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Saturday, September 12, 2009

IPO DETAILS: PIPAVAV SHIPYARDS LTD

Price Band- Rs.55-60, Face Value- Rs.10
Issue opens on- 16th September 2009, Wednesday
Issue closes on- 18th September 2009, Friday
QIB Book- 5,09,10,135 shares (60% of Net issue)
HNI Book- 84,85,022 shares (10% of Net issue)
Retail Book- 2,54,55,068 shares (30% of Net issue)
Employee Reservation- 6,00,000 shares
Total No. of Shares offered- 8,54,50,225 shares or 12.8%
Equity Shares outstanding after the Issue--665,798,388 Sh
Equity Shares outstanding prior Issue-580,348,163 Sh
Total Size of the Issue- Rs. 469.97 Crs. - Rs. 512.7 Crs. (Approximately)
Lead Manager- Kotak, SBI, Enam, Motilal, JM, and Citigroup
Registrar- Karvy Computershare Private Limited.
Debt equity ratio- 0.7:1


Major PE investors-
Punj Lloyd currently holds 22.34% stake in the company at Rs.27, Amout- Rs 350cr. Sea King Infra(SKIL)at Rs.10 and they combine holds 45.5% stake.
Trinity capital- Rs.25, Amount- Rs.114.75cr, Post issue holding- 6.89%, 2i capital- Rs.25, Amount- Rs.100cr, Post issue holding- 6.01%, New York Life Investment Management India Fund(NYLIM)- Rs.25, Amount- Rs.66.52cr, Post issue holding- 4%, Citadel MT Trading- Rs.45, Amount- Rs.103.5cr, Post issue holding- 3.45%, SCB Asian Infrastructure Fund- Rs.45, Amount- Rs.51.75cr, Post issue holding- 1.73%, Blackstone, Merrill Lynch, Galleon, Manz Retail (a Future Group entity), Deutsche Bank -All at Rs.80/Sh- below 1% - stakes in the firm.
Other are Infrastructure Leasing & Finance Services (IL&FS), Export Import Bank of India (EXIM Bank), UTI Mutual Fund and Industrial & Development Bank of India (IDBI).


Company details-Pipavav is located on the south western coast of Gujarat and claims that it will be the biggest shipyard upon completion in India. The shipyard is spread over an area of 198.92 hectares, which also comprises of a special economic zone (SEZ).It plans to use the proceeds for the construction of shipbuilding facilities, repair and offshore business and for general corporate purposes.


Valuations- The net worth of Company was Rs. 12,55.076cr as of March 31, 2009. The book value per Equity Share was Rs.21.63 as of March 31, 2009 Pipavav is being valued at 1.1X EV/Order book even at the lower end of the price band. This is as compared to 0.2X for Indian shipyards and 0.3-0.5X for global shipyards, said investment bank Noble Group in its research note. Given the uncertain order book, the valuation seem to be a little aggressive.
Pipavav has said that it has an order book of $920 million, which includes 12 offshore supply vessels from ONGC and an order for 22 dry bulk carriers from three European shipping companies. The order with the European customers is being renegotiated given the downturn,though the impact on order book is not known.
Pipavav Shipyard, co-owned by SKIL Infrastructure and Punj Lloyd, is building a shipyard in Gujarat at a cost of about Rs 3,000 crore, of which it has already spent Rs 2,086 crore.

Saturday, September 5, 2009

MY STOCK PICK: GILLETTE INDIA

As we all know that India is enjoying the demographic dividend, as more than 40% of Indian population is between the age group of 20 – 40 years, and with the population of 1.18 billion in India a 40% means nearly 47.2 cr people are young and if we assume that from this young population minus females needs shaving kit every morning then for next 20-30 years the consumption & sales of these products would be growing Right!! and the company would be delivering consistent performance.But this is just an assumption..what product am I talking about….. It’s GILLETTE!!
Gillette India is an NSE BSE listed company jointly promoted by House of Poddar Enterprise and Gillette Company, U.S.A. (Gillette). A company engaged in manufacturing shaving blades (7 O’clock, Ejtek shaving brush, Gillette Mach- 3, Mach 3 turbo).Just look at the details and you will understand

Details as on 04-Sep-2009
Share price- Rs.1,008.35;
Market Cap- Rs.3,290.94 cr;
52 Week- H- Rs.1,079.90; L- Rs.520;
P/E- 29.09; EPS- Rs.34.70;
Book value – Rs.165.27;
Dividend – Rs.12.50; Fv- Rs.10;
Dividend Ex-date- 15-oct-09;
Net Sales- Rs.661.51 cr; PBT- Rs.177.01 cr; Total Debt- 0.00;
Net Profit- Rs.113.13 cr; Reserves- Rs.458.30;
Total Share Issued- 3,25,85,217 shares;
Public Shareholding – 36,73,368 shares; Public Shareholding in %- 11.27%;
Promoter’s holding- 2,89,11,849 shares; Promoter’s holding in %- 88.74%;

Procter & Gamble India holds 41.02 % stake in Gillette India, even one of the most smart investor is into it. R.S. Damani holds 1.06 % in Gillette India. Gillette India,have its competitors like HUL,Dabur,Colgate,Godrej in personal care segment but non of these can compete Gillette in male personal care segment, (you can survey it by your self)
Gillette India is a best buy at Rs.800- 850, and should accumulate on further dips.
Pass on the legacy to your future generation. A DEBT FREE COMPANY at price of Rs.800-850 is definately a best buy. Gillette India have given 1:1 bonus in 1989,
I am not giving the price target as I believe this stock is meant for long term holding and not for shortterm gains. Yes it will not give you instant gains,it is a lazy kind of stock but with an extremly promising fundamentals.Daily vol is around 20,000 sh from which 35 % is on delivery basis.
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