Category: India IPO Reviews and Updates

Info Edge India Limited IPO opened for subscription today. We feel the company is a little bit shady in disclosures. Requests for past quarterly results and second quarter results went unanswered.

Info Edge is a pure Dot Com Classifieds play. It generates 90% of it’s revenues from Naukri.Com and is a leader with upto 50% market share. Business World in its estimate expects the online job search market and online matrimony market to grow at 35% YoY. Also with poor internet penetration in India, don’t expect exponential growth.

Earnings Analysis:
According to our analysis, annualizing the first quarter PAT, we expect an EPS of Rs 7.64 for FY2007.
FY2004 – Income=9.076 EPS=1.12
FY2005 – Income=19.472 EPS=0.15
FY2006 – Income=84.057 ESP=6.08
FY2007 – Income=117.2 EPS=7.64 (Expected)

The Hindu Business Line Analysis says,
Investors with a high-risk appetite can consider taking an exposure in the book-built initial public offering of Info Edge (India).

DalalStreet.Biz recommends a AVOID recommendation on Info Edge India Limited. Why ?

The revenues of Dot Coms are highly unpredictable. In 1999-2000, companies like Yahoo!, eBay and Amazon made waves, because they had a sound business model and that’s why they are still leaders today. Pure classifieds is a risky business as tomorrow social networking sites will come up with targeted classifieds which will be more effective. Also note that Info edge India Limited issued shares in September-2006, to Sherpalo Ventures and Murugan Capital, VCs from the Valley at just Rs245. If the VCs had confidence in the management why aren’t they picking stake at Rs 290 to Rs 320 per share ?

Worldwide, any Dot Com that is a leader is only because of innovation and the Patents it holds. Info Edge, unfortunately doesn’t hold any patent. Free classifieds like kijiji have gained lot of momentum in India which can threaten the whole revenue model of Info Edge. Considering all this background and the pricing which comes at price-earnings multiple at the lower- and upper-end of the price band works out to 43-50 times its consolidated 2005-06 per share earnings on its existing equity base and, the company’s price/revenues at 7-8 times are higher than the mid-cap software industry average. Instead buy any of the other IT companies available at attractive valuations.

We recommend investors not to subscribe to the IPO of Info Edge India Limited.
Disclosure: We are not applying.

Tags:IPO India, Invest India ,Info Edge India

DCB – Development Credit Bank.

You can check the allotment status of DCB IPO here.

The Basis of allotmenet of DCB is made available here.

Tags: IPO India

The Indian stock market regulator, SEBI has tightened the Pre-IPO publicity. You may have noticed pre-IPO publicity in case of GMR Infrastructure, Voltamp Transformers and other third rate companies like Deep Industries.

Now lately you may have witnessed another real estate company Parsvanath builders advertising heavily as it plans to raise money on Dalal Street. Now a company going for IPO cannot advertise from the time the companys board approves the IPO till the time the allotment of shares is done.

The issuer company is also required to make prompt, true and fair disclosure of all material developments that take place during the period referred to above, relating to its business and securities and also relating to the business and securities of its subsidiaries, group companies, etc., which may have a material effect on the issuer company, by issuing public notices in newspapers.

IPO India , India Invest , Dalal Street

Gayatri Projects Limited debuted at Rs 333, compared to the IPO price of Rs 295 per share.
Currently at 3:00 the stock is trading at 306 just 11 rupees above the offer price of 295. Their is a lot of selling pressure on the stock.

GPL recorded a total income of Rs 376.4 crore during FY06, up from Rs 303.6 crore for the year before. The net profit of the company was Rs 18 crore during FY06, which was Rs 9 crores during FY05

IPO India , Invest India , Dalal Street

If you had applied for the Gayatri Projects Limited, IPO, you can now check the status of allotment here on Karvy website.

Click here to check Gayatri Projects IPO status.

Find details of the IPO subscriptions for the following companies that closed on Oct-06-2006. According to SEBI, a Retail Individual Investor is one who applies for less than Rs100,000 worth of shares. However, for applying for over Rs50,000 you need to quote your Income Tax PAN Number.

Hanung Toys and Textiles limited IPO Subscription Details
Total Issue Size 9500000
Total Bids Received 41030100
Total Bids Received at Cut-off Price 9055380
No. of times issue is subscribed 4.32
Retail Individual Investors (RIIs) 4.7982

Accel FrontLine limited IPO Subscription Details
Total Issue Size 5635950
Total Bids Received 13759970
Total Bids Received at Cut-off Price 7804370
No. of times issue is subscribed 2.44
Retail Individual Investors (RIIs) 4.2150

DCB IPO – Development Credit bank of india IPO Subscription Details
Total Issue Size 71500000
Total Bids Received 2551212500
Total Bids Received at Cut-off Price 355016750
No. of times issue is subscribed 35.68 times
Retail Individual Investors (RIIs) 15.3059 times

Global Vectra IPO Subscription Details
Total Issue Size 3500000
Total Bids Received 12575130
Total Bids Received at Cut-off Price 1201920
No. of times issue is subscribed 3.59
Retail Individual Investors (RIIs) 1.1073 times

Disclosure: I have not applied for any of these issues.

IPO India , DCB IPO , Indian Stocks , India Primary Market