYork Int'l India Fund @ 80/-, IDFC Infrastructure Fund since 2005 @ 40/- and IDBI Bank which holds 9% stake (pre issue) @10/- by virtue of conversion of FCD's in 2000.

The Co. wants to utilise the issue proceeds for prepayment of loans of Rs. 300 crores and puchase of equipments for Rs.90 crores. The loan book of the Co stands at Rs.1200 cr.
Now coming to peer group comparison, we have only Mundra Port which is a much bigger and profitable company and cannot be strictly compared because it has been developing SEZ also. However, Mundra Port is cuurrently ruling @800/- with PE of whopping 45.7. Consider the 2010 income of Mundra at Rs. 1392 cr. and NP of Rs. 700 cr. Its Book value is Rs.87/- on equity base of Rs. 400 cr.

So in nutshell, the Company's past performance has not been encouraging and topline has more or less remained static over a period of 3 years which is a cause of concern to prospective investors. We will also have to wait for the March quarter results of the Co to arrive at proper conclusion regarding pricing. However, the sector is in favour in India considering huge potential and experience of promoters is a plus. The only question is regarding scalability of business for which we will have to wait for managements guidance for next two years and how they plan to achieve that.

The company is not related with Pipavav Shipyard, yes it was promoted by SKIL, the promoters of later but they cashed out by seling their stake to APM Terminals way back.

any idea abt kostak, GMP

sks is also so expensive when price band declared

see now after listing

market is on 18000+

42 to 48 is not so expensive

@ CA MILIND JOSHI,,,,,

WHAT IS LATEST EPS,,.?

Look for listed entities or holding companies in the sector. one such is Marg Lts. holding company of Kariakal port

well as per information from RHP,

the company's EPS is negative,

company has taken reference of PE Ratio of its peers like Mundra Port SEZ which is 41.

i wonder whether any discount to retailers is offered.

Normally this kind of companies are compared on Price to Book value rather than PE.

Mundra port trading below 10 times price to book,

Looks risky investment to me

A LOSS MAKING CO. FOR THE LAST 5 YEARS

Plz Explain for that invest this IPO or Not?

Dear Friends,

There are two port IPO's came in recent months and both have performed exceptionally well.

Mundra Port And Special Eco Zone Ltd.
Pipavav Shipyard Ltd

Port business has huge potential as the export and import will grow exponentially in future. I consider these stocks for long term investment but the should term listing gains are also cannot be ignored.

More comments are welcome.

Sanj

THE PROJECT IS GOOD BUT ONE SHOUD NOT EXPECT LISTING GAIL WHILE APPLYING.

ISSUE PRICE SHOULD BE AROUND 22-25. COMPANY ALREADY PRICED DOUBLE LOOKING MARKET SENTIMATE.

PRICE IS TOO HIGH TO APPLY.

PRICE BAND IS DECLARED AT Rs 42-48

SINCE LAST FIVE YEARS ITS EARNINGS NEGATIVE.BUT CRISIL RATING 4/5. ITS INDICATED ABOVE AVERAGE FUNDAMENTAL. PEER GROUP COMPANY MUNDRA PORT PE AT 45. LAST QUARTER JAN 1ST TO 30 MARCH 2010 -0.88 EPS. ITS GIVE SOME LISTING GAINS.

@ rajesh

plz explain....how...what are valuations..eps etc..