Академический Документы
Профессиональный Документы
Культура Документы
Deal Fix
Your dealy download
Why does any firm go for an IPO?
All companies are looking for easy money. Although public markets demand increased
scrutiny, a companys valuation can increase multiple folds in a short time frame. The firm is
also perceived as less risky and may allow for borrowing at cheaper rate in future. After getting
listed the companys shares are more liquid and it can also start offering ESOPs.
A private equity player or a venture capital fund looking to exit its investment would also drive
the IPO of a firm.
0
India
China
Market share
Indigo (%)
Jet Airways (%)
Air India Ltd. (%)
Spice Jet (%)
Go Air (%)
Kingfisher (%)
Others (%)
Total (%)
FY 09
FY 10
Brazil
FY 11
Malaysia
FY 12
US
FY 13
Australia Norway
FY 14
FY 15
13
28
16
10
3
28
15
26
17
13
5
23
18
26
16
14
6
20
20
27
16
15
6
16
27
26
17
19
8
2
30
24
18
19
9
0
34
22
17
15
9
0
2
100
2
100
0
100
0
100
0
100
0
100
2
100
Operational efficiency
The magnitude of order of 100 aircraft in 2005 has enabled Indigo to have a structural cost
advantage by reducing cost related to acquisition, maintenance and operation of aircraft.
Further, high aircraft utilisation and lower turnaround time have helped Indigo to maintain
lowest cost in the industry and places it in a better position compared to its peers. As the
A320neos are 15% more fuel efficient, the company will also be able to have a competitive
edge over its peers in terms of maintaining lower cost.
3.6
12
3.4
10
3.2
2.8
2.6
2
Spice Jet
Indigo
Jet
Air India
Airways
Go Air
Indigo
Go Air
Spice Jet
Jet
Air India
Airways
Indigo has the lowest cost per available seat km (ASK) within its peer group.
Valuation
The proposed issue price band of Rs.700-765 implies an EV/EBITDA of 13.6-14.8x and
EV/sales of 1.8-2.0x which factors in all major positives of lower than industry cost structure,
low crude prices and sustained mid-teen ASK growth. The valuation also commands a
premium over select global peers that are trading at average EV/sales of 1.5x and EV/EBITDA
of 9.3x.
EBITDA (%)
PAT (%)
ROCE (%)
ROE (%)
FY15
FY13
FY14
FY15
FY13
FY14
FY15
FY13
FY14
FY15
FY13
FY14
FY15
EV/
Sales
EV/
EBITDA
EasyJet (UK)*
14.3
15.5
17.4
9.3
10.0
11.5
15.0
16.9
NA
20.9
21.5
NA
1.4
7.9
Ryan Air
21.5
20.1
25.1
11.7
10.4
15.3
9.6
9.1
12.6
17.3
15.9
23.7
3.1
12.4
Wizz Air
NA
NA
16.6
NA
NA
11.9
NA
NA
52.6
NA
NA
59.1
0.7
4.3
WestJet*
16.4
17.7
20.3
7.4
8.0
9.3
12.8
11.8
NA
17.6
16.9
NA
0.7
3.6
Norwegian*
9.6
(3.4)
9.7
2.0
(5.4)
3.3
5.9
(6.0)
NA
12.4
44.0
NA
1.2
11.9
Indigo
9.5
4.4
13.1
8.3
4.1
9.1
20.3
4.5
20.0
201.4
112.5
304.1
2.0
15.4
Average
14.2
10.8
17.0
7.7
5.4
10.1
12.7
7.2
28.4
53.9
24.6
129.0
1.5
9.3
Description
The Lounge
The Square
Vending business
Fresh & Ground
outlet
Coffee Day Xpress
kiosks
Production,
Processing & Exports
Presence
1489 outlets across 219 cities in India and
14 international outlets across Austria,
Czech Republic and Malaysia
42 outlets across seven cities in India
7 outlets across four cities in India
3916 vending machines across India
412 outlets across seven states in India
561 kiosks across 12 cities in India
one of the largest exporters of Indian
coffee beans, primarily to Europe, Japan
and the Middle East
6,756.9
Debt
4,496.8
Cash
742.8
EV
10,510.9
2,103.4
1,426.3
1,029.3
466.1
EV of coffee business
5,485.8
1,280.4
CDEL
Starbucks
McDonald's
FY11-15
Sales CAGR
7.6%
11.3%
3.3%
4.3
EBITDA
margin
15.7%
23.7%
33.3%
EV (Rs.
cr)
5,485.8
582,018.5
715,621.8
EV/sales
EV/EBITDA
4.3
4.9
4.3
27.7
20.6
12.8
Company Name
26-OCT-2015
12-OCT-2015
24-AUG-2015
21-AUG-2015
06-AUG-2015
27-JUL-2015
23-JUL-2015
Syngene International
19-JUN-2015
07-MAY-2015
PNC Infratech
24-APR-2015
21-APR-2015
09-APR-2015
VRL Logistics
08-APR-2015
17-MAR-2015
Inox Wind
09-MAR-2015
Adlabs Entertainment
02-MAR-2015
Ortel Communications
29-JAN-2015
Coal India
03-DEC-2014
03-SEP-2014
25-AUG-2014
Sources:
Forbes, Economic times, ICICI direct