Jyothi Laboratories Limited IPO Message Board (Page 20)

Just keep away from Jyoti Lab issue oterwise this will bring UJALA for them and Loss for You.

I have read a lot of negative write ups in the blog. But I think that it is not all that bad as made out to be. Investors with medium term perspective may apply. Worst case scenario is you may make a small profit but wont lost any money.

FOR FRKMMN ...........
LOOKING FOR POLL RESULTS ON WHETHER TO APPLY OR NOT FOR
THIS ISSUE VISIT moneycontrol.com. YOU CAN CAST YOUR VOTE
ALSO

anyone can say, surely when we get refund from mudra, i hav given cheque of icici bank

lets, start for poll, means in this discusion there should bea facility of making vote, either in favour oe against. so that anew commer or one can get a rough idea of percentange to subscribe or not.coz one person will praise other will not.but by polling we can get exact result, to subscribe or not

I FULLY AGREE WITH KAMAL..I THINK ISSUE WILL BE SUBSCRIBED FULLY & LISTING GAIN IS EXPECTED.HOWEVER THERE ARE LOT OF CHANCES TO GET ALLOTMENT.....SO APPLY AND MAKE UJALA IN YOUR LIFE..HAPPY INVESTING

i strickly advise to stay away from this issue.

hindu business line says invest at cut off

Risks


Despite its track record, investors in Jyothy Labs have to take cognizance of certain risks. The company has a narrow brand portfolio with Ujala and Maxo accounting for the lion’s share of its sales/profits. A foray by any large FMCG rival into either of these categories could hurt the company’s earnings significantly. The company has traditionally contained its adspend-to-sales ratio in the 9-10 per cent range; but a spike may be unavoidable if a battle for turf ensues. As a relatively small player in the FMCG business, the company may lack staying power, should a large MNC or domestic competitor attempt to break into one of its key categories. Second, the manufacturing-led model will lead to less flexibility in the cost structure, should the demand environment slow down.

However, the company’s brand portfolio and its extensive distribution network would make it a desirable acquisition candidate in the event of heightened competition.

Offer details: The offer for sale seeks to raise Rs 275-306 crore at the two ends of the price band and the proceeds will go to a set of institutional investors. There is no equity dilution resulting from the offer, promoters will continue to hold 69 per cent of the post-offer equity.

do go for jyoti ipo , othersise you will be sad for one year beacuae u will get 100 % allotment

I dont vouch any of the views...Its just a review for the FYI of all readers....

Jyothy Labs (IPO): Invest at cut-off

http://www.thehindubusinessline.com/iw/2007/11/25/stories/2007112550871100.htm

Ujala banane wali company aapke jeevan mei andhera kar degi... DONT APPLY.. OVER VALUED.. Use the money for Mundra to buy on listing... Thanx

Reason this issue has not been subscribed so far is very simple. Refund from Mundra Port has not so far been received. As and when it comes, people will definately go for it. See last day. Evert expert is saying 20% listing gains. Something is better than nothing.

apply for this share expected premium two be around 300-330 per share so go and apply for it

agar OIB 100 TIMES SUSCRIB KAREGA TO SUB BHAG BHAG KE APPLY KERAGA,SO WAIT & SEE

STAY AWAY FROM THIS ISSUE.
HIGHLY VALUED / OVER PRICED ,
I DONT UNDERSTAND WHY CERTAIN EXPERTS HAS GIVEN APPLY VIEW TO THIS ISSUE .
MAY BE U CAN EARN HARDLY 100-150 / SHARE ON LISTING BUT EVERY CHANCE TO LOSE THE SAME AMT IF NOT SUB MUCH .
CHANCES OF MORE SHARE ALLOTMENT IS POSSIBLE IF NOT SUB
MUCH .SO ...BETTER SLEEP WELL AVOID & WAIT FOR RPL
WHICH IS
COMING SOON .
BEST OF LUCK ,,,,,,,,,,,

AVOID , AVOID , AVOID , AVOID
It is absolutely very expensive issue. Better To avoid it !!!!!!!!!!!!!!!!!!!!!!!!

i think sushil advice is the best, thanks.

dont shout just wait and watch what QIB & NII do. after that we shall take a desicion,

Jyothy Laboratories: IPO Highlights

CM RATING 44/100
Promoted by first generation entrepreneur M.P. Ramachandran, Jyothy Laboratories’ key brands are Ujala, Maxo, Exo, Jeeva and Maya. The product line of Ujala consists of fabric whitener, fabric stiffener and washing powder. Maxo’s product line consists of mosquito repellent coils, liquid vapourisers and aerosol sprays, while Exo’s product line includes dish wash bars and liquid with an anti-bacterial agent, dish wash powder and dish scrubbers. The company produces personal-care products under the Jeeva brand and markets air-freshening incense sticks or agarbatti under the Maya brands. It has also entered into joint ventures to market and distribute coffee and spiritual dhoops.

Ujala fabric whitener and Maxo mosquito repellent coils occupy leading position and have significant market shares in their respective product segments. Ujala fabric whitener enjoyed a market share of 68.9% by value and 53.5% by volume, while Maxo coils had a market share of 19.7% by value and 22.1% by volume in India in the year ended June 2007(FY 2007). Exo dishwashing bar captured market share of 15.5% by value and 15.2% by volume in south India in this period.

Jyothy Laboratories manufactures its products through 21 manufacturing facilities in 14 locations in India. Eight of these are tax-efficient units. The company is going to establish new tax-efficient manufacturing facilities in Uttaranchal. It is also going to invest Rs 17 crore in its two plants in Jammu and Guwahati to produce Maxo products currently outsourced.

The initial public offering (IPO) is of 44,30,260 equity shares of Rs 5 each through an offer for sale for cash. The price is to be decided through a 100% book-building process at the price band fixed between Rs 620 and Rs 690 per equity share. This will reduce the institutional shareholding from 30.52% to zero, while public shareholding will increase from 1% to 31.52%. Promoters’ shareholding will remain intact at 68.48%. There will be no change in equity capital of the company after the IPO.

Strengths

Well-recognised brands, tax efficient production units and significant rural presence.

Has approximately 2,500 distributors and has a direct reach of approximately one million retail outlets. This distribution leverage can help in faster product launches and distribution of other non-competitor company’s products.

Weakness

Highly competitive industry.

Recent performance has not been encouraging. Sales were up 20% to Rs 361.89 crore but adjusted net profit increased only 3% to Rs 48.14 crore in FY 2007.

Valuation

The price band is set at Rs 620 to Rs 690 per equity share of Rs 5 face value. At the lower band of Rs 620 per share P/E would be 18.7x times and at the upper price band of Rs 690 per share P/E would be 20.8x times the EPS of Rs 33.2 in FY 2007. In the FMCG industry, comparable companies such as Godrej Consumer Products and Emami have TTM P/E of around 20.6 and 26.4, respectively. Even HLL is available at TTM P/E of 26 times.