Kaushalya Infrastructure Development Corporation Ltd IPO

Kaushalya Infrastructure Development Corporation is also known as KIDCO
IPO Prospectus is here http://www.sebi.gov.in/dp/kaushalya.pdf
The Initial Public Offering (IPO) of Kaushalya Infrastructure Development Corporation Limited opens for subscription on November 20.
These are the reviews and recommendations for x by various websites.
Kaushalya Infrastructure Development Corporation Limited IPO ...

Avoid Kaushalya Infrastructure IPO: SPA Sec
Moneycontrol.com, India - 4 hours ago
SPA Securities has come out with report on Kaushalya Infrastructure Development Corporation IPO. It has recommended ignoring the issue. ...

Kaushalya Infrastructure: Avoid
Sify, India - 17 Nov 2007
Investors can avoid the initial public offer of Kaushalya Infrastructure Development Corporation (Kaushalya) for now. Given the small size of business and ...

Kaushalya Infrastructure: Wait n Watch
Business-standard
Investors may want to wait for the company to gain some more ground, before betting on it.
The factbox on Kaushalya

Registered Office Address	HB 170, Sector III, Salt Lake, Kolkata � 700 106, India
Phone	91-33-2358 3694 / 2334 4166	Fax	91-33-2334 4148
Email	info@kaushalyainfrastructure.com	Website	http://www.kaushalyainfrastructure.com
Issue Open	20/11/2007	Issue Close	23/11/2007
Issue Size	85,00,000 Equity Shares	Issue Type	Book Building
Face Value	Rs.10/-	Price Range	Rs.50/- to Rs.60/-
Tick Size	Re.1/-	Market Lot	100
Minimum Order Qty	100	Listing Stock Exchange	Mumbai, NSE
Registrar To The Issue	Intime Spectrum Registry Ltd.
Book Running Lead Managers	SREI Capital Market Ltd.
Analysis Company Background: Kaushalya Infrastructure Development Corporation Ltd. (KIDCO) was incorporated as R.M.S. Exim Pvt Ltd in June 1992 & the name was changed to Kaushalya Infrastructure Development Corporation Pvt Ltd. in November 2001. The Company was subsequently converted into a public ltd company & name changed to the present in February 2002. KIDCO is engaged in construction and maintenance of roads, highways and bridges, erection of transmission lines, electrification projects, as well as commercial and residential complexes. KIDCO has four subsidiaries namely, Bengal KDC Housing Development Ltd., Kaushalya Township Pvt Ltd., Orion Abasaan Pvt Ltd. and Kaushalya Nirman Pvt Ltd. KIDCO’s infrastructure development operations are organized in three major business divisions: Kaushalya Nirman: Specializes in construction of roads, highways, bridges and industrial infrastructure. Kaushalya Gram: Specializes in Electrification and Irrigation projects focused on development of rural India. Kaushalya Parivar: Specializes in Construction of Commercial & Residential Complexes. KIDCO is based in Eastern India with head office in Kolkata having clients such as AMR Construction Ltd., Punj Lloyd Ltd., Engineering Projects ( India) Ltd., Power and Energy Department etc. Other key patrons include various Government Undertakings, State Public Works Departments as well as State and Central Public Sector Undertakings. Post issue promoter and promoter group shareholding will reduce from 91% to 51.54%. Objects of Issue: To purchase capital equipments comprising construction and infrastructure equipments for execution of projects. To acquire land and land development rights and real estate development. To investment in BOT/BOOT projects and Joint Ventures. To meet the long term working capital requirements. To meet general corporate expenses. Strengths: OPM has increased from 6% in FY 03 to 11.9% in FY 07. Till June 30, 2007 OPM of the company stood at 13.4%. Weaknesses: The company had negative cash flows from operating & investing activities from FY 03 to FY 07. Cash flows from operating activities for FY 07 was to the tune of Rs. -11.02 crore due to rise in debtors and loans & advances and Rs. -2.82 crore from investing activities on account of purchases of fixed assets. The debt-equity ratio of the company increased from 0.48 in FY 06 to 1.06 in FY 07 due to increase in the long term debt taken by the company from Rs.7.09 crore in FY 06 to Rs. 23.08 crore in FY 07. Interest coverage ratio decreased from 13.6% in FY 04 to 3.7% in FY 07 due to rise in the interest expense of the company. Valuation: Sales increased at a CAGR of 36.34% to Rs. 54.25 crore in FY 07 from Rs. 15.69 crore in FY 03 on account of regular performance of works contract. For the June quarter, sales stood at Rs. 15.96 crore. Net profit increased at a CAGR of 63.17% from Rs. 0.54 crore in FY 03 to Rs. 3.88 crore in FY 07. PAT for quarter ending June 2007 was Rs. 1.09 crore. PAT has increased over the years owing to major new projects undertaken by the company & rise in the revenues. The RONW has reduced to 18% in FY07 from 21.2% in FY 06 because of increase in share capital. NPM has increased from 3.5% in FY 04 to 7.2% in FY 07. For quarter ending June 07 NPM was 6.8%. Book value per share increased from Rs. 13 in FY 03 to Rs. 21.4 in FY 07 mainly due to increase in the reserves & surplus of the company. BV per share as on 30 June, 2007 was Rs. 22.5. EPS of the company increased from Rs. 1.8 in FY 03 to Rs. 3.8 in FY 07. EPS as on 30 th June 2007(annualized based on first quarter of FY 08) was Rs. 4.4. Post issue EPS is 1.98 (based on PAT of year ending on March 31st, 2007). Post issue PE at upper price band is 30.24 and at the lower price band is 25.20. The shares are been offered at a price band of Rs. 50/- to Rs. 60/- per share.