Everonn Systems India Limited IPO Message Board (Page 93)

13. fandoo  Jun 28, 2007 12:21
Hi Mr. Tops,

Make your funda clear first...
If you are saying gray market premium is 235 then it is not 68%..it is 168% above its upper band price of 140..

Business of this company is clear with great revenues from big IT companies & corporate companies(Giving Education need less capital but more profit)
thatswhy premium is high before opening..
12. Tops  Jun 28, 2007 12:05
Grey market premium is 235, which is at a premium of 68% over its price at the upper band. Can any one shed light on the reasons for such a premium even though the issue is to open a week later!!
Alpesh Kumaar
11. Alpesh Kumaar  Jun 28, 2007 00:29
any idea about this IPO
U Agarwal
10. U Agarwal  Jun 28, 2007 00:28
It seems to be good IPO. I personally feel that we can apply for it
9. Gsifs.com  Jun 27, 2007 20:56
Everonn Systems Ipo is like the Educomp Ipo. High over subscription and high listing gains as well as bright future.

M. Panjwani,
Equity Analyst, GSIFS
8. krupal  Jun 27, 2007 17:32
it has the premium of 225 in gey market ..and it's not yet opened
7. Hemant  Jun 27, 2007 11:53
From SP Tulsian

Everonn Systems India is entering the capital market on 5th July 07 with a public issue of Rs.50 crores in the price band of Rs.125 to Rs.140 per share. At the upper band, issue would comprise of 35.70 lakh equity shares.

For FY 07, the company recorded a sales of Rs.43.04 crores, EBITDA of Rs.17.63 crores, PAT of Rs.4.86 crores on equity of Rs.10.28 crores, resulting in an EPS of Rs.4.72.

The company is now expanding its institutional education and IT infrastructure services as also for Virtual and Tech enabled learning solutions and total fund requirement is estimated at Rs.66.06 crores. This is largely met from equity issue, of which Rs.14.06 crores preferential allotment having made in August 2006 at Rs.106 per share.

The company would bid for BOOT projects to set up and run computer education centres across government schools. These contracts are funded out of government budgetary allocations made from Sarva Sikhsha Abhiyan and ICT schools and company plans to add 1,000 schools every year. The company has signed an MoU with West Bengal government to take up IT education in 555 schools and have in turn signed MoU with 146 schools of which 96 schools are made operational. The company has also got 216 schools in Karnataka under the ICT project for such schools.

The company needs to supply all hardware, software and reading materials to the school for which lease/royalty for 6 years is charged by the company. At the end of 6 years, hardware is transferred to the school, free of cost. One school needs an investment of about Rs.4 lakh and the company had estimated requirement of Rs.30 crores for 750 schools. Also, working capital cycle is very high and payment is coming after 180 days. Due to this, the sundry debtors of the company was at Rs.27.97 crores on 31-03-07 on topline of Rs.43.04 crores. A cycle of about 8 months. As cost of equipments needs to be recovered over 6 years, depreciation and amortization of the company are very high, which was at Rs.8.44 crores for FY 07.

The revenue model of the company is very much comparable with Educomp Solutions, which had sales of Rs.49.86 crores and net profit of Rs.13.13 crores for March 07 quarter. On equity of Rs.16.37 crores, EPS was at Rs.17.30 for FY 07. EBITDA margin was at 47% for FY 07 as well as for Q4 of FY 07.

The EBITDA margin of the Everonn was at 41% for FY 07, which would increase with improvement in the topline. Even expanded equity of Rs.13.85 crores would be very much comparable with Educomp. Fresh infusion of Rs.60 crores would sharply improve the financial performance of the company and it is capable of posting a growth of 40% plus, over next 3 to 4 years.

Considering these facts and performance of Educomp in the secondary market, investment is strongly recommended.
strong buy
6. strong buy  Jun 27, 2007 00:08
grey mkt premium:100-105
expected o/s in retail:25+
jigish gandhi
5. jigish gandhi  Jun 26, 2007 18:53
iwant to know about retail size of ipo &also know green shoe option please sent that this ipo is same that educom so give me a reply
4. rajat  Jun 25, 2007 13:38
but educomp is very costly and this ipo is very cheap.....which one should i buy....
3. jaimin  Jun 23, 2007 10:43
please give me about grey market site
2. Skumar  Jun 22, 2007 13:49
Buy Educomp,Niit Or Aptech insted of applying in this ipo
pankaj kalani
1. pankaj kalani  Jun 22, 2007 09:36
what is openion about this ipo?

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