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Is Age of IPO investing over?

Shabbir Bhimani — Tue, 26 Jan 2010 11:16:52 +0000

Ashwin Jani, reader of the blog asked me

What are your suggestions and guidance for recent IPOs.
Aqua Logistics Limited
Vascon Engineers Limited
D B Realty Limited
Syncom Health-care Limited
Thangamayil Jewelery Limited

Thanks
Ashwin

And without going into the details of each of them I replied

In general all of them are highly priced.

And this was not done after any research but a simple reply.

I did reply very fast but how did I knew that. I just Googled about each of them and saw the title of what other experts have suggested.

I see that all the experts have an Avoid rating on all of them and CRISIL ratings are also not very impressive for majority of them.

So do you think Age of IPO investing is over?

Other similar posts ...

Cox and Kings IPO Allotment

Shabbir Bhimani — Sat, 05 Dec 2009 13:29:56 +0000

When I posted detail analysis on Cox and Kings IPO I did some investment and if you have also applied for the ipo you can check your allotment status online.

Visit the Karvy site and check how many shares have been allotted to you.

For ICICIDirect.com accounts login to your account. Click on IPO Tab at top and then Order Book option on the IPO page. From there copy the application number.

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Cox and King’s IPO – Review and Analysis

Shabbir Bhimani — Wed, 18 Nov 2009 07:57:38 +0000

Cox and King’s IPO is opening for subscription on November 18th, 2009 and will close on November 20th, 2009. Cox and Kings is a global tour operator, deriving majority of its revenues from the leisure segment. The company has a strong presence in the emerging and developed markets, and offers travel, forex and visa services. The price band for the IPO is 316-330/ Rs. per share.

Should you subscribe?

Cox and King have shown tremendous performance in the past.
Business holds high growth potential in the near future with the events like common wealth games
In the price range of close to 330 the stock would be close to 15 times its FY09 EPS

I would be subscribing to this IPO.

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How have I done in IPO Market. Did you do the same?

Shabbir Bhimani — Sat, 31 Oct 2009 06:16:20 +0000

Its always good to analyze how have we done when it comes to investing and so I thought lets analyze our IPO trades. IPO Market is in lots of discussion these days due to IndiaBulls Power IPO loosing almost 17% in opening trade and it looks like no one is making money when it comes to investing in IPO. Lets see if its actually true or not and see the performance of each of them.

Indiabulls Power IPO – Review and Analysis

My Thoughts at the time of subscribing:- You should not subscribe to it.
Issue Price Band:- 42-45 Rs
Current Price:- 38 Rs
Remarks:- You saved almost 15% of your capital by not subscribing to it.

Euro Multivision IPO

My Thoughts at the time of subscribing:- You should not subscribe to it.
Issue Price Band:- 70-75 Rs
Current Price:- 31 Rs.
Remarks:- Lets not get into how much you saved by not subscribing to it.

Thinksoft Global IPO – Review and Analysis

My Thoughts at the time of subscribing:- Few Good IPO’s I subscribed to.
Issue Price Band:- 120-125 Rs
Current Price:- 200+
Remarks:- Could have doubled the money but I offloaded it at the price close to 154. There is too much movement in the stock as of now to remain invested. Get the profit out if you have invested. Its party time but do not to get carried away and remain invested in it.

Should I Subscribe to Pipavav shipyard IPO?

My Thoughts at the time of subscribing:- Instead of subscribing to Pipavav Shipyard go for trading in Punj Lloyd.
Issue Price Band:- 55-60 Rs
Current Price:- 53
Remarks:- Punj Lloyd went from 240 at the time of IPO to 290 but due to bad result is currently at close to 200 which should be a good long term investment. I personally have done investment close to 210.

Oil India Limited IPO

My Thoughts at the time of subscribing:- It would be a good way to make some small money but it is not my favorites when it comes to investing in OIL India IPO.
Issue Price Band:- 950-1050 Rs
Current Price:- 1150+
Remarks:- I sold off on the day of listing at a price close to 1100 because of my view of flipping and not an investor in Oil India.

Jindal Cotex IPO

My Thoughts at the time of subscribing:- Clearly a No No kind of IPO.
Issue Price Band:- 70-77 Rs
Current Price:- 82
Remarks:- Did not invest in this and was a miss by me.

NHPC IPO

My Thoughts at the time of subscribing:- Like Many others I also opted to invest.
Issue Price Band:- 30-36 Rs
Current Price:- 30+
Remarks:- Though invested in this stock offloaded at no profit no loss price on the listing day.

Adani Power IPO

My Thoughts at the time of subscribing:- Should be avoided because of risks involved.
Issue Price Band:- 90-100 Rs
Current Price:- 97 Rs
Remarks:- Never in favor of power story.

Looks like I have done good picking and need to become a Financial Advisor now

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Indiabulls Power IPO – Review and Analysis

Shabbir Bhimani — Fri, 09 Oct 2009 08:49:08 +0000

Investors did not made any money from NHPC and Adani Power IPO’s and we now see one more Power IPO coming and this time its Indiabulls Power IPO. IndiaBulls as a company started with stock brokerage firm and then slowly moved into real estate as well. Now getting into Power generation.

The price band for shares of Indiabulls Power IPO is 42-45 Rs. per share and will be open for subscription from 12th Oct 2009 till 15th Oct 2009. CRISIL rated Indiabulls power as 3 out of 5, which indicates average fundamentals. One of the worst point according to me is that the promoters don’t have any experience in the power sector and just looking at the demand prospects in India for Power they have got into power venture. Its one of the few IPO’s where investors should keep themselves away.

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Euro Multivision IPO

Shabbir Bhimani — Mon, 21 Sep 2009 09:58:31 +0000

Euro Multivision IPO is going to hit the primary stock markets and would open for subscription from September 22nd, and closes on 24th September 2009. Euro Multivision Services Limited is in the business of Compact disc manufacturing of Compact Disc Recordables (CDRs) and Digital Versatile Disc Recordables (DVDRs). The price range for the IPO is between Rs. 70 and 75.

It is the one of the large company that are into manufacturing of CDRs and DVDRs and the biggest competitor for Euro Multivision in the business is MoserBaer. Would skip the IPO as there is no recommendations from market analysts are available and Credit Analysis and Research Limited ( CARE ) has assigned an IPO Grade 3, indicating average fundamentals.

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Thinksoft Global IPO – Review and Analysis

Shabbir Bhimani — Thu, 17 Sep 2009 18:48:40 +0000

New IPO Thinksoft Global IPO is opening for subscription on September 22nd, 2009 and will close on September 24th, 2009. Thinksoft Global Services Limited is mainly into IT services specific to BFSI ( Banking, Financial Services and Insurance ) Sector testing. Thinksoft is an early entrant in the field of software testing and has about 10 years of experience in the BFSI domain in testing. The price band for the IPO is 120-130 Rs. per share.

Some really good information which I found on Official Website include

Thinksoft Global Services Ltd. has been announced as the winner of the Deloitte Technology Fast 500 Asia Pacific 2008, for the third consecutive year.
Thinksoft’s Customers list include Citigroup, ABN AMRO, Morgan Stanley, State Bank Of India, ICICI Bank and many others

Risks

Thinksoft is dependent on European countries as major customers but is expanding to its customer based in India with Customers like State Bank of India and ICICI Bank.
As the company is small in size currently the top customers contribute to considerable income of the company.
Thinksoft operates in environment where there are quite a few big players in the market.

Positives

The company has shows tremendous growth in the last 3 years. Award also reflect the same.
The company has good healthy order book going forward.
Post IPO company has good expansion plans.

Final Thoughts

It would be few good IPO’s where I would be investing as well as adding more to my portfolio but remember its my personal blog and go through the Disclaimer before taking any action.

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Should I Subscribe to Pipavav shipyard IPO?

Shabbir Bhimani — Sat, 12 Sep 2009 07:35:50 +0000

New IPO called Pipavav Shipyard IPO is coming next week. Pipavav shipyard is in the business of shipbuilding, ship repair, docks and we would review it and see how we can use this IPO to make some money if any.

Pipavav Shipyard IPO was to hit the market in september 2008 when it got approval from SEBI but because of bad market condition it got delayed. Approval given by SEBI to Pipavav Shipyard was valid for 1 year and expiring soon ans so they decided to come into market this September. The price band for Pipavav Shipyard IPO is 55-60 Rs. per share and IPO is going to open on 16th September 2009.

Punj Lloyd recently bought 25% stake in Pipavav Shipyard and Atul Punj is Co-Chairman in Pipavav Shipyard. And as I read on moneycontrol.com Punj Lloyd may be looking at significant value unlocking via Pipavav Shipyard and so instead of subscribing to Pipavav Shipyard go for trading in Punj Lloyd.

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Oil India Limited IPO

Shabbir Bhimani — Wed, 02 Sep 2009 12:20:42 +0000

Adani Power IPO and NHPC IPO Disappointed investors. I also suggested for subscribing in NHPC IPO and expected to be listed above 40 Rs but when it did not remain their for long enough I also sold it off but then that does not mean its end of IPOs.

Oil India Limited ( OIL ) IPO opens on September 7^th and closes on September 11^th 2009 and the price band for the IPO is between Rs. 950 and Rs. 1,050.

As you may have already seen it in the advertisements on TV that Oil India is the country’s second largest OIL explorer and producer and is engaged in exploration, development, production and transportation of crude oil and natural gas onshore in India.

This IPO was initially planned in November 2008 but the market condition delayed it till now and after the overwhelming response of NHPC IPO subscription, OIL India IPO will also open for subscription. After the listing of NHPC it does not look very positive for OIL India currently.

Positives

It has an EPS for 2009 close to 100 Rs and so it would be priced closed to 10 times where as ONGC is trading at 15 times its 2009 earnings of 75 Rs.

Negatives

The movement of Crude in the world would effect OIL India adversely because it would also be taking the subsidiary like ONGC.
It has OIL Fields which are almost running out of OIL and so may be it would be effected by low production in the coming years.

Final Thoughts

It would be a good way to make some small money but it is not my favorites when it comes to investing in OIL India IPO

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Jindal Cotex IPO

Shabbir Bhimani — Fri, 28 Aug 2009 04:44:24 +0000

One more IPO is open and its Jindal Cotex. The offer is open between August 27th to September 1, 2009 for subscription and the price band for the IPO is Rs 70 to Rs 77

Jindal Cotex manufactures products like Acrylic, Polyester, carded yarn etc which are used to manufacture suitings and fabrics.

Drawbacks

I read on onemint and I quote

Jindal Cotex, its directors and group companies face various court cases against them, which if decided against them will have adverse impact on the business.

Apart from that

The company had taken a short term loan of Rs.500 lacs from Punjab and Sind Bank, which was due for repayment on May 14, 2009. Jindal Cotex requested the bank to roll over the loan, and it is now due on November 14, 2009.

Which suggest that its clearly a No No kind of IPO.

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Shinsei Industry Leaders fund

NHPC IPO Basis Of Allotment

Shabbir Bhimani — Wed, 26 Aug 2009 17:44:05 +0000

If you have applied for NHPC IPO I am sure you would be eager to know how many shares you have got. Check it out at

http://www.karvy.com/ipoStatus/.

Its working now as I entered my ICICIDirect application number and it said

You have been allotted XXX shares against your application ( Corrected the allotted spelling when pasting here. )

I checked the official website and found the following basis of allotment in an image.

No. of Shares applied	No. of Shares Allotted
175	175
350	175
525	175
700	180
875	238
1050	285
1225	333
1400	380
1575	428
1750	476
1925	523
2100	571
2275	618
2450	666
2625	713

So see how many you have got and if you want share them here as well.

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NHPC IPO

Should You Invest in IPO?

Shabbir Bhimani — Mon, 24 Aug 2009 05:21:03 +0000

I have never been a Fan of IPOs or NFOs when it comes to investing, but trading in IPO is something that interests me a lot. The main reason for not being an investor in IPO is I see lots of marketing effort in the IPO period to create a hype about the IPO. I was positive on NHPC IPO because the hype was not needed for it to go through.

I recently found All IPOs since 2007 on moneycontrol.com and it was quite interesting list compiled by them. I have copied the link here just for reference as the price of the shares may change in future and for latest price you can check the original source at moneycontrol.com

Company	Issue Price	Current Price	%Gain/loss
Alkali Metals	103.00	277.00	168.93
Power Finance Corporation	85.00	222.00	161.18
Kiri Dyes and Chemicals	150.00	389.00	159.33
Everonn Systems India	140.00	356.00	154.29
ICRA	330.00	826.25	150.38
Varun Industries	60.00	142.00	136.67
Allied Digital Services	190.00	445.85	134.66
Power Grid Corporation of India	52.00	108.50	108.65
Religare Enterprises	185.00	384.00	107.57
Redington (India)	113.00	230.00	103.54
Rural Electrification Corporation	105.00	196.20	86.86
Nitin Fire Protection Industries	190.00	342.10	80.05
Page Industries	360.00	610.00	69.44
Orbit Corporation	110.00	179.00	62.73
Cairn India	160.00	249.00	55.63
Indian Bank	91.00	130.15	43.02
Spice Communications	46.00	60.60	31.74
Edserv Softsystems	60.00	77.10	28.50
Kaveri Seed Company	170.00	210.40	23.76
Mundra Port and Special Economic Zone	440.00	535.00	21.59
Gokul Refoils and Solvent	195.00	233.95	19.97
OnMobile Global	440.00	526.00	19.55
J Kumar Infraprojects	110.00	128.90	17.18
MindTree	425.00	490.00	15.29
Idea Cellular	75.00	84.25	12.33
Burnpur Cement	12.00	13.40	11.67
Excel Infoways	85.00	93.75	10.29
Mahindra Holidays and Resorts India	300.00	324.15	8.05
Fortis Healthcare	108.00	114.60	6.11
IRB Infrastructure Developers	185.00	191.45	3.49
Adani Power	100.00	102.70	2.70
eClerx Services	315.00	316.00	0.32
Central Bank of India	102.00	101.00	-0.98
Avon Corporation	10.00	9.84	-1.60
Bhagwati Banquets and Hotels	40.00	39.20	-2.00
Astral Poly Technik	115.00	110.05	-4.30
Koutons Retail India	415.00	393.00	-5.30
Omnitech Infosolutions	105.00	97.00	-7.62
Ackruti City	540.00	497.00	-7.96
Zylog Systems	350.00	300.00	-14.29
Suryachakra Power Corporation	20.00	17.10	-14.50
KSK Energy Ventures	240.00	204.30	-14.87
BGR Energy Systems	480.00	407.10	-15.19
Lotus Eye Care Hospital	38.00	31.90	-16.05
V-Guard Industries	82.00	68.65	-16.28
Meghmani Organics	19.00	15.50	-18.42
Advanta India	640.00	506.00	-20.94
Binani Cement	75.00	59.05	-21.27
Cambridge Technology Enterprises	38.00	29.00	-23.68
Raj Oil Mills	120.00	91.00	-24.17
DLF	525.00	390.50	-25.62
SEL Manufacturing Company	90.00	65.10	-27.67
Supreme Infrastructure India	108.00	78.10	-27.69
Indowind Energy	65.00	44.10	-32.15
Simplex Projects	185.00	125.15	-32.35
Barak Vally Cements	42.00	28.35	-32.50
Transformers and Rectifiers India	465.00	301.90	-35.08
C and C Constuctions	291.00	186.10	-36.05
Aishwarya Telecom	35.00	22.10	-36.86
Saamya Biotech India	10.00	6.15	-38.50
Gammon Infrastructure Projects	167.00	102.50	-38.62
Bafna Pharmaceuticals	40.00	24.00	-40.00
Shriram EPC	300.00	178.65	-40.45
KNR Constructions	170.00	99.00	-41.76
Insecticides India	115.00	66.00	-42.61
Housing Development and Infrastructure ^*	500.00	286.05	-42.79
20 Microns	55.00	31.30	-43.09
Pochiraju Industries	30.00	17.00	-43.33
Rishabhdev Technocable	33.00	17.85	-45.91
Firstsource Solutions	64.00	34.10	-46.72
Ankit Metal and Power	36.00	19.10	-46.94
Consolidated Construction Consortium	510.00	270.00	-47.06
Edelweiss Capital	825.00	435.00	-47.27
Titagarh Wagons	540.00	282.00	-47.78
Lumax Auto Technologies	75.00	37.85	-49.53
Glory Polyfilms	48.00	23.05	-51.98
Birla Cotsyn India	14.00	6.69	-52.21
Archidply Industries	74.00	34.20	-53.78
Refex Refrigerants	65.00	29.90	-54.00
GSS America Infotech	400.00	182.50	-54.37
IBN18 Broadcast ^*	250.00	108.00	-56.80
Shree Ashtavinayak Cine Vision	160.00	68.30	-57.31
Gremach Infrastructure Equipments and Projects	86.00	35.90	-58.26
Aries Agro	130.00	52.25	-59.81
Asian Granito India	97.00	36.90	-61.96
Sita Shree Food Products	30.00	11.40	-62.00
Celestial Labs	60.00	22.70	-62.17
Chemcel Biotech	16.00	6.01	-62.44
Autoline Industries	225.00	82.00	-63.56
SMS Pharmaceuticals	380.00	135.00	-64.47
Reliance Power ^*	450.00	158.20	-64.84
MIC Electronics ^*	150.00	52.40	-65.07
Omaxe	310.00	107.50	-65.32
Kaushalya Infrastructure Development Corporation	60.00	20.80	-65.33
Technocraft Industries (India)	105.00	36.35	-65.38
AMD Industries	75.00	25.95	-65.40
Sejal Architectural Glass	115.00	39.55	-65.61
Future Capital Holdings	765.00	263.00	-65.62
Manaksia	160.00	53.65	-66.47
Precision Pipes and Profiles Company	150.00	49.85	-66.77
Cinemax India	155.00	51.05	-67.06
Circuit Systems (India)	35.00	11.50	-67.14
Bang Overseas	207.00	66.45	-67.90
Resurgere Mines and Minerals India	270.00	86.00	-68.15
Puravankara Projects	400.00	126.70	-68.33
Kolte-Patil Developers	145.00	45.90	-68.34
Cords Cable Industries	135.00	41.70	-69.11
Somi Conveyor Beltings	35.00	10.80	-69.14
Magnum Ventures	30.00	9.24	-69.20
Lawreshwar Polymers	16.00	4.89	-69.44
Rathi Bars	35.00	10.29	-70.60
Nu Tek India	192.00	55.45	-71.12
Niraj Cement Structurals	190.00	54.70	-71.21
Roman Tarmat	175.00	48.65	-72.20
Brigade Enterprises	390.00	108.40	-72.21
Empee Distilleries	400.00	111.15	-72.21
Hilton Metal Forging	70.00	19.10	-72.71
Asahi Songwon Colors	90.00	24.55	-72.72
Renaissance Jewellery	150.00	40.20	-73.20
Euro Ceramics	165.00	43.80	-73.45
Austral Coke & Projects ^*	196.00	52.00	-73.47
Mudra Lifestyle	90.00	22.85	-74.61
Tulsi Extrusions	85.00	21.55	-74.65
KPR Mill	225.00	56.00	-75.11
Pyramid Saimira Theatre	100.00	23.40	-76.60
Maytas Infra	370.00	85.10	-77.00
Vishal Retail	270.00	60.30	-77.67
Tanla Solutions ^*	265.00	58.15	-78.06
Transwarranty Finance	52.00	11.12	-78.62
Alpa Laboratories	68.00	14.37	-78.87
Oriental Trimex	48.00	9.79	-79.60
Nelcast	219.00	43.20	-80.27
Abhishek Corporation	100.00	19.65	-80.35
Raj Television Network	257.00	49.30	-80.82
Decolight Ceramics	54.00	10.15	-81.20
Broadcast Initiatives	120.00	22.45	-81.29
House of Pearl Fashions	550.00	102.55	-81.35
Jyothy Laboratories ^*	690.00	125.00	-81.88
Motilal Oswal Financial Services ^*	825.00	146.00	-82.30
First Winner Industries	125.00	21.80	-82.56
Jagjanani Textiles	25.00	4.00	-84.00
Indus Fila	170.00	24.60	-85.53
Dhanus Technologies	295.00	41.65	-85.88
Time Technoplast ^*	315.00	44.00	-86.03
Porwal Auto Components	75.00	10.35	-86.20
IVR Prime	550.00	75.80	-86.22
Vijayeswari Textiles	100.00	12.65	-87.35
Vishal Information Technologies ^*	150.00	18.50	-87.67
Anus Laboratories ^*	210.00	11.99	-94.29
Take Solutions ^*	730.00	40.60	-94.44
Allied Computers International (Asia)	12.00	0.51	-95.75
Evinix Accessories ^*	120.00	3.34	-97.22

^* Not adjusted for subsequent rights, bonus and splits announced by the company.

Looking at the list there are some very interesting things to watch.

As of today 24th August 2009 there are 32 IPOs which are in positive and 120 of them in negative territory.
There are 10 IPOs which are above 100% gain.
There are17 others which are in double digit gains from the listing price and rest are in single digit gains.
Though not adjusted for splits, rights, bonus out of 120 in negative territory only 7 are in single digit negative territory and rest are ranging losses of 14 to 97%

This conclude what I said that never invest in IPO but yes it may be a good option to do some trading and if you are really looking to invest into it do that after some days of listing of the issue.

Apart from Adani Power IPO and its listing, I can think of one more example which I can think of is of DLF IPO which was priced close to 500 and I sold off on the day it listed close to 600 and then it went up to touch 1000 and I was just hitting my head on the wall as to why I sold it off but now is really happy that I sold off and have invested in DLF much much below its issue price.

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Listing of Adani Power IPO

Shabbir Bhimani — Thu, 20 Aug 2009 07:19:07 +0000

My view on Adani Power IPO was cautious and as the IPO got listed today the market also had the same idea. The listed price of Adani Power was 105 ( as I could see ) and it traded most of the time close to 100 and for quite some time even below the issue price of 100 Rs.

Market is not weak today and so weak opening for the listing suggests that market is not in a mood to buy on stories and companies who can make money some years from now but are more keen on companies who are making money.

IPO’s and NFO’s take few days to list and market condition and volatility suggest we should avoid them because IPO’s are never for investing. Just trading and flipping is far better option in IPOs. If you would like to invest in Adani Power then my view would be wait for couple of week and I am sure it would be available quite cheap then what it is today.

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L&T Finance Bonds

Shabbir Bhimani — Tue, 18 Aug 2009 09:30:15 +0000

L&T Finance is selling Rs 1,000 crore bonds. L&T Finance is fully owned unit of Larsen and Toubro (L&T), and have plans to raise up to Rs 1,000 crore via a retail bond sale that opens on Tuesday 18th August 2009 and would remain open till 4th September 2009.

Minimum investment amount is Rs 10,000/- and the rates for the investment options are as follows.

Details	Tenure	Yield Rate (%)
Quarterly Interest Payment	60 months	9.85%
Semi Annual Interest Payment	60 months	9.85%
Cumulative Interest Payment	88 months	9.95%
Semi Annual Interest Payment	120 months	10.50%

Rates of the bonds are slightly on the lower side compared to other recent bonds but that is acceptable due to the strong reputation of its parent holding company L&T. The bonds are rated “AA-plus” by Credit Analysis and Research Ltd (CARE) and “LAA-plus” by Icra Ltd, indicating high credit quality.

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NHPC IPO

Shabbir Bhimani — Fri, 07 Aug 2009 16:19:42 +0000

NHPC, India’s biggest hydroelectric power generator, opened for subscription today and issue received phenomenal response on the first day itself. As heard in TV it was fully subscribed within few minutes and is subscribed 3.54 times. Issue closes on August 12, 2009. The price band has been fixed at Rs 30-36 per equity share of face value Rs 10 each.

Should you apply?

Every fund house has the view that you should go for it and I am also no different and here are some of my reasons.

Though Expensive when looking at PE Ratio but many projects are still under construction and do not contribute earnings currently.
Government IPO a Safety as was the case with REC which did not crack much in the melt down as well.
Last but not the least its “Power Sector”

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