Sejal Architectural Glass Ltd IPO Message Board (Page 8)

Dear Forum members,

The ratings given here are to guide the members, not ot mis-guide them.

The rating are their own opinion, rest of thing is to think yourself. Apna paisa hai to apni akal lagao.

Just see how many times Mr Tulsian has been proved wrong.

I NOT WANT TO SAY THIS IS MY VIEW BUT TO AWARE THE INVESTOR ABOUT THE FACT

Mr. Vipul, - Your entire write up has been copied word by word from Mr Tulsian's site and u are imposing them as yr own views !!!!!

I AM REFLECTING REAL FACT ABOUT THE CO. WHY NOT TO SUBSCRIBE?

Sejal Architectural Glass is entering the capital market on 9th June 08 with a public issue of 91.94 lakh equity shares of Rs.10 each in the band of Rs.105 to Rs.115 per share.



The company is setting up a 2 lakh tonne per annum, floatglass manufacturing plant in Bharuch Dist. of Gujarat at project cost of Rs.435 crores. This is being financed by the term loan of Rs.318 crores, unsecured loans of Rs.15 crores and balance largely by equity issue made by proposed IPO as well as pre-IPO.



The company is calling it a backward integration to enable them to control costs and enhance the quality of glass used for value added products. The company is into processing of glass with insulating, toughened, laminated glass and for decorative glass and having its plant at Silvassa. The company has been procuring floatglass and processing it further and supplying them as decorative glass. Floatglass market at present is facing a situation of oversupply and this is revealed from the raw-material costs of the company, which constituted about two-third of the topline upto FY06, which fell to almost 50% in period ending December 07. Also, inspite of being in business, topline growth of the company is not significant as it was at around Rs.20 crores for FY 04, which rose to Rs.34 crores in FY 07 from its own operations. FY 08 may witness a topline of Rs.50 crores from its own manufacturing operations.



So how could one justify a project of over Rs.450 crores for almost 10% of the company’s present topline, as a backward integration? Apart from this, financing of this project would heavily leverage the balance sheet of the company as debt of Rs.335 crores for new project results in a debt equity ratio of about 2.8 : 1. The present net worth of the company of Rs.50 crores would go upto Rs.150 crores, post IPO.



Asahi India Glass, an existing listed peer having almost 2½ time capacity of the proposed project has not been doing well for the past couple of years. FY08 topline of Rs.1,000 crores resulted in a PAT of Rs.8 crores only. Share price of this company is now ruling at its 52 week low of Rs.55 (face value Re.1).



The floatglass market in the country is largely controlled by MNCs like Asahi and Guardian. The major consumption of floatglass is in automobile sector, and is also now being used for housing, furnishing and decorative segment. In view of huge capacity created by these two players, we have seen sharp fall in the selling prices inspite of rise in cost of production due to sharp rise in soda-ash and furnace oil prices, which are critical raw-material for any floatglass maker.



Sejal Glass claims to have an advantage of having its feedstock as natural gas instead of furnace oil for its furnace and also proximity to source of sand and soda-ash, as both are available in plenty in Gujarat. However, new capacity of 2 lakh tonne per annum coming in from FY 10 would bring down prices further and also, it would be difficult for the company to market such a huge capacity, which is almost 10–12 times of its present capacity being marketed.



Also, promoters and company’s present financial standing is likely to prove risky to implement a Rs.450 crore project which is financed to the extent of 70% by debt. Initial loses can overcapitalize the project cost in coming period.



Considering the present state of floatglass industry, and size of the proposed project, it seems to be quite a risky proposition and hence share price, even at the lower band of Rs.105 per share, looks stretched. Promoters capability to handle such a big project, looking at their track record, is also a big question mark.

AFTER THIS ARTICLE I THINK NO WISEMAN WILL APPLY FOR

it shud end with abt 10 times subscription .retail shud be around 9-10

How many time subscribe this IPO in retail & total at that time? Anybody help me?

Hello friends, Don't apply any of the present IPOs as all are highly over priced.Look back last one year IPOs and you can see most of the shares are avilable at a heavy discount ranging from 40% to70% and you can invest in good srip whichever you like.Alternatively keep it in bank FD and buy when the market goes to bottom like sensex
reaching 12000 level.

Thanks Mr R Gopal 22 for your strong recomendations to apply this IPO. Realy I had news from so many persons this rate will go with in a Year 1000.

Fully subscribe Withen 2 days. I think it will be ovarsubscribe Multi Time

lets give you my ratings sejal-55 first winner-58 archidply-48 avon-50 lotus eye-45 pleaqse note sejal and first winner ratings high because of very very high operator intrest both the co are mediocre they will languish beloe offerprize after 1st week of listing but both of their listing will be superb and allotee would be able to sell their holdigs profitably

mr sharemahaguru,aap sir f naam ke mahaguru hai aap kpo sharemaha bewkoof naam rakhna tha.agar co is prosprctus main rupaiye uthati hai to jaan lo usko apni listing acchi se acchi karwani aati hogi

IPO is over priced, but just look at the world around you, its all becoming glass. Drive 5 i KM in anycity in the country and I bet you will see 50 buildings, each needing glass. We no longer live with 3ftx3ft windows, its 10'x20'f, dining tables-all glass. I think the market is good, Sejal has a good track record. So IPO is priced 30% more than what it should be, but given market and construction already underway, doubling sales and profits and then some does not seem out of the picture. Go buy, but only for 3-5 years.

I strongly recomended the investors to apply this issue because it gives 500% returns with in a year period. This is a No one issue in 2008. The market falls 700 points even see how much ratio was subscribed. Apply if not immdtly and earn more.

I checked the company out it is one of the top three players in the glass processing segment and has always mantained a healthy profit. Now it is going into Float glass manufacturing with 60 % of the project already complete the company is entering the IPO only for part financing the expansion. I think it is a good company to invest in. The new units production will start in March after which the company's price will rise even further and as of today if you check the website of NSE and BSE the IPO is subscribed over 32%. My opinion is that this company will give good returns in the short and long run. Go For it brothers.... :)

go get it.good returns on listing

.tr ......u r right...my brothers.....i will not apply....capitalmarket given firsttime this type of rating.....it will be big flop show....for sejal glass........no qib is intrested.....iwould go for /////////////////

CAPITAL MARKET has given rating of ..20..to SEJAL IPO AND FIRST WINNER so be careful. i think this is first time that capital market has given such low rating to any ipo

Look at the guts of this company to come up with this price of ipo
its for sure this company will not even get .15% subscription
but does this company thought even at price of 30 rs people would have given 1% subscription atleast.
wow imagine 115 rs ipo going down to 30 rs on listing

sejal ipo kaisa hai and premi.kya hai and 1 lac ka kostak ka rs.kya hai