Beeyu Overseas Limited
Issue details
Issue opens on : May 26, 2005
Issue closes on : June 03, 2005
Fixed Issue Price : Rs 14 per equity share of face value Rs 10 each.
Amount Payable on application :Rs 7 per equity share.
Minimum application :400 equity shares and in multiples of 400 equity shares thereafter.
Objects of the Issue
Beeyu Overseas will use the issue proceeds to set up a two new Crushing Tearing Curling (CTC) and Orthodox tea factories in two phases respectively.
Points to Consider
Beeyu Overseas was incorporated in 1993 with the objective of exporting tea, coffee and machinery and is part of the Beeyu group of companies. The company has offices in Russia , Leningrad , Kazakhstan , Iran and India while its factories are located in Ooty and Kolkata.
Beeyu Overseas is into manufacturing and exports of tea, coffee and other agro based products. Besides exports of tea and coffee, which is Beeyu Overseas core business, the company is also exporting Wheat, Rice, Sesame seeds, Edible Oils, Pulses and other Agro based commodities. Beeyus tea manufacturing capacity is 3000 tones per annum (tpa) and after commissioning of the new factories the capacity will increase to 9000 tpa.
The company has a stable and profitable client relationship with companies based in Russia , Ukraine , Poland , Teheran, Dubai, Iran etc .
Tea production is linked to weather conditions like rainfall and adequate water supply. Any shortfall may affect the production. Tea, coffee and other products are perishable in nature and hence care has to be taken while exporting.
In the financial year ended March 31, 2004 , the company had posted a net profit of Rs 0.68 crore. In the first 9 months of FY2005, it recorded a net profit of Rs 0.42 crore on a total income of Rs 32.02 crore. The company has also consistently paid dividends from 1995.
Conclusion
Beeyu Overseas issue price implies a PE of 14.43 compared to industry PE of 24. It is currently listed on the Cochin, Coimbatore and Calcutta Stock Exchanges and is trading at Rs.20 which implies the stock is at a discount of 42 percent to its current market price.
After the IPO the stocks will also trade on the BSE.
Source: http://content.icicidirect.com/ULFiles/UploadFile_2005530154222.asp
