About the Company:
Hindustan Aeronautics is engaged in the design, development, manufacture, repair, overhaul, upgrade and servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures.
Company also provides support for maintenance, repair and overhaul for these indigenous and licence manufactured aircraft and helicopters, as well as for aircraft and helicopters procured directly by the Indian Defence Services.
They have been conferred with the “Navratna” status by the GoI in June 2007 and are the largest DPSU in terms of value of production.
Company’s operations are organised into five complexes, namely the Bangalore Complex, MiG Complex, Helicopter Complex, Accessories Complex, and Design Complex, which together include 20 production divisions and 11 research and design centres (“R&D Centres”) located across India.
They rely on indigenous research as well as enter into technology transfer and licence agreements to manufacture their products. In addition, they have entered into 13 commercial joint ventures to grow their operations.
In addition to sales to the Indian Defence Services, which accounted for 93.3%, of their total sales in the Financial Years 2017.They also sell their products and provide services to state governments, para-military forces and corporates.
In addition, during the Financial Year 2017, they have also exported various products and services, primarily spares, to customers in more than 13 countries.
During the Financial Years 2017 exports of products and services accounted for 2.6% of their revenue from operations (net of excise duty) respectively.
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Company’s primary customers are as follows:
- Indian Defence Forces.
- Indian Air Force.
- Indian Army.
- Indian Navy
- Indian Coast Guard.
- State governments.
- Para-military forces.
- Corporates.
Order Book Position:
As of December 31, 2017, Company’s order book was Rs.68,461 crores which generally includes products and services to be manufactured and delivered and excludes anticipated revenues from their joint ventures and subsidiaries.
Competitors for the Company:
Company’s primary competitors in aircraft and helicopter manufacturing segment operations are companies such as Lockheed Martin, Saab, Airbus Helicopters, Bell Helicopters, Leonardo, Boeing, BAE Systems and UGMK (LET Kunovice Aircraft Industries).
Management Team:
- Mr. T. Suvarna Raju (Designation: Chairman and Managing Director)
- Mr. V. M. Chamola (Designation: Director (Human Resources)
- Mr. C. V. Ramana Rao (Designation: Director (Finance) and Chief Financial Officer)
Special Thanks: We would like to thank the Board of Directors of Hindustan Aeronautics Ltd for inviting Markets Guruji Team to the IPO Press Conference.
Objectives of the Issue:
OFS (Offer For Sale): (Around Rs.4,230 crores)
- Company will not receive any proceeds from the Offer for Sale by the Selling Shareholders.
Peer Group Comparison:
Since there is no listed companies in India that are directly comparable to the business carried on by Hindustan Aeronautics Ltd. Hence we cannot make any Comparison.
Positives for the Company:
- Long credible history of research, design , manufacturing and maintenance, repair and overhaul services.
- Established track record in offering product life cycle support extending to periods beyond four decades.
- Strong design & development capabilities.
- Leadership Position in the Indian Aeronautical industry and strong GoI support.
- Diversified product portfolio.
- Strong financial track record.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 30th Sept 17 |
|---|---|---|---|---|---|---|
| Revenue | 17221.4 | 17327.6 | 17362 | 18754.8 | 19596.9 | 5,665.9 |
| Net Profit | 3217 | 2541.1 | 994.1 | 2004.3 | 2624.7 | 391.0 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 16th March 2018 |
| Issue Closes on:. | 20th March 2018 |
| Issue Price | Rs.1215 – 1240 |
| Retail / Employee Discount | Rs. 25 per Share |
| Face Value | Rs.10 |
| Minimum Lot | 12 |
| Minimum Investment | Rs.14,880 (14,580) |
| Issue Constitutes | 10.20% |
| Issue Size | Rs.4230 cr ($655.8 Million) |
| Market Cap | Rs.41,463 cr ($6.43 Billion) |
| Listing at | NSE & BSE |
| Total Equity Shares Offered (OFS) | 3,41,07,525 |
| Equity Shares Prior to the Issue | 33,43,87,500 |
| Equity Shares after the Issue | 33,43,87,500 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 26th March 2018 |
| Initiation of Refunds | on or Before 27th March 2018 |
| Credit of Equity Shares: | on or Before 27th March 2018 |
| Listing Date: | on or Before 28th March 2018 |
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Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 1,67,19,374 | 0.43 | 0.83 | 1.73 |
| NII | 50,15,813 | 0.003 | 0.018 | 0.033 |
| Retail | 1,17,03,563 | 0.068 | 0.34 | 0.38 |
| Employee | 6,68,775 | 0.03 | 0.19 | 0.12 |
| TOTAL | 3,41,07,525 | 0.233 | 0.53 | 0.99 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 73 | 16.98 | 21% | 347 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 20% |
Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium | Kostak Rates |
|---|---|---|---|---|
| 10/03/18 | Hindustan Aeronautics Ltd | 1215 – 1240 | 96 – 102 | 900 – 950 |
| Check IPO Allotment Status: |
|---|
Karvy Website (Click on the below Link)http://kosmic.karvy.com:81/ipotrack/ |
| Company Contact Info: |
|---|
| Hindustan Aeronautics Limited 15/1 Cubbon Road Bengaluru 560 001 Karnataka, India Tel: +91 (80) 2232 0001 Fax: +91 (80) 2232 0758 Email: investors@hal-india.com Website: www.hal-india.com |
| IPO Registrar Info: |
|---|
| Karvy Computershare Private Limited Karvy Selenium Tower B, Plot 31-32, Gachibowli Financial District, Nanakramguda Hyderabad, Telangana 500 032, India Tel: +91 (40) 6716 2222; Fax: +91 (40) 2343 1551 Email: hal.ipo@karvy.com Investor Email: einward.ris@karvy.com Website: https://karisma.karvy.com |
