OFS : RETAIL QUOTA DOUBLED

Government has  changed the retail investor quota in the Offer for Sale (OFS) route. All future disinvestments will now have 20% quota for small investors, as against the existing 10%. This will benefit the retail investors, particularly in PSU OFS.

IPO NEWS : ALIBABA LISTINGS IN 2ND WEEK OF SEPT ?

Alibaba Group Holding Ltd, the Chinese e-commerce giant is planning to launch its New York stock market debut in the second week of Sept.

The much-anticipated IPO could raise more than $20 billion, making it the biggest technology listing in the world.

QUOTE OF THE DAY

Remember that not getting what you want is sometimes a wonderful stroke of luck. –Dalai Lama

E U SERVES ONE WEEK NOTICE ON RUSSIA

EU has been working overtime on further restrictive measures on Russia and has given one week time for reversal, otherwise it will impose full scale sanctions on Russia.

Earlier, Ukrainian President Petro Poroshenko said his country was "close to a point of no return - full scale-war" with Russia.

GAS PRICE DIPLOMACY : MUKESH OPTS OUT OF JAPAN TOUR

Mukesh Ambani, head of Reliance Industries, has dropped out of a business delegation accompanying Prime Minister Narendra Modi on his visit to Japan. Has this something to do with the proposed revision in gas price formula ?

SBI CAPS SECURITIES : Top 5 Techno-Funda picks

 

Company	CMP	Target	Stop Loss
Supreme Industries	590.0	625.0	572.0
Automotive Axel	643.5	680.0	625.0
Zydus Wellness	615.6	640.0	598.0
Atul Auto	701.2	738.0	681.0
Shalimar Paints	95.3	102.5	90.3

 

WHAT AILS OUR PRIMARY MARKET - GREED?

Stock markets on Friday closed at record high. If the secondary market is buoyant, primary market should witness flurry of IPOs. However the scenario is different. So far in 2014, the market has seen only 4 IPOs.  

In 2010 the market witnessed  71 companies getting listed through an IPO. In 2011 it was down to 40. And in 2012 there were only 12 primary issues. 2013 was still worse. Only 5 companies got their shares listed.

The law of economics tells us that if the price is right, there would be demand for practically any scrip. It appears that the greed of the issuers got the better of their discretion and judgment. The lead managers to the issues also need to take the blame for poor professional judgment and advice whereby they could not persuade the issuers to price their issues realistically, leaving some thing for the investors too. Some issues get over subscription due to high premia in the grey market, which disappears, once the issue closes. The uninformed investors become victims of such market manipulations. Together, the issuers and the merchant bankers are responsible for the pathetic condition of primary market.

BRAZIL SLIPS INTO RECESSION

Brazil’s economy  has slipped into recession for the first time in more than five years as investments contracted on lower business confidence. Gross domestic product shrank by 0.6% in the April-June period from the previous three months.

TESCO STOCK TUMBLES ON PROFIT WARNING

Tesco  shares tumbled more than 8 percent in the early trade as the company has issued yet another profits warning, cutting both its dividend and capital expenditure.

PUBLIC DEBT @ RS 6 LAC CRORE

India’s public debt rose sharply to Rs 6 lakh crore in the April-June period 2014 from Rs 5,63,911 crore in the corresponding period last year.

UKRAINE EFFECT : ROUBLE AT 16 YEAR LOW, OIL PRICE RISES

The rouble fell to 37.03 per dollar, its worst valuation since the currency was restructured in 1998.

It also follows peace talks in Minsk between Ukrainian President Petro Poroshenko and Russian President Vladimir Putin in Minsk which has failed to move in the desired direction.

 Brent crude for October advanced 33 cents to $102.79, on Ukraine concern. 

SHARDA CROP CHEM IPO OPENS ON 5TH SEPT

Sharda Corp IPO opens on 05-09 and closes 09-09-2014. The company has set the price band in the range of Rs 145-156.

ISSUE DETAILS

NAME	SHARDA CROP CHEM LIMITED
PROMOTERS	Ramprakash V. Bubna, Sharda R. Bubna, Ashish R. Bubna and Manish R. Bubna
ISSUE SIZE	PUBLIC  ISSUE OF 22,555,124 EQUITY SHARES OF FACE VALUE OF RS 10.
PRICE BAND	RS 145-156
BUSINESS	Marketing and distribution of    formulations and generic active ingredients
LISTING	BSE / NSE
BRLM	Edelweiss Financial Services  and IDFC Capital
REGISTRAR	KARVY

AWAIT DETAILED ANALYSIS.

RBI : QUARTERLY STATISTICS ON DEPOSITS AND CREDIT OF SCBs

RBI releases 'Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks: March 2014'

Highlights: Growth rates in aggregate deposits and gross bank credit decelerated to 13.9 percent and 13.8 per cent, respectively in March 2014 from 14.2 per cent and 15.1 per cent recorded a year ago. The deceleration in gross bank credit was observed across all population groups whereas deceleration in aggregate deposits was observed only in ‘urban’ centers. Public sector banks together contributed 74.1 per cent share in aggregate deposits and 73.3 per cent share in gross bank credit followed by private sector banks (18.7 per cent and 19.4 per cent, respectively) at end-March 2014. The credit-deposit (C-D) ratio of all Scheduled Commercial Banks (SCBs) as on March 31, 2014 stood at 78.0 per cent. CD ratio for public sector banks, private sector banks, foreign banks and regional rural banks stood at 77.1 per cent, 80.9 per cent, 87.4 per cent and 68.1 per cent, respectively.

FIIs net sell on F&O expiry day

FIIs have net sold for Rs 711 crores in cash market, where as DIIs have bought to the extent of Rs 730 crores in the same segment.  NIFTY gained 18 and Sensex 78 points in today's trade.

SEBI IMPOSES PENALTY OF RS 10 LACS ON SOUTHERN FUEL LIMITED

SEBI has imposed a penalty of Rs 10 lacs on Southern Fuel Limited for violation of SAST Regulations.

M S OVERWEIGHT ON SKS MICRO

Morgan Stanley initiated coverage on the stock with an "overweight" rating and a target of Rs 385.  FirstchoiceIPO reiterates that SKS Micro is a pure vanilla NBFC and like other NBFCs its fair value is around 12 PE.

SOLVE DNS ON FIRST CHOICE IPO

DNS Rating

A+	Rating by SolveDNS firstchoiceipoanalysis.com DNS tests had 0 failed tests and 2 warnings. 95.24% out of 100

CANARA BANK TO SPLIT FACE VALUE

The board of directors of Canara Bank  has granted in-principle approval for the subdivision of one equity share of the bank having a face value of Rs. 10 each into five equity shares of face value of Rs. 2 each. Canara Bank shares closed at Rs 394, yesterday.  Normally face values are split when the stocks are traded at very high price,which is beyond the reach of retail investors / traders.

CABLE CONNECTIONS TO MARANS CUT-OFF

The government has cancelled registrations of 17 multi-system operators, including Kalanithi Maran’s Kal Cables Pvt Ltd.

The registrations have been cancelled on August 20 due to denial of security clearance by Ministry of Home Affairs.

IBA : BCs TO GET RS 5000 P M

IBA says business correspondents who do the groundwork opening the bank accounts will get a monthly compensation of Rs 5000. This will give the financial inclusion drive under the ‘Pradhan Mantri Jan Dhan Yojana’ a fillip.

IPO NEWS : MONTE CARLO FASHIONS TO HIT STREET NEXT MONTH

Monte Carlo Fashions is likely to launch its IPO next month. The company will offer 54.33 lakh equity shares, including an Offer for Sale by promoters group and private equity, Samara Capital. 

CCI ORDERS FURTHER PROBE ON SUN-RANBAXY DEAL

CCI has ordered a second-stage investigation into the merger of Sun Pharmaceutical and Ranbaxy Laboratories, citing the risk that the deal could harm “national interest” by resulting in significant market domination by the combined entity. 

This is the first time the Competition Commission of India has decided on a second-stage inquiry, which follows a preliminary investigation of a deal, and raised such an objection.

ALIBABA POSTS HIGHER PROFITS

Alibaba's second-quarter profit is at $2 bn compared $0.61 bn in the same period last year.

Alibaba is planning to list shares on the New York Stock Exchange later this year.

WEB SITE TARANTULA ON FIRST CHOICE IPO

FIRSTCHOICEIPOANALYSIS.COM

• 4.0 out of 5.0 stars by WebTarantula

TRAFFIC TREND

This website has an up traffic trend and its number of visitors is growing. It has climbed 57259 positions up from the last three months, which is about 12.66% increase.

SEO SCORE

79%

SNOWMAN IPO FULLY SUBSCRIBED

Snowman IPO has received 2.84 times subscription till today. Retail portion has been subscribed by over 12 times. The IPO closes tomorrow.

OPEN OFFER FOR R R CORPORATE SECURITIES

RV Buildtech & Amusement Private Limited  is proposing to acquire 8,32,000 equity shares, representing 26% of the total paid-up equity share capital of R. R. Corporate Securities Limited. 

SC DIRECTS DLF TO DEPOSIT PENALTY AMOUNT

 DLF has been directed by the Supreme Court to deposit Rs 630 crore fine slapped on it by the Competition Commission of India for allegedly resorting to unfair business practices.

FORBES : TCS WORLD'S MOST INNOVATIVE COMPANY

Forbes has named TCS as "one of the World's Most Innovative Companies", and positioned it 57th as the highest-ranking global IT services provider on this year's top-100 list.

NIFTY : TOP GAINERS

Symbol	LTP	% chng	Volume
INDUSINDBK JINDALSTEL HCLTECH ONGC ICICIBANK	580.80 244.30 1,648.95 428.90 1,545.00	3.27 3.12 2.96 2.61 2.45	4,12,225 59,60,364 12,41,469 72,86,208 22,36,841

FAILED IPOs WITH HIGH IPO GRADE

IPOs which carry high grade are expected to do well in the exchanges after listing. The following list busts that myth.

COMPANY	IPO DATE	IPO GRADE	IPO PRICE	CMP
UNITED BANK OF INDIA	MAR 2010	4	66	47
IL&FS TRNS PORT	MAR 2010	4	258	208
SJVN	MAY 2010	4	26	24
HM MEDIA	MAY 2010	4	166	158
SKS MICRO	AUG 2010	4	985	276
ORIENT GREEN POWER	OCT 2010	4	47	14
TECPRO SYSTEMS	OCT 2010	4	355	16
ASOKA BUILDCON	OCT 2010	4	324	128
OBEROI REALTY	OCT 2010	4	260	238
MOIL	DEC 2010	5	325	290
A2Z  MAINTENANCE	DEC 2010	4	400	26
PUNJAB & SIND BANK	DEC 2010	4	120	55
MCX	APR 2012	5	1032	830
SPECIALITY  RESTAURANT	MAY 2012	4	150	133

MARKETS TO OPEN IN GREEN

Stock markets are expected to open in green, following global cues.  Beaten down power  and mining stocks will bounce back today. However, with just two trading sessions remaining for F&O expiry, unwinding of long positions and profit booking in some counters may drag benchmark indices to red by close.

USL's FY 14 RESULTS ON 03-09-2014

United Spirits  will announce its FY14 results on 03-09-2014.  The adjourned Board Meeting is being re-convened to consider the audited Financial results of the Company for the year ended March 31, 2014. 

BSE ACCUSES NSE OF UNFAIR TRADE PRACTICE

Country's oldest stock exchange, BSE,  has written a letter to SEBI alleging that rival NSE and its associate DotEx International were acting in an unfair manner by trying to block trade flow to BSE. 

CMD POST IN PSU BANKS TO BE SPLIT

Government is considering the idea of  bifurcation the post of Chairman and Managing Director in public sector banks to strengthen corporate governance following recent corruption cases.

ELECTROTHERM FACES CHEATING CHARGES

BSE listed Electrotherm has been accused of cheating Central Bank of India to the tune of Rs 430 crores. A case has been registered against company and its employees. Electrotherm reported a net loss of Rs 321 crore for FY14. The company has an equity of Rs 11.21 crores. The company shares were closed at Rs 21, yesterday.

SNOWMAN IPO : SUBSCRIPTION STATUS

Snowman IPO has received around 80% subscription on day one. The IPO in the price band of Rs 44-47, closes for subscription on 28-08-2014.

FIIs NET BUY FOR RS 365 CR

FIIs have net bought to the extent of Rs 365 crores in cash market, where as DIIs have net sold for Rs 259 crores in the same segment. Benchmark indices closed flat in today's trade. The same trend with negative bias will continue till expiry of F&O on 28-08-2014.

BSE NEWS : CHANGE IN CIRCUIT FILTER

BSE has revised the circuit filter for 25 stocks. The change is effective from 27-08-2014.

Sr. No.	Scrip Code	Scrip Name	Circuit Filter % Revised to
1	538579	Carewell Industries Ltd	20
2	505075	Setco Automotive Ltd	10
3	521161	Sri Lakshmi Saraswathi Textiles Arni Ltd	10
4	514332	Neo Infracon Ltd	10
5	533056	VEDAVAAG Systems Ltd	10
6	537326	Chemtech Industrial Valves Ltd	10
7	524019	Hydro S & S Industries Ltd	10
8	532774	Accel Frontline Ltd	5
9	538503	Marico Kaya Enterprises Ltd	5
10	533296	Future Market Networks Ltd	5
11	517496	Ricoh India Ltd	5
12	526139	Transgene Biotek Ltd	5
13	530173	Oscar Global Ltd	5
14	531364	Choice Infra Ventures Ltd	5
15	531866	Aagam Capital Ltd	5
16	532607	Ontrack Systems Ltd	5
17	532887	Sujana Towers Ltd	5
18	506170	Hiran Orgochem Ltd	5
19	506981	Bluechip Tex Industries Ltd	5
20	500238	Whirlpool of India Ltd	5
21	503831	Fomento Resorts & Hotels Ltd	5
22	524661	Welcure Drugs & Pharmaceuticals Ltd	2
23	512129	Jayant Mercantile Company Ltd	2
24	530803	Bhageria Dye Chem Ltd	2
25	531307	S R K Industries Ltd	2