IPO Details new

COAL INDIA LIMITED

BACKGROUND AND BUSINESS

Coal India Ltd. (CIL) is world's largest Coal Co. both in terms of production and

reserves.

CIL produces 82% of India's coal production. In FY10, CIL produced 431.3 mn tonnes

of raw coal and as on 1st April, 2010 it has 10.6 bn tonnes of proven reserves as per

JORC Standards and 22 bn tonnes as per Indian Standards.

92% of the production output is non-coking coal and rest 8 % is coking coal.

CIL's coal quality is mostly of E & F grade with low calorific value (3600-4800

kcal/kg).

Power sector is the main consumer of CIL's production with 80% sales to the sector.

As of March 31, 2010, Coal India operated 471 mines in 21 major coalfields across

eight states in India, including 163 open cast mines, 273 underground mines and 35

mixed mines (includes both open cast and underground mines). They also operated 17

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coal beneficiation facilities with an aggregate designed feedstock capacity of 39.40

million tons per annum. Company intend to develop an additional 20 coal beneficiation

facilities with an aggregate additional proposed feedstock capacity of 111.10 million

tons per annum. 90% of CIL's output is from open cast mines whose cost of production

is less.

CIL sells coal at approx 50% discount to global coal prices but still enjoys high margins

due to lowest cost of production among its peers.

Besides this, They provided 85 hospitals and 424 dispensaries.

The Indian Institute of Coal Management (IICM) operates under CIL and imparts multi-

disciplinary management development programs executives.

Coal India's major consumers are the power and steel sectors. Others include cement,

fertiliser, brick kilns etc.

Pre issue shareholding: 100% GoI

Post issue shareholding: 90% GoI, 10% Public

OBJECTS OF ISSUE

1. The objects of the Offer are to carry out the divestment of 631,636,440 Equity Shares by

the Selling Shareholder.

2. To achieve the benefits of listing the Equity Shares on the Stock Exchanges.

COMPANY FINANCIALS

Particulars For the year/period ended (Rs. in Lakhs)

31-Dec-09 31-Mar-09 31-Mar-08

Total Income 52,59,229.20 46,06,406.50 38,61,669.70

Profit After Tax (PAT) 9,62,244.70 2,07,869.20 5,24,327.20

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ISSUE DETAIL

»» Issue Open: Oct 18, 2010 - Oct 21, 2010

»» Issue Type: 100% Book Built Issue IPO

»» Issue Size: 631,636,440 Equity Shares of Rs. 10

»» Issue Size: Rs. 15,199.44 Crore

»» Face Value: Rs. 10 Per Equity Share

»» Issue Price: Rs. 225 - Rs. 245 Per Equity Share

»» Market Lot: 25 Shares

»» Minimum Order Quantity: 25 Shares

»» Listing At: BSE, NSE

»» Rating Agency: CRISIL Limited and ICRA Limited

»» Grade Assigned: IPO Grade 5

»» Number of members: 135

»» Number of bidding centers: 59

»» Market cap: 219241.01

Issue Price Current Price %Gain/Loss as on 31st

March

245 347.1 41.67

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TECHNICAL CHART

*This chart shows the movement of prices and volume since the IPO has been issued.

ANALYST TAKE

Coal India is owned by the government of India which is planning to raise around 15,000 Crore

Rs. through this IPO of Coal India. It has 63 billion tonnes of coal which makes Coal India the

world’s largest reserves of coal.

After Reliance Power IPO, this IPO is expected to be the largest.

The power needs for the country are increasing day by day. Hence Power companies are

expected to benefit. Infrastructure developments are on the rise with a stable government at the

center. However, one needs to look at the valuations of the company and how well it is placed

with regard to the competitors. Being a government controlled Navratna Company, this is found

to be having strong fundamentals. The government is also expected to offer the shares of coal

india limited at 5% discount to retail investors, hence they will benefit.

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Majority of the market experts and analysts say that this IPO should be subscribed to, and it is

even being cited that due to this IPO there might be a fall in the market. The reason is that this is

much awaited IPO and investors will take out money by selling their existing shares in the

market to apply for this IPO. Hence this IPO should be definitely subscribed to.

STRENGTHS AND RISK FACTORS

STRENGTHS

1. The largest coal producer and one of the largest reserve holders of coal in the world

2. Well positioned to capitalize on the high demand for coal in India

3. Track record of growth and cost efficient operations

4. Strong track record of financial performance

5. Strong capabilities for exploration, mine planning, research and development

6. Experienced senior management team and large pool of skilled employees

RISK CONCERNS:

1. High Employee Costs: CIL has huge employee cost of approx 36% of revenue in FY10

due to large no. of employees. CIL is trying to move its workers from unviable mines to

new projects. Even the Gratuity Liability is huge.

2. Environment Clearance Issues: There can be environment related hurdles on the

upcoming and on-going projects. The company has a very sound CSR policy. It has

policy of providing 1 employment for every 2 acre of land according to the suitability of

the displaced people. This will help company in overcoming such hurdles.

3. Naxalites problems: Company's major operational projects fall in the sates affected by

Naxalites and local mafias. This may hamper existing operations and also expansion

projects.

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BOARD OF DIRECTORS

NAME DESIGNATION

Mr. Partha S. Bhattacharyya Chairman and Managing Director

Mr. N.C. Jha Director (Technical), executive non

independent Director

Mr. R. Mohan Das Director (Personnel & Industrial Relations),

executive non independent Director

Dr. A.K. Sarkar Director (Marketing), executive non


Mr. A.K. Sinha Director (Finance), executive non


Mr. Alok Perti Government nominee Director, non


Mr. Sanjiv Kumar Mittal Government nominee Director, non


Dr. A. K. Rath Independent Director

Mr. Arvind Pande Independent Director

Mr. P.K. Banerji Independent Director

Prof. S.K. Barua Independent Director

Mr. S. Murari Independent Director

Ms. Sheela Bhide Independent Director

Mr. Kamal R. Gupta Independent Director

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REGISTRAR OF THE ISSUE

Link Intime India Private Ltd

Link Intime India Private Ltd,

C-13 Pannalal Silk Mills Compound,

LBS Marg, Bhandup West, Mumbai 400078

Phone: +91-22-25963838

Fax: +91-22-25946969

Email: [email protected]

Website: http://www.linkintime.co.in

BOOK RUNNING LEAD MANAGER(S)

1. Citigroup Global Markets India Private Limited

2. Deutsche Equities India Private Limited

3. DSP Merrill Lynch Limited

4. Enam Securities Private Limited

5. Kotak Mahindra Capital Company Limited

6. Morgan Stanley India Company Pvt Ltd

COMPANY CONTACT INFORMATION

Registered Office :

Coal Bhawan,

10, Netaji Subhas Road,

Kolkata 700 001, West Bengal

Phone: + 91 33 2248 8099

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Fax: +91 33 2243 5316


Website: http://www.coalindia.in

CONCLUSION

It’s not often that an IPO gets graded 5 out of 5, but it’s not very hard to see why Coal India got

graded that based on their near monopolistic position, and their huge size. Here are some points

from the ICRA grading report about the Coal India IPO.

Coal India is the largest coal company in the world with access to vast reserves.

Highly favorable demand supply situation in the domestic coal industry.

Coal India’s near monopolistic position in this industry.

Continuous labor productivity due to the use of technology, and high share of pro-

duction from open cast mines.

Deregulated coal pricing regime gives them the power to price their coal along with

other factors like favorable demand – supply, and cost competitiveness.

The Coal India IPO has been priced attractively. This will ensure inflow of money into the

Indian market, especially from FIIs. The IPO will act as a catalyst to bring more FII investment

into the market.

PUNJAB AND SIND BANK

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BACKGROUND & BUSINESS

Punjab & Sind Bank is a GoI undertaking, incorporated in June 1908 in Amritsar. It was one of

the six banks nationalized by the GoI in April 1980, and today, it is one of 19 nationalized banks

in India. In the annual Business Today-KPMG survey of Best Banks in India 2008, it ranked

number one on the list of 'Small Sized Best Banks in India' The Bank delivers its products and

service through a wide variety of channels ranging from bank branches and ATMs.

As on October 31, 2010, its network comprised of 926 branches, predominantly in Northern part

of India and 63 ATMs across India. It is also sponsor one regional rural bank, Sutlej Gramin

Bank, in collaboration with the GoI and the state Government of Punjab. As on September 30

2010, it had total of 8,047 employees, serving over 0.66 crore customers.

OBJECTS OF ISSUE

1. To augment capital base to meet the future capital requirements arising out of the growth in

the assets due to the growth of the Indian economy

2. To meet the expenses of the Issue

3. To achieve the benefits of listing on the Stock Exchanges

COMPANY FINANCIALS

Page 9

Particulars For the year/period ended (Rs. in Million)

31-Mar-10 31-Dec-09 31-Dec-08 31-Dec-07 31-Dec-06

Total Income 4,326.30 3,630.71 2,528.43 1,919.38 1,401.93

Profit After

Tax (PAT)

506.82 430.20 402.13 390.27 285.68

ISSUE DETAIL

»» Issue Open: Dec 13, 2010 - Dec 16, 2010



»» Issue Size: Rs. 470.82 Crore






»» Rating Agency: CARE Limited




»» Market cap: 2411.24

Issue Price Current Price %Gain/Loss as on 31st March

120 108.1 -9.92

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TECHNICAL CHART

ANALYST TAKE

1. PSB has registered an impressive Compounded Annual Growth Rate (CAGR) of 32.7%

in its Interest Income and 35.6% CAGR in the operating profit between FY06 and FY10.

During the same period, its Net worth has shown a CAGR of 28.7%.

2. PSB has been able to improve its Net Non-Performing Assets (NPA) from 8.11% as on

March 31, 2005 to 0.36% as on March 31, 2010. However, on September 30, 2010,

there is marginal increase in Net NPA to 0.44%.

3. The bank has been able to maintain Capital Adequacy Ratio of more than 9% with a fair

margin over the period of last 3 & half years. It will be augmented even more post this

issue.


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STRENGTHS

1. High asset quality and robust financial growth.

2. Wide distribution network and infrastructure.

3. Streamlined risk management controls, policies and procedures.

4. Stringent provisioning coverage ratio for advances.

5. Presence predominantly in Punjab and other north Indian states.

RISK CONCERNS

1. Declining trend in CASA: The bank has traditionally maintained high CASA deposits

because of its large retail customer base spread across India particularly in northern

regions. But over the years it experienced southward trend in CASA level as the bank

shifted more to term deposits to meet an elevated credit demand. Consequently it slipped

to 25% as on Mar 10 from 52% of FY06. This pushed up the cost of funds for the bank,

ultimately suppressed the margins.

2. Margin woes continue: One of the major concerns for the bank is the southward trend

of margin that slipped to 2.6% in FY 10 from above 4% level of FY06. Gradual

improvement in the C/D ratio was offset by persistent fall in low cost deposits

consequently putting the pressure on margins over the years.

BOARD OF DIRECTORS

NAME DESIGNATION

Mr. P.K. Anand Executive Director

Mr. A. Bhattacharya Government Nominee Director

Mr. B.P. Kanungo RBI Nominated Independent Director

Mr. A.K. Surana Independent Director

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Mr. M.V.S. Prasad Independent Director

Mr. K.M. Gangawat Independent Director

Mr. Hari Chand Bahadur Singh Independent Director

Mr. Manish Gupta Independent Director

Mr. Karanpal Singh Sekhon Independent Director






Phone: +91-22-25963838

Fax: +91-22-25946969





2. ICICI Securities Limited

3. SBI Capital Markets Limited


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Registered Office :

Punjab & Sind Bank

Bank House,

21, Rajendra Place, New Delhi

Phone: 91 11 2572 0849

Fax: 91 11 2578 1639


Website: http://www.psbindia.com

CONCLUSION

The share is being offered at very attractive valuations. Considering the fact that there is huge

retail interest, a substantial premium and plenty of liquidity in the market this issue would

receive huge subscription. Allotment is most likely to happen by a lottery system and there

could be disappointment on that front. Investors must subscribe to the issue looking at the

prospects of the bank and the banking sector.

BAJAJ CORP LIMITED

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Incorporated in 2006, Bajaj Corp Ltd is one of India’s leading FMCG company with major

brands in Hair care category. Bajaj Corp Ltd is part of Shishir Bajaj Group of companies (the

"Bajaj Group"). Through its subsidiaries, the Bajaj Group operates businesses in the consumer

goods, sugar, power generation and infrastructure development industries throughout India.

Bajaj Corp sells the Bajaj Almond Drops, Amla Shikakai, Brahmi Amla and Jasmine Hair Oil

brands. Bajaj Almond Drops is the key product of the company. It also produces oral care

products under the brand name Bajaj Black Tooth Powder.

Bajaj manufacture their products at two company-operated facilities in Parwanoo and Dehradun.

Company also expect to open a third company-operated facility at Paonta Sahib. By completing

this 3,500 square meter facility in Paonta Sahib, Bajaj expect their production capacity for light

hair oil to increase from 39 million liters per annum to 74 million liters per annum. In addition,

they also engage third-party manufacturers at Parwanoo, Himachal Pradesh for hair oils and

Udaipur, Rajasthan to produce our oral care products. These third-party facilities have a

combined installed capacity of 9 million liters per annum. As of December 31, 2009, the

combined production capacity for all company and third-party operated production facilities was

83 million liters per annum.

OBJECTS OF ISSUE

Proceed is being used for:

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1. Promotion of the future products;

2. Acquisitions and other strategic initiatives;

3. General Corporate Purposes

COMPANY FINANCIALS

Particulars For the year/period ended (Rs. in Millions)

31-Dec-09 31-Mar-09 31-Mar-08

Total Income 2,391.97 2,520.26 0.01

Profit After Tax (PAT) 564.97 469.92 -0.63

ISSUE DETAIL

»» Issue Open: Aug 02, 2010 - Aug 05, 2010









»» Rating Agency: CRISIL Limited





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March

660 495.9 -24.86

TECHNICAL CHART

ANALYST TAKE

With a limited product portfolio and heavy dependence on a single brand, the company`s

prospects are vulnerable to the success of its 4 products to be launched in the near future.

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Moreover, the company is yet to identify the products or companies to be acquired, for which Rs

500 million has been earmarked from the issue proceeds. Compared to peers, the company

enjoys healthy net profit margin due to limited scale and depth of operations. Going forward, as

new product launches are undertaken, margins are likely to come under pressure.


STRENGTHS

1. Market leader in light hair oil segment: The trademark license pact granted exclusive

right to the company to use, manufacture, advertise, distribute and sell the products

associated with the hair oils and other beauty products which helps the company in

becoming India’s third largest producer of hair oils and the largest producer of light hair

oils, capturing an estimated 49.5% of the light hair oil market in calendar year 2009,

according to the Nielsen Retail Audit Report.

2. Established distribution network: The company established a strong distribution

network in India and currently has 4,300 distribution stock points for direct distribution

and 8,900 wholesalers for indirect distribution of our products. According to the Nielsen

Retail Audit Report, it is estimated that its products are sold in more than 1.49 million

retail outlets across India, which is approximately 27% of the total hair oil outlets in

India.

3. Leading Brands: Almond Drops is the company’s leading product brand and currently

comprises approximately 92% of its net sales. Almond Drops is premium light hair oil

containing almond oil and Vitamin E, which contribute to the product’s reputation for

leaving users with healthier hair. Most hair oils which are packaged in plastic PET

bottles, while Almond Drops is packaged in glass bottles, which preserves the product

for a longer period of time even in high temperatures generally experienced throughout

India. In addition, Brahmi Amla, the company’s key product in the traditional hair oil

segment, has developed a loyal customer base since it began production in 1953.

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4. Strong financial position: Bajaj Crop is a debt free company and has reported a profit

of Rs. 56.50 crore for the period ended December 31, 2009. The company’s strong

financial position and operational results will provide it with the necessary working

capital and access to banking and credit facilities, if required, to implement its growth

strategy. The company’s ability to raise additional capital through first time borrowing

should allow it to pursue inorganic growth opportunities and allow it to expand and

enhance its existing product offerings and improve its future financial performance.

RISK CONCERNS

1. Limited operating and financial history: The company was incorporated on April 25,

2006 and began operations in April 2008. Prior to that time, Bajaj Consumer Care

(BCCL) and other Bajaj Group companies sold the brands that company is currently

licensed to sell. The manner in which company operates its business and results of

operations may differ from that of BCCL and other Bajaj Group. Company’s limited

operating and financial history is not sufficient basis to evaluate its business.

2. The company depends heavily on ‘Almond Drops’: The company heavily depends

upon its brand “Almond Drops” hair oil, which contributed 92.4% and 93.0% of the total

sales and gross profit, respectively, for the nine month period ended March 31, 2010.

Contribution from Almond Drops represented substantially all of the company’s

operating profit for the year ended March 31, 2010. Any drop in the sales of Almond

Drops or any other factor that negatively affects the product of the brand will adversely

affect the company’s market share, business and financial performance.

3. The company operates in a highly competitive environment: The FMCG business is

highly competitive. The hair oil market, in particular, consists of well-entrenched brands

which have built up their brand equity over a period of decades. Barriers to new entrants

are intense and require a significant amount of marketing expenditure to develop any

new brand. Further, the highly competitive environment is expected to continue in

FMCG markets, presenting the company with significant challenges in its ability to

maintain its position in the light hair oil segment and market share and could have a

material adverse effect on its market share and sales.

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4. Commitment to buy minimum quantity for product from third party

manufacturers: At present, the company is outsourcing a significant portion of its

production from the third party manufacturers under an agreement, where it committed

to take a minimum quantity of cases per annum, at prices agreed between the parties,

from time to time. In case of lower demand, the company will have to purchase the

committed quantities which may adversely affect the financial performance of the

company.

5. Foray into different line of business: The company has recently entered into an MOU

to with Bajaj Infrastructure Development Company Limited, Bajaj Hindustan Limited

and Teracon Construction (India) Private Limited to form a consortium in the nature of a

SPV to participate in the tender for redevelopment of property at Nityanand Nagar

Vibhag Four Cooperative Housing Society Limited. As per the terms of the MOU, BCL

has undertaken to subscribe to at least 40% of the paid up capital of the SPV. The

company do not have any prior experience in this field and may lose the investment of

40% of the equity capital of the special purpose vehicle (SPV) created to undertake the

said project.

BOARD OF DIRECTORS

NAME DESIGNATION

Mr. Kushagra Bajaj Non executive -Chairman

Mr. R.F.Hinger Vice Chairman and Whole Time Director

Mr. Sumit Malhotra Whole Time Director

Mr. Haigreve Khaitan Independent and Non-Executive Director

Mr. Gaurav Dalmia Independent and Non-Executive Director

Mr. Dilip Cherian Independent and Non-Executive Director

Mr. Aditya Vikram Somani Independent and Non-Executive Director

Page 20


Karvy Computershare Private Limited

Karvy House, 46, Avenue 4, Street No. 1,

Banjara Hills, Hyderabad - 500 034

Andhra Pradesh, India

Phone: +91-40-23312454

Fax: +91-40-23311968


Website: http://karisma.karvy.com


Kotak Mahindra Capital Company Limited


Registered Office :

2nd Floor, Bld No. 2, Solitaire Corporate Park,

167, Guru Hargovind Marg,

Chakala, Andheri (E), Mumbai – 400 093

Phone: + (91 22) 66919477 / 78

Fax: + (91 22) 66919476


Website: http://www.bajajcorp.com

CONCLUSION

The IPO is priced cheaply as compared to its peers, very well discounting the above concerns.

The Company intends to diversify into other products and also inorganically, this seems to be

too futuristic as the product portfolio has been more or less the same since its inception in 1953.

Though the financials and the pricing of this issue provide some comfort, much depends on how

the Company is able to effectively diversify into new product lines and segments and is able to

bring down its heavy dependence on one product. However, one can subscribe for listing gains.

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GUJARAT PIPAVAV PORT LIMITED


Gujarat Pipavav incorporated on August 5, 1992 to build, construct, operate and maintain the

port at Pipavav, District Amreli, in the state of Gujarat, India. APM Terminals Pipavav is

strategically located near the entrance of the Gulf of Khambhat on the main maritime trade

routes, which helps to serve imports from and exports to the Middle East,

Asia, Africa, the United States, Europe and other international destinations Initially it was a joint

venture between GMB and Seaking Engineers Limited. In June 1998, GMB divested its stake in

favour of SKIL Infrastructure Limited. APMM Group acquired a 13.5% equity interest in the

Company in June 2001.

OBJECTS OF ISSUE

1. Infuse funds for certain elements of ongoing expansion plan, as under:

a) Construction of Container Yards and allied facilities at Port Pipavav;

b) Phase 2 of capital dredging at Port Pipavav;

c) Purchase of Post Panamax Quay Cranes;

d) Purchase of Rubber Tyred Gantry (RTG) Cranes;

2. Repayment of Sponsor Support Loan to the Promoter, APMT Mauritius.

3. General Corporate Purposes; and

4. Achieve the benefits of listing on the Stock Exchanges.

Page 22

COMPANY FINANCIALS


31-Mar-

10

31-Dec-09 31-Dec-

08

31-Dec-

07

31-Dec-

06

31-Dec-

05

Total Income 567.79 2,244.98 1,984.56 1,649.64 1,424.21 701.73

Profit After

Tax (PAT)

-277.66 -1,176.7 -676.01 -460.22 -518.34 -525.52

ISSUE DETAIL

»» Issue Open: Aug 23, 2010 - Aug 26, 2010















46 64 39.13

Page 23

TECHNICAL CHART

ANALYST TAKE

At the lower price band, GPPL is valued at 4.3x its P/BV and 4.9 times at the upper price band.

Mundra Port on the other hand is available at 100% premium as it's already profit making com-

pany and has positive (16%) return on its networth.

Though GPPL is a loss making company, on the back of traction from rising global trade, rapid

industrialization in the state of Gujarat and strategic location of the Port, we believe, rise in

cargo handling and lower interest out go would prove to be a turnaround case for GPPL and in-

vestor can Subscribe to the issue with Long term horizon.

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STRENGTHS

1. Strategic location: Port Pipavav is one of the principal gateways on the west coast of

India. It is strategically located near the entrance of the Gulf of Khambhat on the main

maritime trade routes, which helps to serve imports from and exports to the Middle East,

Asia, Africa and other international destinations. Further, favorable oceanographic

conditions enable day and night navigation of ships throughout the year.

2. Well-developed port infrastructure and good rail and road connectivity: Port

Pipavav has a well-developed port infrastructure. The 4,550 metre channel length at the

Port enables day and night marine operations throughout the year due to favorable

oceanographic conditions. It has four dry cargo berths. These berths are utilized for

handling containers, bulk, break bulk, general and project cargo. It has also developed

infrastructure for reefer services which include supply of electricity and monitoring of

reefer containers. Going further, its existing rail and road network from Port Pipavav to

inland regions of northern and northwest India, including Delhi and the available land

for future transportation initiatives provides them with a competitive advantage for

attracting larger volumes of cargo.

3. Benefit from its promoter, APM Terminals: The company is backed by a strong

promoter group – APM Terminals, is one of the largest container terminal operators in

the world. They receive several benefits from its relationship with APM Terminals such

as access to modern technology, operational know-how, best industry practices,

increased bargaining power and competitive rates for purchase of port equipment, and

access to experienced personnel resources from APM Terminals.

4. Owns the right to determine its tariffs: The company is not covered within the

regulatory purview of the Tariff Authority of Major Ports, and hence, is entitled to

determine the tariffs at the Port, subject to the provisions of the Indian Ports Act, 1908,

as amended. Their ability to determine tariff rates helps them to compete effectively and

gives them operational flexibility.

Page 25

RISK CONCERNS

1. Too much reliance on small number of customers and partners for its revenues:

The company derives significant portion of its revenue from a few major carrier

customers. Any loss of any of its major customers or any significant decreases in

spending by some or all of its top five customers on its services may reduce the demand

for its Port and the services they offer and may adversely affect their revenue,

profitability and results of operations. In addition, their income may be affected by

competition, increase in fuel prices, the cyclical nature of the shipping industry and

decreasing tariffs in the port and related services industry.

2. Profitability mainly dependent on various tax benefits and other incentives: Being

an infrastructure company, it benefits from certain tax incentives. These tax incentives

might not continue in the future or that such tax credits shall be available for the

durations of 10-15 years only as per amended clause. The non-availability of these tax

incentives could adversely affect results of operations and financial condition.

3. Risky nature of business: Although most of the operations of the company are in India,

they service customers from around the world, including Asia, Europe and North

America. As a result, they are exposed to risks typically associated with conducting

business internationally, many of which are beyond their control. They, like other port

operators and manufacturers in India, are subject to various central, state and local

environmental, health and safety laws and regulations concerning issues such as

accidents, damage caused by air emissions, wastewater discharges, solid and hazardous

waste handling and disposal.

4. Dependency on promoter company (APM Terminals): APM Terminals, its promoter

company, is one of the largest container terminal operators in the world with a global

network of 50 terminals in 34 countries and five continents and currently owns a 57.9%

equity interest in it. Any reduction in its business with APMM Group companies, or

decrease in the direct or indirect benefit they receive from such companies could

adversely affect their financial condition and results of operations.

Page 26

BOARD OF DIRECTORS

NAME DESIGNATION

Mr. Prakash Tulsiani Managing Director

Mr. Per Jorgensen Chairman and Independent Director

Mr. Pravin Laheri, IAS (Retd.) Non-Executive and Independent Director

Mr. Luis Miranda Non-Executive Director

Mr. Christian Moller Laursen Non-Executive Director

Mr. Dinesh Lal Non-Executive Director

Mr. Abhay Bongirwar Non-Executive Director and Independent Director

Mr. Charles Menkhorst Non-Executive Director






Phone: +91-40-23312454

Fax: +91-40-23311968




1. IDFC-SSKI Private Limited


Page 27


Registered Office :

Pipavav Port,

At Post Ucchaiya Via Rajula,

Amreli - 365560, Gujarat, India

Phone: 91-2794-286001/092/041

Fax: 91-2794-286044


Website: http://www.portofpipavav.com

CONCLUSION

Projections are projections because on the excel sheet one can prove almost anything in the

world. So, if an investor has a high risk prospect on that, definitely he may ride the tide because

some of the recent issues are seeing good subscription and good listing. The same positive

momentum probably may rub off onto this issue and may find decent listings, but for the safe

investors who want to play safe probably may prefer to give it a miss.

As far as comparison to Mundra Port is concerned, one has to be careful because Mundra Port

itself is highly valued. It is like why we are trying to compare it with another highly valued issue

and feeling good that this issue is underpriced. The valuation is the culprit. If you want to ride

the tide, listing gains, probably one can go ahead, but quality wise there is a concern.

Page 28

SATLUJ JAL VIDYUT NIGAM LIMITED (SJVNL)


Incorporated in 1988, Satluj Jal Vidyut Nigam Ltd (formerly Nathpa Jhakri Power Corporation

Limited - NJPC) is a hydroelectric power generation company, originally established as a joint

venture of the Government of India ( GOI ) and the Government of Himachal Pradesh (GOHP)

to plan, investigate, organize, execute, operate and maintain Hydro-electric power projects. The

present authorized share capital of SJVN is Rs 7000 crores.

The Nathpa Jhakri Hydro – Electric Power Station– NJHPS ( 1500 MW ) was the first project

undertaken by SJVN for execution. The 1500 MW NJHEP has been designed to generate 6612

MU of electrical energy in a 90% dependable year with 95 % machine availability. It is also

providing 1500 MW of valuable peaking power to the Northern Grid. Out of the total energy

generated at the bus bar, 12 percent is supplied free of cost to the home state i.e. Himachal

Pradesh. From the remaining 88% energy generation, 25% is supplied to HP at bus bar rates.

Balance power has been allocated to the beneficiary states / UTs of Northern Region by

Ministry of Power, Government of India.

SJVN is currently constructing the 412 MW Rampur Hydro Electric Project in the state of

Himachal Pradesh. SJVN is also implementing three hydro projects (252 MW Devsari, 60 MW

Naitwar Mori and 51 MW Jakhol Sankri) in the state of Uttarakhand. Further, SJVN has also

been allocated Luhri Hydro Electric Project (775 MW) and Dhaulasidh HEP (66 MW) in the

state of Himachal Pradesh for preparation of Detailed Project Report and subsequent execution.

Further, SJVN is entering into a Joint Venture for the implementation of 1500 MW Tipaimukh

HE Project in Manipur with an equity participation to the extent of 26%.

Page 29

Company Promoters:

Company's majority Promoter, the GoI (including through nominees) currently holds 75% of the

paid-up share capital and will continue to hold majority of the post-Offer paid-up capital of the

Company. The Governor of Himachal Pradesh (including through nominees) currently holds the

remainder 25% of the paid-up share capital of the Company.

OBJECTS OF ISSUE

The object of the issue is to achieve the benefits of listing on the Stock Exchanges and to carry

out the transfer of 410,881,400 Equity Shares by the Selling Shareholder. Listing of the Equity

Shares will create liquidity in the Equity Shares through the creation of a public market for the

Equity Shares in India.

COMPANY FINANCIALS


30-Sep-09 31-Mar-09 31-Mar-08 31-Mar-07 31-Mar-06

Total Income 11,347.3 16,348.4 14,622.8 14,761.7 13,509.4

Profit After Tax

(PAT)

6,186.2 7,594.4 7,169.4 6,499.8 5,854.3

ISSUE DETAIL

»» Issue Open: Apr 29, 2010 - May 03, 2010






Page 30




»» Rating Agency: CARE Limited






March

26 22.1 -15

TECHNICAL CHART

Page 31

ANALYST TAKE

The issue seems reasonable priced when compared to the private sector peers. However when

compared to NHPC, another large PSU in similar space, the issue is not cheap from a P/BV

basis, while being cheap from a P/E basis. Retail investors with a long-term perspective can sub-

scribe to the issue (preferably at the lower band) as retailers have an added incentive of 5% dis-

count to the finally determined price.


STRENGTHS

1. Experienced and established track record of operational excellence: The company

has experience in the development, execution and management of mega-hydroelectric

projects through development and operation of the 1,500 MW NJHPS, which is the

largest hydroelectric power generation facility in India, based on generation capacity,

and is located in the geo-technically sensitive Himalayan region. Since the

commissioning of the NJHPS, the company has consistently met or exceeded

Government-set performance targets for their operations this gives them a competitive

advantage in developing large hydroelectric power projects, both in India and abroad.

2. Guaranteed return on capital under prevailing tariff regime: Under Government

policies and prevailing regulations, up to 30% of aggregate project costs in relation to a

project is eligible for the guaranteed rate of return on equity.

3. Stable revenue stream through long-term agreements: The company has entered into

ten power purchase agreements with state utilities in the Northern region of India, two of

which are in the process of being renewed, under which all of the power generated by the

NJHPS (except for 12% of annual generation which is allocated to the state of Himachal

Pradesh free-of charge and an additional 1% of annual generation from projects located

in the state of Himachal Pradesh which is allocated to a state-established local

development fund) is sold to state electricity boards.

Page 32

4. Strong cash position to support project development and operations: The company’s

strong historical financial performance and steady cash flows from its existing operations

at the NJHPS are sufficient to fund, through the internal resources, the equity

contribution portion for the existing pipeline of projects, and support the working capital

requirements, while at the same time servicing and repaying their existing debt on a

timely and reliable basis, and maintaining a healthy level of cash on its balance sheet.

RISK CONCERNS

1. Dependency on climatic conditions: The company is engaged in generation of

hydropower and the amount of power generated by hydroelectric generation facilities is

dependent on available water flow, and fluctuates due to variations in water flow which

in turn depends on factors such as rainfall, snowfall, snowmelt or other seasonal and

climatic conditions, as well as the carrying capacity of the river. Hence, adverse

hydrological conditions may render hydroelectric generation facilities, which may

adversely affect the business, prospects, and increase the period of cost recovery

associated with such projects.

2. Dependency on contractors: The company is dependent on various contractors for the

construction and development of its projects and for the supply of materials and

equipment, and any failure on their part to perform their obligations may adversely affect

its operations. They also rely on third party suppliers to provide them with raw materials

used in the construction of its projects, such as cement and steel.

3. Dependency on single project: All of the company’s revenues are generated from the

NJHPS located in the state of Himachal Pradesh on the Sutlej River. Consequently, any

interruption in the operations of the NJHPS would potentially have a greater negative

impact on the company.

4. Vulnerable to disturbances in Himachal Pradesh: Due to the actual and expected

concentration of its power generation capacity in the state of Himachal Pradesh, any

disruptions in the state of Himachal Pradesh, including disruptions due to seasonal

weather conditions, political and social unrest and regional economic and labour

Page 33

conditions, or changes to the regulatory environment within Himachal Pradesh, would

have a disproportionate effect on the business.

BOARD OF DIRECTORS

NAME DESIGNATION

Mr. Hemant Kumar Sharma Chairman & Managing Director

Mr. Rajinder Singh Katoch Director (Personnel)

Mr. Raghunath Prasad Singh Director (Electrical)

Mr. Sudhir Kumar Non Executive Director - GOI Nominee

Mr. Ajay Tyagi Non Executive Director - GoHP Nominee

Mr. Kamaljit Singh Gill Independent Director

Mr. S.M. Lodha Independent Director

Mr. Kambhampati Subramanya Sarma Independent Director






Phone: +91-22-25963838

Fax: +91-22-25946969



Page 34


1. IDBI Capital Market Services Limited


3. JM Financial Consultants Private Limited



Registered Office :

SJVNL,

Himfed Building, New Shimla,

Himachal Pradesh, 171009

Phone: +91 177 267 0741/ 0064

Fax: +91 177 267 0542


Website: http://www.sjvn.nic.in

CONCLUSION

SJVNL’s business profile is stable marked by firm off take arrangements for its operational

power projects and cost plus basis of tariff determination ensures minimum return on equity.

The issue derives strength from the sovereign ownership, experienced management team,

satisfactory corporate governance practices, consistent growth in revenues and profitability since

commencement and comfortable solvency profile. SJVNL’s overall gearing is comfortable as

has improved over the periods. In line with the improvement in gearing levels interest costs have

also been declining.

Page 35

PERSISTENT SYSTEMS LIMITED


Incorporated in 1990, Persistent Systems Ltd is in the business of outsourced software

product development (OPD) services.

Company design, develop and maintain software systems and solutions, create new

applications and enhance the functionality of existing software products.

Company's main focus is in the area of telecommunications, life sciences and

infrastructure and systems.

Persistent Systems won the 2008 NASSCOM Innovation Award and recognized as one of

the leading technology companies in the Deloitte Touche Tohmatsu Technology Fast 500

Asia Pacific 2009.

Company has nine development centers in Europe, America and Asia. In India, company

operates from Pune. Company has workforce of more than 3500 software professionals.

Company Promoters:

The Promoters of Persistent Systems Ltd are:

1. Dr. Anand Deshpande

2. Mr S.P. Deshpande

Page 36

OBJECTS OF ISSUE

1. Establish our development facilities;

2. Capitalise our Subsidiaries for establishing development facilities and meeting fit outs

and interior design costs;

3. Procure hardware;

4. Fund expenditure for general corporate purposes and

Achieve the benefits of listing on the Stock Exchanges.

COMPANY FINANCIALS

Particulars For the year/period ended (Rs. in million)

31-Mar-

09

31-Mar-

08

31-Mar-

07

31-Mar-

06

31-Mar-

05

Total Income 6,006.84 4,504.66 3,177.15 2,188.19 1,488.48

Profit After Tax

(PAT)

667.64 833.84 572.41 368.14 340.68

ISSUE DETAIL

»» Issue Open: Mar 17, 2010 - Mar 19, 2010







Page 37







»» Market cap: 1460


March

310 365 17.74

TECHNICAL CHART

Page 38

ANALYST TAKE

CRISIL has assigned IPO Grade '4/5' to the initial public offer of Persistent Systems Ltd, which

indicates that the fundamentals of the issue are above average, in relation to other listed equities

in India.

The grading reflects the company's presence across the value chain of product development--

product conceptualization, design, development, testing and support--its diversified client base,

growing cash accruals coupled with the management's proven execution capabilities. Apart from

catering to leading independent software vendors (ISVs), Persistent offers end-to-end solutions

to smaller software product companies.


STRENGTHS

1. OPD specialty with deep-rooted product development culture

2. Full product development services offering including value-added products and services

for all stages of the product life cycle

3. Long-term relationships with customers

4. Depth of experience and knowledge in key focus areas

5. Investment in new technology areas

6. Track record of well established sophisticated processes

7. Strong team of highly skilled professionals and management and sound recruitment

strategies

RISK CONCERNS

1. A criminal litigation is pending against our Promoter Directors

2. Revenues are highly dependent on clients located in the United States. Economic

slowdowns and other factors that affect the economic health of the United States may

affect our business.

Page 39

3. Clients operate in a limited number of industries. Factors that adversely affect these

industries or product spending by companies within these industries may adversely affect

our business.

4. They derive a significant portion of our revenues from a limited number of clients. The

loss of, or a significant reduction in the revenues they receive from, one or more of these

clients, may adversely affect their business.

5. They have a limited operating history in our new and evolving markets.

6. They are subject to risks arising from exchange rate movements.

7. The current economic downturn has impacted and the uncertain conditions could prevail.

8. A significant number of their development centers are concentrated in one city in India.

BOARD OF DIRECTORS

NAME DESIGNATION

Dr. Anand Deshpande Chairman & Managing Director

S. P. Deshpande Non-Executive Director

Ram Gupta Independent Director

Dr. Promod Haque Non-Executive Director*

Prabhakar B. Kulkarni Independent Director

Prof. Krithivasan Ramamritham Independent Director

* He was appointed as a nominee Director of Norwest, pursuant to the Shareholders Agreement

with Norwest and Gabriel.

Page 40






Phone: +91-22-25963838

Fax: +91-22-25946969





2. J.P. Morgan India Private Limited


Registered Office :

Bhageerath,

402 Senapati Bapat Road,

Pune 411 016, Maharashtra, India

Phone: +91 20 3024 2000

Fax: +91 20 2565 7888


Website: http://www.persistentsys.com/

CONCLUSION

The company has posted robust financials from last few years. Being one of the market leaders

in outsourced software product development service, the company is on the high growth

trajectory .Also, the debt free status of the company has added one more feather to its cap.

Hence we recommend investor to buy IPO of this issue.

Page 41

VA TECH WABAG LIMITED


Incorporated in 1996, VA Tech Wabag is one of the world’s leading companies in the water

treatment field. WABAG is multinational player provides turn-key solutions for water and waste

water treatment to municipal and industrial users. Wabag has market presence in India, the

Middle East, North Africa, Central and Eastern Europe, China and South East Asia.

WABAG offers complete life cycle solutions including conceptualization, design, engineering,

procurement, supply, installation, construction and O&M services. They provide a range of EPC

and O&M solutions for sewage treatment, processed and drinking water treatment, effluents

treatment, sludge treatment, desalination and reuse for institutional clients like municipal

corporations and companies in the infrastructure sector such as power, steel and oil and gas

companies. As at July 2010, Company has executed 113 projects and is currently executing 81

projects.

OBJECTS OF ISSUE

1. Funding working capital requirements of the Company;

2. Construction of a corporate office at Chennai;

3. Implementation of global IT systems;

4. General corporate purposes.

Page 42

COMPANY FINANCIALS


31-Mar-09 31-Mar-08 31-Mar-07 31-Mar-06 03/31/04

Total Income 57354 34353 25896 27541 22830

Profit After Tax

(PAT)

2476 -175 44 1725 1536

ISSUE DETAIL

»» Issue Open: Sep 22, 2010 - Sep 27, 2010


»» Issue Size: 954,198 Equity Shares of Rs. 5







»» Rating Agency: ICRA Limited






1310 1258.95 -3.9

Page 43

TECHNICAL CHART

ANALYST TAKE

The company is strengthening its base in India and is setting up local presence in the target

markets that are Low cost and would help bring down the companys dependence on Austria and

Switzerland for servicing. The EBIDTA margin on the consolidated basis has improved to

9.83% in FY2010 from 4.8% in FY2008. At the lower and upper ends of the price band of the

issue, the stock is offered at 27.15x and 27.8x FY2010 earnings respectively. It is recommended

to Subscribe to the IPO due to:

(1) Va tech is the only company which is fully focused on water and waste water

Page 44

treatment company in India

(2) Strong brand,

(3) Technological backing and

(4) Healthy execution track record

(5) Attractive Industry Outlook.


STRENGTHS

1. Overall favourable demand outlook for projects in water & waste treatment business.

2. Company’s established position in the above segments, , both in the domestic and

international markets.

3. Healthy order book position providing visibility on future revenues.

4. Strong financial position characterised by healthy ROCE and growth in margins.

5. Technically qualified and experienced management team. Access to know-how / patents

held by its subsidiary is also a positive.

RISK CONCERNS

1. Increasing competitive pressures in the business and adverse price fluctuations in the

basic raw materials could impact margins

2. Execution risks that is typical in project business; ability to execute orders in a timely

manner, meeting guaranteed performance requirements and within budgeted costs would

be crucial

3. Free cash flows could be impacted by the extended collection cycle

BOARD OF DIRECTORS

Page 45

NAME DESIGNATION

Bhagwan Dass Narang Chairman, non-executive Independent Director

Rajiv Mittal Managing Director

Sumit Chandwani Non-executive non-Independent Nominee Director

Dr. Guenter Heisler Non-executive Independent Director

Jaithirth Rao Non-executive Independent Director






Phone: +91-40-23312454

Fax: +91-40-23311968







Page 46

Registered Office :

VA Tech Wabag Limited,

No.11, Murray’s Gate Road,

Alwarpet, Chennai 600 018, Tamil Nadu

Phone: +91 44 4223 2411

Fax: +91 44 4223 2424


Website: http://www.wabag.com

CONCLUSION

Water even though abundant on earth is scarce when it comes to its quality. Only 2.5% is

available in the form of fresh water. The uneven spread of water and the increasing demand for

fresh water due to the growing urbanization provide significant opportunity for players in the

waste water treatment industry especially Vatech Wabag Ltd. With significant industry

expertise, advance technology, strong execution track record and a growing order book, the

company is well balanced to tap the growing water and waste water treatment market.

ASHOKA BUILDCON LIMITED

Page 47


Incorporated in 1993, Ashoka Buildcon Limited is a Nashik, Maharashtra based construction

company involve in the business of building and operating roads and bridges in India. Ashoka

Buildcon is the operator of highest number of toll-based BOT (build, operate and transfer)

projects in India.

Company is also involve in engineering, designing and maintenance of roads, bridges, electricity

substations, commercial buildings and industrial buildings for third parties. Other businesses of

the company includes manufacture and sell ready-mix concrete and bitumen and collect tolls on

roads and bridges owned and constructed by third parties.

Ashoka Buildcon has 4 business divisions:

1. BOT Division, which operates or have an interest in 21 BOT road projects across India.

2. EPC Division, which is involve in activities like engineering, design, maintenance and

repair of infrastructure projects for third parties.

3. RMC and Bitumen Division, which sells ready-mix concrete and bitumen.

4. Toll Collection Contract Division, which collects toll on roads/bridges owned and

constructed by third parties.

Page 48

Company Promoters:

The companies promoters are:

1. Ashok M. Katariya

2. Satish D. Parakh

3. Ashish A. Katariya

4. Aditya S. Parakh

OBJECTS OF ISSUE

1. Investment in capital equipment;

2. To meet working capital requirements;

3. Prepayment/ repayment of project loans of the Company;

4. Funding certain Subsidiaries for prepayment/ repayment of their loans;

5. General corporate purposes; and

6. To achieve the benefits of listing our Equity Shares.

COMPANY FINANCIALS


31-Mar-

09

31-Mar-

08

31-Mar-

07

31-Mar-

06

31-Mar-

05

Total Income 7,560.04 3,419.62 3,711.61 1,797.01 1,396.03

Profit After Tax

(PAT)

478.03 220.49 147.38 85.89 113.46

ISSUE DETAIL

Page 49
















March

324 294 -9.26

Page 50

TECHNICAL CHART

ANALYST TAKE

Page 51

The issue has been graded by CRISIL Limited as CRISIL 'IPO Grade 4/5' indicating that the

fundamentals of the IPO are "Above Average" relative to the other listed equity securities in

India.

The report says the grading reflects the company's dominant position in the build-operate-

transfer (BOT) road space and its established track record - most of its projects have been

completed on time. The grading is supported by the strong management background with

domain expertise, proven execution capabilities in the engineering procurement construction

(EPC) segment and the company's integrated business model. The grading also takes into

account intense competition in a highly fragmented road development market, which leads to

aggressive bidding and potentially low returns.


STRENGTHS

The company is a well-established player in toll-based BOT projects in India with a proven ability to partner with other well-established players in the industry.

As of 31 May 2010, the company's order book totalled Rs1,615.36 crore, of which orders of Rs1,408.92 crore were related to work for third parties and associated companies.3. Most of the company's projects have been executed on time or prior to the scheduled completion date.

RISK CONCERNS

1. There are as many as 152 outstanding cases against the company, directors, promoters and promoter group companies.

2. The company's portfolio is increasingly concentrated in large-scale projects which increases its exposure to potentially higher cost overruns and exposes it to the risk of a default by joint venture partners if it has entered into a joint venture to undertake the project.

3. Some of the subsidiaries and promoter group companies have incurred losses during the past three financial years.

Page 52

4. The company has substantial working capital requirements and if it is unable to obtain working capital loans to help finance these requirements, it would a have significant adverse effect on the business, results of operations and financial condition.

5. The company faces significant competition and if it fails to compete effectively it will have an adverse effect on the business, financial condition and results of operations.

6. The company also faces the risk of uncertain tax benefits for BOT projects, long gestation period and regional concentration of its projects.

BOARD OF DIRECTORS

NAME DESIGNATION

Ashok M. Katariya Chairman

Satish D. Parakh Managing Director

Sunil B. Raisoni Whole Time Director

Shyam Sundar S. G. Non – Executive Director

Michael Pinto Independent Director

Milap R. Bhansali Independent Director

Anant D. Narain Independent Director

Sharad D. Abhyankar Independent Director


Page 53




Phone: +91-22-25963838

Fax: +91-22-25946969






3. Motilal Oswal Investments Advisors Pvt Ltd


Registered Office :

Ashoka Marg, Vadala, Nashik,

Ashoka Marg, Nashik,

Maharashtra - 422 011

Phone: +91 253 3011705

Fax: +91 253 2422704


Website: http://www.ashokabuildcon.com/

CONCLUSION

CRISIL has assigned a CRISIL IPO Grade 4/5 to the proposed IPO of Ashoka Buildcon. The

grading reflects the company’s dominant position in the build-operate-transfer (BOT) road space

Page 54

and its established track record, with most of its projects having witnessed timely completion.

The grading has also taken into consideration the strong management background with domain

expertise, robust industry prospects due to significant investment expected in roads and power

transmission and distribution (T&D) segments, proven execution capabilities in the engineering

procurement construction (EPC) segment, integrated business model and adequate corporate

governance practices. The grading also reflects the company’s strong order book of Rs 17,850

million as well as healthy revenue growth potential from the BOT segment.

COMMERCIAL ENGINEERS & BODY BUILDERS CO

LIMITED


Incorporated in 1979, Commercial Engineers & Body Builders Co Limited is the producer of

vehicle and locomotive bodies for diverse applications for road and railways transportation.

Company is one of the leading designers and manufacturers in India of vehicle bodies for the

commercial vehicles industry with an extensive portfolio of product offerings. Company also

conducts refurbishment of railway wagons as well as manufacturing of components for railway

wagons, coaches and locomotives.

Company Promoters:

Page 55

The Promoters of the Company are:

1. Dr. Kailash Gupta

2. Mr. Ajay Gupta

OBJECTS OF ISSUE

1. Capital expenditure for the Railway Project,

2. Prepayment of Identified Loan Facilities,


COMPANY FINANCIALS


30-Sept-

09

31-Mar-

09

31-Mar-

08

31-Mar-

07

31-Mar-

06

31-Mar-

05

Total Income 1112.12 1168.22 1249.75 982.83 518.07 257.33

Profit After

Tax (PAT)

106.52 17.42 61.39 85.18 25.60 6.35

ISSUE DETAIL

»» Issue Open: Sep 30, 2010 - Oct 05, 2010



»» Issue size: Rs. 153.00 Crore






Page 56







127 44 -65.35

TECHNICAL CHART

ANALYST TAKE

Rating agency CRISIL has assigned an 'IPO Grade 2' to the issue indicating 'Below Average

Fundamentals'. The report notes that CEBBCO is a relatively new entrant in this segment and

Page 57

could face stiff competition from existing incumbents in the refurbishment and wagon

businesses. Post the commissioning of its wagon capacity, it would account for just around 4%

of the total wagon capacity as of 2008-09. Its ability to bag orders remains contingent on how

well the company is able to establish strong contacts within the Indian Railways. Organised

players in the fabrications business as well as existing wagon manufacturers could easily cater to

the Indian Railways' demand for both refurbishment and new wagons as the business is neither

very capital intensive nor requires a long gestation period and orders are tender driven.


STRENGTHS

1. Strong track record with reputed customers in the commercial vehicles industry Wide

range of product applications and offerings

2. Ability to continuously expand product offerings

3. State-of-the-art technology and certifications for design, production standards and

quality assurance

4. Strategic geographic location

5. Competitive cost structure

6. Ability to compete effectively with the unorganised body builders

RISK CONCERNS

1. Limited customer concentration : In FY 2006, 2007, 2008, 2009 and 2010, it derived

56.32% (Rs28.24 crore), 86.36% (amounting to Rs82.59 crore), 73.91% (Rs88.11 crore),

69.23% (Rs77.57 crore) and 52.46% (Rs95.93 crore) respectively, of its net sales from

Tata Motors Ltd. In FY 2009 and FY 2010, it derived 2.39% (Rs2.67 crore) and 27.49%

(Rs50.27 crore), respectively, of its net sales from the Indian Railways.

Page 58

2. Cyclical business: The commercial vehicles industry is cyclical in nature. A substantial

part of its sales are realised during the second half of the financial year due to low

demand in monsoons from mining and road-construction sectors.

3. Competition : It faces competition in the commercial vehicles division from the

unorganised sector.

BOARD OF DIRECTORS

NAME DESIGNATION

Dr. Kailash Gupta (Promoter) Chairman cum Managing Director

Mr. Ajay Gupta (Promoter) Whole Time Executive Director

Mr. Bharat Bakhshi Non-Executive, Nominee Director of NYLIM

Mr. Sevanti Lal Popatlal Shah Independent Director

Mr. Arun Kumar Rao Independent Director

Mr. Sudhir Kumar Vadhera Independent Director





Page 59


Phone: +91-40-23312454

Fax: +91-40-23311968




1. Edelweiss Capital Limited



Registered Office :

84/105-A, G. T. Road, Kanpur Mahanagar

Kanpur - 208 003,

Uttar Pradesh, India

Phone: +91 512 2521 571

Fax: +91 512 2522 743


Website: http://www.cebbco.com

CONCLUSION

CEBBCO is one of the leading designers and manufacturers of vehicle bodies for goods CV in

India. The company is also involved in the refurbishment of railway

wagons. It proposes to partially utilise the IPO proceeds to set up a wagon manufacturing unit.

CEBBCO’s core business fetches a P/E of 25x on FY2012

estimates at the upper price band. Moreover, to justify the implied market capital of Rs698cr,

the company’s wagon manufacturing plant would have to operate at 100% utilization within a

Page 60

year and generate profitability in line with existing players, which we believe at the current

juncture appears stretched. Hence, we recommend Avoid to the IPO.

PARABOLIC DRUGS LIMITED


Incorporated in 1996, Parabolic Drugs Limited is in the business of manufacturing Active

Pharmaceutical Ingredients (API's) and API intermediates. APIs, also known as 'bulk drugs' or

'bulk actives' are the principal ingredient used in making finished dosages in the form of

capsules, tablets, liquid, or other forms of dosage, with the addition of other APIs or inactive

ingredients.

Companies product portfolio comprises 42 APIs and 7 API intermediates which are marketed

domestically and exported.

Page 61

Company own and operate two manufacturing facilities at Derabassi, Punjab, and Panchkula,

Haryana. Company is in the process of setting up a custom synthesis and research and

development (R&D) center at Barwala, Haryana.

Company Promoters:

The Promoters of our Company are:

1. Mr. Pranav Gupta;

2. Mr. Vineet Gupta;

3. PNG Trading Private Limited; and

4. Parabolic Infrastructure Private Limited

OBJECTS OF ISSUE

1. Multi-purpose block III at Derabassi;

2. Sterile Cephalosporin Plant (Derabassi);

3. Establishment of Chachrauli Plant;

4. Custom Synthesis & Manu. Site II at IT Park (Panchkula);

5. Repayment / Prepayment of identified loan facility;


COMPANY FINANCIALS

Particulars For the year/period ended (Rs. in Crore)

30-Sept-

09

31-Mar-

09

31-Mar-

08

31-Mar-

07

31-Mar-

06

31-Mar-

05

Total Income 233.43 396.94 273.94 150.56 90.12 50.90

Page 62

Profit After Tax

(PAT)

12.41 21.09 29.67 13.58 8.22 3.27

ISSUE DETAIL

»» Issue Open: Jun 14, 2010 - Jun 17, 2010









»» Rating Agency: CARE & BWR

»» Grade Assigned: IPO Grade 2 & 3 respectively





March

75 42.7 -43.07

Page 63

TECHNICAL CHART

ANALYST TAKE

Based on the earnings for 2009 December annualised for the year of Rs 7.75 the share is being

offered at 9.68 to 10.97 times at the lower and higher band respectively. The earnings on a fully

diluted basis is not the correct way to value this share because the capacity expansion already

under way and expected to complete by September and December 2010 will increase the

capacity by 40% this year and another 40% next year. With such massive expansion happening

there has to be dilution or borrowing to fund growth. The promoters of Parabolic chose dilution

as an option to fund growth and almost double capacity in less than two years.


STRENGTHS

Page 64

1. Established R&D facility: Parabolic Drugs is a research driven company with its R&D

efforts focused on developing non-infringing processes and achieving process

improvements and production cost efficiencies. The company is having an established

R&D facility which comprises chemical and analytical research laboratories at

Sundhran, Derabassi, and a team of 85 scientists including 16 Ph.Ds, as at April 15,

2010. The company has also set up an additional R&D centre at Barwala in fiscal 2010.

2. Diversified and improving customer base: Including some of the leading generic

companies in the world, the company as at March 31, 2009, was catering to 487

customers worldwide compared to 244 in fiscal 2007. The company constantly strives to

increase customer base and reduce dependence on any particular customer. They supply

products domestically as well as to approximately 45 countries, including regulated

markets. Some of the countries to which it supplies its products include Turkey, Jordan,

Syria, Iran, Korea, Italy, the Netherlands and the US.

3. Wide product range in the antibiotics segment: The company manufactures a wide

range of products in the antibiotics segment. The company is continuously focusing on

developing new products within their existing segments, including niche products

developed with specific applications such as niche Penicillin APIs such as

Bacampicillin, Sultamycillin, and Pivampicillin at its Panchkula facility.

4. Advanced facilities to serve regulated markets and manufacture multiple products:

The manufacturing facilities of the company are designed to manufacture a variety of

APIs and API intermediates using a combination of processes. Its facility at Sundhran,

Derabassi is WHO-GMP and ISO-14001 certified. Most of its facilities are in

compliance with rules and regulations of USFDA. Their flexible manufacturing

infrastructure enables them to expand product range and change product mix in response

to changes in customer demand and to serve customer requirements ranging from

laboratory scale research to commercial production.

RISK CONCERNS

Page 65

1. Revenue dependence on few therapeutic categories: The company’s revenue is

derived from sale of products in limited therapeutic areas which include Semi Synthetic

Penicillin (“SSP”) and Cephalosporin range of antibiotics in oral and sterile form. The

revenue derived from the sale of products in the antibiotic category was Rs. 37,452.39

lakh for the nine-month period ended December 31, 2009, which was 100% of the gross

sales of the company up to December 31, 2009, as per its audited restated consolidated

financial statements. If the company is unable to appropriately identify and respond to

competitive pressures in this segment or successfully introduce new products, it will

adversely affect future results of operations.

2. Competitive business environment: The company operates in a competitive business

environment, both globally and domestically. Competition from existing players and

new entrants and consequent pricing pressures may adversely affect the business,

financial condition and results of operations.

3. Overdependence for imports of raw materials, particularly from China: A

significant portion of raw materials consumed by the company are imported, particularly

from China. For the financial year ended March 31, 2009, the value of raw material

imported by the company was Rs. 22,762.22 lakh or 61.65% of the total raw materials

consumed. Further, the percentage of raw materials imported from China to the total raw

materials consumed for the fiscal 2009 was 22.62%. Also, raw material costs are

dependent on global commodity prices, which are subject to fluctuations. In the event the

prices of such ingredients were to rise substantially or if imports from China were to be

restricted in any manner or market concerns regarding the quality of such raw materials,

it will be difficult to find alternative suppliers for raw materials, on terms acceptable to

the company, and business, results of operations and financial condition could be

adversely affected.

4. Expansion plans subject to time and money constraints: The company may make

substantial investments in the future for establishing new manufacturing facilities and

upgrading its existing manufacturing facilities so that they comply with the standards set

by the USFDA and other regulatory authorities. Delays in the construction and equipping

or expansion of any of its facilities could result in loss or delayed receipt of earnings,

Page 66

increase in financing and construction costs, and the company’s failure to meet profit

and earnings budgets would have an adverse effect on its financial condition and results

of operations.

BOARD OF DIRECTORS

NAME DESIGNATION

Mr. Inder Bir Singh Passi Chairman and Independent Director

Mr. Pranav Gupta Managing Director

Mr. Vineet Gupta Whole-time Director

Dr. Ram Kumar Independent Director

Mr. Pardeep Diwan Independent Director

Mr. Arun Kumar Mathur Non-executive Director

Mr. Koppisetty Srinivas Nominee Director

Dr. Deepali Gupta Executive Director






Phone: +91-22-25963838

Fax: +91-22-25946969

Page 67





2. Spa Merchant Bankers Ltd


Registered Office :

SCO 99-100, Sector 17-B,

Chandigarh - 160017

India

Phone: 0172 391 4646

Fax: 0172 391 4645


Website: http://www.parabolicdrugs.com

CONCLUSION

The company offers growth prospects and investors with a medium to long term time frame of

investment will be amply rewarded. In the short term Indian markets mirroring global cues

particularly European markets have been extra volatile and Parabolic would be no exception. I

believe this company should report a profit after tax of Rs 70-75 crs after the expansion is

completed translating into an EPS of Rs 12 to 12.75 for the year ended March 2012. The first

year of full capacity available would be 2012-2013. Subscribe for the medium and long term

only.

Page 68

CANTABIL RETAIL INDIA LIMITED


Incorporated in 2000, Cantabil Retail India Ltd is in the business of designing, manufacturing,

branding and retailing of apparels under the brand names of "CANTABIL" and "La FANSO".

They have a network of 381 exclusive retail outlets spread across India.

Page 69

The "CANTABIL" brand with 206 exclusive retail outlets offers the complete range of

formalwear, party-wear, casuals & ultracasual clothing for Men, Women and Kids in the middle

to high income group. The "La FANSO" brand caters to men's segment in lower to middle

income group and focuses on casual, ultra casual and formal wear. They also retail various

accessories like ties, belts, socks, caps and handkerchief under their brands.

They have 3 in-house manufacturing / finishing units and 4 warehouses located in Delhi. They

also have 3 third party dedicated units manufacturing. Cantabil Retail's stores are situated at

Delhi, Mumbai, Calcutta, Bangalore, Hyderabad, Pune, Jaipur, Ahemdabad, Vadodra, Lucknow,

Kanpur, Patna, Ranchi, Dehradun, Meerut, Ludhiana, Jalandhar, Udaipur, Agra, Ghaziabad and

Gurgaon etc.

Company Promoters:

1. Mr. Vijay Bansal, is Chairman and Managing Director of the company.

2. Mr. Deepak Bansal, is Whole time Director of the company.

OBJECTS OF ISSUE

1. Establishment of new integrated manufacturing facility;

2. Expansion of Exclusive Brand Outlets;

3. Additional Working Capital;

4. Repayment of Debt;

5. General Corporate Purposes;

6. Expenses for the Issue.

COMPANY FINANCIALS


31-Mar-09 31-Mar-08 31-Mar-07 31-Mar-06 31-Mar-05

Total Income 1,601.48 900.51 503.96 240.78 104.76

Profit After Tax 62.13 28.63 29.39 11.80 0.74

Page 70

(PAT)

ISSUE DETAIL
















135 43 -68.15

Page 71

TECHNICAL CHART

ANALYST TAKE

ICRA has assigned an 'IPO Grade 2' to CRIL's IPO. This means as per ICRA, the company has

'Below Average Fundamentals'. ICRA assigns IPO grading on a scale of 5 to 1, with Grade 5

indicating 'Strong Fundamentals' and Grade 1 indicating 'Poor Fundamentals'.


Page 72

STRENGTHS

1. The company has an established discount brand in the domestic apparel market with a

diversified product portfolio for men, women and children. It has a wide network of

exclusive retail outlets across metros, Tier-I and Tier-II cities in India.

2. The proposed manufacturing facility will reduce dependence on third-party

manufacturers and improve profitability.

3. CRIL has a healthy financial profile with steady growth and improvement in operating

profitability in the past. It has experienced promoters with around two decades of

experience in the garment industry. There is also favourable demand outlook for

organised retailing in the country.

RISK CONCERNS

1. The company's aggressive expansion plans may put pressure on the operating

profitability as the company might adopt pricing strategy to gain market share in newer

regions.

2. Increase in fixed costs such as rentals will have an impact on operating profitability; high

working capital intensity coupled with rapid expansion in the past had resulted in

negative fund flow from operations. This is likely to continue over the medium term as

the company plans to scale up quickly by opening new stores and adding new product

lines. Successful expansion of the retail network would be dependent on the ability to

scale up and effectively manage the supply chain, especially given the high inventory

requirements.

3. The market is highly fragmented and competitive, dominated by the unorganised sector.

4. Rising yarn and fabric prices could put pressure on the profitability of the company

given the fragmented nature of the industry and vulnerability of retail sales to economic

trends.

BOARD OF DIRECTORS

NAME DESIGNATION

Page 73

Mr. Vijay Bansal Chairman and Managing Director

Mr. Deepak Bansal Whole Time Director

Mr. Anil Bansal Whole-time Director

Ms. Swati Bansal Non-executive Promoter Director

Dr. Arun Kumar Roopanwal Non-executive Independent Director

Mr. Lalit Kumar Non-executive Independent Director

Mr. Romesh Lal Non-executive Independent Director

Mr. Brij Mohan Aggarwal Non-executive Independent Director


Beetal Financial & Computer Services (P) Limited

Beetal House, 3rd Floor,

99, Madangir, Behind Local Shopping Centre,

New Delhi – 110062

Phone: +91 11 29961281

Fax: +91 11 29961284


Website: http://www.beetalfinancial.com


Spa Merchant Bankers Ltd

Page 74


Registered Office :

B - 47, 1st Floor,

Lawrence Road Industrial Area,

New Delhi - 110 035

Phone: +91 11 2715 6381-82

Fax: +91 11 2715 6383


Website: http://www.cantabilinternational.com

CONCLUSION

At Rs 127-Rs135, the issue is reasonably priced. Post IPO PE between 14.5 and 15 is close to

PE of competitors in the readymade garments sector as well as sector PE of 13.7.

SEA TV NETWORK LIMITED

Page 75


Incorporated in 2004, Sea TV Network Ltd is an Agra (U.P) based company engaged in

providing services of a Multi System Operator (MSO) to various Local Cable TV operators of

Agra and adjoining areas. Sea TV has its own local channels, programmes of which are

produced by its own production team. These local channels mainly focus on Agra city/U.P State

news/events and information, which is more relevant to the city viewers.

Sea TV proposes to adopt latest technology i.e. IPTV for providing TV channels to its viewers.

They already have a network of about 150 franchisees throughout Agra city.

Company Promoters:

1. Mr. Neeraj Jain

2. Mr. Akshay Kumar Jain

3. Mr. Pankaj Jain

4. Ms. Sonal Jain

5. Ms. Chhaya Jain

OBJECTS OF ISSUE

Page 76

The Object of the issue are:

1. Setting up complete Digital Headend and network for implementation of Conditional

Access System (CAS).

2. Setting up network for complete IPTV Solution;

3. Setting up of own cable distribution network;

4. Setting up own 20 branch-offices in the City.

COMPANY FINANCIALS

Particulars For the year/period ended (Rs. in Lacs)

31-Mar-

10

31-Mar-

09

31-Mar-

08

31-Mar-

07

31-Mar-

06

Total Income 946.25 796.34 581.25 453.13 175.05

Profit After Tax

(PAT)

150.52 102.17 59.97 25.17 2.08

ISSUE DETAIL









»» Listing At: BSE

Page 77







100 25.75 -74.25

TECHNICAL CHART

ANALYST TAKE

Page 78

The Sea TV Network IPO has been graded as 'IPO Grade 1' by rating agency ICRA, indicating

concerns over poor fundamentals. This grading reflects the concerns over risks arising out of the

small scale of operations, the company's significant expansion plans, risk of geographic

concentration with a presence only in Agra (Uttar Pradesh) and competition from other players

in the city, as well as from companies like Bharti Airtel, Reliance Big TV, Dish TV etc which

provide direct-to-home (DTH) cable services.


STRENGTHS

Expected revenue streams

1. Subscription revenues from direct subscribers as well as franchisees.

2. Steady income from set-top box rent and value-added services through the IPTV set-up.

3. Carriage fees from broadcasting channels, and rentals from its optical fibre network.

4. Advertising from its own channels (like Sea News) should contribute a steady share of

the income

RISK CONCERNS

Permissions and competition

1. Poor IPO grading.

2. Yet to obtain certain approvals, licenses, registrations and permits.

3. Threat of technological obsolescence.

4. Yet to receive nod for launching three channels like 'Real News', 'Ocean TV' and 'Your

TV' from the Ministry of Information & Broadcasting.

5. It is the third cable Multi System Operator in Agra.

6. Faces competition from big players like Tata Sky, Dish TV and BIG TV that are eyeing

an all-India reach through the DTH platform.

7. Company does not own the registered trademark "Sea TV

BOARD OF DIRECTORS

Page 79

NAME DESIGNATION

Mr. Neeraj Jain Chairman and Managing Director

Mr. Akshay Kumar Jain Whole Time Director

Mr. Pankaj Jain Whole time Director

Mr. Radha Krishna Pandey Independent Director

Mr. Rajeev Kumar Jain Independent Director

Mr. Narendra Kumar Jain Independent Director






Phone: +91-22-25963838

Fax: +91-22-25946969




Chartered Capital and Investment Limited


Page 80

Registered Office:

148, Manas Nagar,

Shahganj, Agra- 282010

Phone: 0562-4036666

Fax: 0562-2511070


Website: http://www.seatvnetwork.com

CONCLUSION

Sea TV Networks is a small player with low earnings. In the face of competition from other

small players and some really big operators, the company requires funds to expand its

operations. Sea TV could find it quite difficult to achieve its ambitious plans and execution will

be the critical factor.

TECPRO SYSTEMS LIMITED

Page 81


Incorporated in 1990, Tecpro Systems Ltd is an established material handling company in India,

engaged in providing turnkey solutions in material handling, ash handling, balance of plant

("BoP") and engineering, procurementand construction ("EPC") contracts.

Tecpro Systems Limited undertakes turnkey projects in Bulk Solids Handling Systems including

belt conveyors, slat conveyors, bucket elevators etc., manufacture equipment viz., stackers,

reclaimers, various types of crushers, vibrating screens, feeder and conveyor components like

Idlers and pulleys and undertakes civil and structural work along with electrical, control and

instrumentation systems for the project.

Company Promoters:

1. Mr. Ajay Kumar Bishnoi, is Chairman and Managing Director of the company.

2. Mr. Amul Gabrani, is Vice-Chairman and Managing Director of the company.

OBJECTS OF ISSUE

The objects of the Issue are to:

1. Fund working capital requirements; and

2. Fund expenditure for general corporate purposes.

COMPANY FINANCIALS

Page 82


03/31/09 03/31/08 03/31/07 03/31/06 03/31/05

Total Income 7429.31 4864.24 2383.91 1067.69 523.01

Profit After Tax

(PAT)

511.73 410.47 209.45 97.15 19.36

ISSUE DETAIL















Issue Price Current Price %Gain/Loss as on 6th April

355 304.1 -14.34

TECHNICAL CHART

Page 83

ANALYST TAKE

Techpro has registered an impressive Compounded Annual Growth Rate (CAGR) of 93.12% on

its topline and 85.77% on its bottom-line.

As on March 31,2010 company had 12.89%, 39.05%,3.53%,42.5% and 1.4% income coming

from Sale of products manufactured by the Company, Sale of products traded in (project

supplies) by the Company, Service Income, Contract revenue and other income respectively.

Techpro has a steady EBIDTA margin and PAT margin of about 16% and 8% respectively.

Techpro’s Debt to Equity has gone up significantly in FY10 from 0.61 to 1.43 and this is mainly

due to a four fold increase in debt from Rs.1058.21Mn to Rs 4867.94 Mn.


STRENGTHS

Page 84

1. Project management expertise and established track record of project execution.

2. Strong in-house design and manufacturing capabilities.

3. Technical collaborations and alliances with international manufacturers.

4. Experienced management team.

5. Well-positioned to capitalise on the growth opportunities in the Indian power sector.

Strong order book: As on 31 March 2010 and 31 July 2010, its order book stood at

Rs2,013.95 crore and Rs2,311.29 crore, respectively.

RISK CONCERNS

1. The company and its group firms are involved in legal proceedings involving Rs1,118

crore.

2. Changes in raw material prices like iron & steel, cement, bearings, castings, plumber

blocks could disrupt operations as the company has not entered into any cost-escalation

clauses.

3. It derives a major chunk of its revenue from a few customers. Payments from its top 10

customers constituted 68.39%, 65.70% and 66.72% of its income from operations for

FY2010, 2009 and 2008, respectively.

BOARD OF DIRECTORS

NAME DESIGNATION

Mr. Ajay Kumar Bishnoi Chairman and Managing Director

Mr. Amul Gabrani Vice- Chairman & Managing Director

Dr. Goldie Gabrani Whole time Director

Mr. Arvind Kumar Bishnoi Whole-time Director

Mr. Amar Banerjee Whole-time Director

Page 85

Mr. Achal Ghai Non-executive Director

Mr. Suresh Kumar Goenka Independent Director

Mr. Brij Bhushan Kathuria Independent Director

Mr. Satvinder Jeet Singh Sodhi Independent Director

Mr. Anunay Kumar Independent Director

Mr. Sakti Kumar Banerjee Independent Director

Mr. Subrata Kumar Mitra Independent Director






Phone: +91-22-25963838

Fax: +91-22-25946969






Page 86


Registered Office :

106, Vishwadeep Tower,

Plot No. 4, District Centre,

Janak Puri, New Delhi 110 058, India.

Phone: (+91 11) 4503 8735

Fax: (+91 11) 4503 8734


Website: http://www.tecprosystems.com

CONCLUSION

Looking at the company’s past track record and impressive order book position, Tecpro appears

to be a satisfactory investment opportunity. However, it must be noted that Tecpro is raising

money to fund its working capital requirements and not for asset expansion. Furthermore, one of

the selling parties is Metmin which has an investment in the company at an average price of

Rs.51.25. This is the second attempt to go public for Tecpro that had earlier filed its draft red

herring prospectus three years ago to raise around Rs 1000 Million. This time around, the issue

size has been more than doubled with one of the financial investors looking to cash out partly

with substantial profits.

Unlike the last time, when it planned to use the funds to set up design and engineering center

besides plant to manufacture conveyor belts in addition to enhancing working capital, expanding

existing manufacturing units and equity investment in group firms, this time it intends to use the

money solely for funding working capital requirements. While the market momentum may

provide some listing gains, longer term investors can choose to play the waiting game at this

counter and pouch this stock at lesser valuations.

Page 87

INTRASOFT TECHNOLOGIES LIMITED


Incorporated in 1996, Intrasoft Technologies Limited provides electronic greeting card services

through website, www.123greetings.com. 123greetings is the largest electronic greeting cards

website in India and 2nd largest in the world.

123greetings has range of over 20,000 electronic greeting cards designed to cater to varying

geographical and religious celebrations, occasions and other events.

Company has a team consisting of 16 creative professionals who develop in-house content

including artistic, photographic and musical content for its electronic greeting cards.

Company doesn't charge its users for accessing and sending electronic greetings and derive its

revenues almost entirely from online advertising revenues and software development services.

Company Promoters:

The promoters of Intrasoft Technologies Limited are:

1. Arvind Kajaria, aged 45 years, is the Managing Director of the Company.

2. Sharad Kajaria, aged 33 years, is a Whole time Director of the Company.

Page 88

OBJECTS OF ISSUE

The object of the issue are:

1. Branding and Promotion;

2. Purchasing a corporate office at Kolkata;

3. Investment in technology infrastructure;

4. General corporate purposes;

5. Issue related expenses; and

6. Achieve the benefits of listing on the Stock Exchanges.

COMPANY FINANCIAL



Total Income 2,335.15 2,017.86 1,727.68 1,640.95 1,493.60

Profit After Tax

(PAT)

532.82 442.00 327.71 188.97 213.48

ISSUE DETAIL

»» Issue Open: Mar 23, 2010 - Mar 26, 2010







Page 89



»» Rating Agency: CARE






145 71.5 -50.69

TECHNICAL CHART

Page 90

ANALYST TAKE

Intrasoft Technologies IPO Subscription Details as of March 24 looks good. The Intrasoft Tech

IPO has generated fairly good subscription interest from all classes of investors. However, it’s

still early days and the IPO as yet has not oversubscribed. But looking at the subscription details

of Intrasoft IPO, the IPO is likely to see a good amount of oversubscription. Hence it would be a

good idea to go ahead and apply in the Intrasoft Technologies IPO. The listing gains on selling

the alloted shares of Intrasoft Technologies Limited on the IPO listing date, is likely to be pretty

good.


STRENGTHS

1. There is no competition or comparable company in India in this line or similar line of

activity. Internationally there are comparables in the form of Evite.com and AG

interactive. One can also look at American greetings and Hallmark. In the case of the last

two they are strictly not comparable as they are into different verticals as well.

2. One of the leading electronic greeting card website by number of Unique Visitors

3. Well established and widely recognized website and brand

4. Experience and Know How

5. Has certain advantages over traditional greeting card companies and subscription based

electronic greeting card companies.

RISK CONCERNS

Any technology company always runs the risk of getting overtaken by new technology. Here

such a risk does not remain because the habit of wishing, greeting and gifting cannot die or go

away. The challenge is in introducing new products and innovation like the 123greeting studio

and the e-invite add-ons which will help in establishing supremacy of the product. The 20000

strong library and additions to it will help in making this website a must see going forward.

Complacency alone can kill the product otherwise the size of library ensures a head start and

creates an entry barrier in itself.

Page 91

BOARD OF DIRECTORS

NAME DESIGNATION

Mr. Arvind Kajaria Managing Director

Mr. Sharad Kajaria Whole time Director

Mr. Amitava Ghose Independent Director

Mr. Deepak Narottamdas Kanabar Independent Director

Mr. Vishal Agarwal Independent Director

Mr. Rupinder Singh Independent Director






Phone: +91-22-25963838

Fax: +91-22-25946969




1. Anand Rathi Securities Limited

2. Collins Stewart Inga Private Limited

Page 92


Registered Office :

Fifth Floor, No.145,

Rash Behari Avenue,

Kolkata 700 029, West Bengal, India

Phone: +91 33 2464 3306

Fax: +91 33 2464 6584


Website: http://www.itlindia.com/investor-relations

CONCLUSION

According to comScore Media Metrix, Website was the largest (by number of Unique Visitors)

electronic greeting cards website in India with a sum total of 1,46,08,169 Unique Visitors during

the twelve month period from September 2008 to August 2009. Website received a sum total of

22,56,11,000 page views and 19,31,99,000 minutes during this period, according to comScore

Media Metrix.I believe investment in Intrasoft will be profitable in the medium and long term.

This is a company which offers an opportunity to multiply your money in time to come. It is not

a story for mere listing gains. Subscribe for substantial gains in the medium and long term.

Page 93

SHEKHAWATI POLY-YARN LIMITED


Incorporated in 1990, Shekhawati Poly-Yarn Ltd is a leading manufacturer of Polyester

Texturised Yarn & Twisted Yarn.

Polyester Texturised Yarn (PTY) mainly used for manufacturing apparels i.e. suiting, shirting,

dress materials, saris, hosiery, knitted fabric, zipper fastener, curtain & industrial cloth as also to

manufacture fancy yarn for high value dress materials and upholstery. Polyester Texturised Yarn

is obtained after further processing of POY.

Presently, Shekhawati has 20 Texturising Machines with an installed capacity of 13,200 MTPA

to produce PTY. It also has installed 5 TFO machines to produce Twisted Yarn with installed

capacity of 600 MTPA. Company has implemented an integrated facility at Silvassa for

manufacturing PTY with a total project cost of Rs. 40.15 Crores. Under this Company has

established Yarn Texturising Facility of 14200 MTPA with 20 Texturising Machines.

SPYL has client base in Mumbai, Bhiwandi, Surat, Ludhiana, Secunderabad, Meerut, Panipat,

Delhi, Bhilwara, Erode, Salem, Coimbatore, Ichalkaranji, Malegaon and Calcutta markets.

Page 94

Shekhawati's manufacturing units is located at Silvassa, which is near to Bhiwandi and Surat,

the major consumption centres of Texturised Yarn.

Company Promoters:

1. Mr. Mukesh Ruia

2. Mr. Ramniranjan Ruia are the promoter of the company.

OBJECTS OF ISSUE

1. To acquire additional new 30 Twisting Machines and installation of new 30 Knitting

Machines;

2. To acquire Corporate office at an estimated cost of Rs. 325.00 lacs;

3. To meet working capital requirements;

4. To meet the Issue expenses; and

5. To get the Equity Shares listed on BSE.

COMPANY FINANCIALS

Particulars For the year/period ended (in Rs. Lacs)

30-Sep-10 31-Mar-10 31-Mar-09 31-Mar-08 31-Mar-07 31-Mar-06

Total Income 5,996.31 8,951.04 7,751.11 3,396.26 1,788.08 941.80

Profit After

Tax (PAT)

157.51 220.89 125.56 57.81 10.59 13.11

ISSUE DETAIL

»» Issue Open: Dec 27, 2010 - Dec 29, 2010

»» Issue Type: Fixed Price Issue IPO

Page 95




»» Issue Price: Rs. 30 Per Equity Share




»» Rating Agency: CARE




30 40.45 34.83

TECHNICAL CHART

Page 96

ANALYST TAKE

The investor response to the Shekhawati Poly-yarn IPO doesn’t seem to be very overwhelming

at 10.4 times but going by the “avoid” signal given by the analysts on this small company

engaged in texturised and twisted yarn manufacture it doesn’t seem too bad either.


STRENGTHS

1. Experience of the Promoters

2. Experienced Staff

3. Existing Profit Making Company

4. Use of efficient technology for increased efficiency

5. Locational advantages to the Project

6. Capability to manage multiple and large orders

7. Good labour relations

RISK CONCERNS

The company has two group concerns which are in the same line of activity. There is a group

company Ruia Rayons Private Limited. The company is in the same line of activity as the

company going public and had sales of Rs 4833.79 lacs for the year ended March 2009 and Rs

5644.71 lacs for the year ended March 2010. The net profit after tax for the period ended March

2009 was Rs 32.97 lacs and Rs 49.58 lacs for the year ended March 2010.

1. The company is now entering the highly competitive knitting industry where it has no

experience and setting up 30 circular machines.

2. Secondly the business of manufacturing texturising and twisted yarn is all about high

volumes and the company is nowhere in terms of size.

Page 97

3. Margins in this business are thin but with the expansion and objects of the issue being to

acquire a corporate office and repay the loan for the same; it appears that too much is

being spent on non-productive assets.

BOARD OF DIRECTORS

NAME DESIGNATION

Mr. Mukesh Ruia Managing Director

Mr. Ramniranjan Ruia Chairman(Non- Executive)

Mr. Sanjay Balvantrai Jogi Director

Dr. Satish Chandra Kulhari Director

Mr. Sanjay Kumar Churiwala Director

Mr. Debkumar Goswami Director


Sharex Dynamic (India) Pvt Ltd

Unit 1, Luthra Ind. Premises,

Safed Pool, Andheri – Kurla Road,

Andheri (East), Mumbai – 400 072

Phone: +91- 22 - 2851 5606

Fax: +91 - 22 - 2851 2885


Website: http://www.sharexindia.com


Page 98

Hem Securities Limited


Registered Office :

2, Anantwadi, Vaidya Bhawan,

1st Floor, Bhuleshwar,

Mumbai- 400 002

Phone: 91-22- 3256 7126

Fax: 91-22-2875 5522


Website: http://www.shekhawatiyarn.com

CONCLUSION

The company offers no opportunity to prospective investors and therefore chose not to even

have a road show for the investor community in the financial capital of the country Mumbai.

The reason for not having a road show is to avoid reports from Mumbai which looking at

fundamentals would not warrant a subscribe rating for investors. People are being lured into the

issue with listing gains which is a sure shot way to losing money and getting trapped. I would

advise investors give a complete skip to the issue and avoid the same and more important to not

get carried away with some other issues which have done well initially and then tanked.

Page 99

PRESTIGE ESTATES PROJECTS LIMITED


Incorporated in 1986, Prestige Estates Projects Ltd is a Bangalore based company involve in real

estate development. Prestige Estates is south India’s largest real estate development company.

Company has completed 142 real estate projects of approximately 27.09 million sq. ft. Company

has a diversified portfolio of real estate development projects including residential (including

apartments, villas, plotted developments and integrated townships), commercial (including

corporate office blocks, built-to-suit facilities, technology parks and campuses and SEZs),

hospitality (including hotels, resorts and serviced accommodation) and retail (including

shopping malls) segments of the real estate industry.

Company has established a strong brand image, have a successful track record of execution and

a diversified portfolio of real estate projects

Company Promoters:

1. Mr. Irfan Razack

2. Mr. Rezwan Razack

3. Mr. Noaman Razack

Page 100

OBJECTS OF ISSUE

The Objects of the Issue are to:

1. Finance our Ongoing Projects and Projects Under Development;

2. Invest in our existing Subsidiaries which investment will be utilized for the construction

and development of our commercial Ongoing Project, retail Ongoing and retail Projects

Under Development undertaken by those Subsidiaries;

3. Finance the acquisition of land;

4. Repay certain loans of our Company; and


COMPANY FINANCIALS

Particulars For the year/period ended (in Rs. Million)


Total Income 9,161.51 9,892.65 4,271.42 4,743.31 3,816.45

Profit After Tax

(PAT)

707.31 541.63 390.91 305.34 346.03

ISSUE DETAIL

»» Issue Open: Oct 12, 2010 - Oct 14, 2010







Page 101



»» Rating Agency: ICRA






183 125 -31.69

TECHNICAL CHART

Page 102

ANALYST NOTE

The financial performance of the company appears satisfactory considering the past track record

of consolidation and then growth. The revenue stream of the company includes sales of

residential and commercial space (70 per cent), rentals (19 per cent), property management

services and hospitality services. The company also has an arrangement with banks to securitize

the revenue generated from the lease of its completed commercial, hospitality and retail

developments (Rent Securitization). The bank in turn pays the lump sum amount to the company

and the subsequent rentals is paid directly to the bank by the tenants. It is noteworthy then that

the amount of debt on its books includes the loan taken by the company through this route.


STRENGTHS

1. An Execution play with an Outsourced Development Model

2. Diversified project portfolio with strong track record and execution capability

compliments its strong brand

3. Notably the cash flow in the past has remained very inconsistent as it has posted negative

cash-flows from operations for most of the last 5 years (Q1 FY2011, FY2010, FY 2007,

FY 2006).

RISK CONCERNS

1. Geographic Concentration Risk and increasing share of commercial projects: The

projects of the company are highly concentrated in CBD (Central Business District)

region in the city of Bangalore. At present, close to one fourth of the total ongoing, under

development and forthcoming developments are in the city. Though the company has

proposed to diversify into other regions, the share is unlikely to come down significantly.

Moreover, diversification into other states will also be associated with the risk of

execution. Further, it may not be able to enjoy the benefit of the low land bank cost

Page 103

enjoyed by its peers in the southern market. Growing share of commercial properties too

remains a concern on account of expected oversupply in the commercial space.

2. Interest rate sensitive and cyclical nature of real estate sector and highly competitive

space: Though at present economic conditions seems stable both domestically and

globally, any slowdown or unforeseen adverse event globally or domestically could

impact the sector adversely. Rising interest rates and raw material prices too would

impact the margins adversely.

BOARD OF DIRECTORS

NAME DESIGNATION

Mr. Irfan Razack Chairman and Managing Director

Mr. Rezwan Razack Joint Managing Director

Mr. K. Jagdeesh Reddy Independent Director

Mr. B.G. Koshy Independent Director

Mr. Noor Ahmed Jaffer Independent Director

Dr. Pangal Ranganath Nayak Independent Director






Phone: +91-22-25963838

Fax: +91-22-25946969

Page 104





1. J.P. Morgan India Private Limited


3. UBS Securities India Private Limited


Registered Office :

Falcon House, No 1 Main Guard Cross Road,

Bangalore - 560001

Karnataka, India

Phone: 80 25591080

Fax: 80 25591945


Website: http://www.prestigeconstructions.com

CONCLUSION

On a NAV basis, Sobha Developers trades at a Price to NAV of less than 0.8 times whereas at

its top end price the Price to NAV of Prestige Estates stands at 1. Overall, though the company

caters to premium segment, the bottomline has thus far failed to reflect the margin increase.

Resultantly,the premium commanded by the company appears steep for now. Going forward

things can improve significantly, but much would depend on the execution capability and

completion and sale of projects, which for the near term seems to be factored into the IPO price.

The markets too have shown an aversion to real estate sector stocks, barring a few exceptions.

Thus overall, while those with a high risk appetite can consider applying, others can bide their

time and await lower levels to consider pouching this stock.

Page 105

HATHWAY CABLE & DATACOM LIMITED


Incorporated in 1995, Hathway Cable & Datacom Limited is the leading cable television

services provider in India, as well as one of the leading cable broadband services providers.

Company offer analog and digital cable television services across 125 cities and towns and high-

speed cable broadband services across 20 cities. Hathway Cable is the leading operator in

several key markets of India including among others, cities such as Mumbai, Delhi, Bangalore,

Ahmedabad, Hyderabad, Jaipur, Indore, Bhopal, Baroda and Surat.

As per MPA Report, Hathway is the largest distributor of digital cable in India. As of December

31, 2008, their digital television subscriber base constituted approximately 42% of the total

digital cable television market in India . As of July 31, 2009, company had 1,319,646

subscribers for analog cable television services and 972,969 digital cable television subscribers.

Hathway Cable & Datacom hold a pan-India ISP license and were the first cable television

services provider to offer broadband internet services. They are currently India's largest cable

broadband services provider with 953,084 two-way broadband enabled homes passed, as on 31

July, 2009.

In addition to cable television and broadband service offerings, they also generate advertising

and airtime revenue from advertisements aired for and on behalf of channels owned by third

parties, such as the Hindi movie channel, Cine Channel, and the music channel, iTV.

Company Promoters:

1. Mr. Akshay Raheja, has been a non-executive Director since 2000.

Page 106

2. Mr. Viren Raheja, has been a non-executive Director since 2008.

OBJECTS OF ISSUE

The objects of the Issue are to:

1. Fund customer acquisitions;

2. Investment in the development of digital capital expenditure, services and set top boxes;

3. Investment in the development of broadband infrastructure, capital expenditure and

services;

4. Repayment of loans; and

5. Fund expenditure for general corporate purposes.

COMPANY FINANCIALS


31-Mar-

09

31-Mar-

08

31-Mar-

07

31-Mar-

06

31-Mar-

05

Total Income 6,728.76 4,346.65 3,086.31 2,532.38 2,085.78

Profit After Tax (PAT) 116.95 46.70 10.97 9.07 6.55

ISSUE DETAIL

»» Issue Open: Feb 09, 2010 - Feb 11, 2010






Page 107








»» Market cap: 1395


March

240 976.5 -59.31

TECHNICAL CHART

Page 108

ANALYST TAKE

The company has accumulated losses to the extent of Rs 4,274 million as on September 30,

2009. There is thus a high possibility that the profits made in the future will be used to write off

the same. While this will offset the future earnings, it will also reduce the tax burden as the same

(accumulated losses) will be deducted from the taxable profit.


STRENGTHS

1. Established presence & operational expertise: The company has been operational for

more than a decade and has registered strong growth especially in the last two to three

years. This has largely been through the inorganic route by acquiring MSOs (multi-

system operators) and LCOs (local cable operators). Furthermore, it has been able to

withstand the challenging and competitive business till date thanks to its established

brand name and service offerings. Like its listed peer, Den Networks, the company will

focus on expansion and conversion of analog cable services subscribers into digital

connections. Thus, there is a huge ready market for the same. However, there is also a

high possibility that the analog subscribers could opt for DTH and other emerging new

technology services too.

2. De – risking through Digital Services: Higher number of channels, value added

services, customized offerings, broadband internet and better quality and similar to those

offered by the DTH and IPTV players could help the company to withstand the

competition offered by these players and de-risk its business model.

Moreover digitization will help the company to reduce losses on account of under-

reporting by the local cable operators and unauthorized access by the non-subscribers.

However one would do well to note that the company will have to aggressively convert

its subscriber base into digital services users. This will not only help the company to

retain its clients but also enable to offer value added and other pay channels services

which is the key revenue driver in this business segment.

Page 109

RISK CONCERNS

1. Excessive Dependence on Digital service platform and LCO’s for growth: The

company’s revenues seem highly dependent on the growth of its digital subscriber base.

The argument is further strengthened by the fact that the company has earmarked

Rs.1,564 million for the purchase of 9,20,000 set top box units and Smart cards. This

also enhances execution risk.

2. Intensely Competitive Market Environment: There has been an emergence of newer

players with deeper pockets, better packaged products, aggressive promotional

campaigns and marketing backed by large business conglomerates. Further, the sector is

highly fragmented with around 1,000 multi-service operators (MSOs). Thus, despite

having a reach that is much higher than that of most other cable operators, the company

lags behind in terms of revenues. The Average Revenues Per User (ARPU) stands at

Rs.56 per month, which is much lower than that of its closest competitor, DEN

Networks. Notably, of its total subscribers, only a million of them are on digital cable,

which is the key reason for these low ARPUs.

3. Debt-Heavy Balance-sheet enhances Risk : Hathway has made a lot of acquisitions to

boost market share and drive its top-line growth, but for this the funds it has raised has

made its balance sheet debt heavy. A negative return on net-worth and high interest

costs, further raise the risk and stakes for this company in terms of a successful and

timely roll out of its plans.

4. Higher Government Regulation and Capital Intensive nature of its business has an

adverse impact on Visiblity of its prospects as enhances expenses while limiting

operational flexibility.

BOARD OF DIRECTORS

NAME DESIGNATION

Mr. K. Jayaraman Managing Director

Mr. Rajan Raheja Non-Executive Director

Page 110

Mr. Vinayak Aggarwal Non-Executive Director

Mr. Akshay Raheja Non-Executive Director

Mr. Viren Raheja Non-Executive Director

Mr. Brahmal Vasudevan Non-Executive Director

Mr. Jagdish Kumar G Pillai Non executive Director

Mr. Uday Shankar Non-executive Director

Mr. Bharat Shah Non Executive Independent Director

Mr. Sasha Mirchandani Non Executive - Independent Director

Mr. Sridhar Gorthi Non Executive - Independent Director

Mr. Devendra Shrotri Non Executive - Independent Director






Phone: +91-22-25963838

Fax: +91-22-25946969



Page 111



2. Morgan Stanley India Company Pvt Ltd

3. UBS Securities India Private Limited


Registered Office :

Rahejas, 4th Floor,

Corner of Main Avenue & V. P. Road,

Santacruz (West), Mumbai - 400054

Phone: (91 22) 2600 1306/08/09

Fax: (91 22) 2600 1307


Website: http://www.hathway.com

CONCLUSION

At a Market Cap to Sales ratio of 5.6 times, Hathway Cable seems to have priced its IPO fully.

Comparable listed peers like Wire and Wireless (WWIL) trade at a Market Cap to Sales ratio of

less than 1.3, while Dish TV which offers DTH service trades at a ratio of around 5 times.

Hathway has a satisfactory operating history and pan-India presence with the ability to deliver

digital content and value-added services along with broadband internet. It is engaged in a highly

competitive segment with high technology obsolescence risk.

Notwithstanding the undoubted potential in the space and the satisfactory credentials of the

company, it might be prudent for investors to bide their time till the stock price stands trimmed

and the digital roll-out plan of the company gathers momentum.

Page 112

ASTER SILICATES LIMITED


Incorporated in 1996, Aster Silicates Ltd is engaged in the business of manufacturing of sodium

silicate which includes food grade sodium silicate, special drilling grade silicate and detergent

grade silicate. Aster Silicates produce sodium silicate both in glass and liquid form. Food grade

sodium silicate is used in the manufacturing of Silica precipitate and Gel which finds its

applications in toothpaste, salt, cosmetics, glucose powder, tyre & rubber and pesticides etc.

Sodium silicate, (special drilling grade silicate) is also used in off-shore drilling and for

reactivation of old oil and gas fields. The sodium silicate manufactured by Aster is also used in

water-proofing, infoundries and for investment casting, paper, silica gel, textiles and detergents.

Currently, Aster operate from two units in Gujarat having aggregate installed capacity of 150

MT of glass/day. Unit I has three furnaces with an average combined capacity of 100 MT of

glass/day. Unit II has a single furnace with a capacity of 50 mts of glass/day, which is also triple

pass regenerative and recuperative end fired glass furnace.

For the proposed project, Company intends to install a special designed triple pass regenerative

and recuperative Furnace of 100 MT capacity each capable of working on biogas with a facility

of having duel fuel arrangement for working on other fuel like Natural Gas etc. The furnace

Page 113

shall be capable of being operated both manually and automatically, and shall also possess

versatility for manufacturing Sodium Silicate in glass and liquid format. For the expansion of

manufacturing facilities at Bharuch, company initially intend to use Natural gas from Gujarat

Gas Company Limited as a source of fuel. However, gradually, they intend to shift the fuel

source to Biogas, and have Natural gas as a standby arrangement.

Company Promoters:

1. Mr. Mahesh A. Maheshwari and

2. Mrs. Namrata M. Maheshwari

OBJECTS OF ISSUE


1. Expansion of Manufacturing facilities;

2. Additional Working Capital Requirements;

3. Public Issue expenses.

COMPANY FINANCIALS


30-Sep-

09

31-Mar-

09

31-Mar-

08

31-Mar-

07

31-Mar-

06

31-Mar-

05

Total Income 3031.09 3409.13 1699.42 832.76 864.62 815.69

Profit After Tax (PAT) 232.20 254.91 65.79 14.24 -8.61 35.87

ISSUE DETAIL

»» Issue Open: Jun 24, 2010 - Jun 28, 2010




Page 114






»» Rating Agency: BWR Limited






118 24.75 -79.03

TECHNICAL CHART

Page 115

ANALYST TAKE

The company is targeting to raise Rs 53.1 crore at a price band of Rs 112-118. A number of new

equity shares at the lower price band of Rs 112 works out to be 47 lakh and at the higher price

band of Rs 118 to be 45 lakh. At issue price of Rs 112-118, EPS for the year ended March 2010

is Rs 2.9-3.0 resulting in PE of 38.6-39.3. There is no listed peer company. However, TTM PE

of the inorganic chemical sector is 9.9. Thus, the issue is highly priced.


STRENGTHS

1. A diversified manufacturing base having a capacity to produce quality chemicals from

2. World-class plants.

3. Vibrant downstream industries in different segments.

4. Competitive core industries, essential for the development of chemical industries.

5. Capability to produce world-class end products.

6. Strong presence in the export market in sub-segments such as Dyes, Pharma and

Agrochemicals.

7. Large domestic market.

8. Major raw material component sources within the country.

9. Good R&D base and quality human resources.

RISK CONCERNS

1. Basic raw material constitute major portion of cost of production in the chemical

industry. Indian chemical industry uses either natural gas or crude oil as feedstock for

manufacturing process. The fluctuations in oil prices therefore affects the growth

projections.

Page 116

2. The objects of the Issue for which funds are being raised have not been appraised by any

bank or financial institution.

3. The company is yet place orders for Plant and Machinery aggregating Rs. 744.99 Lacs.

4. The Company has a negative cash flow in the past 5 years.

5. Top five clients contributed approximately 80.90% of sales for FY 2009. High business

risks.

6. Company has no history of dividend payment.

7. Company has history of related party transactions.

8. IPO grade -2 by Brickworks, indicating below average fundamentals.

BOARD OF DIRECTORS

NAME DESIGNATION

Mr. Mahesh A. Maheshwari Chairman and Managing Director

Mrs. Namrata M. Maheshwari Whole Time Director

Mr. Jaykishore S Rana Independent Director

Mr. Venkatachalam Subramaniam Independent Director

Mr. Manish G Asawa Independent Director


Sharepro Services Private Limited,

Satam Industrial Estate,

Cardinal Gracious Road, Chakala,

Andheri (East), Mumbai 400 099, India.

Page 117

Phone: (91 22) 2821 5168

Fax: (91 22) 2837 5646


Website: http://www.shareproservices.com


Saffron Capital Advisors Private Limited


Registered Office :

A- 602, Fairdeal House,

Swastik Char Rasta, Off C G Road,

Navrangpura, Ahmedabad – 380 009, Gujarat

Phone: + 91 79 26422840

Fax: + 91 79 26422840


Website: http://www.astersilicatesltd.com

CONCLUSION

Highly competitive and fragmented industry with a number of small players offering similar

products also does not augur well for the long term growth prospects of the company. Also the

number of legal proceeding against the company and its directors (especially for dishonour of

cheques) raises corporate governance concerns.

With no comparable peers, and negatives far outweighing the positives, the forward PE of

multiple of almost 25 times cannot be justified.

Page 118

TECHNOFAB ENGINEERING LIMITED


Incorporated in 1971, Technofab Engineering Ltd (TEL) is engaged in the business of providing

Engineering Procurement and Construction (EPC) services, and executing a wide range of

Balance-of-Plant (BoP) and electro-mechanical projects on a complete turnkey basis. Technofab

provide services to domestic and overseas markets across a number of industrial and

infrastructure sectors which includes power, oil & gas, water & waste water treatment and other

industrial & infrastructure sectors.

Technofab Engineering provides EPC services for various BoP packages for power, oil & gas

and other industrial and infrastructure undertakings. Company also provide EPC services to the

main plant for water & waste water treatment projects. TEL has dealt with engineering

consultants such as Development Consultants Private Limited (DCPL), Desein Private Limited,

FITCHNER Consulting Engineers (India) Private Limited, Mecon, Tata Consulting Engineers,

Engineers India Limited, M.N. Dastur, L&T, Sargent & Lundy, Uhde India Private Limited,

Toyo Engineering India Limited, SAUR International, BCEOM France, etc. for its various EPC

projects.

OBJECTS OF ISSUE

1. To meet long-term working capital requirements;

2. To finance the procurement of construction equipment;

3. To set up maintenance and storage facility for construction equipment;

Page 119

4. For setting up of training centre for employees;

5. For general corporate purposes; and

6. To meet Issue expenses.

COMPANY FINANCIALS


30-Sep-

09

31-Mar-

09

31-Mar-

08

31-Mar-

07

31-Mar-

06

31-Mar-

05

Total Income 7207.33 14956.67 8163.05 6161.03 5400.05 5040.63

Profit After Tax

(PAT)

712.16 1168.69 530.71 78.64 47.9 28.37

ISSUE DETAIL

»» Issue Open: Jun 29, 2010 - Jul 02, 2010









»» Rating Agency: FITCH Ratings India Pvt. Ltd.





Page 120


March

240 155 -35.42

TECHNICAL CHART

ANALYST TAKE

The equity capital of the company is Rs 7.5 crs and based on the earnings for the year ended

March 2008, March 2009 and March 2010 the EPS is Rs 7.08, Rs 15.58 and Rs 25.45

respectively. This is a good earning that the company has achieved and based on March 2009

earnings the present issue is at a very reasonable pre-money earnings multiple of 9.04 at the

lower band and 9.43 at the upper band. Clearly valuations look attractive and there is something

on the table for investors to look forward to.

Page 121


STRENGTHS

1. Project execution capabilities

2. Diversified business and capabilities

3. Cost competitiveness

4. Pre-qualification credentials

5. Qualified and experienced team

6. Established Marketing Set-up

RISK CONCERNS

1. Company relies substantially on government-owned and government-controlled entities

for our work orders. Political or financial pressures may cause a decrease in Government

spending on public sector projects, which could adversely affect the growth.

2. The standard conditions in contracts typically awarded by clients including government-

owned and government-controlled entities are that they have the right to terminate the

contract at any time, without assigning any reason.

3. Technofab is exposed to significant risks on fixed-price or lump sum turnkey contracts

and high working capital requirements.

4. The Company is presently carrying out projects in Ethiopia, Fiji and Kenya and is

bidding in several other African countries, some of them are unstable political

economies.

Page 122

BOARD OF DIRECTORS

NAME DESIGNATION

Mr. Avinash C. Gupta Chairman and Managing Director

Mr. Arjun Gupta Whole Time Director

Mr. Nakul Gupta Whole Time Director

Dr. Nitish Kumar Sengupta Independent Director

Mr. Pawan Chopra Independent Director

Mr. V.S. Mathur Independent Director

Mr. Arun Mitter Independent Director






Phone: +91-22-25963838

Fax: +91-22-25946969




Collins Stewart Inga Private Limited

Page 123


Registered Office :

507, Eros Apartments

56, Nehru Place, New Delhi, 110 019

Phone: 91 129 227 0202

Fax: 91 129 227 0201

Website: http://www.technofabengineering.com

CONCLUSION

Investors with a medium term outlook should subscribe to the issue and should under normal

circumstances be amply rewarded for their investment. A 15-25% appreciation on the initial

investment in the first year or earlier looks likely.

Page 124

INDOSOLAR LIMITED


Incorporated in 2005, Indosolar Limited is a leading Indian manufacturer for photovoltaic cells.

Indosolar manufactures poly-crystalline solar photo-voltaic (SPV) cells from silicon wafers

utilizing crystalline silicon SPV cell technology for converting sunlight directly into electricity

through a process known as the photo-voltaic effect. Indosolar Ltd market and sell their products

to primarily module manufacturers on a business-to-business platform, who in turn supply to the

system integrators who install the systems for grid and off-grid (roof top) applications for use in

the domestic market as well as markets in Europe, Spain, Japan, Asia, Canada and USA.

Company's manufacturing facility for SPV cells in Greater Noida currently comprises of one

SPV cell manufacturing line having an annual capacity of 80 MW which commenced

commercial production in July, 2009. Another SPV cell manufacturing line having an annual

manufacturing capacity of 80 MW is expected to be commissioned and will commence

commercial production in March 2010, resulting in aggregate annual capacity of 160 MW as

part of their expansion plan. Company intends to increase their annual production capacity to

approximately 260 MW by April 2011, with the commercial production through the proposed

Line 3, which we intend to finance out of the Net Proceeds. The Line 3 is expected to be

completed in February 2011 and is expected to commence commercial production in April

2011.

Company Promoters:

1. Mr. Bhushan Kumar Gupta; and

2. Mr. Hulas Rahul Gupta

Page 125

OBJECTS OF ISSUE


1. To finance the expansion of their annual manufacturing capacity for SPV cells by adding

a third line of 100 MW; and

2. For general corporate purposes.

COMPANY FINANCIALS


30-Sep-09 31-Mar-09 31-Mar-08 31-Mar-07 31-Mar-06

Total Income 173.24 7.4 - - -

Profit After

Tax (PAT)

-154.87 -82.07 -2.84 -2.23 -2.09

ISSUE DETAIL












Page 126





March

29 17.1 -41.03

TECHNICAL CHART

Page 127

ANALYST TAKE

1. Company has commenced commercial productions only in July 2009 and so, has a

limited track record in terms of Sales and Profitability.

2. The total outstanding debt on the books stood at Rs 6574.47 million. An analysis of the

balance sheet indicates that the incremental debt was mostly used to fund the capital

expenditure (denoted by a significant increase in the purchase of fixed assets in FY 2009

and FY 2010.A Debt to Equity ratio of more than 4.5 times as on March 2010 indicates

high leverage and high gearing.

3. However, the third manufacturing unit of 100 MW is being financed entirely through the

equity route and hence, its Debt to Equity is expected to come down significantly over

the next couple of years.

4. The company has made a loss at EBIDTA and PAT level since inception.


STRENGTHS

1. Growth Prospects of Global Solar Industry: As of December 2009 Global SPV Cells

demand stood at 7.3 Giga Watt (GW) up at a Compounded Annual Growth Rate

(CAGR) of 50% since 2005 when the production stood at 1.45 GW. It is expected that

Global SPV cells industry will increase at a CAGR of about 28% from 7.3 GW at the

end of 2009 to about 24.7 GW in 2014. Notwithstanding the intensity in the credit

market collapse by the fourth quarter of 2008, the PV industry chain raised between

$13.5bn and $14.5bn in 2009, a new record for a single year indicating a high investor

appetite for the industry.

2. Impetus given to Solar Energy by Indian Government: Under “Jawaharlal Nehru

National Solar Mission (JNNSM)” the Indian Government proposes to increase the

Indian SPV market from 36 Mega Watt (MW) in 2008 to about 1 GW in 2013 and

subsequently to 3 GW and 20 GW by the end of 2017 and 2022 respectively. A scheme

is being introduced in cooperation with the Ministry of Power, NTPC Limited and the

Page 128

Central Electricity Authority, which would simplify the off-take of solar power and will

reduce the selling cost of Solar Power to Rs.5-6 per unit as against prevailing Rs.18-

18.5.

3. Promoter Experience in Technology intensive startups: The current promoter Mr.

B.K.Gupta and his son Mr. Hulas Rahul Gupta had promoted a venture in the name of

“Phoenix Lamps India Limited” in 1991 (presently known as “Halonix Limited”) which

they grew from 500 lamps a month in 1989 to 9,000,000 lamps per month in 2007.In

2007, Phoenix Lamps was sold to the private equity firm, Actis. Phoenix Lamps

manufactured Halogen Lamps which is another technology intensive product.

4. Healthy order book of the Company: As of July 31, 2010 Company has an order book

worth Rs.10, 119 Mn from 11 customers from 7 countries of which Rs.1708 Mn has

been executed as of July 31, 2010.

RISK CONCERNS

1. High Cost of Solar Power as Compared to other conventional and renewable

resources:

Fuel Coal Gas Wind Solar

Capital Cost per MW in Rs. Mn 450-

470

350-

400

550-

600

1550-

1600

Per Unit cost of Generation in Rs. In

India

2.7-3 2.6-3.1 5.5-5.8 18-18.5

(Source: CRISIL Research)

Solar Power is the most expensive resource of energy as compared to any other resource.

2. Technology Obsolescence Risk: Looking at a high cost of generation per unit and

average efficiency of about 16-17% there is a lot of research and development going on

around the globe. Thus, any major technological breakthrough could make most of the

existing players like Indosolar laggards in terms of Technology. Also there are no long

term contracts to secure companies against this risk. As on date Indosolar has the well

Page 129

proven technology of Crystalline silicon (CS) from Schmid.CS. This technology is being

used by 93% of manufactures around the globe as of now.

3. Industry is still at a mercy of various State and Central Governments around the

world: Countries across the world have doled out subsidies and incentives to promote

solar energy, be it the Kyoto Protocol, Feed in Tariff scheme in Europe or our own

JNNSM or SIPS offered by Indian government. If all these incentives are partially or

fully withdrawn then companies could face huge margin pressures. With existing

efficiencies and technologies, their profitability is highly dependent on these incentives.

4. Huge Land Requirement: Solar power needs a lot of land. Concentrated Solar Thermal

(CST) projects in the United States use 6 to 10 acres per MW of power. India has a big

land bank which can be used for solar power generation but acquiring land in India has

its own set of problems. Moreover, acquiring land at market rates will make projects

uneconomical.

BOARD OF DIRECTORS

NAME DESIGNATION

Mr. Bhushan Kumar Gupta Executive Chairman

Mr. Hulas Rahul Gupta Managing Director

Mr. Anand Kumar Agarwal Executive Director and Chief Financial Officer

Mr. Ravinder Khanna Independent Non Executive Director

Mr. Aditya Jain Independent Non Executive Director

Mr. Gautam Singh Kuthari Independent Non Executive Director


Page 130





Phone: +91-22-25963838

Fax: +91-22-25946969




Enam Securities Private Limited


Registered Office :

Indosolar Limited,

C-12, Friends Colony (East),

New Delhi 110065, India.

Phone: +91 11 26841375

Fax: +91 11 26843949


Website: http://www.indosolar.co.in

CONCLUSION

Page 131

Indosolar is in a growing industry but the industry is still evolving in terms of technology and

profitability. The issue appears fairly priced when compared to it’s peer Websol Energy Systems

Limited(Websol) which trades at a EV per MW of Rs.200 Mn as against Indosolar which has

EV per MW of Rs.102 Mn based on March 2010 capacity.

Also in terms of EV/Sales on 2011E sales, Websole trades at 4x times as against Indosolar at

about 3.2x times. But Websole has a track record of about 15 years. It is also a profit making

company whereas Indosolar is in its first year of operation and is yet to make profits.

Considering all the variables as they stand right now, traders can participate in this issue from

the point of view of listing gains as Indosolar will be the biggest listed Indian company in the

Solar Photovoltaic space.

Longer term investors who are willing to bet on JNNSM and willing to take on the technology

risk (there has been no major change in technology over the past 5 years) can consider

subscribing to this issue.

Page 132

Page 133

Page 134

REFERENCES:

Websites/WebPages:

www.nseindia.com

www.moneycontrol.com

www.moneylife.in

www.coalindia.in

www.chittorgarh.com

www.economictimes.com

www.stockmarkettipz.info

www.anagram.co.in

www.indiainfoline.com

www.indiastudychannel.com

www.bellthebull.com

www.indlawnews.com

www.investorwords.com

http://www.sebi.gov.in/dp/coaldrhp.pdf

http://www.sebi.gov.in/dp/psbank.pdf

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http://www.sebi.gov.in/dp/Persistentdrp.pdf

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