Tecpro Systems Ltd IPO Message Board (Page 33)

what is kostak rates?. I have been wanting the comments.

Why people are not coming with their names, lot of people are blogging with identity Anonymous, I sincerely request all of you to create an identity, also I request to chittorgarh team to remove Anonymous identity.

The New Delhi based material handling company is hitting the capital market shortly, through an IPO. The issue consists of fresh issue of 62, 50,000-equity shares and offer for sale of 13, 00,000equity shares, of Rs 10 FV, at a premium. SBI Capital Markets and Kotak Mahindra Capital Company are the BRLMs.
The issue opens on 23-09-10 and closes on 28-09-10.


BUSINESS:

Tecpro Systems Limited is an established material handling company, engaged in providing turnkey solutions in bulk material handling (mainly coal) and ash handling. It designs, engineers, manufactures, sells and services a range of systems and equipments, which are used in material handling. It mainly caters to the power, steel and cements sectors. The company also provides turnkey EPC services for thermal power projects wherein it takes orders for power plants with 30-50 MW capacities. The company also recently forayed into the Balance of Plant (BOP) space. The company is one amongst the largest material handling companies in the country.

Tecpro’s management is headed by Ajay Kumar Bishnoi and Amul Gabrani, both of them have three decades of experience in the material handling Industry.

Tecpro has seven collaborations for various material handling equipment and technologies, and three collaborations in relation our ash handling operations. Some of the technical collaborations include FAM Magdeburger Forderanlagen und Baumaschinen GmbH, Germany and Hein, Lehmann, Trenn-und Fordertechnik GmbH, Germany, for material handling equipment with Xiamen Longking Bulk Materials Science and Engineering Company for dry bottom ash handling system and pneumatic coal mill reject handling system, Longking provides technical assistance.

FINANCIALS:

The company’s revenue were Rs 801cr in FY09, with EBITDA margin of 13.4% and net margin of 6.8%


OBJECTS OF THE ISSUE:

The funds are intended to be utilized for working capital requirements and for general corporate purposes.



OUT LOOK:

Leveraging the capabilities in coal handling, ash handling and established project management record, the company has focused on turnkey BoP contracts in the thermal power generation sector. The scope of the services for BoP contracts includes design and engineering, manufacturing and sourcing of equipment and packages, project management and commissioning. The company’s ability to provide coal handling and ash handling solutions in-house, which forms a substantial part of the BoP contracts, provides the competitive advantage in terms of cost, quality and execution timeline. The company bagged the first BoP contract worth Rs.9,930 million by the Chhattisgarh State Power Generation Company for a 1x500 MW thermal power plant at Korba West in August 2009.

RISKS: Increase in costs of raw materials, fuel and interruptions in their supply poses challenges to the company.



STRENGTHS:


a. Project management expertise and established track record of project execution.
b. Robust Order Book, which is in excess of Rs 2000cr as on 31-03-10.
c. Strong in-house design and manufacturing capabilities.
d. Technical collaborations and alliances with international manufacturers.
d. Experienced management team.
e. Well-positioned to capitalize on the growth opportunities in the power sector.




VALUATION AND RECOMMENDATIONS:

The expected growth in core sectors like power, steel and cement provides an excellent opportunity to the company to consolidate its position in the segment. Professionally managed growth driven company. The company's weighted average RONW in the last three years was in excess of 35%.

CRISIL IPO GRADE 4/5

Recommedation -

INVEST.

how is this ipo

Please give us the financial details

gmp career 115 kostak 1400 seeler,gmp micro 14-15 kostak 1400

bid lot = 15

bid lot ?

Tecpro Systems sets IPO price band at Rs340 to Rs355

The Company proposes to offer 7,550,000 equity shares of Rs. 10/- each, through its Initial Public Offer ("Offer").

Tecpro Systems Limited (the Company or the Issuer), engaged in providing turnkey solutions in material handling, ash handling, balance of plant ("BoP") and engineering, procurement and construction ("EPC") contracts, proposes to offer 7,550,000 equity shares of Rs. 10/- each, through its Initial Public Offer ("Offer")


The Company has fixed the price band of the Offer at Rs340 to Rs. 355 per equity share. The Equity Shares offered through the Red Herring Prospectus are proposed "to be listed on the BSE and the NSE.


SBI Capital Markets Limited and Kotak Mahindra Capital Company Limited are the Book Running Lead Managers for the Offer and Link Intime India Private Limited is the Registrar to the Offer.


The Offer, which will be through a 100% book building process, wherein at least 60% of the Net Offer will be allocated on proportionate basis to Qualified Institutional Buyers. Further, not less than 10% of the Net Offer will be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the Net Offer will be available for allocation on a proportionate basis to Retail Individual Bidders.

Saharanpuri, Can you give contact details of brokers in Delhi/NCR who give commission on IPO Forms

price band out
Rs.340-355

Two times bonus issues:

A) In July 26, 2006 Bonus Ratio: 1:4
B) In June 21, 2007 Bonus Ratio: 1:1

Along with multiple times share allotments to Metmin Inv. is making the calculation for the cost of selling share calculations tedious to me.

Let me know the direct cost per share of the selling investor Metmin, in case anyone finds the same.

Thanks

I think the choice should be
1. Eros
2. Career point
3. V a Tech
4. Ashoka
5. MicroSec
6. Cantbil
7. TecPro

One should invest 2 lacs each of the above to get huge returns as i Do

We need to analyze Tecpro prehand as otherwise if it comes out to be:

- Smaller Size issue
- Fundamentally Weak
- Low rated by the Capital market and other leading broker houses
- Low Institutional Demand for shares.
- ETC

Then our sacrifice by not alloting in the full force to the career will go to vains and overall of less returns.

There is no doubt over the fundamentals of
- VA Tech Wabag
- Ashoka
- Eros

But sort of tie between Tecpro and career / cantabil is causing confusions.

Request to other boarders to through more light on Tecpro fundamentals and issue size to take well informed decisions on allocation of the funds.

Thanks

As per my casual talk with my friend who is in NTPC whose vendor is Tecpro he was not very positive on the company current situation.

tecpro it seemed as per him is going through a cash crunch n is banking heavily on this IPO to see it through.The fact is corroborated by the fact that Tecpro got the sebi approval on 2nd september & is out with an IPO in september itself.
One of the other boarders had pointed out the huge sundry debtor figue for both Tecpro & even va tech wabag.

shud pay specific attention to these figures.

From Reading the below para it looks 4 shares were alloted against the one share with the cost of RS.387 i.e. means the effective cost per share will come out to be 387/4 = Rs.96.75.

We have filed an FC-GPR dated August 3, 2006, as required under the FEMA Regulations 20/2000-RB dated May 3, 2000, with the RBI, to report the issuance of 1,550,120 equity shares of face value Rs. 10 to Metmin. Each of the said equity shares have been issued as bonus shares in the ratio of 4:1 after capitalization of our Company’s free reserve.

If we go through this calculation then the whole dynamics will changed. NEED FURTHER ANALYSIS to reach the issue size.

Dear Gem,

Thanks, for the update.
Please comment on the cost of the selling investors also and accordingly the total size of the issue.

Basically, I want to judge the total size of the issue so as to calculate the chances of firm allotment on full size application.
I think by all measures it will be better than the career and cantabil.

So far as the valuation are concern that can only be commented after the price disclosure. And rather you are better tracking the same.

For me till now 4/5 crisil rating will work to avoid the career in fund allocations.

Thanks

PRUDENT INVESTOR

PLZ ADD A BIT MORE TO UR KNOWLEDGE


Tecpro Systems had tried to come out with an IPO in 2007. This is its second DRHP filing. Avigo Capital, Credit Suisse PE Asia and Macquarie Asia-Pacific Co-Investment Fund are the PE investors in the company.

Kotak Mahindra Capital had also subscribed to shares in 2007 with the DRHP filing but they exited the investment by selling their stake to Metmin Invesment Holdings.

Metmin Investment Holding is a Mauritius based company. There is very little information about the company and its antecedents.

Dear Friends:

Some preliminary analysis:

Out of the total offer of 75.5 lakhs of shares, there will be sale of 13 lakhs of share by the Metmin Investments Holdings Limited (foreign investor). Metmin in fact holds in total 38.75 lakhs shares.
These shares were alloted to them out of coversion of the Covertiable Preference shares issued to them in the year 2006.The conversion of the CPS takes place in year 2007 at 377/- per share.

Conclusions which can be drawn are:
A) Direct Cost per share to the Foreign Selling investor is atleast Rs.387/- [ It seems price will be anyway above this figure]
B) Foreign investor is selling on part of his total holdings i.e.13 lakhs of shares out of total 38.75 lakhs shares (Mere around 33%).[It shows the confidence of the foreign investor in the company]

If above analysis is correct then the size of the issue will be well above the 300Crores. In nutshell reasonably good size of IPO and fair chances of allotment to all.
----------------------------------------------------------------
Disclaimer: I am doing the above analysis for the first time and there are equal chances of its getting wrong also.Figures are taken from the DRHP. Be cautious

EVEN TECHPRO IPO HOLDS LOT OF PROMISE , NOW SEE THE NOS:-

1) FY'10 SALES = RS.1485CR, PAT = 109CR,
2) NO OF SH POST IPO = 5.05 CR SHARES
2) FY'10 EPS = RS.22


NOW TAKE LOOK AT THE PEERS:-

1) IT PEERS TARDES AT 18-25 PE, VIZ ELECON, MACNALLY, TRF ETC.

CONCLUSION : IT THE IPO PRICED UPTO RS. 350 - 400 , IT IS ALSO A JACKPOT FOR TARGET OF 440 - 480. MIND IT ITS NOT A SMALL CO IN ITS PEER ITS A VERY GOOD IPO TOO.ITS IPO SIZE MAY ALSO BE GOO RS 250-300 CR.

MORE RESEARCH REQUIRE BEFORE INVESTING I HAVE NOT CHECKED THE BV OF THE CO AND ITS PEERS.