Burnpur Cement Limited IPO Message Board (Page 42)

ONE CAN APPLY FOR LISTING GAINS. APPLY WITHOUT FAIL. PRABHUDAS LILADHAR & ICICI DIRECT's ARE RECOMMENDING TO SUBSCRIBE THIS IPO.

this company is based in west bengal which has a very bad reputation related to trade union. further its a very small comapny with limited presence nd capacity , so would this company be able to sustain itself in future as there are so many big cement comapnies in market.... please suggest

I am going to invest in this IPO Rs. 72000/- because the quoted rate is approx face value & market cap near to netwealth of company so it may open on approx rs. 18 -20/-

I Applied for this issue worth 108,000. Don't worry we will get trible returns..!!

Can any one tell me how much is the subscription for this IPO? specially in Retail?

The performance of Burnpur Cement may not be very good but the premium of Rs 2/- is reasonable to go for it.Though some sites have been cautioning from buying this IPO,am moving ahead for a few lots.Listing price shall be around Rs 25/-

Burnpur has an existing plant of 1000 TPD capacity. During last five years, the capacity utilization is below 25% (except for present quarter, when it is 28%).
The present issue is for setting up a 800 TPD plant.
If Burnpur can efficiently manager its existing plant, there will be no need to put money in the new plant (including its expandable capacity).
Does this not imply that the management is ineffective ?

Jay Prakash Hotel (JAYHOT)is giong to put on Low ckt from Monday onward

i will not prefer to invest in this ipo

i should opt for some other good ipo
new co with low profit & low turnover
i seems to be risky
i suggest to go for some other ipo

MR. GOPAL

Burnpur Cement Limited IPO is a fixed price IPO. Bidding status of fixed price IPO's are not available until allotments are done and basis of allotments are published by the registrar.

NICHE TECHNOLOGIES PVT. LTD. the worst registrar cause site of regastrar is not open before starting job. what will happen when the work will go on. no one can check its allotment or refund states dont go for Burnpur. you will find yourself in closed cave.

good ipo

grey market prem. is Rs. 8-9

Is this registrar good... I mean in terms of timely refund and time taken to list the shares

how is this ipo??

SPA Securities report on Burnpur Cement IPO

Investment Highlights

BCL has grown at a CAGR of 41% in the topline; 94% at EBIDTA level & 96% in the bottomline in the last three years.

Investment rationale: Company is setting up an integrated clinkerisation and cement grinding plant of 800 TPD expandable to 1600 TPD in Hazaribagh, Jharkhand. BCL’s has focused on under developed areas of Eastern India. BCL has the locational advantage & government subsidies. Company has entered into a MOU with the government of Jharkhand, whereby the government will extend the assistance for promotion and establishment of the proposed project of the company. The company has a wide distribution network in Eastern India.

Concerns are: Limestone for clinker shall be obtained from JSMDC for which mining agreement is yet to be entered. Low capacity utilization. Non-availability of clinker and bottlenecks in the production process. Low installed capacity does not have any economies of scale. High debt post expansion and huge equity base would be EPS dilutive.

For the quarter June 2007, the company recorded a topline of Rs 7.27 crore., operating profit of Rs 1.04 crore. & a PAT of Rs 0.36 crore. translating to EPS of Rs 1.28 (annualized) & RoNW of 9.24%

Valuation: The stock is currently available at a P/E of 45x of its Post-issue EPS of Rs 0.27, which is expensive vis-à-vis its peers. On EV/EBIDTA, it is valued at 19x which too is very expensive when compare to its peers, which are trading in range of 11-14x EV/EBIDTA. BCL posted OPM of 12.80% & NPM of 4.36% in FY07, whereas its peers have posted an OPM in the range of 17% to 36% and NPM in the range of 11% to 21% in the same period.

BCL have lowest profitability among its peers mainly due to the high purchase cost of clinker. We are of the view that margins will increase only after the current expansion is completed i.e. in October 2008. Moreover, this being very small company in terms of revenue as well as market-cap, liquidity and institution participation will be a major disadvantage. Hence, we recommend ignore the issue.

Hi!

Anybody tell me how to check the Fixed Price ISSUE
Subscription. NSE & BSE will give only on Book Building Live.

Thanks

Hi!

Anybody tell me how to check the Grey market Premium for
IPO? Is there any website?

Please Reply

Burnpur Cement to invest Rs 10k cr over the next 7 yrs

KOLKATA: Asansol-based cement maker Burnpur Cement has drawn up plans to invest Rs 10,000 crore over the next 7-8 years. The company plans to increase cement grinding capacity from the current 0.3 million ton-nes per annum (mtpa) to 10 mtpa, foray into steel manufacturing and real-estate business.

Announcing this at a press meet here on Monday, Burnpur Cement’s vice-chairman and managing director Ashok Gut-gutia said the group may undertake diversification activities through separate companies. “The idea is to expand into related areas to achieve economies of scale. However, the details are yet to be worked out,” he said.

The group is already setting up a 1 mtpa cement grinding unit and clinker plant at Jharkand at an outlay of Rs 121 crore for the first phase. It also plans to expand capacity at its grinding plant in Asansol from 0.3 mtpa to 1 mtpa. “Additional cement grinding plants will be set up in Bihar, Uttar Pradesh and Nepal to increase capacity to 10 mtpa,” said Mr Gutgutia.

“Currently, we are able to run the Asansol plant at about 55% capac-ity utilisation since clinker supply is too erratic. This also takes a toll on our margins. The proposed clinker plant at Jharkand will help us to cut down cost of production by nearly 30-35%,” Mr Gutgutia said.

Burnpur Cement is also setting up a 50 MW power plant in the second phase of the Jharkhand project. “This will entail an investment of about Rs 250 crore. For the moment, we have entered into an agree-ment with Damodar Valley Corporation to supply power to the plant,” said Mr Gutgutia. While the Asansol plant now manufactures portland slag cement, the proposed Jharkhand unit will produce ordinary portland cement and portland puzzolana cement.

“Once we expand our product portfolio, we can then aim for a pan-India presence,” Mr Gutgutia said. The company primarily sells its cement in West Bengal, Jharkand and Bihar.

I have already applied forthis issue worth 96,000.00