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BGR Energy Systems Limited IPO Message Board (Page 93)

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36. Vats |   Link |  Bookmark | November 29, 2007 4:25:19 AM
can somebody rate the IPO to be launched in december so that
everybody can plan & invest in the IPO accordingly , plz share your knowledge on this .....
35. Mr. beginner |   Link |  Bookmark | November 28, 2007 11:19:36 PM
BGR or eClerex... please tell... money crunch is there
34. raja |   Link |  Bookmark | November 28, 2007 7:41:35 PM
Hi 6 Ankush by 12th of December I think we should refund of edewesis i believe not mundra ankush what happened
33. Kamal |   Link |  Bookmark | November 28, 2007 2:35:40 PM
The Company is currently working on three 500 MW Power Projects.
a) Vijayawada Thermal Power Station
b) Kakhatiya Thermal Power Project
c) Khaperkheda Thermal Power Station

For long term it would be good. It would list around 50 - 80% of issue price. Dont miss this IPO.
32. Sandeep Lodha |   Link |  Bookmark | November 28, 2007 2:26:14 PM
It is good issue but issue price is too high but it is good to long term view due to power sector boom
31. VISHAL |   Link |  Bookmark | November 28, 2007 1:16:59 PM
EXPENSIVE AT 480
30. kaushik |   Link |  Bookmark | November 28, 2007 12:03:23 PM
Dear All

Please take care in applying this issue because there is Intimes. Till today We did not received physical refund orders of Mundra.
29. molik shah |   Link |  Bookmark | November 28, 2007 10:00:16 AM
In nutshell, fresh issue by the company would be of 72 lakh equity shares, which would mobilize Rs.345.60 crores at the upper band of Rs.480 while offer for sale is for 62.56 lakh shares and promoters would receive Rs.300.29 crores from this divestment. Equity of the company would rise from Rs.64.80 crores to Rs.72 croes.

The company carries on business in two segments, the supply of systems and equipment and turnkey engineering project contracting. In the systems and equipment business, it designs, engineers, manufactures, sell and services a range of systems and equipments for the power, oil & gas, refinery, petrochemical and process industries. In the turnkey engineering project contracting business, the Company engineers, manufactures, procures, construct and commission projects in the power and oil & gas sector, wherein it takes turnkey responsibility to supply a range of equipment and services, including the civil works required for a project and other work as may be required under the contract for such project.

It executes turnkey contracts to supply the balance of plant (“BOP”) equipment, services and civil works for power generation projects, in which it supplies, from a single source, and balance of the plant, i.e. items other than the boiler, turbine and generator. Having successfully executed BOP contracts, the company has begun to focus on engineering, procurement and construction (“EPC”) contracts, in which it designs, engineers and supply all of the equipment required for a power plant including the boiler, turbine and generator and civil works. BGR is currently executing BOP and EPC contracts, tailored to customer demands.

The business segments and prospects for the coming years are extremely buoyant with good growth and margin visibility. But ultimately, everything has a price tag, which needs to be valued in its right perspective.

For 18 months ending 31st March, 07, the total income of the company was Rs.790 crores, of which, cost of raw material and purchased goods were Rs.560 crores. This has resulted in an EBITDA of Rs.88.50 crores, giving a margin of 11.20%. PBT was at Rs.61.28 crores and PAT was at Rs.39.96 crores, which has resulted into an annualized EPS of Rs.4.11, on equity of Rs.64.80 crores. As the company procures item from outside for its BOP and EPC contracts, working capital requirements are quite high. Due to this, Sundry Debtors as at 31st March, 07 were at Rs.369 crores.

Even during three months ending 30th June, 07, total income was at Rs.245 crores with PBT of Rs.25.25 crores and PAT of Rs.17.50 crores, resulting into an annualized EPS of Rs.10.80 per share. Sundry Debtors on 30-06-07 were at Rs.421 crores, almost 172% of first quarter topline.

Realising huge requirement of working capital to ramp up its business, the company has estimated a working capital requirement of Rs.215 crores, while Rs.83 crores has been estimated for establishing new manufacturing and assembly facilities. The debt burden of the company also sharply improved to Rs.268 crores as at 30-06-07 from Rs.90 crores as at 30-09-05.

The company may report a topline of Rs.1,400 crores and bottomline of Rs.115 crores for FY 08 which would translate into an EPS of Rs.16. As against this, BHEL, maker of Turbines and Boilers, is likely to report an EPS of close to Rs.72 with topline of Rs.25,000 crores and bottomline of Rs.3,500 crores for FY 08. If BHEL is now ruling at a PER of 36 times, what is the justification of valuing this company at a PER of 30 times.

The company does not have its own manufacturing facilities of the equipments and most of them are outsourced. Expertise of the company lies in sourcing and financing coupled with technical expertise of execution. This area of business, bound to have huge competition from large players like Reliance Energy, Engineers India, L&T and other EPC players in the time to come, thus bringing down the margins of the company as well as putting huge working capital pressure. Cash Accruals of Rs.100 crores may not be able to give good growth thereafter.

Considering all these, share looks quite expensive at the upper band of Rs.480. Lower band of Rs.425 seems more reasonable.
28. Ram |   Link |  Bookmark | November 27, 2007 11:12:55 PM
Looks like a good issue... They build both Products and Project for Power sector and Energy. There last finacial year is for 18 months where else the year before is 12 months...
27. Raj Jain |   Link |  Bookmark | November 27, 2007 9:47:50 PM
what is the expectation from BGR energy?
26. soni |   Link |  Bookmark | November 27, 2007 8:18:36 PM
wht about jyothy's premium ?
25. Amit Patel |   Link |  Bookmark | November 27, 2007 8:15:01 PM
HI karan

ME TOO ALSO DONT KNOW MUCH I WILL STUDY AND LET U KNOW BUT BGR ENERGY IS GUD ONE CAN SUBSCRIBE AS U KNOW POWER AND ENERGY SECTOR BOOM IN THE MARKET.....
24. MVS |   Link |  Bookmark | November 27, 2007 8:07:50 PM
Good Issue with reasonable price. Those who did not get any shares in Mundra, invest more in this IPO. Don't miss it
23. K.abban |   Link |  Bookmark | November 27, 2007 6:06:43 PM
eClerx Services Limited IPO has been graded by the credit rating agency, CRISIL. eClerx Services IPO has managed to get a CRISIL IPO Grading of 3 out of a scale of 5. This rating of 3 indicates that the fundamentals of eClerx Services Limited are inline (avearge) with that of other listed companies in India. CRISIL used to give a grading of 1 and 2 to almost all companies coming out with IPO’s, till a few months ago. But now CRISIL seems to have become more generous in giving IPO gradings.

22. ipo spl |   Link |  Bookmark | November 27, 2007 5:50:48 PM
bgr energy is quite big issue [app 650 crore] chances of allotment is reasonable and energy sector is still attractive
21. karan |   Link |  Bookmark | November 27, 2007 5:09:51 PM
amit patel ji this is for u plz o reply
eclerx securities limited kisme deal karta hain aur reliance power kab aa raha hain nd bgr energy kaisa hai ipo
20. karan |   Link |  Bookmark | November 27, 2007 5:07:40 PM
sir eclerx securities limited kisme deal karta hain aur reliance power kab aa raha hain nd bgr energy kaisa hai ipo
19. Amit Patel |   Link |  Bookmark | November 27, 2007 4:47:37 PM
eClerx Services Ltd

Open Date :- 4/12/2007
Close Date :- 7/12/2007

Issue Price :- 270 to 315

Number or Shares:- 20

Issue Size (Rs. Cr) :- 101.00
18. smverma |   Link |  Bookmark | November 27, 2007 2:51:18 PM
As per sptulsian on the upper band it will trade at 30 PE
where as BHEL trades at 35 PE. He feels comforable at lower band.
17. PP |   Link |  Bookmark | November 27, 2007 2:42:33 PM
Are yaar phir se Intime