Omkar Speciality Chemicals IPO to open on Jan 24

Omkar Speciality Chemicals is entering capital market with an initial public offering of 81 lakh equity shares of Rs 10 each on January 24. The issue constitutes 41.27% of the fully diluted post issue paid-up capital of the company.

The company has fixed price band at Rs 95-98 per equity share for the issue, which closes on January 27. Bids can be made for minimum 60 equity shares and in multiples of 60 equity shares therafter.

Omkar Speciality hopes to raise Rs 76.95-79.38 crore through issue, which are proposed to be deployed for setting up of new manufacturing facility at Unit 4 at Badlapur, Maharashtra, with cost of Rs 32.16 crore; expansion of existing manufacturing facilities at Unit 1, Unit 2 & Unit 3 at Badlapur, Maharashtra, with Rs 14.62 crore; and working capital requirements of Rs 10 crore.

Company is mainly engaged in the manufacture and sale of speciality chemicals viz. selenium compounds, iodine compounds, molybdenum compounds etc. and pharma intermediates viz. Potassium Iodate, Bismuth Ammonium Citrate, Bromoform etc.

For the period of six months ended on September 30, 2010, it has reported net profit of Rs 5.05 crore on total income of Rs 51.56 crore.

Almondz Global Securities Ltd is the book running lead manager to the issue.

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Tata Steel FPO opens tomorrow: Should you subscribe?

World's seventh largest steel maker Tata Steel's follow-on public offer (FPO) is set to open for subscription tomorrow. It has fixed price band of Rs 594-610 a share for its FPO of 5.7 crore ordinary equity shares of Rs 10 each.

The company aims to raise Rs 3385.8-3477 crore through the issue, which will close on January 21.

Experts are divided on the issue. Deven Choksey of KR Choksey and Manish Bhatt of Prabhudas Lilladher are positive on it while Investment Advisor, SP Tulsian has given a thumps down to the same.

"We are not excited by this Tata Group company’s FPO plans, as there is not enough left on the table for the prospective investors. Infact, value will be seen more in FPO of SAIL, as and when it will hit the market. Concern on global presence of Tata Steel still exists. Hence, we have given a thumps down to the issue on grounds of steep pricing, for those looking for listing gains. This issue may be attractive only for the lenders and institutional investors of the company," Tulsian said.

However, Choksey advises buying for long term investors. Even according to Bhatt the issue looks good.

Research firm PINC Research maintained buy on the stock with a target price of Rs 817.

The report says, "Contract prices for Q4FY11 has settled at higher level due to increased spot prices. Coking coal spot price continues to strengthen, as floods in Australia disrupt supply. We believe high raw material prices would exert further pressure on steel processing margin in FY12. However, integrated operation of Tata Steel India would benefit from rising steel prices on cost push."

"At FY12E EV/EBITDA of 4.8x and 4.9x at upper band of FPO and CMP respectively, the stock is attractively valued. We maintain buy on the stock with a revised target price of Rs 817 (blended 6.1x FY12E EV/EBITDA),” according to the report. The firm recommend subscribing to FPO.

Tata Steel has a steel production capacity of approximately 27.2 mtpa. According to WSA, the company was the seventh largest steel company in the world in terms of crude steel production volume in 2009. The company is also one of the most geographically diversified steel producers, with operations in 26 countries and a commercial presence in more than 50 countries.

Tata Steel intends to use issue proceeds for partly financing the company’s share of capital expenditure for expansion of existing works at Jamshedpur; and payment of redemption amounts on maturity of certain redeemable non-convertible debentures issued by the company on a private placement basis.

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Midvalley Entertainment IPO to open on Jan 10

South based media & entertainment company Midvalley Entertainment (MVEL) will be launching its Rs 60 crore initial public offering (IPO) on January 10, 2011.

The issue will close for subscription on January 11. The price band and minimum bid lot will be announced soon.

It is a film production, distribution and exhibition company, actively engaged in the media and entertainment industry in South India. It has presence in the media and entertainment activity from concept to completion i.e. from script to screen. It produces, distribute and exhibit movies both in Indian and foreign languages.

Issue proceeds are proposed to be utilised for entering into screening agreements with 300 cinema theatres; renovation and up-gradation of cinema infrastructure with digital equipment and other related assets for a select 100 screens; and acquisition of company, acquisition of screening rights of company having similar line, range and objects of business.

Current promoters Unigold Pacific, Kiara Enigma and Global Motion Pictures & Ventures Pte Ltd hold 18.96%, 8.62% and 21.88% stake respectively in the company.

Equity shares are proposed to be listed on Bombay Stock Exchange.

Aryaman Financial Services limited is the book running lead manager to issue.

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MOIL LIMITED IPO

MOIL LIMITED

Issue Open:	November 26, 2010
Issue close:	December 01, 2010
Price Band:	Rs. 340 - Rs. 375 Per Equity Share
Minimum Bid Size:	17 Equity Shares
Face Value:	Rs. 10 Per Equity Share
Issue Type:	100% Book Building
Maximum Subscription Amount for Retail Investor:	Rs. 200000

MOIL LIMITED IPO :

Incorporate in 1896, MOIL Limited (Manganese Ore India Limited) is India based producer of manganese ore, primarily used to make ferro-alloys for steel production. MOIL is a 'Mini Ratna' PSU, owned by Government of India and under the administrative control of the Ministry of Steel.MOIL Limited is the largest producer of manganese ore by volume in India. MOIL operate seven underground mines (Kandri, Munsar, Beldongri, Gumgaon, Chikla, Balaghat and Ukwa mines) and three opencast mines (Dongri Buzurg, Sitapatore/Sukli, and Tirodi) to produce more then 1,093,363 tonnes of manganese ore.

IPO Grading / Rating:

CARE has assigned an IPO Grade 5 to MOIL Limited IPO. This means as per CARE company has 'Strong fundamentals'.

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