Technofab Engineering Issue Subscribed

July 3rd, 2010 Comments Off on Technofab Engineering Issue Subscribed

Receives overwhelming response from HNI’s and Retail

Technofab Engineering Limited which had tapped the capital markets with its maiden IPO received overwhelming support. The company had launched its IPO between the 29th of June and the 2nd of July for 29.9 lakh shares in a price band of Rs 230-240. The company would be raising between Rs 68.77 crs to Rs 71.76 crs.

Post the QIB’s having to pay 100% of the subscription amount there is a change in the subscription pattern and it appears that they have reduced their subscription levels having to pay 100%. The HNI category and retail categories received excellent response.

Category Shares Offered Shares Subscribed Times
QIB 1470000 6285325 4.28
NII 441000 21542825 48.85
Retail 1029000 10315850 10.03
Employee 500000 55175 1.10
Overall 2990000 38199175 12.78
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Parabolic Drugs Day one

July 2nd, 2010 Comments Off on Parabolic Drugs Day one

Sedate start but share under pressure

Parabolic Drugs Limited listed on the BSE and NSE yesterday. The company had come out with IPO in a price band of Rs 75-85 to raise Rs 200 crs. The issue included an offer for sale by the private equity investors of 20,25,702 shares. The company is in the midst of completing phase I of its expansion which would increase its capacity by about 40% and the proceeds of the issue would be utilised to increase the capacity by another 40% besides other objects. In short the capacity would almost double in the next 12 to 15 months.

The company also declared its results for the quarter and year ended March 2010 where the revenues have grown to Rs 559 crs and the net profit a healthy 34.20 crs. The EPS on a pre-money basis for the year ended March 2010 was Rs over Rs 9.

Coming to the listing itself, the share listed at the BSE at Rs 76 and at the NSE at Rs 75. The highs were Rs 79 and Rs 75.95 respectively. The lows were Rs 63 on the BSE and Rs 63.10 on the NSE. The combined traded volume was 186.64 lakh shares which is roughly 70% of the IPO size of 2.667 cr shares. The delivery volume was 35.48 lakh shares which is 19% of the traded volume and a mere 13.30% of the IPO size. The low delivery volume is an indication that the institutional investors have decided to hold on and would wait for the share to settle down.

Exchange Open High Low  Close Net Change % gain Wt Avg Volume Delivery Del % age
BSE 76.00 79.00 63.00 64.80 -10.20 -13.60 67.79 7834104 1282492 16.37
NSE 75.00 75.95 63.10 64.85 -10.15 -13.53 67.86 10830205 2266106 20.92
Total 18664309 3548598 19.01

Today would be a crucial day for the share and it would be interesting to see volumes and particularly delivery volumes pick up or not. Secondly the share needs to hold and I believe the share should find support at the Rs 60 mark. Based on expected earnings the stock is available at a PE multiple of just under 7 for expected earnings of March 2011

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Parabolic Drugs Listing Morning

July 1st, 2010 Comments Off on Parabolic Drugs Listing Morning

Decent start – Selling pressure but has found support

The company has declared its results for the quarter and year ended March 2010 which is far ahead and better than expected in the article which I had written about the company. There is a seasonality factor in the business and the second half and particularly the fourth quarter is very strong.

In the article the seasonality factor was taken into account and sales were expected at Rs 500-520 crs against which the company has delivered gross sales of Rs 559 crs. The net profit was expected to be Rs 30.5 to 31.5 crs against which the company has reported a PAT of Rs 34.20 crs.

Coming to the listing itself. The share listed at Rs 76 on the BSE and Rs 75 on the NSE. The highs were Rs 79 on the BSE and Rs 75.95 on the NSE, while the lows were Rs 65.80 and Rs 65.70 respectively.

Exchange Open High Low  Close Net Change % gain Volume Wt Avg
BSE 76.00 79.00 65.80 67.45 -7.55 -10.07 3416747 70.13
NSE 75.00 75.95 65.70 67.40 -7.60 -10.13 4765250 70.18
Total 8181997

The volume has been quite brisk and in the first hour of trade a total volume of 81.81 lac shares or roughly 30.6% of the IPO issue size has been traded. The share opened steady and was under pressure after some trading but appears to have found support after making the lows. If one were to look at the performance of the company on a day when the markets are down over 1% it seems to be a reasonable listing and if the share is able to recover from these levels and close better than Rs 70 it would be a good performance.

More about the share at the end of the day looking at the delivery and trading volumes.

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