Equitas Holdings Limited IPO Message Board (Page 93)

thats why i say good days come for ipo market

Here comes "The Village Jester" ... Say Hello everyone !!!

Mehul ji.. rehne do na... everybody can see your game!!

what is next ipo after equitas ?

LOL

i have assumed 44 crores will be outstanding share and growth rate between 30% to 15% and margin of safety of 30% and discount rate of 12% i still get good numbers for a sector with is growing at 40% i get a Intrinsic Value per share at       Rs. 153.3 which 43 above the the issue price of 110. IMO this is a good issue to apply for max lot for a good return both short term and long term. With additional capital and small banking licence we could see more growth then the assumed numbers....

Initial Cash Flow:      $1,06,60,00,000       2015 NP            
                        
Years:      1-5      6-10            
Growth Rate:      30%      to 15%            
                        
Terminal Growth Rate:      5%            Discount Rate:      12%
                        
Shares Outstanding:      44,00,00,000             Margin of Safety:      30%                        
                        
Year      Flows      Growth      Value      
1      1,38,58,00,000       30%      $1,23,73,21,429       
2      1,80,15,40,000       30%      $1,43,61,76,658       
3      2,34,20,02,000       30%      $1,66,69,90,764       
4      2,92,75,02,500       25%      $1,86,04,80,763       
5      3,65,93,78,125       25%      $2,07,64,29,423       
6      4,57,42,22,656       25%      $2,31,74,43,553       
7      5,48,90,67,188       20%      $2,48,29,75,235       
8      6,58,68,80,625       20%      $2,66,03,30,609       
9      7,90,42,56,750       20%      $2,85,03,54,224       
10      9,48,51,08,100       20%      $3,05,39,50,954       
                        
                        
Terminal Year      $9,95,93,63,505                   
                        
PV of Year 1-10 Cash Flows:                  $21,64,24,53,613       
                        
Terminal Value:                  $45,80,92,64,316       
                        
Total PV of Cash Flows:                  $67,45,17,17,929       
                        
Number of Shares:                  44,00,00,000       
                        
Intrinsic Value (IV):                  $153.30       
                        
Margin of Safety IV:                  $107.31       
                        
What Percentage of IV comes from                   68%      
the Terminal Value:                        

44 Crore shares is gross overestimation ...

Take a more realistic number ...... 33.48Crore Shares

If we based the calculation on outstanding shares at 33 the share looks more attractive Rs 200 Plus if the issue price is 110 then this is a steal at these price let wait and see what price we get

Initial Cash Flow:      $1,06,60,00,000                   
                        
Years:      1-5      6-10            
Growth Rate:      30%      20%            
                        
Terminal Growth Rate:      5%            Discount Rate:      12%
                        
Shares Outstanding:      33,47,98,213             Margin of Safety:      30%
Debt Level:                        
                        
Year      Flows      Growth      Value      
1      1,38,58,00,000       30%      $1,23,73,21,429       
2      1,80,15,40,000       30%      $1,43,61,76,658       
3      2,34,20,02,000       30%      $1,66,69,90,764       
4      2,92,75,02,500       25%      $1,86,04,80,763       
5      3,65,93,78,125       25%      $2,07,64,29,423       
6      4,57,42,22,656       25%      $2,31,74,43,553       
7      5,48,90,67,188       20%      $2,48,29,75,235       
8      6,58,68,80,625       20%      $2,66,03,30,609       
9      7,90,42,56,750       20%      $2,85,03,54,224       
10      9,48,51,08,100       20%      $3,05,39,50,954       
                        
                        
Terminal Year      $9,95,93,63,505                   
                        
PV of Year 1-10 Cash Flows:                  $21,64,24,53,613       
                        
Terminal Value:                  $45,80,92,64,316       
                        
Total PV of Cash Flows:                  $67,45,17,17,929       
                        
Number of Shares:                  33,47,98,213       
                        
Intrinsic Value (IV):                  $201.47       
                        
Margin of Safety IV:                  $141.03       
                        
What Percentage of IV comes from                   68%      
the Terminal Value:                        

can some give me total outstanding share post issue even a ball park figure what to work out DCF thank u in advance

Yep...DDM is better way of modelling for BFSI...spread is high IMO to compensate for the higher cost of borrowing and typically higher risks involved and consequentially higher NPA''s vs typical banks...2008 taught how misleading P/B can be...completely agree!

But yes...valuation techniques aside...I am personally very hopeful about this one! Fingers crossed...

here is the link to stern school paper on valuation of BFSI http://people.stern.nyu.edu/adamodar/pdfiles/papers/finfirm09.pdf if anyone interested can workout and help the forum as the right value of Equitas

Chittorgarh Mod the financial you have put out equitas is wrong pls correct the info

u have taken unconsolidated data the correct figure is consolidated data

Equitas
GMP 10.75 -11.25

Kiya karu eqiitas ma...getting 1000 per application sell kaar de ... open lagau...pls respond

Ahmedabad what is rate of apllication

lets us watch last day qib portion before applying

Dhakan!!!
Mr. Alia Bhaattt

I want to sell my 7 applications in gmp any one tell me the exact rate per application of equitas

will have different rates based on lot size given the size of the issue

April 04, 2016 – Anchor Investor Bid/Issue Opens
April 05, 2016 – Public Bid/ Issue Opens
April 07, 2016 – Public Bid/Issue Closes
April 13, 2016 – Finalisation of Basis of Allotment
April 18, 2016 – Unblocking of funds from ASBA Account
April 20, 2016 – Credit of Equity Shares to demat accounts
April 21, 2016 – Commencement of Trading on BSE/NSE

on page 732 Red herring the info is available and eagle eye is 100% correct may be technically she could have said On or about with dates as it is mentioned in Red herring....

The unusually long time frame for listing is due to Holidays on :

Thursday 14-Apr-2016 Dr. Baba Saheb Ambedkar Jayanti
Friday 15-Apr-2016 Ram Navami
Tuesday 19-Apr-2016 Mahavir Jayanti

hdfc security , stock holding corporation of india are best brokers and bad days gone from ipo market with equitas coming

I am going to send an email to myself oh look i have received an email....... Mehul ur very excited ur exuberant is full of energy, excitement, and cheerfulness.... However to be successful in a field u need a cool head not excited heart......

Any good broker in ahmedabad ??

i want to open some accounts....

mail me on chits2911@yahoo.com

jigar h shah
Religare Securities Ltd
303,Medicine Market ,Opp.Kochrab Ashram,
Paldi Cross Roads,Ahmedabad -380 007
5128@religare.in

provide ur contact number on
5128@religare.in

annualised EPS would close to 6 giving a PE of 18 making this a very attractive compare to peers plus small bank license will reduce it cost and increase margin... plus flow 760 cr will help to increase it business. After IPO it will be in better position to increase both bottom line and top line.

This issue apply with full force if RII issue is not full subscribed given the size of the issue with close to 770 crores for RII meaning more then half million lots so good time for RII

septaji sensex go down will it impact equitas listing price ?

It does matter however if the issue is priced right then listing will be positive

muje Equitas ki 10 application sale karni he ahmedabad me....ASBA ki process kya he..me SBI bank se online form bharta hu.....muje application kese sale karni hogi....kya karna hoga.....plz saggest me

nice info eagleye as per my view i wait for 5 april hahaha

http://www.edelweissfin.com/FinancialServices/CapitalMarkets/InvestmentBanking/Prospectus.aspx

RHP is dated 23rd March 2015

Equitas Holdings Ltd is all to become the first listed small finance bank (SFB) in the country, as the company launches its initial public offering (IPO) on 5 April, according to three people aware of the development, who requested anonymity.

The IPO will see Equitas and its investors sell shares worth a little over Rs.2,200 crore, said the first person mentioned above.

Equitas is likely to price its shares in the range of Rs.109-110 per share, said the second person.

At Rs.110, the upper end of the price band, the share sale will value the company at a price-to-book value (PBV) multiple of about 2.2 times, he added.

PBV multiple is a ratio used to value financial institutions.

The share sale will close on 7 April.

On 16 March, Mint had reported that Equitas Holdings was planning to launch its IPO in the first week of April.

The Equitas spokesperson was not available for comment at the time of filing the report.

Chennai-based Equitas Holdings’s share sale will see several existing foreign shareholders trim their holding as part of the Reserve Bank of India’s (RBI) directive on foreign ownership in SFBs. Foreign shareholders held 93% of the equity in Equitas as on 31 March 2015, according to information available in the company’s draft IPO documents filed in October.

Foreign investors that are selling shares in the IPO include Sequoia Capital, World Bank arm International Finance Corp., Dutch development finance institution FMO, Helion Venture Partners, Aavishkaar, India Financial Inclusion Fund, Westbridge Ventures, Lumen Investment Holdings and Aquarius Investments.

Collectively, these investors hold a 67.53% stake in the company.

Equitas founder P.N. Vasudevan, who owns 3.17% stake in the firm, will also sell a part of his holding, according to the prospectus.

The company received approval for its IPO from capital markers regulator Securities and Exchange Board of India (Sebi) on 29 December.

Equitas’s revenue increased 56% to Rs.755.9 crore in 2014-15 from Rs.483.5 crore in the previous year, data from the company’s draft IPO filings show. Last fiscal, the company reported a profit of Rs.106.6 crore, an increase of 44% over the previous year’s profit of Rs.74.1 crore.

The company disbursed fresh loans of Rs.3,606 crore in fiscal 2015.

Another SFB licensee, Ujjivan Financial Services Ltd, also plans to tap the primary markets. Ujjivan filed its draft prospectus with Sebi on 31 December and received regulatory approval last month. However, the company is yet to finalize the launch date for its share sale.

Last month, Ujjivan raised Rs.312 crore from domestic investors in a pre-IPO placement round to convert itself to a small finance bank from a micro-lender. About 33 domestic investors, including institutional investors such as HDFC Standard Life Insurance Co. Ltd, Shriram Life Insurance Co. Ltd and Bajaj Allianz General Insurance Co. Ltd participated in the round.

The pre-IPO placement was done at a PBV multiple of 2.1 times, Mint reported.

So far this year, five companies have raised approximately Rs.2,385 crore through the IPO route.

Caveat Emptor

FIIs are not allowed to participate in this IPO