Bharat Wire Ropes Ltd IPO Message Board (Page 2)

QIB 0.74
HNI 1.23
RII 1.3
Total .83

ASON 1.30 PM

This issue will sail thru and I think it will list at premium

AVOID....Issue size is very big and Q1B hardly 1 time.

1.10 tak oversubscribe qib .60 hni1.22 retail 1.26

BWR GMP 4-5

Subscribstion link nse pls says anyone..

A lot of people saying big fish are holding this IPO.
I advice to trade cautiously. Don''t participate aggressively
Ramdev Agarwal & Motilal Oswal are most fraudulent people. They bought at Rs. 55 Just might be to trap others.
Mittal & family acquired this in 2011 at Rs 42. Thats only a good sign. Rest nothing good
Mr. Arjun Patel as per me no game in this IPO.

Will u apply pinky ji?

After IPO closing How I can withdraw my bid.

Pinky ji where r u.we need ur expert voice!

Lower circuit lagaiga.....paaakooo chey....
Dekh karr lagaigo

This ipo will sail through even after icici ditect has not put it 4 online apply.

Latest subscription figures pl. Thx.

RKS ji
Aapp lagainge....apply kareengai....
Many said avoid...i am also avoiding

Not applying. Just curious.

As earlier promotor have got shares near ipo band.it will list at premium inspite of very poor fundamental due to this.most of holdibg near about 40% is at this price band and surely operator game will be done.so I think it will list at premium

IPO Market is lacklustre, becaof the ill effects of the likes of CCD, PRECAM and QUICK HEAL. To confidence more quality issues like DR LALPATH LABS are needed.

Septaji, ur comment, "...it''s not only a dog but a dog with rabies.." sums it all for me :):)

The good things are
1.      The entire proceeds will be used towards the project.
2.      The average cost of acquisition for Gaji Mercantile (87% stake) is Rs 42/- which compares quite well to Issue price of Rs 45/-.
3.      The project will help accomplish backward integration & will be completed by Dec2016 if we are to believe management.

The not-so-good things are:
1.      The project is debt-funded to a large extent (65%). Post-issue, the D/E will shoot up from 1.2x (Jan16) to 2.7x.
2.      In FY15, 24% of their top-line was from trading in raw material most likely becaof low capacity utilization (53%) due to erratic supply of steel wires & slump in demand from end-user industry. The new plant will lead to backward integration & help smoothen the raw material supply but on the other hand will cannibalize the old plant as it makes no sense to produce the same stuff at a unit which has old machinery & is not backward-integrated. Ideally they should have gone for Brownfield expansion but I think they are having a Greenfield project just for various incentives available for a ‘D’ category location. So, don’t count their capacity as 12+66, take it as only 66.
3.      60% of end user industry is Infra, Construction &, Capital Goods which is good but remaining 40% is O&G/Shipping/Metals etc where demand remains slumped & this could be a pain in the near term (at least 1 year). So, overall there should be some improvement in capacity utilization but not much... say 60%?.
4.      Their historical performance has nothing exciting to show for.
5.      Usha Martin is many times big in scale, serves same industries &, is fully backward-integrated as it produces its own wire rod from coal/coke/iron ore. Their Wire Ropes segment is down by 21% in YTDFY16 (Dec15). If they are beaten so hard due to slowdown in end user sectors, I wonder what trick BWR could pull.

Summary: Above average growth prospects but concerns regarding high debt & low capacity utilization persist. Management is relatively new in the business with a lack lustre historical performance. Given great options available at present in secondary market, the opportunity cost for this investment is very high. Avoid.

just a speculative buy on the hunch that motilal oswal and raamdev agrawal will operate this counter i cannot find anything good abt the issue this is not only dog it is dog with rabies

Reasons not to invest in a Bharat Wire Ropes IPO

Revenues are in declining mode. In the last 5 years, revenues are stagnant. thin margins of 2% in last 5 years.Bharat wires manufactures specialty ropes which are available from china market with 30% to 70% discounted prices. Underutilisation of capacity of Existing Manufacturing Facilities why increase capacity better option buy factories in china which has over capacity. This issue is for to meet the equity requirement for the Proposed Project.

Also appraised by an appraising agency and the contents of the appraisal report are withheld. Company’s management was changed in 2010 and hence company promoters have limited knowledge and records of litigations, disputes etc. of company.
Company Proposed Project will be operated on lands which have been taken on long lease basis from M.I.D.C.
Company Promoters do not have the experience of operating in the wire ropes sector.
Too many issue

60 acre land is nt owned by the company it proposed project will be operated on lands which have been taken on long lease basis from M.I.D.C.

New Issues Analysis(IPO) - Bharat Wire Ropes

By Geetanjali Kedia

Bharat Wire Ropes (BWR) is entering the primary market on Friday 18th March 2016, with a fresh issue of equity shares of Rs.10 each, for Rs. 70 crores, in the price band of Rs. 40-Rs.45 per share. Representing 34.60% of the post issue paid up share capital of the company at the upper price band, issue closes on Tuesday 22nd March 2016.

BWR manufactures steel wire ropes at its plant at Atgaon in Maharashtra, with installed capacity of 12,000 TPA, operating at 53% capacity utilisation. Present promoters acquired the company in June 2010 from erstwhile promoters, who were prohibited by SEBI for about 10 months, in the year 2012 from buying, selling or dealing in the securities market, while said erstwhile promoters are still holding about 18.84 lakh shares in the company, representing 6.40% of pre IPO equity of Rs.29.40 crores. To add woes to corporate governance, company has stated that Registrar of Companies records are not available from 25th July, 1986 till 31st March, 2010, as they were not available from the erstwhile promoters.

Company under the new management has not shown any growth in its financials from FY12 to FY15, wherein income has remained stagnant at Rs.77 crores for both these years, with PAT falling from Rs. 2.14 crores to Rs.1.98 crores. For 8 months ending 30th November, income stood at Rs. 44 crores (of which, about 24% is trading turnover) with PAT at Rs.1.09 crores, showing a declining trend of working. Due to these flat results, net worth of the company just rose from Rs. 66 crores, at 31-3-12 to Rs. 71 crores, as at 30-11-2015. An addition of just Rs. 5 crores to its net worth, in 44 months working – absolutely lacklustre!

Despite such flat working and financials, company has courage to go in for a massive expansion, with a new wire rope manufacturing facility at Chalisgaon in Maharashtra, with capacity of 66,000 TPA and a capital outlay of Rs. 507 crores. This is being financed by term loan of Rs. 330 crores, IPO proceed of Rs. 60 crores, with Rs.117 crores coming in from net worth, ICD, preference shares etc. (of which, Rs. 62.20 crores were used till 31-1-16), with company having spent an amount of Rs. 150.62 crores, till 31-1-16, on this new project.

If we further analyse this amount of Rs. 62.20 crores, Rs. 36.70 crores has been mobilised from net worth (Page 98-RHP). However, this is seen incorrect and contradictory to the financials of the company, as at 30-11-15, wherein, net worth was at Rs.71.33 crores, while Fixed Assets (tangible) and excluding Capital WIP was Rs. 65.73 crores, implying that existing net worth has been largely utilised for existing capacity of 12,000 TPA fixed assets.

Usha Martin, India’s bigger player in the wire rope sector, reported consolidated segmental EBIT of Rs. 113 crores, on income of Rs. 1,425 crores, for 9M FY16, wherein capital employed is about Rs. 1,300 crores, on historical cost basis. This is despite Usha Martin’s global presence in the wire rope space, with a diverse product range, catering to the requirements of all the user industries. Current market cap of Usha Martin stands at Rs. 360 crore (comprising steel and wire ropes business), while BWR is expecting a post-listing market cap of Rs. 200 crore (at Rs. 45 per share), despite annual EBIT of less than Rs. 7 crore. Clearly, here expectations seem to be running sky high!

Also, this industry is facing severe competition from the small regional players on one hand, while threat from bigger players like Usha Martin and other global peers is also very rampant, thus putting severe pressure on the margins.

Hence, clear advice is to remain away from Bharat Wire Ropes issue, due to track record of promoters, stiff competition, wafer thin margins and huge project cost, being largely financed with borrowings, coupled with poor perception and low discounting of sector on bourses, making the issue quite expensive.

Disclosure: No interest
https://www.sptulsian.com/article/87605/bharat-wire-ropes

Looks like Usha Martin Limited is better bet as i said this earlier when SPT Like USHA Martin

Bharat Wire Ropes IPO to open on Friday

Maharashtra-based Bharat Wire Ropes Ltd will hit the primary market this Friday with its Rs 70 crore initial public offer. The company, which manufactures wire ropes for industries such as power transmission, suspension bridges, oil exploration, mining, defence and railways, will be issuing equity shares of Rs 10 each face value at a price band of Rs 40-45 a share. The company is valued at Rs 200 crore.

In October 2012, Motilal Oswal and Raamdeo Agarwal of the eponymous financial services company bought 6.25 per cent of the company for over Rs 10 crore in their personal capacity through Passionate Investment Management Pvt Ltd at Rs 55 a share for a valuation of Rs 165 crore. Since the IPO is entirely a fresh issue, they still continue to stay invested in the company.

The proceeds from the public issue will be used to build a 66,000 tonnes per annum plant in Chalisgaon, in Maharashtra''s Jalgaon district. The project is expected to cost Rs 507.18 crore. The company has tied up with seven banks for funds of up to Rs 330 crore. The company''s existing facility at Atagaon has an installed capacity of 12 tonnes a year.

Only 10 per cent of the net issue is reserved for retail investors since the company does not satisfy capital market regulator SEBI''s profitability track-record.

The minimum bid lot is 300 equity shares and thereafter in multiples of 300. The issue is open on the three trading days from March 18-22. Intensive Fiscal Services Pvt Ltd and BOB Capital Markets Ltd are the merchant bankers to the issue. The shares are proposed to be listed on the BSE and NSE.

(This article was published on March 15, 2016)

what is gmp for bharat wires ?