IPO Update : Nectar Lifesciences Ltd.

Nectar Lifesciences Ltd. has come in to the orimary markets with an offer of Public issue of up to 38.70 Lacs equity shares .The issue would constitute 26% of the fully diluted post issue paid-up capital of the company. The company has put the price band of Rs.200-240

Looking into the company :

Chandigarh-based Nectar Lifesciences Ltd. (NecLife) earlier known as Surya Medicare Ltd. is amongst the largest manufacturer and exporter of Cephalosporins and Semi Synthetic Penicillins in India.

The Cephalosporins drug segment is growing at a rapid pace and is the largest selling therapeutic segment in India. The company has aggresive plans to maintain its leadership position in this segment.

The company is also venturing into the Non-Antibiotic segment. The drugs to be produced under this segment belong to the category of Cardiovascular (CVS) / Anti-Histamine Therapeutic Segments. They are realtively new drugs and have huge growth potential.

The issue proceeds will be used to set up a new formulation plants at Baddi and derabassi & invest in Research and development activities.

The company has earned an EPS of Rs.20 for the year 2004-05 which converts into a P/E of 12 at the higher price band.

The company has sizeable debtors on its balance sheet which is around 25%of its sales.

Investment Guru recommends Investors to apply in the IPO. The valuations at the offer price looks reasonable in the current market scenario and leaves some scope for the listing gains. However, Investors should not keep their hopes too high with the listing gains. This is also an opportunity for those who wish to hold on for a long term to enter at the IPO levels.

Issue Opens : 22-June-2005
Issue Closes : 28-June-2005
Listing : BSE & NSE

15 comments:

Sumit said...

Gud job rajesh..ppl like u r an asset to those who look for guidance and tips in investing

Talking abt nectar in a little detail or with figures

Nector Lifescience issue price band implies a PE of 16.5 to 19.8 times FY05 earnings compared to industry PE of about 23.2.

Its a gud indicator (withut considerin oversubscrptn in retail portion coz till nw tht hasnt been fully subscribed even) tht it shld list arnd 330-350

Also Rajesh can u post ur views on Era Construction as well it closes on wednesday....Wat am lookin in it frm u is it true tht both IVRCL and TATA's have interest in this company or is it just a rumour to trigger subscription levels...coz i have read IVRCL chariman joined ERA Construction board quite recently???? Is all this true???

Thanks to u in advance sir

Anonymous said...

Good job rajesh. I read your provogue and nectar ipo posts.
Keep them comin!!

Anonymous said...

Thanks for the update Rajesh. It was really useful in making up my mind. How much upside do you see in nectar IPO.
Also would be grateful if you can give your views on Era cons. IPO. I am a little doubtful about this.

Anonymous said...

Soni bhai,
You are great.
Please keep up your good work.
I am karthik from nasik and read your blog daily.

hit said...

Hi Sony,

Very good work!

Thanks for your reply!!!!

Hitesh

Yogi said...

Rajesh,

thanks for the NectarIPO review
I am looking forward to your views on Era Constructions IPO.

Yogi said...

Rajesh,

I wanted to appreciate your work by mentioning that your views on karnataka bank you posted sometime in May have fruited. Unfortunately I could not gain from it. However I want to know your suggestions on current scenario on karnataka

thanks

Yogi said...

The figures on karnataka are,
5-may-05
Karnatak Bank
Buy at 64-66 levels
Expected to touch 90 within Three months Time frame.

It has touched 90 within two months.....rajesh do you expect it prospect further...?

regards

Narendra said...

Why didn't you post views on Jindal Poly IPO!?
I invested in it. But, the stock is below the upper band price today!
Looks like it is going the PNB way.
Please give me your views on this and the way to reduce the loss.....

-Narendra

hit said...

Hi,

I am of the view that lot companies are in the IPo market to fool the retail investors! Every day a new ipo is coming up with IPO. Somebody should try to throw some light on this aspect. Rajesh may not be able to devote time to study about all the IPOs. But the burden should be shared by 4/5 people who has some time to spare.

Regards.
Hitesh

Rajesh Soni said...

Hi All,
Thanks for all you kind words of appreciation for the blog. I asure you that this blog will continue to be useful to you for the times to come.
Wish you ll Happy Investing!
Cheers!!!

Rajesh Soni said...

Hi Narendra
Though I didn't put any post on Jindal poly, I am sure I answered some query on this in the comment section and cautioned visitors that it may go PNB way.

Rajesh Soni said...

Hi Hitesh,
yes, you are absolutely right. I encourage all the viewers to actively participate on this blog.
It's your blog and all of you are equally responsible to make it a success that all of us can benefit.
I am planning to start a programme on this blog where I will post the write-ups from the visitors on the BLOG ! SO gear up and be ready to participate!

Cheers!

Anonymous said...

Hi Rajesh,
Thanks for the update on Nectar Life Science. Pls advise on other issues like Era Construction,SPL Industries etc.

Arvind

nitin said...

Dear Rajesh you are doing a great service to numerous investors like me and am looking forward to your letters onyour blog!!nitin