Apply for Precision Pipes IPO: Prabhudas Lilladher

Prabhudas Lilladher has come out with report on Precision Pipes and Profiles Company. The firm has recommended subscribing to the issue.

PPAP, a Delhi-based OEM supplier to the automobile industry, has opened for subscription with an initial public offering (IPO) of 50-lakh shares of face value of Rs 10 each at a price band of Rs 140-150 per equity share. The bids will close on December 20.

Prabhudas Lilladher report on Precision Pipes and Profiles Company IPO

Precision Pipes and Profiles Company (PPAP) is an OEM supplier of plastic extrusion products to nearly all brands/models produced by Maruti Suzuki, Honda Siel, General Motors and Toyota Kirloskar. With a number of global auto majors setting up their manufacturing base in India, the country is set to witness tremendous boom in the auto component industry. In order to cater to this growing demand from customers, PPAP is expanding its capacity from the current 4.75 million kg to 9.15 million kg at a cost of Rs915m.

Additionally, PPAP has entered into an agreement with Power and Data Corporation (PDC), Australia to manufacture and supply the worldwide patented Novell Mainline system (low voltage electrical outlet system) to authorised distributors of PDC for which it is setting up a new plant at Badarpur, Delhi at an estimated cost of Rs43.5m. The capacity expansion with an outlay of Rs 1,060 million would be part funded by the IPO and the balance by a term loan of Rs 250 million and internal accruals.

The company has sound fundamentals with three year revenue CAGR (upto FY07) of 25%, operating margin at 25%, and ROCE and ROE at 27.2% and 36.9% respectively. Our preliminary estimate of net profit is Rs170m for FY08E and Rs260m for FY09E. At the offer price of Rs140–150, the stock is available at 8.1x FY09E earnings of Rs18.5 at higher band and 7.7x FY09E earnings of Rs18.1 at lower band. Considering its impressive financials and robust growth prospects, we recommend Subscribe to the issue.

The grey market premium for Precision Pipes is around 25-40. Investors can look for good listing gains.

Nahar Ind to make pre-IPO placement in Nahar Retail

Nahar Industrial Enterprises will make Pre-IPO placement of 15-20% in Nahar Retail, reports CNBC-TV18 quoting Sources.

Nahar Industries is likely to raise USD 30 million via this placement and valued Nahar Retail at around USD 150-200 million.

Nahar Retail announcement is likely to be made in January 2008. ICICI Securities is the banker for Nahar Retail's Pre-IPO Placement.

Nahar Industries management said that they are in talks with various investors for fund raising.

Valuation of Edelweiss Cap looks attractive

SPA Securities has come out with report on Edelweiss Capital (ECL) IPO. The brokerage firm has recommended to subscribe the issue.

Edelweiss Capital, a diversified financial services company, is entering the capital market with its initial public offering (IPO) of 8,386,147 equity shares of Rs 5 each for cash, at a price to be decided through a 100% book building process.

The issue will open on November 15, 2007, and will close on November 20, 2007. The price band has been fixed between Rs 725 and Rs 825 per equity share of face value Rs 5.

Valuation of Edelweiss Cap looks attractive

SPA Securities has come out with report on Edelweiss Capital (ECL) IPO. The brokerage firm has recommended to subscribe the issue.

Edelweiss Capital, a diversified financial services company, is entering the capital market with its initial public offering (IPO) of 8,386,147 equity shares of Rs 5 each for cash, at a price to be decided through a 100% book building process.

The issue will open on November 15, 2007, and will close on November 20, 2007. The price band has been fixed between Rs 725 and Rs 825 per equity share of face value Rs 5.

Kolte-Patil Dvlprs sets IPO price band at Rs 125-145/share

Kolte-Patil Developers, a real estate developer in India, is entering the capital markets with an initial public offering (IPO) of 19,000,836 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.

The issue will open on November 19, 2007, and will close on November 22, 2007. The price band has been fixed between Rs 125 and Rs 145 per equity share.

The objects of the issue are to finance acquisition of development rights; finance the construction and development costs for some of the proposed projects; fund expenditure for general corporate purposes and achieve the benefits of listing on the Stock Exchange.

The issue comprises a net issue of 18,812,709 equity shares to the public and a reservation of 188,127 equity shares for eligible employees. The issue will constitute 25.25% while the net issue will constitute 25% respectively of the post-Issue paid up capital of the company. The equity shares are proposed to be listed on the NSE and BSE.

Kolte-Patil Developers develops and constructs properties in Pune and also in Bangalore. As of September 30, 2007, it has developed and constructed 25 projects, including 22 in Pune and 3 in Bangalore, covering a total of approximately 4.01 million square feet of saleable area. These include 16 residential complexes, 4 commercial complexes, 3 complexes designed for mixed residential/commercial use, and 2 information technology parks.

The company posted a total income (consolidated) of Rs 2, 524.43 million in fiscal 2007 and an adjusted profit after tax of Rs 835.61 million. For the 3 months ended June 30, 2007 , the Company posted a total income (consolidated) of Rs 889.65 million and an adjusted profit after tax of Rs 338.76 million..

The book running lead managers to the issue are DSP Merrill Lynch Limited and Edelweiss Capital Limited.

Mundra Port IPO subscribed 109 times

Mundra Port and Special Economic Zone, India's largest non-government cargo terminal, has received overwhelming response for its IPO, subscribed 114.69 times till 5 pm, as per data available on NSE website.

The issue received bids for 4.61 billion shares against 40.25 million shares on offer and bids for 14.36 crore shares at cut off price.

Qualified institutional investors has given strong support to the issue. The reserved portion of QIBs subscribed 155.51x followed by HNIs 132.07x and Retail 10.90x, till 4 pm.

Mundra, which aims to set up cargo and coal terminals and develop a trade zone from the proceeds, is tapping an economy forecast to grow about 8.5 percent in the year to March 31. India's gross domestic product grew an average 8.6 percent over the past four years.

The Adani Group, founder of Mundra Port, has interests in commodities trading, coal mining, power generation, real estate development and agriculture processing.