VA Tech Wabag Ltd IPO Message Board (Page 72)

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Dear Anonymous

pl. see page 57 of DHRP & you may notice the shooting up of figures under sundry debtors indicating sales without timely realizations or heavy sales on credit affecting profitability.

Anonymous

I COULD NOT FIND ANYTHING WORRY ON PAGE 157 ITS "RELETED PARTY DISCLOSURE"

KINDLY CLARIFY UR DOUBTS THAT U SEEN IN DRHP.....

SORRY THE ISSUE PRICE IS PUBLIC LOOTING FOR A TEN RUPEE SHARE THEY ARE
ASKING RS.2300/- I FEEL INVESTOR SHOULD ALSO CONSIDER BETTER COMPANIES AVAILABLE IN SECONDARY PARKET LIKE TATA MOTORS,SHREE CEMENTS
CASTROL,CLARIANT ITC ,TISCO ENGINEERS INDIA,BHEL WITH FAR BETTER PROSPECTS AND ASSURED GROWTH AND FAR BETTER DIVIDEND YIELD . IT IS LONG TIME FOR SEBI AND FINANCE MINISTRY TO WAKEUP AND PUT A REGULATORY BODY TO SCREEN THE ASKING PRICE AND THEIR GIVING DIVIDEND YIELDS TO PROTECT THE RETAIL INVESTOR FROM FALLING INTO THESE VENTURES WHERE THERE ONLY MANIPULATED LISTING GAINS AND THERE AFTER RETAIL INVESTOR IS SIMPLY . IF ONE LOOKS IMPARTIALLY HE WILL FIND THAT BANKS OFFER A BETTER SAVINGS A/C RATE OF 3.5 % WITH NO UNCERTAINITY . AFTER COLLECTION AND HUGE MONEY FROM RETAIL INVESTORS INNOCENT PUBLIC PEOPLE FALL IN DITCH LET US NOT FORGET MANAKSIA-AND OTHER PUBLIC ISSUES WHERE LAKS OF RETAIL INVESTORS LOST THEIR HARD EARNED MEAGRE SAVINGS TO THESE PLOYS. SEBI SHOULD ENSURE THAT A PULIC ISSUE IS NOT PRICED ABOVE THE YIELD OF MINIMUM TWO % DIVIDEND YIELD SO THAT PEOPLE PARTICULARLY RETAIL INVESTORS INSTEAD OF JUST LOOKING FOR MANIPULATED LISTING GAIN TO ACTUALLY CONTRIBUTE A STABLE AND LONG TERM FUND FOR INDUSTRIAL GROWTH AND COUNTRY'S PROSPERITY. I SINCERELY HOPE FELLOW MEMBERS WILL OFFER THEIR COMMENTS.THANKS RETAIL INVESTOR

vatech issue size is not 125cr.Its issue size app rs480 cr.
125 cr is only fresh equity sale plus app.2768000 shares are for sale from existing shareholders

Rs.5 FV so P.E. will double. So 60+ P.E.
Kindly correct me If I am wrong.

RATING 4 BY ICRA

agraval gi apki baat thik hai nahi bahut thik hai.

what is the rating of this ipo

YAAR 1310 ISS IPO KE LIYE BAHUT JYADA HAI. SHARE BHI KHALI 5 PAID UP HAI. ISSASE TO CAREER BAHUT ACCHA LAGATA HAI.

MARKET BAHUT HIGH PAR HAI. KANHI MARKEY TOOT GAYA TO YEH SHARE 1000 KE UNDER BOL JAAYEGA.

LAALACH BURRI BALA HAI.

2 PAISE KAM KAMANA THEEK HAI PAR KANHI FAS GAYE TO YEH HAATHI JINDAGI BHAR PALANA PADEGA. 5 KA SHARE 1310 MAIN MERE HISSAB SE YEH AB TAK KA SABE MAHNGA PRICED IPO HAI.

SAVDHAN INVESTORS

Company Name
Offer Price
(Rs.)
Premium
(Rs.)
Kostak
(Rs. 1 Lac Application)

Indosolar Ltd.
29 to 32
0.50 to 0.60 (Paisa)
--

Tirupati Inks (FPO)
41 to 43
7 to 8
1800 to 1850

Career Point Infosystems
295 to 310
135 to 138
1700 to 1800

Eros International
158 to 175
34 to 35
1800 to 1850

Microsec Fin
113 to 118
29 to 30
1900 to 2000

Ramky Infrastructure Ltd.
405 to 468
60 to 62
1800 to 1900

Orient Green Power
47 to 55
--


Electro Steel Systems
10 to 11
1 to 1.50


Gallant Ispat
50 (Fixed Price)



VA Tech Wabag
1230 to 1310
290 to 292
--

CTV Network
100 to 110 (Approx)
20 to 21
1700 to 1850

Ashok Buildcon
280 to 300 (Approx)
--
--

@ gem , sj

125 crores issue size & price band is 1310..... so , it must be a very small issue..... how much shares they r offering ???

all r so bullish on this ipo , but i think it's very very small ipo & subcribe heavily & lottery base allotment will be done......

SJ

FY'10 NOS ARE HERE, IN THE NEW REVISED DRHP


http://www.enam.com/EnamOffer.aspx?ModID=8d23ea43-e291-4407-9a1c-477850e72efb

FRESH LOOK AT VA TECH AFTER PRICE BAND:-


1) fy'10 sales = 1233 cr
2) fy'10 pat = 49 cr
3) no.of eqsh post ipo = 1.07 cr
4) n.worth post ipo = 525 cr

5) fy'10 eps = 46
6) fy'10 bv = 490
7) asking pe @1310 based on fy'10 nos = 29 times
8) asking p/bv is 2.7 times.

9) its peers ivrcl trades at 40 pe based in q1fy11 nos, other peer trades around 25-30 pe.

i could not able to found the reason for slow growth in sales of the co for fy'10 over fy'09, pat was muted because of 65% increase in depriciation and 225% increase in tax provisons.

AROUND 1.9 LAC SHARES ARE OFFERED UNDER ESOP IN AUGUST 2010 @ RS.181, THAT WILL SURE CREATE SOME SELLING PRESSURE ON LISTING DAY APART FROM USUAL PRESURE.

i dont have its Q1FY11 NOS, that will give fair idea of future.

I REQUEST SJ ADN SREEDHAR TO PROJECT ITS FUTURE.

ITS ASKING PE BASED ON FY'10 NO IS 29, IF I ASSUME A 25% GROWTH FOR NEXT TWO YR THEN;-

FY '11 EPS = 56, SO PE = 23 TIMES
FY ' 12 EPS = 70, SO PE = 19 TIMES

BUT THE BIG QSTN IS WHETHER 25% GROWTH FOR NEXT 2 YR POSSIBLE IN THE SECTOR, I DOUBT LOOK AT THE RESULT OF ITS PEERS IVRCL/NCL/PUNJ ETC, EVEN L&T WILL STRUGGLE TO GET 20%.

CONCLUSION : IT COULD TRADE AT 30 PE ON CURRENT YR EPS OF 56 , SO THE PRICE SHOULD BE POST LISTING AROUND 1680 - 1720.

Dear SAM

That is a trick question..plz dont ask trick question..Lol

Well ASHOK AND EROS BOTH ARE GOOD

ITS LIKE YOU ARE ASKING ME TO SELECT BETWEEN APPLES AND ORANGES

However i am not knowing date of Ashoka Buildcon and have to study more

On face of it looks good but i have to study in detail

I will give you advice on which is better in line of business

its too early right now

Apply in eros for now

Then we will think about Ashoka

The amount you do not get in eros you can add for ashoka

let me study first.

Regards

Setu

@SJ....Thanks

Also need guidance between Ashok buildcon & Eros international for purely long term investment.

@ SAM

SURE....

I AM JUST IN FINAL STAGES....I DO ANALYSIS ON FRIDAY NIGHTS AND SATURDAYS....

SO WILL BE READY WITH MY PROJECTIONS AND ANALYSIS OF VA TECH WABAG

Regards

Setu

Issue size is 125 + 353.7 = 478.7 crores. 125 is fresh issue and rest is offer for sale.

Very small IPO,just 125 cr.
Allotment will also be thin.

@ SJ/Sreedhar/Gem
Now that the price bands & expected date of VA tech IPO is out, please provide forward erning & PE projections for this issue.

@ SJ...I can see the same conviction of SKS in your va tech posts, can you pl share your research info on this script. Will be helpful to understand the long term potential of this issue.