D B Corp Limited IPO Message Board (Page 18)

I want to take shares of your corpration so piease send me details and foams

Ravi, Bangalore
OR
Any Expert

Please explain ?

Rights Issue of Infomedia 18 Ltd.(509069)

Issue of 3 (THREE) Equity Share of Rs.10/- each for cash
at a premium of Rs.23.50/- per share on rights basis for
every 2 (TWO) existing fully paid up equity shares of
Rs.10/- each held.

Currently it is trading at Rs.68.40 as on 11 Dec 2009,

1) Am I correct that infomedia is giving (additional) 300 shares if I have Already 200
2) The cost of that 300 shares will be Rs10500/-
3) Can I sell all that (200+300) at market rates? At 68.40
4) Why the company has decided a value of 33.5 when their
shares already trading at 68.40

what future of DB corp, compare print media other like as HT & DJ IPO was 450-550 but are runing 135-140. Invester money how much safe in this sector.

@Sreedhar: What price do you expect DB Corp to list ?
How much EPS do you expect for FY10,11?

@Vishal,
I am comfortable with the valuations of DB Corp.On forward basis it is cheaper compared to Deccan chronicle & HT media.You have mentioned that High profit margin is due to exceptional fall in newsprint prices.The newsprint price for near teem 4 weeks is $499 per tonne compared to 52 week average of $588 per tonne.Further more for the period mentioned(i.e half year ending september 2009),the average was $600 per tonne.the newsprint prices were least in the months of aug,sep,october 2009 and it was around $450 per tonne,recently it has moved up to $500 which is still $100 less than 6 months average of $600.Considering this the best quarte will be oct-december 2009 as the newsprint rates were the lowest in this period & rupee appreciated 10 percent against the dollar compared to april1-30 september 2010 period.So any rise in newsprint cost will be offset by appreciating rupee & Since 75 percent of its revenues come from advertising and the fact that it is the second most read newspaper in India & also with economy poised to grow more than 9 percent,It will capture most of the advertising revenue spend by the companies & hence is in a better position than its peers & should enjoy a premium to other newspapers.

Note:Initially I had thought to skip this issue but decide to do further research myself before skipping the issue .I had made 2 full applications in CoxnKings & did not withdraw my application even when the issue was subscribed less than 1 time in retail as I was confident about the company valuations.The only other issue I applied was OIL india .I skipped other issues including JSW & Godrej properties as they did not offer any value over its peers.
Sreedhar

Subscribe to the IPO the promotores are very strong ...moreover problem in one state doesnt cripples all .

After going through all these comments, I think not to subscribe to this issue. See u all in some better companies.

pls suggest me i would apply or not i think not to apply in it. if yes give reasons

the issue has been steeply valued. Comparing its pe with rivals like deccan chronicle etc shows that no value is left for listing.
Even with these fundamentals the issue might list with 10% gains. But the risk of losing money is more. So i would suggest not to apply.

confused as to whether apply or not&so may not apply? finally.

how many rupees to be invested for applying one lot 6300 or 6360?

very very good issue

I THINK IT WILL BE GIVE GOOD PERFORMANCE

Dear Friends,

My homework is based on capital market, sharekhan & IPO prospectus.

Valuation from Capitalmarket.com>>>>>>>>>>>
DB Corp has set a price band of Rs 185 to Rs 212 per equity share of Rs 10 face value. At the lower band of Rs 185 per share, the P/E is 17.6 times the annualised consolidated EPS of Rs 10.5 for the half-year ended September 2010 and 70.4 times the consolidated EPS of Rs 2.6 for the fiscal ended March 2009 (FY 2009). At the upper price band of Rs 212 per share, the P/E will be 20.1 times the annualised EPS for the half-year ended September 2010 and 80.7 time the EPS for FY 2009. Considering the past track record, the first half performance looks to be exceptional. The first half operating profit margin (OPM) of 32.9% is way above the OPM of 12.7% to 20.1% achieved in the last four years. The high OPM is mainly due to the sharp fall in newsprint costs due to exceptional fall in newsprint prices. As newsprint prices have already gone up and this kind of margin is not sustainable. Hence, it is not proper to annualise the first half EPS and arrive at P/E. Comparable player Jagran Prakashan is currently trading at P/E of 39 times FY 2009 EPS as against which DB Corp is offering its shares at P/E of 70.4-80.7 times.

NOW TO JUSTIFY HALF YEAR RESULT, I HAVE CALCULATED BOOK VALUE OF PEER GROUP & DBCORP ( DATA TAKEN FROM IPO PROSPECTUS & SHAREKHAN )

DB CORP P/BV = 11.87 ( @ 212 RS )
HT MEDIA P/BV = 3.77 ( @ 145 Rs )
DECCAN P/BV = 3.28 ( @ 156 Rs )
JAGRAN PRAKASAN P/BV = 6.61 ( @ 123 Rs )

HENCE I CAN SAY ISSUE IS STEEPLY PRICED.

THERE COULD BE LISTING GAINS, BUT I M NT GONNA SUBSCRIBE TO DB CORP.

Regards,
Vishal

Dear Saharanpuri,
Will offload half the shares near 500 & hold the rest.When the market goes down in January after the interest rate hike I will buy back them.This is my strategy.Regarding DB corp,I will trade in HTMedia,Jagranprakasan & Deccan chronicle before the listing of DB corp .See how Thomas Cook rose from 63 to 73.This way we can keep our money from getting blocked & get the gains which we wish to gain in DB Corp with less risk.Similar is the case with Godrej properties.I will trade in real estate companies which are cheaper than Godrej properties before the listing.

it is understood that the company in it's prospectus has declared heavy losses in the group companies and in one case more than Rs. 100 cr. loss in the last year. what should be understood from this information? i would like to b advised in the light of this information abt the prospect of dbcorp ipo.

I would say rather save money now and be patient. There will be some very companies for sale early next year.

@mukesh, sometimes you get more confused with opinions here as in CNK.Do you really think DB IPO will give profits.The valuations of Deccan Chronicle would seem cheaper PE12 FV2 price:150 while PE of DB would be at 20or more??

HI ALL

CHECK 2DAY SANDESH NEWS PAPER AHMEDABAD PRINT, SOMEBODY HAS FILE A LEGAL APPPLICATION IN LUCKNOW COURT AGAINT DB CORP PROMOTERS.

don't invest in this ipo

valuation expensive than its peer companies

LOOK FOR HT MEDIA AND DECCAN CHRONICLE

ADVANTAGES OF HT MEDIA
1-BIG MEDIA HOUSE
2-NEWS PAPER IN BOTH LANGUAGES(HINDI & ENGLISH)
3-PAN INDIA NETWORK
4-BUSINESS NEWSPAPER(I-MINT)
5-JOB PORTAL- WWW.SHINE.COM

ADVANTAGES OF DECCAN CHRONICLE
1-BIGGEST REGIONAL NEWSPAPER
2-VERY POPULAR IN ANDRA PRADESH
3-ANDRA BHOOMI, FINANCIAL CHRONICLE,ASIAN AGE(3 NEWS PAPER)
4-OWN IPL CRICKET TEAM-DECCAN CHARGERS