Mahanagar Gas Limited IPO Message Board (Page 51)

APPLICATION RATE OF MGL AT JODHPUR

Kalpesh fekku

sahi bat hai kalpeshbhai
1800 me kam chalu ho gaya

wher

1800 application ahmedabad

एक पे एक free का scheme है क्या??

I saw a number of messages here on Fed rate, Yen rate and finally Brexit , without analyzing the impact on the Indian capital markets. These events will have an impact on worlds capital flows no doubt, but how do they specifically impact Indian capital markets needs to be analyzed before these themes are made out to be catastrophic for the Indian capital markets. (Remember Indian Rupee is still not allowed to float and capital account convertibility is not in place). I wish somebody does that instead of scaring ignorant people like me and creating panic.

Thanks for your clarifications. But don’t you think it is more complex than that? The premium and discount of the base currency and term currency is a function of the interest rate differentials between a currency pair. May not be 100% so in the case of US$/INR as it is a managed float. US$ is the intervening currency for us, and as such cross currency rates affect INR rate for all the currencies other than US$. Yen is zero interest rate currency and is used for carry trade. Increased Yen rate will affect carry trade, and may not happen till BOJ decides that Japan is out of recession.
As far as BREXIT is concerned even if UK opts to exit, it will take a couple of years for it to completely exit EU. The trade between EU and UK may become more expensive or unattractive. However, the immediate affect is the sentiment, and strengthening of US$ . This will impact export/ import receivables and payables respectively with these countries and India in INR terms. The immediate impact will be increased volatility in currency markets as well as Indian capital markets. However, it will be short term. Ultimately Indian capital markets will look to earnings, return on capital, current account deficit, pace of economic reforms and other triggers like taxation for its attractiveness to foreign investors to sustain. If GST is passed it will be a big positive for Indian capital markets.
So, one need not panic because of BREXIT!

Yes you are right.
If US fed increase rate for another two times then US dollar will outperform among all other world courancies. We will also see lots of pressure in INR for small time. Transaction rate will reach to 70 easily for sometime.

It UK opt to exit EU then major effects will be seen in trade. Though it will take some time (few quarters) to see full effects.

But markets running on news, it will start falling from first second of news.

India need to accelerate economic reform to outperform from these types of global activities. This will help foreign investors to build confidence in India. GST is the main thing in GDP increase. Other economic reforms are needed to boost earning of domestic companies.

REGISTER PRIVATE LIMITED COMPANY ANYWHERE IN INDIA IN RS. 15,000 ONLY.

WE PROVIDE OTHER SERVICES AT GIVEN BELOW RATES:-

ITR OF SALARIED EMPLOYEE- IN RS 500 ONLY.

EMAIL

NEERAJBANSALHOME@GMAIL.COM

As Warren Buffet says......If markets would have been rational,i would have been a beggar........
As far as Mahanagar ipo goes..........relative valuation would be right to go with now and later we can see Discounted valuation.......so at 550-570 i would be a flipper.....PSU sometimes i wonder why would i buy a company whose management mind is controlled by others.......So 1-2% allocation of your overall portfolio for long term,,,,,if u really want to have it.............


Thanks
@MK

Hi I want to apply full application as a retailer. Please advise for how many shares I can apply?

Analysis of upcoming IPO of Mahanagar Gas has been loaded on www.sptulsian.com.

You can access it in the Free Zone in New Issue Analysis section (no login required). The section can be accessed at:
https://www.sptulsian.com/free_zone/new_issues_analysis

New issue (IPO) Analysis:
Not ‘mahan’, but ‘sahi daam’

Mahanagar Gas Limited is entering the primary market on Tuesday 21st June 2016, with an offer for sale of upto 2.47 crore equity shares of Rs. 10 each, by promoters, in the price band of Rs. 380 to Rs. 421 per share, with an employee discount of Rs. 38 per share (no retail discount). Issue, representing 25% of the post issue paid-up capital, will raise Rs. 938 crore and Rs. 1,040 crore at the lower and upper price band respectively (all secondary money) and will close on Thursday 23rd June.

Mahanagar Gas, a city gas distribution company, is an equal joint venture between GAIL and British Gas (now owned by Royal Dutch Shell), each owning 45%, with balance 10% held by Maharashtra State Govt. Company supplies compressed natural gas (CNG) to 4.7 lakh vehicles, through 188 CNG filling stations and distributes piped natural gas (PNG) to 8.6 lakh households and 2,900 commercial establishments in Mumbai and its adjoining areas. It has recently been awarded distributorship for Raigad district in Maharashtra. For FY16, company sold 2.43 mmscmd gas, split 74:26 between CNG and PNG by volume, and 71: 29 by turnover.

Despite operating in Mumbai for nearly 20 years, its coverage is quite low. Of Mumbai’s 27.1 lakh households, as per 2011 census, it caters to only 8.6 lakh households (as at 31 March 2016) - barely 32% of market size. Increased households over 2011-16 will only lower this penetration number. No wonder company’s growth has been slow. Market size is huge, given the untapped potential in Mumbai itself, where majority of the distribution infrastructure is already in place, in addition to the new market of Raigad.

While company’s topline grew at a CAGR of 12% between FY12 to FY16, from Rs. 1,309 crore to Rs. 2,079 crore (on volume CAGR of 6%), net profit growth was missing, as net profit remained stagnant from Rs. 307.7 crore in FY12 to Rs. 308.7 crore in FY16. EBITDA growth was also paltry at CAGR of 1.8% during FY12-16 (FY16 EBITDA Rs. 556 crore versus FY12 EBITDA of Rs. 518 crore), as company is unable to pass on higher input costs to customers. Cost of inputs, accounting for 47% of sales in FY12, shot up to 59% in FY16, which proportionately dented EBITDA margin - slipping from 40% in FY12 to 27% in FY16. Low growth in profitability also resulted in Return on Equity (RoE) declining from 29% in FY12 to 20% in FY16.

Of FY16’s PBT of Rs. 467 crore, Rs. 30 crore was earned on account of treasury operations on surplus cash, which implies about 6% of profits from non-core activities. Corollary, only 5-7% p.a. return is generated on liquid investments, which is quite low. Returns of 10%-12% p.a., with better treasury management, is warranted, to make the idle cash sweat prudently!

As of 31st March 2016, equity stood at Rs. 89.34 crore, which currently stands at Rs. 98.78 crore, on account of conversion of CCDs by Maharashtra Govt. on 7th June 2016. Net worth, as of 31-3-16, stood at Rs. 1,528 crore, of which, Rs. 560 crore is cash and equivalents, while company has sundry debt of Rs. 4 crore. Thus, it is a debt free company with surplus cash of Rs. 56 per share. While company is yet to declare dividend for FY16, for FY13, FY14 and FY15, it paid dividend of Rs. 17.50 per share, which indicates an attractive dividend yield of 4.2%.

Majority of the gas (entire CNG requirement and PNG for households, which accounts for ~85% of volume sold) is sourced under the administered price mechanism from the Govt., at concessional rate, currently at US$ 3.06 per mmbtu. Quantity of 110% of last 6 month’s consumption is available to the company under this mechanism, for distribution as CNG and PNG to households. Hence, in some sense, sales volumes for the company is capped i.e. it cannot shoot up drastically in a short span of time. This remains a drawback.

At upper end of price band of Rs. 421, company’s market cap will be Rs. 4,160 crore and enterprise value (EV) Rs. 3,600 crore. The historic EV/EBITDA multiple, on FY16 EBITDA of Rs. 556 crore, is 6.5 times, while historic PE multiple, on PAT of Rs. 309 crore, is 13.5x. Estimating FY17 EBITDA of Rs. 575 crore leads to EV/EBITDA multiple of 6.3x and PE multiple of 13x, based on the current year estimated earnings.
Despite poor growth and below:
Particulars for FY16

Mahanagar Gas
Indraprastha Gas
Gujarat Gas
Sales Volume
in mmscmd
2.43
4.01
5.6
Revenue per scm
Rs.
23.4
25.2
29.9
EBITDA per scm
Rs.
6.3
5.5
3.8
EBITDA Margin
%
26.7%
21.7%
12.6%
Net Margin
%
14.8%
11.3%
2.8%





Market Price
Rs.
421
616
512
EV/scm
Rs.
41
56
43
EV/EBITDA multiple
x
6.5
10.2
11.3
PE multiple
x
13.5
20.7
40.9

Mahanagar is the 3rd largest city gas distribution company in India, trailing Gujarat Gas and Indraprastha Gas, operating in Gujarat and Delhi/NCR respectively. Although it is nearly half the size of its peers, both its EBITDA margin and net margin are much higher, even in relation to Indraprastha Gas, which draws nearly 80-85% sales from CNG and domestic PNG, similar to Mahanagar. Gujarat Gas focusses more on the commercial and institutional segment. On valuation front too, Mahanagar scores over both its peers, on all counts – EV/EBITDA and PE multiple, EBITDA per scm and EV per scm. Hence, issue pricing is attractive.

Despite stagnant financial performance, company’s margins remain healthy vis-à-vis peers. Attractive pricing coupled with bright industry prospects make this issue a buy. One can apply at the upper band for both listing gains and with a medium term view.

Disclosure: No interest.

pls add in ipo grp 9 four one six seven seven zero five six seven

How can I account for the IPO subscription & allotment of shares of a friend from income tax point of view if subscription was paid from my account & the alloted shares were transfered through " Delivery Instruction Slip ". What should one write the reason for transfer? Should we write consideration amount equal to IPO price or transferred as " Gift ". Only those who are applying in friend''s name may please reply.

Bengaluru headquartered business services provider Quess Corp which responded to SEBI’s request for clarifications on the company’s proposed Rs 400-crore initial public offering in March, has received the go-ahead from the capital market regulator. Quess Corp is co-owned by Thomas Cook (India), and is promoted by Fairfax Financial and Ajit Isaac. “We filed the DRHP (Draft Red Herring Prospectus) for our IPO with SEBI on February 2 and received a request from SEBI for the first set of clarifications in the first week of March, which we responded to later that month. We received SEBI approval for the IPO on April 26 and will go to the markets in mid-June,” Ajit Isaac, Chairman & MD, Quess Corp, told BusinessLine. The company has hired Axis Capital, ICICI Securities, IIFL Holdings and YES Securities to manage the issue.

Rs 3,300 cr revenue

Founded in FY2008, Quess Corp generates a revenue run rate that got the company to $500 million (Rs 3,300 crore) by March 31, 2016, through its four business divisions — global technology solutions, people & services, integrated facilities management and industrial asset management. The company had initiated an internal project a few years ago, where they set a target to achieve 8 per cent margins by 2018 from 2 per cent four years ago, at a revenue base of $1 billion or Rs 5,000 crore, when the going rate of the dollar was Rs 50.



Pointing out that the company has grown 9x over the last five years, at a compounded annual growth rate of 65 per cent, Isaac said, “Our return on capital employed (ROCE) is a high 28 per cent as we use capital very frugally. We have grown entirely out of internal accruals and have never borrowed money to acquire companies; and 95 per cent of our revenues are annuity in nature, creating a huge predictability to our revenue streams.”

He said, the money from the IPO will give the company “acquisition currency,” to do more acquisitions in the future.

mahanagar gas ipo open 600 hoga pls sir tell me

Yaar Samim 600 mein kya hai? Peechey padey hue ho uske. Nahi hoga 600 pe list. Ho gayi shaanti.

Expected date for Quess Corp ?

GMPs:-
MGL 131-133
Application 1325-1375@Rajkot ( Not much Buzz)

Quess
Application 650

1.Only one application from one name and pan.
2.No one pan - one application
3.Yes

Dear Sir

Can I apply from my bank account with my friend''s demat?

I have the following questions on ASBA. Can someone help

1. How many applications can an applicant place from a bank account using his name/PAN?

2. If the applicant has account in multiple banks whether he can apply from all the bank accounts using his name/PAN?

3. Whether an applicant can apply in others name/PAN and in that case whether the other person should have DEMAT account?

Regrads
Anoop

1 & 2
One PAN one application only otherwise all get rejected.
3. Yes, you can apply

Is there any bank that will allow ASBA FACILITY for minor less age 9 years.

Axis bank opens account in minor name, but does not allow the ASBA for minors. Can anyone suggest a SCSB bank that allows ASBA online IPO facility for minors?

hdfc bank

Eagleye is it worth buying pnb & bank of India for long term at these levels? Thanks

what is application gmp in ahmedabad??? can anyone advise.......

Hello eagleye

I am new here pls suggest abt MGL ipo