IPO Analysis and Overviews

After a long break, the IPO market in India is finally picking up pace. After CARE’s IPO last week, it is now the turn of Bharti Infratel's IPO to hit the market today 11 Dec, 2012.

Bharti Infratel, a subsidiary of telecom major Bharti Airtel, is the company's leading telecom infrastructure player. It is planning to raise about Rs. 4,500 Cr. from the issue. The IPO if successful will be the biggest after state-run Coal India's IPO in 2010.

High competition and regulatory issues have troubled the Telecom sector as a whole, over the past 2 years. With this in mind, the Bharti Infratel's future definitely comes in questionable frame. What is its right price? And should you subscribe to the Bharti Infratel IPO? Let's find out..

Credit Analysis and Research Limited is in its 19th year of existence and is the second largest rating agency in India, after CRISIL.

It has a strong foot-hold in the rating of debt instruments, bank loans & facilities and rating relationship with 4,644 clients as of September 30, 2012. It has also, so far, rated the highest number of IPOs, since IPO grading was introduced in India.

The issue opened on 7th December, 2012 and closed on 11th December, 2012. So, let's know more about CARE and whether you should invest in the CARE IPO...

L&T Finance Holdings, the financial subsidiary of the engineering giant Larsen and Toubro went public with its much-delayed IPO on the 27th July, 2011. This is the first public issue from the house of L&T, since the parent’s listing way back in 1950.

The IPO came at a time when the global markets were turbulent and retail appetite in the primary market was virtually absent.

So, should you invest in L&T Finance holding IPO??

Lovable Lingerie Ltd, branded women's innerwear manufacturers, wants to raise fund through an IPO of Rs 93.28 crore for its capacity expansion and brand building. Its brand "Lovable" is amongst the top 3 most preferred brands in the lingerie segment. The financial performance of the company has been good over the last 6 years.

The Lovable Lingerie Ltd IPO price band (Rs 195-205) is fixed at 19.5-20.5 P/E on EPS of FY-11.So, should you add it to your wardrobe of Stocks?

The MCX IPO went live on the 22, February, 2012 with much excitement around it!

MCX is the largest commodity futures exchange in India, enjoying a leadership position in metals, bullion and energy futures. Financial Technologies is its biggest promoter. With, MCX being the first commodity exchange to be listed on the bourses, there are many news reports and expectations doing the rounds

So, does MCX IPO have what investors want? Let’s find out…

The IPO of Coal India has already tasted sweet success on the bourses. It is now time for another IPO; this time of a mini navratna company, Manganese Ore India Ltd (MOIL).

Manganese Ore India Ltd (MOIL) is India’s largest producer of manganese ore. It fulfills about 50% of the total requirement of manganese ore in India.

The price band for the initial public offering has been fixed at Rs. 345- Rs. 370. A further discount of 5% on the final issue price will be given to retail investors and MOIL’s employees. So, what should be your action on the MOIL IPO?

India's largest gold loan lender Muthoot Finance, a part of the diversified Muthoot Group, is all set to tap the capital market. It plans to raise up to Rs 900 Cr. from an initial public offer (IPO).

The company would be issuing 5.15 crore fresh equity shares leading to a dilution of 13.85 % of the promoters holding.

The price band for the issue has been fixed at Rs. 165-175 per share.

So, should you invest in the Muthoot Finance IPO???

Power Finance Corporation (PFC), a Nav Ratna PSU, specializes in financing power projects and is known to be the ‘Financial Backbone of the Power Sector’. It came out with its Initial Public Offer in 2007 and since then has reported robust growth in its financials. The company has now come out with a Follow-on Public Offer which will enable it to raise close to Rs. 3500 Cr. from the sale of fresh equity while the Government will raise close to Rs. 1100 Cr. from the sale of part of its stake in the company. The price band for the Power Finance Corp FPO offering has been fixed at Rs. 193 – 203.

PFC was recently classified as an Infrastructure Finance Company which gives it an operational edge over its competitors. While this augurs well for the company, certain concerns like rising interest rates and a concentrated loan book, yet remain.

So, considering these factors, does this ‘Financial backbone of the Power Sector’ provide a good investment opportunity?

After the huge success of Coal India Ltd.'s IPO, the Government of India has put up another offer in the stock market. This time it has come up with a Follow-On Public Offer (FPO) of another Navratna company Power Grid Corporation of India Ltd. (PGCIL) which made a phenomenal debut in the capital market 3 years back. The price band for the follow-on public offering has been fixed at Rs. 85-Rs. 90. A further discount of 5% on the final issue price will be given to retail investors and Power Grid’s employees.

PGCIL is one of the largest transmission utilities in the world. It is responsible for planning, executing, owning, operating and maintaining the high voltage transmission systems in the country. Its core operational area includes development of inter-state transmission systems and grid management.

So, can the Power Grid FPO power your portfolio?

Aiming to raise approximately Rs 40,000 crore through disinvestment this fiscal, the government has been divesting its stakes in PSUs through IPOs and FPOs. This The Shipping Corporation of India’s FPO is another such divestment for the same. Incorporated in 1950, Shipping Corporation of India Ltd (SCI), a Navaratna PSU, is India's largest shipping company, operating in cargo passenger-cum-cargo and tanker services.

The price band for the initial public offering has been fixed at Rs. 135- Rs. 140. A further discount of 5% on the final issue price will be given to retail investors and SCI’s employees.

So, what should be your action on the SCI FPO?

After the disinvestment done by the Government through IPOs of Coal India and MOIL and the FPO of Shipping Corporation of India, it’s time for the private sector to raise funds from the primary markets. Tata Steel Ltd. one of India’s largest steel producer, is coming out with an FPO to raise around Rs. 3500 Cr. A global major, Tata Steel is also the 7th largest steel producer in the world.

The price band for this follow-on public offering has been fixed at Rs. 594- Rs. 610.

So, what should be your action on the Tata Steel FPO?