Reblog: IPO Review Hindustan Aeronautics Ltd.


IPO Snapshot:

Hindustan Aeronautics is entering the primary market on Friday 16th March 2018 with an offer for sale (OFS) of up to 3.41 crore equity shares of Rs. 10 each by Government of India, in the price band of Rs.1,215 to Rs. 1,240 per share, with Rs. 25 per share retail and employee discount. Representing 10.2% of the post issue paid-up share capital, Government is expected to rake in Rs. 4,200 crore at the upper end of the price band. The issue is closing on Tuesday 20th March and listing is likely on 28thMarch.

Company Overview:

India’s largest defence PSU and world’s 39th largest aerospace, Navratna company Hindustan Aeronautics designs, develops, manufactures and maintains aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures, including military aircrafts, such as MiG-21, MiG-27, Hawk Mk 132 and Su-30MKI. Over 90% of company’s Rs. 18,000 crore revenue is derived from Indian Defence Services, while exports account for about 3%. Business operations are divided into five verticals (Bangalore, MiG, Helicopter, Accessories and Design) comprising 20 production divisions and 11 R&D centres located across India, in addition to establishing 13 commercial JVs with American, Russian, Israeli and Canadian counterparts. Relying on both indigenous research as well as technology transfer and licence agreements with third parties, company spends ~7% of revenue annually towards R&D. Its Rs. 68,461 crore order book, as of 31-12-17, representing 4x annual topline, is also very encouraging.

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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.

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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.

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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.

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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.

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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.

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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.

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Reblog: Newgen Software IPO review


IPO Snapshot:

Newgen Software Technologies is entering the primary market on Tuesday 16th Jan 2018, via a fresh issue-cum-offer for sale of equity shares of Rs. 10 each, in the price band of Rs.240 to Rs. 245 per share. The issue comprises a fresh issue of up to Rs. 95 crore and an offer for sale (OFS) of 1.35 crore equity shares by 4 PE investors. Representing 25.01% of the post issue paid-up share capital at the upper end, total issue size is Rs. 485 crore at the upper end, of which, 80% or Rs. 390 crore is the OFS portion. The issue will close on Thursday 18th Jan while the listing is expected on 29th Jan.

Company Overview:

Newgen Software Technologies is a software product company serving banking, Govt agencies, BPO / IT, insurance, healthcare verticals, through its basket of 3 product platforms – enterprise content management, business process management, customer communication management. While 40% revenue comes from India, approximately 27% comes from the US and Middle East each, and balance from Asia Pacific. Broadly, 27% of revenue is generated through sale of software product, 28% from implementation service, 22% from annuity based support service and 17% from AMC.

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Reblog: IPO Review Apollo Micro Systems Ltd.


Apollo Micro Systems is an electronic, electro-mechanical, engineering designs, manufacturing and supplies company.They design, develop and sell high-performance, mission and time critical solutions to Defence, Space and Home Land Security for Ministry of Defence, government controlled public sector undertakings and private sectors.

Company’s manufacturing facility is located in Hyderabad. They are an ISO 9001: 2015 certified company in relation to design, development and manufacturing of electronics and electro-mechanical systems including software.

The company develops customised solutions using common hardware and software technology IPs which can be re-configured to suit the end application and domain requirements of the end customer.

The company has participated in several Indigenous Missile programmes, underwater electronic warfare, underwater missiles, surface to air missiles, nuclear missile programmes, surface to surface missile programmes, indigenous submarine programmes UAV’s long and short endurance, ships, space programmes.

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Reblog: Astron Paper IPO review


Astron Paper and Board Mills Ltd. (APBM) is engaged in manufacturing of kraft paper and catering to the packaging industry. It has a current capacity of 96000 mt p. a. Post proposed expansion plans, its total installed capacity will stand increased to 129000 mt p. a. Its manufacturing and dispatch process has been assessed and certified ISO 9001:2015 and ISO 14001: 2015 by SGS United Kingdom Ltd. It is using waste paper as its main raw material and thus saving the usage of wood, thus following green initiative. APBM’s kraft paper is used by packaging industry in manufacturing corrugated boxes, liners, sacks and composite containers.

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