D B Corp Limited IPO Message Board (Page 17)

Dear Sreedhar,

Nice to know. Lets see wht Ashoka buildcon has to offer to investor.

New Issue Ashoka buildcon,
CRISIL has assigned a CRISIL IPO Grade 4/5 to the proposed IPO of Ashoka Buildcon. This grade indicates that the fundamentals of the IPO are above average relative to the other listed equity securities in India.
The grading reflects the company’s dominant position in the build-operate-transfer (BOT) road space and its established track record, with most of its projects having witnessed timely completion. The grading has also taken into consideration the strong management background with domain expertise, robust industry prospects due to significant investment expected in roads and power transmission and distribution (T&D) segments, proven execution capabilities in the engineering procurement construction (EPC) segment, integrated business model and adequate corporate governance practices. The grading also reflects the company’s strong order book of Rs 17,850 million as well as healthy revenue growth potential from the BOT segment.

About the company and the issue

Ashoka is in the business of undertaking EPC contracts in roads, bridges, commercial buildings, industrial buildings and power T&D contracts. Apart from building roads and bridges, it also operates them on a BOT basis. Promoters, Ashok Katariya and Satish Parakh, and their groups, currently own 84.4% of Ashoka.

Ashoka has 16 operational road projects (1,088 lane km), four projects under construction (1,423 lane km) and third-party orders worth Rs 12,673 million. The company has recently ventured into EPC – power T&D contracts, where it has outstanding orders of Rs 9,682 million from Maharashtra State Electricity Distribution Company.

Ashoka is planning to raise Rs 2,250 million from the IPO. Of this, Rs 700 million would be utilised for purchasing capital equipments and for working capital requirements and Rs 1,150 million would be used to prepay the loans of the company and its subsidiaries. The balance would be utilised for general corporate uses.

-----------Source-moneycontrol.com------------------------
Hope this issue will leave something for the retail investors.

GODREJ ISSUE WAS PRICED AT HIGH RATE BUT AFTER SUBCRIBTION OF THE ISSUE IT IS PRICED AT RS 490 INSTEAD OF RS 530 IT WILL GIVE LISTING GAINS

Medium/Long Term investors could expect appreciation (target Rs.305) if the reasons for improvement in H1FY10 results continue going forward.

Risk is volatile newsprint prices and its impact on overall profitability of the company.

All the media companies have done well in H1FY10 as compared to FY09. Fall in raw material costs
(primarily due to the softening of newsprint prices in both the domestic and international newsprint markets as well as reduction in raw material consumed due to reduction in print orders and modifications in paginations), fall in operating expenses (due to decrease in the prices of ink and plates and other inputs as well as due to reduction in print orders and modified paginations) and a rise in Advertisement income (due to growth in ad-spends led by election, IPL 20-20 and ICC 20-20 World Cup 2009) all led to a better
H1FY10 for DBCL. Whether these triggers will continue going forward is a moot issue.

DISCLAIMER: Take informed decision on the IPO after independent verification & analysis. Speculating on listing price is difficult. There is a chance of listing gain partcularly if price is fixed at lower end of price band.

I am not applying to IPO. There is less upside & more downside. Risk-Return ratio is unfavourable.

Dear Investors,

Now, Government is coming with some of the IPO (Indian Public Offence) and some of the FPO (Foooolish Public Offence) to LOOT the money from Indian Public.

I think maximum of you have already invested in PSU major NHPC (Nahi Hai Public Company) and lot of you already lost but Government is not happy with only that much loss. He wants THAT PUBLIC SHOULD LOSS MORE AND MORE.

Keeping in view the above, here are the major forthcoming IPO (Indian Public Offence )/ FPO (Foooolish Public Offence) which are supposed to come in January subject to condition market will be bullish so that Govt. can LOOT at maximum level

REC
NTPC
NMDC
SJVNL

HENCE, BE READY TO BOOK HEAVY LOSSES BECAUSE NHPC HAS GIVEN VERY LESS LOSSES.

Hi ,
I suggest to skip this issue. The promotors have left very little on the table for the investors.

The brokers in Rajkot are being treated in Hotel Imperial Palace. The same hotel where the Indian Cricket team is stayinf for the upcoming one dayer.
The case in other cities cannot be expected to be different.

The Divya Bhaskar Daily was launched in Gujarar about 4 years ago. There is heavy competition among DB, Sandesh and Gujarat Samachar.
I suggest small readers to read the company profile carefully.
Whereas Dainik Bhaskar is the No.1 by readership Divya Bhaskar is the number 1 by CIRCULATION (NO.1 OF COPIES PRINTED / DISTRIBUTED).
The HIGH CIRCULATION is because of very very heavy discount on annual subscription and promotional schemes. So the subscription/distribution revenue is very low for Divya Bhaskar.

Relying too heavily on Advertising revenue seems to be a very risky strategy.

Though there may be some gains on listing the downside risks are too high. The retail investors who have lost heavyly in the recent IPOs may better avoid this IPO.
The fair value is too low to be quoted here.

One thing is clear that the stock will trade way above the fair value for quite some time.

Another risk is the FM radio business which may be near breakeven but one must note that none of the companies in FM radio business are earning big money from this segment.

Similar is the case with the electronic media (read TV Channel) companies.

Lastly DB Corp is not in a niche business to command such a heavy premium. There is no dearth of Media companies in the market to put money in.

To sum up DB Corp even at lower of the price band is very risky for the retail investors.

at present g.m.p of db corp is 9.00=10.00.here in mumbai. hactic activity is going on. so one can say game is on

@85 nobody can predict correctly what is going to happen on listing (whether the stock will go above issue price or below). These decisions are to be taken by you yourself.
If its any help to you, I am not applying in this IPO though I had made up my mind after reading Udayan Mukherjee comments that it will list between 240-250. But after reading the full detailed reports I decided otherwise.

YOU ARE GETTING COFLICTING VIEWS ON THIS IPO. Can someone really good in such matters can categorically say - apply for so many shares at so and so price?

Estimated EPS is Rs 11.70 for the current year based on EPS for the six months ended September 2009. So price of Rs 212 looks reasonable at 20 P/E since comparable companies are quoting in the P/E of 14 to 40 (mostly near high end of range). But the catch is that last year EPS was Rs 3.08 giving a P/E of 69 which is much higher than industry average. This year results are an exceptional case and the profit margin of nearly 32% achieved this year so far is not only unsustainable but will definitely could not be carried over in the future quarters as the historical profit margin has always been between 12-18%. So the decision whether to apply or not in this issue is a bit tricky.

@Verma,My pleasure

GOOD RETURN 10% MORE

Fair Value Rs.183. The IPO is pricey & leaves little on the table for listing gain. Risk-averse investors can take exposure in secondary market below Rs.125.

RISK FACTORS

The promoters and promoter group have equity interests or investments in other entities that offer related services. Group entities have been incorporated to print and publish newspapers. This can have adverse effects on operation and there is scope for conflict of interest.

One of the Promoter Group companies, Sharda Solvent Limited, was compulsorily delisted from the BSE with effect from July 2, 2004 for non compliance.

As a media company, It is exposed to exchange rate risk. Newsprint, which is an essential to printing papers, is generally priced in US dollars and many of their capital expenditures for printing presses and other machines are also priced in foreign currencies, in particular US dollars and Euros.

Volatile prices of paper, directly impact printing margins.

The company faces immense competition from Jagran Prakashn which is also present in its market such as Punjab, Haryana, Bihar, Jharkand, HP, MP & Delhi.

SREEDHAR
Thank you
Thank you
for your explanation & time taken for me

GMP 8-9 & PAR ONE LAKHS APP 1700 BUT VERY HIGHT PE 09 EPS SO INVIST VERY CUREFUL

VERY HIGH PREMIUM IPO, FOR ri @ 210. BUT FOR THE VEIW OF CURRENT MARKET INVESTER FOR ST NOT GET VERRY GOOD RETURN i.e.5-10% RETURN BUT FOR LT GET UPTO 50% RETURN.

hi can anybody project the subscription figures in retail sector keeping in view the current figures ....... can the retail sector cross 1x

Dear Verma,
As per your query,
1)correct
2)cost of the new shares will be 33.5*300=10050
3)NO.Post ex date ie on 18 Dec 2009,the share value will be 200*CMP of the share + 300*33.5 i.e{(200*68+300*33.5)/500}
4)To make the rights issue attractive ,the rights issue price is fixed at a discount to the CMP.

Sreedhar

Dear Vishal,
Thanks for the post.I have read the article but as per the comment received for the article,it was mentioned the cost of inputs like price of energy & waste paper also reduced by 50% which was not mentioned in the article.DB corp has FM channels in 15 cities which are likely to breakeven this year.As Rmedia got a bumper listing & rich valuations,I think DB may also get premium for this reason.Anyhow,I am thinking of applying for the same & hope DBcorp may set the price at 200 as has been done by Godrej properties.

Dear Sreedhar,

Read this article,
http://www.livemint.com/2009/02/03214135/Global-newsprint-prices-likely.html

Well i have mentioned tht there can be listing gains, (surely it wont be huge like COX&KINGS) but yet i m nt sure about company's forward earning, so i thought to avoid issue.

Regards,

Vishal