Tree House Education & Accessories Ltd IPO Message Board (Page 9)

Shreedhar, should we go for Tree house
If yes for how many lots

Thanks in advance

Sreedhar
Is it fair to apply in Tree house, waiting for ur comments.

Manappuram Finance, a non-deposit taking NBFC and India’s leading gold loan company, is entering the debt capital market with a maiden public issue of secured redeemable non-convertible debentures (NCD) of face value Rs. 1,000 each on 18th August 2011 to raise Rs. 400 crore with an option to retain another Rs 350 crore, taking the total fund raising to Rs. 750 crore.



The issue, rated ‘AA-’ by CARE and Brickwork, indicating high safety for timely servicing of debt obligations carrying low credit risk, closes on 5th September, with an option in company’s hands to either close the issue earlier or extend the closing. The NCDs, to be listed on BSE with one NCD comprising a trading lot, would be available only in the demat form with minimum application amount being fixed at Rs 5,000 and in multiples of Rs. 1,000 thereafter.



Under the current issue, there are two different tenures being offered to investors – 400 days and 2 years. Based on the type of investor and the tenure of instrument, different interest rates ranging from 12% to 12.20% p.a. are being offered:



Particulars
Type of Investor
Tenure

400 days*
2 years

Interest rate (pa)
Individual / HUF upto Rs. 5 lakh
-
12.20%

Individual / HUF above Rs. 5 lakh
-
12.00%

Others (QIBs, corporate)
-
12.00%

Yield to Maturity (pa)
Individual / HUF upto Rs. 5 lakh
12.00%
12.56%

Individual / HUF above Rs. 5 lakh
12.00%
12.34%

Others (QIBs, corporate)
12.00%
12.34%

Interest Payment

At redemption
Semi-annual



* Rs. 1,132.25 per NCD will be paid on redemption (inclusive of interest)



Thus, the highest rate of interest is being offered to individuals / HUFs for investment upto Rs. 5 lakh at 12.20% per annum, which lead to a yield of 12.56% as interest payment is semi-annual. The interest payable would be taxable (similar to bank FDs), although there is no tax deduction at source (TDS).



Manappuram Finance has a gold loan portfolio of Rs. 6,371 crore as of 31st March 2011, comprising more than 20 lakh gold loan accounts, with 12 lakh customers served through a network of 2,064 branches. For FY11, company earned total income of Rs. 1,182 crore and net profit of Rs. 283 crore on equity of Rs. 83 crore. With net worth of Rs. 1,924 crore, gross NPAs of 25 crore (0.39%) and a very healthy capital adequacy ratio (CAR) of 29.13%, the company enjoys sound financial position along with a strong balance sheet. Funds raised via the NCD issue will be used in regular financing business.



These NCDs are for a shorter duration as compared to other NCD issues from the recent past, probably because the company in engaged in gold loans which are small term in nature, having average maturity of about 4 months. This issue is attractive for those individual / HUF investors looking to park funds in fixed investment schemes for 1-2 year’s time perspective, as the interest rate is attractive, given the shorter tenure.

Manappuram Finance to raise Rs 750 crore

BS Reporter / Mumbai August 12, 2011, 0:46 IST



Gold loan provider Manappuram Finance plans to raise Rs 750 crore through the sale of secured redeemable non-convertible debentures (NCDs), with an over-allotment option of Rs 350 crore at 12 per cent for 400 days, and up to 12.2 per cent for two years. The issue opens on August 18 and closes by September 5.

Retail investors and high net worth individuals can subscribe to 35 per cent of the issue. They would be entitled to 12.2 per cent on two-year NCDs. The bonds would be listed on the Bombay Stock Exchange. The debt instruments have been rated 'AA-' by CARE and 'BWR AA-' by Brickwork Ratings agency. Morgan Stanley, AK Capital, Axis Bank and ICICI Securities are the lead managers for the issue.



with 50 per cent of its funding accounted for by commercial banks, Manappuram Finance plans to diversify its sources. "We may raise up to Rs 2000 crore through NCDs in the current financial year," said Managing Director I Unnikrishnan.

The non-banking financial company's gold loan book stood at Rs 6,370 crore as on March 31. "Our existing capital is enough to take the loan book to Rs 15,000 crore in a year," said Unnikrishnan. The company's capital adequacy ratio was 29 per cent at the end of 2010-11, while the average ticket size of loans disbursed against gold was Rs 30,000-35,000 crore. On a quarterly basis, the company's loan book rose 20 per cent in the April-June period. "Of this, I would attribute seven per cent to the appreciation in gold prices," said Unnikrishnan.

MANNAPURAM NCD BREAKING NEWS

ManappuramFinance to
raiseR750 cr via bonds
Pure-play gold loan company Manappuram
Finance on Thursday joined a growing breed
of financiers opting to raise debt in a rising
interest rate regime and increasing market
volatility, and said it will raise R750 crore
through from bond issue. The nonconvertible
debenture issue, opening on
August 18 and closing on September 5,
offers interest rate up to 12.20% annually on
the two-year bond. The face value of each
bond is R1,000 with a minimum subscription
of five bonds and will be listed on the BSE.
The fund raised will be used for various
financing activities, including investments
and ending, Manappuram Finance managing
director I Unnikrishnan said on Thursday. It
will also be used for capital expenditure and
working capital requirements, he said.

- SOURCE ET OF TODAY

sharanpuri what u say howmany bonds alloted to retail ?

"Later this month President Obama will embark on a bus tour through the Midwest that will focus on jobs. Mainly him trying to keep his." -- Jay Leno

Have some fun (related to USA)

"By the way, the ratings agency is Standard & Poor's. Who's going to listen to a company whose name translates to Average & Below Average?" -- Jon Stewart


"We've always been told our kids and grandkids are going to have to pay for our reckless spending. Now WE have to pay?!" -- Jimmy Kimmel

ITS BAD NEWS FOR SHRIRAM NCDS SPECIALLY FOR INVESTORS LIKE ME WHO USES LOAN AMOUNTS.

TOTAL OVERSUBSCRIPTION IS 3 TIMES BUT QIB IS ZERO IMPLYING RETAIL OVERSUBSCRIPTION OF AROUND 4-5 TIMES.

MUTHOOT FIN N MANNAPURAM ALSO COMING ON 26 AUGUST 2011 WITH BETTER RATES .

SO STOP PAYMENT CUD BE A VIABLE OPTION MAINLY FOR LEVERAGED CUSTOMERS LIKE ME

Motilal oswal :

http://www.motilaloswal.com/researchreport/Downloadfile.aspx?mode=112&filename=634486709423061914.pdf

Hi Sreedhar
Welcome Back. We are all glad to have u back.
Somehow, KKN seems to be sticking to the new Stock Mkt Msg board and appears in the IPO board in a Ltd way. We hope to see more of his ideas & views also.

Hi friends,
I just now put in my HDFC ASBA Retail appn for 400 shares. Amt Rs 29400 was auto tfrd into ASBA funds hold. So it works out to 147 per share (ie 153 less discount 6). Hope allotment will be @ realistic price. I hope to get part price diff refund also.

any information about shriramcity subscription

RETAIL SUBSCRIBED 1 TIME...

Dear IPOAnalyst,

SOME FACTS AGAINST EACH OF YOUR POINTS

Please see my response against each of your points----
1. The company in the past 3 years has had very low operating cash flows (loss in 2009)
THIS IS TRUE FOR ALL HIGH GROWTH COMPANIES..

2. Every year it has diluted equity to raise money
EVERY YEAR THE VALUATION HAS INCREASED

3. It is capital intensive
AGREE WITH U AND THIS ACTS AS A ENTRY BARRIER FOR UNORGANISED PLAYERS

4. Risk of rentals eating away margins as it has not got owned properties
THIS IS CONTRACDICTING POINT NO. 3. IF IT IS OWNED THEN U WILL SAY CAPITAL INTENSIVE

5. Sudden change in accounting of Intangibles 1 year prior to the issue, From 10 years to 30 years for acquiring Business commercial rights
IT IS NOT SUDDEN CHANGE BECAUSE COMPANY HAS CAPITALISED Business Commercial Rights ONLY IN FOR FIRST TIME FY11. RHP PAGE 156

6. Auditors comments to financials A) In FY2011: Significant delays had been observed in depositing income tax with the appropriate authorities in large number of cases . - AGREED B) In FY2009 : internal control systems for the purchase of fixed assets were inadequate since the purchases were made without inviting quotations. - AGREED C) In 2008 : Auditor was not allowed to carry physical inspection of inventory - PLEASE DO NOT TWIST WORDS. RHP PAGE 12 SAYS IT WAS NOT REQUIRED AND HENCE NOT CARRIED OUT.

7. In March 2011 out of profit of 9 cr , company has not made provision of 1.17 cr of bad debts which company cannot recover, this will impact valuation significantly.
RHP PAGE 13 SHOWS THAT AS OF MARCH 31, 2011 ONLY 93 LAKHS IS OUTSTANDING FOR > 6 MONTHS. THIS IS JUST A STANDARD RISK FACTOR MENTIONED.

Many more issues which clearly indicates this issue is a skip (THIS IS UR PERSONAL CALL, WHICH I APPRECIATE)and our member’s money should be protected. The only tree which I can see in my house is cactus tree if I put money in this issue.

sameerjaipur

i dont know about the over subscription fig

as co says first come first serve it means applicant should be alloted in full or nil but their one of the group co shriram transport did prorata allotment ...


but sbi did first come first serve or rejected ....

lets see what happens

Hi
Thanks to reply if this is wiseful to invest in this IPO , in this market scinario,

I would like to invest only for gain on Listing.

Dear Gem,
R u back? If yes I'm glad.
In ur view how many NCDs will be alloted if applied today?

Dear Shreedhar,
In which points do you want my clarification? There are lot of issues because of which I feel this company does not deserve this multiple and one should protect their money:
1. The company in the past 3 years has had very low operating cash flows (loss in 2009)
2. Every year it has diluted equity to raise money
3. It is capital intensive
4. Risk of rentals eating away margins as it has not got owned properties
5. Sudden change in accounting of Intangibles 1 year prior to the issue, From 10 years to 30 years for acquiring Business commercial rights
6. Auditors comments to financials A) In FY2011: Significant delays had been observed in depositing income tax with the appropriate authorities in large number of cases . B) In FY2009 : internal control systems for the purchase of fixed assets were inadequate since the purchases were made without inviting quotations. C) In 2008 : Auditor was not allowed to carry physical inspection of inventory
7. In March 2011 out of profit of 9 cr , company has not made provision of 1.17 cr of bad debts which company cannot recover, this will impact valuation significantly.

Many more issues which clearly indicates this issue is a skip and our member’s money should be protected. The only tree which I can see in my house is cactus tree if I put money in this issue.

Thanks

WHO STILL NOT APPLY IN SHREE RAM CITY FINANCE NCD WAIT FOR 4 DAYS

MANNAPURAM COME ON 16^TH AUGUST 2011

WITH

750 CRORE NCD

SAME RATING AS SHREE RAM CITY

EXPECTED INTEREST>>>>>>>>>12.6 FOR RETAIL

FOR QIB>>>>>>>>>>>>>>>11.85

SO WAIT....