Trading And Investment

Eris Life sciences: IPO Eris Lifesciences is entering the primary market on Friday 16 June 2017, with an offer for sale (OFS) of up to 2.89 crore equity shares of Re. 1 each by PE firm ChrysCapital (77% of OFS), promoters and other shareholders in the price band of Rs. 600 to Rs. 603 per share. Representing 21% of the post issue paid-up share capital, issue will raise Rs. 1,741 crore at the upper end and close on Tuesday, 20 June. Listing is expected on 29 June. The Ahmedabad-based pharma firm has been manufacturing and selling branded pharmaceutical products in cardiovascular (chronic) and anti-diabetic (acute) categories for a decade. The company has a formulation facility in Guwahati, Assam, which contributes 60 percent of revenues, while its manufacturing partner Sozin Flora Pharma contributed 28 percent. The rest came from third-party manufacturing. While the company’s growth since its inception 10 years ago is marvelous, what is commendable is that it did not require ...

CDSL IPO Analysis Central Depository Services (India) Limited (CDSL) is entering the primary market on Monday 19 June 2017 with an offer for sale (OFS) of up to 3.52 crore equity shares of Rs. 10 each by BSE, SBI, Bank of Baroda and Calcutta Stock Exchange, in the price band of Rs. 145 to Rs. 149 per share. Listing is expected on 30 June, on NSE alone. CDSL’s operating profit (before exceptions) stood at Rs. 117 crore in FY17, up 19% YoY, while PAT came in at Rs. 87 crore, leading to net margin of 59%. FY16 reported an exceptional income of Rs. 33 crore. As of 31-3-17, net worth stood at Rs. 533 crore, translating into BVPS of Rs. 51. Company is debt-free with cash and investments of Rs. 548 crore, or Rs. 52 cash per share. BSE holds 50.05% stake , which will shrink to 24% post issue, in compliance with the provisions of the Depositories Regulations. CDSL has 14 other shareholders including SBI (9.57% pre-offer holding) , HDFC Bank (7.18% ), Standard Chartered Bank (7.18%), C...

Tejas network IPO: A brief analysis Tejas network IPO is opened from today to raise Rs 450 crore via fresh issue. The price band of IPO is 250-257 per share. Bengaluru based Tejas Networks supplies optical and data networking products to telcos, internet service providers, utility and defense companies in over 60 countries, with exports accounting for a third of its Rs. 880 crore topline. Coming onto the financials, FY17 consolidated revenue stood at Rs. 878 crore, with EBITDA of Rs. 174 crore, translating into EBITDA margin of 19.8%. While topline has grown at 24% CAGR since FY13, growth was not linear, with FY15 topline contracting 9% YoY, with similar fate of bottom line. FY13 PBT of negative Rs. 79 crore rose to Rs. 3 crore profit in FY14, dropping to Rs. 18 crore loss in FY15, which rose to Rs.29 crore in FY16 and finally to Rs. 64 crore in FY17. Such fluctuations in financial performance does not post a sound picture of company's fundamentals. Interestingly, the...