Monthly Archives: January 2017

BSE Ltd (IPO of 29955434 shares of Rs.1 each)

 Face Value – Rs.2

Price Band – Rs.805 – Rs.806

IPO Size – Rs. 1243 Crs (Upper Band) & 1242 Crs (Lower Band)

Offer For Sale – Offer for Sale of 15427197 Equity Shares of Rs 2

New Issue – 5427197 Equity Shares of Rs 2  

BRRLM – Edelweiss, Axis Capital, Jefferies, Nomura, Karvy, Motilal Oswal, SBI Capital Markets, SMC Capital Ltd, Spark Capital Advisors Pvt Ltd.

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

Consolidated Financials and Valuations for H1 FY17

Overview:

• BSE Ltd is the owner and operator of BSE Exchange (Bombay Stock Exchange), India’s largest stock exchange by number of companies listed.
• BSE offers 3 business namely, Listing Business, Market Business and Data Business.
• The Bombay Stock Exchange was established in year 1875 as the first stock exchange in Asia. Today BSE has over 5000 companies listed on it, the highest in any exchange around the world.
• World’s two leading global exchanges, Deutsche Bourse and Singapore Exchange are strategic partners of BSE.
• BSE offers trading in Equity, Debt Instruments, Derivatives, Mutual Funds and SME Equity.
• The S&P BSE SENSEX is India’s most widely tracked stock market benchmark index.
• BSE also offer services including risk management, clearing, settlement, market data services, IT services and solutions, licensing index products such as the S&P BSE SENSEX and financial & capital markets trainings.

BSE Ltd Strengths:

1. Strong brand recognition with a track record of innovation
2. Diversified and integrated business model and active relationship with marketparticipants
3. State-of-the-art infrastructure and technology

 NSE turnover:

Management :

• Ashishkumar Chauhan – MD & CEO
• Sudhakar Rao – Chariman
• Nayan Mehta – CFO

Major Shareholders:

• The entire shareholding of Singapore Exchange is proposed to be offered by it in the Offer and the same is currently held in an escrow account maintained by the Escrow Agent as per the terms of the OFS Scheme.
• Of the 4913863 Equity Shares held by GKFF Ventures, 2456931 Equity Shares are proposed to be offered by it in the Offer – and are currently held in an escrow account maintained by the Escrow Agent as per the terms of the OFS Scheme.
• The entire shareholding of Quantum (M) Limited is proposed to be offered by it in the Offer and is currently held in an escrow account maintained by the Escrow Agent as per the terms of the OFS Scheme.
• Of the 4015544 Equity Shares held by Caldwell India Holdings Inc., 1668906 Equity Shares are proposed to be offered by it in the Offer and are currently held in an escrow account maintained by Escrow Agent as per the terms of the OFS Scheme.
• The entire shareholding of Atticus Mauritius Limited is proposed to be offered by it in the Offer and the same is currently held in an escrow account maintained by Escrow Agent as per the terms of the OFS Scheme.
• Of the 4015544 Equity Shares held by Acacia Banyan Partners Limited, 2000000 Equity Shares are proposed to be offered by it in the Offer and are currently held in an escrow account maintained by Escrow Agent as per the terms of the OFS Scheme.
• Of the 3006796 Equity Shares held by Bajaj Holdings and Investment Limited, 1503398 Equity Shares are proposed to be offered by it in the Offer and are currently held in an escrow account maintained by Escrow Agent as per the terms of the OFS Scheme.

Consolidated Financial Trends (In Rs.Crs) :

KNR Constructions Ltd
Construction & Engineering
FV – Rs 2; 52wks H/L –201.7/81.6; TTQ – 11.2 Lacs; CMP – Rs 184 (As On January 23, 2017);                      

            Market Cap – Rs 2600 Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

• Promoter stake have decreased to 58.09% from 60.75% in June,2016
• On 13/12/2016 there was a stock split from Rs.10 per share to Rs.2 per share.

Standalone Financials and Valuations for H1 FY17

Valuation Parameters:

1. Long Term Debt to Equity – 0.91
2. ROE % – 18
3. Market Cap/Sales – 0.4

• As on 31st March, 2016, the order book stood at about Rs. 3463 Crs comprising of Rs. 3406 Crs in road sector and Rs. 57 Crs in irrigation projects.
• KNR’s mainstay for revenue is EPC orders for road projects. Its order book has been growing at a fast clip since 2015. It won new orders totalling ₹1,334 crore in 2016-17, taking the total outstanding orders to ₹4,579 crore as of September 2016.
• KNR sold two of its operational annuity-based BOT projects for ₹850 crore in November 2016. The cash will provide capital for construction, and the management has indicated that it is part of its strategy to focus on EPC business.

Overview:

• KNR Constructions Ltd is a multi-domain infrastructure project development company.
• The Company undertakes engineering, procurement and construction (EPC) contracts, as well as build-operate-transfer (BOT) projects across various sectors, such as construction and maintenance of roads, highways, flyovers and bridges.
• Its range of verticals also include irrigation projects, water management, agriculture and trading business.
• It has completed approximately 5,890 kilometers of projects across over 10 states in India.
• Its urban water infrastructure management project is Challaghatta Main Valley Project, which involves the remodeling of primary and secondary storm drains, bridges/culverts and related works in Challaghatta Main Valley in Bangalore City.
• The Company’s irrigation and water management projects include Shankara Samudram Balancing Reservoir, Eastern Kosi Canal system, Reservoir across Mathadivagu and Budpur Balancing Reservoir.

Ongoing Major Projects:

1. Bijapur – Hungung Section of NH – 13 – Karnataka
2. Lumding to Lanka section i/c Lamka Bypass of NH – 54 – Assam
3. Ganjam – Sunakhala of NH – 5 – Orissa
4. Madurai – Kanyakumari of NH – 7 – Tamil Nadu
5. Outer Ring Road , Hyderabad City

Bulk Deals:

Management:

• K. Narasimha Reddy – MD
• K. Jalandhar Reddy – CFO

Major Non – Promoter Holdings:

Consolidated Financial Trends (In Rs. Crs) :

The Company’s Net Profit after Tax and extraordinary expenses during the year was Rs. 126.39 crore as compared to Rs. 69.76 crore in FY15. This exceptional amount was due to Income tax refund of previous years on account of 80IA benefit and interest on tax refund classified as other Income.

Pokarna Ltd
Construction Materials
FV – Rs 10; 52wks H/L –1103.85/660; TTQ – 6 K; CMP – Rs 1060 (As On January 10, 2017);                      

            Market Cap – Rs 657 Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

Consolidated Financials and Valuations for H1 FY17

Valuation Parameters:

1. Long Term Debt to Equity – 1.84
2. ROE % – 53
3. Market Cap/Sales – 1.64

Pokarna Engineered Stone Ltd (PESL) – wholly owned subsidiary of Pokarna Ltd., is India’s largest manufacturer and exporter of engineered stone surfaces.

Pokarna Engineered Stone Ltd (PESL) has partnered IKEA India to serve as its exclusive quartz surfaces supply and installation partner. Under the agreement, Pokarna will supply engineered quartz surfaces countertop and will also undertake measuring, planning, installation and home delivery of its products to IKEA’s customers. http://corporates.bseindia.com/xmldata/corpfiling/AttachHis/171EBA61_3AD9_4F10_880F_D3172BD257EA_154057.pdf

(IKEA is the world’s largest home furnishing company with about 389 stores across 46 countries and sales of €34.2 billion.) 

Overview:

• Pokarna Ltd is engaged in processing and sale of granite slabs, and mining and sale of granite blocks.
• The Company offers natural stones surfaces.
• The Company operates through two segments: Granite and Apparel.
• The Company is an exporter of granite and quartz surfaces.
• Its color palette includes over 75 varieties of granite sourced primarily from captive quarries.
• The Company’s quarries produce colors, such as Acacia, Black Galaxy, Coffee Brown, Flash Blue, Pokarna Green, Sapphire Blue, Seaweed Green, Silver Pearl and Vizag Blue.
• It exports to over 50 countries.
• The Company has manufacturing facilities in Telangana and Andhra Pradesh.
• The Company markets quartz surfaces under the brand Quantra.
• The Company also manufactures apparels and markets under its brand STANZA.
• The Company operates over eight outlets.
• The Company has a quartz manufacturing plant located at Vishakhapatnam, Andhra Pradesh, India.

Management:

• Gautam Chand Jain – CMD
• M. Viswanatha Reddy – CFO

Major Non – Promoter Holdings:

Consolidated Financial Trends (In Rs. Crs) :

Deepak Fertilisers & Petrochemicals Corporation Ltd
Commodity Chemicals
FV – Rs 10; 52wks H/L –253.45/128.15; TTQ – 50 K; CMP – Rs 221 (As On January 4, 2017);                      

            Market Cap – Rs 1951 Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

Standalone Financials and Valuations for H1 FY17

Valuation Parameters:

1. Long Term Debt to Equity – 0.32
2. ROE % – 7.5
3. Market Cap/Sales – 0.44

• In 2015-16, the total sales volume fornitric acid saw an increase of 9 percent year-on-year (YOY) and concentrated nitric acid reported highest ever production and sales.
• Deepak Fertilisers to set up nitric acid plant in Dahej with Rs 550-Cr investment. http://www.business-standard.com/content/b2b-chemicals/deepak-fertilisers-to-set-up-nitric-acid-plant-in-dahej-with-rs-550-cr-investment-116080500249_1.html

• Deepak Fertilisers’ current capacity is close to 840,000 metric tonne per annum (MTPA), but most of which is used for captive consumption with only 160,000 MTPA available for merchant sale. With the new Dahej plant, the company will be able to provide an incremental 148,000 MTPA.

Overview:

• Deepak Fertilisers and Petrochemicals Corporation Ltd is a manufacturer of fertilizers.
• The Company’s segments include Chemicals, which offers products, such as ammonia, methanol, dilute nitric acid (DNA), concentrated nitric acid (CAN), carbon dioxide (CO2), technical ammonium nitrate (TAN), iso propyl alcohol (IPA), propane, and bulk and specialty chemicals; Bulk Fertilisers, which offers products, including nitro phosphate (NP), muriate of potash (MOP), diammonium phosphate (DAP), ammonium sulfate, mixtures, single superphosphate (SSP), sulfur, micronutrients, bio fertilizers, fruits, vegetables and pesticides; Realty, which includes real estate business, and Others, which provides windmill power.
• Its principal products/services include Nitrophosphate (Fertilisers), Complexes (Fertilisers) and TAN.
• Its primary brand is Mahadhan. It manufactures prilled nitro phosphate fertilizer under the brand name Mahadhan Mahapower.

Management:

• S. C. Mehta – CMD
• Vipin Agarwal – CFO

The Equity Capital is @ Rs 88.2 Crs consisting of 88204943 equity Shares of FV Rs 10 currently held as under

None Of the Promoter’s Holding is pledged.

Major Non – Promoter Holdings:

Consolidated Financial Trends (In Rs. Crs) :