VA Tech Wabag Ltd IPO Message Board (Page 58)

Dear SJ / GEM & other boarders,

good night. I will read tomorrow though my applications in hard copy are ready.

Thanks

xxx

442

you have to wait till 4 am in morning

coz today i will not sleep till 4 am


otherwise wake up in morning and read


LOLLLLLLL

Have patience buddy

abhi 26 ghanta bacha hai main 5 ghante ke pehle dunga

yane ki

tere paas 20 ghanta hai padhne aur apply karne ko

Regards

Dear SJ,

Awaiting your report pl.

Regards,

xxx

LEKIN GEM

KYA IS IPO ME APPLY KARNA CHAHIYE KAAA


PROFIT MARGIN TO 4% HAI AUR F.D. MEIN 12 % MILTA HAI..?



5 KA FACE VALUE TO BHAO 1350 KYUN HAI..?


PROMOTER KO SHARE 13 RUPEES MEIN MILA HUMKO 1350 MEIN KYUN DIYA...?


AUR YEH INSTITUTION KO KYUN SHARE BECH RAHA HAI....?


HUMKO ZYADA KYUN NAHI DIYA..?


AUR YEH ESSOP KA RATE HUMKO KYUN NAHI DIYA


AUR SP TULSIAN YEH BOL RAHA HAI WOH BAL RAHA HAI ?

PHIR KYA WOH GALAT HAI KYA....?



PHIR YEH 7-8 TIMES KYUN SUBSCRIBE HOGA



LOLLLLLLLLLLLLLLLLLLL....................

HA HA AHA HA HAAAA HA HA

SJ

7-8 HOGA VATECH MEIN......

check

aRYANrAJ
432
I ALSO AGREE WITH YOUR COMMENTS. I TOATALLY DISAGREE WITH SJ AS YOUR POINTS LOOK VALID TO ME ALSO.

HOWVERE, ITS DIFFICULT TO MAKE SJ UNDERSTAND . IN MY OPINION HE IS "AADHA PAAGAL" OR MAY BE "POORA PAAGAL".

HE IS A JOKER FOR ALL OF US.

BILLI KE BHAG SE CHEENKA PHOOTANA. SJ KA GALATI SE EK ANALYSIS SAHI NIKALA, PAR WOH TO LAST 10 IPO MAIN ALMOST SABME TEJI HAI. AB WOH GADHA APNE AAP KO BADA ANALYST SAMAJH RAHA HAI. JAB BAZZAR MAIN TAGADI KOOTAI HOGI TO SAARE ANALYSIS BHOOL JAAYEGA.

KHUD TO MAREGA SAATH MAIN APNE CHELE-CHAPATON KO BHI MARWAYEGA. IS PHALTOO IPO MAIN 5 KA MAAL 1310 MAIN BADHIYA BATA RAHA HAI. MOORKH KANHI KA.

432-434 ARYANRAJ

Previously i thought you had ggood accounting background but i am very depressed. Plz you are my best friend. Dont behave like this

Your Doubt:
------------------------------------------------------------------------
Dear Sj

1. Funding working capital requirements of the Company;
2. Construction of a corporate office at Chennai;
3. Implementation of global IT systems (i.e. buliding a server based computer system)

Please tell all boarders that in DRHP the books of Va Tech shows cash of 217 crores so why they need 125 crores from us?

Doesn't this cash is used to show false profit just like satyam's Raju used to show? If I've cash to apply in IPO why will I ask my relative to loan me? Same goes with Va tech.

Please read DRHP and guess why this cash is available but they are asking us to lend them money for working capital and construction of office and buying computers?

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ANSWER:

Server does not means buying computers. In engineering business you need servers to track machinery onsite from office or control tower through GPRS AND RIM technologies to moitor huge projects.
That not only reduce cost but also increases efficiency

You obviously have not worked in water treatment company but i have worked in water treatmenst company that is listed on nse called SUBHASH PROJECTS in delhi. the director is JAIN and relative of my elder cousin brother.

Whats wrong in that. yes it is also building office furniture and also funding some working CAPEX because excessive increase in order book to 3000 crores


The cash in its books that has been audited will be used for Acquisition purpose. So they are not touching it. They will go for acquistion of smaller companies with advanced technology in global markets which they have said in many press releases

Do you think ICICI Ventures were fulls and did not audit accounts before investing in it 5 years ago ....? If their Cash balance was fake then they would have got caught by PE firms. PE FIRMS ARE NOT FOOLS. tHEY DO DUE DILIGENCE EVEN STRICTER THAN ACCOUNTING FIRMS WHO ARE PAID TO SHOW MANIPULATED ACCOUNTS. tHEY ARE PUTTING HUGE MONEY AND HIRE SMART GUYS...

NOW WHY SHOULD THEY TOUCH THAT MONEY SAID ASIDE FOR AQUISITION FROM IPO PROCEEDS.

EVERY COMPANY LISTS ITSELF TO AATRACT MORE BRAND VISIBILITY AND INVESTORS.

THEY HAVE ALREADY SO MUCH CASH READY FOR AQUISTION. THEY ARE JUST LISTING THE COMPANY BEFORE THAT AND USING EXCESS IPO PROCEEDS FOR GENERAL REQUIREMENTS SO THAT THERE ACQUISTION PLAN THROUGH CASH SET ASIDE DOES NOT GETS DISTURBED IN THESE PURPOSES.



YOUR NEXT DOUBT:

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that between 20th to 24th August 2010, the 4 promoters, employees and existing PE investors have, in aggregate, already sold 10.2% stake in the company to a couple of funds and to their merchant bankers Enam and IDFC, at Rs. 1,231.55 per share (close to lower end of price band) for cash. This transaction, just a month before IPO opening, shows the confidence (or lack of it) and the vested interest of all the parties involved - the 4 individual promoters (having average cost price ranging between Rs. 3.14 to Rs. 11.72 per share), company’s employees (whose effective cost of shares is about Rs. 82.4 under ESOPs), existing PE investors as well as the merchant bankers.

----------------------------------------------------------------------------------------

ANSWER:

YES THEY RAISED MONEY TO SET ASIDE CASH FOR AQUISTIONS. WHATS WRONG IN THAT.

THE PROMOTER ON CNBC SAID THAT IN IPO THEY ARE NOT SELLING ANY SHARES ...THATS ABSOULTELY RIGHT

BUT MANY COMPANIES HAVE DONE THAT

EVEN SKS MICROFINANCE SOLD SHARES TO NARAYANMURTHY AND GEORGE SOROS BEFORE IPO

SO WHATS THE PROBLEM IN THAT

ESSSOPS ARE PROVIDED AT CHEAP RATE AND ARE PART OF BONUS OF EMPLOYES UNDERSTOOD AND NOT AN OPTION TO INVEST

SO IT IS GIVEN AT HIGHLY DISCOUNTED PRICES

YOU DONT HAVE IDEA OF ESOP THEN GO AND READ ABOUT IT

IF I GIVE YOU ESOP OF SHARE AT 1300 RUPEES AND MARKET PRICE IS 1300 THEN WHAT PROFIT will that employee earn and what bonus he got...?

he just got shares like public and did not get any money as renumeration.

GO AND READ HOW ESSOP IS PRICED AND WHY IT IS DONE...FIRST

ARE YOU WORKING IN THE COMPANY THAT THEY WILL GIVE YOU SHARE AT ESSOP RATE ..?


WHEN YOU START A BUSINEES YOU ARE ALLOTED SHARES AT 10 EUPEES FACE VALUE ONLY

THEN YOU MAKE A BUSINESS AND GROW IT. IF BUSINESS EARNS PROFITS WHICH IS ADDED BACK TO SHARE CAPITAL AND THE VALUE OF YOUR SHARE GOES TO FROM RS 10 TO 1000 RUPEES ALSO

HAVE YOU RUN THE BUSINESS THAT YOU WILL BE GIVEN SHARES AT FACE VALUE

DID YOU START THE BUSINEESS

WHAT STUPID LOGIC YOU HAVE...?



YOur last doubt
--------------------------------------------------------------------------

One more question my friend Sj sir,

PAT margins are below average at 4%. So why would I give money to Va Tech and not take FD with 12.5% accumlated interest? :-)

________________________________________________________________________________________

Answer:

AS PER ICRA REPORT IN DRHP AT THE END


ITS MARGINS IN 2010 IN INDIA IS 9%

THIS IS BECAUSE THEY WERE OPERATING AT TURNKEY BASIS

BUT NOW GOVERNMENT

has allowed 100% FDI and infrastructure status to water business

so now they will give Built Operate Own transfer BOOT model and TOT Transfer on transfer basis model to companies like vatech

That commands margin of 20%

ANd 4% margin is in europe . But now after they have established base their and BOOT project are started they will get 12% margin in europe as welll

PLUS IN SUB SAHARAN AFRICA AND MIDDLE EAST WHERE WATER IS ABSOLUTE NECESSITY

AND MANPOWER IS CHEAP

THEY WILL OPERATE AT MARGINS EVEB HIGHER THAN INDIA




NOW UNDERSTOOD


PLZ DO NOT CONFUSE OTHER BOARDERS

AND WASTE MY TIME


I GOT DELAYED BY HALF AN HOUR ON VA TECH REPORT BCVOZ OF YOUR SILLY ANALYSIS


FIRST LET ME COMPLETE THE REPORT

ILL PASTE IT

THEN YOU CRITISIZE ME


ANYWAYS YOU SEEM TO BE EGOISTIC GUY WHU DOES NOT READ FACTS

AND JUST BELIEVES WHAT HIS READS


ON THE OTHER HAND I READ FACTS

I DONT CREATE FACTA ON MY OWN


SO MY BEST FREIND ARYAN DO NOT CONFUSE PUBLIC


YOU DO NOT WANT TO APPLY AVOID VA TECH


LET ME COMPLETE MY JOB MERE DOST MERE YAAR.....MERE HERO.....



NO OFFENCE INTENDED


I AM JUST IRRITATED AS MY DEADLINE IS APPROACHING FOR REPORTS THICK AND FAST

SJ,
my previous message was for Cantabil.

SJ,
but the allotment is going to be very thin,since 125 crore...
Should we still apply, if retail goes above 15 times, then no assurance of allotment even on 1 lac application.

One more question my friend Sj sir,

PAT margins are below average at 4%. So why would I give money to Va Tech and not take FD with 12.5% accumlated interest? :-)

The promoters claim that they are not selling a single share in the IPO. However, page 85-86 of the RHP states that between 20th to 24th August 2010, the 4 promoters, employees and existing PE investors have, in aggregate, already sold 10.2% stake in the company to a couple of funds and to their merchant bankers Enam and IDFC, at Rs. 1,231.55 per share (close to lower end of price band) for cash. This transaction, just a month before IPO opening, shows the confidence (or lack of it) and the vested interest of all the parties involved - the 4 individual promoters (having average cost price ranging between Rs. 3.14 to Rs. 11.72 per share), company’s employees (whose effective cost of shares is about Rs. 82.4 under ESOPs), existing PE investors as well as the merchant bankers.

Taken from SP Tulsian's report. Can you tell me the reason please? I'm novie in market and need to clarify all things in mind before investing hard earn money.

Dear Sj

1. Funding working capital requirements of the Company;
2. Construction of a corporate office at Chennai;
3. Implementation of global IT systems (i.e. buliding a server based computer system)

Please tell all boarders that in DRHP the books of Va Tech shows cash of 217 crores so why they need 125 crores from us?

Doesn't this cash is used to show false profit just like satyam's Raju used to show? If I've cash to apply in IPO why will I ask my relative to loan me? Same goes with Va tech.

Please read DRHP and guess why this cash is available but they are asking us to lend them money for working capital and construction of office and buying computers?

Dear,chemcho i completely agree with you.Sir you keep on you good work .
i appreciate your work.Do not care about ravi, gem or sj.They are just new kids who have yet to get experience as they have just started flying.You are a senior member of this board.mein app ko ek batt batata ho agar ipo jyada retail me subscribe hota hai to analyses saari bekar hai ho agar koi nahi apply karta to saari analyses is of no use.Just check the subscription in retail and go for it.Jab doodh ke danth abbhi abbhi nikle ho to mulayam cheega khani chaiye chana chabanan se danth tooth jate hai.This is not for you this is for the person who will understand after reading posts.
Thanks
chandigarh punjabi

427 Anonymus

Chalo main phir se aapko cantabill analysis deta hun yeh lo

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85. Sj Sep 19, 2010 10:41:02 PM IST Report Spam
Sahranpurji Gem and other Boarders

Go for Canatbil full blast...for listing

1)Its well established brand in delhi as you may be knowing and north west areas

2)Cantabil offers complete range of formalwear, party-wear, casuals & ultracasual clothing for men, women and kids in the middle-income group. Initially, Cantabil was started as a men’s wear brand, over the last 10 years, it has become a complete family wear brand with addition of women’s wear in 2007-08 and kids wear in 2008-09.

3)The funds are intended to be utilized as under:
1. Establishment of new integrated manufacturing facility (Rs 31cr)
2. Expansion of Exclusive Brand Outlets (Rs 25cr).
3. Additional Working Capital (Rs30cr).
4. Repayment of Debt (Rs20cr) and for General Corporate Purposes.

4)Its Pat has grown from 3 to 5 to 14 crores 2008 to 2010 i.e. 100% CAGR

Its sales has grown from 73 to 113 to 202 crores from 2008-2010 i.e. 40% CAGR

its EPS has grown from 6 to 12 to 17 i.e. 70% EPS growth (read this as not diluted coz diluted is 15...still growth is good on EPS front)

5) Now it operates on disount retail format. Internationally if you go to Germany and all over EuROPE . i HAVE BEN TO FRANKFURT PERSONALLY FOR MBA Training....WOOLWORTH operates on same model for many other variety of products....it sells like hell

6) Brand name is established and quality of products are good...product portfolio is complete under CANTABILL AND LA FANSO brands.

7) Now obviously it has low operating margins coz it is into discount retail. But it plays volume gain. People rush to it shops all the time coz there is 50-70% discount all the time...50% is flat most of the times...!! I have bought clothes from Connnaught place in Delhi so i know....

8) The EPS for FY 10, on the post issue capital (Rs 14.32cr) comes to Rs 10/-. At the upper band, the company is demanding a valuation of 13x. This compares well with the peers in the sector, like Kewal Kiran Clothing (14PE), Koutans Retail (12PE) and Provogue (25PE). So it will give good listing gains. Coz it can easily beat Koutons and provouge in product portfolio and pricing and play volume game.. i am totally confident...its fabric is also at par and its designing and fashion sense is quite good. I personally buy WLS Van Huesen Blackberry at premium prices coz i am fashion conscious. Now if i get same par designs at good fabric quality why will i go for WLS etc...esp. middle class people will be die hard customers of Cantabill as they have been in north western region. Just go its outlet in Connaught and see the crowd during every month or footfalls when discount is there every month. YOU WILL NOT GET PLACE TO KEEP YOUR FEET IN THE SHOWROOM..!!

9) It will open 160 more retail outlets this year. that will put its total outlets to 600 approk. Even if i aasume 70-80 lakh sales every year that is bare minimum and pessimistic outlook as it has been fetching 1.5 crore from existing stores you are looking at 400 crore worth of sales at least in FY2011...tHAT Translates into doubling of sales from current levels.

10) Risks are:

Aggressive expansion plans may put pressure on the operating profitability as the company might adopt pricing strategy to gain market share in newer regions.

a) Increase in fixed costs such as rentals to have an impact on operating profitability.

b) Highly fragmented and competitive market, dominated by the unorganized sector.

c)Crisil rating of 2 due to risk of expansion and competition.

So discount EPS if not 90% increase but 50% growth due to higher operating and fixed costs. Plus side interest costs to be reduced as patt of IPO will go to repay debt of 30 crores i guess will balance that out.

I think it will give 30% listing gains or if held till october quarter reults will increase to 50% type of gains...

PEG or PE to growth ratio is 10 PE/ 50% EPS GROWTH is 0.50. That means you can expect price target fair price at even if you take conservative 30% EPS growth instead of 50% is Rs. 180



Regards

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So i hope you got idea

Anonymous guys, feel you guys are thrashing VA Tech just for the sake of it. If you guys are against applying for this ipo, don't apply. Its enough to let know your opinion just once.
The members like Sj are doing a good job. Looks for their track record before rubbishing their findings.

Dear 427 Anonymus

Chalo thik hai aap Va tech maat bharoo

Par Cantabill mat chodna nahi to main khud aaapki vaaat lagane aungaa

LOLLLLL.........!!!


i HAD GIVEN ANLYSIS

EVEN SHREEDHAR HAS GIVEN

AAP SHURU SE POST PADHO NAA MIL JAYEGA

MAIN THODA STUDY ,MEIN BUSY HUN

PLZ SORRY

AAP DEKH LONA CANTABILL FORUM MEIN

BOHOT DETAIL ME DIYA HAI MAINE AUR SHREEDHAR NE

Regards


Aur plz anonyums ke saath niche naam likhiya

chinta maat kariye koi aapka naam leke apko gaali nahi dega agar aaap ache post likhenge to


Jo karega phir to aap jaante hoo ke main unke phoodneee mein mahir hun hi

Lolllllllllllll

415. Sj

Thanks for giving detailed pointwise response. However we are entitled for our respective views. I will stick to my view n you to yours.

These european acquistion was a very expensive one for Va tech wabag & this expensive millstone around its neck is the reason for paltry 4 % NPM It can very well slide to loss the moment 50 crore from total 650 crore sundry debtor amount turn into NPA.No wonder the promoters & its investment bankers were in a hurry to come with this expensive IPO. Suzlon,Everest Kanto,Punj LLOyd are still suffering due to expensive acquisition n are on verge of bankruptcy.

SEBI should not allow these new cos to come at such expensive valutions. TCS & COAL INDIA are ok as they have a 20-30 year old track record but certainly not with Va tech.

Everybody has got its own risk appetite .Whoever can take risk let them take but MAIN JAANTE BHUJTE MAKHI NAHIN NIGAL SAKTA SO I WILL STAY AWAY.

On the contrary amongst all this hype I think Canatbil to be a better play as it is also closing tomorrow. This IPO is not being hoghlighted & since QIB ,HNI & retail portion are closing tomorrow so chances of allotment are also better for retail imvestors in cantabil whenn comapred with VA Tech.

Could you give a similar detailed analysis of cantabil as I think it will be the dark horse n can give better return than Va Tech due to better allotment n low PE.

Keenly awaiting your detailed inputs on Cantabil. Keep up the selfless good work.

422 chemcho sir

ab unique ID ho gayi hai to koi kaise fake rakhega

dusre account se kareg tub bhi to usko account kholne ka form to bharna hoga naa

aur jaab bhi aap login karte hoo aaapki IP address is site ke moderater read kar lete hain

Agar koi admi same Ip se apne ghar pe baith kar computer karega

to ek se aacount khol nahi payega

khol bhi lega to Chittorgarh pakad lega sir


Understood


Dont worry

Now nobody will call you mad

But you also stop calling other people mad

Baki sahi galat to bhagwan ke haath me hai


Aap kisi ko kyun judge karte hain



AAP ADVICE KARIYE BAKI GUSSA SIDE MEIN RAKHYIE

AAPME ITNE MATURE ADMI HOKE AISI BATEIN LIKHTE HAIN


MAIN APSE 15 YEARS YAA JYADA CHOTA HUN AUR MAIN APKO MATURITY KA GYAN DE RAHAN HUN

MEREKO BOLNE MEIN HI SHARAM AA RAHI HAI YEH MATURITY KI BAAT

AAP PLZ MATURED AUR SAMJDAAR INSSAAN KI TARAH BEHAVE KIJIYE


BAAAKI SAAB BHUL JAYYIYE

TUB DEKHIYE KOI BHI AAAPKO PAGAL NAHI BOLEGAA


dUE RESPECT TO YOU


sTOP THIS PLZ.....CHEMCHO SIR

iT IS GETTING IRRITATING NOW

Chemcho,

I just could not ignore your message without replying. Thats why I am responding you. You made my day bhai. I am just laughing like anything after quite sometime on seeing your message stating that myself and Ravi bangalore are same. I am just a beginner in stock market and dont even know some terms that you guys are talking. If you have doubts, check some of message to shreedhar asking about what is short selling.

Like SJ says, Get well soon bhai.

Gane.