Precision Camshafts Ltd IPO Message Board (Page 36)

Teamlease may not be a good buy for retail investors : Economic Times. PLEASE read this article. ..... As far as valuations are concerned Precision is far better than Teamlease

LAGTA HAY ABHI CHHITORGJHAR VALE KO INTRAST NA HI HAY IPO INFORMETION KA DE KHO AAJ 28/01/2016 KA PCL KA 2ND DAY KA ABHITAK UPDET NAHI DIYA HAY NOW TIME11.45 PM ON 28/01/2016 TILL

Finally HNI / NII Quota is being funded by Potak, KM Financial, Maxis and Wise Eagle. The funding cost has worked out @ of 7 percent for 7 days at an oversubscription of not more than 7 to 8 times.

The rationale for investment being at 27 times forward earnings what are the chances for getting a consistent auto ancillary company which has the potential do deliver growth in net profits year after year for the last 5 years. The sales have more than doubled during the last 5 years and net profits surged by 5 times.

Over and above the sales have been around 80 percent from Exports markets of GM - General Motors and Ford. The quality perameters as compared to the Indian Markets are very difficult and precise. Moreover the company has been a global marquee for such large conglomerates.

Given the host of Auto ancillary companies in which the Indian diaspora is headed.... there are hardly few companies which abide by International standards.

A particular south based leading midcap mutual fund is actively looking at the company. MR. Palekar seems to be accumulating stocks at the lower end.

My personal opinion seems that the stock could open anywhere between 260 / 265 levels given the lack lustre IPO performance till last date. As grey market operators have commenced marketing Team lease heavily.... everybody is intending to invest in that issue and miss Precision Camshafts. By 3.00 p.m. tomorrow ..... things should be clear. ...

Please share with me your email address.... I will send you the excel sheets from all the wealth brokers..... each and every IPO from Alkem Dr lal path Lab Narayana Hrudalaya etc were funded at 7 percent per annum for just 7 days..... I would be more than glad to clear your doubts..... refards

IPO financing is always at 6-8% Septa...the reason why profit calculations even at such low cost of financing breaks down is becathe HNI category sees subscription to the extent of 15x, 20x, 25x or more...this leads to lower share allotment and the maths thereon...

CM gave rating 42 to Precision which is above average.

Precision Camshafts, the first e-IPO of 2016 hit the capital markets on Wednesday to raise about Rs 410 crore through an initial public offering (IPO).

The IPO received bids for 9,08,240 shares against the total issue size of 1,58,67,366 scrips on the Day 1, data available with NSE till 1700 hours on Wednesday showed.

The issue is yet to see participation from foreign institutional investors (FIIs) and domestic institutional investors (DIIs).

Price band for the IPO offer, which closes on January 29, has been fixed at Rs 180-186 per share.

The company is raising Rs 240 crore through fresh issue of equity shares. In addition, the issue also consists of offer for sale of 91.5 lakh shares of which 61.5 lakh shares will be offered by the promoter entities and 30 lakh shares by other investors.

The fresh issue will constitute 13.62 per cent of the post issue paid-up equity share capital of company assuming the issue is done at the upper price band.

From six anchor investors, the company has raised Rs 123 crore by selling shares at the upper price band of Rs 186 apiece.

It allotted a total of 66.16 lakh equity shares to anchor investors at a price of Rs 186 each (including a share premium of Rs 176 per share), aggregating to Rs 123 crore.

Proceeds from the fresh issue would be utilised for establishment of a machine shop for ductile iron camshafts at the export oriented unit (EOU) in Solapur, Maharashtra at a cost of Rs 200 crore and for other general corporate purposes.

The company also proposes to up two new machine shops at Solapur, for ductile iron camshafts and assembled camshafts respectively, by fiscal 2017 and fiscal 2018.

Broking firm Angel Broking has recommended ''Neutral'' on the issue given the expensive valuations.

"On the price to earnings per share (EPS post-IPO) front, the company is valued at 25.8x 1HFY2016 annualized numbers, while a larger and more diversified player in a similiar business, Bharat Forge is trading at a similar multiple of 25.1x FY2016 estimated numbers despite better ROE," said the brokerage in a research note.

Another brokerage Kotak Securities has valued the company at 28x FY15 EPS and 26x FY16E EPS (annualized) post dilution, at the upper level of the band.

Giving its investment rationale, Angel Broking noted that the Solapur-based company has almost doubled its market share over the last five years, and currently
commands about 8-9 per cent of the global passenger vehicle camshaft market.

The company is also a preferred supplier with marquee global automakers such as General Motors, Ford Motors, Hyundai, Maruti Suzuki and Tata Motors.

However, the auto ancillary company is exposed to currency risks and client concentration. It derives about 80 per cent of revenues from exports with Euro and GBP constituting major revenue currencies thus exposing it to risk of adverse currency movement. Further, General Motors and Ford form about 35 per cent of the revenues each leading to client concentration.

Precision Camshafts supplies over 150 varieties of camshafts for passenger vehicles, tractors, light commercial vehicles and locomotive engine applications.

SBI Capital Markets, HDFC Bank and India Infoline are the book running lead managers to the issue.

Dear learned friends,
Could any one guide about EIL OFS
price to bid- indicative . Suppose two people bid for 195 and 200.. If both are allotted then will both get at same price or different price.
How discount is calculated . On bid price or floor price.

Both will be alloted at different price.but some times situation arises when market value become less compared to ofs price.at that situation most retails left the ground .priority in ofs will be given who bid at higher or inothet term more than cut off decided by brlm (sbicap) in this issue.

i was recently in my village after a gap of 10 years i was surprised with the amount two wheelers and four wheelers all size and make 10 years back hardly had any two wheelers forget about four wheelers ....so growth in auto will and always be more then GDP... also in cities car park is a big issue the minimum average is 3 cars per unit in mumbai and NCR.... PCL is market leader in a growth sector make list on discount but long to medium term will give u handsome return.... For me this investment risk of losing is a ok risk compare to growth and stay with market leader..... plus it not a easy industry to entry which is again very important time lag is 3 years minimum.... 2018 model car is already in the pipeline.... i am going full on i will see if HNI is below 10 i will apply i big lot and if RII is not oversubscribed i will go full lots and if subscribed full i will apply only one lot.....

Septa ji,

I have around Rs2.10 lakhs. Shall i apply in HNI catergory or in RII category from 2 accounts.

Please suggest. Waiting for your reply.

Waiting for your reply Septaji

Dear Pinkyjain ji what are your views about P C. L. Apply or not..??

Dear, Pinkyjain ji what are your views about Politics apply or not..??

i think fii kaa maal bhi retailer le jayenge....dont be over smart ..thing like this happen in CCD........OHO..HO..HO

In case of CCD, RII were bearish subscribing only 90% but were still allotted at Cap price. If you think it was unfair, look at HNIs who only subscribed 54% & still ended up paying hefty price. Everyone was taken for a rough ride by promoters/underwriters.

I can''t believe Morgan Stanley was involved in all of this. But hey, they bungled Facebook IPO too, right? The fact remains that every underwriter has a chequered track record.

Dear Eagleye
Please share your view on Engineers OFS
At what price we should bid in retail category
Thanks

How to apply in Engineers India?

Dnt wry....u wnt get anything evn if u apply in eil ofs.bcz very intelligent people apply at 20% premium.who are ty??no one knws

For EIL keep checking every half an hour. It is live. Don''t go by the opinion alone. In Indian oil all retailers got at Rs. 369 after discount and market price went up to 405 very next day and went up also to 425 and still at around 400. They also declared dividend of 6.60 within a week of OFS.
Similar event happened in Coal India. One ahs to see the price discovery and then decide on spot. For long termers, you just need to buy and keep it .

Dear Arjunbhai,

Your report is flawed in the matter of valuation ... Your report states that ... “annualized H1FY16 eps of Rs 7.20 per share”




As per my research, the consolidated fully diluted EPS for six months period ended September 2015 = 4.16 (not annualised)

My 2 sources are:

1)      RHP Page Number 93 ... which you may down from here:
http://www.sebi.gov.in/sebiweb/home/list/3/15/11/0/Red-Herring-Documents-filed-with-ROC

2)      The Price Band Ad ... uploaded on BSE ... which you may downfrom here:
http://www.bseindia.com/downloads/ipo/PriceBandAd-Precision_210120161731.pdf

So, if we simply multiple this by 2 ... we will arrive at FY16 EPS of Rs 8.32 per share.



On the other hand, my sources say that H1 had suffered on account of some order cancellations due to the slowdown in China ... which has now been right ... and the expected EPS for FY16 = minimum 8.50 ... and realistically expected to be over 9/- (on expanded capital post issue) ...

So now what will be the valuation matrix ... as compared to other Auto Ancillaries ... say for example Bharat Forge ?

Awaiting comments ...

Eagleye
My report is from HEM securities product report.

Well in any case EPS is not above 9
On further dilution it will be 7.5 therefore asking around 25-26PE
Even Qtr 3&4 will be more hard for company China slow
But add cheap cost of iron can help in increasing earnings

Sir,

Remember to remember me when you see the results for Q4 ... the EPS will be 8.5-9 for FY15-16 on diluted basis ...

No further Analysis-Paralysis ... Just apply ... you will not regret it !!!

Reg Engineers India Ltd OFS:
======================
if the floor price is 189 Rs then what should the least price a retail investor should bid considering the subscription rate will be more? Also based on the bidding price the discount will be given or how it is? please guide I am new to this :(

More u bid..more the chance u will b alloted.u can bid more than cut off also.

iS GMP of pcl NEGATIVE ? What is most likely listing of teamlease around rs 1100 ?

PCL GMPs 5.5-7.0 active

Precision Camshafts is one of the world’s leading manufacturer and supplier of camshafts, a critical engine component, in the passenger vehicle segment based on co''s estimated global market share by volume according to the ICRA Research Report. Company supply over 150 varieties of camshafts for passenger vehicles, tractors, light commercial vehicles and locomotive engine applications from its manufacturing facilities in Solapur, Maharashtra.

A majority of co''s revenue comes from export of camshafts to various OEMs directly and indirectly. Company have long term relationships with several marquee global OEMs, such as General Motors, Ford Motors, Hyundai, Maruti Suzuki, Tata Motors and Mahindra and Mahindra. As of March 31, 2015, company have supplied over 58 million units of camshafts in the last ten fiscals and have serviced various customers across different geographies including the United States of America, Brazil, the United Kingdom, Germany, Austria, Hungary, Russia, South Korea, Spain, Uzbekistan, China and India. Despite a relatively slower period of growth in the automobile industry in the last five years, company have been able to consistently increase its global market share in passenger vehicle camshafts market from 5%-6% in 2010 to an estimated 8%-9% in 2014. (Source: ICRA Research Report) Company have recently won the awards for ‘Best Overall Exporter’ and ‘Best Manufacturer Exporter’ from Dun and Bradstreet India at the Export Credit Guarantee Corporation of India Limited Indian Exporters’ Excellence Awards under the medium exporters category in March 2015.

Valuation: The company is bringing the issue at price band of Rs 180-186 at p/e multiple of 25-26 on post issue annualized H1FY16 eps of Rs 7.20 per share. Company being one of the leading supplier of camshafts for passenger vehicle engines in India and globally has long term relationships withmarquee global OEMs with state-of-the-art manufacturing facilities. Also looking after consistent financial performance of company, issue seems to be a decent investment opportunity. Hence we recommend investors to "Subscribe" the issue for investment purpose.





PE Around 25-26x

If we apply online the cut off time is 3pm

If we apply through broker what is cut off time to be deposisted in bank????
Plz help sir ji

YOUR AREA BANK CLOSING TIME OR BEFORE 1700 HRS BUT THEY CLOSE EARLIER

CHECK THE SAME

PCL GMP 06-07 per share (activity in full swing)

TSL GMP 245-250 per share (low activity)

Yes. And most likely HNIs would jump in too. QIBs are the critical link here.. if they jump in like they do in most of the cases it would be a normal issue. If they don''t, it could be another Prabhat Dairy & price band might be revised. However, the latter scenario does not look very likely.

348.1 post was meant for the below post no 347...

Looking at today''s subscription numbers ...
I expect the Retail portion to be oversubscribed by 1.5 to 2 times