UBS ::India Auto Sector Aug’11: PVs lackluster, MHCVs pick up momentum

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UBS Investment Research
India Auto Sector
Aug’11: PVs lackluster, MHCVs pick up
m omentum
􀂄 PV: Maruti and Tata Motors continue to report negative growth
Maruti domestic volumes declined 17% yoy (+16% mom). Hyundai domestic sales
declined 7% yoy. Tata Motors reported decline of 33% yoy for PVs with cars
down 39% yoy (inc. Nano which declined 85% YoY) offset by 15% YoY increase
in UVs. M&M UV sales growth slowed to 7% YoY (-11% mom).
􀂄 2Ws and tractors: strong growth continues
Hero Motocorp 2W sales grew 19% yoy (3% mom). TVS 2W domestic sales
slowed (+11% YoY) while 2W exports grew strongly by 39% yoy. TVS moped
volumes recorded 1% yoy growth, scooters grew 28% yoy and motorcycles sales
were up 17% yoy. TVS domestic 3W volumes were down 30% yoy, while exports
recorded strong growth (+188% yoy). M&M domestic tractors shipment grew 21%
YoY; exports declined by 4% YoY
􀂄 MHCVs pick up momentum, LCV continues to shine
Tata Motor’s LCV shipments grew strongly by 27% YoY, MHCV sales gained
momentum with 12% yoy. M&M LCVs (4W pickups) continued to report strong
growth (+67% YoY).
􀂄 Preferred picks: Maruti, M&M and Hero Honda
We like Maruti as we believe margins have bottomed and valuations are cheap. We
continue to be positive on M&M and Hero Motocorp as key beneficiaries of strong
growth in rural economy

IPO Allotment Deatils for B S Transcomm

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Click Here for IPO Allotment Deatils for B S Transcomm


Listing date : October 27th (Wednesday)

IPO Issue Price (Rs.) for BS Transcomm, Prestige and Gyscoal Alloys

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IPO Issue Price (Rs.) for BS Transcomm, Prestige and Gyscoal Alloys


B S Trans: Rs 248 (Lower band)


Prestige Estates: Rs 183 (Upper Band)


Gyscoal Alloys: Rs 71 (Upper Band)

Company Name	Offer Price	Premium
	(Rs.)	(Rs.)
Oberoi Realty	260 (Upper Band)	8 to 10
B S Trans	248 (Lower band)	DISCOUNT
Prestige Estates	183 (Upper Band)	DISCOUNT
Gyscoal Alloys	71 (Upper Band)	12 to 14
Coal India	225 to 245	11 to 12 +  5% discount for retail

BS TransComm, IPO, Final oversubscription details

BS TRANSCOMM LIMITED

Total Issue Size	7679410
Total Bids Received	8413500
Total Bids Received at Cut-off Price	2523450
No. of times issue is subscribed	1.10

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)	3839705	1978000	0.52
1(a)	Foreign Institutional Investors (FIIs)		1978000
1(b)	Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies)		0
1(c)	Mutual Funds		0
1(d)	Others		0
2	Non Institutional Investors	1151911	3642075	3.16
2(a)	Corporates		2074500
2(b)	Individuals (Other than RIIs)		1563825
2(c)	Others		3750
3	Retail Individual Investors (RIIs)	2687794	2793425	1.04
3(a)	Cut Off		2523450
3(b)	Price Bids		269975

Updated as on 13 October 2010 at 1700 hrs

Moneycontrol: BS Transcomm extended till Oct 13; price band reduced

A manufacturer of towers for telecommunication and power sectors, BS TransComm has revised the price band of its initial public offering to Rs 247-257 as against its earlier price band of Rs 257-266 a share, due to lukewarm response from investors. The issue has been subscribed 0.58 times so far, as per the NSE website.

The company has extended the closing date for subscription till October 13 from October 8, 2010 as per a circular available on BSE's website. BS TransComm is offering 76,79,410 equity shares through the IPO.

Bids can be made for a minimum of 25 equity shares and in multiples of 25 equity shares thereafter.

BS TransComm is engaged in the business of providing a range of services to telecommunication infrastructure providers for setting up their passive infrastructure and to power transmission companies for setting up their transmission lines and sub-stations. It is engaged in the manufacturing and supply of telecommunication and transmission towers, substation structures and providing service solutions to the telecommunication infrastructure and power transmission sectors.

Subsequent to its acquisition of SAPL, it is also engaged in the designing, building and deploying of related technology products and solutions to the telecommunications infrastructure sector.

The company has a manufacturing capacity of 1,20,000 MTPA with a backward integrated structural steel plant supporting the raw material required for tower manufacturing. It is currently undertaking a project to expand the manufacturing capacity to 240,000 MTPA.

Issues proceeds are proposed to be used for setting up of manufacturing facilities of telecommunication and power transmission towers under Phase I and Phase II at Majidpally Village, Medak, Andhra Pradesh having an installed capacity of 84,000 MTA and 120,000 MTA respectively; setting up rolling mill plant at Majidpally Village, Medak, Andhra Pradesh under Phase I having an installed capacity of 90,000 MTA; financing margin money for working capital; and for general corporate purposes.

JM Financial Consultants Pvt Ltd is the book running lead manager to the issue and Karvy Computershare Pvt Ltd is the registrar.


Source: Moneycontrol

MS Advisory and PMS: IPO Recommendations: AVOID Oberoi realty and BS TransComm

MS Advisory and PMS:

IPO Recommendations: AVOID Oberoi realty and BS TransComm

both are high priced.... limited chance of listing gains

AVOID both