Manganese Ore IPO: Market Experts Recommendations for MOIL IPO

The time has come for Manganese Ore MOIL IPO to hit the primary markets tomorrow, i.e. Friday.
We had given the details and review about the much awaited Manganese Ore IPO in our article Manganese Ore IPO: Review Analysis & Details. Today, we continue on the same topic covering the details about the expert opinions for the Manganese Ore IPO as per the various market voices and whether the investors should subscribe to this MOIL IPO or not.
In general, the market mood is that Manganese Ore IPO should be subscribed to

Many experts and analysts believe that the offered price band of Manganese Ore IPO which is set at Rs 340-375 per share competitive enough for investors to give it a shot through the IPO. Compared to its peers and other companies in the ore business, this IPO looks attractive when one sees it from the PE multiple ratio. At the lower and upper price bands, the PE multiple is hovering from around 8.5 to 9.5 times the FY11 earnings, which makes it real attractive.

If you look at the past 2 years of performance of this company, you will see that the performance has not been upto the mark. However, that can be attributed to the general global recession phenomenon and problems across the world economy. Going forward, outlook appears to be good and hence this company is expected to perform well. For long term investment horizon, this company is expected to give good returns with respect to the IPO price band of Rs 340-375 per share. For the long term investors, the situation is expeted to be good.
Dont expect real big returns of 30% or so from MOIL IPO, as it happened with Coal India IPO.
India is a fast growing market and Manganese Ore holds the monopoly in Indian Manganese market. Analysts believe that more technological advances will help Manganese Ore to get more profits in long term, so it is recommended even for a long term hold.
Investors should take the call as per their risk appetite. These are expert opinions which are subject to market risks. See more details on Hindustan Copper FPO IPO: Review and the upcoming Shipping Corporation SCI FPO IPO: Review

Manganese Ore IPO: Review Analysis & Details of Manganese Ore India MOIL IPO

Another IPO is set to hit the primary stock markets pretty soon. The IPO belongs to Manganese Ore India Limited, which is a mini-ratna company in India. Manganese Ore India Limited has decided to come out with the Initial Public Offering or IPO.
In this article, we will look at the Review, Analysis and Details of the Manganese Ore IPO and try to do the Review and analysis of Manganese Ore India Limited MOIL IPO.

Manganese Ore IPO: Review Analysis & Details

Some basic details first about the Manganese Ore India Limited IPO, which are available as of now:

- The size of Manganese Ore IPO is expected to be between around Rs 1000 crore.
- There will be around 20% dilution by the government, 10% by central govt and rest 5% by state governments of Maharashtra and other states

What is the issue size of the Manganese Ore IPO?
Around between Rs 1000 crore is the size of the IPO.
What is the price band of Manganese Ore IPO?
It is reported that the recommended price band for Manganese Ore IPO is Rs 340-375 per share.

How many shares will be sold in the Manganese Ore IPO?
The total no. of shares to be sold through this IPO is 33.6 million shares. There will be 20% stake dilution by various governments at center and state level.

What is the trading symbol & exchange for the Manganese Ore IPO
No info about that

What are the IPO dates for Manganese Ore IPO
The MOIL IPO dates are Friday 26 November 2010 to 1 December 2010

How will the capital raised by Manganese Ore IPO be used?
Although exact usage of capital raised is not known, but it is expected that it will be used for further expansion and investments into more diversified streams. For e.g., the company has entered into new streams like Ferro Manganese Plant and Electrolytic Manganese Dioxide (EMD) Plant. Also into renewable energy and setup the windfarm to be the first PSU to do so. Also planning to buy coal assets outside the country.

Any ratings given to Manganese Ore IPO?
No information about that as of now.

What are the analysts recommendations and business results for Manganese Ore IPO?
MOIL operates 10 mines, six located in the Nagpur and Bhandara districts of Maharashtra and four in the Balaghat district of Madhya Pradesh.
The reserves of manganese iron ore are reported to be around 69 million tonnes. While global prices for manganese iron ore are at USD 8 dmtu, Indian prices are at USD 9-9.5 dmtu, which indicate a better pricing and placement of the company for iron ore.
The company is also reported to be cash rich - it is reported to have around Rs 1700 Crores of reserves.
The operating margins of the company is also healthy - around 60% which the management is expecting to maintain in future as well. No doubt why this company is known to be a mini-ratna company, just after the navratnas. Being the largest iron ore company of India and the fifth largest iron ore company of the world, it caters to 50% manganese requirements of the country. All the financial records also look healthy
And dont stop at Manganese Ore IPO. The government is in the mood to collect as much money as it can (target 44K crores) and so the Hindustan Copper IPO is expected on December 6th. See more details on Market Experts Recommendations for MOIL IPO