Bajaj Corp Limited IPO Message Board (Page 26)

BAJAJ WILL SUBSCRIBE LESS THAN 8 TIMES BECAUSE PUBLIC WILL HAVE NO FUNDS IN HAND AND ULTIMATELY BAJAJ WILL DELIVER BETTER RETURNS THAN SKS.

GO FOR BAJAJ

DEAR GEM IPO FINDER,

I THINK THIS TIME U ARE SVERELY WRONG. SKS WILL SUBSCRIBE MORE THAN 3 TIMES OR EVEN MAY BE AROUND 4 TIMES.

THIS DOES NOT MEAN THAT SKS IS GOOD IPO. NO, IN MY OPINION IT IS HEAVILY OVERPRICED IPO AND PUBLIC SHOULD NOT APPLY INT IT, BUT THE KIND OF HYPE CREATED BY MEDIA AND GREY MARKET ACTIVITIES WILL ENSURE THIS KIND OF SUBSCRIPTION.

90% OF THE PUBLIC IS UNABLE TO SELL IN GREY MARKET,THEY JUST LISTEN OR READ IN WEBSITES OR FROM THEIR FREINDS ABOUT GREY MARKET AND FORM THEIR OPINION WHETHER TO SUBSCRIBE OR NOT TO SUBSCRIBE.

WHETHER IPO IS OVERPRICED OR NOT COULD BE A MATTER OF DEBATE FOR WE ALL, BUT WITHOUT CHALLENGING UR WISDOM, I CAN TELL U FOR SURE, THAT THIS IPO IS GOING TO SUBSCRIBE MORE THAN 3 TIMES IN RETAIL OR EVEN HIGHER.

MARK MY WORDS AND SEE AFTER 7:00 PM ON 02-08-2010

Price of Bajaj Corp Ltd will shoot up to 750-800 in the secondray market

IN BAJAJ CORP WE WILL BE APPLYING FOR PENUTS??

RETAIL SUBSCRPN = 8 TIMES
GMP = 110
GAIN /ONE LAC INV = 19 SH * 110 = 2000

IN SKS:

RETAIL SUBSCRPN = 2 TIMES
GMP = 110 INCLUDING DISCOUNT
GAIN /ONE LAC INV = 50 SH * 110 = 5500

BOTH THE CO HAS SIMILAR RISK OF CAPITAL SKS A BIT HIGHER.

Dear Natarajan,
Just want to correct you on your previous post.If Bajaj Corp is subscribed 10 times you will get less than 20 Shares.As per Sahranpuriji Bajaj premium is 120 with no seller & his is final word on GMP in Delhi region.This I say so becos When smart investment gave HMVL premium as 3-4 ,Sahranpuriji HMVL premium is 9 & it listed exactly at 175.So for all purposes BajajCorp premium is 120 & if it is 120 then after listing add 60 more which will take Bajaj corp to 840.

grey market kostak 1800 buyer
grey market share 95 buyer

Dear GEM IPO FINDER,
1st of all sorry that i have mentioned your name in my previous post as "FUNDER" instead of "FINDER", sheer typing error.
Coming back to your anlysis., i liked that you have highlighted the fact that BAJAJ CORO is " KHALI DABBA CO",2ndly your previous post also suggest that "SKS" IS better ipo than Bajaj.
However your allcation of funds towards sks is 40% &Bajaj 60%.
Correct me if i am wrong.
This is just out of accdemic inerest & i value your opinion.
milinds

Business Line says Avoid, as much of the offer proceeds are going towards funding promotional expenses on new product forays, the payoffs from which are uncertain. But there were past examples in which the Business Lines has asked during IPO to avoid and some time after good listing has given buy call.

SHARANPURIJI

IS THE GMP OF BCORP U R TALKING ABOUT IS TRUE???
ON VARIOUS WEBSITES IT SHOWS 30-35, I THINK THEY R SHOWING LOW BECAUSE OF IPO NOT YET OPEN AND KEPT LOW TO ATTRACT TOWARDS SKS AFTER SKS CLOSES I HAVE ALSO A FEELING THAT BCORP'S GMP WILL SHOOT UP BUT 120 I M NOT EXPECTING BUT THAT IS EASILY POOOSIBLE GIVEN THE PROFILE OF THE CO.

ONE MORE THING JUST BEFORE THE LAUNCH OF IPO OF BCORP THE PROMOTERS OF THE CO PAID RS. 92 CRORES AS DIVIDEND, MAKING ITS ALMOST ENTIRE RESERVES NIL.IT HAS VERY LESS NET WORTH IN COMPARISION TO ITS IPO SIZE THATS ONE RISK I CAN SEE EXCEPT ITS ONE PRODUCT CO IMAGE.

THIS IS GOOD IPO. ITS BETTER TO APPLY IN THIS AT 660 THAN TO APPLY IN SKS AT 985.

SKS IS A FINANCE COMPANY WHERE THIS IS A SHISHIR BAJAJ GROUP COMPANY

MUST APPLY

The 45 lakh shares initial public offer (IPO) of Bajaj Corp, a part of Bajaj Group, will open for subscription on August 2, 2010. It intends to raise Rs 283.50 crore at lower end of price band and Rs 297 crore at higher price band.

Anchor investors, a part of qualified institutional investors' (QIB) portion that opens for one-day before issue opening, has been fully subscribed. The company has received commitment for Rs 52.65 crore as against finalisation of allocation of 8.1 lakh equity shares to anchor investors at a price of Rs 650 per share while the price band is at Rs 630-660 per share. Anchor investors included Goldman Sachs, Franklin Templeton, Reliance Capital, Axis MF, ICICI Prudential etc.

Bajaj Corp IPO's anchor investors portion fully subscribed

Applicant
      

No. of Equity Shares Allocated
      

% of Anchor Investor Portion
Reliance Capital Trustee Co Ltd A/c Reliance Regular Saving Fund - Balance Option       153847       19%
ICICI Prudential Emerging Star (Stock Targeted at Returns) Fund       153847       19%
Axis MF Trustee Ltd. A/c Axis Mutual Fund a/c Axis Income Saver       19231       2.40%
Axis MF Trustee Ltd. A/c Axis Mutual Fund a/c Axis Tax Saver Fund       19231       2.40%
Axis MF Trustee Ltd. A/c Axis Mutual Fund a/c Axis Equity Fund       96154       11.90%
Axis MF Trustee Ltd. A/c Axis Mutual Fund a/c Axis Triple Advantage Fund       19231       2.40%
ICICI Prudential Life Insurance Co Ltd       104615       12.90%
PI Opportunities Fund I       53846       6.60%
Copthall Mauritius Investment Ltd       52306       6.50%
Templeton Mutual Fund A/c Franklin FMCG Fund       12154       1.50%
Franklin India Smaller Companies Fund       48615       6%
Goldman Sachs India Fund Ltd       76923       9.50%
Total       810000       100%

Anchor investors have come at 650 for Bajaj Corp so that will be the most probable Issue price.

Bajaj corp seems to be a fantastic issue .Its the best of the lot based purely on fundamentals.

Capacity has been doubled in March 10 at Himachal plant & because there is huge demand of light hair oil in market sale is not a problem.

THIS IMPLIES EPS WHICH IS ALREADY AT 33 ON PRE ISSUE N 28 POST ISSUE CAN IMPROVE TO 40-42 IN MARCH 11.EVEN IF U GIVE A CONSERVATIVE PE OF 25-30 IMPLIES A PRICE TARGET OF RS 1000 TO 1260 . ITS EBIDTA MARGINS ARE THE BEST IN SEGMENT, STRONG BALANCE SHEET AS ZERO DEBT SURE SHOT GROWTH ASSURED .

APPLY BLINDLY ITS A BIG LOTTERY MUCH MUCH BETTER THAN SKS MICRO IPO . AVOID SKS AND APPLY IN BAJAJ CORP.

THANKS AGAIN SREEDHAR N GEM IPO FOR BEING THE FIRST TO DISCOVER THIS GEM OF AN IPOE

bajaj corp. is not a bajaj auto group company its a mukand &bajaj hindustan group company

Looking very expencive

looks expensive you will get this share around 550-560 in secondary market.

my broker is asking shares from me @98 (premium). should i sell or not please advice

bj & milinds,
SKS is high risk high return Issue.If market holds at this levels you may get as high as 10 K per application.My subscription expectation for SKS in retail is between 1 to 1.5 times.
regarding Bajaj corp I am again reproducing my analysis which I had posted on the day the Issue date was announced.
------------------------------------------------------------
3. sreedhar Jul 28, 2010 12:21:20 PM IST

As always friends first & original look at Bajaj corp.

1)Bajaj brand lends its products an image of trust & quality & is extremely popular with rural populace.
2)its major brands like Almond drops command a pricing premium in their respective market segments.
3)Manufacturing facilities located in Tax free zones & it enjoys exemptions from excise duty for 10 years & Income tax for 5 years from March 2009.
4)The growth rate in hair oil segment is greater than FMCG industry average growth rate & there are only 2 other key players in this segment,hence no pricing wars as in other FMCG products.
5)Production capacity in light hair oil was recently ramped up from 39 million litres to 74 million litres.
6)Debt free company
7)Good monsoon increases the spending power of rural investors & with Mr Akula contributing his mite towards the welfare of rural people expect the rural consumer to gravitate towards premium Almond drops from plain Jane Parachute.
7)Most attractively priced.For Period ending March 31 2010,Net revenue was 334.9 Cr vs 252 Cr in fy08-09.Net profit was 83.9 vs 47.On a post equity of 2.95 Cr,EPS is 28.44 & at higher price 660 P/E is 23.2 .
Lets see how it compares to its peers who have grown at a lesser pace than Bajaj corp
Marico(Manufacturer of Parachute) is at 127 with FY09 -10 EPS of 3.84(P/E=33).Marico revenues & Net profit for FY09-10 & FY08-09 were respectively 2660,231 Cr & 2388,189 Cr.
Dabur price 200,EPS 5(NC),5.8(Cons),P/E=40(Non-cons)
Emami price 860,EPS 23.2,P/E=37
GodrejCP price 370,EPS 8(NC),11.2(Con),P/E=46.

So all in all,price is extremely attractive & leaves a lot of scope for appreciation.There is a plenty of potential for Bajaj corp to grow both in revenues,market share & profits.Hence its a great Issue to subscribe to.Unlike mr Akula Bajaj Corp is giving the investors to grow with it from the begining.

Concerns,
1)Almond drops constitute over 90 percent of its sales
-----------------------------------------------------------

It is JYOTI LAB'S type issue ... Hence, modest listing gain's only ... Further it is not a " Must in Portfolio " type stock .. Remember ... This is not a Rahul Bajaj company ... it is A Shishir Bajaj company ..A lot difference . ........BOL BUM

Looks better than SKS on valuation front.

Capital market Excerpts:

50/100

Strengths

The company's manufacturing facilities are located in tax-free zone and currently enjoy exemption from excise duty for 10 years from the financial year ended 31 March 2009 and from income tax for the first five years, followed by concessional income tax rate for the next five years.

Bajaj Almond Drops, a premium brand, is currently the market leader, with value share of 50.3% in the light hair oil segment.

Its OPM is one of the best in the FMCG sector.

Weaknesses

92% of net sales come from Bajaj Almond Drops. It has only 4 hair oil brands

The company intends to raise nearly Rs 297 crore, which is much more than its net worth of Rs 25.6 crore as on 31 March 2010. The company paid dividend of Rs 92 crore in FY 2010, effectively withdrawing all profit till then.

Valuation

At the price band of Rs 630 to Rs 660 per equity share of Rs 5 face value, the P/E at the lower band works out to 22.15 times the EPS of Rs 28.4 for FY 2010. At the upper band, P/E works out to 23.2 times the EPS. In the FMCG industry, comparable companies such as Marico, Dabur India and Emami have P/E of around 31.25, 34.14 and 38.9 time FY 2010 EPS, respectively.