Author Topic: IIIL -- Ittefaq Iron Industries Ltd.  (Read 2173 times)

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Online MZ

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IIIL -- Ittefaq Iron Industries Ltd.
« Reply #-1 on: May 19, 2017, 05:25:24 PM »
All about Ittefaq Iron Industries Limited.

http://www.ittefaqsteel.com/

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IIIL -- Ittefaq Iron Industries Ltd.
« Reply #-1 on: May 19, 2017, 05:25:24 PM »

Online MZ

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Re: IIIL -- Ittefaq Iron Industries Ltd.
« on: May 19, 2017, 05:30:19 PM »
DATE OF PUBLIC SUBSCRIPTION: From May 23, 2017 to May 24, 2017 (BOTH DAYS INCLUSIVE)

Prospectus

Subscription Form

Bankers to the Issue
Bank Alfalah Limited
Faysal Bank Limited
Habib Bank Limited
Habib Metropolitan Bank Limited
MCB Bank Limited
Meezan Bank Limited
Silk Bank Limited
Soneri Bank Limited
Summit Bank Limited
United Bank Limited

Online MZ

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Re: IIIL -- Ittefaq Iron Industries Ltd.
« Reply #1 on: May 19, 2017, 05:39:12 PM »
Elixir Insight
Ittefaq Iron Industries Limited
Underdog Takes a Run at Greater Market Share; Subscribe up to strike price of PKR17.5/sh
·         Ittefaq Iron Industries Limited (IIIL) involved in re-bars manufacturing business plans to raise funds (PKR501mn at floor price of PKR12/sh) through IPO for meeting its working capital requirements.
·         The company's dispatches have remained flat during the past 3 years (average utilization in FY14-16: 43%) owing to working capital issues and power shortages. Though the management is hopeful that equity injection will help it to raise its utilization level.
·         At floor price, the stock's implied FY18/FY19 PE stands at 6.8x/5.7x. Our indicative fair value of PKR21/sh, offers 75% upside to floor price. We recommend subscribe up to strike price of PKR17.5/sh.
IPO to finance working capital requirement: Ittefaq Iron Industries Limited (IIIL) belongs to Alshafi Group of Companies whose roots can be traced back to Ittefaq Foundries established by Mian Muhammad Sharif in 1940s. While Alshafi Group was carved out from Ittefaq Foundries in 1990s, Alshafi Steel (melt shop) & Ittefaq Sons (rolling plant) were incorporated in 2004 and started their commercial operations from 2006. Alshafi Steel (melt shop) & Ittefaq Sons (rolling plant) were merged in 2009 into Ittefaq Iron Industries. The manufacturing facility is located near Raiwand, Districk Kasur. The company has Induction Furnace/Bar Mill/Girder Mill of 120K tpa each, where the Girder Mill operations remain suspended as its target market (i.e. Afghanistan) did not remain suitable due to border tension and security issues. The management believes that modification in design of Girder Mill may enable it to produce Angels/Channels/Girders suitable for domestic market. The company has not yet conducted feasibility study of the said changes and its current growth strategy does not include Girder Mill Operations. The company plans to raise funds over and above PKR501mn through 41.75mn shares issue (31.82% of the post-IPO capital) at floor price of PKR12/sh. 75% of the total IPO would be issued to institutions HNWIs through the book building process and the rest to the general public. The management plans to utilize IPO proceeds to meet its working capital requirement for increased output. While the excess funds may be used for: i) repaying short term debt (other than sponsors’ loan), ii) modification of Girder Mill subject to economic feasibility, and iii) any other activity related to the company’s operations.
Energy issues may remain pressing: Despite strong growth witnessed in re-bars demand in recent years, IIIL dispatches have remained flat in last 3 years (average utilization in FY14-16: 43%) owing to working capital issues and power shortages. The management is hopeful that equity proceeds from IPO will help it to improve utilization levels. However, energy issues may remain more pressing for the company. In this regard, we estimate that 6.2MW was available in FY16 as against the maximum demand of 9.7MW (11.0MW inclusive of demand for Girder Mill). As the energy situation is expected to improve in FY18 as RLNG based power plants come online in Punjab, we have assumed 30%YoY jump in FY18 production followed by 10% p.a. thereafter and maximum utilization of 75%. Based on our preliminary estimates, we expect FY18/FY19 EPS to stand at PKR1.76/2.11 (assuming 63%/69% utilization in FY18/19). We estimate that every 10ppt increase in utilization is expected to augment earnings by PKR0.36/share.
Subscribe up to strike price of PKR17.5/sh: At floor price, the stock’s implied FY18/FY19 PE stands at 6.8x/5.7x. While the company has so far reinvested its earnings, it plans to pursue a modest dividend disbursement strategy post the issue. In this regard, we believe the company may maintain approximately 40% payout, which implies FY18/FY19 DY of ~6.3% (based on floor price). Our indicative fair value of PKR21/sh, offers 75% upside to floor price. We recommend subscribe up to strike price of PKR17.5/sh.

Offline stuka

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Re: IIIL -- Ittefaq Iron Industries Ltd.
« Reply #2 on: May 19, 2017, 08:14:35 PM »
Ye to 30 ka ho gya.......... Log baaz nahi atay
SHJS, TGL, KOHC, NICL, CSAP, GWLC, DGKC, THCCL, FASM, APL

Offline mkzafar

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Re: IIIL -- Ittefaq Iron Industries Ltd.
« Reply #3 on: May 25, 2017, 08:16:07 AM »
Where ittefaq iron stands in comparison with Aisha steel???

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Offline silentvoice

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Re: IIIL -- Ittefaq Iron Industries Ltd.
« Reply #5 on: June 13, 2017, 10:00:52 AM »
Iske trading kub shoro ho gi

Online Farzooq

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Re: IIIL -- Ittefaq Iron Industries Ltd.
« Reply #6 on: June 23, 2017, 01:59:09 PM »
This is to inform you that Securities against the Initial Public Offer (General Public Portion) of Ittefaq Iron Industries Limited have been credited to respective accounts in CDS on end of day of June 21, 2017.
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Re: IIIL -- Ittefaq Iron Industries Ltd.
« Reply #7 on: July 24, 2017, 10:54:32 PM »
Bought today smalm quantity for 35+

Offline sqs17

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Re: IIIL -- Ittefaq Iron Industries Ltd.
« Reply #8 on: August 02, 2017, 04:39:30 PM »

Anyone Plz tell what is the short term and mid term TP?

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Re: IIIL -- Ittefaq Iron Industries Ltd.
« Reply #9 on: August 12, 2017, 09:52:02 AM »
32 sey 35 mekn ghoom raha hey , negative index is the main cause

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