CDSL IPO: A Solid Issue coming on June 19th: Apply

What is CDSL?

Central Depository Services India Limited (CDSL) is a depository that holds securities in dematerialized form and facilitates trading and settlement of securities to be processed by book entry. It is the second largest central depository of securities in India, based in Mumbai, Maharashtra. The depository began its operations in February 1999. It is promoted by Bombay Stock Exchange in association with prominent banks of the nation, i.e. State Bank of India, Union Bank of India, Bank of Baroda, Bank of India, Standard Chartered Bank, etc…

CDSL also offers facilities to issuers to credit securities to a shareholder’s or applicant’s demat accounts; Know your customer(KYC) services in respect of investors in capital markets to capital market intermediaries; and facilities to allow holding of insurance policies in electronic form to the holders of these insurance policies of various insurance companies. The primary competitor of CDSL is NSDL(National Securities Depository Ltd).

NSDL, the first and largest depository in India, established in August 1996 and promoted by institutions of national stature responsible for economic development of the country has since established a national infrastructure of international standards that handles most of the securities held and settled in dematerialized form in the Indian capital market.

CDSL IS OFFERING IPO:

CDSL-2

CDSL is the first mover for IPO in the depository segment. After the blockbuster debut at premium of 35%, BSE had astonished the markets in early months of 2017. Now, investors are bracing themselves for the much-awaited initial public offering (IPO) of BSE promoted Central Depository Services Limited (CDSL). CDSL would be the first depository in the country to get listed on the Indian bourses.

Market speculates that the CDSL IPO may have price band of Rs 145 to Rs 149 per share to rise around Rs 520 cr. The IPO is expected to open on June 19.

The depository is seeking valuations of around Rs 1,500 crore and BSE’s stake in the company is likely to come down to 24% from current holding of 50%, according to sources quoted by a leading national news agency.

Issue Detail:

  • Issue Open
  • Issue Type: Book Built Issue IPO
  • Issue Size: 35,167,208 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
  • Face Value: Rs 10 Per Equity Share
  • Issue Price: Rs – Rs Per Equity Share
  • Market Lot:
  • Minimum Order Quantity:100
  • Listing At: 30th june ,onNSE

Tentative timetable in respect of the Offer:

  • Bid/Offer Opens On: 19 June 2017
  • Bid/Offer Closes On: 21 June 2017
  • Issue Price: Rs 113 – Rs 115 per Equity Share
  • Offer for Sale of 3,51,67,208 Equity Shares @upper price band = Rs 404.42 Crores
  • Finalization of Basis of Allotment:
  • Initiation of refunds
  • Credit of Equity Shares to demat accounts:
  • Commencement of trading of the Equity Shares on the Stock Exchanges:

The list of shareholders with effect from 14th October, 2016 is as under.

Sr.no. Name of shareholders Value of holding (in Rupees Lacs) % terms to total equity
1 BSE Ltd. 5,229.79 50.05
2 Bank of India 582 5.57
3 Bank of Baroda 530 5.07
4 State Bank of India 1,000.00 9.57
5 HDFC Bank Limited 750 7.18
6 Standard Chartered Bank 750 7.18
7 Canara Bank 674.46 6.45
8 Life Insurance Corporation Of India 433.67 4.15
9 Union Bank of India 200 1.91
10 Bank of Maharashtra 200 1.91
11 The Calcutta Stock Exchange Limited 100 0.96
12 Others 0.08 0
Total 10450 100

As it can be seen BSE is a major promoter of CDSL. So the major proceeds from this issue will go to BSE and not to CDSL since this is a pure Offer for Sale (existing shareholders are exiting via IPO) as it can be seen BSE is a major promoter of CDSL. So the major proceeds from this issue will go to BSE and not to CDSL since this is a pure Offer for Sale (existing shareholders are exiting via IPO) SBI which holds 9.57 per cent now will hold 5 per cent after the IPO, while Bank of Baroda’s stake will come down to 2.99% from 5.07%. The Calcutta Stock Exchange, which holds 0.96%, will cease to be a shareholder after the IPO. The net offer would constitute 32.98%of CDSL’s post offer paid up equity share capital.

CDSL_intro

CDSL FINANCIAL GROWTH:

FY2012 FY2013 FY2014 FY2015 FY2016
Total 120.7 124 122.8 127.2 139.4
Revenue
Total 39.8 57.6 61.2 66.2 63.5
Expenses
Profit after 55.3 49.9 49.3 43.7 74.1
Tax
Net margin 45.8 40.2 40.1 34.4 53.2
(%)

Stock trading in India is still considered niche and risky by a large portion of investing public, including people who end up investing in stock markets indirectly through mutual funds. However, the scenario is changing gradually and this is a big positive for players like CDSL. The company has seen its revenues grow over time and even though the top line growth has not been high, it is steady. A graphical illustration of revenue growth for CDSL.

CDSL’s consolidated financial performance (in INR crore)

Stocks trading were not considered a good thing in the recent past in India, but currently the number of investors investing in stocks has increased gradually through direct means or through indirect means by investing in mutual funds. This is a very positive sign to invest in CDSL.

CDSL has around 42% market share and it is also increasing day by day.

The company has seen its revenues grow at a CAGR of 3.67% over the past four years with the revenue in FY2016 being Rs 139.4 crore.

At Rs. 149 per share, company’s market cap will be Rs. 1,557 crore, with EV of Rs. 1,009 crore. This translates into EV/EBITDA multiple of 8.4x and 7.3x based on FY17 and FY18E earnings, and a PE multiple of 18x and 17x respectively, which is not expensive. Since there are no listed peers, relative valuation comparison cannot be done. However, on 14th Oct 2016, BSE sold 43.37 lakh equity shares representing 4.15% stake in the company to LIC at Rs. 79 per share. Upper end of Rs. 149 is 89% jump in sale price, in barely 8 months, despite the seller being the same, and FY17 profit growing only in double digit (and not doubling) during this period. While current IPO pricing is a steep premium to last transaction price, based on company’s steady growth and strong fundamentals, IPO valuations, nevertheless, appear fair.

CDSL_5

CDSL has paid dividends regularly to its shareholders in the last four years and considering that BSE will continue to remain the biggest shareholder; this policy is unlikely to change anytime soon. Out of the Rs 74.1 crore, it earned last year, CDSL paid a total of Rs 31.4 crore in the form of dividends. CDSL paid a dividend at the rate of 25% (Rs 2.5 per share) and this was up from 22% in FY2015.

So even if the market share is 42%, there are only two entities providing the same service. In the near future, CDSL will definitely try to capture more market share.

  • Conclusion:

It is a known fact that less than 2% invest directly in stock markets through demat accounts. Compare that with double digits in developed economies such as US, UK and China. This poses a great opportunity for this sector since more people will open demat accounts and CDSL/NSDL will get more business. It is safe to say that the party is just getting started for these 2 businesses.

Also since CDSL is the first one to list, it is set to get a first mover advantage as experience by BSE when it listed.

 

Contributed by:

Nagarjuna Konduru

Tejaswini Konda

GST Effect on Gold, Textiles, Jewellery and Yarn

The much talked about GST is very close to its implementation. With the most recent meeting revealing the rates on a few other goods and services, the more prominent ones being the rates on gold, jewellery, textiles and yarn, surely it is important to review them. Also let us have a look at the other sectors being effected by GST.

GST

With only a month left for the ‘Goods and Services Tax’, the GST to start showing its contribution to the economy of India, people from all sectors in the country are eager to realise its true effect. Prime Minister Modi has already laid down multiple strategies for beginning the change in the country that people have been looking forward to since many years. PM Narendra Modi, very recently pitched GST as among the most historic business reforms in India and urged German investors to make use of one of the most liberal FDI regimes in the world. While addressing the Indo­German business forum in Berlin, he said “We are on the path of making India a global manufacturing hub… India is already the sixth largest manufacturing nation in the world… India remains a bright spot in the subdued economic landscape across the world.” Surely from the confidence that shows in the Prime Minister’s words, it is indeed encouraging for the citizens of India to embrace the changes due to GST, just like the people have embraced the change due to Demonetisation. The reforms for GST are being updated with every single meeting being held, so it’s essential we have an analysis of the decisions taken in these meetings. Let us have a look at the various aspects and structure of GST and the outcomes of the meetings.

Goods and Services Tax (GST) seeks to replace multiple central taxes such as excise duty, countervailing duty, cesses and state taxes including value-­added tax, octroi, purchase tax and luxury tax with a single levy. The GST Council has decided upon a four ­slab structure for both goods and services, with the rates being 5%, 12%, 18% and 28%. Luxury and sin goods such as tobacco face an extra cess. A cess on certain goods will also be levied to create a fund for compensating states for any revenue loss in the first five years of the new tax regime.

The bills are the Central Goods and Services Tax Bill (CGST), the Integrated Goods and Services Tax Bill (IGST) the Goods and Services Tax (Compensation to States) Bill and the Union Territory Goods and Services Tax Bill (UTGST).

The Goods and Services Tax (GST) has been one of the key things that has caught the attention of the market given its implications on earnings of companies. The government has kept a large number of items under 18% tax slab. The government categorised 1211 items under various tax slabs.

Below is a list of some of the notable goods :

Yarn & fabrics cotton 5%
Textile 5%
Readymade garments 12%
(Apparel below Rs.1000) 5%
Biscuits 18%
Gems&Jewellery 3%
Diamonds 3%
Rough diamond 0.25%
Gold&Silver 3%
Beedi (without cess) 28%
Manmade fibre 5%
Footware<500 5%
Footware>500 18%
synthetic fibre 18%
Packaged food item sold under registered trade mark 5%
Agri machinery 5%
Silk and jute 0%

Here is the complete updated list:

No tax

Goods

No tax will be imposed on items like Jute, fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, salt, bindi. Sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom, etc.

Services

Hotels and lodges with tariff below Rs 1,000, Grandfathering service has been exempted under GST

GST gold.jpg

5%

Goods :
Items such as fish fillet, Apparel below Rs 1000, packaged food items, footwear below Rs 500, cream, skimmed milk powder, branded
paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent, lifeboats will attract tax of

Services :
Transport services (Railways, air transport), small restaurants will be under the 5% category because their main input is petroleum,
which is outside GST ambit.

12%

Goods  :
Apparel above Rs 1000, frozen meat products , butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices,
Bhutia, namkeen, Ayurvedic medicines, tooth powder, agarbatti, colouring books, picture books, umbrella, sewing machine, cellphones
will be under 12 % tax slab.

Services :
Non­AC hotels, business class air ticket, fertilisers, Work Contracts will fall under 12 per cent GST tax slab

18%
Goods :
Most items are under this tax slab which include footwear costing more than Rs 500, Bidi Patta, Biscuits (All catogories), flavoured
refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral
water, tissues, envelopes, tampons, notebooks, steel products, printed circuits, camera, speakers and monitors.
Services :
AC hotels that serve liquor, telecom services, IT services, branded garments and financial services will attract 18 per cent tax under
GST.

28%
Goods :
Bidis, chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with chocolate, pan masala, aerated water,
paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher,
weighing machine, washing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles, motorcycles,
aircraft for personal use, will attract 28 % tax ­ the highest under GST system.
Services :
5­star hotels, race club betting, cinema will attract tax 28 per cent tax slab under GST

Once the bills are passed in by both houses of Parliament, the government will issue a notification after the President’s consent. The states will then pass a separate law — the State GST (SGST) bill — to roll out the reform.

GST textiles

 

Prime Minister Narendra Modi will take stock of the readiness of the country for the roll out of goods and services tax on July 1. The Centre is in no mood to postpone the scheduled implementation and is making all efforts to ensure that the switchover to GST remains as smooth as possible for both industry as well as consumers. The GST Council has favoured implementation of the new tax system from July 1, but a section of industry and some states such as the West Bengal have demanded that it be postponed to September. Some industrial segments are unhappy with the rates and have approached the government seeking changes.

The government has lived up to being a “people’s government” by taking steps to address the concerns of the individuals after several companies complained about an increase in taxation and a consequent rise in prices when GST is rolled out as expected on July 1.The government shall soon call companies from specific industry groups to explain how the goods and services tax (GST) will lead to a decrease in the taxes they’ll need to pay and hear them out. A major outreach programme has also been drawn up to educate consumers about lower tax under GST. Officials claim that a lot of effort has been made to keep tax rates neutral or lower them under GST. The government made detailed calculations internally before arriving at the rates that were approved by the GST Council.
A committee of officials, from state and central governments, examined the tariff structure of each item before the rates were taken to the
council for its consideration. Industry said the GST will raise levies but the government has pointed out that this will be offset by input credits. It is believed that the tax incidence should not increase as companies will now have the advantage of input tax credit that they did not have earlier. The companies can raise any issues that have at these interactions.
The officials are also expected to carry out an outreach programme to
educate consumers about how prices should drop after GST is rolled out.
The government has already clarified that total tax incidence on commodities such as tea, sugar, coffee and services such as direct­-to-home (DTH) broadcast and others would decline.

More than a decade in the making, the GST is expected to shore up government revenue and spur economic growth by 1-2 percentage points. The government has gone on record to state that the tax burden will be reduced, but experts say the GST will stoke inflationary trends in the initial years. Although any change due to the GST implementation might bring about resistance among the Indian crowd initially, however, we should also consider the future prospects of it and the benefits it can bring to India’s economy. Decades later, India has finally got a government like The Modi Government, which, ever since its inception, has been bravely implementing major change-oriented strategies, promising a better India.

 

 

PSP Projects Ltd Book Built Issue (PSP Projects IPO) Detail

Incorporated in 2008, PSP Projects Ltd is an India based construction company offering a diversified range of construction and allied services across industrial, institutional, government, government residential projects.

The company constructs industrial buildings for pharmaceutical plants,food processing units, engineering units and manufacturing and processing facilities and buildings for hospitals and healthcare services, educational institutes, malls, hospitality services, and corporate offices. They also undertakes government projects and government residential projects and government residential projects;and constructs buildings for group housing and townships, as well as independent residences for select private customers, as well as manufactures ready mix concert.

Rear view of architect holding blueprints while pointing at construction site

They have successfully executed a number of prestigious projects across Gujarat. One of the first major projects that they completed was the construction of the GCS Medical College, Hopspital and Research Center( Managed by the Gujarat Cancer Society) in June 2012.

Company Promoters:

The Promoters of the company are:

  1. Mr. Prahaladbhai Shivrambhai Patel :Prahaladbhai Shivrambhai Patel, aged 53 years, is the Chairman and Managing Director and CEO of the Company. He holds a Bachelor’s degree in civil engineering. Prior to incorporation of the Company, he had been carrying on the business of civil construction by way of a proprietorship firm. He has over 30 years of experience in the business of construction and has played a significant role in the development of the business. He has also been featured in the book titled “Business Game Changer: Shoonya se Shikhar” authored by Prakash Biyani and Kamlesh Maheshwari for completing government’s infrastructure project before the scheduled time for which he also received appreciation of Prime Minister, Mr. Narendra Modi. He has also been awarded by the Gujarat Innovation Society with the Dena Bank Hercules Award on “An innovative and quality makes them fastest growing Construction and Infrastructure Company”.
  • Driving License Number : GJ0119860018823
  • Voter Identification Number : ZCU2513455
  1. Mrs. Shilpaben Patel :Shilpaben Patel, aged 50 years, is the whole-time Director of the Company. She holds a bachelor’s degree in commerce from Gujarat University. She has experience in administration. She has been a Director of the Company since incorporation. She participates in the corporate social activities of the Company and is the chairman of the CSR committee.
  • Voter Identification Number : ZCU2513471

Objects Of The Issue:

The objects of the issue are to:

  1. Funding working capital requirements of the company
  2. Funding capital expenditure requirements of the company. And
  3. General corporate purpose

Issue Details:

  • Issue Open: May 17,2017 to May 19,2017
  • Issue Type: Book Built Issue IPO
  • Issue Size: 10,080,000 equity shares of Rs 10 aggregating up tp Rs 211.68 Cr

Fresh Issue of 7,200,000 eqity shares of Rs 10 aggregating up to Rs[.] Cr

Offer for sale of 2,880,000 equity shares of Rs 10 aggregating up to Rs[.] Cr

  • Face Value: Rs 10 per equity share
  • Issue Price: Rs 205-Rs 210 per Equity share
  • Market Lot: 70 share
  • Minimum Order Quantity: 70 Shares
  • Listing at: BSE, NSE

PSP Projects Ltd
PSP House, opposite Celesta Courtyard,
opposite lane of Vikram Nagar Colony,
Iscon-Ambli Road, Ahmedabad – 380 054
Phone: +91 79 26936200/300/400
Fax: +91 79 26936500
Email: grievance@pspprojects.com
Website: http://www.pspprojects.com

S Chand and Company Ltd IPO (S Chand and Company IPO) Detail

S Chand and Company Ltd Incorporated in 1970, S Chand And Company Limited operates as an education content company in India. The company develops and delivers content, solutions, and services in the education K-12, higher education and early learning segments.

Company is involved in publishing, printing, sale, purchase, export, and import of various books and other literary work, agency ship and distribution of publishers for books and other literary work, selling of educational toys, and publishing books for children, schools, colleges, and universities as well as digital content and interactive learning systems to schools and running pre-schools.

1940048

The company also provides digital data management services and digital content books to schools and colleges, solutions for higher education in colleges, universities, and cover designing services of books, journals, tabloids, magazines, bulletins, brochures, and periodicals in the form of hard copy, compact disks, and e-forms.S Chand and Company Ltd offers 53 consumer brands across knowledge products and services including S.Chand, Vikas, Madhuban, Sarswati, Destination Success and Ignitor. The company also exported its printed and digital content to Asia, the Middle East, Africa and internationally.

Objects of the Issue:

  1. Repayment of loans availed by the company and one of their subsideries, EPHL, which were utilized towards funding the acquisition of chaya.
  2. Repayment/prepayment in full or in part of certain loans availed of by the company and their subsidiaries, VPHL and NSHPL and general corporate purpose.

Issue Detail:

»»  Issue Open: Apr 26, 2017 – Apr 28, 2017
»»  Issue Type: Book Built Issue IPO
»»  Issue Size:
›  Fresh Issue of [.] Equity Shares of Rs 5 aggregating up to Rs 300.00 Cr
›  Offer for Sale of 6,023,236 Equity Shares of Rs 5 aggregating up to Rs [.] Cr
»»  Face Value: Rs 5 Per Equity Share
»»  Issue Price: Rs 660 – Rs 670 Per Equity Share
»»  Market Lot: 22 Shares
»»  Minimum Order Quantity: 22 Shares
»»  Listing At: BSE, NSE

Company Financials:

Particulars        For the year/period ended(in Rs. Million)
  31-Dec-16 31-Mar-16 31-Mar-15 31-Mar-14 31-Mar-13 31-Mar-12
Total Assets 7,431.94 6,854.89 5,315.98 4,242.82 3,988.05 2,076.88
Total Revenue 922.12 2,822.53 2,357.88 2,300.32 1,921.72 1,713.21
Profit After Tax (PAT) (300.39) 164.80 76.85 108.62 71.65 88.53

Company Promoters:

  1. Dinesh Kumar jhunjhnuwala : Mr. Dinesh Kumar Jhunjhnuwala, aged 56 years, is an Executive Director of our Company. He has received basic education. He has been associated with our Company since 2004 and accordingly, has over 11 years of experience in the knowledge products and services industry. He was appointed as an Executive Director on July 1, 2011.

Voter Identification Number: NWD4175808                                                                                     Driving License Number : XD4677671

  1. Neerja Jhunjhnuwala: Ms. Neerja Jhunjhnuwala, aged 52 years, is a Promoter of our Company. She is a resident of India. She has received basic education. She has been associated with our Company since 2004 and accordingly, has over 11 years of experience in the knowledge products and services industry. She was appointed as an Executive Director on July 1, 2011.

Voter Identification Number: NWD4175824
Driving License Number : K1109537

  1. Himanshu Gupta: Mr. Himanshu Gupta, aged 38 years, is the Managing Director of our Company. He holds a bachelor‘s degree in commerce from the University of Delhi. He has been associated with our Company since 2000 and accordingly, has over 15 years of experience in the knowledge products and services industry. He was appointed as the
    Managing Director on July 1, 2007. He was the vice president (south) of the Federation of Indian Publishers for the year 2012-2013. He is a recipient of “Young Publisher Award” by the Federation of Educational Publishers in India for the year 2011.

Voter Identification Number: ARE2021698
Driving License Number : P03062001277011

S Chand and Company Ltd
Ravindra Mansion,
Ramnagar,
New Delhi 110055
Phone: +91 11 4973 1800
Fax: +91 11 2367 7446
Email: investors @schandgroup.com
Website: http://www.schandgroup.com

Shankara Building Products Ltd IPO (Shankara Buildpro IPO) Detail

Shankara Buildings Products Ltd Incorporated in 1995, Shankara Building Products Ltd is retailers of home improvement and building products in India. They offer a wide range of products at their stores which includes structural steel, welding accessories, primers, solar heaters, plumbing , tiles, sanitary ware,water tanks, plywood, kitchen sinks, lighting and other allied products.

As of September 24, 2016, they operated 100 Shankara Buildpro stores covering the end user segments of urban and semi-urban markets in Andhra Pradesh, Goa, Gujarat, Karnataka, Kerala, Maharashtra, Odisha, Tamil Nadu, Telangana, and Puducherry. The company also manufactures, assembles, processes, trades in, imports, exports, or deals in a range of steel sheets, steel roofing sheets, Walling products, accessories, and steel structures and purlins used for construction of various types of building structures as well as steel pipes, tubes, pipe fittings, iron steel, allied products and engages in general wholesale trading activities.1542003

They serves home owners, architects and contractors and small enterprises and housing, general engineering automotive, renewable energy, agriculture, and construction and infrastructure sector. They also carry reputed third party brands such as Sintex, Uttam Galva, Uttam Value, Futura, APL Appolo and Alstone and their own brands such as Century Roof, Ganga and Loha at their retail stores.

Objects of the Issue:                                                                                                                              The  offer comprises of the fresh issue and offer for sale.                                                          Offer for sale                                                                                                                                          The company will not receive any proceeds from the fresh issue towards the following objects.                                                                                                                                                 Requirement of funds                                                                                                                        The company proposes to utilise the Net proceeds from the fresh issue towards the following objects:

  1. Repayment or Pre-payment of loans of the company.
  2. General corporate purpses (collectivity, referd to as the “Objects”).
Issue Open Date Issue Closing Date Application Money Allotment Money
22/03/2017 24/03/2017 460.00  

 Face Value: Rs 10 Per Equity Share                                                                                                      Issue Price: Rs. 440 – Rs. 460 Per Equity Share 
 Market Lot: 32 Shares 
 Minimum Order Quantity: 32 Shares

Lead Managers Registrar Listed at
EQUIRUS CAPITAL PRIVATE LIMITED
HDFC BANK LIMITED
IDFC BANK LTD.
KARVY COMPUTERSHARE PRIVATE LIMITED
Karvy Selenium Tower B, Plot No 31-32, Gachibowli, Financial Dist, 
Hyderabad, Telangana – 500032
Phone: 67162222 Fax: 23431551
BSE
NSE

 

Company Finacials:

Particulars For the year/period ended (in Rs. Million)
  31-Dec-2016 31-Mar-2016 31-Mar-2015 31-Mar-2014 31-Mar-2013 31-Mar-2012
Total Assets 6,046.35 5,913.15 5,505.20 5,956.44 5,724.80 4,559.90
Total Revenue 14,576.79 17,750.07 17,204.70 18,840.21 17,024.89 13,855.32
Profit After Tax(PAT) 137.38 109.77 42.47 193.38 271.24 277.75

 Company Promoers:                                                                                                                                   1.Mr.Sukumar Srinivas

Mr. Sukumar Srinivas :Sukumar Srinivas is the Managing Director of the Company. He holds a bachelor’s degree in commerce from Loyola College, Chennai, University of Madras, and a post graduate diploma in business management from the Indian Institute of Management, Ahmedabad. He has been associated with the Company since its incorporation and has 33 years of experience in the building products industry. Prior to joining the Company, he was associated with Gemini Steel Tubes Limited in various capacities and as a partner of Shankara Agencies and Shankara Steel and Tubes. He currently holds the position of the President of The Karnataka Pipe Dealer’s Association.

Voter Identification Number : MCL5074174
Driving License Number : TN0719800003072

Contact Information                                                                                                                              Shankara Building Products Ltd
G2, Farah Winsford,
No. 133, Infantry Road,
Bengaluru 560 001
Phone: + 91 80 4011 7777
Fax: + 91 80 4111 9317
Email: info@shankarabuildpro.com
Website: http://www.shankara buildpro.com

Avenue Supermarts Limited -IPO

Incorporated in 2002, Avenue Supermart Limited is Mumbai based supermarket chain D-Mart. Company is among the largest and the most profitable F&G retailer in India. Company offer a wide range of products with a focus on the foods, Non-Foods(FMCG) and general Merchandise &  Apparel product categories.

Company has 112 stores located across 41 cities in India. Company operate and manage all its stores. Company also operate distribution centres and packing centres which form the backbone of the supply chain to support its retail store network. Company has 21 distribution centres in Maharashtra, Gujarat, Telangana and Karnataka.

Issue Details:

  • Issue Open: Mar 8, 2017 – Mar 10, 2017
  • Issue Type: Book Built Issue IPO
  • Issue Size:62,393,631 Equity Shares of Rs 10 aggregating up to Rs 1,865.57 Cr
  • Face Value: Rs 10 Per Equity Share
  • Issue Price: 295 – Rs. 299 Per Equity Share
  • Market Lot: 50 Shares
  • Minimum Order Quantity: 50 Shares

Objects of the issue:

The net proceeds of the IPO are proposed to be used as set forth below:

  1. Repayment or prepayment of a portion of loans and redemption or earlier redemption of NCDs availed by the Company;
  2. Construction and purchase of fit outs for new stores;
  3. General corporate purposes.

 

 1915734

Company Financials:

Particulars     For the year/period ended (in Rs. Million)
  31-Mar-2016 31-Mar-2015 31-Mar-2014 31-Mar-2013 31-Mar-2012
Total Assets 31,001.94 23,548.12 18,076.48 14,920.74 11,908.76
Total Revenue 86,061.05 64,576.89 47,023.25 33,551.04 22,224.09
Profit After Tax(PAT) 3,212.07 2,116.89 1,613.72 938.55 604.06

 

Lead Managers Registrar Listed at
AXIS CAPITAL LTD, EDELWISE FINANCIAL SERVICES LTD. HDFC BANK LIMITED, ICICI SECURITIES LTD , INGA CAPITAL PRIVATE LIMITED, JM FINANCIAL INSTITUTIONAL SECURITIES LIMITED,

KOTAK MAHINDRA CAPITAL COMPANY LTD,

MOTILAL OSWAL INVESTMENT ADVISOR PVT.LTD SBI CAPITAL MARKET LIMITED

Link Intime Indial Private Limited C-13, Pannalal Silk Mils Compound, L.B.S Marg, Bhandup (West) Mumbai,400078 Phone:61715400   Fax:25960329  

BSE

NSE

 

Company Promoters:

The Promoters of the Company are:

  1. Radhakishan S. Damani;
    2. Gopikishan S. Damani;
    3. Shrikantadevi R. Damani;
    4. Kirandevi G. Damani;
    5. Bright Star;
    6. Royal Palm Trust;
    7. Bottle Palm Trust;
    8. Mountain Glory Trust;
    9. Gulmohar Trust; and
    10. Karnikar Trust

1.Radhakishan S. Damani: aged 61 years, is one of the Promoters of the Company.He is a resident Indian national. He resides at B – 2, 30th Floor, Prithvi Apartments CHS Limited, 21 Altamount Road, Mumbai – 400 026. He completed his first year commerce examination from the University of Mumbai. He has over 25 years of experience in the securities market. He began his career in the ball bearing business. Thereafter, he began his business in stock trading and he was granted registration as a stock broker by SEBI in the year 1992. Subsequently, in the year 1997, his membership was converted into corporate membership in the name of Damani Shares and Stock Brokers Private Limited. He founded Bright Star, one of the promoters of the Company, in the year 1989 to carry the business of dealing and investments in securities and susequently diversified his business in the retail industry through Koop Consumer Services Private Limited in the year 1999. Pursuant to the Scheme of Amalgamation, Koop Consumer Services Private Limited was merged into the Company. He has been instrumental in building a company that constantly strives towards developing a deep understanding of customer needs and right products. He is also a director on the board of Bright Star, Align Developers Private Limited, Derive Trading and Resorts Private Limited, 7 Apple Hotels Private Limited and Indian Institute of Human Settlements.

Driving Licence Number: MH0120090062352

Voter Identification Number: MT/04/019/265077

Gopikishan S. Damani :aged 59 years, is one of the Promoters of the Company. He is a resident Indian national. He resides at B – 2, 30th Floor, Prithvi Apartments CHS Limited, 21 Altamount Road, Mumbai – 400 026. He has completed his secondary school certificate examination from Maharashtra State Board of Secondary Education, Poona Divisional Board. He has over 25 years of experience in securities market. He was granted registration as a stock broker by SEBI in the year 1992. Subsequently, in the year 1995, his membership was converted into corporate membership in the name of Maheshwari Equity Brokers Private Limited. He is also a director on the board of Maheshwari Equity Brokers Private Limited, Bright Star, Shubhchintak Properties Private Limited, GSD Metals Private Limited, Align Developers Private Limited, Trishala Realty Private Limited, Avishkar Technoventure Private Limited, Nekian Estate Consultants Private Limited, JSM Developers Private Limited and Nahar Seth and Jogani Developers Private Limited. He has been awarded the Rashtriya Samman on April 7, 2000 for being one of the highest tax payers during Assessment Years 1995 to 1999.

Voter Identification Number : MT/04/019/265076

Shrikantadevi R. Damani : aged 57 years, is one of the Promoters of the Company. She is a resident Indian national. She resides at B -2, 30th Floor, Prithvi Apartments CHS Limited, 21 Altamount Road, Mumbai – 400 026. She has completed her higher secondary school certificate examination from Sitaram Poddar School, Mumbai. She is also a director on the board of Bright Star, Nekian Estate Consultants Private Limited, GSD Metals Private Limited, Trishala Realty Private Limited and Derive Trading and Resorts Private Limited.

Driving License Number: MH0120090089312

Voter Identification Number : MT/04/019/2650

Kirandevi G. Damani :aged 52 years, is one of the Promoters of the Company. She is a resident Indian national. She resides at B -2, 30th Floor, Prithvi Apartments CHS Limited, 21 Altamount Road, Mumbai – 400 026. She completed her secondary school certificate examination from Shree Sharda Balika N.M Vidhyalya, Nepal. She is a director on the board of Maheshwari Equity Brokers Private Limited.
Voter Identification Number : MT/04/019/265074

Bright Star : Bright Star was incorporated as Bright Star Investments Private Limited on September 20, 1989 as a private limited company under the Companies Act, 1956. The name of Bright Star changed to Bright Star Investments Limited pursuant to a fresh certificate of incorporation on July 1, 1998. The name of Bright Star was changed to its present name pursuant to a fresh certificate of incorporation on April 15, 1999. The registered office of Bright Star is situated at 903, Dalamal House, 206 J B Marg, Nariman Point, Mumbai – 400021. Bright Star is currently in the business of investments in capital markets. Bright Star has filed an application for registration as an NBFC with the RBI on January 16, 2017.

Royal Palm Trust :Royal Palm Trust was formed pursuant to a trust deed dated December 10, 2009 (the “Trust Deed”). The trustees of Royal Palm Trust are Radhakishan S. Damani, Shrikantadevi R. Damani, Jyoti Kabra, Madhu Chandak and Manjr Chandak. The registered office of Royal Palm Trust is at 903, Dalamal House, 206 J B Marg, Nariman Point, Mumbai – 400021. The overall objective of Royal Palm Trust is to hold assets settled in Royal Palm Trust and further added thereto, and to distribute the income, assets, trust fund including corpus after deducting all trust expenses and liabilities for the beneficiaries in the manner provided in the Trust Deed. Radhakishan S. Damani is the settlor of Royal Palm Trust. The primary beneficiary of Royal Palm Trust is Madhu Chandak.

Bottle Palm Trust :Bottle Palm Trust was originally formed pursuant to a trust deed dated December 10, 2009 (the “Trust Deed”). The trustees of Bottle Palm Trust are Radhakishan S. Damani, Shrikantadevi R. Damani, Jyoti Kabra, Madhu Chandak and Manjri Chandak. The registered office of Bottle Palm Trust is at 903, Dalamal House, 206 J B Marg, Nariman Point, Mumbai – 400021. The overall objective of Bottle Palm Trust is to hold assets currently settled in Bottle Palm Trust and further added thereto, and to distribute the income, assets, trust fund including corpus after deducting all trust expenses and liabilities for the beneficiaries in the manner provided in the Trust Deed. Radhakishan S. Damani is the settlor of Bottle Palm Trust. The primary beneficiary of Bottle Palm Trust is Manjri Chandak.

Mountain Glory Trust :Mountain Glory Trust was originally formed pursuant to a trust deed dated December 10, 2009 (the “Trust Deed”). The trustees of Mountain Glory Trust are Radhakishan S. Damani, Shrikantadevi R. Damani, Jyoti Kabra, Madhu Chandak and Manjri Chandak. The registered office of Mountain Glory Trust is at 903, Dalamal House, 206 J B Marg, Nariman Point, Mumbai – 400021. The overall objective of Mountain Glory Trust is to hold assets currently settled in Mountain Glory Trust and further added thereto, and to distribute the income, assets, trust fund including corpus after deducting all trust expenses and liabilities for the beneficiaries in the manner provided in the Trust Deed. Radhakishan Damani is the settlor of Mountain Glory Trust. The primary beneficiary of Mountain Glory Trust is Jyoti Kabra.

Gulmohar Trust :Gulmohar Trust was originally formed pursuant to a trust deed dated December 10, 2009 (the “Trust Deed”). The trustees of Gulmohar Trust are Radhakishan S. Damani, Gopikishan S. Damani, Kirandevi G. Damani, Madhu Chandak and Manjri Chandak. The registered office of Gulmohar Trust is at 903, Dalamal House, 206 J B Marg, Nariman Point, Mumbai – 400021. The overall objective of Gulmohar Trust is to hold assets currently settled in Gulmohar Trust and further added thereto, and to distribute the income, assets, trust fund including corpus after deducting all trust expenses and liabilities for the beneficiaries in the manner provided in the Trust Deed. Gopikishan S. Damani is the settlor of Gulmohar Trust. The primary beneficiary of Gulmohar Trust is Prateet Damani.

Karnikar Trust :Karnikar Trust was originally formed pursuant to a trust deed dated December 10, 2009 (the “Trust Deed”). The trustees Karnikar Trust are Radhakishan S. Damani, Gopikishan S. Damani, Kirandevi G. Damani, Madhu Chandak and Manjri Chandak. The registered office of Karnikar Trust is at 903, Dalamal House, 206 J B Marg, Nariman Point, Mumbai – 400 021. The overall objective of Karnikar Trust is to hold assets currently settled in Karnikar Trust and further added thereto, and to distribute the income, assets, trust fund including corpus after deducting all trust expenses and liabilities for the beneficiaries in the manner provided in the Trust Deed. Gopikishan S. Damani is the settlor of Karnikar Trust. The primary beneficiary of Karnikar Trust is Pratinav Damani.

 

B – 72/72A, Wagle Industrial Estate, Road No. 33, Kamgar Hospita Thane, Maharashtra – 400604
Phone: 33400500 Fax: 33400599Public Issue of 62541806 Equity Shares of ₹ 10.00 each for Cash at a Premium of ₹ 289.00 per share.

Music Broadcast Ltd IPO (Music Broadcast IPO) 

In corporated  in 1999, Music Broadcasted Limited is the 1st private FM Radio in india Operates under the brand name Radio City. The Company operated its Radio Stations in 29 cities in India as of 25 November 2016. They present in 12 out of the top 15 cities in India by population.
Music Broadcast Limited operates as a subsidiary of Jagran Prakshan Limited . Radio station deliver film, non-film,devotional, regional, and international music, as  well as Radio Jockey(RJ) hosted shows in Hindi, Tamil, Kannada, Malayalam and Telugu languages. It also operates 31 web radio stations that offer internet radio with live RJ hosted shows through planet Radio City in 6 Languages with a listener  of 12.20 million. In addition, Music Broadcast limited operates ‘Planet Radio City’ Mobile app that plays various stations such as ‘Radio City Freedom’, ‘Radio City Electronica’, ‘Radio City Metal’ , and ‘Radio City Smaran’ in various languages on mobile and other smart devices.
The Promoter of the Company is JPL.
JPL was incorporated on July 18, 1975 under the Companies Act, 1956 as “Jagran Prakashan Private Limited” and, subsequently, became a deemed public limited company under Section 43A of the Companies Act. In 2004, JPL was again converted into a private limited company pursuant to a shareholders’ resolution dated September 28, 2004. On November 23, 2005, JPL was converted into a public limited company pursuant to a shareholders’ resolution.

1709953

Objects of the Issue:

The net proceeds of the IPO are proposed to be used as set forth below:
1. Repayment or prepayment of a portion of loans and redemption or earlier redemption of NCDs availed by the Company;
2. Construction and purchase of fit outs for new stores;
3. General corporate purposes.

Offer For Sale
The Selling Shareholders will be entitled to the proceeds of the Offer for Sale after deducting their portion of the Offer related expenses and relevant taxes thereon. the Company will not receive any proceeds from the Offer for Sale. All expenses in relation to the offer will be borne by the Company and the Selling Shareholders in proportion to the Equity Shares contributed to the Offer by the Company and the Selling Shareholders respectively.

Issue Open Date Issue Closing Date Application Money Allotment Money
06/03/2017 08/03/2017 333.00

An indicative timetable in respect of the Offer:

  • Issue Size: 6,23,93,631 Equity Shares
  • Issue Price: Rs 290 – Rs 299 Per Equity Share

Company Financials:

Particulars For the year/period ended(in Rs.Million)
30-sep-16 31-mar-16 31-Mar-15 31-Mar-14 31-Mar-13 31-Mar-2012
Total Assets 5,278.26 4,852.88 3,977.26 1,699.64 1,707.77 1,808.30
Total Revenue 1,382.13 4,852.88 2,075.06 1,572.71 1,405.06 1,248.04
Profit After Tax(PAT) 297.56 425.07 470.59 243.25 116.19 (21.70)

 

Lead Managers Registrar Listed at
ICICI SECURITIES LTD KARVY COMPUTERSHARE PRIVATE LIMITED
Karvy Selenium Tower B, Plot No 31-32, Gachibowli, Financial Dist
Hyderabad, Telangana – 500032
Phone: 67162222 Fax: 23431551
BSE
NSE

5th Floor, RNA Corporate Park, Off Western Express Highway, Kalan Mumbai, Maharashtra – 400051
Phone: 66969100 Fax: 26429113

Public Issue of 14670530 Equity Shares of ₹ 10.00 each for Cash at a Premium of ₹ 323.00 per share.

LAURUS LABS LTD: Ipo apply for lofty gains

Incorporated in 2005, Laurus Labs Ltd is Hyderabad based pharmaceutical company. Laurus Labs is in the business of manufacturing generic active pharmaceutical ingredients (APIs) for therapeutic areas of antiretrovirals (ARVs) and Hepatitis C. Company also manufacture APIs in oncology and other therapeutic areas.

Public Issue of 31116786 Equity Shares of Rs 10.00 each for Cash at a Premium of Rs 418.00 per share

Issue Open Date                      :            06/12/2016

Issue Closing Date                  :            08/12/2016

Application Money                 :           Rs. 426 – Rs. 428 Per Equity Share

Listed At                                   :           BSE , NSE

Market Lot                                 :           35Shares

Minimum Order Quantity     :          35 Shares

Lead Managers   :

CITIGROUP GLOBAL MARKETS INDIA PVT.LTD.
JEFFERIES INDIA PVT. LTD.
KOTAK MAHINDRA CAPITAL COMPANY LTD.
SBI CAPITAL MARKETS LIMITED

Registrar    :

KARVY COMPUTERSHARE PRIVATE LIMITED
Karvy Selenium Tower B, Plot No 31-32, Gachibowli,                                                                             Financial Dist,Hyderabad, Telangana – 500032
Phone: 67162222 Fax: 23431551

 

Laurus Labs Operates in 4 business lines:

  1. Generics active pharmaceutical ingredients (APIs) – The development, manufacture and sale of APIs and advanced intermediates.
  1. Generics finished dosage forms (FDFs) – The development and manufacture of oral solid formulations
  1. Synthesis – Contract development and manufacturing services for global pharmaceutical companies.
  1. Ingredients – The manufacture and sale of specialty ingredients for use in the nutraceutical and cosmeceutical sectors.

Object of the Issue:

The Offer comprises of the Fresh Issue and the Offer for Sale.

Offer for Sale

The proceeds of the Offer for Sale shall be received by the Selling Shareholders, and the Company will not receive any proceeds from the Offer for Sale.

Requirement of Funds

The Company proposes to utilise the Net Proceeds from the Fresh Issue towards the following objects:

  1. Pre-payment of term loans
  2. General corporate purposes.

Promoted by:

The Promoters of the Company are: 1888930
1. Dr. Satyanarayana Chava
2. Mrs. Naga Rani Chava
3. Dr. Raju Srihari Kalidindi
4. Mr. V V Ravi Kumar
5. Dr. C V Lakshmana Rao

 

Key Highlights:

  1. Laurus Labs launched 59 products since our inception in 2005.
  2. 9 out of the 10 largest generic pharmaceutical companies in the world are its customers.
  3. Laurus Labs employed 587 scientists at our R&D center in Hyderabad and 12 scientists at R&D center in Greater Bostan USA.
  4. Laurus Labs owned 32 patents and had 150 pending patent applications in several countries.
  5. Company has 3 maufacturing facilities in Visakhapatnam, Andhra Pradesh.
  6. Company sells its products in 32 countries in Sub-Saharan Africa, South-East Asia and Latin America.

Key Strengths:

  1. Leadership in APIs in select, High growth therapeutic areas
  2. Strong R&D Capabilities and process chemistry skills
  3. Industry leading, Modern and regulatory complaint manufacturing capacities
  4. Long-Standing relationships with Multi-National Pharmaceutical companies
  5. Experienced promoters and qualified operational personnel
  6. Established track record of delivering growth.

Company Contact Information

Lauras Labs Ltd
Plot No.21,
Jawaharlal Nehru Pharma City,
Parawada, Visakhapatnam 531 021
Phone: + 91 40 3980 4333
Fax: +91 40 3980 4320
Email: secretarial@lauruslabs.com
Website: http://www.lauruslabs.com

Laurus Labs Ipo prospectus

http://www.sebi.gov.in/cms/sebi_data/attachdocs/1471952320948.pdf

 

PNB Housing Finance Fifth largest housing finance company

Aims to strengthen capital base to support business and assets growth, primarily in retail housing and non-housing loan segments

PNB Housing Finance is the fifth largest housing finance company (HFC) in India by the size of loan portfolio, which was incorporated on 11 November 1988, as a wholly-owned subsidiary by Punjab National Bank. In December 2009, the company offloaded 26% stake to the Destimoney Enterprises (DEL). DEL subscribed to additional equity shares, raising its stake to 49% of the equity share capital of the company.

The company became the fifth largest HFC in India by loan portfolio as of September 2015, with the second largest amount of deposits in an HFC in India as of March 2015. The company offers housing loans as well as non-housing loans such as loans against property (LAP), non-residential premises loans (NRPL), lease rental discounting (LRD), and corporate term loans (CTL).

The target customers for housing loans are salaried customers, whose main source of income is salary from their employment, and self-employed customers, whose main source of income is their profession or their business. The company also offers housing loans in the form of construction finance loans to real estate developers of residential housing.

The loan portfolio of the company has grown at a CAGR of 62% from Rs 3969.66 crore at end March 2012 to Rs 27177.27 crore at end March 2016. The loan portfolio has further accelerated to Rs 30900.64 crore at end June 2016. Despite the strong loan growth, the company has maintained the loan mix stable, exhibiting healthy growth across segments. The company plans to maintain the current retail focused loan mix even post IPO.

The housing loans constituted 70.31% of total loan portfolio and retail housing loans constituted 86.52% of total housing loan portfolio at end June 2016. The average retail housing loans ticket size stands at Rs 31.8 lakh, with a weighted average loan-to-value ratio (LTV ratio) of 66.10%.

The non-housing loans constituted 29.69% of total loan portfolio and retail non-housing loans accounted for 78.27% of total non-housing loan portfolio. The average loan size (at origination) of retail non-housing loans was Rs 56.8 lakh, with a weighted average LTV ratio of 46.49%. The company expects the ticket size to decline going forward, with the shift to tier II and III cities.

The company has a network of 47 branches across the northern, western and southern regions of India and 16 processing hubs with central support office (CSO) in New Delhi. Its distribution network included over 7,110 channel partners across different locations in India as of June 2016, including in-house sales team as well as external direct marketing associates (DMAs), deposit brokers and national aggregator relationships with reputed brands.

The total borrowings of the company stood at Rs 30045.95 crore, with the average cost of borrowings at 8.65%. The company has access to diverse sources of liquidity. The share of borrowings from banks and financial institutions, domestic debt markets, deposits and the NHB stood at 12.40%, 52.82%, 24.75% and 10.04% of outstanding borrowings at end June 2016. Outstanding deposits grew at a CAGR of 110.41% from Rs 363.07 crore as of March 2012 to Rs 7115.85 crore as of March 2016. Outstanding deposits have moved up to Rs 7435.9 crore at end June 2016.

Gross NPAs, as a percentage of the total loan portfolio, were 0.20% as of March 2015, which was the lowest among the leading HFCs in India. GNPA ratio has remained negligible at 0.27% as of June 2016.

The Capital to Risk (Weighted) Assets Ratio (CRAR) and Tier I Capital CRAR were 13.04% and 8.40% (against regulatory requirement of 12% and 6%) at end June 2016.

The Net Interest Margins (NIM) have been hovering in a narrow range of 2.9-3%. The NIMs stood at 2.98% in FY2016.

The RoE (return on equity) of the company has been healthy at 17.6% in FY2016. However, the RoA (return on assets) was moderate 1.35% owing to high leverage. The company has the higher leverage ratio of 15 times against the industry level of around 8 times.

The Offer and the Objects

The issue comprises fresh offer of Rs 3000 crore which at lower price band of Rs 750 per share works out to issue size of 4.00 crore shares and at higher price band of Rs 775 per share, works out to an issue size of 3.78 crore shares. Post-IPO, the promoter Punjab National Bank (PNB)’s stake will reduce to 39.1% from existing 51%.

The minimum bid lot is 19 equity shares and in multiples of 19 equity shares thereafter. The issue is to be made through a book building process and will open on 25 October 2016 and will close on 27 October 2016.

The issue includes a reservation of 2.5 lakh equity shares for subscription by eligible employees (not exceeding 5% of post-issue paid up equity share capital) at a discount of Rs 75 per share to the issue price.

The company intends to utilize the net proceeds towards augmenting capital base to meet future capital requirements and general corporate purpose. The company has to strengthen its capital base to support business and assets growth, primarily in housing and non-housing segment, and to ensure compliance with the NHB Directions. The proceeds are expected to be sufficient to satisfy company’s Tier-I capital requirements for the FY2017 and FY2018.

Strengths

The company has emerged as the fifth largest HFC in India by loan portfolio with the second largest amount of deposits in an HFC in India.

It is the fastest growing HFC among the leading HFCs in India

The company has a strong distribution network, with deep penetration of key Indian urban centers. As of June, 2016, the company has 47 branches supported by 16 processing hubs, three co-located zonal offices. Region-wise, 39.67% of the loan portfolio was originated from northern region, 30.40% from the western and 29.93% from the southern regions.

The company has scalable operating model, which is expected to enable expanding at lower incremental costs to drive profitability. A streamlined operational structure has resulted in improved turn-around-time (TAT) for processing a loan application until loan sanction. The cost-to-income ratio improved to 25.03% in Q1FY2017 from 25.7% in FY2016 and 31.4% in FY2015, despite opening of additional branches. While currently the cost-to-income ratio is relatively high and as a result return ratio is relatively lower (compared to other HFCs), scope for operational leverage is good and good future growth can yield relatively higher profitability and increase the return ratios faster.

The company has access to varied and cost-effective funding sources which included term loans from banks and financial institutions, NCDs, deposits, ECBs, commercial paper, refinancing from NHB and unsecured, subordinated debt. Lenders include 31 banks, 10 mutual funds, 20 insurance companies, 545 provident funds and 153 pension funds, among others. The company has been reducing the cost of borrowing to 8.65% in Q1FY2017 from 8.67% in FY2016, 9.26% in FY2015 and 9.3% in FY2014.

The asset quality of the company is robust with GNPA ratio at 0.27% and NNPA ratio at 0.19% at end June 2016.

Weaknesses and concerns

The business and operations of the company significantly depend on parent and promoter PNB. Following the issue, the company will cease to be a subsidiary of PNB and may not be able to enjoy the benefits received from being a subsidiary of PNB that enjoyed in the past. There can also be conflicts of interest between PNB and PNB Housing Finance.

The company uses the brand PNB of promoter and is exposed to the risk that PNB may prevent the company from using it in the event its shareholding falls below 30%.

Any significant adverse changes by the government, the RBI or the NHB in their policy regarding regulations of the housing industry and/or housing finance industry or any adverse change in the tax incentives that the government currently provides to HFCs and its customers may have an adverse effect on business, financial condition and results of operations.

The company is exposed to fluctuations in real estate prices and any negative events affecting the real estate sector.

Business and financial performance may be adversely affected by volatility in interest rates.

The non-housing loans constituted 29.69% of total loan portfolio. The risks in no-housing loans are generally higher than housing loans.

The company’s growth rates in the recent past have been very high and will be difficult to sustain. Moreover, high growth rates in the finance industry sometimes lead to pressure on asset quality in future.

Valuation

PNB Housing Finance’s EPS for FY2016 on post-issue equity works out to Rs 19.78. At the lower price band of Rs 750 per equity share of Rs 10 face value P/E works out to 37.9 times of FY2016 EPS of Rs 19.78 (on post-IPO equity). At the upper band of Rs 775 per equity share, P/E works out to 39.2 times of FY2016 EPS of Rs 19.78 (on post-IPO equity).

The book value of PNB Housing Finance is Rs 176.52 as of June 2016. Post-issue, the book value works out to Rs 313.95 per share at the lower band of issue price of 750 and Rs 316.39 per share at the upper band of issue price of Rs 775. The adjusted book value, net of net non-performing assets, at the upper band of issue price of Rs 775 works out to Rs 312.9 per share.

P/BV (post-issue) for PNB Housing Finance works out to 2.45 times and P/Adj BV at 2.48 times at the upper price band. Among the comparable peers, Gruh Finance is trading at P/BV of 13.7 times, Can Fin Homes is trading at P/BV of 5.3 times, Repco Home Finance is trading at P/BV of 4.9 times, HDFC is trading at P/BV of 4.0 times, Indiabulls Housing Finance is trading at P/BV of 3.4 times, LIC Housing Finance is trading at P/BV of 3.2 times and Dewan Housing Finance is trading at P/BV of 1.9 times. All BVs are as of June 2016.

At the price band of Rs 775 per share, PNB Housing Finance is offered at a P/E of 39.2 times (FY 2016 EPS on post-issue equity). Among the comparable peers, Gruh Finance trades at P/E (on EPS for FY2016) of 50.5 times, Repco Home Finance at 31.7, Can Fin Homes at 31.1, HDFC at 21.1, LIC Housing Finance at 18.4, Indiabulls Housing Finance at 18.4 and Dewan Housing Finance at 11.9.

PNB Housing Finance: Issue highlights
For Fresh Issue Offer size (in no of shares )  
– On lower price band 4.00 crore
– On upper price band 3.78 crore
Offer size (in Rs crore ) 3000
Price band (Rs) 750-775
Post issue capital (Rs crore)  
– On upper price band 165.63
– On lower price band 166.92
Post-issue promoter & Group shareholding (%) 39.1
Issue open date 25/10/2016
Issue close date 27/10/2016
Listing BSE,NSE
Rating  49/100

 

PNB Housing Finance: Financials
  1203 (12) 1303 (12) 1403 (12) 1503 (12) 1603 (12) 1606 (03)
Income from operations 461.00 666.30 1120.32 1780.38 2699.54 863.44
Other Income 0.00 0.00 0.00 0.00 0.00 0.00
Total Income 461.00 666.30 1120.32 1780.38 2699.54 863.44
Interest Expenses 314.40 461.95 801.60 1264.84 1860.29 607.99
Other expenses 34.49 62.17 106.00 174.70 238.81 75.62
Gross profit 112.12 142.19 212.73 340.84 600.45 179.83
Depreciation 0.22 0.97 3.31 8.28 15.04 4.47
Profit before tax and Provisions 111.89 141.21 209.42 332.56 585.41 175.36
Provisions and write off 6.28 12.47 30.43 38.11 81.13 27.98
Profit before tax 105.62 128.74 178.98 294.45 504.28 147.38
Provision for tax 28.17 35.92 49.29 100.38 176.71 51.35
PAT 77.45 92.82 129.70 194.07 327.57 96.03
EPS*(Rs) 4.68 5.60 7.83 11.72 19.78 23.19
* Annualized on post-issue equity of Rs 165.63 crore. Face Value: Rs 10
Source: Capitaline Corporate Database

 

Housing Finance Companies – Comparison
  Can Fin Homes Dewan Housing Fin GRUH Finance H D F C Indiabulls Housing Fin. LIC Housing Finance Repco Home Fin PNB Housing Fin
Equity (Rs crore) 26.62 291.80 72.78 316.80 84.39 100.93 62.55 165.63
Face Value (Rs) 10 10 2 2 2 2 10 10
CMP (Rs) (20 Oct 2016) 1838 330 338 1360 872 609 782 775
M-Cap (Rs crore) 4894 10333 12298 215414 36800 30731 4889 12837
PE (times) 31.1 11.9 50.5 21.1 15.7 18.4 31.7 39.2
P/BV (times) 5.3 1.9 13.7 4.0 3.4 3.2 4.9 2.4
Book Value / share (Rs) 348.5 174.6 24.6 338.5 259.7 189.3 159.0 316.4
EPS (FY2016) 59.0 27.7 6.7 64.3 55.7 33.0 24.6 19.8
                 
  201606 201606 201606 201606 201606 201606 201606 201606
TTM Total Income 1084 7857 1275 53257 9226 12503 882 2700
% Change 33 22 20 10 27 15 27 52
TTM RPAT 157 749 244 10190 2345 1668 154 328
% Change 82 17 20 16 23 19 23 69
CRAR % 19.5 17.5 17.8 16.5 23.4 17.0 20.1 13.0
NIM % 3.4 2.9 4.0 3.8 3.2 2.6 4.3 2.7
GNPA% 0.2 1.0 0.6 0.8 0.8 0.6 2.2 0.3
NNPA% 0.0 0.0 0.3 0.4 0.3 1.2 0.2
Loan Book 11183 63647 11544 265731 71026 123681 7959 30901
% Change 28 18 24 15 31 15 25 62

 

PNB Housing Finance: Operational and financial parameters
  1403 (12) 1503 (12) 1603 (12) 1606 (03)
Revenue from operations (Rs crore) 1120.32 1780.38 2699.54 863.44
Profit after tax (Rs crore) 129.70 194.07 327.57 96.03
Net interest income (Rs crore) 275.35 441.57 707.98 209.21
Net interest margin 2.93% 2.94% 2.98% 2.71%
Average yield 11.45% 11.37% 10.80% 10.58%
Average cost of borrowings 9.30% 9.26% 8.67% 8.65%
Spread 2.15% 2.11% 2.13% 1.93%
Cost to income ratio 30.14% 31.39% 25.69% 25.03%
Return on average Assets 1.35% 1.27% 1.35% 1.19%
Return on equity 16.71% 15.45% 17.60% 17.52%
Gross NPAs to total loan portfolio 0.32% 0.20% 0.22% 0.27%
Provisioning coverage ratio 51.47% 66.82% 36.25% 30.77%
Loan book (Rs crore) 10591.21 16819.32 27177.27 30900.64

 

Current IPO: ICICI Prudential For The Prudent Investor

Incorporated in 2001 as a joint venture between ICICI Bank Limited and Prudential Corporation Holdings Limited, ICICI Prudential Life Insurance Company Ltd is a Mumbai based largest private sector life insurer in India.

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ICICI Prudential Life offers a range of life insurance, health insurance and pension products and services to its customers. ICICI Prudential offers the products and services through an extensive multi-channel sales network across India, including through the branches of bank partners, individual agents, corporate agents, employees, offices and its website.

Company has a market share of 11.3% on a retail weighted received premium basis in India. Among the 23 private sector life insurance companies in India, Company has a market share of 21.9% on a retail weighted received premium basis.

IPO Highlights (As of March 31, 2016):

1. ICICI Bank owns 68 present of the company and selling 12.65% stake though this IPO.
2. At the upper end of the price band, IPO will raise over Rs 6000 Cr.
3. Britain’s Prudential PLC, which owns nearly 26% of the company, is not selling any of its stake in the IPO.
4. Company has 121,016 individual agents and over 4,500 branches with Bank partners.
5. Gross premium income was Rs 191.64 billion
6. Company have 1.04 trillion of assets under management, making them one of the largest fund managers in India.

Competitive Strengths:1818884

1. Consistent Leadership across Cycles
2. Delivering Superior Customer Value
3. Diversified Multi-channel Distribution Network
4. Leveraging Technology
5. Robust and Sustainable Business Model
6. Strong Brand
7. Experienced Senior Management Team

 Company Financials:

Summary of financial Information
Particulars For the year/period ended (in Rs. Million)
31-Mar-16 31-Mar-15 31-Mar-14 31-Mar-13 31-Mar-12
Total Assets 1,025,637.0 990,573.2 801,027.5 740,839.2 716,880.0
Total Revenue 18,122.4 16,775.5 16,607.1 21,910.5 18,244.6
Profit After Tax (PAT) 16,527.2 16,403.5 15,613.5 15,154.1 13,856.9

 

Objects of the Issue:

The objects of the Offer are

  1. To achieve the benefits of listing the Equity Shares of the Company on the Stock Exchanges and
    2. To carry out the sale of up to 181,341,058 Equity Shares by the Selling Shareholder.

Issue Detail:

»»  Issue Open: Sep 19, 2016 – Sep 21, 2016
»»  Issue Type: Book Built Issue IPO
»»  Issue Size: 181,341,058 Equity Shares of Rs 10 aggregating up to Rs 6,056.79 Cr
›  Offer for Sale of 181,341,058 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
»»  Face Value: Rs 10 Per Equity Share
»» Issue Price: Rs. 300 – Rs. 334 Per Equity Share
»»  Market Lot: 44 Shares
»»  Minimum Order Quantity: 44 Shares
»»  Listing At: BSE, NSE

http://www.sebi.gov.in/cms/sebi_data/attachdocs/1468842226820.pdf