Ankit Metal & Power Ltd IPO Message Board (Page 1)

Hi, Where can I check the allotment status ? Im sure I have been alloted some units in this Company, as I have noticed the balance amount being credited back into my account. However, I'm not able to get the Allotment status with quantity. Any references shared as response o this message would be great.Thanks

listing on 10th july preium around 3 to 5 rs.

hi,
may i know the allotment place and how to allot this IPO
i had an D-Mat Account in indiainfoline securites ltd.
so want the information how this company is working how its progress and at how much price it is going to be listed in the market and when

When it will be listing? Any idea. Anyone know expected premium?

Next Weak any time Ankit is going to be listed sure of -ev as market is going in way

till 3pm 0.81 times subscibed.

till 2pm 0.48 times subscibed. dont apply for this ipo

How much is the premium ...

Hemant has expressed good views and analysis. Thanks.

this is bogus issue. same managements two companies are already listed with same style of issue, both undercutting, it is looking more like to take money of investors so do not apply

Ankit Metal & Power has entered the capital market on 18th June 07 with a public issue of 1.19 crore equity shares of Rs.10 each in the band of Rs.30 to Rs.36 per share.

It seems, the old days are returning back, where same promoter/group is repeatedly tapping the capital market to finance their small size projects, broadly in the similar line of business. Impex Ferro and Rohit Ferro are the two companies of the group having gone public in December 04 and March 06 with at par and Rs.30 issue, respectively for both the companies. Share of Impex Ferro is ruling at Rs.12 and Rohit Ferro at Rs.30.

The company commenced operations at its 350 TPA sponge iron plant from October 2005 while Billets casting plant of 65,140 TPA started in January 2006. The company is now setting up 1 lakh TPA rolling mill and 12.5 MW captive power plants schedule to start by July 2007.

The total cost of project is estimated at Rs.135 crores,which is being financed by Term loan of Rs.65.15 crores and remaining from equity issue.

The company is trying to set up an integrated project with backward-forward complete value chain and may finally have to go for captive source of iron ore and coal. The existing production has mismatch in downstream products. 350 TPA of sponge iron can produce 2 lakh TPA of billets as 1 mt of billets need 540 kg of sponge iron and 540 kg of M.S. scrap or pig iron or cast iron. But billet plant of only 64,140 MT per annum is being installed. Here excess production of 70,000 TPA of sponge iron needs to be sold. Similarly, rolling mill of 1lakh TPA is being set up which will source its 60% requirement of billets in-house while 40% would be sourced from outside.

Since this industry is highly working capital intensive, the company may have to sell its sponge iron on credit and buy billets on cash basis. A high working capital - low margin business.

For FY 07, the company had total income of Rs.215 crores of which Rs.125 crore is trading income. Even in FY 06, which was its first year of commercial operations, had an income of Rs.67 crores with trading income contributing Rs.43 crore. Since major volume is from trading, EBITDA margin is low at about 11% to 12% in these years. The debt of the company at 31st March 07 is also quite high at Rs.109 crores with net worth of Rs.52 crores. The net current assets were at Rs.57 crores, which is in excess of three months topline as trading activity is lesser working capital intensive and manufacturing has longer cycle.

Vikas Metal, MSP Steel & Power and Shri Ramrupai Balaji Steels other similar companies have disappointed investors and this company is sure to be on the same line. Hence, investment is not advised at all.

it is a good company promoters have experience of 20 years eps is good listing gain expected gray market premium is high last day it is going to have a good response. regards

can anybody tell me the power gen.capacity of ankit metal

Please AVOID this IPO.

AVOID

i guess , this from the rohit ferro - group .

Hi all ,

can anybody tell something about this issue? should we apply or not?

Friends ,

This is a great company of Power. The Future of Power Sector is Glorious.

Regards

Has got poor rating from ICRA...

PRESS RELEASE Page 1
ICRA ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. The ICRA
ratings are subject to a process of surveillance which may lead to a revision in ratings. Please visit our website
(www.icra.in) or contact any ICRA office for the latest information on ICRA ratings outstanding.
FOR IMMEDIATE RELEASE
March 20, 2007
ICRA assigns IPO grade 1 to the proposed IPO of Ankit
Metal & Power Limited
ICRA has assigned an IPO Grade 1 indicating poor fundamentals, to the proposed initial public offering
of Ankit Metal & Power Limited (AMPL).
The assigned grading reflects the promoter’s lack of prior experience in steel manufacturing, relatively
small size of the proposed project and lack of any obvious competitive advantage when compared to
other established players in the industry. ICRA notes that the lack of any backward linkage exposes
the company to volatility inherent in prices of critical raw material like Iron Ore and Coal and the quality
of steel and consequently the rolled bars that the company will manufacture may preclude it from
commanding any price premium compared to other players in the segment. Coal in a sponge iron plant
serves both as a reducing agent and a fuel inside the kiln. Given India’s relatively inferior grade of coal
deposits with high ash content, priority position of the power sector as a coal consuming industry and
lack of adequate infrastructure for import of coal, availability of good quality coal could become a major
operational risk factor for sponge iron players, especially the smaller ones.
The promoters, however, have experience in Ferro-Alloys industry and the positive outlook on the
construction industry - the key user for TMT bars- could offset some of the disadvantages that the
project is exposed to.
The promoters are also simultaneously carrying out expansions in some of the other group companies,
and have also stated their intention to start work on another project for expanding the capacity of TMT
bars in AMPL, which would entail investments of over Rs 150 Crores, once this project is completed. .
This also increases the overall risk profile of the project, given the modest cash accruals in the existing
businesses, and the limited ability of the promoters to bring in additional capital, should the need
arises. The inherently cyclical nature of the steel industry and the on going capacity addition by major
steel producers could also impact the realizations and profitability.
For further details please contact:
Ms. Anuradha Ray, (Tel. No. +91-33-22876617 / 22800008)
Mr Anjan Ghosh,