Monday, January 18, 2010

Aqua Logistics IPO - Analysis, Recommendation and Review

Aqua Logistics, a Mumbai based company has come out with an initial publice offering (IPO) of Rs 150 crore. The issue will open for subscription on January 25, 2010 and will close on January 28, 2010. The price band is fixed at Rs 220-230 per share.

The company intends to use the issue proceeds for purchasing of specialized equipments; expansion & establishment of offices; funding proposed acquisition and additional working capital requirements.

The book running lead managers to the issue are Centrum Capital Ltd and Saffron Capital Advisors Pvt Ltd. Link Intime India Pvt Ltd is the registrar.

Watch out for more details on Subscription, Allotment and Listing!
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    An IPO note on Aqualogistics

    Good arguments

  2. I think it is a great company with a highly professional approach to logistics.

  3. The report is a clear attempt to malign an organization.

    1) There can be no comparisons of Indian logistics companies vis a vis overseas companies with regard to working capital management. In India, one has to operate on 60 day credit terms which was more during the meltdown. Typical transaction cycles would be 15-20 days. Besides, which organization would take a secured loan after pledging its assets and offer an unsecured loan to customers?

    2) Regarding salary costs, for last year, company has reported Rs 10.5 crores as salary costs and for 153 employees (again reported), salary would come to an average of Rs 7 lakhs per employee. How more would it be in the logistics sector?

    3) Also, regarding equity given in December 2008, It would entail a lock-in of more than two years (i.e till almost Jan 2010). Which employee is willing to accept stocks in lieu of blocking salary for two years? It is totally absurd

    4) Regarding the comment on Bad Debts not being shown in the company's books, 5-6 lakhs have been debited year on year and Rs 3 lakhs which was not debited has also been restated in the revised balance sheet. The reporter seems to have missed out this entire thing

    One should not go by these reports with specific agenda to malign an organization without any financial basis