RBI keeps Repo Rate unchanged at 5.15%

Board of Directors of NIIT Technologies Limited at their meeting have approved the buy-back of up to 19,56,290 fully paid equity shares of a face value of Rs. 10/- each at a price of up to INR 1,725 per share aggregating up to INR 337 Crore.Takeaway: As per shareholding data available in FY 2018-19 annual report shareholders holding less than 500 shares are 2.27 Cr. which is 36.5% of the paid up capital. Assuming 1/3 of this is retail shareholding minimum acceptance ratio comes around 3.86% for retail shareholders*. It may go higher depending upon participation of other shareholders in the buyback.Promoters of the company have expressed their intent to participate in the buyback, which makes risk reward ratio unattractive for retail participation in buyback.*Retail shareholders are classified as the one’s who hold shares of market value upto 2 lakhs on the record date.Other Information about the Buyback•The Entire procedure might take approximate 3 months. •Record date for the buyback is yet to be announced by the companyDisclaimer: "Investment in securities market and Mutual Funds are subject to market risks, read all the related documents carefully before investing.")

ISSUE HIGHLIGHTS •Initial public offer of up to 2,80,89,887 equity shares comprising a fresh issue of 1,40,44,944 shares and offer for sale of 1,40,44,944 shares•The objects of the offer:(i)Repayment or prepayment of certain outstanding loans of our company(ii)Financing the project cost towards establishment of a new manufacturing facility, either set up directly or indirectly (through a wholly-owned subsidiary that our company may set up in the future)(iii)Upgradation of equipment at manufacturing facilities(iv)General corporate purposes, subject to the applicable lawsCOMPANY HIGHLIGHTS •Prince Pipes and Fittings (PPF) is recognized as one of the leading polymer pipes and fittings manufacturers in India. PPF markets its products under two brand names: Prince Piping Systems and Trubore.•Due to its comprehensive product range, PPF is positioned as an end-to-end polymer piping systems solution provider.•PPF currently manufactures polymer pipes using four different polymers: UPVC, CPVC, PPR, and HDPE, and fittings using three different polymers: UPVC, CPVC, and PPR•As on October 31, 2019, PPF had a product range of 7,167 SKUs. PPF’s products are used for a variety of applications in plumbing, irrigation, and soil, waste and rain water (SWR) management.•PPF sells its Prince Piping Systems products to distributors, who then resell the products to wholesalers, retailers, and plumbers. As on October 31, 2019, PPF sold its Prince Piping Systems products to 1,151 distributors in India.•PPF sells its Trubore products directly to wholesalers and retailers. As on October 31, 2019, PPF sold its Trubore products to 257 wholesalers and retailers.Manufacturing facilitiesPPF has six strategically located manufacturing plants, which gives it a strong presence in north, west and south India. Athal (Union Territory of Dadra and Nagar Haveli)Dadra (Union Territory of Dadra and Nagar Haveli)Haridwar (Uttarakhand)Chennai (Tamil Nadu)Kolhapur (Maharashtra)Jobner (Rajasthan) The total installed capacity of six plants is 241,211 tonnes per annum as on October 31, 2019. PPF plans to expand the installed capacity at Jobner (Rajasthan) from 6,221 tonnes per annum as on October 31, 2019 to 17,021 tonnes per annum by December 31, 2019 and to 20,909 tonnes per annum by the end of FY20. PPF plans to set up a new manufacturing plant in Sangareddy (Telangana), with a total estimated installed capacity of 51,943 tonnes per annum and plan to commence production in FY21.Financial performanceBalance sheetValuationThe company’s revenue has compounded at an annual rate of around 12% and net profit at 6% over the last three years. At the upper price band, the offer is at a P/E of 23.4X FY19 EPS. Though the company boast of a healthy return ratio ROE being 20.80%, and operating margin at 11.83%.; the concern being declining operating margin, low single digit PAT margin & high sensitivity to raw materials prices. The issue looks fairly priced. However, the possibility of a 15-20% listing gain cannot be ruled out. Disclaimer: This document has been prepared by IndiaNivesh Securities Limited (“INSL”), for use by the recipient as information only and is not for circulation or public distribution. 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