Sharda Cropchem Ltd IPO Message Board (Page 12)

Lets check the No. of times Sharda applied on moday evening. Sab ke sab apply karenge. Pehele din snowman ke IPO mein bhi 1 time hi hua tha. Wait for monday and finally tuesday.

Past 8 year,s Tax man has send me more than 20 tax notices under sec. 148 due to more than Rs.100000/ investment in IPO,s .and I have send these notice,s in dusbin.

Be Careful with Taxmen. Investment above Rs.100,000/- is under Income Tax Scrutiny.

KOSTAK RATE PLEASE.......

Hows this IPO ?

September 4, 2014:
With the market hitting new highs, companies are lining up with initial public offerings. Crop protection chemicals marketing company Sharda Cropchem’s promoters and PE investor HEP, Mauritius, will offer about 1.1 crore shares (excluding QIP portion of 1.1 crore shares) to retail investors. The offer is priced between � and � apiece, which translates to a premium of 12 and 13 times its 2013-14 earnings.

Discount justified
Though the offer price values Sharda’s stock at about 20 per cent discount to its peers — Excel Crop Care and United Phosphorous (UPL), the discount may be justified for four reasons.

First, the company is into distribution of generic active ingredients and formulations which are off-patent and have no entry barrier. Unlike peers such as UPL, Sharda does not own manufacturing assets and hence dependence on third-party manufacturers may risk the company’s ability to meet supply obligations in time and ensure consistent product quality. Further, Sharda is largely reliant on its distribution partners in key overseas markets — Europe and Latin America as it does not have significant front-end presence in these markets.

Second, the company’s corporate governance practices are a caof concern. For instance, the company has over 1,040 registrations (permission to market) for agrochemical formulations and 155 active ingredients in overseas markets such as Europe, NAFTA (North American Free Trade Agreement) countries and Latin America. Most of them were held by its promoters-controlled group companies — Euroazijski Pesticidi, Croatia and Sharphil Inc, the Philippines, until recently.

Minority shareholders lose
While the registrations owned by the Croatian entity have been transferred to Sharda, promoter-owned Sharphil Inc continues to hold select registrations. Also, promoters holding majority stake in group companies that are in the same line of business, may not be in the best interest of minority shareholders.

Some of the product registrations continue to be held in the company’s erstwhile name Sharda Worldwide Exports Pvt Ltd the name change is yet to be effected. The company has also issued inter-corporate deposits to its group company Axis Crop Science at lower-than-market rates. There have also been instances of related party transactions not being carried out at arms length prices.

Third, Sharda has not followed prudent accounting practises. For instance, the company spends about $13-15 million (󌢒-90 crore) on an average annually towards product registrations. This accounts for over 50 per cent of the company’s operating profit. These charges are capitalised by the company and amortised over a period of years from the date of approval of these registrations. This leads to over-statement of profits in the interim period.

Its statutory and regulatory compliance track record has not been consistent either. The company did not conduct internal audit for four consecutive years until 2012-13. It was only in 2013-14 that the company appointed internal auditors. There have been significant delays in payment of service tax during 2011 and 2012. The company has faltered with regulatory filings, too. For instance, Sharda in the past, has delayed/failed to file documents pertaining to foreign exchange remittances mandated under FEMA to the RBI.

Fourth, the company has not been very efficient with working capital management. Sharda’s receivable days for 2013-14 period was at 187 days meaning — for a credit sale made today, the company will receive payment only after six months. This is significantly higher than peers such as Excel Crop Care (16 days) and UPL (113 days). On the other hand, Sharda paid its suppliers (creditors) within 96 days on an average, last fiscal. This may not only strain its working capital, but will also expose the company to forex fluctuation risk, given that Sharda derives about 97 per cent of its revenues from overseas markets.

Financials
Sharda reported flat operational revenues in 2013-14 at � crore, with a meagre 5 per cent growth in operating profit. The 27 per cent increase in net profit to � crore was aided by lower depreciation provision.

The issue opens on Friday and will close on September 9. Given that the concerns outweigh the positives, investors may be better off avoiding the issue.

The Hindu Business line says : Sharda Cropchem IPO: bewith problems, keep away.


http://www.thehindubusinessline.com/markets/stock-markets/sharda-cropchem-ipo-beset-with-problems-keep-away/article6380349.ece

Thanks for the Update Anil

ONE MAY AVOID

TO DAYS RESPONSE SHOWS SHARDA CORP MAY NOT GIVE LISTING GAIN

how many application you have,and what price rate asking for selling application ??

Day 1 stats

Overall issue subscribed 11 per cent at the end of day 1, that too led by retail investors.

QIB portion subscribed just 4 per cent.

HNIs and corporate bodies bid for shares less than 1 per cent of their quota.

Retail investors were the face savers and bid for 22 per cent of the issue reserved for them

There are lots of Anchor investors who got pre IPO allotment. After seeing this, IPO looks attractive. Please give your comments.

Sr.No.|Name of the Anchor Investor| No. of Equity Shares allocated|
No. of Equity Shares
allocated as a
percentage of no. of
equity shares under
Anchor Investor
portion (1)
1 DSP Blackrock Focussed 25 Fund 1,28,205 3.79%
2 DSP Blackrock Op~ortunities Fund 1,46,002 4.32%
3 DSP Blackrock Natural Resources and New Energy Fund 64,103 1.89%
4 Kuwait Investment Authority Fund 224 3,38,310 10.00%
5 Goldman Sachs India Fund Limited 3,38,310 10.00%
6 Reliance Capital Trustee Co. Ud. AlC Reliance Capital Builder Fund - SR A 3,38,310 10.00%
7 Morgan Stanley SICAV(Mauritius) Limited 3,38,310 10.00%
8 SBI Magnum MultiCap Fund 1,02,068 3.02%
9 SBI Magnum Comma Fund 1,02,068 3.02%
10 SBI Magnum MidCap Fund 1,02,068 3.02%
11 SBI Magnum Monthly Income Plan Floater 15,198 0.44%
12 SBI Resurgent India Opportunities Scheme 16,908 0.50%
13 ICICI Prudential Child Care Plan - GiftPlan 1,50,323 4.44%
14 ICICI Prudential Exports and Other Services Fund 1,00,215 2.96%
15 ICICI Prudential Growth Fund - Series 2 87,772 2.60%
16 Ashmore Sicav Indian Small Cap Equity Fund 3,38,310 10.00%
17 UTI Focused Equity Fund Series I (1100Days)3,38,310 10.00%
18 L&T Mutual Fund Trustee Limited - L&T Advant~e Fund 3,38,310 10.00% Total 33,83,1 ()() 100.00%

I WANT TO SELL OUR SHARDA CROP APPLICATION PLEASE PROVIDE ME CONTACT NO

apply today morning now thinking to withwdrawl fearing being trapped in....

Check how was the performance of IPO with similar views and ratings..

/ipo/rdb_rasayans_ipo/328/

RDBRASAYAN .. even rating was 3.7, which is close to that of Sharda.

Issue price was Rs 70. On the listing day it dropped by over 70%. So please avoid bad IPO''s like SHARDA. Retail investors will loose and speculators (satta operators) will win.

https://www.google.com/finance?q=BOM%3A533608&ei=aJQJVMjWBcO9lAXvz4GIDg

I wish to buy Sharda Cropchem thru kostak rate prevailing. Kindly suggest how to go forward n sellers do send your reply.

Sharda cropchem ipo must be apply
Gmp- 55 to 60


Jo log ipo avoid bolte hai wohi log pehle ipo bharke paisa kamalete hai.
Woh log roumer felatehai.be care full

Be careful with this IPO, which usually wait for good market conditions for launch... chemical companies are high risk low return companies..

premium can go down by the day of listing!!

amit rajput       Member since: 12/10/2013
Posted on: Sep 05, 2014 12:39:17 PM IST

ye sab fake chal raha hai market me sharda ka bhaav please keep distance with this ipo s p tulsian also advice to avoid this ipo sharda is a marketing company no mfg product is group ke ek partner ko alag hona hai usko pay karne ke liye ye ipo aa raha hai

hindu business line: AVOID

Sharda Cropchem IPO: bewith problems, keep away

Read at below link:
http://www.thehindubusinessline.com/markets/stock-markets/sharda-cropchem-ipo-beset-with-problems-keep-away/article6380349.ece

Thank you very much for sharing the link. Business Line''s analysis are really very useful, all retail investors, pls avoid this IPO, they just want to loot from the Retail Investors.

I am investing past 8 years in IPO,s in my 7 D.mat A/C,s Rs.200000/ APP.
and recived more than 20 Income tax notices under sec. 148 ,but I don,t give any reply .

this is mid sized crop protection formulation company and although not having own plant but have registration of more then 1000 formulation dossier in 60 countries and likely to file another 500 dossier and hence according to me it will be listed above 200 and may go to 300 in 6 month apply full lot