Repco Home Finance Ltd IPO
Chennai based, Repco Home Finance Ltd is coming up public issue for ₹ 270 crores at a price band of ₹ 165 to ₹ 172. Should we subscribe to Repco Home Finance IPO?
About Repco Home Finance Ltd
Repco Home finance is professionally managed and NHB registered housing finance company promoted Repco Bank – Govt. of India enterprise.
As per R Varadarajan, Managing Director of Repco Home finance Ltd, its unique selling proposition is their target audience. Majority of them are non-salaried people, small business owners, traders etc. Its business focus is in Tier-II and Tier-III cities. Its average ticket size is ₹ 9 lakhs and average tenure is nine years. Repco Housing finance business is in Southern states, West Bengal and Odhisa. Currently it is the process of expansion in Maharastra and Gujarath. Its loans increased from ₹ 2,430 of earlier financial year to ₹ 3,100 to last financial year
Issue details:
- IPO opens: 13-Mar-2013
- IPO closes: 15-Mar-2013
- Issue price: ₹ 165 to ₹ 172 per share
- Minimum bid: 75 shares and in multiples of 75 shares thereon.
- Book Running Leader managers (BRLM): SBI Capital Markets Ltd, IDFC Capital Ltd, JM Financials Ltd
- Listing: BSE / NSE
- Prospectus: http://www.sebi.gov.in/cms/sebi_data/attachdocs/1317709033270.pdf
Purpose of the IPO: Company intends to utilise the issue proceeds for augmentation of capital base to meet future capital requirement
Company financials
| Repco Home Finance Ltd – Financials | |||||||
| Financials | 2007 / 03 | 2008 / 03 | 2009 / 03 | 2010 / 03 | 2011 / 03 | 2012 / 03 |
6 months- Sep-12 |
| Revenues (₹ in Millions) | 443.74 | 713.9 | 1148.2 | 1642.8 | 2259.5 | 3188.85 | 1888.4 |
| Profits (₹ in Millions) | 115.5 | 156.3 | 266.3 | 455.8 | 581.5 | 614.6 | 256.14 |
| Profit % | 26.03% | 21.89% | 23.19% | 27.75% | 25.74% | 19.27% | 13.56% |
| YoY growth | 61% | 61% | 43% | 38% | 41% | NA | |
Company is doing well in terms of financials. Its revenues has grown from ₹ 443 million (Year ending Mar-2007) to ₹ 3188 million (year ending Mar-2012). Profit margins are maintained consistently above 22% except in previous financial year where the margins are 19.27%. The company has healthy capital adequancy ratio of 16.5% for the period ended Sep-2012 against the mandatory requirement of 12%.
Recommendation / Investment strategy: ICRA has given the issue rating as 3 out of 5 which indicate average fundamentals. Its average EPS is around ₹ 13 in the last 3 fiscal years and ₹ 7.67 for the 6 months ended Sep-2012. Considering the strong financials and good growth story, one can look at moderate investment in such IPO.
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Suresh
Repco Home Finance Ltd IPO
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Mr Suresh, as per your reco, i subscribed for repco home finance, now it is 20% up from issue price. what should I do? I want more more returns, can i hold
Mahesh, What is your risk appetite. If you are low or medium risk appetite person, pls sell them and make profit. Else you can still wait for some more time to book profits
how to invest in this. Is this trough mutual fund?
Durgesh, You need to have demat account to purchase any stocks or to invest in any IPO.