Hascol Petroleum Limited IPO offering – SCS Research
By: Rajesh Kumar Maheshwari,
Standard Capital Securities (Pvt) Ltd
Currently HPL has announced the issue of 25 million Ordinary shares (27.59% of total Post IPO paid up capital) of Rs 10 each for cash at a price of Rs 20 per share.
18.75 million Shares (75% of total Issue size) will be made through book building process at a floor price of Rs. 20 (including share premium of Rs 10 per share). Application from institutions and HNW investors for book building process will be entertained from March 4 to March 5, 2014.
Remaining 6.25 million ordinary shares (25% of total size) will be offered to general public through Initial Public Offering (IPO) at Strike price which will be determined through the Book Building Process. The dates for IPO is not announced till yet but soon will be announced.
Hascol financial highlights:
HPL is a growing entity and expending its business in terms of sales and outlets. During CY13 company reported net profit of Rs 391mn converting to basic EPS of Rs 5.96/sh (Diluted EPS of 4.32 as per our working). Furthermore during CY13 company’s net sales were doubled to Rs 49.2bn against Rs 25.9bn in CY12. Where in gross profit and EBIT were reported as Rs 1.36bn and Rs 570mn respectively in CY13.
Wherein company also posses strong balance sheet with Current assets of Rs 6.7bn, non-current asset of Rs 2.6bn in CY13 which are majorly financed through short term liabilities of Rs 7.6bn which is good.
On the floor price of Rs 20 during book building process HPL yield PE of 4.6x* based on diluted EPS of Rs 4.32/sh reported in CY13 .Which is best PE multiple to subscribe for an IPO, SUBSCRIBE.
*based on new total number of shares which would be now 90.6mn shares