Saturday, 13 August 2016

   Tata Technologies Ltd plans to acquire companies to expand its defence footprint over the coming four years, a top executive said. “In the last six years our compound annual growth rate is 16%,” Tata Technologies CEO Warren Harris said in an interview to Washington-based DefenseNews.com. “We fully expect to be able to maintain that organically. Our trajectory over the next four years organically sees us going to $800 million, so we see about $200 million in revenue that will come in from acquisitions.” Tata Technologies is part of the $100 billion Tata Group. 
Harris said that Tata Technologies’ business is about 70% automotive, 11% aerospace, and 12 % industrial heavy machinery. Harris wants to see aerospace grow at a much higher rate than automotive in order to maintain a balanced portfolio. Under the government led by Prime Minister Narendra Modi,- India has moved swiftly to seal defence contracts.
India’s high defence spending, along with the government’s ‘Make in India’ initiative, are expected to encourage the entry of domestic players in the country’s defence sector, research firm MarketsandMarkets said in its recent report.

Sandip Ginodia , Director 
ALTIUS INVESTECH PVT LTD | ABHISHEK SECURITIES

We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

No plans to launch Tata Technologies IPO – Cyrus Mistry

Tata Motors is not planning to list its engineering solutions and IT product developing subsidiary Tata Technologies. Tata Technologies IPO could have been a huge value unlocking trigger for Tata Motors. Speaking at the automaker’s annual general meeting, Chairman Cyrus Mistry answered to a query from a shareholder while adding that the focus currently is on turning around Tata Motors’ operations. Tata Motors owns 70.4% equity stake in Tata Technologies.
We have no immediate plans for an initial public offer (IPO) for Tata Technologies. However, we will explore various options in the future
– Cyrus Mistry, Chairman, Tata Motors
Mistry also made clear that there are no plans to list the defense business. The Chairman said the flagship company’s business is going to increase in volatility. “We are all becoming used to unpredictable and dynamic market environments, learning to manage by anticipating customer needs, leveraging strong processes and building competitive product portfolios and networks,” said Mistry.

Earlier, media reports hinted the automaker was looking to bring the IPO of Tata Technologies and raise as much as INR14 billion (INR1,400 crore). Apart from Tata Motors, other investors in Tata Technologies are Mizuho Securities’ Alpha TC (8.7%), Tata Capital, Barclays Wealth Corporate Services, Sheba Properties, Tata Entertainment Overseas and Walbrook Nominees.
Established in 1994 as an in-house engineering solution firm, Tata Technologies has spread its operations beyond its parent and gets more than 30% of its revenues from North America, Europe and the Asia-Pacific region now. Apart from the automotive business which accounts for 65% of its top line, aerospace is also a focus area for Tata Technologies with 12% contribution to revenues. Tata Technologies posted a 3.6% increase in revenues in FY2016 to INR26.8 billion while profits grew 14.3% to INR3.8 billion.
Mistry’s comments make it pretty clear that Tata Technologies IPO is not happening anytime soon. 
Sandip Ginodia , Director 
ALTIUS INVESTECH PVT LTD | ABHISHEK SECURITIES

We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

RBL Bank IPO explained

RBL Bank (formerly Ratnakar Bank) is opening its upcoming IPO on 19 August in what will be the 16th public offer this year in India. Shares of the private sector bank are proposed to be listed on NSE and BSE on 31 August. RBL Bank IPO has been priced in the range of INR224-225 per share and investors can make applications in multiples of 65 shares. Here are 10 important aspects of this IPO:
History – RBL Bank was set up in 1943 as Ratnakar Bank – a regional banking firm with focus on Maharashtra. The bank persisted with its regional focus strategy till 2009. Renamed in December 2013 to RBL Bank.
Transformation – In 2010, the bank embarked on a major transformation with new owners and management at helm. RBL Bank acquired the business banking, credit card and mortgage portfolio businesses of Royal Bank of Scotland (RBS) in India during in FY2014. The bank is extending its reach in rural and semi-urban India and unbanked parts of urban and metro India.
Bank but micro financing mindset – Agri business is a focus area for the bank and thus, it is considering buying 10% in Utkarsh Micro Finance which has received RBI’s in-principle approval to turn itself into a small finance bank (SFB). The application is currently under consideration with RBI. RBL Bank has also acquired over 20% stake in business correspondent Swadhaar FinServe which offers products and services to inadequately served sections of businesses, households and enterprises.
First bank IPO in a long time – It is first bank IPO in India after state-run Punjab & Sind Bank listed in 2010. Among private sector banks, the last IPO was of Yes Bank in July 2005.
IPO size – Through a mix of fresh shares and offer for sale (OFS) by existing shareholders, RBL Bank IPO will mobilize nearly INR1,213 crore. The IPO values the bank at INR12,000 crore.
Existing Investors – In recent years, RBL Bank has roped in major financial institutions and private equity leaders as investors through four rounds of funding. CDC Group, Asian Development Bank (ADB), World Bank arm International Finance Corporation (IFC), Norwest Venture Partners (NVP), Faering Capital India are among the biggest investors in the bank. CEO Vishwavir Ahuja owns 9,021,670 shares or 2.71% equity stake in the bank.
Profitable growth – In the last four years, RBL Bank’s top line grew from INR532.2 crore in FY2012 to INR3,234.8 crore in FY2016, marking a CAGR of 57%. Profits in the same period jumped from INR65.1 crore to INR292.4 crore at a CAGR of 45.5%.
NPAs – Despite the rapid growth in recent years, the bank has one of the lowest NPA levels in the industry. For FY2016, RBL Bank’s gross and net NPAs stood at 0.98% and 0.59%, respectively.
Capital Adequacy Ratio (CAR) –  As of 31 March 2016, RBL Bank’s Capital Adequacy Ratio (CAR) stood at 12.94% (comprising of 11.1% Tier 1 capital), comfortably meeting the Basel III capital requirements.
Valuation – For FY2016, RBL Bank’s diluted EPS was INR9.43. At INR225 per share, RBL Bank IPO is priced at a P/E ratio of 23.9 while the P/B (Price to book value) ratio is at 2.44.

Sandip Ginodia , Director 
ALTIUS INVESTECH PVT LTD | ABHISHEK SECURITIES

We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Wednesday, 10 August 2016

RBL Bank IPO: Price band, issue period, bid lot, QIB, retail portion finalised

RBL Bank, the Kolhapur-based private sector lender, will be entering the primary market with its initial public offering (IPO) on Aug.19, 2016. The bank plans to raise about Rs. 1,200 crore during the five-day offer period, as is evident from details now available.
The bank had filed the draft prospectus with the regulator on June 23, 2015.
Kolhapur-based RBL Bank had raised Rs. 488 crore in pre-IPO preferential placement of shares last December at Rs. 195 per share.
The bank was incorporated in 1943 as Ratnakar Bank.
The exercise was in accordance with its IPO document filed with the Securities and Exchange Board of India (Sebi) in June 2015 and the shares were placed with international investors, including the Asian Development Bank (ADB) and CDC Group Plc. 
Here are the details of RBL Bank IPO:
  • Price band: Rs. 224-225 per share
  • Issue opens on Aug. 19 and closes on Aug. 23
  • Bid lot: 65 equity shares or multiples thereof
  • Overall issue size: 5,39,09,628–5,40,74,806 shares
  • Face value: Rs. 10
  • Retail portion: 35 percent of the public issue (1,88,68,370 - 1,89,26,183 shares)
  • Listing on BSE and NSE
Profile of the bank:
RBL Bank had 197 interconnected branches and 362 interconnected ATMs spread across 16 Indian states and union territories as of March 31, 2016. 
The bank earned a net profit of Rs. 292.48 crore on revenues of Rs. 3,234.85 crore for the financial year 2015-16, up from Rs. 208.45 crore and Rs. 2,356.5 crore in the preceding financial year.
The diluted EPS was Rs.9.43 for 2015-16 as against Rs. 7 in 2014-15 (Diluted earnings per share reflect the potential dilution that could occur if contracts to issue equity shares were exercised or converted during the period).
Deposits and advances stood at Rs. 24,348 crore and Rs. 21,229 crore, respectively, as of March 31, 2016.
Net non-performing assets (NPAs) as percentage of total advances rose to 0.59 percent from 0.27 percent at the end of financial year 2014-15.
rbl bank ipo bse listing stock share bank public issue offer retail price band listing
Sandip Ginodia , Director 
ALTIUS INVESTECH PVT LTD | ABHISHEK SECURITIES

We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .