Sharda Cropchem Ltd IPO Message Board (Page 11)

Retail Portion subscribed approx. 3.69 times at 2.00 pm

NSE Bid Details

QIB - 0.25
NII - 32.85
RII - 0.55

BSE Bid details
QIB - 2.73
NII - 1.31
RII - 2.49

Appication 700-800
Gmp 30-35
Plz apply aslight co. Gud fundamentals

Pinkyji konse GMP ki baat kar rahi ho??? Sharda ya Shemaro ??
agar shemaro ka toh shemaro k board pe dalo ye post.

Sharda Crop''s fabulous profit margin raises doubt: Expert SCL presents itself as a crop protection chemical company engaged in the marketing & distribution of wide range of formulations and generic active ingredients globally. VS FERNANDO Financial Analyst & Columnist Expertise : IPO More about the Expert... 1 0 1Google +1 0Comments (3) By VS Fernando, IPO Analyst Sharda Cropchem: Agrochem’s current industry P/E may justify price-band though the ‘marketing’ company’s fabulous profit margin raises doubt. The IPO The present IPO is an offer for sale of 2.26 equity shares of Rs 10 each from the company’s existing shareholders: HEP Mauritius Ltd (1.43 crore shares), Sharda Bubna and Ramprakash Bubna (41.17 lakh shares each). The offer is made through book-building route with a price band between Rs 145 and Rs 156. The issue constitutes 25 percent of the capital of the company. Investors should apply for a minimum of 90 shares and multiples of 90 thereafter. Edelweiss Financial Services and IDFC Securities are appointed as book-running lead managers while Edelweiss Securities and Sharekhan are acting as syndicate members. IPO Object The main object of Sharda’s IPO is to derive benefits of listing and to carry out the offer for sale by the selling shareholders. In other words, the entire issue premium of over Rs 304 cr would go to the selling shareholders and not the company. Grading Being an offer for sale, the IPO has not been graded by any rating agency. Company Background Incorporated in March 2004 as Sharda Worldwide Exports Pvt Ltd, the company’s activities were dominated by export-trading till fiscal 2013. The company changed its name to Sharda Cropchem Ltd (SCL) only in September 2013. As regards the people behind SCL, the promoters Sharda Bubna and Ramprakash Bubna claim to have engaged in dealing of dyes and dyes intermediates since late eighties through their proprietary concerns viz. Sharda International (1987) and Bubna Enterprises (1989). The businesses of the proprietary firms were transferred to SCL in April 2004. Business profile SCL presents itself as a crop protection chemical company engaged in the marketing & distribution of wide range of formulations and generic active ingredients globally. The company is also involved in order-based procurement and supply of belts, general chemicals, dyes & dyes intermediates. The company claims, its core strength lies in identifying generic molecules, preparing dossiers and seeking registrations. SCL does not have a manufacturing facility of it own even though its net block is valued around Rs 200 cr. According to the company, the ‘net block’ is predominantly of foreign licences for its molecules which are essentially intangible assets. Until fiscal 2013, the company’s revenue was dominated by trading and for the first time in fiscal 2014, manufactured goods-sales overtook trading revenue. The company claims to get its manufactured goods on job-work basis from third parties. The company’s entire revenue is derived from exports. Financial Performance SCL’s revenue grew from Rs 203 crore (cr) in fiscal 2010 to Rs 556 cr in fiscal 2013. Trading revenue accounted for 81 percent in 2010 which came down to 60 percent in 2013. In fiscal 2014, the top line witnessed a negative growth to Rs 532 cr as trading turnover Rs 13.29 cr in 2010 to Rs 84.50 cr in 2014. An interesting aspect of SCL is, though predominantly a trading company, its operating margin is as attractive as 22.5 percent which is more than double of the best in the industry. The company’s capital, which was at Rs 1.38 cr in 2004, was enhanced to Rs 15.18 cr in 2007 through a bumper 10:1 bonus issue. Post-bonus, the company made private placements in 2008 thereby enlarging the equity to Rs 18 cr and collected Rs 94 cr premium. In June 2011, it made another bonus issue in the ratio of 4:1 taking the equity to over Rs 90 cr. On the enlarged equity, the EPS worked out to Rs 9.37 for fiscal 2014. The ten-year old company joined the dividend list in fiscal 2012 (10 percent). For 2013 too, it paid 10 percent which was hiked to 20 percent in fiscal 2014. This worked out to a payout of 21 percent. Prospects Even though SCL does not have any manufacturing base, the company is confident of maintaining its growth on the strength of its core competency in registration of molecules, strong sourcing capabilities and global distribution network. The company’s current dividend base itself gives a yield of 1.3 percent on the offer price. Valuation & Perception Sharda is asking for a valuation of Rs 1300-1400 cr at a price band of Rs 145-156. The price band gives 15-16 P/E which compares well with the industry peers. At the offer price, SCL’s book value is discounted 2.5 to 2.7 times. Perhaps, one factor that may weigh against the valuation is the absence of any tangible asset. The non-promoter shareholder whose average cost is less than Rs 70 is offloading his entire holding through the IPO. If the profit margin is so convincing and also if the prospects are so promising, why should the Mauritius shareholder dispose all his holding? Lead Manager’s Track For managing the offer for sale, SCL has hired two investment bankers viz. Edelweiss Financial and IDFC Securities whose track record is a mixed bag. Whereas the two issues managed by IDFC in recent years are currently quoting at a premium, most of the IPOs handled by Edelweiss are languishing below the offer price even in the current boom. The only solace is, Wonderla, lead-managed by Edelweiss in 2014, is currently quoting nearly two and a half times its offer price.

Read more at: http://www.moneycontrol.com/news/ipo-swot/shardacropsfabulousprofitmarginraisesdoubtexpert_1171471.html?utm_source=ref_article

Ashika Research

The company has a strong balance sheet with healthy return ratios. It has maintained a focus on capital efficiency and has a conservative debt policy (zero debt as per FY2014 balance sheet). It has the ability to leverage the balance sheet to take advantage of a favourable business cycle or market opportunity.

It has strong return on capital employed (RoCE) of 25 per cent and return on equity (RoE) of close to 20 per cent. The net working capital days have also improved over the last four years and at the end of FY2014 the net working capital days stood at 99 days compared with 143 days in FY2010.

"At the upper price band of Rs 156, the company is priced at a P/E ratio of 13x, comparatively lower than the average P/E of 25x of the listed peers," the report said.

"Considering the strong balance sheet, healthy return ratios and aslight business model, Sharda Cropchem is an attractive bet to take on and we rate it as SUBSCRIBE," it added.

are you agent of lead manegar or sharda ......if listing at bellow 130 then......

Mr S Kumar, I am not an agent hired by Sharda. I am here to spread information & seek advice from viewer of this forum whether these information is true or not. I am also a retail investor like you or thousand others. So respect others while posting in public forum.

HEM Securities

Overall, the aslight business model helps company pay unfettered attention and invest capital and time on identifying generic molecules and corresponding formulations and generic active ingredients.

With an objective to increase its presence in the agrochemicals value chain, the company has up its own sales force in various countries in Europe as well as Mexico, Columbia, South Africa and India.

The company is bringing the issue at price band at Rs 145-146 per share which will turn into P/E multiple of 12-13 on post EPS of Rs 11.85.

The brokerage has advised to ''Subscribe'' to the issue.

Dolat Capital Market

The company sources formulations/active ingredients from third party (primarily, China) for onward sale. The company distributes its product through third party distributors and through its sales force of 100 people across the world. Going forward the company intends to expand its own sales force in addition to the third party distributors.


The price band for the issue is of Rs 145-156/share, which translates into a market cap of Rs 13-14 billion. On an upper price band the stock is valued at a P/E multiple of 13.2 times FY14 EPS of Rs 11.8.

There is no direct comparable of the company in the listed space as SCL has an aslight model, unlike other listed agrochemical companies which are more capital intensive in nature.
The brokerage has a positive view on the IPO.

IIFL

With increasing focus on crop protection to meet the rising food demand, the demand for agrochemicals is expected to grow at a healthy pace. But with the stiff competition from specialty product manufacturers, generic players like SCL may not be able to reap full benefits.

"We are not so enthusiastic about the business model of the company and recommend investors to subscribe only for listing gains," the report said.

At the upper end of Rs145-156 price range, the stock trades at 11x FY15E EPS of Rs14, which is at the lower end of 9x-25x range for peers like Bayer, Rallis, UPL etc.

"We note that these peers have strong domestic presence, niche product portfolio, in-hoR&D and therefore trade at higher multiples," the report added.

ICICI Securities

Sharda has an asset-light business model whereby it focuses on identifying generic molecules, preparing dossiers, seeking registrations, marketing and distributing formulations through third-party distributors or its own sales force.

The company as of FY14 holds around 1200 registrations of which the European Union constitutes ~45 per cent (534 registrations), Latin America ~26 per cent (312 registrations), Nafta ~6 per cent, while the rest of world (RoW) comprises the remaining ~23 per cent.

According to the brokerage, at the upper price band of Rs 156, the company is available at a P/E of 13.2x on FY14 EPS.

"We recommend SUBSCRIBE on the issue for listing gains," the brokerage said.

LET ME KNOW THE FINAL SUBSCRIPTION OF SHARDA CROPCHEM TILL TODAY.

Cummulative Bid and Quantity for SHARDA CROPCHEM LIMITED
At BSE-NSE

Last updated on
Monday, September 08 , 2014 5:00:00 PM

Price ()      Quantity
145.00      2,56,80,150
146.00      2,56,52,070
147.00      2,56,48,200
148.00      2,56,42,890
149.00      2,56,40,190
150.00      2,56,38,930
151.00      2,56,22,730
152.00      2,56,19,940
153.00      2,56,18,140
154.00      2,56,16,070
155.00      2,56,13,460
156.00      2,56,08,510
Cut-off      1,22,54,220

Source BSE

SHARDA CROPCHEM LIMITED      
Last updated on 08/09/2014 05:00 PM
Sr.No.      Category      No.of shares offered/reserved      No. of shares bid for      No. of times of total meant for the category
1      Qualified Institutional Buyers (QIBs)      7894461      13599360      1.7200
1(a)      Foreign Institutional Investors(FIIs)            9364770      
1(b)      Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies)            3205080      
1(c)      Mutual funds            3780      
1(d)      Others            1025730      
2      Non Institutional Investors      3383269      4299480      1.2700
2(a)      Corporates            2528460      
2(b)      Individuals(Other than RIIs)            1771020      
2(c)      others            0      
3      Retail Individual Investors(RIIs)      7894294      14143500      1.7900
3(a)      Cut Off            12971070      
3(b)      Price bids            1172430      
Total      19172024      32042340      1.67

Sharda Crop''s fabulous profit margin raises doubt: Expert

Read more at: http://www.moneycontrol.com/news/ipo-swot/shardacropsfabulousprofitmarginraisesdoubtexpert_1171471.html?utm_source=ref_article

Cummulative Bid and Quantity for SHARDA CROPCHEM LIMITED
At BSE-NSE
Last updated on
Monday, September 08 , 2014 3:00:00 PM
Price ()      Quantity
145.00      1,13,23,980
146.00      1,13,00,490
147.00      1,12,97,070
148.00      1,12,92,390
149.00      1,12,89,780
150.00      1,12,88,700
151.00      1,12,75,830
152.00      1,12,73,220
153.00      1,12,71,690
154.00      1,12,69,890
155.00      1,12,68,180
156.00      1,12,63,410
Cut-off      93,21,300

BSE
Last updated on
08 Sep 2014 | 03:55 PM
Sr.No.      Category      No.of shares offered / reserved      No. of shares bid for      No. of times of total meant for the category
1      Qualified Institutional Buyers (QIBs)      7894461      3748860      0.4749
1(a)      Foreign Institutional Investors (FIIs)            540000      
1(b)      Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies)            3205080      
1(c)      Mutual Funds            3780      
1(D)      Others                  
2      Non Institutional Investors      3383269      211860      0.0626
2(a)      Corporates            14580      
2(b)      Individuals (Other than RIIs)            197280      
2(c)      Others                  
3      Retail Individual Investors (RIIs)      7894294      10064340      1.2749
3(a)      Cut Off            9518940      
3(b)      Price Bids            545400      
4      Employee Reserved            0      
4(a)      Employee (Cut off)                  
4(b)      Employee (Price)                  
5      Reservation PortionShareholder            0      
5(a)      RPS (Cut off)                  
5(b)      RPS (Price)                  
Total      19172024      14025060      0.7315

Source BSE

SHARDA CROPCHEM LIMITED      
Last updated on 05/09/2014 05:00 PM
Sr.No.      Category      No.of shares offered/reserved      No. of shares bid for      No. of times of total meant for the category
1      Qualified Institutional Buyers (QIBs)      7894461      320490      0.0400
1(a)      Foreign Institutional Investors(FIIs)            320490      
1(b)      Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies)            0      
1(c)      Mutual funds            0      
1(d)      Others            0      
2      Non Institutional Investors      3383269      21780      0.0100
2(a)      Corporates            1800      
2(b)      Individuals(Other than RIIs)            19980      
2(c)      others            0      
3      Retail Individual Investors(RIIs)      7894294      1758780      0.2200
3(a)      Cut Off            1552590      
3(b)      Price bids            206190      
Total      19172024      2101050      0.11

Source BSE

Cummulative Bid and Quantity for SHARDA CROPCHEM LIMITED
At BSE-NSE
Last updated on
Monday, September 08 , 2014 11:00:00 AM
Price ()      Quantity
145.00      58,52,250
146.00      58,39,920
147.00      58,37,040
148.00      58,33,620
149.00      58,32,360
150.00      58,31,820
151.00      58,26,960
152.00      58,25,520
153.00      58,24,710
154.00      58,23,090
155.00      58,21,560
156.00      58,18,050
Cut-off      51,00,570

SHARDA
TOTAL SUBSCRIPTION
BSE 68 %
NSE 14 % UPTO 11:58AM

CAN ANYBODY TELL LATEST PRIMIUM OF SHARDA

80-82

Dear Sir/Madam
i want to sell Applications for all IPOs under my demat a/c in kiosk/GM.
Kindly contact me on 8588932990

Its clear avoid . No ifs and buts , take informed decisions ie I mean to say invest in large caps (BSE 100 ) or HDFC Top 200 Funds or invest with your own study where your money is 100% safe and one can earn 15-18% interest per annum on long term basis instead of investing in small caps where our own conviction is poor.

Riti u can''t compaire sharada with snowman both ipo came in the mkt with different motive snowman expand his business but sharda motive to pay money to a partener who want to exit with the company