Cochin Shipyard IPO:Anchor it in your portfolio for six months

Incorporated in 1969, Cochin Shipyard Limited is one of the largest public sector shipyard in India in terms of dock capacity. They operates a shipyard that provides ship building and ships/offshores repair service.

Cochin Shipyard’s shipbuilding activities include the construction of vessels for clients operating in the defense and in the commercial sector shipping industry. In addition to shipbuilding and ship repair, they also offers marine engineering training programs as well as offer additional courses, including 6 months practical training for marine engineering  students from colleges affiliated to universities, fire prevention and fire fighting , and elementary first aid training through its marine engineering  training institute; and chemical, mechanical, and non destructive testing services of metals, welds, and alloys.


They have and delivered vessels across broad classification including bulk carriers, tankers, platform supply vessels(PSVs) , Anchor handling Tug supply vessels (AHTSs) , barges, bollard pull tugs, passenger vessels and fast patrol vessels(FPVs).They are currently building India’s first Indigenous Aircraft Career(IAC)  for the Indian Navy.

Company Promoters:

The Promoter is the President of India acting through the Ministry of Shipping. the Promoter, along with its nominees, currently holds 100% of the pre-Issue paid-up equity share capital of the Company. After this Issue, the Promoter shall hold 75% of the post Issue paid-up equity share capital of the Company. As the Promoter is the President of India, acting through the Ministry of Shipping, disclosures on the Promoter Group (defined in regulation 2(zb) of the SEBI ICDR Regulations) as specified in Schedule VIII of the SEBI ICDR Regulations have not been provided.

Company Financials:

Summary of financial Information (Consolidated)
Particulars For the year/period ended (in Rs. Million)
31-Mar-17 31-Mar-16 31-Mar-15
Total Assets 33,164.37 33,488.61 28,912.85
Total Revenue 22,085.01 20,968.81 16,604.52
Profit After Tax 3,121.82 2,917.52 692.82

Objects of the Issue:

Company proposes to utilize the Net Proceeds towards funding of the following objects:

  1. Setting up of a new dry dock within the existing premises of the Company (“Dry Dock”);
  2. Setting up of an international ship repair facility at Cochin Port Trust area (“ISRF”); and
  3. General corporate purposes.

Issue Detail:

  • ISSUE OPENS: Aug 1, 2017 – Aug 3, 2017
  • ISSUE TYPE: Book built issue IPO
  • Issue Size:33,984,000 Equity Shares of Rs 10 aggregating up to Rs 1,468.11 Cr
    ›  Fresh Issue of 22,656,000 Equity Shares of Rs 10 aggregating up to Rs [.] Cr                ›  Offer for Sale of 11,328,000 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
  • FACE VALUE: Rs 10 per equity share
  • Issue Price: Rs 424 – Rs 432 Per Equity Share
  • Market Lot: 30 Shares
  • Minimum Order Quantity: 30 Shares
  • Listing At: BSE, NSE

Discount of Rs 21 is offered to RII and Employee. Discounted price band is Rs 403 – Rs 411 for Retail and Employee.

Company Contact details:

Cochin Shipyard Ltd
Administrative Building,
Cochin Shipyard Premises,
Perumanoor, Kochi – 682015
Phone: +91 (484) 2501306
Fax: +91 (484) 2384001

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


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
Website: http://www.shankara

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.


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

Click to access 1468842226820.pdf




Current IPO: L&T Infotech-for Long term Investors

Current IPO:L&T Infotech

L&T Infotech Incorporated in 1996, Larsen & Toubro Infotech, a subsidiary of Larsen & Toubro Ltd is Mumbai, India based IT Solutions & Services Company. L&T Infotech is ranked 6th largest IT company in India in terms of export revenues and among top 20 IT service provider in the world.

L&T Infotech offers an extensive range of IT services in diverse industries around the world. The services offered by L&T Infotech include application development, maintenance and outsourcing, enterprise solutions, infrastructure management services, testing, digital solutions and platform-based solutions.

L&T Infotech is promoted by Larsen & Toubro Limited, a leading Indian conglomerate in engineering, construction, manufacturing, finance and technology. For L&T Infotech, the percentage of its revenue from North America, Europe, Asia Pacific and the rest of the world amounted to 68.6%, 17.9%, 2.4% and 6.9%, for Financial Year 2015.

The company is coming out with a maiden public offer of 17500000 equity share of Re. 1 each via book building route for listing benefits. The price band for the offer is Rs. 705 – Rs. 710. Thus the company hopes to mobilize Rs. 1233.75 cr. to Rs. 1242.50 cr. based on lower and upper price band. The company is offering a special discount t of Rs. 10 per share to retail investors. The offer constitutes 10.30 per cent of the post offer paid up equity capital of the company. Minimum application is to be made for 20 shares and in multiples thereon, thereafter. Issue opens for subscription on 11.07.16 and will close on 13.07.16. Post allotment, shares will be listed on BSE and NSE. BRLMs’ to the offer are Citigroup Global Markets India Pvt Ltd, Kotak Mahindra Capital Co. Ltd and ICICI Securities Ltd. Link Intime India Pvt Ltd is the registrar to the issue. Since this IPO is made as offer for sale, its paid up equity remains same at Rs. 16.98 crore. Average cost per share of promoters is Rs. 8.33.

Competitive strengths of the company are as following:

  1. Strong domain focus enabling Business-to-IT Connect
  2. Strong parentage and brand equity of our Promoter
  3. Established long-term relationships with our clients
  4. Extensive portfolio of IT services and solutions
  5. Focus on emerging technologies
  6. Track record of established processes and executing large, end-to-end, mission critical projects
  7. Strong management culture
  8. Conducive work environment to attract and retain talent

Company Promoters:

The Promoter of the Company is Larsen & Toubro Limited. L&T currently holds 161,250,000 Equity Shares, equivalent to 94.96% of the pre-Offer issued, subscribed and paid-up Equity Share capital of L&T Infotech.

Company Financials:

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 32,380.30 29,068.71 25,058.09 21,893.69 19,814.75
Total Revenue 59,081.26 48,331.83 45,628.48 36,301.56 29,685.54
Profit After Tax (PAT) 9,381.31 7,735.97 9,032.57 5,599.83 4,059.27

Objects of the Issue:

The objects of the offer are to:

  1. Achieve the benefits of listing the Equity Shares on the Stock Exchanges; and
  2. Carry out the sale of up to 17,500,000 Equity Shares by the Selling Shareholder.

Issue Detail:

  • Issue Open: Jul 11, 2016 – Jul 13, 2016
  • Issue Type: Book Built Issue IPO
  • Issue Size:17,500,000 Equity Shares of Rs 1 aggregating up to Rs 1,400.00 Cr

› Fresh Issue of 0 Equity Shares of Rs 1 aggregating up to Rs [.] Cr

›  Offer for Sale of 17,500,000 Equity Shares of Rs 1 aggregating up to Rs [.] Cr


  • Face Value: Rs 1 Per Equity Share
  • Issue Price: Rs. 705 – Rs. 710 Per Equity Share
  • Market Lot: 20 Shares
  • Minimum Order Quantity: 20 Shares
  • Listing At: BSE, NSE

Rs 10 Discount to Retail Individual Bidders

L&T Infotech Ltd offers discount of Rs 10 to all eligible Retail Individual Bidders.


Strong parent and brand equity of the promoter. The company benefits from the strong domain expertise, understanding and experience of the L&T group in verticals such as hydrocarbons, heavy engineering, oil and gas, automotive, aerospace etc, which assists LTIL in developing and delivering IT services and solutions that benefit clients in these verticals and differentiates the company from its competitors.

L&T Infotech’s constant currency dollar revenue growth in FY 2016 stood at 13.8%. The company has been delivering resilient growth in the face of a sharp decline in revenues from the energy & processes vertical, where IT spending was hit by the dramatic fall in crude prices. The share of this vertical has fallen from 22% in FY 2014 to 12.7% in FY 2016. This headwind was mitigated by strong growth in large accounts (including the top client) within BFSI, retail, CPG &pharma and auto & aerospace verticals.

The company’s track record of delivering an extensive range of solutions using global delivery model, demonstrable industry, and technology expertise, and sensitivity to its clients’ feedback, has helped it to forge strong relationships with major clients and helps in deriving repeat orders.

With only around 2% exposure to the UK market, LTIL would be least impacted by any near-term growth volatility caused by Brexit.

Digital services revenue, which is an emerging stream of service, witnessed more than 30% CAGR in FY 2013-16 and now contributes around 11% of its total revenues as compared to only around 5% 4 years back.


In FY 2016 and 2015, around 69.0% and 68.6%, respectively, of LTIL’s revenue from continuing operations were derived from its North America segment. Any economic uncertainty or adverse change in laws/regulations in the USA can adversely affect its fortunes.

For FY 2016, the largest client accounted for around 14.9% of total revenues and top 10 largest clients accounted for around 53% of total revenues. The company has about 17 clients who generated above US$ 10 million in revenue, 10 clients who generated above US$ 20 million in revenue and 3 clients who generated above USD 50 million in revenue. Loss of major client or pricing pressure exerted by its top clients or any significant ramp downs by major clients could affect the business and profitability of the company.

Challenges in relation to immigration may affect L&T Infotech’s ability to compete for, and provide services to, clients in the United States and/or other countries, partly because it may be required to hire locals instead of using its existing workforce, which could result in lower profit margins, delays in, or losses of, client engagements and otherwise adversely affects its ability to meet its growth, revenue, and profit projections.

LTIL’s wage costs in India have historically been lower than wage costs in the United States and Europe for comparably skilled employees, and this has been one of its competitive advantages. Wage increases in India may diminish competitive advantage against companies located in the United States and Europe and may reduce the profit margins.

The company has a negligible presence in healthcare domain space and no presence in enterprise resource development (ERD) and engineering services, which are being handled by LTTSL.

The group has anther major company LTTSL in the IT services space, which may lead to a conflict of interest. For the year ended March 2016, LTTSL reported net sales of Rs 2969.40 crore, up by 15% with PAT of Rs 434.20 crore, up by 38%.

Like any other exporter, the company is also exposed to forex volatility and the uncertain global economic environment.


L&T Infotech company and its performance are good.but issuing high premium price, it’s preferable for long-term investors.



Source : capitaline database


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