Indian Energy Exchange Ltd IPO....... Should you apply????

Hello friends,

This is the second IPO of October and so far all the IPOs are having an awesome run at the markets. This actually reminds me of the situations in 2004 to 2007 when IPOs were riding on a power horse. However many IPOs that came out then lost huge market value and today are trading in pennys. As I see today those situations are surfacing. However let’s hope that the tides have changed and investors make good money in the IPOs to come.



The IPO we are talking about today is Indian Energy Exchange Ltd(IEX). Lets first look at the basics.

Particulars
Details
Company
Indian Energy Exchange Ltd
Issue Open Date
9th October 2017
Issue Closing Date
11th October 2017
Issue Price Band
Rs 1645 to Rs 1650
Issue Size
Rs 1000.73 Crs
Shares per Lot
9 Shares
Face Book
Rs 10/-



About the Company!!!

IEX Ltd  are the largest exchange for the trading of a range of electricity products in India, in terms of traded contract volumes in the financial year 2017 according to the Central Electricity Regulatory Commission (the “CERC”). Basically the company provides a platform for energy trading.

Utilization of Funds!!!

The issue is a pure offer for sale. No money will go to the company.

Promoters!!!

The company was earlier promoted by Financial Technologies India Ltd. Due to the issues that surfaced in FTIL the company had to be divested and therefore there is no real promoter in the company. Apart from DCB no one holds more than 15% stake in the company.

This means the company is professionally managed.

Financials!!!




Now let’s dive into the most important factor. The financials!

1.       The company’s total Equity attributable to the shareholders has grown from Rs 171.58 Crs as on 31.03.2013 to Rs 305.62 Crs as on 30.06.2017.

2.       The company’s long term debts are quite reasonable at Rs 40.18 Crs as on 30.06.2017

3.       Something very important to note is that the company has acquired some intangible asset in Q1 of FY 2017-18 which has increased the total intangible asset from Rs 2.29 Crs as on 31.03.2017 to Rs 117.61 Crs 30.06.2017.

4.       Further the company’s major applications of funds are in current investments, which stood at Rs 247.84 Crs as on 30.06.2017.

5.       Company’s revenues have increased from Rs 138.36 Crs in 2012-13 to Rs 237.42 Crs in 2016-17. Even in Q1 of 2017-18 the company has made revenue of Rs 61.66 Crs which if annualized would be Rs 246.64 Crs. Quite good.

6.       Profit of the company has also increased from Rs 66.30 Crs in FY 2012-13 to Rs 113.56 Crs in FY 2016-17. Q1 2017-18 has showed a profit of Rs 30.63 Crs which if annualized would be Rs 122.52 Crs. Very well for this company.

Valuation!!!

The share is priced at Rs 1645 to Rs 1650. The EPS of the company is Rs 37.78 basic and 37.66 diluted. At this price the PE at basic EPS will be around 44. Although there are no other company to compare it with on the direct level, we can compare it with other exchanges like MCX and BSE. MCX is trading at a PE of 43 and BSE is trading at a PE of 40. Now this is wonderful pricing.

Therefore I would say Indian Energy Exchange Ltd is a “subscribe”.


Thanks for joining us friends.

Keep learning !!!! Enjoy investing!!!!



-          RicherInvestor



-Written by Roger Vins (CA, MCom)


Comments

Post a Comment

Popular posts from this blog

This Stock has Tripled in past 2 years and is still a buy!!!!

Image
Hello Friends, The stock that we are going to talk about today is Cheviot CompanyLtd. A stock that was trading around Rs 350 levels in 2015 has has today reached Rs 1072 i.e it has tripled in 2 years. Moreover the technical charts of the company show that in the past 2 years the company has had a very steady growth. Cheviot Company Ltd is a company primarily engaged in the manufacturing and sale of Jute products. The company is based out of West Bengal which is the Jute hub of India. The company is lead by a 60 year old veteran Mr Harsh Vardhan Kanoria having 42 years of experience.



So what is it that makes Cheviot Company so powerful?
Why is this small cap stock so strong?
Let’s look at some facts in accordance to the financial of 2015-16:

The company is a zero debt company (long term debt) with a net worth of Rs 418.09 Crores.The company’s EPS is Rs 80.85, which means the company is operating at a P/E of 13.54. The average industry P/E is 16.91. This shows that even after the uptrend fr…
Read more

What's the best way to make money from a Casino???

Image
How to make money from a casino. well the best way is to buy it. Today we are going to talk about the Company which is a market leader in the Indian casino industry, "Delta Corp Limited" which operates with the brand name "Deltin".
The Company is primarily engaged in the business of gaming & hospitality and has captured a lion's share of the Indian gaming market through its 5 casinos in Goa & Sikkim. The Company started its gaming & hospitality operation in India in 2006-07 and by the year 2010 it had 2 offshore casinos in Goa namely 'Deltin Royale' & 'Deltin JAQK'.
It's promoted by Mr. Jaydev Mode, a noted industrialist and businessman who has over 35 years of experience in various businesses including gaming & hospitality, textiles and real estate development. Under his leadership, the Company has established itself as a leader in the gaming industry in India. The Company has a strong & high quality management team…
Read more

NMDC Ltd is another cash cow. Its one of the strongest of stocks ever seen: Destiny Dividend Vol 2

Image
We all have seen that PSUs don’t give good returns when compared to private companies in the form of capital returns. But what we all fail to see is that capital returns are not the only way of recovering your investment. PSUs are the front-runners when it comes to dividends.
When it comes to PSUs, there is something About DIPAM you should know. We have explained about DIPAM guidelines on dividend in our earlier article on REC Ltd. There is a link below for the same.
http://www.richerinvestor.com/2017/03/rec-ltd-is-cash-cow-destiny-dividend_17.html
The company that we are gonna talk about today is NMDC Ltd. NMDC Ltd is a PSU that stands for National Mineral Development Corporation Ltd works in the business of mining.
The minerals mined by NMDC Ltd are Iron OreCopperTinTungstenGraphiteDiamond Etc

Yes friends NMDC also deals with diamonds. It has a mine at Panna, Madhya Pradesh where diamonds are extracted. The annual capacity is 84000 Carats of Diamonds. NMDC is also the largest producer a…
Read more