Hindustan Construction Co. Ltd
Construction & Engineering
FV – Rs 1; 52wks H/L –48/18 ; TTQ – 24.82 Lacs ; CMP – Rs 47 (As On April 25th 2017) ;                    

                Market Cap – Rs 4800 Crs

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

Standalone Financials and Valuations for 9Months FY17

The HCC Group, with a group turnover of Rs. 10353 Crs. comprises of HCC Ltd, HCC Infrastructure Co. Ltd, Lavasa Corporation td and Steiner AG in Switzerland.

In addition, the Company has around 3701 Crs of orders in the L1 position, which are expected to turn into firm orders in 2016-17. Thus, HCC not only has a robust order book across the sectors, but also the average size of its new orders is over 700 Crs.

HCC has a standalone debt of Rs. 4900 Crs. and the arbitration awards will help the company to immediately cut its debt by almost half and materially reduce it even further within 12 to 24 months. http://www.livemint.com/Companies/nX8qrZxTX7h3ot6I8TBNPJ/Hindustan-Construction-to-start-getting-arbitration-awards-b.html

Valuation Parameters:

1. Long Term Debt to Equity – 10.2
2. ROE % – NIL
3. Market Cap/Sales – 0.54

Key Updates:

• The current order book is at Rs. 20936 Crs. (As on 31^st Dec,2017)
• HCC has posted an average annual revenue exceeding 4000 Crs, secured orders of over 14000 Crs and completed 17 major projects.
• The company has been awarded Rs. 369 Crs contract from IRCON on Jan 9, 2017.
• The company bags an order from NHAI worth Rs.1748 Crs. for constructing 32kms of highways in Jammu & Kashmir.
• The company also expects of winning an order from the Mumbai Metro Project where it has emerged as the lowest bidder for one of the seven sections.
• The company has utilised its QIP proceeds of Rs 400 Crs. (Floor Price of Rs.30) which was on April 8, 2015 to reduce debt.
• The company also has realised Rs 158 crore from the sale of 247 Park.

Overwiew:

• Hindustan Construction Company Limited provides engineering and construction services.
• The Company’s businesses span the sectors of engineering and construction, real estate, infrastructure, urban development and management. It operates in the engineering and construction segment.
• It has a presence in the sectors of hydro power, water solutions, transportation and nuclear power.
• In the hydro power segment, its operations include construction of dams, barrages, tunnels, underground power stations and surface power stations, along with water conductor systems, such as surge shafts, pressure shafts and penstocks.
• Its operations also include material handling, such as aerial cableways for concrete placement, tower cranes, ropeways and hydraulic operated traveling/collapsible tunnel formwork, among others.
• It provides solutions in nuclear power by tie-ups with engineering and construction solution providers. In addition, the
• Company delivers transport systems, bridges and highways.

• HCC has developed Lavasa City, a planned hill city and one of India’s largest urban development and management initiatives which attracted 1 million tourists during the year.

Management:

• Ajit Gulabchand – CMD
• Arjun Dhawan – CEO
• Ram P. Gandhi – Director

The Equity Capital is @ Rs. 77.91 Crs consisting of 1010703635 equity Shares of FV Rs 1 currently held 

85.38% Of the Promoter’s Holding is Pledged.

Major Non-Promoter Holdings:

Consolidated Financial Trends (In Rs. Crs) :

During the year, additional 133332800 equity shares were issued of face value Rs.1 each.

I was approached to buy some unlisted shares of Sterlite Power Transmission Ltd (SPTL) & then was astounded when told an offer had already come in for Rs 270 already!

So what’s the Big Issue ? ~ How Can the Value of unlisted SPTL change dramatically upward by over 300% from Rs 112.30( as on March 31, 2015 cut off date) that the company offered for in the demerger of STL  and paid in August 2016 & just eight months later value the same at R s 464.46 ! on March 2, 2017 when they announced an EGM for March 29, 2017 to issue new shares! (Details Below)

It’s thus  to do with the low Valuation of unlisted SPTL as on cut off date March 31, 2015 that was the subsidiary of listed STL that got the Power Division of  STL in the Demerger & then ceased to be a subsidiary post demerger.

Haribhakti & Co LLC did the valuation on a NAV (for Holding Co) & Income DCF Approach (for Operations) at a maximum of  Rs 111.50 /share.Price Waterhouse & Co LLC also used similar Valuation approach and got  mariginally higher Maximum Valuation of Rs 112.30. Both had valued SPTL below Rs 900 crs only! despite Income Approach having to consider Potential of Scale Operations in coming years.Both Valuation Reports are dated May 18, 2015 in sync with STL Board Meeting Date as below. STL has gone with PWC

These are the relevant Dates  & all relevant documents for Shareholder/Court/Exchanges Permissions & Approvals can be found here :

May 18, 2015 ~ Board of STL in a corporate restructuring decision approves the Scheme of Arrangement between the Demerged Company STL & Resulting Company SPTL (then subsidiary of STL) effective date April 1, 2015. Decides to keep SPTL unlisted unlike the Adani Group that listed Adani Transmission after their restructuring exercise

December 15, 2015 ~ Court Convened Meeting of STL Shareholders passes the Scheme

April 22, 2016 ~ Mumbai High Court issues an Order approving the Scheme

May 23, 2016 ~ Order becomes effective on date of filing with Registrar of Companies

June 15 & 16, 2016 ~ STL begins ex demerger quote on June 15, 2016 as Company has set June 16,2016 as record date for STL shareholders entitled to receive Demerger benefits of SPTL.SPTL ceased to be a subsidiary of STL on this Demerger & it was decided to keep it unlisted unlike the Adani Group which demerged & listed Adani Transmission.

June 27, 2016 to August 8,2016~ Election Date Range for @ 122000 shareholders in STL up from under 120000 shareholders at June 30,2015 when the Demerger plans were announced in May 2015 and I wrote a detailed blog post in July 2015 (see later below) .There were two options for Resident Shareholders ~ receive Equity Shares of  SPTL at Rs 112.30 (FV Rs 2) in a 1: 5 ratio for shares held in STL or go for the 8% Preference reedeemable shares of Rs 112.30 in the same 1: 5 ratio that would be reedeemed at Rs 125.55 in eighteen months from allottment. FPI/FIIs?Non Resident shareholders had to sell their shares back to the Promoters or their affiliates.

Many shareholders would  would have opted to receive the Preference shares option in the Demerger rather than the Equity shares of unlisted SPTL led by the fact that it was to remain an unlisted company & misled by the low valuation of  SPTL showcased at the time by STL & done by top names.

Gauging from the June 30,2016 Shareholdings of STL & the current Shareholding of SPTL,I sense that more than half at nearly  55% of the Public Shareholding of STL & in my guestimate over 60000 shareholders opted to receive the redeemable Preference shares of SPTL at the time of the demerger and exit on maturity at Rs 125.55 ! That’s a huge Number. I am quite sure the Promoters of STL opted for the Equity Shares of SPTL. They also must have benefited from the fact that FPIs/ FIIs/ NRIs who opted for the Equity Shares in SPTL had to compulsorily opt to exit SPTL by selling these Equity shares to the Promoters or their affiliates at Rs 112.30. The SPTL Balance Sheet shows 1.79 cr outstanding redeemable preference shares => At Rs 464.46 Valuation now over the Demerger Valuation nine months ago at Rs 112.30 or even the Redemption Maturity Value of Rs 125.55 it translates into an Opportunity Lost of over Rs 600 crs      

March 3, 2017 ~ Just Eight Months later! ~ EGM Notice to SPTL Shareholders ~ Rs  464.46 ! Value of SPTL Shares as valued on March 2,2017 & in the proposed allotment of shares by SPTL to three private equity groups registered with SEBI as Foreign Venture Capital Investor (FVCI) ~Standard  Chartered Financial Holdings,Mauritius  & Standard Chartered Private Equity Korea III Holdings Ltd & Marina Hari (IV) Pte Ltd, Singapore in non cash conversion and consideration of their original Investment of  @ Rs 455 crs through Equity Shares & Optionally Convertible Preference Redeemable Shares (OCPRS)  in Sterlite Power Grid Ventures Ltd (SPGVL).SPTL holds a diluted 71.59 % in SPGVL & with this acquisition of the FVCI Private Equity Holdings in SPGVL it will make SPGVL a wholly owned subsidiary of SPTL. Also it would mean that the Private Investment of the three FVCIs as above is converted from Holding company SPGVL directly to Operational Company SPTL  & on full dilution these three FVCIs will hold a 25.92% Equity Stake in SPTL causing Promoters stake to drop from current 76.12 % to 56.4%

This is the Investment Holdings of the three SEBI Registered FVCIs pre & post the above proposal

March 23, 2017 ~ SPTL announces the postponement of EGM to have been held on March 29,2017. New Date yet to be announced

I am a bit perplexed too on the Valuation & Consideration Mathematics as above would indicate a Value of Rs 212.32 per share considering that the SPTL OCRPS terms show that at least one Equity share of FV 2 has to be  issued on option to convert being exercised & the fact that in 2014 Standard Chartered had committed to invest US $ 83 m or near Rs 500 crs at par in SPGVL. Yet the EGM notice states the Issue of Shares by SPTL to FVCIs as above will be at Rs 464.46.Maybe I’ve missed something.But that’s not the point of this blog post anyway

The SPTL EGM notice to justify Rs 464.46/STPL Share price to issue new shares, while referring at several places to a Valuation Report from a registered Valuer, it does not mention who the Valuer is. SPTL Website does not hold this Valuation Report as it is not a listed company and does not have to comply with more stringent Exchange & SEBI regulations for listed companies. Is it Haribhakti & PWC again ? If so,it would be really interesting how their Valuation galloped over 300% in quick time from Rs 112.30/share & overall under Rs 900 crs as on March 31, 2015 to Rs 464.46/share & overall over Rs 3800 crs as on March 2, 2017!

How Many STL Shareholders got short circuited on the Demerger

Lets suppose you held 100 shares of listed STL on the demerger record date of 16/6/2016 at your cost of Rs 100 & thus investment of Rs 10000 & were mislead by the low valuation(Haribhakti & PWC) of Rs 112.30 per share of SPTL &  the fact that there will be no listing of SPTL  & you opted for the redeemable preference share instead of the equity share of SPTL at Rs 112.3.You would have been alloted 20 SPTL Preference shares and will get on maturity Rs 125.55 per share=> Rs 2511.You yet hold the 100 STL Shares which currently quotes @ Rs 145.Thus your value of the original Rs 10000 investment will be Rs 14500 (100 STL Shares) + Rs 2511 (20 SPTL Preference shares)= Rs 17011….not bad at over 70% returns

Yet consider this if you had wisely opted to receive 20 SPTL for Rs 112.30 your Investment of Rs 10000 would today notionally be Rs 14500(100 STL Shares) + Rs 9289 ( 20 SPTL @ Rs 464.46) => Rs 23789 & that’s nearly 140% ….even if you consider a lower Rs 270 as the unlisted quoted price for SPTL the total comes to Rs 14500 + 5400= Rs 19900 or @ 100% gains

SPTL Quote considered separately of course shows a huge over 300% surge from Rs 112.30 in August 2016 to Rs 464.46 as per Company Valuation & over 140% at  Rs 270 as per unlisted markets

You as a STL Shareholder, who opted for the Preference Shares instead of the Equity shares, in SPTL just nine months ago in August 2016 has been short circuited  as recent events & developments suggest that there is more than meets the eye on the SPTL share valuation at the time of the Demerger !   

This is more than a serious Corporate Governance Issue in my view. I have always had issues with Corporate Governance in the Sterlite Group right from the time cash rich & debt free Sesa Goa was merged into the group company and it’s cash was used to fund a stake in Cairns

I really am all three emotions wrapped up in one on this one ! ~ Happy, Sad, Angry

  Happy ~ for those STL Shareholders who just nine months ago in August 2016 were wise to choose to get the unlisted SPTL shares which were allotted in a 1: 5 ratio & at a value of Rs 112.30 per share in the Demerger.The Value in unquoted I’m told is Rs 270 & SPTL itself values it now at Rs 464.46 !

  Sad ~ for those STL Shareholders who opted unwisely to receive the 8% Redeemable Preference Shares of  Rs 112.30 in same 1: 5 ratio & who will get Rs 125.55 on maturity after eighteen months after allotment unless they sell/sold it in the secondary markets as this is listed.Surely they would have been wiser had they read my July 2015 elaborate blogpost(linked below) on this.They need to inquire of STL Board & Promoters why such a low SPTL Valuation just nine months ago & what existing & potential information was withheld from them so their decision to opt for the redeemable shares  became a less winning & therefore a wrong one  

  Angry ~ at the Sterlite Vedanta Group & it’s Promoters & Top Management & the Valuers for valuing SPTL Rs 112.30/share & under Rs 900 crs  & building up a case that Shareholders were better off getting the Rs 125.55 on the Preference Shares rather than the Equity share at the time of demerger as the Company would be unlisted with a long gestation period for it’s projects & operations before it bore fruit.It’s evil

I had clearly spelled out on July 17,2015 itself in my blogpost what will unfold and that Shareholders of STL should not opt to receive the Preference Share that would be redeemed but to go for the Equity shares of SPTL in the demerger, even if unlisted as they would recover the monies from the surge in STL price itself . This is exactly that has played out .

Here’s that comprehensive blogpost below for easy reference. Do read it to get a sense of what I sensed Sterlite was up to !

Sterlite Tech upwardly mobile @ Rs 104+ on the Digital India & Demerging Power Story

So what is the Real Value of SPTL ?

Well,listed Adani Transmission has soared to Rs 85 & a Market Cap of @ Rs 9400 crs and boasts of being India’s largest Private Power Transmission Player with 5450 ckt kms lines in Operation,1900 under development & 3500 under acquisition with MOUs in place

Unlisted (as yet) SPTL too boasts of beings India’s leading Private Player in the Transmission field .It’s fully diluted Equity of FV Rs 2 would be @ Rs 16.50 crs comprising of @ 8.25 cr shares.At Rs 464.46 it would be valued just over Rs 3800 crs.At Rs 270 the value drops to just over Rs 2200 crs.Yet much higher in quick time than the under Rs 900 crs valued by Haribhakti & PWC as on March 31,2015.There are fresh Shareholder agreements between SPTL & the FVCIs .The Original Ones of 2014 between Holding Company SPGVL & the FVCIs was till 2019 and one of the exit routes specified was an IPO ! ~ & here we had the Vedanta Founder Anil Agarwal saying SPTL would be unlisted in his Annual Report Statement ….what if it does get listed in the next few years !.It’s current and potential capacities are in marching along with those of Adani Transmission….and btw listed STL at Rs 145 has a Market Cap of Rs 5800 crs

In my view the Vedanta Group & it’s Promoter,Anil Agarwal would have won a Fairplay Award if at the time of Demerger of STL,they would have simply offered Equity shares of SPTL to the STL Shareholders rather than give them one more option of redeemable preference shares ,just because they had decided not to list SPTL & thus provide an exit route !~ Instead with such a huge rise of over 300% in unlisted SPTL Valuations from Rs 112.30 to Rs 464.46 in real quick time by Company’s own Valuation it leaves more than a bitter taste for those who opted for the redeemable shares.They have a strong reason to suspect low valuations at the time of the demerger when they had to decide their choice of shares just nine months back .They have a strong reason to raise their Voice….as I daresay,SEBI too must do.Something is not right here!

STL Shareholders have already been injured & adding insult to this would be if SPTL actually launches an IPO in the near coming years at a very High Price !

Clearly just re-naming the Sterlite Group as the Vedanta Group after one of India’s sacred & spiritual Hindu philosophies does not make the Group a sacred & revered one

Guys ,what do you make of this !? Do you sense I’m making too much of this & it’s just a coincidence that the Power Sector fortunes have taken off in recent times for both listed & unlisted entities in the sector & unlisted SPTL is just a happy beneficiary of this & deserves much higher Valuations & that it’s not a pre-planned & pre-meditated exercise to have deprived over 60000 Minority STL Shareholders of SPTL Shares by not listing them & offering a low valuation exit option just nine months ago in August 2016 ?

Convince me it’s just Co-incidence & I’m ready to change my View but don’t tell me those over 60000 minority shareholders had two choices & they exercised a less winning one ! ~ the question is whether they were deliberately guided to do so

Disclaimer : STL was one of my fundamental selects way back in 2012/13 at Rs 30 levels,despite Corporate Governance Issues that continue to challenge me in the Vedanta Group.The Interest had stayed till 2015. I loved it’s potential & it has lived up to it.STL regularly features in my Training sessions on Valuation  when I explain Demerger Situations .However neither my family & me have any Investment in listed STL or unlisted SPTL either at the time of Demerger in August 2016 or now nor have I received any compensation from anyone  or expect to for this blogpost which is solely the expression of my views on the subject matter.

Exide Industries Ltd
Auto Parts & Equipment
FV – Rs 1; 52wks H/L – 240.55/134.65; TTQ – 7.81 Lacs; CMP – Rs 238 (As On April 20, 2017);                      

            Market Cap – Rs 20310 Crs

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

Standalone Financials and Valuations for 9Mnths FY17

Valuation Parameters:

1. Long Term Debt to Equity – NA
2. ROE % – 16
3. Market Cap/Sales – 0.5

• Exide can produce around 34.2 million units of automobile batteries (including batteries for motorcycle applications) annually, and over 2824 million ampere-hours of industrial power every year.
• The company has a planned capital expenditure of over Rs. 1400 Crs for technology up-gradation, making the organisation more cost-efficient and driving higher automation
• The company is implementing a large scale CastOn-Strap (COS) line at Hosur, which will be manufacturing large-size batteries in FY 2016-17, enabling faster turnaround and output. At Haldia plant, they have commenced operations of another COS line for much larger batteries (traction cells).
• Exide is one of the few battery manufacturers who are capable of manufacturing submarine batteries for a wide range of submarine designs. During FY 2015-16, submarine batteries recorded an impressive growth of around 42% over the previous year.
• Despite a gloomy Global Automotive outlook, export of Automotive Batteries registered a marginal growth of around 2% in value. The export of Industrial Batteries, Home UPS and Solar Systems recorded a volume growth of around 6.5% over the previous year.

Overview:

• Exide Industries Ltd is a storage battery company.
• The Company designs, manufactures, markets and sells a range of lead acid storage batteries.
• It operates through Storage Batteries & allied products, Life Insurance Business and Others segments.
• Storage batteries & allied products segment includes the holding company and some of its subsidiaries manufacture lead acid storage batteries and allied products.
• The Life Insurance business segment is engaged in life insurance business carried by its subsidiaries.
• It offers a range of products, including automotive batteries, solar batteries, submarine batteries, industrial batteries, genset batteries, inverter batteries and home uninterruptible power supply systems.
• The Company manufactures batteries for the automotive, power, telecom, infrastructure projects, computer industries, as well as the railways, mining and defense sectors.
• Its manufacturing units are located in West Bengal, Haryana, Maharashtra, Tamil Nadu and Uttarakhand.

Management:

• R. G. Kapadia – Chairman
• G. Chatterjee – MD & CEO
•  A. K. Mukherjee – CFO

The Equity Capital is @ Rs 85 Crs consisting of 850000000 equity Shares of FV Rs 1 currently held as under

None Of the Promoter’s Holding is pledged.

Major Non – Promoter Holdings:

Consolidated Financial Trends (In Rs. Crs) :

Sales of Automotive Batteries had a growth rate of 4.3% by volume in 2015-16.

The aftermarket sales of four wheeler batteries witnessed an overall growth of 10% in units from the previous year.

In the two wheelers aftermarket, the growth rate during the year was nearly 14%. Sale of batteries in the four wheeler OEM division was however lower by about 2% in units during the year.

In the OEM two wheelers, the Company witnessed a growth rate of 3% in sales as compared to that of previous year

Eastern Gases Ltd
Oil Marketing & Distribution
FV – Rs 10; 52wks H/L – 72.9/23.1; TTQ – 495; CMP – Rs 61 (As On April 17, 2017);                      

            Market Cap – Rs 90 Crs

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

Standalone Financials and Valuations for 9Mnths FY17

Valuation Parameters:

1. Long Term Debt to Equity – 0.33
2. ROE % – 10
3. Market Cap/Sales – 0.33

Eastern Gases to consider purchasing shares of Asia LPG Pvt Ltd to extent of 100 percent and make it a unit of company. http://in.reuters.com/article/brief-eastern-gases-to-consider-purchasi-idINFWN1G60HO

With the new government policy PAHAL (DBTL) Scheme it has able to restrict the black marketing of subsidies LPG and thereby saves Rs 10,000 crores. It has predominantly increased the sale of cylinders at market price and thereby a huge opportunity to the parallel marketers to play.

The company has started two new LPG bottling plants at Bangalore & Hyderabad with its vision of pan India presence. This will add to company’s presence in Domestic, Commercial and Industrial segment. With various government checks on Domestic LPG supplies the company expects that the Domestic sector will also open up as Good Avenue in years to come.

The Authorized Equity Share Capital of the Company be and is hereby increased from Rs. 15 Crs divided into 15000000 (One Crores Fifty Lakhs) Equity Shares of Rs. 10 each to Rs. 18.08 CRs divided into 18080000 (One Crores Eighty Lakhs Eighty Thousand) Equity Shares of Rs. 10 each by creation of additional 3080000 (Thirty lakhs Eighty Thousand) Equity Shares of Rs. 10 amounting to Rs. 30800000 (Rupees Three Crores Eight Lakhs) by way of warrants, each ranking pari- passu in all respect with the existing Authorized Equity Share Capital. http://corporates.bseindia.com/xml-data/corpfiling/AttachHis/0d7f9aa4-c51c-4f85-bb76-11b42c390f0b.pdf

Overview:

• Eastern Gases Ltd iis engaged in manufacturing of gas and distributing of gaseous fuels.
• The Company is engaged primarily in the business of bottling, trading of liquefied petroleum gas (LPG) and Retailing of AutoLPG.
• It also manufactures propane, ammonia and butane, and supplies fuel to various companies in industrial houses.
• The Company also undertakes execution of turnkey projects of gas installation customized according to the customers’ requirements on a long-term gas supply contract basis.
• It can supply gas on long-term contract, as well as setup installations at the customer’s premises.
• The Company also provides testing services, such as SRV Testing.
• The Company is engaged in marketing its EAST GAS brand commercial LPG cylinders.
• The Company has bottling plants located throughout India.
• Its total installed capacity is 70,000 metric ton (MT) per annum.
• It caters the commercial cylinder market of West Bengal, Bihar and Orissa from its own bottling plant situated at Durgapur.

Management:

• Sushil Kr. Bhansali – CMD
•  Ranjeet Kochar – CFO

The Equity Capital is @ Rs 15 Crs consisting of 15000000 equity Shares of FV Rs 10 currently held as under

None Of the Promoter’s Holding is pledged.

Major Non – Promoter Holdings:

Standalone Financial Trends (In Rs. Crs) :

The financial year 2015-16 witnessed the results of recent internal improvement programs and also reflected the positivity of the macro environment.

Net Sales increased by 17.26% and Net Profit increased by 14.84% .

Kriti Industries Ltd
Plastic Products
FV – Rs 1; 52wks H/L – 46.7/21; TTQ – 28 K; CMP – Rs 43.5 (As On March 16, 2017);                      

            Market Cap – Rs 216 Crs

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

Standalone Financials and Valuations for 9Mnths FY17

Valuation Parameters:

1. Long Term Debt to Equity – 0.36
2. ROE % -20
3. Market Cap/Sales – 0.45

During the year the company processed 49010 MT of plastic as against 37812 MT as of last year which results in 29.61% growth.

Company has undertaken Water tank, RPVC Pipes & Fittings, CPVC and Infrastructure up gradation expansion projects involving capital outlay of Rs.14 Crs in Phase I to be financed by Term loan of Rs.10 Crs and balance by internal accruals, Company has availed term loan Rs. 8.5 Crs during the year. Company has repaid term loan of Rs. 7.93 Crs during the year.

Overview:

• Kriti Industries (India) Ltd is engaged in the pipes business. The Company operates under Plastic segment in over four verticals, such as agriculture, building products, micro irrigation and infrastructure.
• Its agriculture products include rigid polyvinyl chloride (RPVC) pipe and fittings, casing pipe, polyethylene (PE) coils, sprinkler systems, submersible pipe, suction and garden pipe.
• Its building products include soil waste rainwater (SWR) drainage pipe and fittings, chlorinated polyvinyl chloride (CPVC) and plumb pipe and fittings, and garden pipe. Its micro irrigation products include micro irrigation lateral (inline and online), sprinkler systems, and RPVC pipe and fittings.
• Its infrastructure products include RPVC ring fit pipe (elastomeric) and fittings, high-density PE (HDPE) and medium-density PE (MDPE) pipes and fittings, permanently lubricated (PLB) telecom duct and micro duct.
• Kriti Auto & Engineering Plastics Pvt. Ltd is the wholly owned subsidiary of the Company with a gross turnover of Rs. 19 Crs and a Net Loss of 0.1 Crs.

Management:

• Shiv Singh Mehta – MD
•  V. K. Mittal – CFO

Major Non – Promoter Holdings:

Consolidated Financial Trends (In Rs. Crs) :

The performance of the company was possible due to stability in Raw Material prices and Inventory Management.

Music Broadcast Ltd

Issue Open: Mar 6, 2017 – Mar 8, 2017
Issue Type: Book Built Issue IPO
Issue Size:
Fresh Issue of Equity Shares of Rs 10 aggregating up to Rs 400.00 Crs
Offer for Sale of 2658518 Equity Shares of Rs 10
Face Value: Rs 10 Per Equity Share
Issue Price: Rs. 324 – Rs. 333 Per Equity Share
Market Lot: 45 Shares
Minimum Order Quantity: 45 Shares
Listing At: BSE, NSE

BRRLM – ICICI Securities Ltd

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

• Post issue Promoters Holding will come down to ~70%

Standalone Financials and Valuations for H1 FY17

Music Broadcast Limited operates as a subsidiary of Jagran Prakashan Limited.

Objects of the Issue:

• Redemption of Listed NCDs; 
• Early redemption of the JPL NCDs and repayment / pre-payment of JPL ICDs;and
  General corporate purposes.

Category-wise Break up:
Anchor – 4401159 Shares = 146.56Crs.
Net QIB – 2934106 Shares = 97.71Crs
NII – 2200580 Shares = 73.28Crs
RII – 5134685 Shares = 170.99Crs. (Lot size = 45)
Total Issue – 14670530 Equity Shares = 488.53Crs.

Overview:

• Music Broadcast Ltd (MBL) is operating radio stations under the branch “Radio City” and has grown its presence from 4 cities in 2001 to 37 cities as on 15th February 2017. These radio stations include the eight “Radio Mantra Stations” transferred from SPML pursuant to the Scheme of Arrangement and nine out of eleven New Radio City Stations. The company expects the remaining two New Radio City Stations to be operationalised by March/ April 2017.
• MBL is present in 12 out of the top 15 cities in India by population having a reach to over 49.60 million listeners in 23 cities.
• All its Phase II Radio City Stations which were under Phase II Policy have been migrated to the Phase III Policy.
• These include Radio City stations which are present at Bengaluru, Lucknow, Mumbai, New Delhi, Chennai, Pune, Hyderabad, Ahmedabad, Surat, Nagpur, Jaipur, Vadodara, Coimbatore, Vizag, Ahmednagar, Sholapur, Sangli, Nanded, Jalgaon and Akola and the Radio Mantra Stations which have been transferred to it pursuant to the Scheme of Arrangement which are located at Agra, Bareilly, Gorakhpur, Varanasi, Jalandhar, Ranchi, Hissar, and Karnal. Under the Phase III Policy, new cities were opened up for auction, pursuant to which MBL acquired 11 additional radio stations i.e. the New Radio City Stations.
• The New Radio City Stations which have been operationalised are located at Kanpur, Ajmer, Kota, Udaipur, Patiala, Jamshedpur, Nasik, Kolhapur and Madurai. The remaining two New Radio City Stations namely Bikaner and Patna are expected to be operationalised by March/ April 2017.
• Under the Phase III Policy the license period for radio stations has been increased to 15 years and radio stations are now permitted to carry news bulletins of AIR and also network their radio stations in all cities. 

The Promoter of the Company is JPL (Jagran Prakasha Ltd)

(Jagran Prakashan Ltd is one of the leading media and communications groups in India with interests spanning across print, radio, digital, out of home and brand activations. JPL publishes 10 print titles in five different languages across 13 States in India and has over 400 editions and sub-editions. These include titles such as ‘Dainik Jagran’ –India’s largest read daily and – ‘Inquilab’, one of India’s leading Urdu daily. As of March 31, 2016, JPL had consolidated operating revenues of 2107 Crs and a profit after tax of 445 Crs on a consolidated basis. )

Major Shareholders:

• The shareholding of Spectrum and Crystal were subsequently transferred to JPL pursuant to the Scheme of Arrangement.

From 1999 till 2005 it issued equity at par and in 2006 it issued few shares at a price of Rs. 32703.47 per share. In 2007 it issued further equity at a price of Rs. 70 per share and thereafter it again issued more shares at par in 2007 and 2015. In 2006 it also issued bonus shares in the ratio of 705.13 shares for every 1 share held.

Standalone Financial Trends (In Rs.Crs) :

The Radio Revenue is 55%.

Debt is long term in nature (except 3 Crs short term included on FY2016)

Peer Comp: (Standalone FY16)

The market share of MBL is 21% whereas ENIL is 20%

The value share of MBL is 23% and ENIL is 24%

Netwrok18 Ltd
Holding Companies
FV – Rs 5; 52wks H/L –49.2/30; TTQ – 58 K; CMP – Rs 38 (As On February 23, 2017);                      

            Market Cap – Rs 3989 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 – 0.7
2. ROE % – 4
3. Market Cap/Sales – 2

Overview:

• Associated Stone Industries is the world’s largest stone mining companyand the only listed one in India. The end user of the industry is the Real estate, construction and Infrastructure.

• Established in 1945, during the time of the British Raj, Associated Stone Industries has a long and distinguished history of providing its customers with beautiful, sophisticated and exotic products.
• ASI still holds the largest quarries in the world spread across 10 sq kms at Ramganjmandi, situated in Rajasthan, the home of the most flawless Kotah Stone.
• Powered by a work force of 5000 dedicated, passionate and driven employees, ASI produces a staggering 15 Crore Sq.ft of Kota Stone each year.
• Unwilling to compromise on quality, ASI has equipped themselves with the best diamond tool units for cutting, sawing & shaping various natural stones, and produces some of the finest natural stones, all at par with global standards.
• The Company has sold Wind Power Unit of 1.125 MW at Tirupur District of Tamil Nadu in November, 2015.

The Company has acquired a foreign subsidiary in UAE, Al Rawasi Rock and Aggregates LLC, through its wholly owned subsidiary viz. ASI Global Ltd., Mauritius to tap the opportunity of huge volume of industrial, infrastructure, reclamation and other construction work currently underway in the Arabian Gulf region. The estimated reserve of quarry of this Company is around 200 million tones which is sufficient for about 45 years of its operations.

Management:

• Deeapk  Jatia – CMD
• Pavan  Soni – CFO

Major Non – Promoter Holdings:

Consolidated Financial Trends (In Rs. Crs) :

For the year under review, the production of Kotah Stone was 1207.40 Lacs sq. ft. as against 1172.77 Lacs sq. ft.

Associated Stones Industries (KOTAH) Ltd
Mining
FV – Rs 1; 52wks H/L –47.70/10.88; TTQ – 6 Lacs; CMP – Rs 48 (As On February 22, 2017);                      
Market Cap – Rs 399 Crs

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

Consolidated Financials and Valuations for H1 FY17

*On 26/11/2015 there was a stock split from Rs.5 to Rs.1

*On 29/9/2016 there was a bonus issue of 1:4 equity shares of Rs.1 each

Valuation Parameters:

1. Long Term Debt to Equity – 0.7
2. ROE % – 4
3. Market Cap/Sales – 2

Overview:

• Associated Stone Industries is the world’s largest stone mining companyand the only listed one in India. The end user of the industry is the Real estate, construction and Infrastructure.
• Established in 1945, during the time of the British Raj, Associated Stone Industries has a long and distinguished history of providing its customers with beautiful, sophisticated and exotic products.
• ASI still holds the largest quarries in the world spread across 10 sq kms at Ramganjmandi, situated in Rajasthan, the home of the most flawless Kotah Stone.
• Powered by a work force of 5000 dedicated, passionate and driven employees, ASI produces a staggering 15 Crore Sq.ft of Kota Stone each year.
• Unwilling to compromise on quality, ASI has equipped themselves with the best diamond tool units for cutting, sawing & shaping various natural stones, and produces some of the finest natural stones, all at par with global standards.
• The Company has sold Wind Power Unit of 1.125 MW at Tirupur District of Tamil Nadu in November, 2015.

The Company has acquired a foreign subsidiary in UAE, Al Rawasi Rock and Aggregates LLC, through its wholly owned subsidiary viz. ASI Global Ltd., Mauritius to tap the opportunity of huge volume of industrial, infrastructure, reclamation and other construction work currently underway in the Arabian Gulf region. The estimated reserve of quarry of this Company is around 200 million tones which is sufficient for about 45 years of its operations.

Management:

• Deeapk  Jatia – CMD
• Pavan  Soni – CFO

The Equity Capital is @ Rs 6.63 Crs consisting of 66283760 equity Shares of FV Rs 1 currently held as under

57.95% Of the Promoter’s Holding is pledged.

Major Non – Promoter Holdings:

Consolidated Financial Trends (In Rs. Crs) :

For the year under review, the production of Kotah Stone was 1207.40 Lacs sq. ft. as against 1172.77 Lacs sq. ft.

Nitiraj Engineers Ltd

Issue Details: 

Issue Open: Feb 20, 2017 – Mar 1, 2017

Issue Type: Fixed Price Issue IPO

Issue Size: 2200800 Equity Shares of Rs 10 aggregating up to Rs 22.01 Crs

Face Value: Rs 10 Per Equity Share

Issue Price: Rs. 100 Per Equity Share

Market Lot: 1200 Shares

Minimum Order Quantity: 1200 Shares

Listing At: NSE SME

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

• Virtually Debt Free

Consolidated Financials and Valuations for H1 FY17

Overview:

• Nitiraj Engineers Ltd does the manufacturing of Electronic Weighing scales and Systems and Digital fare meters in India.
• The entire production is done under the company own brand name, which is
• Company also offers jewelry, tabletop, price computing, piece counting, platform, hanging, industrial weighing, baby weighing, person weighing, adult weighing, body mass index, and kitchen scales; and special application indicators, currency counting machines, and taxi/rickshaw fare meters.
• Company supplies entire its product under the brand name of PHOENIXin India and internationally.
• The Company has Large marketing, service and dealer network, with 13 branch offices and 400+ dealers across India with more than 1 million customers.
• The Company faces competition from several Indian manufacturers like Devishree Mudran Pvt. Ltd. (Dolphin), Apple Weighinfra Limited, Precision Electronics Instrument Co. (Gold Tech), Sansui Electronics Pvt. Ltd. etc. The major factors which affect competition in our business are product quality, pricing and client servicing. Internationally, competition comes from low-cost products, which are manufactured in China and quality products, which are manufactured in Germany, Italy, Japan etc.
• The products are manufactured at our manufacturing unit located at Parwanoo, Himachal Pradesh. They also have manufacturing facility at Silvassa, UT which is not under active use currently.

Objectives of IPO:

• Development of new products.
• Setting up manufacturing Unit for the existing and new range of products.
• Expansion of Marketing Network and Brand building.
• General Corporate Purposes.
• Issue Expenses.

IPO expenses details:

• Development of new products. 5 Crs
• Setting up manufacturing Unit for the existing and new range of products.   5 Crs
• Expansion of Marketing Network and Brand building. 5 Crs
• General Corporate Purposes. 5 Crs
• Issue Expenses. 1 Cr

Products :

• Industrial range – These include weighing machine systems required by large industrial establishments having requirement of weighing heavy or voluminous material. The offering in this segment also includes electronic weigh bridges.
• Commercial range – It forms the Company‘s major business. These are utilised mainly by business units in retail sector ranging from small shopkeepers to big departmental stores. The product offerings include currency counting machine with variety of feature like counterfeit currency detection, sorting, totalling etc. which offer huge utility value for commercial establishments.
• Jewellery range – Machines made specifically for jewellery sector offering high weighing accuracy to check weights of precious metals. Besides jewellers, these machines find application amongst banks and other financial institutions offering gold loans.
• Healthcare range – These include baby weighing machines, Body Mass Index (BMI) machines and adult weighing scales etc. These machines find their utility in public places like malls, healthcare centres, gymnasiums etc.
• Household range – These include machines like personal weighing scale and kitchen scales and are useful for various purposes in households.
• Automobile range – Our offerings in this range includes electronic fare meters for auto rickshaws and taxis. The electronic fare meter is relatively newer product offering and we are in the process of its standardization for large scale commercial production.

Nitiraj Engineers Ltdd is already supplying machines to various state governments under CGMS program. These machines have advanced technology support in form of data collection, plotting, MIS and dissemination. With the help of technology the task of record keeping, plotting, data management and reporting can be handled by the weighing machine systems itself. This provides the field staff and supervisory staff to focus on actual action points to achieve objectives of CGMS and ICDS rather than spending time on data management. The Company expects the demand of this segment to sustain and grow in the coming years

Dealer Network:

Management :

Mr. Rajesh Nath Bhatwal is the only Promoter of the Company

Consolidated Financial Trends (In Rs.Crs) :

Debt is Short term Debt only as it has no Long term Debt.