Reblog: Rites Ltd IPO review


Rites Limited (Rites) (erstwhile known as Rail India Technical & Economic Services Ltd.) is a wholly owned Government Company, a Miniratna (Category – I) Schedule ‘A’ Public Sector Enterprise and a leading player in the transport consultancy and engineering sector in India and the only company having diversified services and geographical reach in this field under one roof. It has an experience spanning 43 years and undertaken projects in over 55 countries including Asia, Africa, Latin America, South America and Middle East regions. Rites is the only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia and Indonesia). The company is a multidisciplinary engineering and consultancy organization providing a diversified and comprehensive array of services from concept to commissioning in all facets of transport infrastructure and related technologies.

Rites was incorporated by the Ministry of Railways, Government of India (“MoR”) and have the benefit of being associated with the Indian Railways, which is the fourth longest rail network in the world. It has developed expertise in (1) Design, engineering and consultancy services in transport infrastructure sector with focus on railways, urban transport, roads and highways, ports, inland waterways, airports and ropeways; (2) Leasing, export, maintenance and rehabilitation of locomotives and rolling stock, (3) Undertaking turnkey projects on engineering, procurement and construction basis for railway line, track doubling, 3rd line, railway electrification, up gradation works for railway transport systems and workshops, railway stations, and construction of institutional/ residential/ commercial buildings, both with or without equity participation; and (4) Wagon manufacturing, renewable energy generation and power procurement for Indian Railways through our collaborations by way of joint venture arrangements, subsidiaries or consortium arrangements.

Continue Reading


Reblog: Fine Organic IPO review


Fine Organic Industries Ltd. (FOIL) is the largest manufacturer of oleochemical-based additives in India and a strong player globally in this industry. It produces a wide range of specialty plant derived oleochemical-based additives used in food, plastic, cosmetics, paint, ink, coatings and other specialty application in various industries. As at March 31, 2018, FIL had a range of 387 different products sold under the ‘Fine Organics’ brand. It is the first company to introduce slip additives in India and is the largest producer of slip additives in the world. As on 31.03.18 it has 631 direct customers (i.e., end-users of products) and 127 distributors from 69 countries. Its customer list comprises of multinational, regional and local players manufacturing consumer products and petrochemical companies and polymer producers globally. FOIL’s plastics additives and specialty additives are also used in the packaging of foods and other fast moving consumer goods.

The company manufactures additives from base oleochemicals is a highly specialised and fully atomized process. Hence, many of these additives are specialty products, and this industry enjoys premium margins with only a few players dominating the industry globally. The company has three production facilities in Maharashtra -one in Ambernath, one in Badlapur and one in Dombivli.  As at March 31, 2017, these three facilities have a combined installed capacity of approximately 64,300 tonnes per annum.  FOIL is in the process of setting up an additional production facility in Ambernath with a planned installed capacity of 32,000 tonnes per annum and expects it to commence operations in the fourth quarter of Fiscal 2019. In addition, it is planning to set up a new production facility in Leipzig, Germany with a planned initial installed capacity of 10,000 tonnes per annum and expects to commence operations in the third quarter of Fiscal 2020. This facility will be owned and operated by a joint venture company with 50% equity interest by FOIL.

Continue Reading


Reblog: Review IndoStar Capital Finance Limited IPO


After a lull in the month of April 2018, long wait for main board IPO for financial year 18-19 is over with a non-banking finance company breaking the ice with its float of around Rs. 1850 crore. Details of the first main board IPO of this fiscal is given hereunder:

Indostar Capital Finance Ltd. (ICFL) is a leading non-banking finance company (“NBFC”) registered with the Reserve Bank of India as a systemically important non-deposit taking company. It is a professionally managed and institutionally owned organization which is primarily engaged in providing bespoke Indian Rupee denominated structured term financing solutions to corporate and loans to small and medium enterprise (“SME”) borrowers in India. ICFL recently expanded its portfolio to offer vehicle finance and housing finance products. Although, the company operated in a challenging credit environment in the initial years of our business operations business has experienced growth since the commencement of operations in 2011. Between fiscal 2013 and 2017, its total credit exposure, total revenue and net profits grew at a CAGR of 30.0%, 31.4% and 23.7% respectively. Its corporate lending business which was at 99.8% in FY 2015 declined to 76.8% for the period ended 31.12.17 and for the said periods, its SME lending business grew from 0.2% to 22.7%. Vehicle financing operations started from November 2017 and housing finance operations started from March 2018.

Continue Reading


Reblog: Lemon Tree Hotels Ltd. IPO Review


Lemon Tree Hotels Ltd. (LTHL) is India’s largest hotel chain in the mid-priced hotel sector, and the third largest overall, on the basis of controlling interest in owned and leased rooms, as of June 30, 2017, according to the Horwath Report. It is the ninth largest hotel chain in India in terms of owned, leased and managed rooms, as of June 30, 2017, according to the Horwath Report. LTHL operates in the mid-priced hotel sector, consisting of the upper-midscale, midscale and economy hotel segments. Company seeks to cater to Indian middle class guests and deliver differentiated yet superior service offerings, with a value-for-money proposition. The company opened our first hotel with 49 rooms in May 2004 and as on 31.01.2018 it had 4,697 rooms in 45 hotels (including managed hotels) across 28 cities in India. On the said date it has 662992 members in loyalty programme as “Lemon Tree Smiles” and the number is continuously rising.

LTHL aims to be India’s largest and most preferred chain of hotels and resorts in each of the upper-midscale, midscale and economy hotel segments. Due to the dynamic and evolving nature of Indian guests’ expectations and based on its market research, company has created three brands in order to address these three hotel segments: (1) ‘‘Lemon Tree Premier’ which is targeted primarily at the upper-midscale hotel segment catering to business and leisure guests who seek to use hotels at strategic locations and are willing to pay for premium service and hotel properties; (2) “Lemon Tree Hotels” which is targeted primarily at the midscale hotel segment catering to business and leisure guests and offers a comfortable, cost-effective and convenient experience; and (3) “Red Fox by Lemon Tree Hotels” which is targeted primarily at the economy hotel segment.

Continue Reading


Reblog: Bandhan Bank IPO review


Bandhan Bank Ltd. (BBL) a microfinance company that got RBI license in 2015 for Bank has transited itself into a bank on 23rd August 2015. It had the mandate to bring IPO within three years of starting banking operation; it is coming much before that with its maiden IPO. BBL is a commercial bank focusing on serving underbanked and underpenetrated markets in India. Bandhan Bank has a banking license that permits it to provide banking services pan-India across customer segments. It currently offers a variety of asset and liability products and services designed for micro banking and general banking, as well as other banking products and services to generate non-interest income.

Continue Reading


Reblog: Bharat Dynamic IPO review


Bharat Dynamics Ltd. (BDL) is one of the leading defense PSUs in India engaged in the manufacture of Surface to Air missiles (SAMs), Anti-Tank Guided Missiles (ATGMs), underwater weapons, launchers, countermeasures and test equipment. It is the sole manufacturer in India for SAMs, torpedoes, ATGMs and also the sole supplier of SAMs and ATGMs to the Indian armed forces. Additionally, it is also engaged in the business of refurbishment and life extension of missiles manufactured. BDL is also the co-development partner with the DRDO for the next generation of ATGMs and SAMs. It currently has three manufacturing facilities located in Hyderabad, Bhanur and Vishakhapatnam. BDL enjoys Mini Ratna (Category – 1) status.

Off late Foreign Direct Investment (FDI) rates have increased in sectors like defense, insurance and other sectors. Under the ambit of the ‘Make in India’ initiative, investment procedure, license applications, declarations and other processes has been streamlined to boost investor confidence. Applications for permits have been digitized and a new uniform tax regime (Goods & Services Tax) has been implemented to reduce complexity in taxation. The nation also has a vibrant micro, medium and small enterprise (MSME) sector to support manufacturing units set up in India. The MSME sector is expected to perform a vital support function to the manufacturing sector and will be crucial to India’s agenda to raise the share of manufacturing in India’s GDP from 16% to 25% by the end of 2025. The central government, as well as state governments, are also trying to incentivize domestic and foreign players to ramp up defense manufacturing in India through a combination of tax benefits, infrastructure incentives, and other methods. The Indian defense market is in a state of transition, as a result of new policies promulgated by the government. BDL is in the process of setting up to new plants – one at Hyderabad, AP and another at Amaravati – Maharashtra.

Continue Reading


Reblog: H G Infra Engineering Ltd. IPO Review


H G Infra Engineering Ltd. (HGIEL) is an infrastructure construction, development and management company with extensive experience in focus area of road projects, including highways, bridges and flyovers. Its main business operations include (i) providing engineering, procurement and construction (“EPC”) services on a fixed-sum turnkey basis and (ii) undertaking civil construction and related infrastructure projects on item rate and lump sum basis, primarily in the roads and highway sector. It has also forayed into executing water pipeline projects and is currently undertaking two water supply projects in Rajasthan on a turnkey basis which includes the designing, construction, operation and maintenance of the project. HGIEL enjoys accreditations, such as the ISO 9001:2015, ISO 14001:2004, OHSAS 18001:2007 certification for quality management systems, environment management systems, and health and safety management systems, respectively, issued by LMS Assessment Services Private Limited.

HGIEL has executed or is executing projects across various states in India covering Rajasthan, Uttar Pradesh Haryana, Uttarakhand, Maharashtra and Arunachal Pradesh. During the last five years, Company has completed 13 projects above the contract value of Rs. 40 crore in the roads and highways sector aggregating to a total contract value of Rs. 1674.89 crore, which included construction, improving, widening, strengthening of two and four lane highways, construction of high-level bridge and construction of earthen embankment, culverts and cart track underpasses. As on November 30, 2017, Company has 21 ongoing projects in the roads and highways sector which includes construction, improving, widening, strengthening, up gradation and rehabilitation of two, four and six-lane highways construction of high-level bridge and construction of road network. HGIEL’s order book for these ongoing projects in the roads and highways sector amounted to Rs. 3585.31 crore as on November 30, 2017, accounting for 96.70% of its total Order Book. As of November 30, 2017, it had a total Order Book of Rs. 3707.81 crore, consisting of 21 projects in the roads and highways sector, four civil construction projects and two water supply projects.

Continue Reading


Reblog: Aster DM Healthcare IPO Review


Aster DM Healthcare Ltd. (Aster) is one of the largest private healthcare service providers which operate in multiple GCC states based on the number of hospitals and clinics and an emerging healthcare player in India. GCC states that comprise the United Arab Emirates, Oman, Saudi Arabia, Qatar, Kuwait and Bahrain. It also operates in Jordan and Philippines. Aster is having operations in different verticals and geographies. It has already started work for 10 new hospitals, 5 in GCC states and 5 in India. Although it has a larger portion of revenues coming from GCC states, due to India based company, it has registered office in the southern region and is mulling listing in India. Asters hospitals in India are located in Kochi, Kolhapur, Kottakkal, Bengaluru, Vijaywada, Guntur, Wayanad and Hyderabad. These are operated under “Aster”, “MIMS”, “Ramesh” or “Prime”, “Aster Aaadhar” and “Aster CMI” brands. Its clinics are located at Kozhikode, Eluru and Bengaluru. As of 30.09.17 the company had 17408 employees including 1417 full-time doctors, 5797 nurses, 1752 paramedics and 8442 other employees. In addition, it had 891 “fee for service” doctors.  Aster has a diversified portfolio of healthcare facilities, consisting of 9 hospitals, 90 clinics and 206 retail pharmacies in the GCC states, 10 multi-specialty hospitals and 7 clinics in India, and 1 clinic in the Philippines as of September 30, 2017. Overall currently it has total 323 operating facilities.

Majority of Aster hospitals and clinics provide secondary and tertiary healthcare services to patients. In addition to providing core medical, surgical and emergency services, some of its hospitals provide complex and advanced quaternary healthcare in various specialties, including cardiology, oncology, radiology, ophthalmology, neurosciences, pediatrics, gastroenterology, orthopedics and critical care services. Aster had plans on the table for more large hospitals in metros of India before the budget, but now it mulls affordable hospitals in tier –II and tier- III cities and in rural areas. No plans have been firmed up so far in this regard.

Continue Reading


Reblog: Galaxy Surfactants IPO review


Galaxy Surfactants Ltd. (GSL) is India’s one of the leading manufacturer of surfactants and other specialty ingredients for the personal care and home care industries. Its products find applications in a host of consumer-centric personal care and home care products including skin care, oral care, hair care, cosmetics, toiletries and detergent products. Over the years, GSL has significantly expanded and diversified its product profiles, client base and geographical footprints. Currently, its product portfolio comprises over 200 grades which are marketed to more than 1700 customers in over 70 countries. GSL is supplying its products to FMCG companies in India such as Cavinkare Pvt. Ltd., Colgate Palmolive, Dabur India, Henkel, Himalaya, L’OREAL, Procter & Gamble, Reckitt Benckiser, Ayur Herbals, Jyothy Lab and so on. It is exporting its products to Africa Middle East Turkey, Asia Pacific, Americas and Europe FMCG giants. To meet global demands, GSL has established step-down subsidiaries and manufacturing facilities is Egypt and USA. GSL has at present strategically located 7 manufacturing facilities out of which 5 are in India and 2 located overseas. It has registered 47 patents since 2002 and 38 patent applications pending. GSL’s products find applications across “mass”, “mass-tige” and “prestige” range of products and is the most preferred supplier to leading brands.

Continue Reading


Reblog: Amber Enterprises India Limited IPO Review


Amber Enterprises India Ltd. (AEIL) is a niche player in functional component manufacturing segment that is used widely by Room Air Conditioner (RAC) manufacturers. The company enjoys preference of eight out of 10 mega players in the field and is getting more new customers that are entering in this field as under While Goods penetration among users has vide difference as far as ACs are concerned. While TV, Fridge and Washing Machines enjoys penetration of over 10% to 60% in India, AC penetration is as low as around 4% and thus this segment has vide scope of advancement going forward.RAC penetration in neighboring countries ranges from 30 to 100%. Its customer includes Panasonic, LG, Daikin, Hitachi, Whirlpool, Voltas, Blue Star and Godrej. The company is a market leader in Indian RAC, OEM/ODM segments and has comprehensive product portfolio to suit the requirements of its customers. AEIL has 11 manufacturing facilities at 7 strategic locations and thus enjoys proximity of its prime customers. To stay tuned with the futuristic requirements, it keeps spending on R&D and backward integration. In last five years, it made two acquisitions i.e. PICL in 2012 and IL Jin in 2017 and is now able to offer maximum solutions under one roof. It enjoys “Make in India” status and helps India in reducing imports from China and other countries. While increasing temperature will bring more demand, adequacy of power supply help for the faster advancement of RAC markets domestically. As per Frost and Sullivan report, RAC and OEM/ODM markets are set to post CAGR of 12.4% and 25.1% respectively by 2022. AEIL enjoys a market share of 19.1% in RAC and 55.4% in OEM/ODM segments respectively. AEIL’s customers command around 75% of the Indian RAC market share.

Continue Reading