Friday, March 17, 2006

BIRLA POWER SOLUTIONS LTD-IPO

Issue Opens: 24 March, 2006
Issue Closes: 29 March, 2006
Issue Size : 12,000,000 (No. of Shares)

Lower Price Band : Rs.42

Application Multiple: 150 and in multiples there off starting with atleast 200 shares
Maximum Shares: 2250 for retail investors

Information URL : http://www.birlagenset.com/
Prospectus URL : http://www.sebi.gov.in/dp/birpower.pdf

About the Company:

Birla Power Solutions Limited, a part of the Yash Birla Group, was one of the first Companies to manufacture portable generators in India in 1986.The Company has ther expertise to manufacture 2 stroke as well as 4 stroke engines.The Company is at present manufacturing a wide range of Generators catering to the power requirements from 500 W to 5.5 KW.It has recently become the first company to launch emission compliant Generators under the brand name - Birla ECOGEN.At present the Company manufactures Gensets, multipurpose engines, inverters/batteries,water pumps etc. The Company is ISO 9001 and ISO 14001 certified

Objects of the issue:
* To finance the cost of expansion of capacities of the existing products of the Company viz. Diesel Genset, Multipurpose Engines,Alternators and fuel tanks
*To finance setting up of new plant for manufacturing LPG/CNG Gensets,Inverter and Acoustic Hoods
BPSL plans to expand market share by way of increasing capacities of existing products as well as introducing new products which would have good market in near future. Also it is going for backward integration by producing Acoustic hoods which is presently outsourced.

Key Strengths
BPSL is established profit making company with established management team.
Products -engines,alternators and entire range of gensets are ISI certified.
New Project being set up in excise duty free zone of Uttaranchal.
All products manufactured by the Company are fully emission compliant.

Key Financials
Book Value (pre issue ) as on 30/09/2005 : Rs. 54.06
Book Value (Post Issue): Rs. 47.62

RONW for 2004-05 : 6.29%
EPS for 2004-05 : Rs.3.40

P/E Ratio based on EPS of Rs.3.40 : 12.35

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