Prataap Snacks Limited IPO Message Board (Page 29)

Dear Mr. Pramod khanna
For EX.
We applied. ... 14Lots
Over subscribed.. 10 times
Allotted. .. 0000000 only in KARVY.
Where is PROBABILITY . I checked so many times .
I compared OTHER VS. KARVY.
FINALLY I AM NOT SATISFIED WITH KARVY ALLOTTING SYSTEM. and etc.......

You are 100% correct

Dear MKTrader

Pls. listen to me very carefully,sometimes you apply single lot just one application and you get and on the other hand you apply 3 to 4 applications and you wont get anything,kindly read as under:

1. YOU HAVE TO EVALUATE AND APPLY ACCORDINGLY.
2. IF ISSUE IS REALLY GOOD THEN TRY TO APPLY MAX,IF YOU APPLY MAX THEN PROBABILITY IS VERY HIGH AND YOU MIGHT GET.
3. YOU HAVE TO BE SMART ENOUGH HOW MUCH TO APPLY AS PER ISSUE WISE,IF YOU ARE MARRIED THEN APPLY ALSO IN YOUR WIFE NAME, FURTHER MORE, YOU CAN APPLY IN YOUR PARENTS NAME TOO, IN SHORT IF YOU APPLYING 3/4 APPLICATIONS PER IPO,CHANCES ARE YOU WILL GET AT LEAST ONE LOT.
I hope it''s clear and my wishes are with you guys and you will get,Good Luck

*Breaking :- Market timing extended closing time till 05.00 pm*
*From 30-Oct-2017*
*SEBI board approved.*

It''s just a rumor. NSE has issued clarification denying it.

Yes ....there is no change in market timings ....it was just a proposal ....but was rejected ...!

Post Issue EPS 2016-2017= 938/222=Rs.4.23 (Assuming Dilip davda''''s calculation is correct)
Estimated EPS 2017-18= Rs.7.40 (Assuming a 75% Increase on an optimistic basis)

Bottom line inconsistency is a headache for this company. Instead of applying in this overpriced IPO, one would prefer to buy DFM Foods at this level. Dont apply looking at GMP as It will disappear by listing day.

Fair Valuation IMO

Optimistic at PE 140 --7.4*140=1036
Moderate at PE 120==7.4*110=814
Pessimistic at PE 83.08==7.4*83.08=615

Conclusion
My NII subscription expectation is 90x (Maximum). My heart says it will open either in discount or at par. Expectation for listing gains is negligible having regard to the valuation & inconsistency in bottom line.So wait till last day''s subscription figures before applying.

Prataap Snacks IPO – Schedule (Pg #428 of RHP)

15th Sept – Price Band to be Announced
21st Sept – Anchor List
22nd Sept – Offer Opens
26th Sept – Offer Closes
29th Sept – Finalisation of Basis of Allotment
03rd Oct – Unblocking of ASBA
04th Oct – Credit to Demat Accounts
05th Oct – Listing on NSE & BSE


Prataap Snacks IPO – Issue Information (Final)

Issue Opens on: 22 September 2017
Issue Closes on: 26 September 2017
Issue Type: Book Built Issue IPO
Issue Size: 51,37,966 Equity Shares
Face Value: Rs 5 per Equity Share
Issue Price: Rs.930 – Rs.938 per Equity Share
Market Lot: 15 shares
Listing At: NSE, BSE

Equity Shares outstanding prior to the Issue = 2,13,20,840 Equity Shares
Fresh Issue of 21,32,196 Equity Shares @upper price band = Rs.200.00 Crores
Offer for Sale of 30,05,770 Equity Shares @upper price band = Rs.281.94 Crores
Equity Shares outstanding after the Issue = 2,34,53,036 Equity Shares

Category-wise Break up:.
Anchor – 15,28,790 Shares = 143.40Crs
QIB – 10,19,193 Shares = 95.60Crs
NII – 7,64,395 Shares = 71.70Crs
RII – 17,83,588 Shares = 167.30Crs (Lot size: 15 = 1,18,906 Forms)
Employees – 42,000 Shares = 3.94Crs

Total Issue – 51,37,966 Equity Shares = 481.94Crs.

Subscription required for 1X
RII = 1,18,906 Forms
NII = 71.70 Crs

Interest cost @5%p.a. for 7days = 89.945paise for 1X


Prataap Snacks IPO – Financial Information (Basis of Valuation)

EPS for FY14-15 >>> Rs.04.84 (Page #123 of RHP)
EPS for FY15-16 >>> Rs.14.78 (Page #123 of RHP)
EPS for FY16-17 >>> Rs.05.04 (Page #123 of RHP)

RoNW for FY14-15 >>> 05.22% (Page #125 of RHP)
RoNW for FY15-16 >>> 12.60% (Page #125 of RHP)
RoNW for FY16-17 >>> 04.15% (Page #125 of RHP)

NAV as on March 31, 2017 was Rs.114.66 (Page #125 of RHP)

Peer Group (Page #126 of RHP):
Britannia Industries P/E 56.62X
DFM Foods P/E 87.81X
P/E Ratio has been computed based on the closing market price of equity shares on the BSE on August 29, 2017.
 
Prataap Snacks IPO
Market Estimates of oversubscription:

Category-wise:

1X QIB = 95.60Crs – assuming applications of 8KCrs. = 84X oversubscription

1X NII = 71.70Crs – assuming applications of 15KCrs. = 210X oversubscription

1X RII = 1,18,906 Forms – assuming 11L forms. = 9.25X oversubscription (applic-wise)
i.e. average 1.62 shares per form

@ehaleeye Madam r u applying pratap snakes ipo......

Thanks for coming back to this forum.
Keep posting IPO updates. Most of investors on this forum depends on your view about IPOs.

Godrej Agrovet ipo

open on 4th october & will close on 6th october

Karvy

Forum Moderator, please add new page for Godrej Agrovet.

I sold my 2 application to my broker. Subject to Allotment 3000 Rs.

ICICI Securities - Subscribe
Hem Securities - Subscribe
Geojit Financial Services - Subscribe
Spa Research - Subscribe
Aditya Birla Money - Subscribe
Anil Singhvi (CNBC AWAZ) - Apply for Listing gains

Angel Broking - Neutral

SPTulsian - Avoid

MAR SALA SP T_L_I_AN KO, FEW DAYS AGO TOLD THAT ICICI PRUDENTIAL IS BETTER THAN ICICILOMBARD, AFTER HIS COMMENT ICICIPRU FALL Rs 30.

Fully agree with rvr

S P tulsiyan prediction always goes wrong same thing will happen here also.

can I apply for 10 slots from 1 dmat account from retail ?

Yes you can apply 10 lots. Upto Rs. 2 lakh amount of shares can be applied in retail category( in lot multiples).

thank you @IPOmaster.jaipur and @GUPTANKIT

Earnings of FY17 on fully diluted equity post issue then asking price is at a
P/E of 222.
Last three years average EPS is Rs. 7.63

Price is RS.1860.00. FACE VALUE RS.10
LOOK. EPS. VS. FACE VALUE


PLEASE DON''T GO BLINDLY. THINK WELL BEFORE APPLY

You r right bro

Capasite 125/130
Pratap snacks 140/150
Rajkot

Hello paresh ji ye grey market main kaise sell hota hain

i want to sell in kostak. can anyone say the procedure please

Welcome Back Eagleye
Happy to see you on this board after a long time

Not Recommend...!!!

On what basis.....

MArket under black cloud one more misile testing by IRAN..

I am not applied.
because , KARVY.

I HAVE NO FAITH ON KARVY

Khemkha ji and other sufferers lets file an online petention against karvy, from handling any ipos..

Dear Phrao

Kindly note karvy is the oldest and pretty big registrar, i used to get 80 % allotment long time back that time so many people are not applying, now you know issue o/s by many many times,so there is not such issue. You pls. apply and believe in God, you will get. I also did not get any allotment in last three issues, it does not mean i am not going to apply, i will and same way you also apply.

prataap snacks ipo

gmp. 450/- 500/- in jamnagar

alloted aplication rs.--5000/- cash

Prataap Snacks’ IPO opens. What are brokerages saying about the issue?

Multiple brokerages recommend subscribing to the issue with a long term perspective as valuations could be higher from some perspective. But the business has a strong potential to grow ahead, they said.

Spa Research | Rating: Subscribe

The brokerage house said that the company’s sales CAGR growth of 27 percent in the last 4 years implants confidence in the company''s ability to drive growth. “However, volatility in margins and limited pricing power at Rs 5 price point (80 percent of sales) has been a big concern for the company,” the brokerage house said in its report.

Furthermore, high sales growth and operating leverage to play out resulting in margin expansion of 8 percent can result in sharp increase in profitability and improvement in ROE going forward, it added.

On valuations, it said that the issue is priced at P/E of 218x but a P/S of 2.4x.

Geojit Financial Services | Rating: Subscribe

The broking firm observed that Prataap Snacks’ story should be considered based on its product launch plans, strong, sustained revenue growth and strengthening market position in the last few years.

“The company intends to foray into relatively untapped high margin chocolate-based confectionary, the market for which is estimated to grow at 15-18% annually over the next four to five years,” the report added. With this, it recommends the subscribe rating to the issue.

Angel Broking | Rating: Neutral

Angel Broking said that the issue’s valuation is rich at the upper end of the price band. It highlighted that the FY16 EPS yields a PE of 73 times. “FMCG companies commanding such high P/Es have a very strong profitability and returns profile such as Britannia,” it said in a report.

The company has to justify this valuation by showing remarkable improvement in profitability, which may come at the cost of lower growth, it added.

Aditya Birla Money | Rating: Subscribe

The broking firm said that the company’s revenue has grown at a CAGR of 27 percent over FY13-17. Further, after the issue, the market capitalization is expected to be Rs 2,200 crore. The firm recommends having a long term view on the stock with possible listing gains.

ICICI Securities | Rating: Subscribe

The broking firm said that the stock’s valuation is seen at 2.4x FY17 MCap/sales. It believes that Prataap Snacks’ is attractively placed compared to its peers.

“With expansion plans in place initiative to penetrate the weaker markets and strengthening of brand image & recall through Rs 40 crore investment over coming three years, the company would be able to post sustainable operating margin and also record better earnings going forward,” the brokerage said in its report.

Hem Securities | Rating: Subscribe

Hem Securities said that the company has a pan-India distribution network, but looking at the valuation, the issue is overpriced. Hence, it recommends a long term subscribe on the issue.

The 482 crore initial public offer (IPO) by Prataap Snacks kicked off on Friday. The company is offering shares in Rs 930-Rs 938 range. It is offering a discount of Rs 90 per share to its eligible employees.

The snacks company on Thursday sold Rs 143 crore worth of shares to 15 anchor investors including Goldman Sachs India Ltd, HDFC Trustee Company, Smallcap World Fund Inc and Fidelity Funds at the upper limit of the price band. Analysts noted that the company''s profitability has remained inconsistent due to its focus on gaining the market share. They are neutral to positive (on the long-term basis) on the issue.

Angel Broking said that the issue looks richly valued at 202 times of its FY17 earnings.

"Ignoring its lower profitability in FY17 and valuating the issue on FY16 EPS still yields a high P/E of 73.0x. FMCG companies commanding such high P/Es have a very strong profitability and returns profile such as BritanniaBSE -1.66 %. Its peer in exactly the same industry i.e. DFM FoodsBSE -4.21 %, also has good margins (10 per cent in FY17) and handsome return profile (20 per cent cent)," the brokerage said.

For Prataap Snacks to justify this high valuation, remarkable improvement in profitability is required which may come at the cost of lower growth, the brokerage said.

The company is into three product lines. Extruded Snacks, Chips and Namkeen. It own brands Chulbule and Yellow Diamond. Prataap Snacks has three manufacturing facilities, 218 distributors and 3,500 super stockists. Sharekhan said that while GST implementation bodes well for branded snacking players, the offer by the the company is at significant premium to its peers.

"In addition, operating profit margin (OPM) of 4.5 per cent and return on equity (RoE) of 4.3 per cent are much lower than industry peers. Though the company is expanding its capacity and enhancing its distribution reach, we believe it will take some time for margin profile and return ratios to improve," it said.

Hem Securities said that even as the company has diverse product portfolio with pan India distribution network, the issue''s valuation looks overpriced, which led the brokerage give a Long term susbcribe rating to the issue.

"The company’s EBITDA margins have been consistently weak and have come down from 8 per cent in FY13 to 4.5 per cent in FY17. PAT margins have also shrunk to just 1 per cent in FY17 from 4.3 per cent in FY13 due to the potato crop related issues. Analysts say if an investor is looking to participate in the issue, he should not expect listing gains and rather look for long-term growth.

EagleEye are you applying for Pratap snacks