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Friday, November 19, 2010

MOIL (MANGANESE ORE INDIA LTD) : IPO SUBSCRIBE

Price Band- Rs.340 - Rs.375, Face Value- Rs. 10 , 5 % Disc to Retailers
Issue opens on- 26th NOV 2010;
Issue closes on- 1st DEC 2010,
QIB Book- 1,64,64,000 shares (50 % of Net issue)
Retail Book -  1,15,24,800 shares (35 % of Net issue)
Non-Institutional Bidders - 4939200 shares (15 % Net issue)
Employee Reservation- 6,72,000 shares (2 % of Total issue)
Net Public Offer - 3,29,28,000 shares (98 % of Total issue)
Total No. of Shares offered- 3,36,00,000  shares or 20 % of Paid up capital
Equity Shares outstanding after the Issue- 16,80,00,000 Sh
Equity Shares outstanding prior Issue- 16,80,00,000 Sh
Total Size of the Issue- Rs.1142.4 Crs - Rs.1260 cr. 

Standalone Result as on – 31st March 2010
Total Income - Rs. 1,087.853 cr
Net Sales - Rs. 969.395 cr
Net Profit Before Tax - Rs. 706.793 cr
Net Profit After Tax – Rs. 465.62 cr
Share Capital – Rs. 168 cr
Reserves & Surplus – Rs. 1508.716 cr
Earning Per Share – Rs. 27.72/sh.
Book Value – Rs. 99.80/sh.
Cash on Books - Rs.1700.14 cr , Rs. 100/sh.

MANGANESE ORE INDIA LTD - A MINI RATNA PSU
MOIL, India’s biggest & 5th largest in the world in manganese ore production & a public sector company setup in 1896, having its mines in MP& Maharashtra with an combined capacity of 1.093 million tonnes of manganese ore which constitutes 50% of total requirement of the country . The company operates at 60 % plus margins. MOIL is a profit making company for last 15 years and a Debt - Free Company with a cash reserve of Rs.1700 cr is coming with an IPO of about Rs. 1500 cr or 20 % of dilution (may offer 3.38 cr shares). Through this IPO the Central government will divest 10 % of its stake in the company, while Madhya Pradesh & Maharashtra government will divest 5 % each. The entire amount from the IPO will go to central & state governments. Central government holds 81.5 % in MOIL, whereas state government of Maharashtra holds 9.62 % & State government of Madhya Pradesh holds 8.8 % in MOIL.
The company plans to invest Rs.770 cr to expand its production capacity from current 10,93,363 tonnes to 1.475 million tonnes in next 5 years which is a 35 % of increase in its production capacity. MOIL has set up a Ferro Manganese Plant of 10,000 tonnes per year capacity & Electrolytic Manganese Dioxide (EMD) with an annual capacity of 1,000 tonnes per year
MOIL wants to acquire mines in Turkey, South Africa & Gabon. Company operates 10 mines - 6 in Maharashtra & 4 in MP. In recent years, the requirement of manganese has increased due to raise in Steel production; this has lead to greater demand for ore.
The company has a joint venture worth Rs.600 cr with SAIL & Rashtriya Ispat Nigam Ltd for setting up steel plant which is to be commissioned by June – July 2011. These two companies would be undertaking production of steel & MOIL will supply manganese ore. The Debt – Equity ratio in this JV is 1:1.
MOIL has been allotted 814 hectares of land for mining manganese ore in & around Nagpur. Most of these mines are underground (they have reached at 309 meters in depth) and are more than 100 years old; the company has all the required clearances from the Union Environment Ministry for both the states.
SO, I give a SUBSCRIBE / BUY to the MANGANESE ORE IPO.
Net Asset Value - Rs.99.8 (31 March 2010) ; Rs.110.71 (30 June 2010).
Net Worth - Rs. 1676.716 Cr (31 March 2010) ; Rs.1859.963 Cr (30 June 2010)
EV/EBITDA - 6.283 (31 March 2010) reasonably valued.
EV/EBITDA - NMDC - 18.05
EV/EBITDA - SESAGOA - 10.55
EV/EBITDA - SANDUR MANGANESE - 13.27
READ COMMENTS FOR MORE DETAILS.....

1 comments :

  1. HI !!
    HERE ARE SOME COMPARISON AS ON 31 March 2010 -
    MOIL -
    FV - Rs.10
    EPS - Rs.27.72
    RONW - 27.77%
    BV - Rs.99.80

    NMDC-
    FV - Re.1
    EPS - Rs.8.4
    RONW - 26.6%
    BV - Rs.36.00
    P/E - 23.4 times

    SESAGOA -
    FV - Re.1
    EPS - Rs.23.4
    RONW - 36.1%
    BV - Rs.94.8
    P/E - 10.2 times

    SANDUR MANGANESE & IRON ORE
    FV - Rs. 10
    EPS - Rs.33.3
    RONW - NIL
    BV - Rs.244.5
    P/E - 9.00 times

    ReplyDelete

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