Galaxy Surfactants Ltd IPO Message Board (Page 5)

what companies we can compare it with.
what listing can be expected.

Madhur,
Question 1 is difficult to answer becos it will take lot of space.
2)Those junk issues in which HNI susbscribe well will have good retail subscription.
3)Galaxy retail subscription will be less.No grey market activity is taking place.

Can any one tell me grey market premium?

DeAr all,
I too strongly believe that Galaxy is expensive 340 @ PE >10 in current market scenario and poor listings. So, Im going to apply for 2 lakh applicaion @325. as I will apply through ASBA, there would not be any loss of interest even though I dont get any allotment. Now a days, investing in secondary markets or Gold and silver looks to be better option than in IPO/FPO. BIG THANKS TO SEBI FOR ASBA.

Book your profit in SKS Microfinance because now its over valued and you will see high selling pressor on monday.
place your selling bid and and on monday see price will hit his lower band. so wait and watch

The only interpretation I have for zero subscription in Galaxy on the first day is that the promoters are ethical and are not trying to manipulate the subscription. Of course, most people may not want their money blocked for 5 more days (weekend plus 3 days) than normal.

I have heard from independent sources (a very close friend of the promoter) that Gira (G Ramakrishnan, as he is fondly called) is very honest and sincere person. Now that does not translate into profits. But at least, you are not playing a game where the odds are against you on all counts.

14th May, 2011.

I am not very comfortable on the Galaxi Surfactants IPO for the following reasons{

a) P.E. ratio is higher, much higher than the market average for chemicals, as rightly pointed out by Tulsian;

b) All the 4 Directors, including the independent Director, are all 55 or 56 years old. There is no young, therefore creative talent at the Board level;

c) The Mauritius link inspires negative thoughts and fears.

It is better to avoid this IPO.

N.Narasimhan

Galaxy Surfactants raises Rs 30.24 cr from anchor investors
Source : Moneycontrol.com

Surfactants and specialty chemicals manufacturer Galaxy Surfactants has roped in anchor investors for its 59.3 lakh equity shares initial public offering on May 12 - one day before the issue opens for subscription.

Company has received commitment of Rs 30.24 crore from anchor investors as against allocation of 8.89 lakh equity shares at higher end of price band of Rs 325-340 a share.

ICICI Prudential Life Insurance was the major investors in anchor book, with getting more than 5 lakh shares. Goldman Sachs India fund and Arohi Asset Management were other anchor investors.

The issue size will be Rs 192.72 crore at the lower band and Rs 201.62 crore at the upper band. The company intends to utilize the issue proceeds partly towards funding the capital expenditure of its step down subsidiary Galaxy Chemicals (Egypt) S.A.E, through investment in its subsidiary, Galaxy Holdings Mauritius Limited (GHML).

The Company would also be funding the capital expenditure for setting up a new manufacturing facility at Jhagadia, Gujarat and towards expanding the capacities of its existing manufacturing units at Taloja and Tarapur. The issue will close on May 19.

Though CRISIL has given 4/5 rating, it is strange that Galaxy does command any GMP !

whether we should apply for it or gear up for SAIL(in june) and ONGC(in july)FPO

GALAXY SURFACTANTS IPO

AS PER S.P .TULSANI VIEW THE IPO IS NOT APPLING AND AN VALUE OF RS 300 WAS CORRECT FOR THE COMPANY
While other side one analist on tv said that rs 280 price was correct for the ipo and that the companys plan for . fund the capital expenditure of company's at Egypt,was an set back as there are lot of problems in Eqypt
wait for some other views from board members

by S.P.Tulsian

No shine to this star:::
At the upper end of price band at Rs. 340 per share, company is making fresh issue at PE multiple of 10.5 times based on its FY11 expected earnings, which is on the higher side for a chemicals company operating in mid-single digit margins. The company is undertaking significant capacity expansion over the next 18 months, but an IPO price of Rs. 300 per share would have been reasonable, considering the current lack-lustre state of primary markets and subsequent poor show on listing of several recent IPOs. Even in the secondary market, many identical players are available at a PE of 6 to 9 times. Upper band of Rs. 340 looks to be the expected secondary market price after 3 months, thus offering no incentives to apply in the IPO.

Galaxy Surfactants IPO opens; should you subscribe?

Brokerage houses are bullish on the issue but Investment Advisor SP Tulsian has recommended avoiding the issue.

"The company is undertaking significant capacity expansion over the next 18 months, but an IPO price of Rs. 300 per share would have been reasonable, considering the current lack-lustre state of primary markets and subsequent poor show on listing of several recent IPOs. Even in the secondary market, many identical players are available at a PE of 6 to 9 times. Upper band of Rs. 340 looks to be the expected secondary market price after 3 months, thus offering no incentives to apply in the IPO," Tulsian said.

KR Choksey believes GSL is poised for strong growth considering its rich product profile, marquee clientele and overall growth in the home & personal care segment coupled with capacity expansion plans already in place. "We recommend investors to subscribe the issue with a long term investment perspective," the firm said.

"Galaxy’s revenues from FY08-10 have grew at a CAGR of ~29% with the end user industry (personal care segment) growing at ~10% during the same period. Hence, with the personal care expected to grow at 15% CAGR from FY10-15E we believe the Galaxy’s revenues would witness robust growth. Also, with the ramping up of existing capacity and expanding through other Greenfield operations the company would maintain its market leadership by successfully meeting the rising demand. The company’s turnover and profits for FY11 (annualized) stand at Rs 859 crore and Rs 57.1 crore respectively with an EPS post issue at Rs 24.1. At the issue price of Rs 325-340/share the stock would be trading at a P/E of 13.5-14.1x its FY11E EPS of Rs 24.1; hence valuation seems justified," ICICIDirect.com said in its report.

Mehta Equities too recommended subscribing the issue. "India as well as in developed countries, there is a gradual shift in consumer preferences for natural ingredients-based FMCG products. This is a positive for GSL which mainly focuses on natural ingredients-based surfactants for personal and home care products. While globally GSL is a small player, it has a dominant position in the Indian market with more than 60% market share in its range of personal care performance chemicals."

"On overall valuations parse at the upper band of the price Rs.340,the stock trades at 14x on its FY11E earnings with EPS of Rs 24.1 which is high as compared to its peers domestically and globally. Strong growth in the domestic FMCG market and GSL ability to leverage its dominant position has enabled its domestic revenues to grow at a strong pace. With the above rationales we recommend to invest in this IPO," Mehta Equities said in a report.

WHY NOT ANY GREY MARKET ACTIVITY SEEN HERE.

oR WE CAN AVOID? PLEASE SUGGEST SO WE CAN USE MONEY IN PFC.

Dear Gem,
Pardon me for reacting too late. Just logged in and saw previous posts.Issue has already been discussed by fellow boarders in detail.
It's all ur decision whether u post or not in future.
Wanna say u thanks for ur quick and timely replies u gave to my quries.Will feel happy if u continue posting.
Have a nice day and great future.

Before Applying in this issue,please think 100 times seeing the fate of all the recent listings

dont wait for gmp .use your sense .this ipo will list at 548 .muthoot gmp was 35 now at 168.

What is the grey market premium, I am looking forward to invest, see recommendations from dalal street, mehta equities etc

http://www.dsij.in/Home/IPODetails/tabid/763/ArticleID/2140/Galaxy-Surfactants-Buy.aspx

http://www.mehtagroup.in/upload/518_Msearch%20IPO%20Flash%20Galaxy%20Surfactants%20Ltd%20IPO%20May%202011.pdf

GALAXY SURFACTANTS LTD IPO IS VERY EXPENSIVE ISSUE. IT WAS POST ISSUE PE NEARLY 15 . SO IT WAS CALLED HIGH PE .SPECIALITY CHEMICALS INDUSTRY AVERAGE PE 10 BELOW .SO IT IS I THINK TRADE DISCOUNT RS 60 .RECENTLLY MUTHOOT FINANCE RATING 4 .BUT IT WILL TRADE DISCOUNT. THIS IS ALSO 4 RATING . THIS IS MY PERSONAL OPENION . NEXT APPLY OR NOTAPPLY YOUR INTEREST.

Hey friends...I just came across this report by Mehta Equities. which recommends to subscribe in Galaxy Surfactants IPO..u can copy the below link and view the report..

http://www.mehtagroup.in/upload/518_Msearch%20IPO%20Flash%20Galaxy%20Surfactants%20Ltd%20IPO%20May%202011.pdf

I am investing

What say guys?