Jyothi Laboratories Limited IPO Message Board (Page 21)

Jyothy Laboratories is an FMCG player in fabric care, household insecticide, surface cleaning, personal care and air care segment with brands such as Ujala, Maxo, Exo, Jeeva and Maya.



Since the proposed issue is Offer for Sale, no capacity increase is taking place or no new fund is coming to the company, hence only the normal growth would get achieved by the company.



FMCG sector presently is not a fancied sector and is likely to remain so for the next couple of years. Return on net worth of the company is also quite low at 16.51% when compared to its peers like Emami, which is at 40.5% and Marico at 49.7%. The share is being offered at a PE multiple of close to 21, at the upper band, of Rs 690 per share, thus leaving very low scope for appreciation in the medium to long term. The issue may give listing gains but looking at the pressure on margins of the company, the share may not be able to give decent returns in the long run.



It is just a mediocre issue

GOT IT AMAR.......WILL PLAY SAFE.

THANKS

dont apply

AVOID THIS ISSUE.....
IN PAST MANY ISSUES WERE SAID TO BE OVER PRICED BUT THEY
WERE WELL OVER SUB IN QIB& NON INST INVESTERS .BUT IN THIS CASE OF JYOTI IT HAS NOT BEEN SUB YET .F.MC.G IS NOT A BOOMING SECTOR.U MAY AVOID THIS ISSUE.......
DONT GO WITH G.M.P
IN CASE OF EMPEE DIS G.M.P WAS 150-175NOT ITS JUST 50. SO
AVOID .

Dear Hitesh(84)
Things are not at all good in USA ( i m NRI -CA, USA),Sub-prime issue is not over yet & by mrach u will heard about PRIME CREDIT ISSUE......that will affect all countries. I m very bullish about indian market But cant ignote U S market

It issue will meet the same fate as purvankara.

This issue is very overpriced, they will have to reduce theprice to reasonable figure to meet enough subscription for listing.

AMAR
I AGREE WITH U 100% .BUT MY DEAR U SAID THAT MKT WILL
TOUCH 16500 THATS WHY ...
N E WAYS NOW I THIK BETTER TO AVOID THIS ISSUE BETTER NOT TO EARN RATHER THEN LOSE.

it will subscribed 8 to10 times in retail.

Dear hitesh (74)........after 2 days suscription , dont u think ,not to wait for listing!!!!!!!! even jyothi has to think about 450 right now.........BACHO is issuse se

Rs.690 is definitely chitting ( loot ) for such type of worthless I P O , Absolutely this is not worth to apply .Better to Keep safe your khoon pasine ki kamai , be depositedin Bank .

Zee Business - Brokers are advising to invest in this issue. Even Udayan Mukharjee has written in moneycontrol.com that this issue will give good listing gains. So guys decision in yours. Decision is yours.

Expensive Ujala


Jyothy Laboratories is entering the capital market on 22nd November 07 with an Offer for Sale of 44.30 lakh equity shares, of Rs.5 each, in the band of Rs.620 to Rs.690 per share. Five, venture capitalists and PE investors, having acquired the shares of the company between 2000 and 2006, are now offloading their stake and completely exiting from the company. The cost of acquisition per share to these investors was at Rs.143 in 2000 and at Rs.291 in the year 2003.


The company has been struggling till FY 04, when it had stagnant topline and negative bottomline. In FY 05, though topline fell to Rs.271 crores from Rs.300 crores, PAT rose to Rs.33.27 crores, against net loss of Rs.23.08 crores, in FY 04.


The Offer for Sale is being made by five shareholders, of which ICICI Bank Canada and ICICI Bank UK, PLC is holding maximum number of shares, of about 28.66 lakh shares. These shares were acquired by them in the year 2006, from original allottees like Canzone Ltd., South Asia Regional Fund and CDC Investment Holdings.

The company is an FMCG player in fabric care, household insecticide, surface cleaning, personal care and air care segment with brands such as Ujala, Maxo, Exo, Jeeva and Maya.

Ujala Fabric Whitener, flagship brand of the company, has 57.5% market share (by volume) and 72.2% share (by value) as at 31st July 07. Maxo Coils has market share of 20.8% as on that date. Rest of the brands are either region based or have yet to catch on.

Since the proposed issue is Offer for Sale, no capacity increase is taking place or no new fund is coming to the company, hence only the normal growth would get achieved by the company. Though topline of the company rose by 19.25% from Rs.314.05 crores in FY 06 to Rs.374.52 crores in FY 07, PAT rose only by 3.33% from Rs.46.59 crores in FY 06 to Rs.48.14 crores in FY 07. This is due to fall in the EBITDA margin in FY 07 to 18.12% from 19.34% in FY 06. Due to huge cash surplus of about Rs.77 crores with the company, other income is quite high at Rs.12.63 crores for FY 07. EPS was at Rs.33.20 for FY 07.


FMCG sector presently is not a fancied sector and is likely to remain so for the next couple of years. Return on net worth of the company is also quite low at 16.51% when compared to its peers like Emami, which is at 40.5% and Marico at 49.7%. The share is being offered at a PE multiple of close to 21, at the upper band, of Rs.690 per share, thus leaving very low scope for appreciation in the medium to long term. The issue may give listing gains but looking at the pressure on margins of the company, the share may not be able to give decent returns in the long run.


It is just a mediocre issue.---------S. P .TULSIAN

I think the IPO is overpriced. So, if you want to apply for it then plz short sell it otherwise you may see severe downside.

Grey market premium will come down drastically, may go to discount, looking to the subscription data.

The Initial Public Offering (IPO) of Jyothy Laboratories Limited has received 0.03 times subscription till 5:00 PM on November 23, 2007.

The issue opened for subscription on November 22, 2007 and closes for subscription on November 27, 2007.

The issue has received total bids for 112400 equity shares against the offer of 4430260 equity shares. The issue has received bids for 104920 equity shares at cut-off price.

Out of the issue, Qualified Institutional Buyers (QIBs) portion has received no bids against the offer of 2215130 shares resulting in a subscription of 0 times.

The Non Institutional Investors portion of the issue has received subscription of 0.0026 times with bids for 1750 shares against the offer of 664540 shares.

The Retail Individual Investors (RIIs) portion of the issue has received bids for 110650 shares against the offer of 1550590 shares resulting in a subscription of 0.0714 times.

AMAR IS SO SMART .....AMAR SHORT SELL EVERY THING IF ITS CONFIRM .U WILL BE CROREPATI.
DONT WORRY ABT OTHERS..........
AIDA AMAR

DONT TRAP.........U WILL GET AT 450 AFTER LISTING ........MARKET WILL BE AT 16500 AT THAT TIME. U S MARKET CLOSED DUE TO THANXGIVING HOLIDAYS.......THINGS WILL BE WORST IN DEC.......BE CAREFUL

shd one apply for this IPO???

y so less subscription figures for this IPO??
nOT EVEN sibgle bid for FII ETC

68. gangu >> What do we do ? apply or not ?