IPO Radar

Date : 2/2/2008
IPO Information: Emaar MGF Land Limited is a joint venture between Emaar Properties PJSC of Dubai and MGF Development Limited (“MGF”) of India. Emaar is one of the world’s leading real estate companies with operations in 16 countries, as of August 31, 2007. MGF has over the last 10 years established itself as one of the key players in retail real estate development in Northern India.

The company commenced its operations in India in February 2005. The primary business of the company is the development of properties in the residential, commercial, retail and hospitality sectors. In addition,the firm has expanded in to health care, education and infrastructure.The company has announced an initial public offering of 102,570,623 equity shares for with a price band  between Rs 540 and Rs 630 per equity share of Rs 10 each.
This company has all the characteristics of a "Long term value play", because of the following reasons:

• The promoters are world renowned for their expertise and the brand Emaar is well known all over. This would build a decent customer base for the company in the domestic and international space.
• Fully paid land bank: Nearly 90% of the company's land bank is fully paid for and so we do not see any major fluctuations or volatility in the future earnings of the company.
• Valuations: At the upper band of Rs 630 Emaar, the price to NAV multiple will be around 0.85-0.90 which is reasonable and is in 10% cheaper than its peers like Unitech. So we expect the Emaar to trade around Rs 700 - Rs 725 on listing.

We recommend investors who have a long term vision and are looking for moderate returns to "Apply" for the IPO.

Date : 1/27/2008
IPO Information: OnMobile Global, a leading provider of telecom value added services has come out with an IPO of 1,900,5454 equity shares in the price band of Rs 425 - Rs 450.

The services of the firm include: Contests,Infotainment,Interactive Media,mCommerce,Missed Call Alert,Multimedia Service,Mobile Marketing,MSearch,Music,On Device Portal,Phone Back-up,RBT,Voice Portal and Voice SMS etc. The company clients include all the major telecom operators in India and global names like AOL, Singtel & Disney.

This company has all the characteristics of a multibagger in the making, because of the following reasons:

• The market: The company is in the interesting space of "telecom value added services" which derives most of it's business from selling services targeted  towards the cellular phone consumers. The telecom space and especially the cell phone space is expected to growth at a CAGR of more than 35%. So we should see a growth rate of more than 100% in the service space as more and more Indian consumers will look forward to avail services like Missed Call alert and Voice SMS. In addition to this we see the Mcommerce space to create another growth avenue for the company as more and more businesses would choose Mobile as a mode of increasing their visibility
•  The product: The company provides the latest technology available in the market and has been innovative in the past few years by increasing the portfolio of services it provides (See the details of services above)
•  Competitors: The company does not have a huge competition in this space. Although the barriers of entry are less, the company will have the first comer  advantage and this is viewed as a huge positive
• Management & Investors: Onmobile has a great management team lead by Arvind Rao who is has vast experience in this space.The investors backing this company   include Argo Global Capital, Infosys Technologies, Deutsche Bank and Goldman Sach .

  We at IndiaBears.com rate this IPO as a "Must Apply" based on the future prospects of the firm and the IPO price of Rs 450 which is at 15 times its FY10E (which we think is reasonable in this space). George Soros picks up stake in On Mobile

Date : 1/20/2008
IPO Information: There are four IPO's opening up next week

J Kumar Infrastructure
Cords Cable Ind
OnMobile Global
KNR Construction

Our pick for the week is Cords Cable Ind a New Delhi based specialised cable manufacturer  will enter the capital market with an initial public offering (IPO) of 30,85,000 equity shares of Rs 10 each for cash at a price through a 100% book-building process.The issue will open for subscription on January 21, 2008, and close on January 24, 2008. The price band has been fixed between Rs 125 and Rs 135 per equity share.

Investment Rationale:
* The company is in the business of manufacturing cables which are consume in infrastructure and Power Industries

* Robust growth in sales and profits from the past 4 years

* Established clientile which includes BHEL, NTPC and REL and a decent order book position of nearly 80 crores.

* Attractive valuation compared to peers in the market.

* The company is planning exports to middle east in the second half of the year The price is fixed at 12-13 times its projected FY08 earnings of Rs 11.00 which looks reasonable. We recommend our subscribers to Invest in this issue as we see the company to show robust growth in the coming years.Investors can look for a 30-40% appreciation on listing.