Vascon Engineers Limited IPO Message Board (Page 4)

this ipo will list around 195 and allotment will be at 165 as the issue is subscribed by investors at 165. those have applied will dafinately get Rs. 25 as listing gain and retail investors will get full allotment. so out of all the issues closed on 29/01/2010, Vascon is best for listing gain.

RETAIL KITNA SUB HUA ?

vascon sub. till 4 p.m.
Total Issue Size 10800000
Total Bids Received 13804945
Total Bids Received at Cut-off Price 986230
No. of times issue is subscribed 1.28

1-- vascon till 3 p.m.
2-- syncom till 3 p.m.

vascon eng...
Total Issue Size 10800000
Total Bids Received 12816755
Total Bids Received at Cut-off Price 766430
No. of times issue is subscribed 1.19

Total Issue Size 7500000
Total Bids Received 21303900
Total Bids Received at Cut-off Price 5288940
No. of times issue is subscribed 2.84
retail 2.10 sub. till 3 p.m.

Vascon Engineers Limited IPO (Till 2 p.m)

Category over Subscription
QIB 1.24
HNI 3.27
RET 0.18
EMP 0.35

Total 1.12

What is the current subscription figure ???

NEW IPO NMDC IN MARCH END,,,,,,,,,,,,,,,,

boss....

in sare ipo me se kounse ipo me listing gain ke liye apply karna chahiye ..
smartinvest ki site per vascon ka primium 21,or sycom 5/6 ka primium bata rahe hai......
or market crash hone par primium 0 ho sakta hai?

infinite comp ki listing date kya hai?
please riply.........

Please read carefully.DO NOT APPLY      

NEW ISSUE MONITOR FROM CAPITAL MARKET

Vascon Engineers

CM RATING       38/100

Weaknesses

A major portion of the company's current operation is geographically concentrated with the state of Maharashtra, which accounts for about 73.51% of the current order backlog spread over 70 ongoing EPC contracts and 84.58% of the realty space (developable) under development/ proposed to be developed. Of the total land reserve (developable space), about 44.58% is accounted by Pune and 34.2% is in Thane. The balance is largely in Tier II and Tier III cities such as Belgaum, Coimbatore, Madurai and Nashik etc. Though the realty market in the country has seen renewed demand especially in Tier I cities of Mumbai, National Capital Region of Delhi, Bangalore etc., the Pune market is still subdued and the heavy reliance of the company on the Pune market is a cause of concern. Similarly, the company's project mix of about 15.7 million square feet of commercial space out of its land reserve of 55.36 million square feet of developable space is a cause of concern as the commercial market is yet to pick up unlike the residential market, which rebounded on pent-up demand, at least in major Tier I markets. Moreover, the company's land holdings are largely in Tier II & III cities, where conditions are still subdued and heavy concentration of land reserve in this segment will not contribute much to the growth in near term.

The company's order backlog is largely made of fixed price contracts and, hence, any upward cost push in construction and input services will impact the margin affecting profitability.

One of the directors of the company i.e. Ameet Hariani, was the director of a company declared as a will-full defaulter by the RBI. There are 12 legal cases against Vasudevan R, the promoter of the company, including one criminal revision. But there is no monetary claim. Also, Sansara Hotels (India) has initiated an arbitration proceeding against the company, Marigold Premises, Just Homes (India) and Just Homes Associates on February 23, 2009 on the basis of a rescindment of a development agreement dated March 21, 2007.

VEL has signed a MoU with Sitalakshmi Mills for joint development of 28.2 acres at Pasumalai in Madurai and it has also picked up a 26% stake in the latter. However, Sitalakshmi Mills was subsequently declared sick and if the status does not change, the realty development project might be delayed.

Valuation

Income from operation of the company for the fiscal ended March 2009 stood at Rs 519.47 crore (down 16%) impacted by the realty downturn. Its net profit was lower by 49% to Rs 30.64 crore. The adjusted EPS for FY 2009 was Rs 2.1. However, the pick-up in demand for realty has improved the profitability of the company and thus annualized EPS for the half year ended September 2009 was Rs 5.2. On the price band of Rs 165-185, the P/E works out to 78.8 to 88.1 times of its FY 2009 earnings. However, the PE works out to 31.7-35.6 times of its annualized H1 FY 2010 earnings.

BL Kashyap, an EPC service player, quotes at a PE of 13.3 times of its FY 2009 consolidated earnings. Though the high margin and high realty business may give a push to the margin and profitability, the asking price seems steep compared to listed realty players as well as EPC service players of similar size

MORAL OF THE STORY: DO NOT APPLY

10 & 11 PRASHAD & MK

THIS IS FOR YOU PRASHAD & MK

Valuation ( BY CAPITAL MARKET ) Income from operation of the company for the fiscal ended March 2009 stood at Rs 519.47 crore (down 16%) impacted by the realty downturn. Its net profit was lower by 49% to Rs 30.64 crore. The adjusted EPS for FY 2009 was Rs 2.1. However, the pick-up in demand for realty has improved the profitability of the company and thus annualized EPS for the half year ended September 2009 was Rs 5.2. On the price band of Rs 165-185, the P/E works out to 78.8 to 88.1 times of its FY 2009 earnings. However, the PE works out to 31.7-35.6 times of its annualized H1 FY 2010 earnings. In comparison, Sobha Developers, which is a south based realty builder for third parties, quotes at a P/E of 25.9 times of its FY 2009 consolidated earning, and BL Kashyap, an EPC service player, quotes at a PE of 13.3 times of its FY 2009 consolidated earnings. Though the high margin and high realty business may give a push to the margin and profitability, the asking price seems steep compared to listed realty players as well as EPC service players of similar size.

Regards,
Vishal Mori

10 prashad & 11 mk

please read capital market NIM for vascon, check wether P/E ( p/e = 88 ) calculated by me is correct or not

Regards,
VISHAL

avoid this ipo. confirmed loss in the ipo.

Thanks sreedhar,
the article is very gud.

got the financial results from business standard. Regional focus

Jitendra Kumar Gupta / Mumbai January 25, 2010, 0:56 IST



While Vascon Engineers’ EPC capabilities provide comfort, success in the real estate business will depend on the company’s ability to scale it up.
Vascon Engineers is coming out with an IPO to raise Rs 178-200 crore to fund its EPC contracts and real estate development projects, which are the two primary sources of its revenue. In the real estate segment, the company follows a joint development model. It has acquired land along with other partners to develop commercial and residential projects primarily in Maharashtra. Of this, most of it is in and around its home-town of Pune itself.

EPC: Robust track-record
Over many years, Vascon has successfully developed strong in-house design and construction capabilities to execute large EPC (engineering, procurement and construction) projects for third parties. The company has about 24 years of experience in providing EPC services for building factories, hospitals, hospitality properties, office and residential complexes, shopping malls, IT parks and other buildings. Considering its experience and strong capabilities for quality construction on time, the company has been able to bag projects from some of the well-known names like Cipla, Kirloskar Brothers, Suzlon and Symbiosis among others. Among its ongoing projects include the Rs 207.3 crore Ruby Mills’ commercial complex in Dadar (in Mumbai), a Rs 179 crore HDIL project in Mumbai and the Rs 248 crore commercial building for Delhi International Airport in Delhi. The company’s strengths lie in its ability to deliver quality construction with time.

The EPC business is currently having an order book of Rs 3,200 crore, which is equivalent to 6-7 times its 2008-09 revenues. However, the scope of EPC business is not limited to just third-party projects—the business has been growing on the back of both, in-house as well as third party projects. Of the total order book, Rs 1,200 crore is currently on account of third parties, with the balance from in-house real estate projects.

Real estate: In-house advantage
Leveraging its strengths of its EPC business, Vascon has forayed into the real estate business. Here, the company buys land under different entities, develops it into residential or commercial projects and sells them in the market to generate revenues. However, it follows a joint development model which helps lower the risks while simultaneously providing revenues to its EPC business.

Currently, the company has got about 600 acres of land. The company along with other development entities is in the process of developing 51 real estate projects, with an aggregate saleable area of over 55.36 million square feet. Out of this, the company’s share stands at 29 million square feet of saleable area. Over the next five years, the company will be developing about 18-19 million square feet of area, while rest will be developed in a phased manner in long run. The benefits could be large even if the real estate prices crash given that the company has historically acquired this land bank at a cost of about Rs 140 per square feet. If one adds Rs 1,800-2,000 per square feet of construction cost, the margins will still be better as prices (of its properties) in its markets are estimated to be in the range of about Rs 3,000-3,500 per square feet. Besides, since these properties are developed jointly working capital requirement would not be a hurdle for the projects.

Meanwhile, the advantage will initially be on account of higher EPC revenues coming in the form of construction work to be carried out for these projects. For 18-19 million square fit, about Rs 2,000 crore worth of construction work will flow to the parent company.

Conclusion
Thanks to its EPC business, the company could get through last year’s downturn witnessed in the real estate market. For instance, in 2007-08, both the segments contributed equally to the revenues. But in 2008-09, about 90 per cent of the revenues came from the EPC business. This fiscal year as well, a large part of its revenue will come from the EPC business as some of its real estate projects have been delayed and are only expected to reflect in 2010-11 revenue.
IMPROVED SHOW
in Rs crore FY07 FY08 FY09 H1FY10
Sales 394.8 616.8 519.4 354.6
OPM (%) 19.2 20.0 17.0 15.1
Net profit 34.4 59.9 30.6 23.2
Net profit margin (%) 8.7 9.7 5.9 6.5
RoCE (%) 9.5 9.5 4.8 3.4
RoNW (%) 14.6 19.4 7.9 5

must apply in the strong model EPC business. Will list at 210/+

MUMBAI (Reuters) - Developer DB Realty has set a price band of 468-486 rupees a share for its 15-billion-rupee ($325 million) initial public offer, two sources involved with the transaction said on Monday.

The share sale will open on Jan. 29 and close on Feb 2, one source said.

At the top end of the price band, the company will issue nearly 31 million shares. The share offer carries a greenshoe option for 10 percent of its total size.

Enam Securities and Kotak Mahindra Capital are the book running lead managers to the issue.

(Reporting by Prashant Mehra)

Dear ipoking,May I add DB realty also.DB realty opens on 29.01 & closes on 02.02.Price band is 468-486.

Apply For Ipo. Sure Shot listing gain of Rs.50. Remember its a sure shot gain. Grey Market Rate Rs.45 - Rs. 50. Kostak -2500