Reliance Nippon IPO values 61 crore shares of company at Rs 15,400 crore have AUM of Rs. 3.6 lac crore as against current valuation of 100 crore shares of SBI Life is whooping Rs 68,800 crore has AUM of only Rs 1 lac crore only. So Relince nipon IPO is cheap or current price of SBI life is too high.
Reliance Nippon IPO values 61 crore shares of company at Rs 15,400 crore have AUM of Rs. 3.6 lac crore as against current valuation of 100 crore shares of SBI Life is whooping Rs 68,800 crore has AUM of only Rs 1 lac crore only. So Relince nipon IPO is cheap or current price of SBI life is too high.
First AMC to get listed. Though belong to ADAG group and past memories are fresh, IPO will command premium on account of Niche IPO from Financial Sector.
Reliance Nippon Life Asset Management Company .....................................................................................................
Top Line CAGR 2013-2017 ..........18.24 Top Line CAGR 2015-2017 ......... 22.61 Bottom Line CAGR 2013-2017... 15.00 Bottom Line CAGR 2015-2017.............6.60
PV of Year 1-10 Cashflows ......44992 Terminal Value ......................96057 Total Value .....................141049
No of Shares(In million) 612
Intrinsic Value 230 INR Margin of Safety 173 INR
Post Issue PE 2016-17 38 Estimated Pe 2017-18. 34 Estimated Pe 2018-19. 27
ICICI Lom(Not close Peer bt taken for analysis) ......... Nippon Profit Margin......................... 65%................................... .........28% Pe .......................................35 ...................................................38 P/B .....................................7.6 ..................................................8.97 PAT CAGR .....................16...........................................................15 Top Line CAGR .....................24................................................. 18.24
80.1. juju| Link| Bookmark|
October 13, 2017 9:22:49 PM
Top Contributor (300+ Posts, 300+ Likes)
Ankit, here I guess FCFE model will work best, as it suits all the criteria required for it, and we have reasonable data for it as well, as per my calculations with Free Cash Flow of about 130 cr, the intrinsic value is ~ Rs. 80 per share
As per my calculation FV comes around 230. Since you have mentioned in your earlier post that the GMP is 72, I think best way is to sell in grey market. If we calculate estimated listing price At 72 GMP, It comes 324.
So PE 2017-18 at 324
Based on annualized Earnings of June qtr = 324/(879*4/612)=56.37 Based on Estimated Earnings (Considering 13% Growth)=324/(4520/612)=43.87
Bottom line growth over last 3 years is only 6.6% but still i have taken as 13% on n optimistic basis.
GMP of Nippon reminding me the story of SIS.
80.5. AKH| Link| Bookmark|
October 14, 2017 11:02:07 AM
IPO Mentor (900+ Posts, 700+ Likes)
Ankiyxyz I too think so. Allotment chances are 2/9 or 2/9.5 if one have 5 or more applications then one should always go for Kostak 5x700 3500 in 10 days 4.7% return isn''t bad
Agree ...That is why kostak is 650/700 but the main point is whether it will survive till listing. Even big financial institutions will think twice before applying in a company belonging to ADAG that too with high valuation. These two negative factors make it very clear that the life of the current GMP is very short.
Frankly speaking,I don''t have single rupee faith on Anil ambani..first he came with reliance power whose power is still not coming even after so many years of ipo Second rnrl got scrap in just a day Third rcom no light of hope.... Either Anil is too unlucky or he doesn''t know how to earn faith of investor... I just stay away from this group....it is better to earn no money than losing in his company....reply most welcome
I am totally agree with Dilip Davdaji about professionally managed company, Japanese company Nippon is holding 50% etc. I want to share one practical situation. When one company is doing good and two partners are running the company at that time everything will go smoothly. But when one partner makes losses in other businesses at that time he is looking at business which is profitable.
Same way here all ADAG group companies making huge losses. They are near to bankruptcy. When ADAG have more pressure from lenders at that time there is no choice for Anil. He need to pull out money from Reliance Nippon, give his shares of Reliance Nippon to lenders as guarantee. This way this will affect Reliance Nippon because they will not reinvest money in business. They will loose brand name etc.
I think it is better to stay away from this IPO or sell applications in grey market and play safe.
FRIENDS THOSE CRITISE ANIL AMBANI ON THE BASIS OF RPOWER OR RCOM WHAT U HAVE LOST IN R POWER. IF YOU ARE GREEDY THEN ONLY U HAVE LOST OTHERWISE SHOULD HAVE SOLD FOR RS. 400 OR ODD AND LOSS WOULD HAVE BEEN NEGLIABLE ( 17 SHARES X 30 - RS. 510/-) AND REMEMBER THAT U HAVE APPLIED FOR RS. 2L APPLICATION AND ALLOTED JUST 17-18 SHARES) SHOULD SENT THEIR GENUINE PAN NO SO THAT I CAN TRACK WHETHER THEY ARE REALLY ANTI ANIL BHAGAT OR JUST FOOLING OTHERS. EVERY COMPANY HAS THEIR OWN BUSINESS CONCEPTS AND WORKING AND THERE ARE SEVERAL ANTI PERSONS , GROUPS WHO HAVE NO WORK OTHER THAN CRITIZING. MAY GOD GIVE ALL THEM GOOD BRAIN TO THINK GOOD AND THEMSELVES AND FOR SOCIETY
Many RII keep IPO shares in their portfolio for long term. what about them? why r u advocating anilbhai ?...Every time he tries to do something knew he fails.why should we give our hard earned money to him for gambling.
Mr. tushar agarwal, R power IPO in Year 2008 Issue Price band: Rs 405 - Rs 450 Per Equity Share Market price is Rs.40.85 (Friday Dt. 13/10/2017) And there is nothing to say about reliance communication........
Ye woh ADG jiska naam soon ke aaj bhi mera RCom, RInfra etc ka din yaad ajata hey. Dar ye bhi lagta hey ki kahin market phir se nosedive na marle iska aneke baad. Oh God save the market, again it has come.
*JAPANIS NIPPON IN INDIA* 1.India Nippon Electricals Limited http://indianippon.com/images/INEL_NEW.mp4 MAKE 2,3 & 4 WHEELERS, A.C., GENERATORS,ATV, POWER TILLERS, GENERAL PURPOSE ENGINES AND MANY TYPE OF OTHER THINGS..
2.Nippon Paint - Asia''s No.1 Paint Company 3.Nippon Koei India Pvt. Ltd. 4.NIPPON SEIKI CO.,LTD. 5.Nippon Express -Global Logistics Company 6.Nippon Electric Glass Co., Ltd. 7.Nippon Soda Co., Ltd.
*AND IF YOU FORGATE,THEN I''M MAKE REMINDE TO YOU ABOUT OUR FAVOURITE "NIPPO BATTERY".*