IRCON International Limited IPO
(A) History and Business of the IRCON International
(i) Ircon International Limited (IRCON), is a Mini Ratna government company incorporated by Central Government (Ministry of Railways) under the Companies Act, 1956 on 28th April, 1976 originally under the name Indian Railway Construction Company Limited, IRCON has widespread operations in several States in India and in other countries(Malaysia, Nepal, Bangladesh, Mozambique, Ethiopia, Afganistan, U.K. Algeria & Sri Lanka Now.
(ii) The Company has a long-standing reputation as a sectoral leader in Transportation Infrastructure amongst the public sector construction companies in the Country with specialization in the execution of Railway Projects on the turnkey basis or otherwise. The Company is known for its quality, commitment, and consistency in terms of its performance. After commencing business as a railway construction company it diversified progressively since 1985 to roads, buildings, electrical sub-station and distribution, airport construction, commercial complexes, as well as to metro works.
(iii) As a construction organization, the Company operates in the entire spectrum of construction activities and infrastructure services; Railways and highway Construction, Tunnels & Bridges, Railway Workshops, EHP sub-station (engineering and constructions) and MRTS being the core competency areas.
(iv) The Company has so far completed more than 120 projects in more than 24 countries across the globe, and 376 projects in India.
(B) Opportunities Ahead
(i)Railways– The main focus area of Railways would be modernization and up-gradation of identified corridors, commissioning of new railway lines doubling of about 3500 km, re-development of about 400 railway stations, feeding of about 700 railway stations with solar power, etc. High-Speed Rail Corporation set up by Indian Railways for implementing Mumbai-Ahmedabad high-speed rail corridor under Japanese funding may also afford business opportunities in the railway sector.
(ii) Roads– Development of national highways under NHDP, improvement of road connectivity in left-wing extremism affected areas, special accelerated Road Development Programme for North-Eastern Region (SARDP-NE),National Highway Inter-connectivity Improvement Programme (NHIIP), improvement in the efficiency of National Corridors development of economic corridors/feeder routes, rural roads under PMGSY, Bharatmala programme to develop road connectivity to Border areas, the emphasis would also be on the development of roads for coastal connectivity including road connectivity for non-major ports.
(iii) Electrical Projects– Indian Railways has decided to electrify 24,400 km track by 2020-21 under ‘Mission Electrification’. Ircon has also been awarded the electrification work of ‘MathuraKasganj -Kalyanpur’ and ‘Katni-Singrauli’ at an estimated cost of Rs. 305.90 crore and Rs. 258.36 crore respectively.
(iv) International arena opportunities exist in countries like Malaysia, Bangladesh, Bhutan, Sri Lanka, and Iran.
(C) Present Projects in the Kitty
(i) Presently, Ircon is executing construction of railway line in J&K, Sivok-Rangpo, Jayanagar (India) to Bijalpura (Nepal).Jogbani to Biratnagar, etc.
(ii) The setting of new rail coach factory at Rae Bareli.
(iii) Doubling projects for Katni Singrauli; Rampur Dumra Tal Rajendrapul, Kiul-Gaya, and Hajipur Bachwara; Akhaura-Agartala Rail Link projects.
(iv) Setting up of three electric loco sheds at Bondamunda, Daund, and Mughalsarai; Road over Bridges in Jharkhand under Pradhan Mantri Gram Sadak Yojna (PMGSY).
(v) Design and Construction of Civil, Building and Track Works of Vaitarna-Sachin section and JNPT Vaitrana Section of DFC project.
(vi) Construction of Railway Siding at Nagarnar, in Chhattisgarh and for Darlipali Super Thermal Power project.
(vii) Electrical works under RAPDRP-Part B Project in the State of Jammu & Kashmir and Uttar Pradesh.
(viii) Design, Supply, Installation etc. of receiving-cum-traction and auxiliary main sub-station; Metro works for Delhi.
(D) Sectorial Performance of IRCON
(i) A sector-wise comparative position for the last three years is given below:
| Sector | 2014-15(cr) | 2015-16(cr) | 2016-17(cr) |
| Railways | 2688 | 1914 | 2074 |
| Highways | 228 | 237 | 589 |
| Electrical | 13 | 199 | 253 |
| Buildings | 19 | 67 | 78 |
| Others | 2 | 2 | 1 |
(ii) Contribution of foreign projects to total income:
| Sector | 2014-15(cr) | 2015-16(cr) | 2016-17(cr) |
| Foreign | 868 | 506 | 339 |
| Domestic | 2254 | 2354 | 2915 |
(E) Interaction with Management by Bloomberg Quint
Objects of the IRCON International Limited IPO:
IRCON International Limited IPO Details:
| Current GMP: | (20)-(22) |
| Open Date: | Sep 17 2018 |
| Close Date: | Sep 19 2018 |
| Total Shares: | 9,905,157 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | Book Built Issue IPO |
| Issue Size: | 466.70 Cr. |
| Lot Size: | 30 Shares |
| Issue Price: | ₹ 470-475 Per Equity Share |
| Retail Discount: | 10 |
| Listing At: | NSE,BSE |
| Listing Date: | Sep 28 2018 |
Promoters And Management:
Promoters of IRCON IPO are: Our Promoter is the President of India acting through the Ministry of Railways. Our Promoter, along with its nominees, currently holds 99.71% of the pre-Offer paid-up equity share capital of our Company. After this Offer, our Promoter shall hold 89.18% of the post Offer paid-up equity share capital of our Company.
Capital Structure:
| (i) Authorized Share Capital (400,000,000 shares at FV@10) | 400 Cr |
| (ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (94,051,574 Shares at FV@10) | 94.051 Cr |
| (iii) Present Issue OFS to public[12%] ( 9,905,157 Shares at FV@10) | 10.5% of Paid up capital |
| (iv) Present Issue OFS to Employees (500,000 Shares at FV@10) | .531% of Paid up capital |
| (v) Reservation for QIB (4702578 Shares at FV@10) | 50% |
| (vi) Reservation for HNI (1410773 hares at FV@10) | 15% |
| (vii) Reservation for Retail (3291804 Shares at FV@10) | 35% |
| (viii) Paid Up Share Capital after the issue | 94.051 Cr |
Financials of IRCON International Limited IPO:
| 1. Assets and Liabilities Key Parameters | |||||||
| Year | Asset(Cr) | Liabilities(Cr) | Net Worth(Cr) | Book Value | Liability/Equity | RONW | debtor days |
| FY15 | 6,521.00 | 3,046.37 | 3,474.63 | 1755 | 0.88 | 16% | 53 |
| FY16 | 8,139.41 | 4,478.65 | 3,660.76 | 1849 | 1.22 | 11% | 63 |
| FY17 | 9,231.41 | 5,394.88 | 3,836.53 | 388 | 1.41 | 10% | 52 |
| FY18 | 12,778.22 | 9,016.47 | 3,761.75 | 400 | 2.40 | 11% | 60 |
| 2. Profit n Loss Key Parameters | ||||||
| Year | Revenue(Cr) | PAT(Cr) | EBITDA Margins | Profit Margins | Outstanding Shares( Cr) | EPS |
| FY15 | 3,232.51 | 563.03 | 28% | 17% | 1.9796 | 284 |
| FY16 | 2,908.64 | 393.11 | 23% | 14% | 1.9796 | 199 |
| FY17 | 3,301.35 | 383.98 | 17% | 12% | 9.898 | 39 |
| FY18 | 4,212.40 | 411.58 | 15% | 10% | 9.4052 | 44 |
| 3. Cash Flow Statement(all figures in Cr) | ||||
| Particulars | FY18 | FY17 | FY16 | FY15 |
| (i) Net Cash Generated from Operation | -2,533.23 | 919.26 | 1,441.42 | 758.55 |
| (ii) Net Cash Generated from Investment | -82.69 | -1,795.80 | -61.08 | -802.06 |
| (iii) Net Cash Generated from Financing Activity | 2,734.96 | -221.93 | -219.32 | -189.97 |
| (iv) Effect Of Exchange Difference | 1.28 | -38.46 | 108.43 | 17.33 |
| (iv) Total[ (i)+(ii)+(iii) ] | 120.31 | -1,136.93 | 1,269.45 | -216.15 |
| (v) Cash and Cash Equivalent (Opening) | 1,453.74 | 2,590.68 | 1,321.21 | 1,537.37 |
| (vi) Cash and Cash Equivalent (Closing) | 1,574.06 | 1,453.75 | 2,590.66 | 1,321.22 |
Comparison With Peers:
Recommendation on IRCON International Limited IPO:
Lead Manager of IRCON International Limited IPO:
Registrar of IRCON International Limited IPO:
Company Address:
Bid Details of IRCON International Limited IPO as on
19-Sep-2018 22:00:04 IST
Total Number of Applications in Retail Category: 922594 (approx)
Application-wise Subscription in Retail Category: 8.11X
Discussion on IRCON International Limited IPO:
101 Comments
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I was applied for IRCON IPO but units not allotted., the amount paid is about 14380 approx., which was not yet returned back to my bank account? when can i get the amount. Application Number:2400024056912729 the msg i received given below:
“DEAR INVESTOR, No allotment to Application No.2400024056912729 FOR IRCON INTERNATIONAL LIMITED( IRCON ). FOR DETAILS, PLEASE VISIT YOUR REGISTERED MAIL BOX. REGARDS, BSETEAM”
Contact your bank..
I want to gain something frim ircon ipo
For what time period i need to wait
I get allotment in ipo at 465.
Wijard can u reply?
I have clearly given my view on the listing day itself. You should have exited at 450. Please check my old comments.
At what price i sell today
Ols reply immediately
Wizard ji
Whether u will reply or not
You can exit at a Current price.
Due to poor market condition, the listing was timid.
sell between 445-450.
Listing tomorrow ?
Allotment is available inside our InvestorZone app:
https://play.google.com/store/apps/details?id=com.ommune.investorzone
YES!!!
In which site allotment shown….
Wizard ji i get allotment
At what price i should sell
Congrats on the allotment. We will decide on Listing day depending upon the market condition. Stay Connected here for more updates. Good Luck for the listing !!!
Which site ….??
Batao ji ab to ki kiss price par sell kro
At what price i should sell today
Pls reply immediately
Allotment status will be available inside investorZone app very soon. Please download our Android App from Google Play store now =>
https://play.google.com/store/apps/details?id=com.ommune.investorzone
Allotment out!!!!!!! Money starts debiting.
Yes
GMP??
Seller Circuit in GMP now traded @ Discount so 1000% chance of this open at discount price and if market is posistive on 28-09-2018 then it may try to give one chance to RII to exit at cost to cost Eg. CREDIT ACCESS.
Expected Listing => 450-455 (It is pure game by QIB & HNI)
Current GMP => – 20 (Discount)
Kostak => No Trade seen
S2 => No Trade seen
IRCON IPO
IRCON International Limited – Book Value is around ₹398 and EPS is around ₹42 – We can expect a minimum dividend of around ₹20, translating into a dividend yield of 4.2%.
IRCON – IPO Last Day Subscription Fig @ 7 P.M.
QIB – 12.29×closed
NII – 4.92×closed
Retail – 9.80×
EMP – 0.36×
Total – 9.81×
Total No. Of Applications – 893,829
Retail Appln Wise – 8.15×
Download IZ Android APP from Google play store:
https://play.google.com/store/apps/details?id=com.ommune.investorzone
All the time IPO, buyback, NCD etc info will be available inside your phone. It’s an Ad-FREE, FREE app. You will love it! 🙂
Good IPO for long term
QIB and overall response has jumped in last hour !!
Must APPLY !!!
1 apply
Should be apply for this or not ……Reply ???
Apply.
apply
What should be done apply or skip as per response
Apply.
Very poor response till now.
Please guide
IPO GMP
IRCON 15+/-1
Avaas 112+/-2
Should i go for this or not?? Today is the last day. Can i expect listing gains?
Naveen ji valuations are good and we were expecting 10-15% of listing gain but due to the timid response of QIB so far this looks distant. However, we will take a final call at around 2 PM by seeing subscription figure.
Thanks wizard ji..
but i did not apply for this
Can we expect less price than 475 in secondary market?
This is the 2nd day of the IPO, still very little response from QIB & NII, only RII is rushing. What is the matter?
The matter may be Govt. PSU company and many companies in past such as HAL, BDL, Cochin Shipyard etc have not performed well. The general elections are nearing. If QIB does not appear in good number till 1-2PM then LIC has to step in to save Govt Face.
Poor response from QIB & NIIS. Least chances of listing gains
IRCON Ltd Subscription
18/9/2018 @ 12:52:18 PM
QIB => 0.01
NII => 0.06
RII => 1.44
EMP => 0.05
RPS => 0
TOTAL => 0.49
No need to post the subscription details. They are automatically getting updated just above the comments section of this page. 🙂
It Seems employee quota will not get fully subscribed. And balance shares will go to Retail.
500000 shares for 1175 employees is a bit too much to get fully subscribed.
500000 ÷ 1175 = Average 425 shares per employee
425 ÷ 30 = Avg. 14 lots(Approx) per employee.
For 14 Lots (420 Shares) @ Rs.465 each employee need Rs 1,95,300
Let’s assume some of these employees would sell in grey to their friends if we see subscription above/near 0.8x-0.85x IMO.
And if employees are not showing confidence at all on the third day ( i.e less than 0.5x ) it would be bad news.
Employees have inside information.They are quite sure about listing.Let’s hope for the best.
GMP is going down everyday ..that’s not a good sign right ??
This happens.. But you shouldn’t worry at all!
Everyone saying that listing gain will be there in IRCON IPO but not much profit for long Term
If so then who will buy on listing day
Looks like big investors trying to keep small investors away from IRCONIPO and later it will zoom like RITES which was slow for few days after listing
So what’s the opinion on IRCON IPO
New Member to this site can ask anything on this portal and our team of expert will help them with the solutions.
IRCON IPO Review:-
IPO GMP (Grey Market Premium is just Rs. 20-30 whereas it’s offer price is Rs. 475.
Hence, one may not get much listing gains in this stock. Our recommendation is to buy any IPO only if the listing gains is expected to be more than 15-20% to balance the risks involved, funds getting struck for many days etc.
Hence, one may Skip this IPO and may buy later from secondary market as much as you want, upon seeing the listing trend etc.
Hope it helps. 🙂
FinancialIQ Wealth Management Services.
#HouseViews On #IRCON IPO
ICICI Direct Subscribe
Choice Subscribe
Antique Subscribe
Nirmal Bang Subscribe
Motilal Subscribe for Listing Gains
Ventura Subscribe
HEM Sec Subscribe
SPA Sec Subscribe
Realty developer Lodha Group’s proposed Initial Public Offering (IPO) continues to be on track and the company will be taking a call on the timing of the issue after a month, said a top company official.
“The proposed IPO is very much on the anvil. The company will decide on the *timing of the issue after the inauspicious ‘Shraadh’ period ends*,” said Abhishek Lodha, Managing Director, Lodha Developers in an email response.
“In addition to commitments from various marquee investors, the company continues to meet with investors as part of its road-show for the proposed issue, Lodha said.
“The final size of the IPO will be defined when the pricing is decided, as the IPO is part fresh raise and part offer for sale,” Lodha said.
it is nice company ….gud for long term…..monopoly in railway business …..excellent pick …Hope its Subscription will be more then 60-70 times.
Premium down heavy in ircon
Now 33-35
from where you got this GMP
Market me research karo to sab milta he sab bikta bhi he
ICICI Direct Report in terms of Valuation and Outlook
Ircon’s revenues grew at 29.4% CAGR to | 4001.2 crores in FY16-18. The order book was at a robust 22407 crore, which implies an order book to bill ratio of 5.6x on FY18 numbers, indicating revenue growth getting better ahead. At the IPO price band of 470-475, the stock is available at 10.7-10.9x FY18 EPS. Adjusting for subsidiary investments worth 700 crores, the issue is available at 9.2x FY18 EPS on the higher band, which is an attractive valuation vis-à-vis its peer companies.
Conclusion- SUBSCRIBE recommendation on the issue at the offer price only for listing gains.
IRCON International IPO
(Price Band: INR 470 – 475)
IRCON International Ltd (IRCON), a Miniratna Public Sector Enterprise, is an integrated Engineering and Construction company, specializing in a diverse range of infrastructure projects, with the primary focus on the railway sector.
Robust order book providing strong revenue visibility: As of FY18, IRCON’s order book stood at INR 224bn; 5.6x its FY18 revenues, thus providing strong revenue visibility. Given its strong execution track record, it has been successful in winning new projects, resulting in 19% CAGR in its order book over FY15-18. It secured new orders worth INR 6.1bn during FY18. It plans to focus on high value projects (> INR 5bn) to benefit from economies of scale.
Business diversification to aid growth: Over the years, IRCON has diversified into wide range of infrastructure segments, with primary focus on railways (87%) and highways (6%). It receive orders on tender and nomination basis and undertakes projects on EPC/ BOT model. It caters to both domestic (93% of FY18 order book) and international markets. Business diversification across sectors/geographies ensures that it is not overly dependent on limited clients.
Financials: Over FY15-17, IRCON’s financials were muted which picked up in FY18, recording revenue/ PAT growth of 31%/24%. Due to decline in foreign projects contribution to revenue in FY16, EBITDA margins fell to 10.6% (21.4% in FY15). Going ahead, IRCON is eyeing more foreign projects to improve growth and margins. The company has consistently paid a dividend over the years with a payout of more than 50% since FY16. It has INR 46.9bn cash & equivalents and debt of INR 32bn in FY18 making it a net debt free company.
Object of Issue: Entire issue of 9.9mn shares (10.5% of total outstanding shares) is an offer for sale by Government of India. It implies an issue size of INR 4.7bn and post-issue market cap of INR45bn (@ upper price band).
View: At the upper price band, the IPO is valued at 10.9x FY18 EPS, which appears decent given the order book position and financials (FY18: RoE 10.9%, margin 11.2%, dividend yield 4.3%). IRCON is trying to improve international business and is also looking at diversification to aid growth. There is an INR10/share discount for the retail investors. Considering the above factors, investors can Subscribe for Listing Gains.
Risks: High dependence on Indian Railways (87% of order book). A significant portion of contracts are awarded on a nomination basis, hence any change in Government policy could materially impact the financials.
IRCON INTERNATIONAL IPOView: At the upper price band, the IPO is valued at 10.9x FY18 EPS, which appears decent given the order book position and financials (FY18: RoE 10.9%, margin 11.2%, dividend yield 4.3%). IRCON is trying to improve international business and is also looking at diversification to aid growth. There is an INR10/share discount for the retail investors. Considering the above factors, *investors can Subscribe for Listing Gains*
GMP iron is 52-56 now
***********Announcement*******************
Guys whosoever reading the messages of IRCON, there is a poll running at the top of the page whereby anyone can hit at ” Apply” and ” Avoid” button. Please cast your vote. The purpose of this voting is for the benefit of all the investors’ community in this forum to know each other view before the opening of IPO. This will also help in taking a unanimous decision whether to ” Apply” or ” Avoid” before the IPO. So guys come and cast your vote.
Please note that only logged-in users can vote.
Nice idea. I request everyone to support this as we all be benefitted from this. Please VOTE!!
(Voting buttons are available at the top of this page)
Thanks. 🙏🙏
Where is the option?
It’s not showing
See On top of the page at right corner.
Apply
In so many forums people are saying this can be other Rites in making as both caters to railways. We need to understand that the business model of Rites and IRCON are totally different. Rites into consultancy business which is very high margin business and IRCON is construction company whose margins are low. In fact margins of IRCON has gone down in last 4 years as they are not getting enough foreign projects resulted in depletion of its margins from a high of 28% in FY15 to 15% in FY18. No doubt that the company has a good order book but converting it into profits would not be an easy task considering it is a Govt PSU where a lot of unnecessary hurdles comes while implementing projects. Many times tender does not get floated in time results into delay which ultimately affects margins. So in nutshell Rites can’t be compared with IRCON.
GARDEN REACH SHIPBUILDERS & ENGINEERS LTD
OPEN 24 SEP
CLOSE 26 SEP
PRICE BAND
115-118
RETAIL DISCOUNT RS. 5/- PER SHARE
LOT 120 SHARES
In which box suggest me hdfc amc ya motilal oswal pms
Plzz suggest me we take hdfc amc share ya we in motilal oswal pms
Please check your inbox.
IRCON IPO – *Market Estimates of oversubscription*:
RII = 12L Forms = 10.94X Applic. wise (Avg allotment of ~2.75 shares per lot)
NII = 13K Crs. = ~194X
Interest cost @5%p.a. for 7days = 45.55paise for 1X
Thus, for NII the costing = 194 X 45.55 paise = Rs. ~90/- per share (GMP)
And, for RII the costing = (90+10) X 2.75 = Rs. ~275/- (Kostak)
IRCON IPO – *GMP Expected*
GMP 90
Kostak 275
IRCON current GMP price is 85/90.If we didn’t find support we may see fast 70/75.
Dear Admin
Rajshree Poly is like main line IPO qib 50% HNI 15% Retail 35%. Qib quota is 14,05,000 (Less 8,88,000 Anchor Portion) 5,17,000
HNi 4,22,000
Retail 9,85,000
💡 *IRCON IPO*
275 FIX.
2550/2600 Sub To💥
95/105 GMP
IRCON International IPO
17/Sep/18 – Bid/Offer Opening Date
19/Sep/18 – Bid/Offer Closing Date
25/Sep/18 – Finalisation of Basis of Allotment
26/Sep/18 – Unblocking of Funds from ASBA Account
26/Sep/18 – Credit of Equity Shares to Demat Account
28/Sep/18 – Commencement of Trading on NSE/BSE
I had applied for 5 lots but not sanctioned, how to apply in any IPO to get sure of the allotment. L.Rangarajan, Chennai. Mob.9940468300, I remain , thanks
IRCON International IPO
No govt company had been a multi bagger. In disinvestment only government makes money . Why waste so much mind over 90 rs premium say 2500 per lot. Buy other listed companies. Buy TCS Infosys with weak rupee probably now settling between 70-75 . These companies will give better returns. Now a new way to loot the people government is planning buy backs in many PSU. What logic is this, first sell and then buy back. Do a study and from what I have known PSU at best give dividend regularly and no or little appreciation in share price. See BEL , NALCO ALL below offer price of ofs. BDL HAL ALSO no listed peer but what use.
Ircon International IPO:
Apply for Listing Gain Only
Listing gain is possible because asking price is Very attractive.
Government set IPO price very reasonable same as RITES IPO.
On listing or near term after listing it should trade at P/E of 14-15. Trading price should be 550 – 600.
One should not forget that this is government company and listing should not be like HDFC.
IRCON International IPO:
Everything – fundamentals, financial, order book good but small size IPO. Asking price is reasonable.
Issue priced at 11 P/E and 1.2 P/b.
Listing gain is sure and long-term is also Good
RITES listed at 190 & just after 45 days of listing made high of over 325.More than 60 % return.
Retail Investors can buy on listing if not allotted as allotment shall be definitely tough (Karvy is the registrar). IMO it should reach 700 level near Diwali.
Much Cheaper
Why did the Margins falling in the last few Years?
The EBITDA margins have gone down from 28% to 15% in the last few years typically due to fewer projects from Foreign countries. The percentage of income from foreign projects was around 27% in FY15 which has gone down to 7% in FY18. This is the main reason for the fall in margins. However, management is confident that in coming years the company’s foreign income will go up to 20-25% in FY20-21 which will improve the EBITDA margins going forward.
Conclusion: The management commentary can’t be taken a yardstick for investment.
Purpose of 3200 Cr loan taken from IRFC?
The company this year has taken a loan of 3200 Cr from Indian Railway And Finance Corporation for the development of 11 Acres commercial land in Bandra. The Railway will pay the Interest and principal payment. The IRCON has given a three year period to find a suitable builder and execute the projects. However, if company is not able to execute the project then it will be taken back by Railways. As far as Revenue is concerned, the company will get 8% of the revenue from the sales of commercial projects.
Gmp 109 112 ….just started .cross 125
Ircon
First day *UC*
Second day *LC*
IRCON IPO
IRCON IPO seems to be a very good stock. As the PSU is having some how monopoly and there is no peer competitor, the issue size is small, the company is having only Govt projects, the major clients are Indian Railway, NHAI, all PSUs, PWD etc, its stock may
be oversubscribed.
Lets wait and watch
IRCON International IPO:
Everything – fundamentals, financial, order book good but small size IPO.
Asking price is reasonable. Listing gain is sure and long term is also good.
After huge success of RITES it will oversubscribe in Retail also. I am expecting more than 12 times in Retail.
Very tough allotment.
I believe waste of time for Retail investors.
Kitne tak khulne ka andaja he ?
100+ premium grey market me chal raha hai aaj.. ₹3000/- to ₹4000/- per alloted application profit hona chahiye is hisab se..
I wish to buy from grey market, please guide me
Ab 500 mil raha hai
Allotment ke bad ……
how much Debt burden is there in the company?
As per DRHP, the Company has total indebtedness of 3969.7 Cr as of March 2018. The total Equity of the company is 3761.7 Cr. So Debt/Equity= 1.05( Manageable ).
Return Ratios ka Gyan( ROE and ROCE)
(i) ROE= FY14( 24.76%), FY15(16.20%),FY16(10%), FY17(10%) and FY18( 10.39%).
(ii) ROCE= FY14(31.2%), FY15(21.78%), FY16(13.28%), FY17(9.1%), and FY18(7.46%)
Conclusion: Both the return ratios are deteriorating over the years which is negative for the business.
Four most powerful tools that Warren Buffett uses to identify value stocks. If you understand them all then you can easily pick value stocks for wealth creation.
Suppose you are sitting in a beer bar with some of your friends. While drinking the beer you got idea to start your business. The business of printing T-shirts. It requires ₹1,000 to open and start that business but you have only ₹250. You convinced one of your friends sitting with you and he is agree to pay you remaining ₹750.
Now you have ₹250 as equity ( Investor’s original money invested) and ₹750 is your debt that you have to pay back. You started your business and in very first year your company has generated
Revenue = ₹200
Expenses = ₹80
Operating Profit or EBIT = ₹200- ₹80 = ₹120
Net Profit (After deduction of TAX and Interest say 20rs.)= ₹100
Now some of the important terms are as follows:
Equity or Shareholder’s equity : ₹250
Debt or Total liability : ₹750
Total Asset = Asset + Liability i.e. ₹750 + ₹250 = ₹1000
Now here we go:
ROE ( Return On Equity) : Many people don’t really understand the real meaning of ROE, they just say, divide net profit to shareholder’s equity and your ROE is ready. I am not saying they are lying but the fact is you need to understand the terms so that you can use it in your analysis part.
Now in this business
ROE = Net Profit / Shareholders Equity
ROE = 100/250 = 40%
Return on equity measures a corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested.
The ROE is useful for comparing the profitability of a company to that of other firms in the same industry. It illustrates who effective the company is at turning the cash put into the business into greater gains and growth for the company and investors. The higher the return on equity, the more efficient the company’s operations are making use of those funds.
ROA ( Return On Asset):
ROA = Net Income / Total Assets
Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets. Here is a twist, Remember that a company’s total assets is the sum of its total liabilities and shareholder’s equity. Both of these types of financing are used to fund the operations of the company. Since a company’s assets are either funded by debt or equity.
The company has no retained earnings so Reserves and Surplus would be zero.
So,
ROA = 100/(250+750+Reserves and surplus)
ROA = 100/(250+750+0)
ROA = 10%
A higher ROA represents how efficiently the company is using its total asset in its core business to generate profits.
ROA is most useful for comparing companies in the same industry, as different industries use assets differently.
ROCE ( Return of Capital Employed)
Return on capital employed (ROCE) is a financial ratio that measures a company’s profitability and the efficiency with which its capital is employed.Here Capital Employed is not the total asset, this capital is the total capital that has been used to generate profits in the company.
ROCE is calculated as:
ROCE = EBIT / Capital Employed
EBIT = Total Revenue – Expenses i.e. 200 – 80 = ₹120
Total Capital Employed = Equity + Liabilities – Reserves & Surplus
In this example Total Capital Employed = 250 + 750 – 0 = ₹1000
ROCE = 120 / 1000 = 12%
For a company, the ROCE trend over the years is also an important indicator of performance. In general, investors tend to favor companies with stable and rising ROCE numbers over companies where ROCE is volatile and bounces around from one year to the next.
Debt to Equity Ratio :
This is very important parameter that simply determines that how much debt the company has on every 1 Rs. invested by original investors
Debt to Equity Ratio : Total Debt / Shareholder’s equity
Debt to Equity Ratio : 750/250 = 3
So Debt/Equity should always be less than or equal to .5
Before every investment, Deep Company analysis is very important. The company has lots of things to observe, See the financials, concentrate on ratios and margins, compare with peers, study about promoters, keep an eye on liquidity, make sure you know the debt, know future plans, forecast the scope, speak up with indicators and press BUY button. That’s how your wisdom will save you from a massive destruction.
Grey Market activity is hotting up in iRCON
The IPO has a discount of Rs.10 for Retail Category.
Valuation ka Gyan for IRCON IPO(P/E, P/B and EV/EBITDA)
(i) Total Outstanding Shares before or after the issue= 9,40,51,574
(ii) Total Profit for the FY18= 411 Cr
(iii) EPS= 43
(iv) P/E= 11.04
(v) EV/EBITDA=9.48
(vi) P/B= 1.1875
Conclusion- The Govt has done an excellent job again to price the share at such a good valuation.
(i) Total Shares Offered are – 99,05,157
(ii) Reservation for the Employee- 5,00,000
(iii) Total Shares Reserved for Public is -94,05,157
(iv) QIB Reservation-47,02,578
(v) HNI Reservation- 14,10,773
(vi) Retail-32,91,804
Conclusion– So for a retail category, the issue size is = 156 Cr at an upper side of band.( Approx same as of Rites) In Rites, retailers put application worth approx 2400 Cr. If we consider the same bid this time in IRCON too, it will easily be subscribed around 15x in retail.
The government is divesting 10% stake or over 99 lakh shares through the IRCON IPO. The company will be hoping to garner about Rs 500 crore from IRCON. These all IPOs Rites, Mazgon Dock, Ircon are a part of strategies for the govt to improve its fiscal deficit by collecting money from the market.
*IRCON International Limited IPO*
◆ Open Date: *Sep 17, 2018*
◆ Close Date: *Sep 19, 2018*
◆ Allotment Date: *Sep 26, 2018*
◆ Listing Date: *Sep 28, 2018*
◆ Face Value: Rs 10 Per Equity Share
◆ Issue Price: *Rs 470/- to Rs 475/-* Per Equity Share *(Rs 10/- discount for RII and Employees)*
◆ Issue Size: Offer for Sale of 99,05,157 Equity Shares of Rs 10/- each at price of Rs 470/- to Rs 475/- aggregating up to Rs 470.49 Cr
◆ Market Lot (Min Amount): *30 Shares (Rs 14,250/-)*
◆ Listing At (Group): NSE, BSE (B – Group)
◆ Registrar: Karvy Computershare Private Limited
◆ Lead Manager: IDBI Capital Markets & Securities Limited, Axis Capital Limited, SBI Capital Markets Limited
◆ EPS: *Rs 42.13/-*
◆ P/E Ratio: *11.27*
◆ RoNW: *10.98%*
◆ Net Asset Value (NAV) – As on 31.12.17: *Rs 398.51*
◆ Promoters: *The President of India acting through Ministry of Railways*
Mainboard IPO after a long vacation.
IRCON INTERNATIONAL LTD IPO
Opening from 17the September to 19th September.
This is a PSU, government of India undertaking engineering and construction company formerly known as INDIAN RAILWAY CONSTRUCTION COMPANY.
Further information about the IPO will be updated shortly.
*Application rate 400*
400 kostak not heard anywhere…in which city??
IRCON IPO
Price Band 470-475
Lot Size 30 shares
Retail Discount – 10 RS
Almost Confirm