ICICI Lombard IPO – Details and review

About the company
Image result for icici lombard ipo proceeds of the issue








ICICI Lombard IPO – Maiden IPO by Non-life Insurer

#ICICI Lombard is the largest private-sector non-life insurer in India based on gross direct premium income in fiscal 2017,  being one of the first few private-sector companies to commence operations in the sector in fiscal 2002, according to the CRISIL Report. They have well-diversified range of products, including motor, health, crop/weather, fire, personal accident, marine, engineering and liability insurance, through multiple distribution channels. They were founded as a joint venture between ICICI Bank Limited, India’s largest private-sector bank and Fairfax Financial Holdings Limited, a Canadian based holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management with US$43.38 billion of total assets at December 31, 2016.

In fiscal 2017, 87.5% of their new policies were initiated electronically, either by our distributors or  customers. No. of policies grew at a CAGR of 13.1% between fiscal 2015 – 2017. Their per employee productivity, measured in terms of gross direct premium income per employee, increased from Rs. 114 lakh in 2015 to Rs. 166 lakh in 2017, representing a cumulative annual growth rate of 20.7%.

It enjoys a diverse customer profile base including large and mid-sized corporates, MSME, central and state governments, and individuals. In fiscal 2017, our retail (including SME), corporate and government business groups contributed 60.4%, 17.5% and 22.1% of our GDPI, respectively. For the three months ended June 30, 2017, our retail (including SME), corporate and government business groups contributed 54.3%, 23.2% and 22.5% of our GDPI, respectively.
Financial Performance
In Rs. Crore               
Financial
FY 17
FY 16
FY 15
FY 14
FY 13
Total Assets
48,885.8
35,445.0
32,414.2
25,070.8
20,290.5
Revenue
7180.49
5804.25
5044.81
5028.41
4487.39
Profit
667.01
481.96
558.40
412.82
302.65
%NPA
9.2%
8.2%
10.1%
8.11%
6.7%
Industry Overview
The Indian non-life insurance sector offers different products such as motor, health, crop, fire, marine, liability, travel, aviation and home insurance aimed at meeting different protection needs of retail customers, government as well as corporate customers.
According to CRISIL Report, The size of the Indian non-life insurance sector was Rs. 1.28 trillion on a GDPI basis as of 31st March 2017. Indian non-life insurance sector GDPI grew at a CAGR of 17.4% between fiscal 2001 and fiscal 2017. According to Swiss Re, India was fifteenth largest market in the world and the fourth largest market in Asia in 2016, behind China, Japan and South Korea. India was also amongst the fastest growing non-life insurance markets over 2011-2016, growing at 14.5% (as per Swiss Re). Despite its size and growth profile, India continues to be an underpenetrated market with a non-life insurance penetration of 0.77% in 2016, as compared to 1.81% in China, 1.70% in Thailand, 1.67% in Singapore and 1.62% in Malaysia and a global average of 2.81% in 2016. At US$13.2 in 2016, insurance density also remains significantly lower as compared to other developed and emerging market economies.
ICICI lOMBARD ALLOTMENT, lOMBARD ALLOTMENT STATUS, ICICI Lombard IPO
Multi-Product Insurers:
Four public sector companies offering multiple products – National Insurance Company Limited (“National Insurance”), The New India Assurance Company Limited (“New India”), The Oriental Insurance Company Limited (“Oriental Insurance”) and United India Insurance Company Limited (“United India”)
o 18 private sector companies offering multiple products – including ICICI Lombard General Insurance Company Limited (“ICICI Lombard”), Bajaj Allianz General Insurance Company Limited (“Bajaj Allianz”), HDFC ERGO General Insurance Company Limited (“HDFC Ergo”), IFFCO Tokio General Insurance Company (“IFFCO Tokio”) and TATA AIG General Insurance Company (“Tata AIG”). There are also single product insurers.
Besides these 30 companies, the state owned General Insurance Corporation of India (“GIC”) operates as the main Indian reinsurer.

About the Issue 

With the IPO, ICICI Lombard likely to mobilise upto Rs. 5700 crore, offering 8.62 crore equity shares in a price band of Rs. 651 to Rs. 661.

IPO Opening and closing date – Sep 15 – Sep 19, 2017

Face value –  Rs. 10

Lot size – 22

Allotment portion
Percentage
QIB
Upto 47%
NII
14% and above
Reserved for ICICI Bank shareholders
4%
Retail
33% and above
Shareholding pattern of promoters post IPO




IPO Proceeds to be used in – #ICICI Lombard is the non-life Insurance company to offer IPO. Promoters to dilute 19% in ICICI Lombard’s Rs 5,700-cr IPO. IPO proceeds are not going to the insurers. It is a pure stake sale by the promoters
Mymoneystreets Take on the IPO

The company’s has registered revenue growth of 25% over last five years. Its profits have grown at a CAGR of 65% over last five years. On the upper price band of Rs 661 for FY17, its PE is at 46 times. IPO proceeds are not going to the insurers. It is a pure stake sale by the promoters. The pricing of IPO looks high.
The brand is promising, however, there are no competitor listed on the bourse. Highly under-penetrated sector likely to see a robust growth over long term. Subscribe this IPO only if you have a long term view.

ICICI lOMBARD ALLOTMENT, lOMBARD ALLOTMENT STATUS, ICICI Lombard IPO

Capacite Infraprojects IPO – Details and review

About Capacite Infraprojects

About the company 
Founded in 2012, #Capacite Infraprojects is a fast growing construction company focussed on Residential, Commercial and Institutional buildings, with growth in consolidated revenue from operations from Rs. 2,142.59 million for Fiscal 2014 to Rs. 11,570.40 million for Fiscal 2017, and an Order Book of Rs. 46,024.76 million as at May 31, 2017 comprising  56 ongoing projects. They provide end-to-end construction services for residential buildings (“Residential”), multi-level car parks, corporate office buildings and buildings for commercial purposes (collectively, “Commercial”) and buildings for educational, hospitality and healthcare purposes (“Institutional”). Their projects include constructing concrete building structures as well as composite steel structures. They also provide mechanical, electrical and plumbing (“MEP”) and finishing works.
Company has a order book of Rs. 4600 crore+. The company has bagged worth over Rs. 1500 crore post demotisation.  Company has a reputation of bagging repeat orders from existing clientele, latest being order worth more than Rs. 300 crore from radius developer. The company has 56 ongoing projects. The company grew 75% on revenue CAGR. The company has about 1700 employees and 18000 labour workforce. The company owns construction equipments required for the all stage of the project, hence it has advantage of timely access and also tax benefits on depreciation. The management believes in using latest, viable and suitable technologies for all its project making it a competitive player.

About Promoters – With significant experience in the construction industry, the management is visionary. Promoters has been hands on in the business and driving the growth story. It has significantly experienced board of directors in the sector, ensuring securing projects from big clients and strengthening its position in the field, gives them an edge over competitors.

Clientele – Some of our clients include Kalpataru, Oberoi Constructions Limited, The Wadhwa Group, Saifee Burhani Upliftment Trust, Lodha Group, Rustomjee, Godrej Properties Limited, Brigade Enterprises Limited and Prestige Estates Projects Limited.
Key Financials IN CRORES
Financial Year
Fy 17
Fy 16
Fy 15
Fy 14
Revenue
1165.96
860.246
562.580
216.582
PAT
69.66
48.84
32.04
4.11
Profit margin
5.9%
5.6%
5.6%
1.8%
About the IPO
Capacite is issuing fresh issue of 1.6 crore shares in the IPO. Rs 400 crore to be raised in the issue on its upper price band.  At the price band of 245-250, the stock is available at 23.9-24.4 times of FY17 earnings.

Price Band – 245-250 Rs.

Lot size – 60
Issue open and closing date – 13thSep – 15th Sep 2017
Finalisation of Basis of Allotment – September 21, 2017
Initiation of refunds – On or about September 22, 2017
Credit of Equity Shares – On or about September 22, 2017
Commencement of trading – On or about September 25, 2017

Bankers to this issue are – 

1. Axis Capital Limited  
2. IIFL Holdings Limited 
3. Vivro Financial Services Private Limited  
IPO Proceeds to be used in 
Funding Working Capital Requirements – 250 Crore
Funding Purchase of Capital Assets – 51.95 crore
AND General Corporate Purposes

Capacite Infra Allocation structure
the Issue is being made through the Book Building Process, in reliance on Regulation 26(1) of the ICDR Regulations, wherein not more than 50% of the Issue shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIB Portion”).Further, not less than 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the Issue shall be available for allocation to Retail Individual Investors
Risks to the business
Capacite will have risk of avalibility of large number of contract labours, with help of local contractors and sub-contractor. Issue on this could lead to project completion delays. They may be subject to liability claims or claims for damages or termination of contracts with their clients for failure to meet project milestones or defective work, which may adversely impact their profitability, cash flows, results of operations and reputation. Risks relating to reliance on sub-contractors and third parties for supply of raw materials, non-Core Assets and for providing certain services in the construction of their projects that may adversely affect Capacite reputation, business and financial condition. They are required to obtain approvals for our operations and any failure to obtain licenses and approvals by us could adversely affect our business,
Moneystreets Take on #Capacite Infra IPO

At the upper price band company is quoting a price of 24 PE. The company has kept its focus only on construction, it has registred consistent growth in last 4 years. Man Industries, a close competitor is trading at 16 PE. The IPO is fully priced. However, looking at the clientele and growth numbers, the IPO is attractive. Capacite Infra can be looked at for medium to long term story given government’s focus on housing for all project. No promoter or investors are liquidating their stakes with the IPO, which indicates their strong commitment towards the business and reflects significant growth potential

#Capacite Infra, #Capacite Infra ipo, #Capacite Infra a capacite Infra IPO Allotment, Capacite IPO allotment, llotment

Dixon Technologies IPO – Details and review and allotment status

About Dixon Technologies 
Dixon IPO Allotment status
#Dixon Technologies is known as the largest home grown design-focused and solutions company engaged in contract manufacturing products in the consumer durables, lighting and mobile phones markets in India. MOPE (Motilal Oswal Private Equity – IBEF Fund) invested Rs. 40 crore in the company for 24.31% stake in July 2008. 
Dixon IPO Allotment status
Their product portfolio includes – 
(i) consumer electronics like LED TVs; 
(ii) home appliances like washing machines; 
(iii) lighting products like LED bulbs and tubelights, downlights and CFL bulbs; and 
(iv) mobile phones. 
They also provide solutions in reverse logistics i.e. repair and refurbishment services of set top boxes, mobile phones and LED TV panels. As per the Frost & Sullivan Report, they are the leading manufacturer of lighting products of CFL, LED bulbs, LED TVs and semi-automatic washing machines in India. Their key customers include Panasonic India Private Limited, Philips Lighting India Limited, Haier Appliance (I) Pvt. Ltd., Gionee, Surya Roshni Limited, Reliance Retail Limited, Intex Technologies (I) Ltd., Mitashi Edutainment Pvt. Ltd., Dish Infra Services Private Limited. They are a fully integrated end-to-end product and solution suite to original equipment manufacturers (“OEMs”) ranging from global sourcing, manufacturing, quality testing and packaging to logistics. They are also a leading Original Design Manufacturer (“ODM”) of lighting products, LED TVs and semi-automatic washing machines in India. As an ODM, they develop and design products in-house at our R&D centre. They manufacture and supply these products to well-known companies in India who in turn distribute these products under their own brands. 
Key Financials

                                                                         In Crores*

Financial Year
Fy 13
Fy 14
Fy 15
Fy 16
Fy 17
Revenue
726.2
1065
1116.8
1253.6
1645.6
PAT
1.93
10.9
9.81
36.4
46.4
Profit margin
0.3%
1.05%
0.9%
3%
2.8%
About the IPO
  • The price band for the offer, fixed at Rs 1,760-1,766, according to RHP
  • The issue to open on September 6 and close on September 8
  • IPO includes fresh Issue of shares worth 60 crore and offer for sale for 540 crore (for MOPE)
  • Market lot – 8 Shares
  • The script to be listed in BSE and NSE
  • Issue has allocation quota of 50% for QIBs, 15% for HNIs and 35% for retail category


Promoter and Executive Chairman, Sunil Vachani (holding 43.97%) and seven investors are looking to sell 30.5 lakh equity shares, amounting to Rs 540 crore at the upper end of the price band, while 3.4 lakh equity shares worth Rs 60 crore will be in the form of fresh issuance, the draft prospectus said.
IPO Proceeds to be used for –

  • Private Equity Firm MOPE to exit with Rs. 540 crore
  • To repay debt,
  • Set-up an LED manufacturing unit at Tirupati  
  • Strengthen the lighting products vertical with backward integration capabilities at Dehradun facility
  • Upgrade information technology infrastructure
  • General corporate purposes.

Mymoneystreets take
#DIXON IPO – Dixon is B2B player which works with all leading consumer electronics companies(Phillips, Panasonic, Haier, Dish TV, Gionee has no direct listed competitor to compare with.  It has a leadership position in the segment it works in and holds strong relations with major Consumer durable and Electronics Players. They have strong R&D centre. The majority part of the IPO proceed will go to MOPE, remaining part will be invested in other mentioned areas.

#Dixon Technologies has consistently posted revenue growth and PAT in double digit over 5 years. This is a fully priced IPO, at the P/E of 39 to 47 at the offer price in the lower and higher band assessed on FY17 financials. Companies in this segment run on very thion margin, but have a high and consistent volume growth. The company has good return ratio and high asset turnover. Stellar growth and high-return ratio deserves premium and market historically rewarded such companies with higher PE. 

This IPO is good for investors with medium to high risk appetite and long-term view. Wouldn’t recommend this IPO for listing gains.

HappyLoan – to facilitate dreams come true

View on the industry – Consumer electronic markets including – lights, waching machines, TV industry, is seeing a huge growth over a decade. The growth in the consumer electronics market in India has interestingly brought about gradual but radical change in the suppliers composition. The market which was dominated by tier-I players witnessed increasing share of tier-II players. The factor behind their increasing acceptance has been the availability of technology and regional presence. India is experiencing a positive change in producing locally an advantage over Chinese imports in many of the segments under discussion. The industry in discussion is expected to see considerable growth over next 5 years.
Book Running lead managers –
IIFL Holdings, IDFC Bank, Motilal Oswal Investment Advisors and Yes Securities are the book running lead managers to the issue. Four merchant bankers associated with this issue have handled 22 public issues in past three years out of which 8 issues closed below the IPO on listing date.
Some of the Risk factors would be as follow us – 
Risk Factor 1. They are highly dependent on certain key customers for a substantial portion of their revenues. Loss of relationship with any of these customers may have a material adverse effect on their profitability and results of operations. 
  • Action undertaken by the government to tax the business of theirs or that of their customers 
  • Reduced consumer spending on discretionary items in their customers’ key markets
  • Recession in India in which their  key customers’ operate their businesses 
  • Loss of market share of our key customers’ products which are manufactured by us; 
  • Failure of key customers’ products to gain widespread commercial acceptance; 
  • Key customers’ inability to effectively manage their operations or also seeing a change in their management or constitution which may render us not being a preferred choice for manufacturing products for them; and 
  • Changes in laws affecting their customers to operate profitably
Risk Factor 2. They do not obtain firm and long-term volume purchase commitments from their customers. If their customers choose not to renew their agreements with us or continue to place orders with them, their business and results of operations will be adversely affected.
Risk Factor 3.The markets in which their customers compete are characterized by consumers and their rapidly changing preferences, advancement in technology and other related factors including lower manufacturing costs and therefore as a result their Company may be affected by any disruptions in the industry
Risk factor 3: They may, from time to time, they look for opportunities to enter strategic alliances, acquire businesses or enter into joint venture arrangements. Any failure to manage the integration of the businesses or facilities post such acquisition or joint venture may cause profitability to suffer
Risk factor 4: They may be subject to financial and reputational risks due to product quality and liability issues which may have an adverse effect on their business, financial condition and results of their operations


Disclaimer – This review is not to be taken as recommendation to BUY. This should be used for information purpose only

HappyLoan – to facilitate dreams come true

#DixonTechnologiesIPO
Dixon IPO Allotment status

BSE IPO Details – sourced

Source – chittorgarh
#BSE Limited is the owner and operator of BSE Exchange (Bombay Stock Exchange), India’s largest stock exchange by number of companies listed. The Bombay Stock Exchange was established in year 1875 as the first stock exchange in Asia. Today BSE has over 5000 companies listed on it, the highest in any exchange around the world. Worlds two leading global exchanges, Deutsche Bourse and Singapore Exchange are strategic partners of BSE.
BSE offers trading in Equity, Debt Instruments, Derivatives, Mutual Funds and SME Equity. The S&P BSE SENSEX is India’s most widely tracked stock market benchmark index. BSE also offer services including risk management, clearing, settlement, market data services, IT services and solutions, licensing index products such as the S&P BSE SENSEX and financial & capital markets trainings.
BSE Limited Strengths
1. Strong brand recognition with a track record of innovation
2. Diversified and integrated business model and active relationship with market participants
3. State-of-the-art infrastructure and technology
Company Promoters:
The company is professionally managed and does not have an identifiable promoter. There are no shareholders who control individually or as a group, 15% or more of the voting rights of the company.
Company Financials:
Summary of financial Information
Particulars
For the year/period ended (in Rs. Million)
30-Jun-16
31-Mar-16
31-Mar-15
31-Mar-14
31-Mar-13
31-Mar-12
Total Assets
30,363.5
29,176.7
28,758.0
25,923.0
27,273.6
27,915.7
Total Revenue
1,424.4
5,158.9
4,391.8
3,328.3
3,389.1
4,028.0
Profit After Tax (PAT)
454.3
1,319.1
756.5
747.7
398.2
1,116.0
Issue Detail:
  »»  Issue Open: Jan 23, 2017 – Jan 25, 2017 
  »»  Issue Type: Book Built Issue IPO 
  »»  Issue Size: 15,427,197 Equity Shares of Rs 2 aggregating up to Rs 1,243.43 Cr
    ›  Offer for Sale of 15,427,197 Equity Shares of Rs 2 aggregating up to Rs [.] Cr 
  »»  Face Value: Rs 2 Per Equity Share 
  »»  Issue Price: Rs. 805 – Rs. 806 Per Equity Share 
  »»  Market Lot: 18 Shares 
  »»  Minimum Order Quantity: 18 Shares 
  »»  Listing At: NSE
An indicative timetable in respect of the Offer:
  • Bid/Offer Opens On: Jan 23, 2017
  • Bid/Offer Closes On: Jan 25, 2017
  • Finalisation of Basis of Allotment: On or about Jan 31, 2017
  • Initiation of refunds: On or about Feb 01, 2017
  • Credit of Equity Shares to demat accounts: Feb 02, 2017
  • Commencement of trading of the Equity Shares: Feb 03, 2017
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