Austral Coke & Projects Ltd.
(ACPL), engaged in manufacture of Low Ash Metallurgical Coke (LAM Coke) and equipment rental, refractory and textile trading, proposes an IPO of 72,60,000 equity shares of Rs.10 each through 100% book building process in price band of Rs.164 to Rs.196 per share. The issue opens on 7 August and closes on 13 August 2008 and will be listed on the BSE and the NSE. CARE Ltd. has assigned ‘IPO Grade 2’ to the issue signifying below average fundamentals.
The object of issue is to part finance its expansion plan involving setting up a 1,50,000 TPA of LAM Coke and setting up a 8 MW captive power plant (CPP) through waste heat recovery. The project is coming up at Sindhudurga in Maharashtra. ACPL is setting up in-house refractory unit so as to improve the quality of operations. The company may also utilise residual funds raised for acquiring coal mines either in India or abroad and may retire high cost debt. Availability of quality coal on regular basis is critical for running its operations successfully. It has successfully placed 27,40,000 equity shares to Somerset India Fund at Rs.196 per share (at the upper price band) aggregating Rs.53.70 cr.
My Comments:
This Austral Coke & Projects Ltd. is a sister concern of Gremach Infra and Austral Coke & Projects Ltd. is coming out with an IPO will enhence the value of Gremach Infra considerably....
Rajeev, Can we apply for this IPO?
ReplyDeleteThanks
siva
Aree siva, when Gremach is available so cheap below 100 why to go for Austral Coke& Pro....
ReplyDeleteI fully agree with Rajeev and I'm sure this Austral Coke will come down to 100 levels within few sessions of listing.
ReplyDeleteThey are quoting absurd prices in such a volatile market. Only God should save the investors.
Similar company Gujarat NRE with a superb record and much much bigger than Austral Coke is almost quoting at 50% discount, so I would go and pick GNre Coke instead of Austral.
Anybody disagrees with me, pls post your arguments.
Thanx
Austral has robust expansion plans in the coming years with production capacity to increase to more than 525,000 MTPA by end of FY’09. It has plans to set up a 8MW power plant to generate power using the waste heat gases emitted from the coke manufacturing unit and to acquire coal mines across the globe
ReplyDeleteInvestment in Austral provides an opportunity to partner with an emerging player in the high growth industry of LAM Coke, which has grown at a CAGR of 12% from 409MM tons in CY’04 to over 582MM tons in CY’08 and is expected to grow by more than 15% for next 3-4 years. Austral which has a production capacity of 375,000 MTPA is aggressively working on to take it to 525,000 by end of FY’09. With its robust business model it has witnessed revenue CAGR of over 80% for FY’05 to FY’08 with EBITDA margins improving from 7.6% in FY’05 to 32.8% in FY’08. With EPS CAGR of more than 150%, Austral’s IPO provides value investing opportunity for the investors