Sheela Foam Ltd IPO Message Board (Page 12)

Latest subscription status at 4.40 PM

QIB - 15,00,001 - 137000 shares applied - 9.13%
NII - 11,25,000 - 4040 shares applied - 0.36%
RII - 26,25,000 - 2,55,520 shares applied - 9.73%

over all subscription 3,96, 560/52,50,001 i.e. 7.55%

I think Sheela''s promoters are following our discussion and percentages are increasing...agar follow kar rahe ho to bata du k ekdum bekaar price rakhi he..kam rakhni chahiye thi...

We are reserving our funds for Laurus Lab IPO....

Naam bade , par darshan chhote ..... allottees of Sleepwell will be sleepless ...!

Sheela Foam Day 2 as on 30 November 2016

FII :- Zero
NII :- 2400 Shares
RII :- 74380 Shares ( 0.03% of Subscription)

Hard chances for this IPO to sail through :( This is GreenSignal pharma PART 2 in making. The High Price Band of IPO seems to have putoff NIIs and Strong Dollar has made FIIs ignore this IPO.

Latest subscription status at 2.30 PM

QIB - Nil
NII - only 1900 shares 0.0017%
RII - 0.0337%

Flop IPO..if Sheela ki jawani had kept price range in between Rs 400-450, it would already have oversubscribed on the day 1....magar afsos....

QIB is not participating in this IPO

Wait till 12.00 PM tomorrow....

Avoid Sheela Foam Ltd...
High Valuation,,, and Business Note Good For Long Team...
Promotors want To Sell 0.33 Paisa And Ipo 730Rs.....

Any update on the latest subscription details please

Experts advice sheela & luras apply or avoid ?
thanks in advance..

Highlights from IPO review by Dilipbhai Dawda
Source : Chittorgarh.com

( 1 ) Except having issued few shares at a price of Rs. 150 per share (on Rs. 5 FV basis) in March 2006, it has issued most of equity at par and has also issued bonus shares in the ratio of 1 for 1 in 1994 and 1996 in the ratio of 11 for 1 in 2004 and 1 for 2 in June 2016. Its current paid up equity capital of Rs. 24.39 crore remains same as this is secondary offer.

( 2 ) It has reported net profit of Rs. 65.95 cr. on a turnover of Rs. 803.75 cr. for first half of current fiscal. If we annualize this earning and attribute to the current equity then asking price is at a P/E of 25 to 27 based on lower and upper price band, which appears to have been fully priced in for the immediate future trends. As per information given in RHP, the company has no listed peer to compare with. Company reaps benefits of lower raw material prices for higher margins which may not continue going forward.

Conclusion: Demonetization has taken a toll of recent IPO of Green signal that could not garner the required quota of QIB. Even earlier IPO of Varun Beverages too received poor response than expected even when demonetization was not there. This shows shaky mind set of big ticket investors in current weaker trends of secondary as well as primary markets. As the main raw material prices have shot up drastically in recent times, company may find it difficult to maintain the earnings shown in the recent past

New Issues Analysis(IPO) - Sheela Foam

By Geetanjali Kedia

Sheela Foam is entering the primary market on Tuesday 29th November 2016 to raise Rs. 510 crore via an offer for sale (OFS) by promoter, in the price band of Rs. 680 to Rs. 730 per share. At the upper end, OFS will comprise of 70 lakh equity shares of Rs. 5 each, which represents 14.32% of the post issue paid-up share capital. Issue closes on Thursday 1st December.

Sheela Foam manufactures mattresses and other foam-based home comfort products such as furniture cushioning, pilliows, bolsters, cushions, sofa-cum-beds, under the brands Sleepwell, Feather Foam, Restwell and Lamiflex, accounting for 65% of H1FY17 sales. Balance revenue come from sale of technical grades of polyurethane (PU) foam for industrial use. Enjoying 20-23% share of the organised mattress market in FY16, company has an extensive pan-India distribution reach of 100 exclusive dealers, 2,000 exclusive retail dealers and 2,500+ multi brand outlets. It has 11 manufacturing facilities in India (aggregate installed capacity of 1.23 lakh TPA) and 5 in Australia (10,500 TPA), through wholly owned subsidiary Joyce Foam Pty Ltd.

While FY16 revenue grew 10% YoY to Rs. 1,567 crore, as EBITDA jumped 90% YoY to Rs. 193 crore, as raw material prices (primarily polyol and TDI which are crude oil and natural gas dependent) declined sharply, leading to increased EBITDA margin of 12.4%, vis-à-vis 7.2% clocked in FY15. This coupled with lower interest cost pushed net profit higher to Rs. 105 crore, from Rs. 43 crore in FY15, leading to an EPS of Rs. 21.48 for FY16. Thus, net margins which have historically been in the 2.2-3% range, shot up to 6.8% in FY16, all thanks to lower crude prices.

Revenue for six months ended 30th September 2016 stood at Rs. 804 crore, and EBITDA margin improved further to 14.3% on back of falling crude prices, earning EBITDA of Rs. 114 crore. Cost of raw materials which stood at ~65% of revenue in FY14, are down steeply by 1000 bps (!) to 55% of revenue, in H1FY17. Thus, company’s net margin for first half of the year has swelled to its highest ever, 8.3%, on net profit of Rs. 66 crore, translating into an EPS of Rs. 13.52 for H1FY17, on expanded equity of Rs. 24.39 crore, post 1:2 bonus issue in June 2016.

As of 30th September 2016, consolidated net worth stood at Rs. 405 crore, while total debt was Rs. 86 crore, mainly short term. Cash and equivalents stand at Rs. 133 crore, leading to cash surplus of Rs. 10 per share. Thus, company is cash rich, and entire offer proceeds being OFS, will flow to the promoter. Promoter stake, currently at 100%, will shrink to 85.68% post offer. Company’s working capital position is also sound – both inventory and debtors outstanding for 1 months, and remaining more-or-less at these levels over the years.

As long as crude oil and natural gas prices rule soft, company stands to benefit in the form of lower input costs and hence higher margins. Thus, outlook for short term (read H2FY17) remains positive. However, if the tide turns, its financial take a 180 degree turn, as till FY15, its net margins were very low at sub-3% levels. Thus, uncertainty laments on the stock.

At the upper end of Rs. 730, company will have a market cap of Rs. 3,560 crore and enterprise value (EV) of Rs.3,514 crore, which leads to a PE multiple of 34x and 28x, on FY16 and FY17E EPS respectively, while EV/EBITDA multiple is 18x and 15x. While there are no comparable listed peers, an indicative comparison can be made with discretionary household product makers such as paints (Asian, Berger, Kansai) and sanitary ware (Cera, Somany) which are curenlty ruling at PE multiples in the range of 26-42x, based on FY17E earnings. Thus, pricing of the issue is not too stretched.

However, given the market conditions, where existing blue chips and quality mid-caps are ruling at mouth-watering valuations, investors and market may not pay much heed to the issue. Faulty timing may harm on the issue adversely.

Expecting subdued response given the ongoing market bearishness, coupled with near term negative impact of demonetisation, one can give the issue a miss, despite good fundamentals.

when we see sudden increase in top line in the IPO year should take the data with a pinch of salt as lot of windows dressing is done.

some factors i founds which could be window dressing
1. The net profit margin which was at 3% in FY15 has gone to 6.7% in FY 16 and for this financial year half year more then 8 percent in the current financial year. 2.Debtors levels are have gone up substantially in the last 12-15 months indicating either ‘manufactured sales’ or less demand for the products and product is just moved from books of company account to dealers book.
3. cost of some raw material has jumped 100% however this is not reflecting on cost side

4. lot of its raw material is imported weak dollar will have big impact

I would invest in indigo jet air spice will not be adversely effected from demonisation paid 17000 for flight from chennai new Delhi to chennai return

Discloser i am avoiding this IPO. Removing liquidity from market is dangerous for the economy and this discretionary expenses will have adverse effect
Thanks to Modi Ji this issue is coming at this price band. if not it will would have come close to 40 plus PE given it comes under discretionary expenses and would be very handsomely subscribed

My discount cash flow analysis

Initial Cash Flow:      $1,32,20,00,000                   
                        
Years:      1-5      6-10            
Growth Rate:      15%      11%            
                        
Terminal Growth Rate:      5%            Discount Rate:      10%
                        
Shares Outstanding:      4,87,82,808             Margin of Safety:      25%
Debt Level:                        
                        
Year      Flows      Growth      Value      
1      1,52,03,00,000       15%      $1,38,20,90,909       
2      1,73,31,42,000       14%      $1,43,23,48,760       
3      1,95,84,50,460       13%      $1,47,14,12,817       
4      2,19,34,64,515       12%      $1,49,81,65,778       
5      2,43,47,45,612       11%      $1,51,17,85,467       
6      2,70,25,67,629       11%      $1,52,55,28,971       
7      2,99,98,50,068       11%      $1,53,93,97,416       
8      3,32,98,33,576       11%      $1,55,33,91,938       
9      3,69,61,15,269       11%      $1,56,75,13,683       
10      4,10,26,87,949       11%      $1,58,17,63,807       
                        
                        
Terminal Year      $4,30,78,22,346                   
                        
PV of Year 1-10 Cash Flows:                  $15,06,33,99,546       
                        
Terminal Value:                  $33,21,70,39,954       
                        
Total PV of Cash Flows:                  $48,28,04,39,500       
                        
Number of Shares:                  4,87,82,808       
                        
Intrinsic Value (IV):                  $989.70       
                        
Margin of Safety IV:                  $742.28       
                        
What Percentage of IV comes from                   69%      
the Terminal Value:      

Since it is not practical to forecast cash flows for an infinite number of years, it’s usual to end the DCF with a terminal value.

The best terminal growth rate is 0%, and the highest you should go (for predictable businesses like HUL,Marico,dabur or some of the IT companies) is 2 to 3%.

Considering 5% terminal growth rate in your calculations is too high and not with enough margin of safety...

Also free cash flow is never 132 cr, even i take the recent last 3 years avg its around 98Cr...(pls note cash flow is real free cash flow and not just cash from operation , substract capex )....to run maintain the business and not the investment capex which is used for future growth

so if you picked these numbers from screener or any other website then think twice , they are many times wrong....

If at all DCF model can be applied to this company then, as per my calculations fair value should be 550-610 rs considering 15 & 11 % growth rate with discount of 10% and 2.5%...
at 730 there is no margin of safety....

Dear both,
Thanks for your analysis and using discounted cash flow model, however for everyones benefit and knowledge could you please explain a few details of this model?
You are adding the projected values as well as discounted values of cash flows to derive the intrinsic value, but i really am confused by this as dont we only need to take into account only discounted cash flows to derive present value?
Also how the pv is being calculated, it doesn''t add up to 10 years pv plus terminal yeras pv?
Finally how the 69% factor is coming out for the share price?

Thanks a lot and hope you would be kind to answer my queries.

GMP is non function No trade demonitisation

Warburg Pincus-backed Laurus Labs eyes $660 mn valuation in IPO


Hyderabad-based drugmaker Laurus Labs Ltd is seeking a valuation of as much as Rs 4,521 crore ($660 million) through an initial public offering that begins next month.

The company has priced the IPO in a band of Rs 426-428 a share. The offering begins on 6 December and closes two days later.

The total size of the offering is about Rs 1,360 crore. This comprises Rs 300 crore to be raised through a fresh issue of shares and the remaining via a sale of shares by existing shareholders. Private equity firms Warburg Pincus and Eight Roads Ventures (formerly Fidelity Growth Partners) will partially exit while Welsh Carson Anderson & Stowe will sell its entire stake in the offering.

Laurus Labs filed its IPO proposal with the Securities and Exchange Board of India in August. It received regulatory clearance for the IPO in October.

The firm aims to use the IPO money to repay term loans and for general corporate purposes. The company registered consolidated revenue from operations at Rs 1,783.77 crore for 2015-16 compared with Rs 1,326.59 crore the year before. It reported consolidated net profit of Rs 132.65 crore for 2015-16 compared with Rs 68.36 crore the previous year.

Laurus Labs is seeking to join a string of healthcare companies that have made successful debuts on stock markets over the past year.

Diagnostics chains Dr Lal PathLabs Ltd and Thyrocare Technologies Ltd and hospital chain Narayana Hrudayala Ltd are among the companies have successfully gone public over the past year.

Hospital chain operator Aster DM Healthcare Ltd filed documents for an IPO in June while eye-care chain New Delhi Centre For Sight has received SEBI approval for its initial share sale.

The healthcare sector has been one of the best performers in terms of share price movement after listings. Drugmaker Alkem Laboratories Ltd, which went public last December, is trading at a 60% premium to its IPO price.

The IPO market in India picked up pace after four years of slow activity in mid-2014 after the BJP-led government took over.

In 2015, 21 companies raised about Rs 14,000 crore, as per stock-exchange data. So far this year, 26 companies have tapped primary markets, collectively raising more than Rs 20,000 crore, the data showed.

Kotak Mahindra Capital, Citigroup Global Markets, Jefferies and SBI Capital Markets are managing the Laurus Labs IPO.

Septa ji fair value calculation of lauras labs please

Will do once I get hold of RHP

Bank Note Ban will have ZERO effect on Sales of Luxury Items. Only poor sentiments are leading the fall in stock prices

Simply buy the falling consumer stocks

Titan, Jubilant Foodworks, Whirlpool of India, Symphony

@Bulls of India Below Rs 4000 watches are for kids!!!

A Man who wears Raymonds or a person who works at top management will not buy a watch for anything below Rs 10000

15.6. Septa Nov 29, 2016 11:52:38 PM IST

Sheela Foam Ltd IPO
may be we south Indian have different understanding....... on luxury item BTW one study done by titan showed 90% of its customers earn below Rs15000 pm.

from the study " respondents 40% belong to the income group of below Rs. 5000, 36% to the income group of Rs. 10000 to Rs. 15000, 14% to the income group of Rs.5000 to Rs. 10000 and 10% to above Rs. 15000 group." BTW that is family income not individual....

15.7. Mann Ki Baat Nov 29, 2016 11:57:43 PM IST

Sheela Foam Ltd IPO
It is economically unwise to afford a Titan watch with salary Rs 15000

He is breaking the rule of economics; he will get punished financially


15.12. BULLS OF INDIA Dec 1, 2016 10:38:52 AM IST

Sheela Foam Ltd IPO
@ Mann Ki Baat BTW SONATA watches (from TITAN): Price range starts from Rs 399 only (and that is MRP)


15.13. Mann Ki Baat Dec 3, 2016 12:41:13 AM IST

Sheela Foam Ltd IPO
@Bulls of India Below Rs 4000 watches are for kids!!!

A Man who wears Raymonds or a person who works at top management will not buy a watch for anything below Rs 10000

I DON''T THINK I NEED TO WRITE ANYTHING MORE.

Do you guys know any Debenture Issue with good Interest Rate and high credit rating???

You are right ICICI Prudential Blended Plan - B - Direct Plan (G) has given more than 10% return over a period of one year

and the best part it only has one months lock in period for exit load..... my debt fund is mix of NCD Arbitrage fund debt funds company FDs.....

one need to understand a normal FD gives 7% arbitrage give 10% so u earn 42% more even if ur tax slab is Zero at 10% slab it grows to 50% at 20% slab it grows 79% more return and at30% slab u earn 104% income


higher the bracket better to avoid FD

Don''t use brains before investment. You''ll LOOSE

Just wait and watch, if subscriptions figures are skyrocketing around 2 PM on December 1 then simply APPLY otherwise AVOID

IT IS SO SIMPLE

LOOKING AT DISCUSSION BELOW LOOKS SURELY AVOID

Considering lots of negativity for this IPO, I''m not applying to this IPO... Lots of problem and concerns raised on different platforms so it''s not the IPO for investor seek listing day gain like me... Investor with high risk can give a try....

Waiting for Lauras lab IPO on Dec 6 which is going to be supper hit IPO in my opinion..

Could any one please tell me how to subscribe SME?

According to Sandeep Jain of TradeSwift broking on CNBC Awaaz today , Avoid this IPO & keep money safe for Laures Lab

On 1st day only 1 % subscribed & that too by mad retailers of green signal who blindly subscribe every IPO.QIB Quota including FIIs is still not subscribed.

Seems like this IPO will also be extended like green signal & will be in line with another pharma company Laures Lab

Lets see what happens next
Just Wait & Watch