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(Post 1 of 313) 08/01/2004.15:08:03 |
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MEGHMANI Organics scores ' first ' on SGX
Fibre 2 Fashion - India Winner of Six Sigma award, and a leading pigments and pesticides maker from India, Meghmani Organics, is poised to be the first Indian company to list on the ... http://www.fibre2fashion.com/news/NewsDetails.asp?News_id=7811 MEGHMANI launches first Indian IPO in Singapore Channel News Asia - Singapore SINGAPORE : India-based pigment and pesticide maker Meghmani Organics has launched its initial public offer, making it the first IPO from India in Singapore.... http://www.channelnewsasia.com/stories/corporatenews/view/98450/1/.html INDIA companies may be next big thing on Singapore Exchange Channel News Asia - Singapore ... But that may soon change if the initial public offering of Gujarat-based Meghmani Organics on the Singapore Exchange proves to be a success.... http://www.channelnewsasia.com/stories/corporatenews/view/97016/1/.html INDIAN Companies Beefing Up Presence Forbes - USA ... He didn't name the three countries that had a bigger presence. "Last week, Meghmani Organics, an Indian pigment manufacturer, lodged a preliminaryprospectus ... http://www.forbes.com/business/businesstech/feeds/ap/2004/07/08/ap1449076.html |
| (Post 2 of 313) 08/01/2004.15:11:23 |
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Mr Raymond Lim, Minister of State for Trade & Industry and Foreign Affairs, at the Inaugural Session of the Fourth "India Calling" Summit on 9 July 2004
"There are nearly 50 Chinese companies listed on the SGX, but no Indian companies have listed yet. Singapore’s capital markets offer an untapped pool of liquidity for Indian companies. Last week, Meghmani Organics, an Indian pigment manufacturer, lodged a preliminary prospectus with the Monetary Authority of Singapore. I hope we can welcome the first Indian listing this year." http://www.mti.gov.sg/public/NWS/frm_NWS_Default.asp?sid=39&cid=2062 |
| (Post 3 of 313) 08/01/2004.18:13:26 |
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Meghmani launches first Indian IPO in Singapore
30 July 2004 2109 hrs (SST) http://www.channelnewsasia.com/stories/corporatenews/view/98450/1/.html SINGAPORE : India-based pigment and pesticide maker Meghmani Organics has launched its initial public offer, making it the first IPO from India in Singapore. Meghmani is offering some 100 million Singapore Depository Shares, or SDS, at 28 cents each. It has to issue SDS because Indian exchange-control laws do not allow shares of companies registered in that country to be listed on overseas stock exchanges. Of its total S$17.4 million in net IPO proceeds, it is using almost S$6 million to register its agrochemical products for export into overseas markets. Another S$5 million will go into making off-patent pesticides, while S$4 million will be used to repay bank loans. The issue price works out to a historical price-earnings ratio of 11.4 times. The offer closes on August 5 and the SDSs are expected to start trading on the Mainboard of the Singapore Exchange on August 10. - CNA Indian companies may be next big thing on Singapore Exchange 22 July 2004 1817 hrs (SST) http://www.channelnewsasia.com/stories/corporatenews/view/97016/1/.html SINGAPORE : With the impending launch of the first Indian initial public offering on the Singapore Exchange, many minds are wondering if it will spark an Indian IPO fever. For some time now, Chinese companies have hogged the limelight in Singapore's IPO market. But that may soon change if the initial public offering of Gujarat-based Meghmani Organics on the Singapore Exchange proves to be a success. "The interest has now been heightened. So we want to leverage on our network of about 3,000 staff and partners in India to attract the really quality companies to come to Singapore for listing and we are looking for really high growth companies with a global market presence," said Benjamin Kan, managing director at PricewaterhouseCoopers. A quick check with investment bankers here show that many are keen on the still untapped Indian market. But the problem is, most have had not much success in convincing the Indian companies to choose Singapore as the place to list. Most Indian companies looking overseas for funding have tended to choose the bigger US and European markets. There is also the problem of capital control, which makes an overseas listing difficult for Indian companies. Still, with Meghmani taking the first leap of faith, many are hoping more will follow suit. "Listing in Singapore will give us lots of global exposure.The company will be valued internationally, in the right spirit and at the right price. And for any further expansion it will be a great help to us. If we were to list in the New York stock exchange or London stock exchange, looking at the mid-size cap of our company, we would have been lost," said Ashish Soparkar, managing director of Meghmani Organics. But will companies like Meghmani garner as much interest among local investors as the China IPOs? "It's a question of performance and how the aggressive the issuers want to be. I think if you price the issues well, and people can make money, and they are comfortable with the disclosure level, then I think it will be a trend that people will start to build on their confidence level," Kevin Scully, managing director of Netresearch Asia said. "Fair companies should be trading at about 10 times PE. You cannot compare it to a Singapore valuation; you have to compare it relatively to the risk in India. So that means any issues from India should come in below 10 times. If not then there's no interest for the Singapore investors," he said. Whether Indian IPOs will be the next big thing on the local bourse, only time will tell. But for now, all eyes will be on Meghmani Organics, whose IPO launch is slated for next month. - CNA |
| (Post 4 of 313) 08/01/2004.18:15:04 |
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Entry of Indian IPO could ring in more opportunities for investors
30 July 2004 0825 hrs (SST) http://www.channelnewsasia.com/stories/singaporebusinessnews/view/98339/1/.html SINGAPOREAN : Singaporean investors looking to invest in the booming Indian market can do so when the first initial public offering (IPO) from that country debuts on the local bourse in the coming weeks. But unlike the success enjoyed in relation to China companies — 15 were listed here last year — the process to get India listings has been relatively slow. So, observers hope that the listing of Gujarat-based pigment and pesticide manufacturer Meghmani Organics will whip up investor interest in the country that overtook China as Singapore's fastest-growing trade partner for the first half of this year. But, first, there must be sufficient "buy-in" to raise the comfort level of Singaporeans to invest in this unfamiliar territory, said analysts. For example, the China-IPO fever peaked only last year, seven years after traditional Chinese medicine firm Tianjin Zhong Xin Pharm Group had become one of the first Chinese firms to list in Singapore in 1997. "As with all maiden listings, people will hesitate at first," said Sias Research analyst Terence Wong. "They need time to warm up to the idea, because of the lack of comparables." He pointed to Singapore-based Hyflux as the first water firm to list in 2000 before spawning a new trend of water-related stocks on the local bourse. Optimists point to the many small and medium-sized enterprises in India that could find Singapore an attractive listing venue, as they are likely to be drowned amid the bigger listings in their country. With the heightened interests, PricewaterhouseCoopers — the issue manager for Meghmani — is looking for "really quality" companies to list here, especially high-growth firms with a global presence, said its managing director Benjamin Kan. But others wait-and-see. For instance, Mr Choo Chee Kong, chief executive of corporate firm SBI E2-Capital does not eye India at the moment. "A lot of the discovery process relating to India is necessary before we are familiar with how Indian companies operate. So we'd rather let the big boys do it." Chief editor Vasu Menon of Finatiq.com, said that as the first Indian IPO here, Meghmani "will be have to prove its mettle", especially with the spill-over of global tech concerns and poor earnings from the United States in recent weeks. Despite the wooing by the Singapore Exchange, it is still relatively difficult for Indian firms to list overseas. This may impede a "flood" of listings here, observers said. India's exchange-control laws, for example, do not allow shares of Indian-registered companies to be listed on overseas stock exchanges. Instead, they require that rupee-denominated shares be used as depository receipts for overseas investors. Hence, Singaporeans would be dealing with Singapore Depository Shares (SDS) — which represent ownership of a listed firm's shares kept with a depository bank — instead of the actual shares. Although an SDS is quoted, traded and settled in Singapore dollars, and there are no differences in dividends and investor rights, investors may have to get used to this seldom-used instrument, observers noted. "But in the medium term, it is the company's fundamentals that will impact its stock price performance and as long as the fundamentals are good and the company has a good track record, it will go down well with investors," Mr Menon said. - TODAY |
| (Post 5 of 313) 08/01/2004.18:15:56 |
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Associated Press
Indian Companies Beefing Up Presence 07.08.2004, 11:52 PM A rapid rise in the number of Indian-owned companies setting up shop in Singapore has the city-state eagerly anticipating the first listing of an Indian firm on its stock exchange, a minister said Friday. The remarks came as Singapore Prime Minister Goh Chok Tong kicked off his first full day of a four-day tour of India, aimed at deepening trade and investment links between the two states. Raymond Lim, minister of state for trade and industry, said some 150 Indian companies a year are setting up operations in Singapore. "There are already 1,500 Indian companies based in Singapore," he told an investment seminar in the Southeast Asian city-state. Their numbers had been rising by about 10 percent a year, and they now were the fourth-largest commercial community in the island country of 4 million, Lim said. He didn't name the three countries that had a bigger presence. "Last week, Meghmani Organics, an Indian pigment manufacturer, lodged a preliminary prospectus" with financial regulators in Singapore, Lim said, referring to the first step in getting a listing on the stock exchange. "I hope we can welcome the first Indian listing this year." Businesses and the government in trade-dependent Singapore have long targeted commercial opportunities in booming China, but have only recently turned their attention more forcefully toward India. The same disparity is evident at the Singapore Exchange: while the market lists the shares of almost 50 Chinese firms, it is still working on its first Indian listing. Lim said Indian companies should base overseas operations in Singapore to sell their goods and services in Southeast Asian. |
| (Post 6 of 313) 08/01/2004.18:16:43 |
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Banking, Finance & Law
26 June - 2 July 2004 India's Meghmani Organics eyes SGX listing. The Indian company specialises in producing green and blue organic pigments used in printing ink, textiles, plastics, paint and rubber. It also produces a wide range of commonly-used crop and non-crop pesticides. The prospectus filed with MAS is for trade of Singapore depository shares (SDS) held by DBS Bank, the depository bank, as Indian exchange control laws do not allow the trading of Indian-registered companies to be listed on foreign stock exchanges. Meghmani Organics would be the first Indian firm to list here. Meghmani Organics chose to list its shares in Singapore because of the premier equity market recognised for its good corporate governance practices and well regulated trading environment. http://www.contactsingapore.org.sg/news_banking_article20040702b.shtml ECONOMY IN BRIEF First Indian firm to seek SGX listing India-based Meghmani Organics, a manufacturer of pigments and pesticides, is seeking to list on the mainboard and has lodged its preliminary prospectus with the Monetary Authority of Singapore (MAS). If it succeeds, it will be the first Indian company to list on the SGX. Meghmani's managing director, Mr Ashish Soparkar, said in a statement yesterday: 'We are positive that a listing on SGX, one of the most internationalised exchanges in Asia, will be an important asset in our company's plans and enhance our corporate image.' Founded in 1986, Meghmani now boasts more than 100 customers around the world, served by 20 overseas distributors. Adapted from The Straits Times, 1 Jul 2004 |
| (Post 7 of 313) 08/01/2004.18:17:31 |
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TODAY 1 August 2004
THE COLOUR OF MONEY: INDIA'S MEGHMANI LAUNCHES IPO ON SGX --------------------------------------------------------- THE COLOURS on the greenback can be traced to another country - India. As one of the world's top makers of green and blue pigments, Gujarat-based Meghmani Organics supplies these ingredients to a Swiss company, whose security ink is used to print US dollar bills. More than just for printing money, the pigments made by the Indian company - which launched its initial public offering (IPO) on the Singapore Exchange (SGX) on Friday - are supplied to over 100 customers in industries like plastics and textiles, from the US to Asia. Meghmani is offering 100.4 million Singapore Depository Shares (SDS) at 28 cents each to raise $28.1 million. Singapore investors will be dealing in the SDS, instead of actual shares, due to Indian exchange-control laws. The SDS would be kept with depository bank DBS. The SDS are quoted, traded and settled in Singapore dollars. The 18-year-old company posted a profit before tax of $10 million on revenue of $73.7 million in fiscal 2003, out of which 75 per cent of turnover stemmed from its overseas markets, with the rest from India. As the first Indian IPO on the SGX, Meghmani said its decision to list in Singapore was influenced by the level of interest shown by institutional investors during a visit here last year. Meghmani plans to use the net proceeds of $17.4 million to increase the production capacities of its plants, set up a new research and development centre and repay bank borrowings. The offer will close on Aug 5, with trading to start on Aug 10. - Val Chua |
| (Post 8 of 313) 08/01/2004.18:18:09 |
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Business Times - 31 Jul 2004
Indian pigment maker to raise $17.4m in IPO Meghmani needs funds to expand production capacity By TAILA KRISHNAKUMAR POISED to be the first Indian company to list on the Singapore Exchange, pigment and pesticide manufacturer Meghmani Organics Limited says its biggest concern is meeting the sharp increase in demand for its products worldwide. And to help it seize the business opportunities ahead, the company has launched its Singapore initial public offering to raise net proceeds of $17.4 million. Meghmani is offering 100.4 million Singapore Depository shares (SDSs), each representing one half of one equity share of 1 rupee, at 28 cents a piece. This represents about 25 per cent of Meghmani's enlarged share capital of 200.6 million shares on a ratio of 1 SDS to 0.5 Meghmani shares. Of the 100.4 million SDSs, 69.4 million are new and 31 million are vendor units being sold by private equity funds Jardine Fleming Electra and Singapore-based ASC Capital, which together took a one third stake in Meghmani in 1996. But Meghmani's co-founders Ashish Soparkar and Jayanthi Patel have said they will not be selling their shares even after their moratorium runs out in six months. The invitation comprises 7.5 million SDSs by way of public offer and 92.9 million placement units. At 28 cents per SDS, Meghmani is priced at a historical price earnings ratio of 11.4 times, based on its net earnings for the financial year ended March 31, 2003. The bulk of the proceeds will be used to fund capacity expansion programmes for the manufacturing of more pigments and pesticides ($5.8 million), the construction of a lab to develop more products ($2.3 million) and to register pesticides for export overseas ($5.7 million). The balance will help to repay bank borrowings and fund working capital and general corporate needs. At present Meghmani, which literally means 'raining gems', earns three quarters of its sales abroad in over 40 countries. The US accounts for 29 per cent of sales, Europe accounts for 17 per cent, while Asia and South America make up 19 per cent. Meghmani is only the third Indian company to float its shares abroad without listing first on a domestic exchange. 'With such a large customer base abroad it makes sense to have a primary listing overseas,' said Mr Soparkar. 'And for us Singapore was the obvious choice for three reasons. First, instead of settling for second class status in North America or Europe, we get first class status on the Singapore Exchange. 'Second, there are many international fund managers located here who understand and appreciate complex businesses and accept new companies on merit. Thirdly, Singapore has a great reputation for financial and corporate governance.' Mr Soparkar founded Gujarat Industries - Meghmani's predecessor - in 1977 with Mr Patel, with a combined capital of US$1,000. The company started out supplying blue and green base-colour pigments to the domestic textile industry. By 1986, Mr Patel's family, who also owned a colour pigment operation, merged its businesses into their existing company. And by 1996, the pigment manufacturer had also ventured into the pesticides business. Today pesticide revenues account for 50 per cent of the sales mix and 56 per cent of its exports. Meghmani is said to control about 8 per cent of the global market for blue pigment and about 7 per cent of the global market for base-insecticides. Earnings and revenue have grown by 15 to 20 per cent on a compound annual rate in the last 10 years. Meghmani reported pre-tax profit of $10.1 million on revenue of $73.7 million for the year ended March 31, 2003. And for the eight months ended Nov 30, 2003, the company registered a pre-tax profit of $8.8 million on revenue of $57 million. |
| (Post 9 of 313) 08/01/2004.21:34:22 |
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I spoke to a fund manager friend and he seems to like Meghmani (Make Money, he called it!) much.
Reckons Meghmani could become another Ranbaxy, or Dr Reddy's Labs, both of which manufacture patent runoff drugs under their own labels, and act as outsource agents for OEM players. Both those pharmas are mow multi-billion conpanies! Meghmani is similarly structured to handle oustroucing of colour pigments and pesticides. Manufacturing in India, where wages are a mere USD500/year, compared with US$20,000-50,000/year in USA & Europe. Their products are now 75% exported (down from 90%, ad India starts its own consumption for industries) to 40 countries, but only to +100 customers, mostly intermediaries of MNCs. Have to study the situation, and turn to the web for more information. Any assistance from other forumers welcome. |
| (Post 10 of 313) 08/01/2004.21:49:10 |
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Hi Warren, the connection to DBS and hence Temasek looks good. Also 1st Indian listing in Singapore.
Just worried about the KU (Kartecks United) group, who have been a major reckoning Power in the last few IPOs.  |
| (Post 11 of 313) 08/01/2004.22:00:06 |
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But then again, seeing Memtech's example, I suppose, this would be one hallowed ground where even the most seasoned of the KU hooligans would fear to tread.   |
| (Post 12 of 313) 08/02/2004.07:59:39 |
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If investors are getting risk adversed to China issues... what about Indian companies. Personally, I have little idea what kind of corporate governance and transparency Indian companies in general have. It remains to be seen as time can only tell.
As for me, from the very little that I know, I will stag this issue at best, leaving to the more well informed players to hold the shares. People like me who are unfamiliar with Indian companies will leave the "discovery premium" to others. |
| (Post 13 of 313) 08/02/2004.09:04:47 |
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Aiyoyo.. market still weak today leh |
| (Post 14 of 313) 08/02/2004.09:49:03 |
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Not an auspicious sign for STI.  |
| (Post 15 of 313) 08/02/2004.10:03:24 |
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Aiyoyo... so scary huh? |
| (Post 16 of 313) 08/02/2004.10:22:27 |
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Keiko...Mr Mani so hairy or scary? 
With PE 11x don't appear overvalued, nor is cheap since there are many recent IPOs after their recent sell-down now commanding only PEs of around 6 -7x prospective based on prospectus projections. (Here below must read with slight indian accent to appreciate the fine texture of Indiaglish) >>> But Megha is the first overseas Indian IPO to be listed here, despite using ADR, and may find supporters from plenty money indian community from around hometown, region and even from India itself due to many impt reasons i even can't mention here... |
| (Post 17 of 313) 08/02/2004.10:25:26 |
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I have just placed Keiko on my Ignore list. Damn irritated by his senseless bantering. (I am in my "mood" today). |
| (Post 18 of 313) 08/02/2004.10:29:02 |
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relax......
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| (Post 19 of 313) 08/02/2004.10:35:24 |
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Memph, mopi-Kiko is unique... just like Skybull said, ignore lah... he is paying public you know n u dont own SI!? |
| (Post 20 of 313) 08/02/2004.11:10:27 |
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I need advice. My broker is willing to give me 20000 of Meghamani at 0.28. Is it workth taking it. I have to reply him before noon. Regards, |
| (Post 21 of 313) 08/02/2004.11:21:29 |
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Aiyoyo... if u wan buy from open market.. could be cheaper leh.. |
| (Post 22 of 313) 08/02/2004.11:47:40 |
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This one can go either way. I was offered between 50 lots to 800 lots.
I took 600 lots. Hope this is a fruitful decision. |
| (Post 23 of 313) 08/02/2004.11:50:07 |
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Aiyoyo.. got fruits ahhh? |
| (Post 24 of 313) 08/02/2004.11:58:47 |
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Not sure but worth a gamble. This is a big Casino anyway. |
| (Post 25 of 313) 08/02/2004.12:07:31 |
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Aiyoyo.. market still very weak till now.. negative sentiments... |
| (Post 26 of 313) 08/02/2004.12:11:28 |
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Here, I am struggling to make up mind whether to get 20000 shares or not and people are going for 600 LOTS. I am indeed a very small fish. Better keep away from you big guys la... good luck and best wishes, |
| (Post 27 of 313) 08/02/2004.12:17:01 |
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Aiyoyo.. look at china toilet paper.. 36.5 now leh? think b4 u leap... open market cheaper.. same underwriter also |
| (Post 28 of 313) 08/02/2004.12:32:25 |
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China paper is only 31.5 now and NOT 36.5...Keiko...take care. |
| (Post 29 of 313) 08/02/2004.12:48:57 |
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Nervous, have u decided to take up the offer? who is your broker? |
| (Post 30 of 313) 08/02/2004.12:51:17 |
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Hi Majoram,
I have declined the offer (half-heartedly). My broker is from DBS-Vickers. What do you think about the Issue? Regards, |
| (Post 31 of 313) 08/02/2004.13:14:48 |
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Tempted to apply as it is a landmark, being the first IPO from India, but will see how market sentiment is this week....closing on 5August, 12 noon.
Nervous, you must be an important client for DBSV to offer you! |
| (Post 32 of 313) 08/02/2004.13:36:32 |
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Majoram,
I don't know what you mean by important client - but yes I am with them for a considerable time. Regards, |
| (Post 33 of 313) 08/02/2004.13:47:43 |
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Aiyoyo... i think maybe response lousy so that's why can get sooo many placements sooooo easily lahhhh... |
| (Post 34 of 313) 08/02/2004.14:13:46 |
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Aiyoyo.. market still very weak till now.. negative sentiments... |
| (Post 35 of 313) 08/02/2004.14:14:57 |
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Keiko It seem like everybody answer or question, you do have some comment on it... guess you have nothing better to do... too free.... haha..no wonder stock market are so quiet today....
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| (Post 36 of 313) 08/02/2004.14:17:39 |
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Bluesteel, Keiko, tks for yr reactions! |
| (Post 37 of 313) 08/02/2004.14:21:15 |
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| (Post 38 of 313) 08/02/2004.14:24:45 |
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Nervous,
ask you a simple question. How much volume you generate at DBS Vickers? |
| (Post 39 of 313) 08/02/2004.14:39:03 |
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Hi STB,
No a lot. But your comment or question seems to suggest that I should take up the offer as it appears good. Please let me know ASAP if that is the case. Regards, |
| (Post 40 of 313) 08/02/2004.18:17:45 |
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Aiyoyo.. server down so long ahhhh.... |
| (Post 41 of 313) 08/03/2004.10:04:41 |
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The Times of India Online
http://timesofindia.indiatimes.com/articleshow/799612.cms -------------------------------------------------------------------------------- Meghmani to be first Indian co listed on SGX NARAYAN B BHATT TIMES NEWS NETWORK[ MONDAY, AUGUST 02, 2004 02:13:20 PM ] AHMEDABAD: The Rs 200-crore plus Ahmedabad-based Meghmani Organics Ltd will have the unique distinction of becoming the first Indian company to be listed on the Singapore Stock Exchange (SGX) from August 10, 2004. Meghmani is offering Singapore depository shares (SDS) at a price of Singapore $0.28 per SDS to raise an aggregate of S$28 million (Rs 74 crore). Out of this the net proceeds accruing to Meghmani will be around S$ 17 million (Rs 46 crore), while the rest will go to two foreign private investment companies. In Indian rupee terms, the issue price comes to around Rs 148 per share on a face value of Rs 10, which works out to a substantial premium of Rs 138 per share of Meghmani. Why did the company go for a listing on the Singapore exchange instead of a domestic issue or an American or European offering? "ASC Asian Equity Ltd, one of the private investment firms is Singapore-based and the other one, Electra Partners is from Hong Kong. Both of them suggested that we list on SGX," said Jayantibhai Patel, executive chairman of Meghmani. "A year and a half back, officials from the SGX had made us a presentation to consider a listing there. Many mid-sized Chinese companies are being listed on the SGX. So, to enhance the company's corporate image globally we decided to go for a SGX listing," said Patel. He also admitted that they had looked at the options of a US or London listing, but their issue size was considered small for those exchanges. "In 2-3 years time, when we require more funds, we plan to make a public offer in India," he added. In fact, being the first Indian company wanting to list on the SGX, Meghmani's SDS issue was delayed by a couple of months as Singapore's stock market regulatory body wanted full details on the differences between Indian and Singaporean accounting and corporate laws. Post-issue on the SGX, 25 per cent will be held by the public through SDSs, 7 per cent will be held by Electra Partners Mauritius Ltd, 6 per cent stake will be with ASC Asian Equity Ltd and rest of the holdings will be with the Indian promoters. Meghmani is unable to declare its results for 2003-04 as it had filed its prospectus with the SGX several months back. In 2002-03, the company posted sales of Rs 202 crore, net profit of Rs 21.65 crore and earnings per share of Rs 13. It manufactures pigments and agro-chemicals and over 60 per cent of its sales come from exports. |
| (Post 42 of 313) 08/03/2004.10:05:41 |
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Business Times - 02 Aug 2004
http://business-times.asia1.com.sg/storyprintfriendly/0,4568,124216,00.html? All eyes on Meghmani's share offer Will the company, which has a higher valuation, be as warmly received as China-based listings? By VEN SREENIVASAN 'WE add colour to your life,' quipped Ashish Soparkar. Mr Soparkar may be right. For he is the co-owner of one of the world's biggest producers of colour pigments, Meghmani Organics Ltd - which has launched its initial public offering to become the first Indian company to list on the Singapore Exchange. And its flagship products are colour pigments, primarily Pigment Blue and Pigment Green 7. These pigments are used in the global ink, plastics, rubber, paints, paper, leather and the fabric industries. Even the American green dollar bills (or 'greenbacks') use the pigments. 'Chances are, the average person touches and uses products made with our pigments every day, but doesn't know it,' said Mr Soparkar. 'For example, the colour of your ballpoint pen and the ink inside it were probably coloured using our pigments.' Meghmani accounts for about 8 per cent of the global supply of Pigment Blue. 'Just four days of our blue pigment production would be enough to colour the whole of Singapore island,' said Mr Soparkar. It also produces Pigment Violet and other dyes. Its second key product is agrochemicals, or more specifically, pesticides which are primarily used in the global agriculture sector, in anything ranging from commercial sprays to food preservatives. Meghmani supplies around 6 per cent of the world's base-pesticides. Meghmani last Friday launched its offer of 100.4 million Singapore Depository Shares (SDSs) at 28 cents a piece. The invitation comprises a placement tranche of 92.9 million shares and a public offering of 7.5 million SDSs. The offer price gives the shares a historical price-earnings ratio of 11.4 times, based on its financial year ended March 31, 2003. Mr Soparkar founded Gujarat Industries - Meghmani's predecessor - in 1977 with his chemical engineering colleague Jayanti Patel (now Meghmani's chairman) with an initial capital of US$1,000. The company started out supplying green colour dye to Indian textile manufacturers. In 1986, Mr Patel's brother, Natu (now one of Meghmani's two managing directors), merged his blue dye-making company with their operation. Following several years of strong growth, Gujerat Industries was re-named Meghmani Organics and restructured as a private limited company in 1992. Today, it sells three quarters of its pigments and pesticides to global majors in agrochemicals, plastics, papers and paints such as GE Plastics, Flint Ink and Sun Chemicals via distribution channels in 40 countries. US accounts for 29 per cent of sales, Europe 17 per cent and Asia and South America make up 19 per cent. Revenue and profit growths have averaged 15 to 20 per cent per annum. Soon it started attracting private fund managers. Two venture funds, Jardine Fleming Electra and Singapore-based ASC Capital, together took up 33 per cent stake in Meghmani in 1996. Their combined stake has been diluted to 25 per cent in the pre-listing restructuring, and will reduce further to 13 per cent (They are selling 31 million vendor shares in the IPO). But Mr Soparkar assures that he and his partners will not sell their shares even after their moratorium runs out in six months: 'We will never get this kind of returns anywhere else. Our average return on equity in the last three years has been around 18 per cent.' Indeed gross profit margin on its pigments is around 33 per cent, while agrochemicals yield a gross profit of around 23 per cent. The expected $17.4 million in IPO net proceeds will come in handy as the company expands production capacity to meet rising global demand for both its pigments and pesticides. The money raised will also help fund working capital and general corporate needs. Mr Soparkar cites Meghmani's key strength as its resilience to the vagaries of the marketplace: 'Our customers are so diversified and fragmented, in terms of product, market, country and sector, that we are protected from changes in any single factor in the marketplace. For example, we have half a dozen applications in paints alone.' He also assured investors that the company will be generous with dividend payouts. 'The company does not believe in holding cash. If we have good investment opportunities, we will invest. Otherwise, we will distribute the cash to shareholders.' He pointed out that even as a private entity, Meghmani had been distributing about a fifth of its earnings as dividends. But the big test will come when the shares start trading. The fact that its shares are in SDS (in keeping with Indian regulations), rather than outright scrip, is something new to many investors here. Also, at 11.4 times, the valuation is much higher than recent China-based IPOs. But the company boasts strong growth, tier-one global customers, a diversified market and strong pedigree. Many will be watching to see if Meghmani gets the same rapturous welcome that China-based listings have received here. |
| (Post 43 of 313) 08/03/2004.10:06:58 |
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INDIAN company launches IPO in S’pore
Sify - Delhi,India Pigment and pesticide maker Meghmani Organics has become the first Indiancompany to launch an initial public offer in Singapore. ... |
| (Post 44 of 313) 08/03/2004.10:11:43 |
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Hehehe... strong buy or dun bother to buy? |
| (Post 45 of 313) 08/03/2004.10:15:42 |
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*You decide whether the following applies*
How to Get In on an IPO A Motley Fool Special Report By Yi-Hsin Chang, TMF Puck You know the expression "I'll give my first-born?" Well, that's not too far a stretch from what it takes to get a piece of a "hot" IPO. One of the most common questions asked in email to the Fool is, "How do I get in on an IPO?" As an individual investor without tens of millions of dollars to invest, you can see why, in the minds of stock brokers, you're pretty low on the totem pole. After researching the company and putting together a prospectus, the investment bankers underwriting an IPO take their clients on a "road show" (also known as a "dog and pony show") to attract buyers. The reason you've never been invited is because you're simply not the target audience. Investment bankers spend their time wooing analysts and large institutional investors, not individual investors. Here's the catch: If the bankers think a stock will soar, they earmark much of the shares for their favorite institutional clients (ones that bring in the most in commissions). In a sense, brokerages use lucrative IPOs to curry favor with big clients, to win and retain their business. When brokers aren't so confident about the company's prospects, they will try to sell the stock to less-favored institutional clients. Clearly, the rich get richer, while the average investor gets left out. Keep in mind that the underwriters' main customer in an IPO is the company going public. Don't think that they're doing you any favors selling you shares. If you're able to get your hands on some shares, it probably means that nobody else wants them, and you shouldn't either. Of course, there are exceptions, so do your own homework before passing up what might be a good buying opportunity. If you're determined to try to get a piece of an IPO, you basically need to have an account with one of the underwriters. This could conveniently mean your existing broker, or it could mean you'll have to set up a new account with another broker. Check with your existing broker first, and then check the offering prospectus for a full list of underwriters. Of course, there's no guarantee that you'll actually get in on the IPO or get your hands on as many shares as you want. Hazards of 'flipping' IPOs If you want to get in on an IPO so that you can "flip" the stock -- that is, resell it for a quick profit -- while it's hot, be forewarned: it's not as easy as it sounds. First of all, chances are your broker will "strongly encourage" that you hold on to the stock for at least a month or two. While there's no rule prohibiting you from flipping the stock, you'll probably be blacklisted for future offerings if you do. So if you cash in on your profit now, you risk being shut out of future IPOs. The reason brokers, including online brokerages, discourage clients from flipping IPOs is that they themselves don't want to be shut out of future offerings or lose commissions because too many of their customers flip stocks. The companies going public prefer to have long-term shareholders, not a bunch of day-traders looking to "earn" a quick buck. Lest you get the wrong impression, the rule just described does NOT apply to institutional investors, who routinely flip stocks at will without being "punished." While it's terribly unfair that institutional investors operate under different rules from individual investors, you won't get much sympathy from these quarters on the issue of flipping. After all, Fools believe in investing for the long term, and flipping IPOs is downright unFoolish. Why you should avoid IPOs Aside from the pitfalls already mentioned above, the whole process of taking a company public -- distributing a prospectus, going on a road show, doing interviews with the media, etc. -- is one big hype job for the company in question. Sometimes it's the most attention a company will ever get. It's easy for investors to get swept up in the hype, to perceive the IPO as some sort of once-in-a-lifetime opportunity, to forget that the company will be publicly traded and its shares readily available on the open market. Keith Pelczarski (TMF Czar), who spent his pre-Fool days working with IPOs at a major brokerage firm, once said, "Investors are drawn to these hot issues like moths to a flame, and just like those moths, many get burned." A good rule of thumb is: If you don't get in on an initial offering, don't be sucked in by the hype and buy shares of an IPO on its first day of trading. More often than not, you'll end up buying at an inflated and unsustainable price. If the stock is worth owning, it will most likely be worth owning weeks, months, or even years after the hype has died down. Case in point: I was interested in the Fox Entertainment IPO last November. Knowing that the heavily touted issue would be hard to come by, I waited it out. Despite a slight initial run-up in the stock price, I was able to buy shares at the IPO price about a month after the company went public. In fact, after I made the purchase, the shares dropped further, falling as low as $3 below the IPO price of $22.50 a share. The moral of the story: Save yourself the headache. You can make money without ever participating in an IPO. Generally speaking, most decent IPOs will experience a price run-up immediately after they start trading, only to come down to a more rational level once the buzz dies down. One study showed that investors who bought shares of an IPO at the closing price on its first day of trading saw a 2% annual return on the investment. In short, you'd be better off keeping the money in an interest-bearing savings account. On average, IPOs make bad investments. A study by two university professors a few years back looked at 4,753 IPOs and 3,702 secondary offerings made between 1970 and 1990. In the six months following the offering, IPO firms lost 1.1%, versus a 3.4% gain for matching firms that made secondary offerings. The new issues continued to underperform over the next three years, with the gap narrowing but persisting well into the seventh year following the IPO. During the 20 years covered by the study, the average annual return over the five-year period following the offering was 5.1% for the new issues and 11.8% for the comparable firms. Not surprisingly, companies make offerings when the market is up, when business is going well -- essentially, when they can sell shares at the highest price possible. In other words, don't expect a bargain in an IPO. More likely than not, you'll be getting shares that are closer to being overvalued than undervalued. |
| (Post 46 of 313) 08/03/2004.10:21:12 |
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Don't know how people like:
Motley Fool Standard and Poor Warren Buffet (<--- free lunch everyday) can make money in the market???
Guess I need a paradigm change here... Crazychick, your name sounds HOT! But firstly, your chick is what 'chick'? |
| (Post 47 of 313) 08/03/2004.10:27:36 |
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----- Forwarded by GKGOH dealer -----
This "Make Money" is apparently a combination of two founders' mother's name, and here I thot they are so creative. Its Price WaterHouse second IPO stock, distributed via DBS. Company finished round of roadshows in Sing and HK two weeks ago. Launched on 30July and listed after N-day on 10 Aug. Heard its high margin, high ROE and high earnings growth story (3-yr forward CAGR of 20%+)! Business - chemicals, in pesticides, pigment & dyes producer but different from those others listed here like Singpu, Megachem, Fibrechem. Meghmani's peers are largely those listed in India, Japan and Taiwan. I think its a test case stock, as the first Indian company to be listed in Singapore. |
| (Post 48 of 313) 08/03/2004.10:31:59 |
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Publicity material by IR company Citigate inviting to Meghmani public launch on 30 July 2004:
Meghmani Organics Limited, the first Indian company to be listed on the SGX-ST, will be launching its initial public offer on Friday, July 30, 2004. Founded in 1986, Meghmani is a global manufacturer of pigments and agrochemicals. Specialising in blue and green pigments, Meghmani is believed to be one of the world’s largest manufacturers of pigment blue. Besides pigments, the Group produces a broad spectrum of commonly used agrochemicals for crop and non-crop applications. Meghmani reaches out to pigments and agrochemicals customers around the world through its extensive sales and marketing network. The Group counts amongst its customers large MNCs from diverse industries including printing inks, plastics, paints, and textiles. As over 70% of its total revenue in FY2003 was derived from overseas markets – North America, South America, Europe, Asia, Australia and Africa – the Group benefits from a geographically diversified earnings base. Strategically located in Gujarat’s (India) chemical belt, Meghmani has direct access to an abundant supply of raw materials and scientific talent at low cost. Meghmani’s cost advantage is further boosted by the vertical integration of operations at its four manufacturing plants. Meghmani is well placed to ride on the continuing expansion of the global pigments and agrochemicals industry. |
| (Post 49 of 313) 08/03/2004.20:28:20 |
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Hi... all I am relatively new to this market and my first assignment is to irst Indian Company. Can someone help me with how is the market going? |
| (Post 50 of 313) 08/04/2004.18:27:10 |
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HELP HELP HELP... I want to invest in Meghmani's IPO. Any advise? How much? What do people are thinking? HELP HELP HELP |
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