RPP Infra Projects Ltd IPO Message Board (Page 13)

Guy's...

RPP-Infr....IPO not supporting ICICIDIRECT!!!!!!!!!!!!

Exactly Spacenoxx, thats what I want to say, RPP Infra is a donkey, it may run a few metres, but defintely not going to complete the race, If the market situation is bad, it may not run at all, Ramky Infra a bigger company is availiable at a PE of 18, whereas RPP comes at an PE of close to 22, from my side its an avoid.

Anybody willing to take the risk and ride a few metres can do so, Iam here to guide the small new IPO investors, the experienced ones on the board know when to get out, but those of you just into the IPO market, please dont take the risk with this one.

68. Narasimiah narasimhan "Price collapse is also a good buying opportunity at times."

That is true but you are missing the point. The original poster meant that the Tarapur Transformer IPO was very highly priced @75 which remains a fact whether you were able to avarege it out to 39 or even 25. The point is @75 it fleeced money from retail investors and R.P.P also looks to be doing the same. It doesnt necessarily mean R.P.P may not give listing gains. It might, but eventually, may come down to much lower than the issue price which is what experienced folks here are trying to tell people.

70. cpb : Read news paper. Banks have stop supporting micro security company. Even govt is against that after series of suicide in AP.

RPP infra ka IPO aaj open huwa hai ki nahi ? ICICI direct nahi dikha raha hai.

Dear Sreedhar,

Many thanks for the information provided by you and the strategy to to adopted w.r.t to the forthcoming FPO/IPO. However one is still not sure whether to go for the maximum limit of Rs.2 lac per application or stick to the old limit. Could you please tell what would be your strategy.

SKS MICRO CMP 645, I DO NOT KNOW WHY ITS FALLING SO SHARPLY CAN ANY BODY TELL ME

o not apply for listing gaind it is risky

Dear Chem cho
Your comments about RPP Infra make sense. I am also thinking of avoiding subscribing to this IPO.

However your comment about Tarapur Transformer and the reasons for the price collapse after the IPO, are both wrong. I was allotted 415 shares in the IPO @ Rs.75/-. This collapsed thereafter to less than Rs.30/-. However, since I am of the opinion that this scrip has a future, I have gone on increasing my inventory, buying at every dip, so much so, the average purchase price to me is now only Rs.39.55, about 10% more than the prevailing market price. I am sure that this gap will also be bridged.

Price collapse is also a good buying opportunity at times.

N.Narasimhan

Dear Sreedhar,

Shipping corporation will hit the market in early december
If I apply the refund of Gravita in RPP infra then I will be able to use that in SCI also

In case of MOIL I am not much upbeat because the refund of powergrid will be applied in MOIL so It will have more than 20 times subscription so chances of making money is very low
So I will go with RPP Infra in full load. although It is also a small issue and chances are low but at this time It seems that It will not subscribe more than 15 times.

I will take chances in MOIL with the refund of
powergrid

What is ur strategy?

1) Retail Individual Limit has been increased from existing Rs 1,00,000 to Rs 2,00,000. Thus Bids in Individual Category less than Rs 2,00,000 will be categorized as Retail Investor while Bid value more than Rs 2,00,000 will be categorized as HNI Bidding. Consequently Cut off price facility would now be available for bid value upto Rs 2,00,000.
2) For Categories QIB( FII, FI, IC, ,MF, OTH ) and NIB( NOH, CO ) the minimum bid value has been increased from existing Rs 1,00,000 to Rs 2,00,000. Thus if bid value for the above mentioned sub categories is less than or equal to Rs 2,00,000 the same would be rejected by the system

How to apply...ICICI Direct.com if not offering?

THOSE WHO ARE TAKING ADVICE OF OPERATORS CAN APPLY BUT IF YOU WANT TO TAKE MY ADVICE IT IS AN CLEAR AVOID EVEN IF IT SUBCRIBES HEAVALY
1) MARKETS ARE RANGE BOUND IF THE MARKETS TANG THEN YOU WILL HAVE TO LOSE 30 TO 49 %
2)MANAGING DIRECTOR MR P .ARUL SUNDARAM IS DISQULIFIED TO BECOME AN DIRECTORUP TO FIVE YEARS UPTILL NOV 2012
3)COMPANY HAS DEBIT OF 34 CROES
4)COMPANY IS HAVING PROFIT OF 8 CROES AND ASKING FOR 170 CROES MARKET CAPITAL AT RS 75 IT IS COSTLY
5)INVESTMENT BANKERS COMFORT SECURITIES COMFORT SEC WAS RESPONSIBLE FOR TARAPUR IPO WHICH IS NOW HALF THE ISSUE PRICE
6) DO YOU HAVE MONEY LEFT TO APPLY IN COMMING GOOD ISSUES WHERE RISK IS LESS AND GOOD PROFIT
YOU MAY GET LISTING GAINS IN THIS IPO BUT DONOT APPLY FOR 2LAKHS OR MORE THAN RS 15000/

This is black horse. can subscribe for listing gains

KOSTAK 2400 1 LAC
4400 2 LAC

Dear Natarajan & friends,
SCI is to open around 28-29 Nov as per economic times:

The disinvestment calendar is busy between the later part of No-vember and early December. The Manganese Ore issue is due to hit the market on November 26, followed closely by SCI’s, which is likely around November 28-29.

if you remember I had applied for Tirupati Inks made 3600 per application which was the next best return after Vatech wabag(I do not consider careerpoint becos it was lottery).I utilised the same amount for Tecpro & made further 2k in it.This is the best way to get max returns per 1 lakh of your money.

Now this is my strategy for Forthcoming issues.I will apply for RPP which will close on 22.SCI Will open on monday 29 Nov & close on 2 Dec.I will apply for SCI by cheque & hence will utilise the same money for both issues.I will apply second lot of my money in MOIL which I will again utilise in Hindustan copper which opens in Dec6 .
So this is the best way to maximise the potential of our money.I think every Issue will give almost same returns as MOIL will be heavily subscribed & people will not be left with any money for SCI which will give fantastic returns as it will be subscribed less.

Retail people have herd mentality & applied in heavy numbers for Tecpro,Eros,Ashoka,Microsec etc & got least returns & in some cases losses.After that disheartened they did not apply for Oberoi which I had applied & made good money.
Out of box thinking & following different path than followed by retail herd is necessary for maximising your earning potential.See lot of people will go for MOIL & hence get miniscule returns.

This was first choice analysis of gravita;;;;;;;;;;;;;

IPO ANALYSIS: GRAVITA INDIA LIMITED: LESS GRAVITY, HIGH RISK - PROJECT STILL AT DRAWING LEVEL, HURRY FOR IPO.


The Jaipur based manufacturer of lead alloy, lead oxides and lead products – GRAVITA INDIA LIMITED is entering the capital markets on 01-11-10, through an IPO. The company intends to issue 36, 00,000 equity shares of Rs10 each,in the price band of Rs 120-125. The issue closes on 03-11-10. Keynote Corporate Services are the BRLM.

BACKGROUND AND BUSINESS:

First generation entrepreneurs, Dr. M.P. Agarwal and Rajat Agrawal, are the promoters the company. Gravita India Limited, established in 1992, is the flagship company of the Gravita group. GIL manufactures lead alloy, lead oxides and lead products by recycling and smelting. The company is also into trading, which contributed nearly 45% of its revenue in FY 09.

The Company’s finished products find application in the battery industry, apart from the glass, ceramic, pharmaceutical, paint and chemical industry.

GIL has a subsidiary Gravita Exim Limited, a company specializing in providing turnkey solutions and consultancy services on engineering and design for the secondary lead companies. Gravita India Limited and Gravita Exim Limited together are able to provide a complete solution right from setting up plants to providing value added lead products in the lead metal market.

The Group owns eight lead manufacturing units, out of which two are in Asia and five are in African continent. Apart from lead processing, the Gravita Group is engaged in merchant trade of lead scrap, lead ore, lead concentrates, lead battery scrap and lead products.


FINANCIALS - RS IN CRORES


      
08
      
09
      
10

TOTAL INCOME

      

49.17
      

109.00
      

166.97

NPAT
      

2.61
      

5.42
      

13.22

EPS
      

10.33
      

21.42

      

13.95



OBJECTS OF THE ISSUE:

RS IN CRORES

To set up additional manufacturing facilities at Jaipur and new facility at Wada, (Maharashtra)

      

13.02
To invest in overseas ventures at
- Sri Lanka- Navam Lanka Limited
- Senegal - Pagrik Senegal SA
- Honduras - Gravita Honduras SA


      

5.85
To invest in setting up manufacturing facilities at Australia, Belarus, Chile and Mexico

      

18.60
Margin money for working capital requirement and for general corporate purposes.

      
10.00


MATTERS OF CONCERN:


1. The Company proposes to use the issue proceeds amounting to Rs.200 lacs for purchase of land from group Company, namely, Jalousies (India) Private Limited. There has been no independent land valuation done for this purpose.

2. GIL has not yet identified land for Maharashtra unit and the Company is in the process of exploring overseas location, for set up of new project.

3. The company has not placed orders for the machineries and other equipments proposed to be purchased. There could be cost and time over run.

4. In last three years the Company has under utilized the installed capacity for various products.

5. The average cost of acquisition of the equity Shares of face value Rs.10/- by the Promoters is Rs. 6.66.

6. Impact of currency fluctuation -having a global presence with import and export trade, the company business faces currency rate fluctuation volatility. Any change in the currency rates may have an impact on the financials of the Company.


7. International changes in price of Lead metal may affect the performance.
In last one year, the commodity market has seen a wild swing of lead price movement in a range of $880 to $2447 per MT.


8. Lead industry is one of the health hazardous industries and is governed by strict environmental laws and regulations which may become more stringent in times ahead.

9. Lead industry in India is highly competitive in nature.

10. The company has no history of dividend payment.

11. Due to change in the EXIM Policy in the year 2002, the demand for Lead Oxides, primary product for the company, declined and the unit was out of production for a period of four years from 2001-02 to 2004-05.

12. For the financial years March 31, 2007, 2008 and 2010, the company had a negative cash flow from operations to the tune of Rs.51.77 lacs, Rs. 35.82 Lacs and Rs. 1,811.95 Lacs respectively.

13 The company had defaulted to Bank of Baroda in the past.
In the year 2000 the company had to shut down operations for five years due to non-availability of working capital funds! The outstanding was repaid to bank in F.Y. 2005-06 as a onetime settlement of Rs.90.00 lacs.

14. The implementation of the project is at a very preliminary stage. Any delay in implementation of the same may increase the capital cost and affect returns from the project.

15. The exact location for the over seas projects are yet to be identified. There are no assured dividends from the investments envisaged in overseas ventures.

VALUATION AND RECOMMENDATIONS.

The company imports 70% of its raw materials requirements. For any reason, if the rupee value depreciates, the company’s margin will be severely hit. At Rs 120 -125, the company is demanding a valuation of 13x, on FY10 earnings, on the post issue capital of Rs 13.62cr. This appears expensive considering the company’s past track record and the purpose for which the funds are being raised. There are no listed companies in this segment, for comparison.

So leave funda analysis & check subscription more than 5 times in retail--apply

one more

http://www.firstchoiceipoanalysis.com/2010/11/ipo-analysis-rpp-infra-projects-limited_17.html

I think its a clear Avoid

Pranaam Pandit Ji



http://greenworldinvestor.com/2010/11/16/r-p-p-constructions-review-and-analysis-expensively-pricedsmall-construction-junk-ipo/

IPO Market is all about listing gains now. What happens to the share later.....who cares ! So simple -watch OVERSUBSCRIPTION ( to hell with its fundas), apply , go for the kill on listing and be out . Then wait for the next prey. Ha , Ha , Ha-- enjoy the party till it lasts.