hpl-electric3(This page tries to bring out consolidated opinion, IPO Analysis , IPO Note and recommendation of brokerages , Analysts, Business New papers, Management views  etc on HPL Electric & Power Ltd IPO and shall be updated continuously till the closure of IPO. Thus can  help investors to decide whether they should subscribe to HPL Electric & Power Ltd IPO issue or not)

Subscription: HPL Electric & Power Ltd IPO ( x times)
QIB NII Retail Total
Day 3
Day 2
Day 1 0 0 0.12 0.06

Consolidated views of Brokerages / Analysts / Business News papers

Jainam Wealth: “recommend  Investors  to“AVOID” to the HPL Electric And Power Ltd IPO considering lower profitability, high debt level, long Cash Conversion Cycle of 116 days and available at premium valuation compare to peers.”

Hem Securities:  “At price band of Rs 175-202 ,p/e multiple of co will turn out to be 22-26 on pre issue FY16 eps of Rs 8/share .Co’s financial performance is not attractive when compare to its peer which doesn’t instil confidence in company. Also, valuations of company looks expensive to its peer Havells India Ltd (p/e of 22). Hence, recommend “Avoid” on issue”

SPA Securities: “HPL is the largest player in energy meter with 20% market share, fifth largest player in LED lamps with 5% market share and enjoys 5% market share in LV switchgears. Indian electrical equipment industry is likely to grow at CAGR of 8-12% from 2016-2020. HPL has already invested ~INR 2.3 bn in various capacities in the last 4 years, which would aid growth. Electric meter/LV switchgear/LED/LT cable and wire market are expected to grow at CAGR of 11.5%/6.1%/62%/4.5%, respectively, over FY16-20 according to Frost & Sullivan Report. We positive on the stock on account of improving utilization level, de-leveraging balance sheet, improving return ratio & improving brand visibility. HPL is favourably priced at P/E of ~13.1x based on FY18E earnings as compared to its peers, like Genus power/ Havells/ Bajaj Electric/ Finolex Cables, which trades at P/E multiple of 14.0x/33.0x/14.0x/21.7x FY18E earnings respectively. SPA  recommends investors to SUBSCRIBE to the issue for long term gains.”

Angel Broking: “The pre-issue PE works out to 25.6 times of its FY2016 earnings, which is lower compared with its peers. However this discount is justified considering its significantly low ROE, stretched working capital and low profitability compared to its peers. Considering past financial performance and poor visibility on future growth, we rate this issue as neutral.”

IIFL : “Issue is available at a discount to peers such as Havells, V-Guard,  Finolex Cables, the quantum of discount is unwarranted. The brokerage expects room for upside in the stock and has recommended a ‘subscribe’ rating on the issue. “

Prabhudas Lilladher: “With improving brand visibility, reducing leverage, strong growth opportunity, lower working capital intensity and improving utilisation should help HPL deliver healthy earnings growth over the next few years. The brokerage has a ‘subscribe’ rating on the IPO. ”

Hindu Business Line: “After Shocks Possible. HPL’s shares are being offered at a post-issue P/E multiple of 24 to 26 times, after consolidating the business of Himachal Energy, that was merged with the company this May. While this appears inexpensive compared to the P/E ratio of Havells India that trades at a trailing price earning multiple of around 50 times, Havells is predominantly in the B2C space and hence, benefits from the premium currently being accorded to consumer companies. Given the smaller business of HPL, relatively less-known brand and its exposure to power utilities, the offer seems expensive.  Investors can avoid this offer and consider buying the stock in the secondary market after tracking its performance over the next couple of quarters.”

Analyst at SP Tulsiyan: “HPL Electric & Power Ltd IPO is a clear avoid due to weak fundamentals and expensive valuations”

ICICDirect : No rating on the IPO. Complete IPO note of HPL Electric & Power Ltd : http://bit.ly/2csJshC

Economic Times : “Growth prospects make HPL a buy for long term “
Read more at: http://economictimes.indiatimes.com/markets/ipos/fpos/growth-prospects-make-hpl-a-buy-for-long-term/articleshow/54437813.cms

HPL Electric & Power Ltd. IPO: Anchor List

Sr. No Name of the Anchor Investor No.of

Equity Shares Allocated

%          of

Anchor Investor Portion

Bid Price (Rs. per Equity Share) Amount (InRs.)
1 HTCL – HDFC PRUDENCE FUND 21,43,610 39.98% 202 43,30,09,220
2 BIRLA    SUN     LIFE        EMERGING      LEADERS           FUND-

SERIES 1

2,97,010 5.54% 202 5,99,96,020
3 BIRLA    SUN     LIFE        EMERGING      LEADERS           FUND-

SERIES 2

2,47,520 4.62% 202 4,99,99,040
4 BIRLA SUN        LIFE TRUSTEE COMPANY PRIVATE

LIMITED A/C BIRLA SUN LIFE EMERGING LEADERS FUND – SERIES 7

1,23,760 2.31% 202 2,49,99,520
5 BIRLA SUN        LIFE TRUSTEE COMPANY PRIVATE

LIMITED A/C BIRLA SUN LIFE SMALL AND MIDCAP FUND

3,21,790 6.00% 202 6,50,01,580
6 COPTHALL MAURITIUS INVESTMENT LIMITED 6,18,800 11.54% 202 12,49,97,600
7 NATIONAL WESTMINSTER BANK PLC AS TRUSTEE OF THE JUPITER INDIA FUND 5,77,570 10.77% 202 11,66,69,140
8 JUPITER SOUTH ASIA INVESTMENT COMPANY LIMITED – SOUTH ASIA ACCESS FUND 2,88,750 5.39% 202 5,83,27,500
9 IDFC STERLING EQUITY FUND 2,47,525 4.62% 202 5,00,00,050
10 NOMURA SINGAPORE LIMITED 2,47,525 4.62% 202 5,00,00,050
11 BARODA PIONEER GROWTH FUND 1,48,557 2.77% 202 3,00,08,514
12 BARODA PIONEER BALANCE FUND 49,484 0.92% 202 99,95,768
13 BARODA PIONEER ELSS ’96 FUND 49,484 0.92% 202 99,95,768
Total 53,61,385 100% 1,08,29,99,770

 

Related Posts : Comparison with Peers :  http://ipoandmore.com/2016/09/16/hpl-electric-power-ltd-ipo-comparison-peers/

HPL Electric & Power Ltd. IPO Analysis:  http://ipoandmore.com/2016/09/18/hpl-electric-power-ltd-ipo-first-look/

Standard disclaimer:  I am not a SEBI registered analyst. I may have vested interest in every stock I discuss. Please do your own due diligence as stock market investments have high degree of inherent risk.

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