Tuesday, August 24, 2010

APM Pipapav ....IPO...........go for it........

I rarely write on IPO....barring Jindal Energy ,DQ Entertainment IPO and maybe couple of more.......
I feel that APM  Terminals Pipavav  looks an excellent IPO to go for it........
It is 10 paidup and placed at Rs .42 looks an excellent growth stock...............This is my view and I may be wrong...DD is a must before applying or investing in it on listing.......

With the Rs 500-crore IPO of Gujarat Pipavav Port (GPPL) hitting Indian capital market today, discerning investors are getting another marine infrastructure opportunity to participate after Mundra Port and SEZ (Mundra) IPO, which evoked a strong response from investors, way back in November 2007.

GPPL, the developer and operator of APM Terminals Pipavav, is India's first private sector port having established multi-cargo and multi-user operations.

Owned by Danish conglomerate, the AP Moller-Maersk Group, APM Terminals Pipavav has four berths with a total length of 1,075 metres to handle bulk and containerised cargo. In addition, there is an LPG berth with a service deck of 65 metres. The 4,550-metre channel length at the port allows day and night marine operations through the year.

Besides road connectivity, the port has ensured dedicated rail connectivity by forming a unique rail subsidiary in collaboration with Indian Railways and Gujarat Maritime Board in 2003. GPPL holds 38% stake in the rail joint venture.

The offer involves issue of equity shares of Rs 10 each for cash at a price band fixed from Rs 42 to Rs 48 per share aggregating to Rs 5,000 million and an offer for sale of up to 11,707, 369 shares by the Infrastructure Fund of India and the India Infrastructure Fund, together with the fresh issue. It also includes a reservation of shares of Rs 10 each aggregating to Rs 100 million for the eligible employees.

The bid/issue period will close on August 25 for qualified institutional bidders other than anchor investors and on August 26 for non-institutional bidders, retail individuals and employees.

Of the Rs 500 crore that the company plans to raise from the IPO, it will invest about Rs 120 crore in developing infrastructure and Rs 300 crore to repay loans raised to complete the first phase of the Rs 1,200-crore expansion which is complete, according to company sources.

"The IPO will mark the next stage in the evolution of the port, which has completed its gestation period," said an analyst from a financial consultancy on condition of anonymity.

He said that it is the first instance where a subsidiary of APM Terminals, other than the listed parent organization, is getting listed on a stock exchange in the country where it operates. The global operator has a network of 50 terminals in 34 countries across five continents,

The issue has been graded by Crisil as 4/5 indicating that the fundamentals are above average compared to other listed equity securities.

“Going forward, with the operational efficiency, startup of LPG cargo services and lower debt burden we expect the company’s margin to improve substantially. Looking at the long term growth prospects of the company and scope to expand the margin we recommend to subscribe to this IPO," it said.

My Commnets:
The reason I like this IPO is because it is owned by "Danish conglomerate, the AP Moller-Maersk Group" and this is a giant gr ...if one use to travel  by train and standing on Platform and if a Goods Train passes by one can see the boggies passing by , one can see the name of "Maersk" on the Wagon....and after I started taking interest in stock market,I use to think that on almost all wagons I see the name of "Maersk " and by chance we get chance to  invest in it, it will be  a big thing and this IPO is giving a chance to invest in an international and well renowened Co Maersk........This chance came after a very long time , say after years of waiting.....It is worth buying on listing as well......
When CRISIL has given 4/5 points for this IPO , I think it is a GO for it....maybe Rakesh will also apply and may also buy lateron after listing.........as we all know Rakesh holds shares of CRISIL as well, as he has faith in the Co(CRISIL) rating......I will give 10 out of 10 points for this IPO....Remember it is 10 paid up that attracts me very very much.....that is a trigger as well for me...It is amazing that APM Pipvav is 10 paidup when all promoters are trying to place shares at 2 paidup or 1 paidup and that too over Rs.100 or Rs.200............Life time opportunity.....


  1. thanks Rajeev Bhai..i was just wondering to invest or not..but resons are quite concincing. thanks

  2. Rajeevbhai your old call GMR Ferro Alloy(new name Cronimet Alloy Ltd)the call which you gave around 37 and which is now at 60, has market cap of 72cr. AND PLANS TO Increasing the Borrowing power upto Rs. 1000/- crore. Which is very hugh compared to it;s market cap. what is cooking in it sir.

    Also Jun-10 qtr eps stand @ 3.82 compared to Mar 10 annual eqs of 3.52.

    Looks like some thing big is cooking in it.

  3. hi GM,
    Yes,I m watching Cronimet Alloy ever since I gave a call on it.....

  4. Dear Rajeevji

    Some news is that RJ bought kingfisher airlines.
    "In last one year, Jet Airways has moved up from 127 to 730 and Spice jet moved up from 20 to 66 where as Kingfisher has moved up from 45 to 53. Ramesh Damani is very bullish on Kingfisher "- I am just quoting this from other blog i am following.

    What you think?


    Vishnu R Nair

  5. Dear RD Sir,
    Read all avbl reports on GPPL. Mixed reviews but ur call to buy added confidence. Applied for full quota. Thanks.
    Sir, request ur views on Lokesh Machines. IPO @ 140/- abt 2 yrs back. CMP 50/-. YOY SALES up 30 % and NP up abt 4 times. Is it value buy @ CMP.

  6. manish,
    I do not track Lokesh manchine so no view....

  7. visahnu,
    I still bet on Spice Jet....

  8. Hi Rajeev,

    Applied for GPPL today. I am a small investor, hence applied only for a small amount.

    Hoping to get your views on:

    1) Andhra Petro
    2) Resurgere Mines - Bonus of 2:1


  9. sir,
    what is the reason for sujanas high jump suddenly. can you explain the trigger for the same that there are suddenly so many people buying the stock.

  10. Dear Vishnu ,

    As regards your query for Kingfisher airlines, I have just pasted down some info taken from another blog . It might be helpful to you :

    Kingfisher is practically bankrupt – they are not able to pay even GVK Power towards Airport charges amounting to Rs 20 to 50 crores – they paid arrears of Rs 20 crores only recently.

    It is a good airline, and in normal course it could have been takover target. But none of the foreign airlines have deeper pocket to invest into loss making Kingfisher. The flamboyant Vijay Mallya is also misfit partner. The only Airline that could pursue takeover ambitions is perhaps Virgin Airlines, and possibly some gulf carriers. Gulf ownership will not get them good licenses or landing rights in western markets like USA.

    further, when the American investor like Wilbur Rose got out of profitable Spicejet, I wonder who other Americans would go for losing airlines like Kingfisher? If I were the investor, I would look at the Spicejet, not Kingfisher, but still there are some investors advised by big investment banks who look at the market share rather than profitability.

    Kingsisher will come out with GDR or ADR in less than 3 months. This makes the takeover difficult.

    Trust Spicejet instead. It has already changed the hands for better. When the Kingfisher was at Rs 48 or about, and Spicejet at Rs 24 to 26, we had suggested swapping Kingfisher into Spicejet, and it has worked. While Kingfisher has risen to Rs 61 from 48 (by 21%), the Spicejet has gone up from Rs 24to Rs 72 (by 200%).


  11. sandeep,
    That is market...stocks never move on our whims...

  12. sumo,
    do not track both so no view...

  13. Hi rajeev,
    can you give some info on Micro tech. eventhough earnings are good it is trading at such a low prices.

  14. View on the Pipavav IPO..