FIEM INDUSTRIES LTD - IPO

Type of Issue : Book Built
Issue Opens: 21 September, 2006
Issue Closes: 27 September, 2006
Issue Size : 4,100,000 (No. of Shares)

Lower Price Band : Rs.125
Upper Price Band : Rs.145

Application Multiple: 45 and in multiples there off starting with atleast 45 shares.
Maximum Shares: 675 (for Retail)

Information URL : http://www.fiemauto.com/
Prospectus URL : http://www.sebi.gov.in/dp/fiemdrhp.pdf

ISSUE Description
Company Background
FIL is a manufacturer of automotive lighting and signaling equipments and rear view mirrors. The major business comes from two wheeler segment of the vehicle industry. The diversified product portfolio ranging from rear view mirrors, head lamps, tail lamps, roof lamps, rear fender assembly, mudguards etc. catering to two wheelers, three wheelers, LCVs, HTVs and tractors.

The existing plants are located at Kundli (Sonepat, Haryana), Hosur (Tamil Nadu) and Mysore (Karnataka).. The proximity of plants close to OEM customers offers significant logistics savings and also towards cutting inventory carrying cost and shortens delivery time.. In the two wheeler segment the clientele include TVS Motor Company Limited.(major client accounting for 69.33% of income) Kinetic Engineering, Honda Motorcycles & Scooters, Suzuki Motorcycle India, Hero Motors Ltd etc. FIL is a supplier to Tata Motors, Hyundai Motors, etc in the four wheeler segment. Overseas customers include Piaggio Italy, Geka, Germany, KAC, Korea etc.FIL has a technical support agreement with Ichikoh Industries Ltd. Japan for manufacturing automotive mirrors. Ichikoh is a tier I supplier to Toyota, Nissan, Fuji, Daihatsu, Mazda etc.

Objects of the Issue
To set up new facilities for manufacturing automotive lighting, signaling equipment and rear view mirrors for four wheelers at Nalagarh and setting up EOU at Hosur.as well as expansion of existing facilities at Hosur and Kundli. Also issue proceeds will be used to repay term loan availed from Standard Chartered Bank availed for financing expansion plans as mentioned.

Key Financials for year ended March 31, 2006
Income : Rs. 1415.836 Million
Profit after Tax : Rs.75.125 Million
Net Worth : Rs. 277.744 Million
RoNW : 27.05%
NAV : Rs.35.80
EPS :Rs. 10.16

Recommendation:
The technical support agreement with Ichikoh will help the company to enter international markets. The management is capable and has proven track record. The future prospects appear bright for the Company. Apply for listing gains

RICHA KNITS LTD - IPO

Type of Issue : Public
Issue Opens: 13 September, 2006
Issue Closes: 19 September, 2006
Issue Size : 9,000,000 (No. of Shares)

Lower Price Band : Rs.30

Application Multiple: 180 and in multiples there off starting with atleast 180 shares.
Maximum Shares: 3240 (for Retail)

Information URL : http://www.richaknits.com/
Prospectus URL : http://www.sebi.gov.in/dp/richadraft.pdf

ISSUE Description
Company Background
RKT was established by Mr. Sushil Gupta in 1993, to cater to the needs of quality knitted fabric for Indian Market. The Company has today emerged as a supplier of quality high-end knitted fabrics and as a Dyeing and Processing House. Its garments exports division is a regular supplier to USA and UK like K Mart, Guess and Van Heusen ans Benetton in India.
In the domestic market, it has launched its own leisure wear brand AVO-CADO positioned at reasonable price, best quality segment.The company has 3 operational Exclusive Businee Outlets at Faridabad, Gurgaon and jaipur and expects to open two new outlets at Delhi by October 2006. They have network of 6 distributors and over 100 dealers catering to 7 North Indian states.

Competitive Strengths of GCHIL
· Professional Management
· Good standing as a supplier in the exports industry
· R & D a focus area
· Good labour relations

Objects of the Issue
The issue proceeds will be utilized to :
· To set up a new unit for processing and dyeing in Alwar
· To set up new unit for knitting at existing location in Gurgaon
· To enhance existing capacity for Garmenting

Key Financials for year ended March 31, 2006
Income : Rs. 205.4 Million
Profit after Tax : Rs.41.3 Million
RoNW : 24.30%
NAV : Rs.20.98
EPS :Rs. 5.09
Recommendation
The Company has longstanding relationships with buyers both in the domestic and international markets. Going ahead with removal of quotas, the market size will expand, however margins may be under pressure. Apply