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Blue Bird IPO poll: Experts say apply
Blue Bird (India) is open for subscription with a public issue of 87,75,000 equity shares of Rs 10 each for cash at a premium to be decided through the 100% book-building process. Moneycontrol conducted a poll on market experts to check whether to apply for the public issue or not. Experts said apply.
Blue Bird (India), a leading manufacturer of paper-based notebook and stationery products with the highest market share of 48% amongst large, organised players in India, is open for subscription with a public issue of 87,75,000 equity shares of Rs 10 each for cash at a premium to be decided through the 100% book-building process.
The price band for the issue has been fixed at Rs 90 to Rs 105. The issue closes on November 22, 2006.
Moneycontrol conducted a poll on market experts to check whether to apply for the public issue or not. Experts said apply.
Experts/Company
Poll Result
Experts view
R S Iyer
(KR Choksey)
Apply
Investors should apply for Blue Bird IPO. It is an excellent issue.
Manish Bhatt
(Prabhudas Lilladher)
Apply
Blue Bird is an average issue. Investors can subscribe to this issue for listing gains as well as for long term.
SP Tulsian
(Investment Advisor)
Apply
Investors should subscribe to Blue Bird IPO. It is a good issue.
*Keynote Capitals
Apply
Investors may consider Blue Bird IPO with a medium term view.
*(View taken from their reports)
The company has privately placed 12,25,000 equity shares at a price of Rs 98 per share with India China Pre-IPO Equity (Mauritius), a Sebi-registered Foreign Venture Capital Investor which has appointed ST Asset Management, wholly owned by Temasek Holdings (Private), as its investment manager.
The company is raising capital through this public issue to finance the construction of its second major notebook manufacturing and printing unit in South India; to expand capacity at its existing plant in Pune and purchase the registered and corporate office premises presently on leave and licence; to expand its network of sales and distribution offices throughout India; to augment its long-term working capital requirements; and to repay some existing long-term debts.
In addition to notebooks, the company also manufactures products like files, perforated pads, registers and filler papers as part of its stationery business. Moreover, the company publishes study aids/educational materials and children's books with in-house developed content and is also engaged in commercial printing of third-party content including textbooks, magazines, catalogues, calendars and annual reports.
During fiscal 2005, Blue Bird began export of notebooks and printed materials to Kenya, Ghana and South Africa. The company plans to expand both its market presence within India and in sub-Saharan Africa, with increased marketing efforts and penetration in the export market.
Blue Bird had total income of Rs 401.70 crore and net profit of Rs 25.12 crore in fiscal 2006. The company has posted improved performance during the first-half of the current year. For the period ending September 30, 2006, the company reported a total income of Rs 237.55 crore, 18.34% higher compared to the previous year's first-half total income of Rs 200.75 crore. During the same period, net profit for the first half of fiscal 2007 at Rs 15.10 crore was 19.65% higher compared to the previous year's first-half net profit of Rs 12.62 crore.
The book running lead manager to the issue are DSP Merrill Lynch and Karvy Stock Broking. Intime Spectrum Registry is the registrar.
