The PG Electroplast Company which is in the business of Electronic Manufacturing Services (EMS) provider for Original Equipment Manufacturers (OEMs) of consumer electronic products in India, is now coming out with its Initial Public Offering or IPO.
In this article, we will look at the Review, Analysis and Details of the PG Electroplast IPO.
PG Electroplast IPO: Review Analysis & Details
Some basic details first about the PG Electroplast IPO, which are available as of now: Image sourced as screenshot from official website of PG Electroplast
- The size of PG Electroplast IPO is around Rs 120 crore INR
- It is primarily a EMS provider, i.e. Electronic Manufacturing Services (EMS) provider for Original Equipment Manufacturers (OEMs) of consumer electronic products
- Post IPO, the promoters shares in the company will come down to 65%
What is the issue size of the PG Electroplast IPO?
Around 120 Crore Rs is the estimated size of the PG Electroplast IPO, taken at the upper price band of the IPO issue
What is the price band of PG Electroplast IPO?
The price band for PG Electroplast IPO is INR 190 to 210 Rs. per share.
How many shares will be sold in the PG Electroplast IPO?
The total no. of shares to be sold through this IPO is 57.45 lakh or 5.745 million equity shares.
What are the IPO dates for PG Electroplast IPO
The IPO dates for PG Electroplast IPO are from September 7 2011 to September 12, 2011.
How will the capital raised by PG Electroplast IPO be used?
The capital raised through this IPO will be used for the following:
- Repayment of Loans and Debt
- Fund expansion plans for their manufacturing plant in Ahmednagar and Greater Noida
- Rest will be for working capital requirements
See List of All IPO Articles here
Any ratings given to PG Electroplast IPO?
No info about that as of now.
What are the analysts recommendations and business results for PG Electroplast IPO?
The company operates across multiple products - right from plastic moulding to electronic items like DVD Players, CTV assembly, CFL manufacturing, PCB Assembly and even Water Purifier Assemblers, they are diversified across the product lines.
Manufacturing facilities are spread across multiple states - from Maharashtra to Uttarakhand to Uttar Pradesh.
This being a small IPO there is not much of expert advice available. The stock markets across the globe are reeling under the pressure. Yesterdays listing of Brook's Lab IPO was a big setback for its investors where the stock fell around 40% from its issue price. Taking a call on IPO's in these times with accurate prediction is not possible for anyone. One must look for a long term investment horizon.
Although some expert advices have started popping in since this IPO is now open. There are some concerns raised with regard to the product diversification and the corresponding profit share this company has from each of those product segment. For e.g., it is learnt that around 77% of company's income is from color TV. Which means a big dependency on this particular segment. The color television market is shrinking continously because of LCD/LED/Plasma televisions.
Valuation wise, this company looks a bit costly compared to its competitor like MIRC Elctronics, which is trading at 11 time the PE multiple, while PG Electroplast is reported to be 17 to 19 times of its FY11 earnings.
CFL business is reported to be used less than 45% of its full capacity, and water purifier segment there have been hardly any sales.
The company has a small client base and the contracts are reported to be short term rather than long term. Margins are also reported to be on the weaker side.
Almondz Global Securities is the BRLM or Book Running Lead Manager to the IPO and Karvy Computershare is the Registrar to the issue
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