Bharat Dynamics Ltd IPO Message Board (Page 12)

APPLY THIS IPO
KEEP IT FOR 2 YEARS
NO LISTING GAIN

भैया - २ साल के बाद तो फायदा होगा या नहीं?
या फिर ऐसा न हो की आप ये बोलो की "मैंने तो २ साल अपने पास रखने के लिए कहा था, २ साल के बाद फायदा होगा ऐसा नहीं कहा था"

If there is no listing gain , then what is the benefit of blocking the money by applying for IPO?
We should buy the shares post listing, right?

क्या आपने अभी तक सब्सक्राइब किया या नहीं?

Yes!! Lagbhag = Almost ...:D

Broker''s poll
94℅ subscribe
06℅ avoid
Out if 94℅
50℅ think no or little listing gain
Otherwise long term investment
Source-CNBC AWAAZ

Dear harit,
As you mentioned earlier Insurance company bids 54 lakh shares.

True
They have to

-      BHARAT DYNAMICS (BDL) IPO

GOI owned defense sector company. Company is the sole manufacturer in India for SAMs, torpedoes and ATGMs. Company is also the sole supplier of SAMs and ATGMs to the Indian armed forces.

-      Defense Sector outlook
Foreign direct investment rate is increased in defense sector.
‘Make in India’ initiative has been streamlined to boost investor confidence.
Overall sector is good for investment.


Objectives of the issue:
-      To carry out disinvestment
-      To achieve the befits of the listing
Company is not getting anything by this ipo. Existing owner (GOI) is selling shares.
-      Financials
BDL has posted revenue/net profits of Rs. 3253.23 cr. / Rs. 443.55 cr. (FY15), Rs. 4601.38 cr. / Rs. 562.07 cr. (FY16) and Rs. 5198.07 cr. / Rs. 490.32 cr. (FY17). Despite higher revenue, it has posted lower net for FY17 and first half of 2018 because of decrease in other income as due to buy backs in last 4 years. Its cash surplus reduced because of buy back affecting interest income. For the first half of the current fiscal ended on 30.09.17, it has earned net profit of Rs. 172.59 cr. on a revenue of Rs. 2190.25 cr. For last three fiscals, it has posted an average EPS of Rs. 19.40 and an average RoNW of 25.67%. Issue is priced at a P/BV of 4.81 based on its NAV of Rs. 88.96 as on September, 2017 . Asking P/E is around 23 - 24. Company’s current order book as of January 31, 2018 is Rs. 10543 crores.
It has no direct listed peers to compare with in India. In India BEL, Cochin Shipyard, L&T, M&M, Tata Power, Reliance Defense etc. are working on defense projects but their main revenue comes from another sector.
If we compare BDL to some exact peers in United States – Lockheed Martin P/E 25, Rockwell Collins P/E 27, Northrop Grumman P/E 26, Raytheon P/E 28.
BDL is asking same as international peers. Looks like it is fully priced.

Conclusion:
First complete defense sector company is going to list. Good order book. Monopoly in some sector, no competition. Good player and get full benefits of ‘Make in India’ initiative. Almost zero debt. Dividend payout will be good. Good employee workforce (25% are engineers) like Engineers India, NBCC.
IPO is not overpriced it is fully priced. Chances are more it will give good return in long term. At present market condition is not favorable so listing gain will be less. But minimum 10 to 15% listing gain is there on listing day. It will oversubscribe in all categories. For retail applicant, I suggest applying minimum lot.

Thanks for Nice Conclusion....

Applied today multiple applications with 1 lot each.

Till now 6% subscribed !!

Dear Experts , can anyone please suggest why there is no anchor investment?
As govt hold the company , is it the reason?

Yes, PSU are exempted for obtaining subscription from ''Anchor Investors'' as they shall never be a ''night flyer''. For a private company it is presumed that small investor may not be equipped for taking decision on investment, thus it has to be firstly subscribed (minimum 15%) by Institutional Investors (commonly called Anchor Investor) who are competent to make investment decision and they have to be invested for at least 30 days from listing.

In PSU there is no such fear..

what is the kostak rate?

Unless there is a possibility of +15% listing gains, I believe it is better to buy post listing after observing the stock for some time.

What is the hurry to enter immediately, if we cant even expect reasonable listing gains for the risk we take in apply in IPO?

Long term investors can subscribe this ipo ,

however Bandhan bank better option for listing day sellers.

Prime objective of retail investors to subscribe any IPO is listing gain, if there is no listing gain more than 10 percentage they have better option in secondary market for long term.

Avoid, return may b from 0 to 5 percentage

Before applying in PSU like BDL,hal
See track record of last year gov.co. listing
Gic,nia(hudco is good for that matter)
NMDC
Big IPOs
Only qib will participate bcos of indirect gov.orders

@RAJKUMAR,
MAHANAGAR GAS is not PSU.

Dear Umang.
Yes Mahanagar Gas is not psu but Quassi Govt. Because at the time of IPO Gail and British Gas holds equal share. Gail is a PSU

No big GMP in any of the IPOs coming in bundle. Whoever catches them, will have to hold for long term as all experts are suggesting in their recommendations. Means no chance of big listing gains in any of the IPO.

Can someone tell us the average cost of aquisition of shares held by selling shareholders.

See page number 88 of RHP ????
5. Net Asset Value (“NAV”) per Equity Share of face value of Rs 10 each
NAV per Equity Share Rs NAV
As on March 31, 2017 181.07
As on September 30, 2017 177.94
Prior to the Offer* [●]
* Post completion of the Proposed Bonus Issue, the paid-up Equity Share capital shall increase from 91,640,625 Equity Shares
to 183,281,250 Equity Shares.
There will be no change in NAV post the Offer as the Offer is by way of the Offer for Sale by the Selling Shareholder.
Offer Price: Rs [●] per Equity Share
Note: NAV (book value per share) = Total shareholders’ funds divided by number of shares outstanding as at the
year end.

See at page number 52 of RHP ????
Total Assets 82,849.77 at share capital of 916.41 with 22.78 loans.
????Reflect Rs.903.82 per share.

(Amounts in Rs millions)

@Best wishes,

Arranging coming IPOs priority wise-

1. Karda( very tough allotment )
2. Bharat Dynamics
3. HAL
4.Bandhan( almost everybody will get )

The sequence is made in consideration with listing gain.
Personally I think, there will be MAXIMUM 10% listing gain will be there in Bandhan, HAL, Bharat so I will avoid all these three. Rather I will apply in TARA CHAND LOGISTIC (SME IPO) coming on 13 March.
Tara Chand- A better choice for Small/mid/long term.
Thanks

@ Best wishes,
There is no change of view at all.
Non of the above mentioned three IPO will give more than 10% listing gain whereas there r many shares available in secondary market which can give better return in short term also.
If I can manage the fund than I will apply in

Contd. From previous post.....

Sandhar , karda ( priority wise ).
Thanks.

Tulsian (Kedia) , recommends for Long Term.

Icici secuirties and Mehta secuirties have given a subscribe call for long term to this ipo

Hello sir!
What is final decision? Is it safe to invest for this share? Please advice wisely.

Recently listed Missile Co. IPO ''Apollo'' which was subscribed approx ''250x'' close to touch its issue price today at 275.

@. Bhallal dev

Thats but obvious asTHEY'' <----- have strangely reduced the spending on defence in the latest budget.May be as China all of a sudden turned into a tango partner from the most vicious enemy ever.....Defence sector hasn''t received even Rs. 5 Cr worth of actual investments vide Make in India initiative...

Margins have shrunk due to incessant buybacks leading to a fall in other income...Other income effect seems to have constituted a noteworthy portion of profits / margins.. And to add to that, a few fear that after the divestment these companies might get a sort of Sauteli Treatment...