Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය

Latest topics

» Tea prices up and up.Plantation shares down and down!
by fortuneteller Today at 8:20 am

» For Miss Sangeetha
by Miss-Sangeetha Yesterday at 7:54 pm

» coco.x share
by lakmal87 Fri Dec 15, 2017 10:45 pm

» නොමිළේම ඩොලර් (free $ 5 ) tokens
by cseguide Fri Dec 15, 2017 7:58 pm

» S&P upgrades DFCC Bank’s rating outlook from Negative to Stable
by TraderCSE Fri Dec 15, 2017 9:23 am

» CFVF will HIT. 40 BY Next. Thursday
by Yahapalanaya Thu Dec 14, 2017 10:50 pm

» Moody’s affirms ratings of three Sri Lankan banks; maintains negative outlook
by Miss-Sangeetha Thu Dec 14, 2017 8:39 pm

» best stocks to buy now
by Ryan Hudson Wed Dec 13, 2017 9:23 pm

» Current situation of the Adam group of companies
by anges Wed Dec 13, 2017 5:36 pm

» Avoid investing in Abans Group company shares
by fortuneteller Wed Dec 13, 2017 9:11 am

» People's Leasing Company
by prasa2004 Tue Dec 12, 2017 6:51 pm

» SDB - AN IMPRESSIVE PERFORMANCE
by prasa2004 Tue Dec 12, 2017 5:43 pm

» Beware of banking stocks
by prasa2004 Tue Dec 12, 2017 5:40 pm

» CEYLON COLD STORES PLC(CCS.N0000)
by Agape Tue Dec 12, 2017 2:49 pm

» Lanka Cement
by sureshot Tue Dec 12, 2017 11:09 am

» Roshan Egodage's Money Grabbing
by Investor1994 Mon Dec 11, 2017 7:10 pm

» CIFL ANY NEWS
by Gambino7 Mon Dec 11, 2017 12:13 pm

» CFT share එක මොනව හරි දෙයක් වෙනව වාගෙ.
by sameboy Sun Dec 10, 2017 6:43 pm

» BFN .. ORIENT FINANCE PLC
by Teller Fri Dec 08, 2017 10:52 pm

» Sri Lanka Exports up 12.9-pct in Sept
by Teller Fri Dec 08, 2017 10:38 am

» DECEMBER DISCOUNT
by Teller Fri Dec 08, 2017 10:30 am

» LLMP - New Strategic Marketing >>> Boooom
by Teller Fri Dec 08, 2017 10:27 am

» Why LLUB.N0000 going down ?
by Teller Fri Dec 08, 2017 10:20 am

» LDEV rights
by Teller Fri Dec 08, 2017 10:16 am

» SAMP Rights Issue
by niru Thu Dec 07, 2017 8:04 pm

HashFlare

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk »  "CIFL" IPO

"CIFL" IPO

View previous topic View next topic Go down  Message [Page 1 of 1]

1 "CIFL" IPO on Mon Jun 27, 2011 7:47 pm

wgsaman

avatar
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
What do you think about CIFL

2 Re: "CIFL" IPO on Mon Jun 27, 2011 8:30 pm

mark

avatar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
why so hurry.....wait wait........
as i know still prospectus is pending,good that you interested in IPO's,but nowadays most are slops bcoz of unethical practices in PP....

3 Re: "CIFL" IPO on Mon Jun 27, 2011 11:23 pm

hettdas

avatar
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
I don't think CIFL is a good company. I had a fixed deposit with them.They couldn't repay it even after March 2011. I could withdraw it after the central bank involvement .

4 Re: "CIFL" IPO on Mon Jun 27, 2011 11:56 pm

mark

avatar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@hettdas wrote:I don't think CIFL is a good company. I had a fixed deposit with them.They couldn't repay it even after March 2011. I could withdraw it after the central bank involvement .

oh.oh... thanks mate for your info,seems we have to analyse it to depth....will see their prospectus Suspect

5 Re: "CIFL" IPO on Tue Jun 28, 2011 12:06 am

rijayasooriya

avatar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@hettdas wrote:I don't think CIFL is a good company. I had a fixed deposit with them.They couldn't repay it even after March 2011. I could withdraw it after the central bank involvement .
Thanks and +rep from me.

6 Re: "CIFL" IPO on Tue Jun 28, 2011 6:01 am

tkc

avatar
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@hettdas wrote:I don't think CIFL is a good company. I had a fixed deposit with them.They couldn't repay it even after March 2011. I could withdraw it after the central bank involvement .

Interesting! Have to study prospectus closely. And we should keep your experience in our minds.

7 Re: "CIFL" IPO on Tue Jun 28, 2011 6:41 am

widanage


Senior Equity Analytic
Senior Equity Analytic
@tkc wrote:
@hettdas wrote:I don't think CIFL is a good company. I had a fixed deposit with them.They couldn't repay it even after March 2011. I could withdraw it after the central bank involvement .

Interesting! Have to study prospectus closely. And we should keep your experience in our minds.


One of my relatives had a Rs 2.5 Mn FD with them it took almost three years after maturity to get it back in around 15 installments (Appa Kewa Wage). I also went once with my Uncle to their Bagatalle Rd Office (Now closed). I requested their financials and had a glance at it.

1. They have invested some real estate project in Homagama (as I remember) and got stuck with it.
2. It created a asset liability mismatch so they can not meet the obligations of maturing deposits
3. Further to that they have made avoidance tactics when we call or call over. But this was different when its about a new investment.

Whatever it is, its board and the management responsibility be prudent in their investments. They just followed the real estate bubble and got almost busted. In my opinion now they have a chance to raise the money form public behind the central bank regulations.

Its upto the investors (retail like us) to be prudent because its our blood and sweat.

For me it is CRAP and they are to be SCRAPPED.

8 Re: "CIFL" IPO on Tue Jun 28, 2011 2:10 pm

mark_fernando


Stock Trader
I got a recommendation about this company through a friend....every company has positives & negatives..awaiting for their prospectus..



Last edited by mark on Wed Jun 29, 2011 10:40 am; edited 1 time in total (Reason for editing : edited accordingly)

9 Re: "CIFL" IPO on Tue Jun 28, 2011 7:47 pm

alexd


Stock Analytic
Stock Analytic
Based on CIFL's Annual report for the year 2009/10 (http://www.cifl.lk/downloads/ann_rep.html - page 2) EPS was Rs. 0.79 and NAPS was Rs.13.07 these figures seem better than the previous year which was Rs 0.13 and Rs 14.92 respectively (obtained from the same report). Performance figures seems promising together with their offer price of 10/- per share. Awaiting the issue of their prospectus.



Last edited by mark on Wed Jun 29, 2011 10:37 am; edited 1 time in total (Reason for editing : edited accordingly)

10 Re: "CIFL" IPO on Tue Jun 28, 2011 9:38 pm

widanage


Senior Equity Analytic
Senior Equity Analytic
@Financeguy wrote:Hey Guys there are many finance companies didnt pay their Depositers and had worst situations and larger portfolios came to Market and Become Sucessfull right, And guys made good money in Stocks like Nations Lanka isnt it? Why dont we wait for the Prospectus with out jumping the Gun...Hold Your Horses Guys...Smile

@mark_fernando wrote:I got a good recommendation about this company through a friend....every company has positives & negatives..awaiting for their prospectus..

@alexd wrote:Based on CIFL's Annual report for the year 2009/10 (http://www.cifl.lk/downloads/ann_rep.html - page 2) EPS was Rs. 0.79 and NAPS was Rs.13.07 these figures seem better than the previous year which was Rs 0.13 and Rs 14.92 respectively (obtained from the same report). Performance figures seem promising together with their offer price of 10/- per share. Awaiting the issue of their prospectus. I think it would be a good buy in terms of investment from the way the other finance companies have gained in share value upon their IPOs and listings.

Dear Friends

When you have first hand experience it supersedes perception, hunch, EPS, NAV and simply everything. I respect all three views above and any other future views on this. But when you know the smell of S*** you don't need to see it.

All my comments are based on their financials of 2008/09 & 2009/10 and not the latest. I may be wrong if the company had made a complete restructuring to their balance sheet.




1. There main source of funding is public deposits.(Note 17 - Let us see where they have put all these money)

2. Liquid assets has come down from 272Mn to 90Mn (Note 3,4,5)

3. Loan book (Leasing, HP & Loans) shrunk to 309 Mn from 490 Mn. (Note 7 & 8 - There are a finance company. There core business is lending but the loan book is mere 14% of there total shareholders funds and liabilities)
How do you justify the above actions. It is good for a real estate company not for a finance company. Directors should act prudently since they are playing with public money.

4. Investment in JV Company is 776 Mn (Note 14), which can go up to 800Mn. At the same time the interest receivable from JV is 418 Mn (Note 9). Just look at the ROI but not realized yet.

5. With all difficulties they have invested 190Mn (Note 13) Rajagiriya Project and the interest receivable from this included in Note 6 amounting to 22Mn.

I doubt that the balance sheet of the company belongs to finance company but investment or real estate company.

Finally this is CSE which has the real potential for CRAP, GARBAGE and S***. This will be oversubscribe for sure and I will not be surprised if this shoot up to Rs 107.60. As tubal says they are in search for dumb money. They need you....

If the BS of the company has a restructuring during the recent financial year I will hide my tail between the legs and subscribe.

-----------------------

11 Re: "CIFL" IPO on Tue Jun 28, 2011 10:30 pm

Financeguy


Stock Trader
I somewhat agree with the comments of the real estate investment, But can't clearly see what are the assets belongs to this, realizability depends quality of the asset and the returns can be more than HP and leasing. And unlike the lease assets the capital gains are always there in trading real estate stock. But you are very right if the stock quality is bad, on another note the maturity mismatch can be higher if the real-estate asset is not moving in the market, how ever I would love to see the assets of this project so we can ascertain the realizability of their real estate portfolio.

12 Re: "CIFL" IPO on Wed Jun 29, 2011 6:16 am

widanage


Senior Equity Analytic
Senior Equity Analytic
@ Jason

Please read my second comment on the same thread and come up with the counter arguments for the assets on the balance sheet. It shows the BS of the company for 2008/09 and 2009/10. The major argument here based on the ASSET - LIABILITY mismatch which is the responsibility of the directors ultimately deprived poor depositors.

I have no personal issues with the company.In the last sentence of my statement I have a provision to hide my tail between my legs. So you have the opportunity to initiate it. Let's talk numbers.

Link to CIFL annual report

http://www.cifl.lk/downloads/applications/An_rp_1.pdf



Last edited by widanage on Wed Jun 29, 2011 6:47 am; edited 1 time in total (Reason for editing : Link included)

13 Re: "CIFL" IPO on Wed Jun 29, 2011 8:51 am

Financeguy


Stock Trader
Hey Guys,

Is there a real asst liability mismatch? I really dont see it in the Balance sheet, In your 2nd comment you state that that Liquidity has comedown, but also you can notice for the entire year the companies total liability has increased only from 60 Million Rupees, this shows their public liability has not gone up for the year,

How ever can you explain how there is an asset Liability Mismatch??

14 Re: "CIFL" IPO on Wed Jun 29, 2011 9:25 am

StocksWatch

avatar
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
This thread and all comments look very strange to me. Few members who have joined the forum either today or yesterday are vigorously trying to defend a company which is going for an IPO shortly. Similar situation was there with Expo Lanka as well. We don’t see those who promoted Expo Lanka IPO anymore in this forum.

My advice to all readers, don’t repeat the mistakes you have done in the past, analyze the prospectus and all other available information about the company before you apply. Mainly do a valuation and see if the price of the IPO is attractive compared to other shares in the same sector, trading in the secondary market. It is your money, choose the right option carefully.

15 Re: "CIFL" IPO on Wed Jun 29, 2011 12:45 pm

mark_fernando


Stock Trader
To Stock Watch,

Yes I agree with you 100%, But on a another view do you expect people to stay silent, when a person comments, to scrap a registerd finance companny with baseless aligations just before it's IPO, its good to analyse and educate and comment on a IPO but sad to see people vigorously trying to tarnish a companies image for their personal openion on a respected blog like this.

16 Re: "CIFL" IPO on Tue Jul 05, 2011 12:58 pm

alexd


Stock Analytic
Stock Analytic
With reference to

@mark wrote:why so hurry.....wait wait........
as i know still prospectus is pending,good that you interested in IPO's,but nowadays most are slops bcoz of unethical practices in PP....

@mark_fernando wrote:I got a recommendation about this company through a friend....every company has positives & negatives..awaiting for their prospectus..

and my earlier comment

@alexd wrote:Based on CIFL's Annual report for the year 2009/10 (http://www.cifl.lk/downloads/ann_rep.html - page 2) EPS was Rs. 0.79 and NAPS was Rs.13.07 these figures seem better than the previous year which was Rs 0.13 and Rs 14.92 respectively (obtained from the same report). Performance figures seems promising together with their offer price of 10/- per share. Awaiting the issue of their prospectus.

CIFL prospectus is available on the CSE website as of today (refer - www.cse.lk) - FYI

The EPS and NAPS for 9 months ending 31st Dec 2010 has been included in the prospectus and is Rs 0.99 and Rs 14.86 respectively. Would appreciate some expert comments on CIFL's IPO.

17 Be aware-CIFL split before IPO on Tue Jul 05, 2011 5:00 pm

PGCR


Equity Analytic
Equity Analytic
CIFL Audited financial statement shows EPS of 0.99 for the year ended 31st December 2010. As at 31st December 2010, there were only 19,739,424 shares outstanding as at that date. Subsequently CIFL Has done a Split (11 for 5 ) on 9th May 2011 & the new share capital represents 43,426,733. Then the EPS figure get diluted up to Rs 0.45.

Further, prospectus pages No 11 states that “If IPO fully subscribed, the offered Shares will amount to 47.95 % of the Issued Ordinary Shares of the Company subsequent to the Offering.”

Then, After IPO, No of shares issued will be 83,420,229. After IPO EPS (based on current audited accounts) will be only Rs 0.23. Which is at 43 X (times) P/E to its IPO price.

Over to you my friends…



Last edited by mark on Tue Jul 05, 2011 6:16 pm; edited 1 time in total (Reason for editing : topic changed)

18 Re: "CIFL" IPO on Tue Jul 05, 2011 9:06 pm

ruwan49

avatar
Equity Analytic
Equity Analytic
Thanks PGCR,,Valuable Advice

19 Re: "CIFL" IPO on Wed Jul 06, 2011 9:45 pm

Chinwi

avatar
Associate Director - Equity Analytics
Associate Director - Equity Analytics
Thanks for alarming us.

Now, I want to know about the Shareholders list published in the prospectus.

There are 220 pre -IPO shareholders in Annexure F.

The number of shares each of them hold are very unusual.
396, 1558, 1041, 176, 5852 , 14555, ..... ???

Why is this. ?
I heard some badly managed finance companies converted their debt to shares and forcefully gave them to the depositors.

If any of our members know any of these shareholders please find out and let us know. The names and addresses are given in pages 138 to 141






20 Re: "CIFL" IPO on Thu Jul 07, 2011 2:27 am

Slstock

avatar
Director - Equity Analytics
Director - Equity Analytics
@PGCR wrote:CIFL Audited financial statement shows EPS of 0.99 for the year ended 31st December 2010. As at 31st December 2010, there were only 19,739,424 shares outstanding as at that date. Subsequently CIFL Has done a Split (11 for 5 ) on 9th May 2011 & the new share capital represents 43,426,733. Then the EPS figure get diluted up to Rs 0.45.

Further, prospectus pages No 11 states that “If IPO fully subscribed, the offered Shares will amount to 47.95 % of the Issued Ordinary Shares of the Company subsequent to the Offering.”

Then, After IPO, No of shares issued will be 83,420,229. After IPO EPS (based on current audited accounts) will be only Rs 0.23. Which is at 43 X (times) P/E to its IPO price.

Over to you my friends…


THanks for uncovering the hidden numbers. We need to be careful before buying with all these new companies getting listed one after the other.

21 Re: "CIFL" IPO on Thu Jul 07, 2011 7:53 am

wgsaman

avatar
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
thanx for your ideas

22 Re: "CIFL" IPO on Thu Jul 07, 2011 8:17 am

Chinwi

avatar
Associate Director - Equity Analytics
Associate Director - Equity Analytics
Sorry I posted this in other thread , re-post here.


As per the prospectus, there are 220 pre -IPO shareholders in Annexure F.

The number of shares each of them hold are very unusual.
396, 1558, 1041, 176, 5852 , 14555, ..... ???

Why is this. ?
I heard some badly managed finance companies converted their debt to shares and forcefully gave them to the depositors.

If any of our members know any of these shareholders please find out and let us know. The names and addresses are given in pages 138 to 141

23 Re: "CIFL" IPO on Thu Jul 07, 2011 3:16 pm

mark_fernando


Stock Trader
I think there is a mistake in the way PGCR has calculated PE
Ratio.According to my knowledge we have to take the IPO proceeds to
calculate forward PE.

Let me explain you how to derive PE based on my knowledge :-).There
are two types of PE ratios.Lets look at Trailing PE based on the past
data.First we should divide last year net profit by No of shares
issued before the IPO.In this case its (26,087,554 / 43,426,733)
=Rs.0.60.So the trailing PE is (10/0.60) =16.65x .The net profit
figure i have taken is for the Financial year ended 31st March 2011
out of which nine months are Audited.

To calculate future EPS we should search for their FY12 bottom line
and divide it by Post IPO no of shares issued (83,426,733).I think we
cannot use post IPO shares issued without considering the IPO proceeds
to the calculation.

Anyway I do not know much about the Company, want more time to go
through figures and prospectus.But i can clearly see some people
trying to mislead investors by putting wrong calculation and giving
wrong picture about the Company.After going through this calculation
I realized it.Dear investors pls do your calculations properly then
decide what to do!!!

24 Re: "CIFL" IPO on Thu Jul 07, 2011 7:55 pm

factFINDER

avatar
Manager - Equity Analytics
Manager - Equity Analytics
@Chinwi wrote:Thanks for alarming us.

Now, I want to know about the Shareholders list published in the prospectus.

There are 220 pre -IPO shareholders in Annexure F.

The number of shares each of them hold are very unusual.
396, 1558, 1041, 176, 5852 , 14555, ..... ???

Why is this. ?
I heard some badly managed finance companies converted their debt to shares and forcefully gave them to the depositors.

If any of our members know any of these shareholders please find out and let us know. The names and addresses are given in pages 138 to 141


I guess these odd numbers came becouse of their share split of 5 in to 11 done in May 2011!!
e.g.
If there was 1000 shares prior to the splitting it becomes 2200.
If it was 100 > 220., ...440, 660, 880 ... 5500.. like wise.

Also ... what you said may be correct as odd number of shares has been issued far before the splitting (specially in November 2006). But even that year the company has made a profit and hardly assumed that they have forcefully converted debt/deposits in to shares.

But, shares issued in 2008/2009 are result of Bonus issue (page 49)


25 Re: "CIFL" IPO on Thu Jul 07, 2011 10:47 pm

MoneyLover

avatar
Senior Equity Analytic
Senior Equity Analytic
@alexd wrote:With reference to

@mark wrote:why so hurry.....wait wait........
as i know still prospectus is pending,good that you interested in IPO's,but nowadays most are slops bcoz of unethical practices in PP....

@mark_fernando wrote:I got a recommendation about this company through a friend....every company has positives & negatives..awaiting for their prospectus..

and my earlier comment

@alexd wrote:Based on CIFL's Annual report for the year 2009/10 (http://www.cifl.lk/downloads/ann_rep.html - page 2) EPS was Rs. 0.79 and NAPS was Rs.13.07 these figures seem better than the previous year which was Rs 0.13 and Rs 14.92 respectively (obtained from the same report). Performance figures seems promising together with their offer price of 10/- per share. Awaiting the issue of their prospectus.

CIFL prospectus is available on the CSE website as of today (refer - www.cse.lk) - FYI

The EPS and NAPS for 9 months ending 31st Dec 2010 has been included in the prospectus and is Rs 0.99 and Rs 14.86 respectively. Would appreciate some expert comments on CIFL's IPO.

Dear alexd,

Appriciate if you would show us the NAPS and EPS after 5 to 11 splitting done in May 2011?? Without showing the adjusted statistics your attempt to paint CIFL is incomplete and misleading .....

Before 5 to 11 splitting NAPS (as at 31/12/2010) was 14.86
After 5 to 11 splitting = 14.86 X 5 / 11 = NAPS only 6.75 and P/BV = 1.48

Before 5 to 11 splitting ESP (9 month up to 31/12/2010) is 0.99
After 5 to 11 splitting ESP?? .......


26 Re: "CIFL" IPO on Thu Jul 07, 2011 11:03 pm

ISURU

avatar
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

27 Re: "CIFL" IPO on Thu Jul 07, 2011 11:14 pm

ISURU

avatar
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

28 Re: "CIFL" IPO on Thu Jul 07, 2011 11:30 pm

rajithasamaranayake


Equity Analytic
Equity Analytic
mark_fernando how do we know Y12 profit? I cannot recall any company making losses in their forward projections? If these forward projections are done by independent to the company officials then there is some credibility

Did you recommend EXPO LANKA too based on their forward projections???

Friends, do not rely on forward projections made by own company officials. Immediate past year profit is a safer yardstick

29 Re: "CIFL" IPO on Fri Jul 08, 2011 1:46 am

alexd


Stock Analytic
Stock Analytic
@MoneyLover wrote:
@alexd wrote:With reference to

@mark wrote:why so hurry.....wait wait........
as i know still prospectus is pending,good that you interested in IPO's,but nowadays most are slops bcoz of unethical practices in PP....

@mark_fernando wrote:I got a recommendation about this company through a friend....every company has positives & negatives..awaiting for their prospectus..

and my earlier comment

@alexd wrote:Based on CIFL's Annual report for the year 2009/10 (http://www.cifl.lk/downloads/ann_rep.html - page 2) EPS was Rs. 0.79 and NAPS was Rs.13.07 these figures seem better than the previous year which was Rs 0.13 and Rs 14.92 respectively (obtained from the same report). Performance figures seems promising together with their offer price of 10/- per share. Awaiting the issue of their prospectus.

CIFL prospectus is available on the CSE website as of today (refer - www.cse.lk) - FYI

The EPS and NAPS for 9 months ending 31st Dec 2010 has been included in the prospectus and is Rs 0.99 and Rs 14.86 respectively. Would appreciate some expert comments on CIFL's IPO.

Dear alexd,

Appriciate if you would show us the NAPS and EPS after 5 to 11 splitting done in May 2011?? Without showing the adjusted statistics your attempt to paint CIFL is incomplete and misleading .....

Before 5 to 11 splitting NAPS (as at 31/12/2010) was 14.86
After 5 to 11 splitting = 14.86 X 5 / 11 = NAPS only 6.75 and P/BV = 1.48

Before 5 to 11 splitting ESP (9 month up to 31/12/2010) is 0.99
After 5 to 11 splitting ESP?? .......



Dear MoneyLover,

Many tks for you expert comments (which I did request for in my post).

I am indeed new to this and did miss the share split. When the EPS is calculated as advised by you,.... the EPS will be Rs 0.45 due to the split.

BTW, won’t the IPO funds of Rs 400 Million contribute or strengthen the EPS and NPV in some way in the current year/future? I glanced through the prospectus - but projections are not available to assess accordingly. Anyway..... trying to figure out if this will be a good 'short term' or 'long term investment'.

30 Re: "CIFL" IPO on Sat Jul 09, 2011 1:10 pm

wgsaman

avatar
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
What is your final decision about "CIFL"....apply or not...? Question

31 Re: "CIFL" IPO on Sat Jul 09, 2011 5:23 pm

factFINDER

avatar
Manager - Equity Analytics
Manager - Equity Analytics
@wgsaman wrote:What is your final decision about "CIFL"....apply or not...? Question


I'm not going to apply CIFL ...

For me it is not attrective at all for both "Short-term" and "Long-term".

Diulted NAPS and P/Bv of 1.4, and PER Appox. 20 is expensive for a non-prominent RFC like CIFL.

Share offered at IPO is about 48% (post-IPO) and promoters equity will reduce to around 50%.

Most of last IPOs were from industry leaders;
Softlogic (Consumer Electricals/Health Care),
EXPO (logistics),
TJL (Fabric Mill of Brandex/PTJ - part of one of the biggest textile manufactures),
VOne (selected equity stakes of business leader DP - RCL (tiles), LB Finance-a leading RFC),
FLCH (a leading plantation holding + Hydopower Free Lanka, and backed by LOLC/BRWN/Perpitual)
HVA Foods - the largest value added/instant tea exporter
CIFL -- ??

We noticed that most of above IPO (from Industru leaders) also were not performed well in the market, So why should I invest in this high risk/less prominent CIFL?


Decleration - I just justified my decision for not subscribe CIFL IPO, but not a recommendation for otheres to follow.




32 Re: "CIFL" IPO on Wed Jul 13, 2011 7:44 pm

Fresher


Moderator
I applied minimum qtys of Browns INV and VONE and some 1000 for TJ.
I did not apply for EXPO ans SHL due to certain reasons.
This is another IPO I will skip. These are my reasons

1) I do not want to sell my good shares to get money for this
2) I am not impressed with the prospectus - IMHO there are much better companies, even finance companies to invest in the secondary market.
3) How the allocation will be made itself is fishy - 10% to non retail. Does that mean giving better chance to employees and depositors or no confidence in big investors?

further another point to be notes is there is already 3.3% public shareholding according to the prospectus. There are many who have been holding 1-1000 shares since 2006 and 2008 which they got for 10/- (Im not sure if it was issued or debt conversion, someone pls clarify since I may have missed that)
So specially these people could be very eager to dispose them on the first day to get their money.

33 Re: "CIFL" IPO on Wed Jul 13, 2011 7:53 pm

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics
Your Money, Your Decision, Your Profit or Your Loss, so do your own analysis before making the final decision

34 Re: "CIFL" IPO on Thu Jul 14, 2011 10:27 am

maddu

avatar
Manager - Equity Analytics
Manager - Equity Analytics
@Gaja wrote:Your Money, Your Decision, Your Profit or Your Loss, so do your own analysis before making the final decision

Absolutely Right Gaja...

Happy Trading...

35 Re: "CIFL" IPO on Thu Jul 14, 2011 10:40 am

StocksWatch

avatar
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
Most of the comments on IPO’s are written here from traders’ point of view. (Not in this particular thread but in general). It may be because vast majority of retailers subscribe for IPO’s with the intention of selling on the first day of trading at the secondary market with some considerable gain. But an investor will have a completely different view.

If I am going to buy into a company (not only an IPO) for investment purpose, I will have two steps to go through.

The first step involves analyzing all available information and making the decision whether to invest in the company or not. This step will need the analyzing and processing of data related to following areas at minimum.

1. At least 3 years of past financial data about the company
2. Future business plans
3. The structure and constitution of current management
4. The future demand for the services and/or products of the company
5. The reputation of the company / customer satisfaction

If I make the decision to invest in a company, then there will be a second step to ascertain the price that I am willing to pay. There are different ways to ascertain this price and will largely depend on the type of business and risks involved.

Once you know the price you want to pay, then it is an easy decision irrespective of whether you are buying into an IPO or from secondary market. But a trader will not bother about any of the above or sometimes not even to bother about the name of the company as his decision will purely be based on technical indicators.

CIFL does not satisfy my requirements under step 1; so I decided not to invest. Any comment on CIFL IPO from trading point of view may be premature and gamble.

36 Re: "CIFL" IPO on Thu Jul 14, 2011 10:44 am

sajith15


Stock Trader
Thanks PGCR..

37 Re: "CIFL" IPO on Sat Jul 16, 2011 1:03 pm

dewminigamlath


Manager - Equity Analytics
Manager - Equity Analytics
Why do major shareholders declare like this:

“The Major Shareholders of the Company Aspic Corporation (Private) Ltd and Mr. Mallawaarachchige Deepthi Perera who currently
holds 74.59% and 21.52% respectively of the Total Ordinary Voting Share Capital of the Company has voluntarily declared that they
will hold their shares which amounts to 38.8% and 11.2% respectively after the Initial Public Offer up to a period of one year from
the date of listing of the Ordinary Voting Shares on the Colombo Stock Exchange.”

http://www.cifl.lk/ipo/CIFL%20Prospectusnew.pdf (page 41)

38 Re: "CIFL" IPO on Sat Jul 16, 2011 4:41 pm

Fresher


Moderator
@dewminigamlath wrote:Why do major shareholders declare like this:

“The Major Shareholders of the Company Aspic Corporation (Private) Ltd and Mr. Mallawaarachchige Deepthi Perera who currently
holds 74.59% and 21.52% respectively of the Total Ordinary Voting Share Capital of the Company has voluntarily declared that they
will hold their shares which amounts to 38.8% and 11.2% respectively after the Initial Public Offer up to a period of one year from
the date of listing of the Ordinary Voting Shares on the Colombo Stock Exchange.”

http://www.cifl.lk/ipo/CIFL%20Prospectusnew.pdf (page 41)

it is to 'assure' the potential IPO applicants that those shares will not be dumped in the market

39 Re: "CIFL" IPO on Sat Jul 16, 2011 7:41 pm

JennyFunny


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
to make a quick buck i guess..

View previous topic View next topic Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum