Precision Camshaft IPO opens on 27th January and closes on 29th January

Links regarding Precision Camshaft IPO given below: -

https://economictimes.indiatimes.co...put-it-on-your-radar/articleshow/50661917.cms

https://www.chittorgarh.com/ipo/precision_camshafts_ipo/517/

https://www.chittorgarh.com/ipo_review/precision_camshafts_ipo/2274/

I feel that its a great compnay and should also be considered for long term. If market conditions improve then it will give good listing gains. Your views will be appreciated.

 

For more information on company see below: -

https://www.business-standard.com/a...-rs-240-crore-through-ipo-115061500130_1.html

https://www.thehindubusinessline.co...shafts-ipo-opens-on-jan-27/article8123967.ece

Can an IPO perform in such volatile markets?
--> Experts says yes. Also pricing of IPO's will be reasonable as IPO's with expensive valuation will not have courage to try their luck in such a market. See below for more info: -

https://wap.business-standard.com/a...ve-markets-with-ipo-plans-116011800753_1.html

 

Disclaimer: I am neither a research analyst nor an Investment Advisor. The information below is for discussion purpose only. Do your own research and/or consult financial consultant before acting on the information given below.

From what I have read this company has possibility of giving listing gains and may perform in the short term. But listing gains may be difficult if market conditions turns terrible. However after seeing the listing and short term gains made in Alkem and Dr Lal, I am optimistic.

Dr Lal and Alkem listed on 23rd December. Prior to that Dr Reddy, Sun pharma and Cadilla shares were in a free fall while wockhardt share performed badly. In spite of these terrible market conditions, both the IPO's performed very well. They gave listing gains and also appreciated in the next 10-15 days.

Companies capacity expansion plans will take at least 2 years to bear fruit. So short investors may subscribe to this share and consider selling some (or all) of their shares on listing and others in the next 10-15 days. Medium term investors must avoid this share.

But if you are long term investors then you must take this company seriously. If you think valuations are reasonable then you may go the IPO route. If you think that valuations are expensive then you may track this stock after listing for better price in secondary market.

Your views will be appreciated.

 

Precision Camshafts Limited: Information Note
Issue Opens 27-Jan-16, Issue Closes 29-Jan-16, Price Band Rs180-186

Precision Camshafts Limited (PCL) is one of the world’s leading manufacturers and suppliers of camshafts in the passenger vehicle segment. Majority of the revenue comes from export of camshafts to various OEMs directly or indirectly. PCL has long term relationships with several marquee global OEMs, such as General Motors, Ford Motors, Hyundai, Maruti Suzuki, Tata Motors and Mahindra and Mahindra. PCL is promoted by Mr. Yatin Shah and Dr. Suhasini Shah, who have over 20 years of experience in the critical engine component manufacturing.

 

Precision Camshafts Ltd was incorporated in 1992. They manufacture and sell camshafts for original equipment manufacturers (OEMs) in the automotive industry in India as well as internationally. In 2013-14, the company generated revenues of Rs 471.83 crore and held 8-9 per cent in the global market share of camshafts.

The company is set to raise Rs. 410 crores through initial public offer in 2016. Following are the details of the issue:

Issue Period

January 27th, 2016 - January 29th , 2016

Price Band & Lot Size

Rs. 180 – Rs. 186 per equity share, bid lot80 equity shares

Issue Size

Rs. 410 cr. at upper price band




KNOW..MORE

APPLY..NOW





You can now place IPO orders on your iPhone, Android & Windows devices through KST. Simply download it from any app store & place your order!

 

Disclaimer: I am neither a research analyst nor an Investment Advisor. The information below is for discussion purpose only. Do your own research and/or consult financial consultant before acting on the information given below.

Avoid if not applied. Withdraw if applied.

Guys situation is really bad in this IPO. The issue opened on 27th. The response on Day 1 and Day 2 has been very poor. See below: -


P.N. : - QIB and NII have subscribed 0 times which is very very low.

This is worse then Day 1 and Day 2 response to Cafe Coffee Day (Issue price = 328; Listing Price = 313) and Manpasand (Issue price = 320; Listing Price = 291). Also Manpasand and CCD were listed in better market conditions while this issue is being listed in very volatile market condition even then they listed below issue price. So possibility of this issue listing below issue price. So better avoid this issue or withdraw application. Long term investors may buy after listing.

Response to Cafe Coffee Day: -


Response to Manpasand: -



This company is very good fundamentally but due to high valuation, very high market volatility and poor response on Day 1 and Day 2, better to avoid or withdraw.

What is the provision to withdraw or revise bid during the issue period under ASBA II ?
You can place a withdrawal request for the whole application or one of three bids anytime during the bidding period. Any request for bid withdrawal should be made during the banking hours and on or before 2 pm of the issue closure date and will be subject to acceptance of Stock Exchange after which the application amount in your account will be unblocked. Once withdraw, the blocked amount will be available in 1 working day.

See more here: - https://www.axisbank.com/personal/investments/ipo-smart/how-to-withdraw-or-revise-bid.aspx

 

Disclaimer: I am neither a research analyst nor an Investment Advisor. The information below is for discussion purpose only. Do your own research and/or consult financial consultant before acting on the information given below.

If unable to withdraw then sell on listing. Long term investors can buy after corrections.

As expected the response to Precision Camshaft was on not good on Day 3 also. The issue is oversubscribed approximately 1.9 times. CCD was oversubscribed approximately 1.82 times while Manpasand was oversubscribed approximately 1.4 times. Thus possibility of poor listing of Precision Camshaft.

Response to Precision Camshaft: -



Will prices move after poor listing? Dr Lal and Alkem had good listing and their prices appreciated after listing. Let us see the response they got.

Response to Alkem: -



Response to Dr Lal: -


As can be seen there was tremendous enthusiasm among QIB's and NII's which not only led to listings gains but also sustained a bull run for the next 10-15 days in both Alkem and Dr Lal.

Thus after comparing Precision Camshaft with Alkem and Dr Lal, I do not see any scope for any rally in after listings. Actually there is possibility of further fall in prices due to panicked retailers. Also there is no foreseeable price trigger for at least 2 years thus less possibility of recovering loss.

Lessons that I have learned from Precision Camshaft: -

1. In extremely volatile markets, do not apply to ipo's of small caps even if the company is reasonably priced and has very good fundamentals.
2. Apply on last day after seeing the response of QIB's and NII's on Day 1 and Day 2. Also this response must be compared to earlier (both the successful and failed) IPO's to get a better picture.


P.N.: - This thread was started by me for discussing this IPO but unluckily no one (except Sroutaji) has participated. Thus instead of a dialog there was a monologue wherein I was posting new threads in the hope of getting a reply. If we share our views then we will make better decisions. Hence your views are valuable and will be appreciated.

 

Good research work. I think people not so interested in IPO because market situation is bad. When listed stocks are down why people will go for IPO. Even listed stocks are not bought in downmarket. But in bull market everyone is rushing for IPOs.