Brokerage house SMC has provided a rating of 1/5 for the initial public offering (IPO) of Fatpipe Networks (India). The investment rationale and the outlook provided by the brokerage house is as follows:
Valuation:
Considering the P/E valuation, the company is trading at pre issue P/E of 15.40x on the lower side of the band and 15.97x on the higher side of the band of its annualised FY10 earnings of Rs.5.32. Looking at the post issue valuation, the company is trading at P/E of 22.22 times on the lower side and 23.09 times on the higher side of its post issue annualised FY10 earnings of Rs 3.8.At its P/B ratio it trades at 2.98 and 3.09 multiples of the lower and higher band of its pre issue book value of Rs 27.55 and 1.82x and 1.88x on the lower and higher side of its post issue book value of Rs 45.18 respectively.
Outlook:
Acquisition of business/company, establishing marketing offices and research and
development process across globe are the major objects of the issue. However company has not yet taken initial steps for it. Any delay or misidentification of the potential acquisition could impede one of the key business strategies, restrict the international growth and have a material adverse effect on the Company`s business, financial condition and results of operations. Moreover being a small cap company with post issue Mcap of just 1,600 million and revenue growth of 9% compound annual growth rate (CAGR) the stocks seems to be quite expensive on the price earning multiple of Rs 22-23 post issue. The promoters holding at 37% pre issue and 26% post issue also gives a cautionary bell.
Macquarie Hires Fox River’s Sansaricq for Prime Brokerage Sales
By Jeff Kearns
June 7 (Bloomberg) -- Macquarie Group Ltd. hired Richard Sansaricq as global head of sales for the financing of equity trades by clients, an attempt by Australia’s largest investment bank to boost market share in equities.
Sansaricq, 48, started last week in New York overseeing nine salespeople in the U.S., Europe, Asia and Australia, according to Todd Steinberg, head of equity derivatives. Sansaricq, whose position is newly created, was most recently head of algorithmic sales at Fox River Execution in New York. He will report to Steinberg, a former BNP Paribas SA executive hired last month.
Sansaricq, whose official title will be head of Delta One and synthetic prime brokerage sales, declined to comment. The Sydney-based firm is expanding what it offers customers who invest in and trade equities by developing more derivative products, including over-the-counter contracts and exchange- traded products such as options. Macquarie paid $146.7 million in September for Fox-Pitt Kelton Cochran Caronia Waller LLC, the investment bank that focused on financial institutions.
“As we expand our derivatives and equity finance capabilities, we’ll be hiring to match that expansion around the world,” Steinberg said in an interview. “Richard’s hire will help us deliver more to our institutional clients globally.”
Net trading income at Macquarie’s securities unit rose 17 percent in the year that ended March 31, the bank said April 30.
--With assistance from Jonathan Keehner in New York and Angus Whitley in Sydney. Editors: Joanna Ossinger, Nick Baker
To contact the reporter on this story: Jeff Kearns in New York at jkearns3@bloomberg.net.
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net.
June 7 (Bloomberg) -- Macquarie Group Ltd. hired Richard Sansaricq as global head of sales for the financing of equity trades by clients, an attempt by Australia’s largest investment bank to boost market share in equities.
Sansaricq, 48, started last week in New York overseeing nine salespeople in the U.S., Europe, Asia and Australia, according to Todd Steinberg, head of equity derivatives. Sansaricq, whose position is newly created, was most recently head of algorithmic sales at Fox River Execution in New York. He will report to Steinberg, a former BNP Paribas SA executive hired last month.
Sansaricq, whose official title will be head of Delta One and synthetic prime brokerage sales, declined to comment. The Sydney-based firm is expanding what it offers customers who invest in and trade equities by developing more derivative products, including over-the-counter contracts and exchange- traded products such as options. Macquarie paid $146.7 million in September for Fox-Pitt Kelton Cochran Caronia Waller LLC, the investment bank that focused on financial institutions.
“As we expand our derivatives and equity finance capabilities, we’ll be hiring to match that expansion around the world,” Steinberg said in an interview. “Richard’s hire will help us deliver more to our institutional clients globally.”
Net trading income at Macquarie’s securities unit rose 17 percent in the year that ended March 31, the bank said April 30.
--With assistance from Jonathan Keehner in New York and Angus Whitley in Sydney. Editors: Joanna Ossinger, Nick Baker
To contact the reporter on this story: Jeff Kearns in New York at jkearns3@bloomberg.net.
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net.
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