Electrosteel Integrated Ltd IPO Message Board (Page 25)

SJ DNT MISGUIDE PEOPLE SHAH ALLOYS HAS GONE BANK RUPT AND GONE TO BIFR 2007/2008 ME 120 KA BHAV HOTA THA EARLIER JINDAL VIJAY NAGAR STEEL CRASHED FROR RS 10 TO 2.50 RS 2.5 PAID WALA SHARES .10 PAISE ME SELL HOTA THA YE TO ACCHA HOA KI JINDAL IN CO MERGE KER LE SAME STORY WILL HAPPEN IN THE ELECTROSTEEL GUYS KEEP YOUR EARS AND EYES OPEN DNT BELIVE ON SUCH GUYS
ROSE

Listing will be atleast 15/= and thereafter it will go to 20-25 levels.

@ 83 Ananymous

see this analysis i have already given on electrosteel

read it carefully...your doubt will be cleared...!!

Regards

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47. Sj Sep 19, 2010 12:42:39 PM IST Report Spam
Bhola

Electrosteels Ltd IPO of fully owned subsidiary of kolkata based prestigous and ggod quality management Electosteel Castings looks interesting and is like betting on something with good management which is still yet to start its business. It is the best time although highly risky to bet on some project in its commisioning stage.

But when does retail inbvestors like you and me get such a good oppurtunity...to invest in a company at its installation phase....? Only PE investors and Financial Institutions get that oppurtunity.

We should thank the management that they are giving us such an oppurtunity and that too close to face value

Can you remember when you got any IPO at face value..?

Now agreed that management needs funds as they have 70% pledged shares in this subsidary that is 35% of the group electrosteel parent group. But IPO will reduce there debt and give them funds tom install thsi project.

I also agree that just that it is giving shares at face value it is good IPO. In fact many people here might be suspicious that why are they giving IPO at face value..? There is something fishy..?

But what is wrong...in that..? If the project is already started and just in inital stages hence they are giving face value.....Had it been completed and started operations do you think management would have been foolish enough to give you shares at face value

Management is saying that they themselves with high debt are taking gamble in this project and hence giving the same oppurtunity to you Bhola...

I know there quality since i am from Kolkata and i know the management quality is good

Go and see in moneycontrol there last several year performance

There book value is 48 share price at 50. They were sitting at heavy debt and losses in slowdown couple of years ago.. Every other commodity stock from Tatas to Jindals suffered in their steel business at that time. So electrosteel is no exception. But now they willl perform better and your money can double in the parent company Electrosteel Casting in next 1 year.

You know Bhola ....Yesterday i was watching Investor Summmit of ET NOW feauturing Madhu Kela Nilesh Shah Ramesh Damani Nirmal Jain of IIFL.

In that Madhu Kela gave a very interesting example of a big commodity bet he took in 2003.

Yes you will be suprised that the company name was Jindal Steel and Power

He said:

" Back in 2003 when I would have mentioned someone that Jindal name and I am investing in Jindal Steel And Power they would have seen me with irritaing looks and said that wether i was Son in law of Jindals that I was touting Jindal like chor perceived group at that time. But the fact was that I bought a company that had gone thru debt restructing and had good production capability good funds for Capex and had mines in physical assets to show. TODAY IT IS MORE THATN 20 TIMES return for me."

You should watch that programmme to where veterans like ramesh damnai who bet on Jet airways at 150 nirmal jain who betted on Hul in 2000.
It will be repated in night after 8 pm or in day 2-5 pm probably on ET now . Also wath Ramdeo Agarwal on ET Now on basics of investing and how he picked multibaggers....TELLING TO STUDENTS in Narsee munjee institute of Management.

The point i am making is Good quality Management taking a bet in a good business in growing economy and consumption growth in india should be taken a bet on...

Same is the case of ELectro Steel IPO.

1)The group is setting up a 2.2 MTPA Integrated Steel and Ductile Iron Spun Pipes project in Jharkhand. The total cost of the project is Rs 7384.00cr

2) The company has raised debt amounting to Rs 5447cr from various banks and the balance is to be funded through equity, including the share premium. The promoter group has contributed Rs 700cr towards equity.

3)The project is being set-up in technical-cum-financial collaboration with Stemcor Mesa DMCC, UAE - a group company of Stemcor, UK. So ggod investors backing the project and more funds can be bought in if required

4)The company will have a debt-equity ratio of 2.84:1.

5)The promoter group company, ECL, is in the business of manufacturing Cast Iron pipes for over four decades and Ductile Iron Spun Pipes since the last 15 years. Hence experienced management

6)Experienced Promoters. Integrated operations including captive power plants. Locational Advantages.

7)ECL has already, in place, a well-developed and established marketing network and clientele in India and abroad for DI pipes, which is proposed to be used by EIL for marketing its own production of DI pipes.

8)EIL proposes to install Captive Power Plant aggregating 150 mw, which shall steadily supply about 120 mw of power enabling to meet about 84% of the total power requirement. The balance requirement will be met from Damodar Valley Corporation, for which the necessary application has been made.


However following are current risks:

1)The original cost of the project was at Rs 5000cr and the project should have gone on stream, in Sept 2009. There is delay and cost over run.

2)The operation requires significant raw materials and non-availability of the same at competitive prices, may adversely affect results.

3)The project is still under implementation stage, there many loose ends to be tied up. The time and cost over-run will take a heavy toll on the company. There are certain uncertainties, including availability of raw materials at competitive rates. Due to high fixed cost, products pricing will be challenging.


So keeping advantages and risks in mind

This is a pure long term invetsment of 3-5 years if you want to apply in THis IPO

Market crash will not affect it coz they are still developing the project although it can be delayed in slowdown or developed economies crash or slowdown

Hence if you are looking for listing gains do not apply. Although it can be easliy manipulated as price is just 10 rupees. But why take that risk with your money when you have other great secondary markwt oppurtunities that can give you 30-40% returns in next 6 months and even ggod quality IPOS that are in plenty that can give good returns..?

So my advice it accumulate this stock in systematic inestment form. Allocate 10 percent of your total current or planned portfolio of stocks.

By in phases. At rs 10 and in stock market crash or correcting at price below 10. It can fetch you exceptional returns if held in that form for next 3-5 years. Trust me.

I have adviced same to my clients.

Regards

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One (silly) doubt: Why would a company go for IPO with Rs.10-11 offer price for a share of face value Rs.10? They do not seem to get any premium and incurring IPO costs too. Would it be because they are not able to get the capital from insiders?

There are 61 litigations against promotors.... think before investing in this ipo....

what is the proposed time to start commercial production of Electrosteel Integrated Ltd.

WHAT WILL BE THE NEAR FUTURE PROSPECT IN ELECTROSTEEL INTEGRATED LIMITED INVESTMENT?

BAHUT BADHIYA IPO HAI. SATTE KI PAKKI NEWS HAI.

hi

2300 rs. in ahmedabad.

kostak ????????????//

SJ,

THIS CO IS ALSO FROM KOLKATA..........
OUR KOLKATA USED TO BE A HUB FOR IRON & STEEL 30 YRS BACK....

NEWSPAPERS SAY THEY ARE VERY GOOD MANAGEMENT BUT THEY HAD CORPORATE GOVERNANCE ISSUE IN PAST.

pl be alert in any IPO invest afetr analsis do't gamble and waste money

hi,
For any IPO to get through, min 90% subscription of the issue size is required as per SEBI guideline. If less than 90%, IPO will be cancelled. But now if the book running lead manager is any large and reputed entity, they already arrange with the syndicate members to subscribe to this mark, and syndicate member subscribe, because the price band dicaovery is done with the consultation of them. So, very bleak chances of failure of the issue.
EIL has set its price one times to face value/ book value, because the project is under construction and no production activity or financial activity has been started, so no depreciation/ loss to the books. And also u find that its parent company ECL is also trading around one times of the book. so the price of 10-11 is fair price and people can go for this IPO. The risk is associted with the project to be completed on time, because if project be late, the debt financed interest burden will be increased on the book, and so the enterprise value. But trace record of the promoter of the company is very encouraging, so hope to be completed withing schedule time.
For listing gain, u can definitely go with this issue, because the mood of the market is very bullish, and even the pig can fly, then why not this white feather pigeon. Happy Investing.

market lot???

applly in only electrosteel for handsome listing gain

electrosteel ka production kab chalu hoga,breakeven par kab ayiga,pls reply

Hi All,
aaa
I have a dought here.

Actually how the listing happens. I mean listing means what are the shares they have given in IPO will be released for trade in market.How the gain or loss will happen on listing. Actually before the market opens nobody, nobody can place orders. In such case how the demand or supply is decided on listing. The shares will be only in IPO allotted accounts right. Then on what basis the listing gain or the drop in price will occur at the time of listing.

2)The next dought is. say X comany has 2000 shares for IPO. Only 0.5 times the issue is subscribed. Then what will happen to 50% of shares. By what means it will be released to secondary market. Or only 50% of IPO allotted share will be playing in secondary market after listing.



Please, I am very eager to hear the answers, especially LISTING(The great dought of mine).ele

Can one apply in this IPO. Is this best for applying in terms of long/listing gain.

Listing may be around 13/- and then go upto 20-21 in 2-3 days!