Saturday, June 23, 2018

IDBI Bank may become LIC Bank

Image result for lic + bank Image result for lic + bank

Government is considering a proposal to sell a significant portion of its stake in IDBI Bank to Life Insurance Corporation of India  and has approached the Insurance Regulator for clearance.

The insurance regulator may take up the matter in its next board meeting. Further, to make this proposal effective, Insurance Regulator is likely to give LIC an exemption from breaching the maximum company-specific investment limit.

If all goes well, LIC may go for reverse merger and its Bank may start functioning before the end of this year.

Bajaj Finance pips Axis bank in market cap

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Bajaj Finance has become the 18th most valued company on the Indian bourses.

The market capitalization of the finance company stood at of Rs 134,952 crore on Friday, Axis Bank’s market capitalization ended at Rs 134,725 crore. 

 Bajaj gained gained 3.5 per cent to close at Rs 2,335. Axis gained 2% and closed at Rs 525.

Bajaj Finance has  gained 65 % in the last one year and is one of the top performer among Nifty stocks. The stock is trading at 8 times to its book value as against Axis Bank's 2 times.

Bankers get raw deal Alok Industries loan resolution

RIL in partnership with JM Financial ARC is set to take over bankrupt Alok Industries by offering Rs 5050 Cr. Nearly 72% of the lenders voting in favour of the deal. This follows the recent amendment in the Insolvency and Bankruptcy Code that stipulates a resolution plan can be approved if 66% of lenders vote in favour 

The offer of Rs 5,050 crore translated into an 83% haircut on dues of Rs 29,500 crore. At the end of the 270-day period allowed for putting in place a resolution plan in April.

Rites gets 67 and Fine Organic 9 times subscription on last day

Rites has received tremendous response on the final day. The IPO got 67% subscription. Fine Organic managed to get 9 times. QIB investors have bet heavily on both the offers.

Friday, June 22, 2018

Fiis net buy for Rs 1127 Cr

After weeks of net selling, Fiis have net bought for Rs 1127 Cr in cash market, yesterday. They were net sellers for nearly 6 weeks. Diis too have net bought for Rs 664 Cr in cash market.

Thursday, June 21, 2018

UBS ups target on Nvidia

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UBS, the multi national investment bank and financial services company says that shares will rise as the chip-maker benefits from governments using artificial intelligence technology to monitor its citizens.

UBS raised its price target to $285 from $266 for Nvidia shares, citing the company's leadership in the machine learning chip and software markets.

Nvidia offers its "Metropolis" platform, which enables governments to use its A.I. technology to analyze video feeds. The offering helps cities provide traffic monitoring, law enforcement and public safety services.

According to UBS the mass facial recognition and traffic monitoring market will be an additional $5 billion sales opportunity for Nvidia by 2020. He estimated the company has nearly 90 percent share of the current A.I. chip market.

Nvidia closed at $ 262.31, up $ 2.14 in Wednesday's trade.

M S turns bullish on Sensex

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Morgan Stanley says that in a bull case scenario, the Sensex will see a 30 percent raise and may rally towards 44,000, bu June next year. Better-than-expected outcomes, most notably on the policy and global front will result in such an up-move. The market starts believing in a strong election result and earnings growth accelerates to 29 percent and 26 percent in FY 19 and FY 20, respectively.

Wednesday, June 20, 2018

Rites gets 60% & Fine Organic 12% subscription on day 1

Rites IPO has received 60% subscription, where as Fine Organic Industries has got 12% subscription on day 1. Both the IPOs closes on 22-06-2018. 

DSK Loan fraud : MD, ED of Bank of Maharashtra arrested

Economic offences wing of the Pune police has arrested the MD of Bank of Maharashtra, Ravindra Marathe along with executive director RK Gupta in the Rs 3,000 crore DSK Group loan default case. Sushil Muhnot, the former CMD of the bank, was also nabbed from Jaipur in connection with the loan default. 

According to allegations made by the Pune EoW, the arrested officials colluded with the DSK Group by entering into fraudulent transactions and sanctioned loans. 

Fine Organic Industries IPO opens today - Invest

Issue Details:

Issue date
20-06 /22-06-2018
Issue size
76,64,994 equity shares
Face value
RS 5
Price band
Rs 780-783
Mfrs of Specialty Additives for Food, Plastics, Rubber, Cosmetics,textiles / others
Bse, Nse
JM Financials, Edelweiss

Manufacturer of oleo-chemical-based additives in India and a strong player globally in this industry. Fine Chemicals  produces a wide range of specialty plant derived oleo-chemicals-based additives used in the food, plastic, cosmetics, paint, ink, coatings and other specialty application in various industries. As at December 31, 2017, the company had a range of 387 different products sold under the ‘Fine Organics’ brand. The first company to introduce slip additives in India and we are the largest producer of slip additives in the world. Our success is the result of sustained efforts over the decades in all areas of our business, such as product innovation, process technology improvements, increases in scale, improved raw material procurement and focus on cultural understanding of consumers.

The company has three manufacturing facilities in the suburbs of Mumbai, including Ambernath, Dombivli and Badlapur, with a total installed capacity of about 64,300 tonnes per annum.

The company as part of the global expansion plans, it is also setting up a joint venture firm named FineAdd with the German partner Adcotec, to own and operate a 10,000 tpa facility in in Leipzig, Germany, which will be operational by Q3 FY20.

The Offer:
Offer for sale will see divestment of 25 percent of stake of 76,64,994 equity shares by the existing shareholders

Risks :

  1. Currency risk. The company exports 60% of its production.
  2. Stringent regulatory norms requires maintains of high standard in production, which has bearing on the cost.

Financials :

The company, in the last 3 years has  witnessed a revenue CAGR in excess of 13 percent.
EBITDA / operating profit grew around 14 percent during the period.
The average EPS reported in the last 3 years is Rs 25.50. (FV Rs 5).


Since the IPO is an OFS, there won't be increase in share capital after the issue. The enterprise is likely to report an EPS of Rs 30 plus for FY 19. The offer based on the next year profitability is made at 26, which is attractive.

Invest for listing as well as for long term gain.

Tuesday, June 19, 2018

IndiQube raises Rs 100 Cr Capital

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Smart work-space solutions provider, IndiQube, has raised ₹100 crore through private equity led by WestBridge Capital, one of India’s leading investment firms managing over $2.5 billion in capital.

The company is focused on serving all the real estate-related needs of their clients, including workspace planning, cafeteria management, conference rooms, internet lease-lines, power back-up and security. Employee transport, music cafĂ©, laundry services, doctor-on-call, flea market, help desk and yoga/pilates are some of the amenities offered by IndiQube.

BIS warns of internet breakdown due to digital currency

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 Bank for International Settlements in a report warned digital currencies like bitcoin could overwhelm and break the internet if they continue to grow.

The BIS has also warned, in a 24-page report published on its website recently, that cryptocurrencies cannot be trusted the way sovereign currencies can.

Unlike central bank-issued denominations, virtual currencies are produced, or "mined," by banks of computers solving complex algorithms, and then freely traded online.

Sandeep Bakshi to head ICICI Bank, stock gains 4 percent

 ICICI Bank says that its Chief Executive Chanda Kochhar would go on leave until the completion of an inquiry over an alleged conflict of interest, and named Sandeep Bakhshi, as chief operating officer  of the bank.

 The stock gained 4 percent in yesterday's trade and closed at Rs 294.

Fiis pulls back Rs 5500 Cr in June

Foreign investors have pulled out more than Rs 5500 Cr from capital markets this month so far due to global trade war worries coupled with hawkish commentary by the US Federal Reserve.

Sunday, June 17, 2018

Forthcoming IPO: Bitmain Technologies Limited

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Beijing based Bitmain, the largest and most established manufacturer of cryptocurrency mining chips — is considering an IPO.

Bitmain Technologies, now among the world's most recognizable Bitcoin companies, was established to develop and sell the world’s leading bitcoin miners using Bitmain's ASIC chip technology. Starting with the Antminer S1, our task continuously became more difficult as bitcoin’s “difficulty level” kept rising. We followed Moore’s Law in this emerging field of ASIC chip design and pioneered it, time and again. In May of 2016 we released the Antminer S9, the world’s first consumer-grade bitcoin miner based on a 16nm process ASIC chip. This is also the world’s most power-efficient bitcoin miner, taking that title away from its predecessor, the Antminer S7.

The listings could be in Hong Kong or an overseas market with U.S. dollar-denominated shares.

Dr Reddy's gets reverse medicine from New Jersey court

US District Court of New Jersey passed a restraining order on selling generic version of Suboxone in the US market. Dr. Reddy's launched its generic buprenorphine/naloxone sublingual film product  in the US on Friday after it got final approval from USFDA

Suboxone is used for the treatment of opioid dependence.

Saturday, June 16, 2018

ARCs may get foreign funds

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Center is planning to rope in multilateral financial institutions, global private equity firms, global pension funds and sovereign wealth funds to invest in the asset reconstruction company that is being envisaged for faster resolution of public sector banks’ stressed assets.

The move could take the burden of funding the ARCs off the government, which has already budgeted a capital infusion of ₹65,000 crore in PSBs in FY19.