Dhanus Technologies Limited IPO Message Board (Page 28)

as per NSE website this IPO oversubscribed by 5.85 times till now...retail subscription also reaching 0.9 times...so huryy apply in retail as much as now...

Subscribe to Dhanus Tech for listing gains: Keynote


Dhanus Technologies, a rapidly growing communication services company, is open for subscription with a public issue of 38,35,000 equity shares of Rs 10 each through 100% book building process. The price band has been fixed at Rs 280 to Rs 295 per equity share of Rs 10 each.

The company is going to raise Rs 113.13 crore in the higher end of band and Rs 107.38 at lower band.

Keynote Capitals report on Dhanus Technologies IPO

Recommendation - Subscribe for listing gains

Dhanus Technologies (DTL) offers various services in the telecommunications, BPO and vehicle tracking system segments. Its products include V-Tel (global calling cards) and FleeTrac System (vehicle tracking system).
DTL entered the BPO segment by acquiring a small size BPO unit in Chennai in FY06. The unit has a capacity of 85 seats, which the company proposes to increase up to 500 seats by end-2007.
The stupendous growth in topline and bottomline (310% and 371% CAGR respectively during FY03-07) can however be attributed to the base effect.
The global calling cards market is dependent on the growth in the telecommunications market and number of overseas travellers, while the growth of vehicle tracking system market is dependent on the adaptability and awareness within the truck and CV owner community.
We see a huge potential for FleeTrac, given the population of trucks and CVs running on Indian roads, which may become a major growth driver for the company.
We note concerns like a short track record and low entry barriers in its business verticals. However, as these verticals are at nascent stages in India, they hold growth potential. Also, as is typical in a number of IPOs, pre-IPO placements were made to promoters, VC funds and others @ Rs75 per share in December 2006, which is at a discount of 74.5% to the cap price. Recent placements (in August, 2007) were @ Rs275 / 300 / 340, the last reflecting a premium of 15% on the cap price of the IPO.
While growth momentum may taper off going forward, we expect DTL’s topline and bottomline to grow at a healthy CAGR of 64.3% and 50.8% respectively, during FY07-09. Closest peer in vehicle tracking systems, viz., Micro Technologies trades at just 7.2x trailing earnings. However, given DTL’s presence in diversified, high growth businesses and the attractive valuation of 15.1x FY08E and 10.5x FY09E, we are of the view that investors may subscribe for listing gains.
Investment View

Growing telecommunications industry (addition of 6mn subscribers per month)

Ever increasing number of global travellers: While an estimated 19mn persons undertook overseas travel during the last 3 years, DTL sold around 0.862mn calling cards. Given that 35mn persons are expected to undertake overseas travel in FY10, DTL has just about scratched the surface of this huge market.

Huge opportunities in the BPO industry

Market for vehicle tracking system is estimated to grow from USD 6.4mn in 2005 to USD 78.2mn in 2011. This market is still in the infancy stages in India and is likely to start its growth trajectory in 2008.

Concerns include

Low entry barriers

The segments wherein DTL operates (telecards, FleeTrac) have huge growth potential but low entry barriers which are also limited to the adapting the technologies required and setting up distribution network. This can attract more players in the respective segments which may impact revenue growth and EBITDA margins.

Short track record

All its businesses have been launched during the last 3 years (telecards in 2004, BPO in 2006 and vehicle tracking systems in 2007).

While in the telecards segment, the company has much larger competitors like Reliance Communications, Bharti Airtel, and an active competitor like Matrix Cellular Services, we believe the growth of the market will leave ample room for players like DTL. As regards the BPO segment, in our view its operations will remain small-sized even after increasing the capacity from 85 seats to 500.

However, we are quite bullish on the prospects of its Fleet Tracking system which has a huge potential market from the truck and commercial vehicle owners.

Historical growth due to base effect and may taper off

Topline and bottomline grew at 310% and 371% CAGR respectively during FY03-07. We expect topline growth to taper off as the base grows, going forward.

12 PM

Total Issue Size 3835000
Total Bids Received 22440880
Total Bids Received at Cut-off Price 1671580
No. of times issue is subscribed 5.85

... full application from my side

dear king of ipo, now it is sure that dhanus will subscribe by more than 8-10 times. beuse upto 11.00am it is subscri.by 1.1 times in retail .

ECONOMIC TIMES - AVOID
BUSINESS STANDARD - AVOID
SIFY - AVOID

BUT I M GOING FOR 5 LOT. ( as out of fund )
Regards

dear s.k.t.

I fully agree with your view. I had applied for motilal and earned 28k on day one. where as in issues like everonn by investing the same amount i earned nil.so one should apply in dhanus tech. but according to my estimates it will be subscrubed 12 times in retail. power grid will be 8 times in retail.

regards

80 % EXPERTS VIEW
APPLY .

Retail investers dont want to take little risk also for eg they will apply for ipo 's like everonn ,vishal ,central bank , simplex , take solution ......& manyy more where allotment chances are very low just bcaz of huge over sub ..& ok valuation issue.
issues like dhanus ,motilal oswal are fairly priced but dont get over sub 2 much ...
here a good chance is there to make easy money.
apply apply apply .
25 % to 30 % return chances on 1st day.

persons who dont apply will spread rumours that this issue is over prices ,,,& other false statement.

at present 2 good ipos are open power grid & dhanus ppl will run after power grid so this will get less sub .
dont miss a chance apply apply apply.

R S Iyer (KR Choksey) - Apply
Dhanus Technologies is a good issue. Reliance Capital and Enam have stake in the company. The business model is very good. People should apply for the issue for listing gains as it is expected to list with 25% premium.

SP Tulsian (Investment Advisor) - Apply
Dhanus Technologies operates in three areas of business of Telecards, Teleservices/ITeS/BPO and software services and Vehicle Tracking Services.

Present equity of the company of Rs 14.11 crore, would rise to Rs 17.94 crore. EPS for FY 07, of about Rs 16, discounts present issue price by about 18.50 times (upper band of Rs 295 per share). Tulip IT, a company, growing by about 50% on topline and by 100% on bottomline, is ruling at a PE multiple of 18, based on FY 08 earning.

There have been concerns about the company, due to so many litigations initiated and pending. Even growth on topline is compromised with margins. So, post issue, the growth is likely to come at the cost of margin pressure. Main telecom business may have fall in future earnings.

Considering all these, share does not have much room for appreciation for prospective investors. Upside of Rs 350 is possible, in long term within 6 – 12 months. So investors having long term investment perspective in mind can go for it. Short term or listing gains cannot be predicted.

Valuation

The company is valued at 21.5x (on diluted equity) its trailing twelve months EPS of Rs 13.7. The company has grown reasonably well on a small base. However, the company will have to maintain its high growth on an increasing base sustaining its margins (at 33%) to justify the price commanded. We recommend a subscribe on this issue with a LITTLE risk, high return status.

APPLY APPLY APPLY DONT MISS,
RETAIL INVESTERS ARE ALWAYS AFRAID ..IN N E CASE IF THIS ISSUE IS SUBSCRIBE LOW LIKE MOTILAL 4.44 THEN THERE ARE CHANCES OF GETTING MORE SHARES .
NO AT ALL IN N E CASE IT WILL LIST BELOW 340 MINIMUM...IF U GET ATLeast 80 shares then u earn 40-50 rs /share i.e 3750.
G.M.P IS AROUND 95 RS & ABOVE CALCULATION IS DONE ASSUMING G.M.P IS 45.
U DOUBLE UR GAINS G.M.P DOES NOT COME DOWN.
APPLY DONT WORRY .

Dhanus Technologies, a rapidly growing communication services company, is open for subscription with a public issue of 38,35,000 equity shares of Rs 10 each through 100% book building process. The price band has been fixed at Rs 280 to Rs 295 per equity share of Rs 10 each. The company is going to raise Rs 113.13 crore in the higher end of band and Rs 107.38 at lower band.Valuations

At the upper price band of Rs 295 & lower of Rs280, DTL is available at a P/E multiple of 21.52x & 20.42x respectively on diluted FY07 earnings. Given the overall economic backdrop, industry segments in which DTL operates looks favorable. Considering the available information, we recommend a “subscribe” to the issue, with a view to hold.


will get decent returns on listing & short term.


issue size is very small chances of over sub due to high demand on last day.

APPLY APPLY APPLY.DONT MISS A GOOD CHANCE LIKE MOTILAL OSWAL

dear king of ipo ,dhanus in retail will subsc.by atleast 8-10.times.GMP at present is 105-115.so dont worry about dhanus and sleep well.o.k.it look like u r worrying to...much about this dhanus ipo

GREY MARKET RATES

KAVERI 12-13
DHANUS 72-75
POWERGRID 14.75-15

nJOY !!!!!!!!!

any body having experice of applying through reliance money.can i get ECS or check.

Avoid Dhanus Tech IPO: Emkay PCR

Recommendation

At the price band of Rs 280 – Rs 295, DTL is offering shares at 22.6 to 23.9x FY07 consolidated EPS of Rs 12.4 on fully diluted equity of Rs 179.4 mn and 20.4 to 21.5x FY07 EPS of Rs 13.7 on a standalone basis.

DTL has a falling profit margin for all its businesses (telecom, software and BPO). As per the management, investment in different areas of business is one of the reasons for the falling margins. On a standalone basis, telecom service’s PBIT margin dipped 580 basis points (bps) to 19% in FY07 from 24.8% in FY06 with sales contributing 56% of revenue vs 64% in FY06. Software business’ PBIT margin declined to 47.4% in FY 2007 as against 66.1% in FY06, a fall of 1,870 bps. It contributed 35% to the total revenue of FY07 vs 24% in FY06. The BPO services contributed 9% to the total revenue in FY07 as compared to 12% in FY06, with PBIT margin down by 930 bps from 71.1% in FY06 to 61.8% in FY07.

We believe that the issue is aggressively priced as compared to industry peers like Bharti Airtel, MTNL, Reliance Communications, Tulip IT Services and VSNL. We recommend an Ignore to our investors.

as per NSE website, danush tech have been subscribed 0.87 times till now...so do not worry...it will be surely oversubscribed as least 2 times

Danush tech looks interesting, GMP 100
Dhanus Technologies is a good company to buy at that price which is offering Rs 280-295. But it’s an niche, vanilla’s technology companies are not doing very well but some of the niche companies are doing well. This one makes those V-tel global calling cards but that may become a slightly more commodity kind of business with shrinking margins as we go forward.

But they are trying to get more and more into the products stream with some of their logistics management products. That is the more or the sexier part of their business and probably will even drive margins going forward.

It comes at more than 20x times trailing earnings so maybe they should have done it a bit cheaper given that they are small company. So it’s an okay company with some interesting businesses but haven’t seen haven’t gone into the fine print enough to just thump the table and say you should go out and buy it. It looks interesting

IPO closing on 12th has subscribed only 35% with retail position evoking very poor response. Avoid the issue or else lose 20-30% on listing..grey market premium is quoted by nexus of Company officials and operators...this is done just to subscribe the issue...STRONG AVOID...

TILL NOW SUB ONLY 0.34 TIMES BUT G.M.P IS AROUND 100 RS. IS IT WORTH APPLYING FOR THIS ISSUE VALUATION WISE ?????/
WHT ARE THE CHANCES OF OVER SUB ?? HOW MANY TMES IT WILL GET OVER SUB ?
GUIDE INVESTERS