Technicals:: EID Parry, Carborundum, Aries Agro, BGR Energy Systems, A2Z Maintenance, GAIL, Crisil :: Business Line

 

Sept 9:Technicals: SAIL, Monsanto, Ingersoll Rand, A2Z Maintenance, Welspun, Canara Bank:: Business Line

52-WEEK FLOP: A2Z MAINTENANCE & ENGG. :: Business Line

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The stock of A2Z Maintenance & Engineering Services crashed 72 per cent in the last one year. This engineering procurement and construction services company, which operates in the power distribution space, has seen its stock slide since its listing in December 2010. High asking price during the IPO and presence in multiple unrelated businesses dragged the stock price post listing.

A2Z started off as a facility management services provider and then moved in to installing power distribution lines and sub-stations.

With the power distribution space in the country languishing, thanks to slower power generation, this sector has been de-rated by the market. A2Z too, appears to have been given a similar treatment. At the current market price, it trades at 7.6 times its consolidated trailing earnings, down from about 30-31 times at the time of its IPO. Its order book, at Rs 1,397 crore in the power space, is 1.1 times its consolidated FY-11 sales.

A2Z allocated majority of the IPO proceeds for its biomass plants totalling 60 MW. The company has, since its IPO, signed power purchase agreements for these projects. But the projects have been facing delays. Sales for the quarter ended September 2011 stood Rs 204 crore and net profits at Rs 8.4 crore.

IDFC research:: A2Z MAINTENANCE & ENGINEERING SERVICES

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A2Z MAINTENANCE & ENGINEERING SERVICES


• A2Z Maintenance & Engineering Services is a diversified business group with a presence in EPC (power and roads),
municipal solid waste management, renewable energy generation, and facilities management services.
• It clocked revenues of Rs12.2bn, EBIDTA of Rs2bn, PAT of Rs981m, and an ROE of 24% in FY10. Power EPC accounts
for ~90% of the company’s revenue base.
• The company listed on the bourses in December 2010. The proceeds of Rs6.75bn would be used mainly for
investments in power plants that A2Z is developing in the renewable energy sector and for meeting increased
working capital requirements.
• A2Z is setting up 185MW worth of projects in the renewable energy segment (cogeneration and biomass) in Punjab,
Rajasthan and Uttar Pradesh, with 135MW scheduled to be operational by December 2011.
• It also has a strong presence in facilities management services and derived revenues of Rs910m from this segment in
FY10. Its key clients include Aircel, Apollo Munich, DMRC and Indian Railways.
• The company provides IT solutions for AT&C loss reductions. It has also partnered with Sterlite Technologies for
undertaking projects under R-APDRP. It has an ongoing automated meter reading project in Jabalpur.
• A2Z recently entered the e-waste management business and is implementing a project in Kanpur.
• The FMS business earns 5-6% PAT margins and has a receivable cycle of 60-65 days.
• The company aims to enhance its focus on solid waste management and renewable energy.
• It is developing a remote metering solution to reduce metering losses and errors.
• A2Z expects its EPC business to grow at ~25% annually in the near term, driven by strong growth opportunities in the
power sector.

India Morning Note - Keynote Capitals (December-24-'10)

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Views on markets today

·        Indian markets ended a lackluster session flat-to-negative yesterday amid low volumes as investors stayed on the sidelines ahead of the holiday season. Macroeconomic worries arising from a high global crude oil prices also weighed on investor sentiment. Oil prices held above $90 a barrel, close to their highest in two years, after cold weather boosted demand and US stockpiles shrank. Profit booking was seen in consumer durable, metals, realty and capital goods stocks while pharma and IT stocks closed modestly higher. Metal producers gave up gains as traders booked profits after the recent spike, triggered by a rally in base metal prices. A2Z Maintenance & Engineering Services listed yesterday at `385, down 3.75% from its issue price of `400 a share. The stock extended losses and closed at `328.90.

·        Market breadth was however weak at ~0.89x as investors sold large cap stocks. Both FIIs and domestic institutions sold equities worth `1.43bn and `88.63Cr, respectively.

·        The Asian markets are trading lower this morning. Nikkei is trading down as a stronger yen against both the dollar and euro after more ratings downgrades of European countries weighing on shares in holiday-thinned trade. The Hang Seng is also trading lower.

·        Indian markets are expected to open lower tracking weak Asian markets. Oil marketing companies - Indian Oil Corp , Bharat Petroleum Corp and Hindustan Petroleum Corp will be on focus on firm oil prices,

Economic and Corporate Developments

·        India's food price index rose 12.13% for the week ended Dec. 11 as compared to 9.46% in the previous week while fuel price index climbed 10.74% compared with 10.67% in the previous week.

Grey Market Preimum - Ravi Kumar, A2Z, Punjab & Sind-22.12.10

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Company Name	Offer Price	Premium
	(Rs.)	(Rs.)
Ravi Kumar Distilleries	64	10 to 11
	(upper band)
A2Z Maintenance	400	1 to 2
	(lower band)
Punjab & Sind Bank	113 to 120	31 to 33
	(+ 5% retail discount)

IPO: A2Z & Ravi Kumar Distilleries: Final Price Announced

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IPO: A2Z & Ravi Kumar Distilleries: Final Price Announced

A2Z at lower band: Rs 400 (band was Rs 400-410)
Retail - Everyone got ALL shares applied for.

Current GMP: Discount

Ravi Kumar Distilleries at upper band: Rs 64 (band was Rs 56-64)

Retail - Got 64% of shares applied for 

If you applied for : 

 Rs 2 Lacs (Rs 1,98,400) :: 31 Lots; 3100 shares -:: you got  1,987 shares at Rs 1,27,168

Rs 1 lac (Rs 96,000) : 15 Lots; 1500 shares -you got  957 shares at Rs 61,248

Current GMP: Rs 8 

When Out the allotment details will be available here:

Details should be available in drop down menu (next to Company)

OR **CLICK HERE** TO SEE RAVI KUMAR IPO ALLOTMENT STATUS** Click here**

A2Z Maintenance & Engineering Services: Does NOT get subscribed 1x!!!

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A2Z MAINTENANCE & ENGINEERING SERVICES LTD

Total Issue Size	18293253
Total Bids Received	17615400
Total Bids Received at Cut-off Price	2203620
No. of times issue is subscribed	0.96

Sr.No.	Category	No.of shares offered/reserved	No. of shares bid for	No. of times of total meant for the category
1	Qualified Institutional Buyers (QIBs)	7527656	5133420	0.68
1(a)	Foreign Institutional Investors (FIIs)		3777045
1(b)	Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies)		365850
1(c)	Mutual Funds		990525
1(d)	Others		0
2	Non Institutional Investors	3199679	9991755	3.12
2(a)	Corporates		7935720
2(b)	Individuals (Other than RIIs)		2056035
2(c)	Others		0
3	Retail Individual Investors (RIIs)	7465918	2457780	0.33
3(a)	Cut Off		2173515
3(b)	Price Bids		284265
4	Employee Reservation	100000	32445
4(a)	Cut Off		30105
4(b)	Price Bids		2340

Updated as on 10th December 2010 at 1700 hrs

A2Z Maintenance & Engg. Services - Avoid IPO- Note by Angel Broking

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A2Z Maintenance & Engg. Services
High on Valuations


A2Z Maintenance & Engineering Services Ltd. (A2Z) was incorporated in January
2002 as a facility management services (FMS) provider. The company was
acquired by Mr. Amit Mittal during FY2003–04. In 2006, the company ventured
into power distribution EPC and executed projects involving the installation of
distribution line infrastructure, construction of substations, system strengthening
and rural electrification projects. The acquisition of a transmission EPC company
during 2008 marked the entry of A2Z into the power transmission segment.

IPO note: A2Z Maintenance & Engg. Services: SPA

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A2Z Maintenance & Engineering Services (A2Z) an established engineering, procurement and construction (EPC) company, providing services to the power transmission and distribution sector plans to raise about Rs 8.6bn to primarily fund its biomass-based power projects, MSW projects and meet working capital requirements. Investment Rationale Key beneficiary from Government initiatives: The Government’s attempts to curb power distribution losses (currently at 26.91%) through schemes like R-APDRP and RGGVY and emphasis on waste management due to increasing population, are expected to prove beneficiary for the company.

A2Z Maintenance IPO: Invest or not? Enam

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A2Z Maintenance & Eng. Services Ltd.

For additional information & risk factors please refer to the Red Herring Prospectus 07th December 2010

ENAM DIRECT
IPO NOTE

Issue highlights
􀁺 A2Z Maintenance & Eng. Services Ltd. (AMESL) is a
prominent player in the Indian infrastructure space with
diversified business model focusing on high growth
segment of power, municipal waste management and
varied range of services. Quality management system in the
EPC business (T&D) is ISO 9001:2008 certified by Moody
International Certification.

Angel Broking recommends Avoid IPO of A2Z Maintenance & Engineering Services

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A2Z Maintenance & Engineering Services IPO – Avoid - IPO Research report by Angel Broking

A2Z Maintenance & Engineering Services Ltd. (A2Z) will be accessing the capital market
with an initial public offering (IPO) of 2.1cr equity shares of `10 each at a price band of
`400–410/share. The IPO comprises fresh issue of up to 1.65cr equity shares and an offer
for sale of 0.46cr equity shares by existing shareholders. The issue opens on December 8,
2010, and closes on December 10, 2010. The issue proceeds would be utilised to fund the
company’s forays into Biomass-based power generation and Municipal Solid Waste (MSW)
projects in addition to funding the working capital requirements and general corporate
purposes.

IPO Details: A2Z MAINTENANCE & ENGINEERING SERVICES LTD

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A2Z MAINTENANCE & ENGINEERING SERVICES LTD
Symbol - Series	A2Z EQ
Issue Period	Dec 08, 2010 to Dec 10, 2010
Post issue Modification Period	11-Dec-10
Issue Size	[.] Equity Shares Of Rs.10 Each aggregating to Rs.6,750 Million and an Offer For Sale Of 4,556,193 Equity Shares Of Rs. 10 Each at the Issue Price.**(including anchor portion of 31,37,940 equity shares.)
Issue Type	100% Book Building
Price Range	Rs 400 to Rs 410
Tick Size	Re. 1/-
Market Lot	15 Equity Shares
Minimum Order Quantity	15 Equity Shares
Maximum Subscription Amount for Retail Investor	Rs.200000
IPO Market Timings	10.00 a.m. to 5.00 p.m.
IPO Grading	IPO Grade 4
Rating Agency	CARE Limited
Book Running Lead Manager	IDFC Capital Limited,DSP Merrill Lynch Limited,Enam Securities Private Limited,ICICI Securities Limited,SBI Capital Markets Limited.
Co Book Running Lead Manager	YES Bank Limited.
Syndicate Member	Sharekhan Limited,SBICAP Securities Limited.
Categories	FI,IC,MF,FII,OTH,CO,IND, NOH and EMP.
No. of Cities with Bidding Centers	52
Name of the registrar	Link Intime India Private Limited
Address of the registrar	C-13, Pannalal Silk Mills Compound L.B.S. Marg, Bhandup (West) Mumbai 400 078,Maharashtra, India
Contact person name number and Email id	Mr. Chetan Shinde,Tel: 91 22 2596 0320, Fax: 91 22 2596 0329 E-Mail:a2z.ipo@linkintime.co.in
Prospectus	Click Here
Trading Member List	Click Here
Application Forms	Click Here
ASBA e-form link	e-Forms
IPO Grading	Click Here
Anchor Details	Click Here

A2Z IPO -Subscribe or not? Keynote : A2Z Maintenance & Engineering Services Ltd Update

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 note of the IPO of A2Z Maintenance & Engineering Services Ltd.

Issue Highlights

Price Band                                                          : Rs400-410 per share                                        

IPO open during                                               : Dec. 8 - Dec. 10, 2010

Book Running Lead Manager                      : IDFC Capital, DSP Merrill Lynch, Enam, ICICI, SBI Cap

To list on                                                             : NSE & BSE

IPO Grading                                                       : 4 / 5 (CARE)

PE                                                                           : 23.4x (based on base price)*

                                                                                : 24.0x (based on cap price)*

Market Cap post-listing                                : Rs3,024Cr or $672mn (based on the cap price)

Market Cap of Free Float                             : Rs1,768Cr or $393mn (based on the cap price)

* Based on FY10 EPS

IPO of 21.02mn equity shares of Rs10 each, aggregating to Rs861Cr or $191mn (at the cap price) consisting of a fresh issue of 16.46mn shares (at the cap price) aggregating to Rs675Cr and an offer for sale of up to 4.56mn shares aggregating to Rs187Cr.

SUBSCRIBE to IPO of A2Z Maintenance & Engineering Services Ltd (A2Z) : Nirmal Bang

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A2Z: An Engineering Marvel

A2Z is engineering its way to success in the FMS, EPC and waste management solutions business. High growth strategy and government support makes the company’s public o ffering quite attractive for investors with a long-term investment perspective