SVPCL Limited IPO Message Board (Page 52)

one can get good returns on this ... too good

Grey Market Premium is Rs. 7 to 7.50

Dear Sir,
Can anybody tell me the grey market premium for svpcl ltd.

good company. apply for listin gain.

Tiny company, low discounting - Oct 18, 2007 - Review By Mr P S Tulsian

SVPCL Ltd. is entering the capital market on 22nd October, 07 with a public issue of Rs.34.50 crores by issue of equity shares of Rs.10 each in the band of Rs.40 to Rs.45 per share.

The company is a small player in manufacturing paper products like note-book, work-books and other educational stationery and catering to educational sector. Topline for FY 07 was placed at Rs.71.50 crores with PBT of Rs.7.87 crores and PAT of Rs.5.94 crores resulting in an EPS of Rs.5.13 on equity of Rs.11.57 crores.

The present capacity of three plants located at Hyderabad, Vijayawada and Viszag is 19,500 TPA which is operating at about 65% utilization. Inspite of this, the capacity is being expanded to 34,000 TPA with a capex of Rs.37.10 crores which is largely financed by proposed issue.

Blue Bird a large size paper product manufacturer, went public in December 06 and issued shares at Rs.105 per share, and now the share is ruling at Rs.60. This is inspite of the fact that, the company had topline of Rs.454 crores with EBITDA margin of 12.7% and an EPS of Rs.7.50. This company had EBITDA margin of 16.5% with EPS of Rs.5.13 for FY 07.

Post issue, equity of the company may rise to Rs.19.30 crores, and since, the existing capacity is already underutilized, we are skeptical about how much would get added by new capacity additions, to the topline of the company. Working capital requirement of the industry is also very high, which would be an obstacle in improvement of the turnover. Hence, not much increase in financial performance of the company can be expected in FY 08, hence maybe EPS decretive.

Not much can be expected from this company and share at the upper band of Rs.45, looks fully priced, leaving no scope for capital appreciation.

A mediocre company, fully priced.

Hi All,
Market rumour is that Rakesh J is interested in this company.
He has taken a challenge that this company will overtake Reliance industries in the next 5 years.So don't miss this golden sorry aluminium opportunity which comes once in a while in a lifetime.Pool all your resources and apply in as many demat accounts as you can and say tata bye bye to all including your money.

People who have burnt their fingers in BLUE BIRD and RUCHIRA PAPER will certainly stay away from this ipo as they are a weeping lot

open 22-10-07 closes 26-10-07 price band 40-45

Stay Away from this issue
if still interested just remember Ruchira paper, Blue bird
good investment opportunity are in pipe line

but SVPCL turnover has grown from Rs 10 Crore in year 2002 - 2003 to around Rs 55 Crore for first 9 months of financial year 2006 - 2007.
, So Your Advice ?

Forget this.Not worth a second look.
Trying to make hay while the sun shines.
Don't lose money,Stay AWAY.

remember bluebird .paper companies are not making good profits in this bull run .go for rpl,mundra or edelweisses instead of this ipo