Aries Agro Limited IPO Listing on Friday, January 11, 2008
BSE Script Code: 532935
NSE Symbol: ARIES
Listing in: B1 Group of Securities
Issue Price: Rs. 130/- Per Equity Share
Face Value: Rs 10/- Per Equity Share
This being in the Agri Category good listing premium is expected.
Aries Agro Limited IPO is out with the IPO allotment status This is one of the IPO which was in AGRI field and expected to give some good gain on the listing day , the IPO closed on December 19, 2007. IPO was oversubscribed by 7.62 times and totally6.4 times on the retail front , i did apply for it through online , bu with the IPO application number i cant really seem to get the info from the website , so will keep the fingers crossed and check for my SP account to see if i have got it or not.
Check IPO Allotment status here.
Aries Agro IPO allotment might be a no brainer the total time it has subscribed is not more than 7.62 times and the retail portion not more than 6 times , so firm allotment is possible for retail investor above 5 lots.
1 Qualified Institutional Buyers (QIBs) 2250000 18358450 8.1593
2 Non Institutional Investors 675000 5743950 8.5096
3 Retail Individual Investors (RIIs) 1575000 10180850 6.4640
Aries Agro ipo oversubscribed by 7.62 times may be final figures of 8 to 9 times not more than that .
Total Issue Size 4500000
Total Bids Received 34283250
Total Bids Received at Cut-off Price 9531900
No. of times issue is subscribed 7.62
Aries Agro IPO subscribed 0.96 times on day 4 , and its closing tomorrow.
Total Issue Size 4500000
Total Bids Received 4312050
Total Bids Received at Cut-off Price 601500
No. of times issue is subscribed 0.96
About Aries Agro
Aries Agro are into the business of manufacturing of micro nutrients and other nutritional products for plants and animals. Aries Agro started Aries Agro’s activity by manufacturing a small range of mineral feed additives for animals & birds and then diversified into mineral additives for the agriculture use. Aries Agro’s products were immediately accepted by the consumers and slowly it became the brand leader in the field of mineral nutrition with a range of products including mineral premixes, milk boosters, protein concentrates, vitamin premixes, anti-coccidian and anti-bacterial feed additives.
Issue Period December 14, 2007 to December 19, 2007
Issue Size 4500000 Equity Shares
Issue Type 100% Book Building
Face Value Rs. 10/-
Price Range Rs 120 to Rs 130
Tick Size Re. 1/-
Market Lot/Min Ord QTY : 50 shares
To fund working capital, towards the acquisition of an overseas material supplier, purchase of mobile vans for marketing products as well as capacity expansion.
> Good player in in the plant-nutrient space with minimal competition from the organized players.
> Very good network and Has 4,700 distributors and more than 65,000 dealers.
> No price control at all so they will be free from price fixing like other fertilizer.
> With agriculture going to be a very good sector for coming years they might get more revenue and business
> Stiff competition from local and international players
> Negative cash flow and debts waiting to be paid for 6 months and also a settlement case with IFCI
> Imported raw materials might cost high and thus putting a hole in the revenue margin
> High pricing for the IPO considering its yearly results its at a 20 PE.
Crisil Ratingf or Aries Agro IPO
Crisil Ratingf or Aries Agro IPO is 3 out of 5.
Net sales have climbed from Rs 26 crore to Rs 73 crore between FY-04 and FY-07 while net profits have risen from a minuscule Rs 0.09 crore to Rs 8.69 crore over the same period.
To Apply or Not
After all this info given i will apply for this IPO for medium term gain and i will surely apply because the ipo is only for 45 lac and it will surely get heavily oversubscribed which will result in the stock listing more than 200 rs.So Apply for short to medium term gain.
About Aries Agro IPO
Aries Agro Limited is entering in the capital markets with an initial public offering, IPO of 45,00,000 Equity Shares, for cash, at a premium to be decided through a 100% Book Built Issue.
The price band for the issue has been fixed at Rs. 120/- at lower level and Rs. 130/- at upper level for equity share of Rs. 10/-.
The issue opens on Dec 14, 2007, and closes for subscription on Dec 19, 2007.
Sales increased from 59 crore to 77 crore and profit increased from 6.6 crore to 8.6 crore over year from 2006 march to 2007 march