IPO LISTING NEWS : AD LAB TO LIST ON 06-04-2015

NIFTY TOP GAINERS ON 30-03-2015

Gainers
Symbol	LTP	% chng	Volume
IDEA ULTRACEMCO NMDC ASIANPAINT ONGC	185.10 2,955.90 130.25 808.00 316.25	7.43 5.50 4.03 3.84 3.71	1,03,46,262 3,40,546 20,97,254 8,47,421 44,01,179

NSE HOLIDAYS IN APRIL 2015

1	02-Apr-2015	Thursday	Mahavir Jayanti
2	03-Apr-2015	Friday	Good Friday
3	14-Apr-2015	Tuesday	Dr. Baba Saheb Ambedkar Jayanti

IPO NEWS : SHREE SHUBHAM LOGISTICS LTD

Shree Shubham Logistics which undertakes an array of activities in the post-harvest value chain for agri-commodities, is planning to raise funds from the primary markets to fund expansion. The company's activities include warehousing, procurement, primary processing, trading, collateral management, funding facilitation, funding, testing & certification, and pest management in relation to agri-commodities.

 Shubham is a group company of Kalpataru Power and JMC Projects (India) Limited.

FORTHCOMING IPOs : Yatra.com and Newgen Software

Yatra.com and Newgen Software Technologies are planning to lists their shares to provide exit to the early  investors including VC funders.

About Yatra.com :

Yatra.com is India’s leading online travel company. Positioned as a brand that believes in "Creating Happy Travellers", Yatra provides information, pricing, availability, and booking facility for domestic and international air travel, hotel bookings, holiday packages and bus and railway reservations. Yatra offer a host of travel services designed to make business and leisure travel easier.

Based in Gurgaon, India, Yatra.com is a one-stop-shop for all travel-related services. A leading consolidator of travel products, Yatra.com provides reservation facility for more than 12,000 hotels in India and over 400,000 hotels around the world. Through continued excellence in providing travel solutions, responses to booking travel online through Yatra.com have also reached new heights with the company doing 20,000 domestic tickets and 5000 hotels and holiday packages a day.

Newgen Software Technologies - 

Newgen has been positioned in the Magic Quadrants for Intelligent Business Process Management (BPM), Enterprise Content Management (ECM), and Customer Communication Management. The company has been recognized by distinguished analyst firms including Gartner, Forrester, Frost and Sullivan, and IDC.

Newgen Software Inc. is a wholly owned subsidiary of Newgen Software Technologies Ltd. – Leader in ECM, BPM, CCM and Case Management space. 

FORTHCOMING IPO: PENNAR ENGINEERED BUILDING SYSTEMS LIMITED

ISSUE SIZE	-
PRICE	NOT DECIDED
FACE VALUE	RS 10
BUSINESS	Building systems solutions providers
PROMOTERS	PENNAR INDUSTRIES LIMITED
LISTING	BSE / NSE
BRLM	MOTILAL OSWAL, AXIS CAPITAL AND KARVY INVESTOR SERVICES
REGISTRAR	KARVY

IPO NEWS : GVK AIRPORT DEVELOPERS TO RAISE RS 1500CR

GVK Power and Infrastructure Ltd  will be filing papers with the regulators shortly to raise around Rs 1500 Cr from the primary markets. The IPO is likely to be managed by Citigroup, Bank of America-Merrill Lynch, Axis Capital and JM Financial Services.

TATA MOTORS RIGHTS ISSUE TO BE UNDERWRITTEN

Tata Motors's Rs 7500 cr rights issue is likely to be under written to ensure success of the offer. Normally rights issue are not under written, since they are offered discount to the market price. Particularly  so when an rights offer are made from well known corporate houses. Tata Motors have hired 8 investment bankers for the rights issue and all of them are underwriting it.

The merchant bankers involved are - Citigroup, Bank of America Merrill Lynch, HSBC, JP Morgan, Credit Suisse, Kotak Mahindra, State Bank of India and ICICI Securities. 


DETAILS OF RIGHTS OFFER:

a. Size of the offer - Rs 7500 cr.

b. Ratio of Rights entitlement : 

i) 6 fully paid-up Ordinary Shares for every 109 fully paid-up Ordinary Shares held as on the book closure date.


ii) 6 fully paid-up ‘A’ Ordinary Shares for every 109 fully paid-up ‘A’ Ordinary Shares held as on the book closure date.

c.  Issue Price : a) Rs. 450 per Ordinary Share (including premium of Rs. 448 per Ordinary Share.)  and Rs. 271 per ‘A’ Ordinary Share (including premium of Rs. 269 per ‘A’ Ordinary Share.)

Currently Tata Motors shares are trading around Rs 535.

The rights offer is likely to open on the second week of April, 2015. 

UBER IPO IN JULY 2015?

Taxi aggregator Uber plans to list its shares on NASDAQ. The IPO may happen in July 2015.  Uber operates in more than 250 cities across 55 countries. With that most recent funding round, Uber has now raised eight times as much capital as its closest competitor, Lyft Inc.  However Uber faces problems in many countries including India with the regulators. This could further delay the IPO.

MODI AND BLACK MONEY

During general LS elections of 2014, Modi had said that if the black money stashed in foreign bank accounts is brought back and distributed among the poor in India, then each poor man will pocket Rs 3 lakh.

“I have decided if you bless me and give me the opportunity I will bring back all the black money.”

“When we bring back the black money, we will give it to regular salary holders. We must honour their patriotism. Till the time we don’t bring black money, such thefts will continue. So to stop new thefts and such cases, all black money should be brought home to teach one and all a lesson.”

“I will bring back every rupee that is stored away in foreign banks, any which way, and ensure that it is used for the rehabilitation of the poor in the country.”

Soon after assuming the office of the PM, as was promised during the election campaign, a high-powered committee was formed under the leadership of a retired SC Justice to advise the government on the various avenues available to get all the black money stashed abroad back into the country. However  even after lapse 10 months of coming to power, the PM has not brought a single paisa black money.

New lawsuit accuses Google of AdSense fraud

A lawsuit  has been filed against Google accuses the tech titan of engaging in widespread fraud by canceling AdSense accounts just before they were due to pay out.

The suit relies in part on recent anonymous accusations that Google developed an AdSense fraud scheme in 2009 to prevent publishers from collecting money that Google owed them. AdSense is a major advertiser partner network for Google that accounts for about a quarter of Google's annual revenue. In 2013, Google earned $57.86 billion in revenue.

"Google's actions constitute breach of contract, breach of the implied covenant of good faith and fair dealing, unjust enrichment, and violation of the California Unfair Competition Law," the filing with the US District Court for the Northern District of California states. The lawsuit is seeking class action status so that it can represent all US-based AdSense users whose accounts were disabled or terminated with their Google refusing to pay them their final payment.

(Input from c/net)

IPO NEWS : ICICI SECURITIES TO MANAGE CATHOLIC SYRIAN BANK IPO

Catholic Syrian Bank  which is planning to raise around Rs 500 crores from the primary market has appointed ICICI securities as lead manager along with Kotak Mahindra Capital.

IPO NEWS : INDIGO PICKS CITIGROUP, KOTAK, MS AND JP MORGAN AS LEAD MANAGERS

                                                      IPO ON THE WINGS                                        

Indigo has picked four above mentioned merchant bankers for its initial offerings. The company intends to raise around Rs 1500 cr from the primary markets.

HERO MOTOCORP APPOINTS A WOMEN DIRECTOR

Hero MotoCorp Ltd has appointed Ms. Shobana Kamineni as a Director on the Board of the Company w.e.f. March 27, 2015.

BSE REVISES CIRCUIT FILTER FOR 13 STOCKS

BSE has revised the circuit filter for 13 stocks with effect from March 30, 2015.

Sr. No.	Scrip Code	Scrip Name	Circuit Filter % Revised to
1	532127	Mobile Tele Communications Ltd	10
2	532140	RM Mohite Industries Ltd	10
3	538568	Fruition Venture Ltd	10
4	538919	Skyline Ventures India Ltd	5
5	526683	Hotel Rugby Ltd	5
6	530125	Samrat Pharmachem Ltd	5
7	530955	Mindvision Capital Ltd	5
8	530967	Kyra Landscapes Ltd	5
9	519281	Agro Dutch Industries Ltd	5
10	531624	Country Condos Ltd	5
11	517403	Sun Source India Ltd	2
12	509024	Golden Legand Leasing & finance Ltd	2
13	526671	Matra Kaushal Enterprise Ltd	2

IPO ANALYSIS: O P CHAINS LIMITED - AVOID

ISSUE OPENS / CLOSES ON	30-03 / 08-04-2015
ISSUE SIZE	18,50,000 EQUITY SHARES
PRICE	RS 11
FACE VALUE	RS 10
BUSINESS
PROMOTERS	OMPRAKASH AGARWAL / OTHERS
LISTING	BSE- SME
BRLM	HEM SECURITIES
REGISTRAR	BIG SHARE

SENSEX @ 1,00,000 - WHAT KARVY HAS NOT FACTORED IN

(This article was first published on 05-06-2014)

KARVY Stock Brokings which has been recently barred by market regulator SEBI, from taking up new assignment or launching new schemes for six months in respect of its role as a stock broker, has come out with a research report wherein it says that Sensex will touch 1,00,000 mark by 2020. 

KARVY has 5 reasons why Sensex will touch that magic figure.

First: Macro-economic revival in India will open opportunities to make strong returns in the next few years. 

Second:  A real GDP growth of 6% along with Inflation of around 7% should lead to a nominal GDP growth of 13%.

Third: KARVY believes that earnings growth for new five to six year business cycle should be at least 20% considering the economy will revive from a very low base.

Fourth: If the infrastructure cycle revives quickly, the earnings growth revival will be faster with even 25% CAGR looking possible. 

Fifth: An earnings growth between 20-25% and multiple re rating from 15x to 16-17x in the next few years can lead to a 25% compounding of Sensex returns, which will take it to 100,000 levels by calendar year (CY) 2020.

What KARVY has not factored in are:

1. Happening of a 'Black Swan' event - like the one occurred in 2008 which led to global melt down. A sub prime crisis. Prior to the global melt down in 2008, Sensex was hovering around 22,000 and experts like KARVY then predicted that Sensex will touch 50,000 mark by 2014. Believing this theory millions of investors jumped in to the market. Then came the melt down. Equity markets across the world plummeted. Within few months Sensex came down to 8000 levels. Most investors lost money, some went bankrupt, few committed suicide. Brokerage houses down sized their operations.  It took nearly 6 years for Sensex to come to the level of 2008. Between June 2008 and June 2014, in full 6 years, the Sensex has moved by just by 3000 points.

2. Mansoon failure - This will apart from deterrent to GDP will be a drag on some segments like FMCG, auto and banks.

3. Fluctuations in currencies of major economies which will hinder our import / export.

4. Regime change / change in the economic policies in countries where in India is a major trading partner. 2016 is a big year for world economy. U S will elect its new president. The incumbent may be not as friendly as the current one. 

5. Slow down in world's major economies like  U S, China and Japan will have an impact on  India's growth story.

6. Terror strike similar to 29/11 which will make the  world economy crawl.

7. Spurt in oil prices internationally, reasons other than production and supply. We import 80% of oil requirements. If oil prices in international markets raises unreasonably as it happened in 2008-09, where in one barrel had touched $ 150, our economy will go for a tailspin.

8. Nature's fury - floods, earth quake and tsunamis. Capital earmarked for development will be diverted towards rehabilitation, will impact growth.

9. Scams, fraud in stock market - similar to one committed by Harshad Mehta and Ketan Parekh. Investors will lose faith in the system, market. We shall be back to square one.

10. Failure of a big bank / financial institution, globally. Money will flow away from equity markets to commodity / other segments.

( KARVY made the above prediction in first week of June, 2014. The sensex was hovering around 25,500 at that time).

FORTHCOMING IPO: S H KELKAR AND COMPANY LIMITED

ISSUE SIZE	RS 200 CR
PRICE	NOT DECIDED
FACE VALUE	RS 10
BUSINESS	Mfrs of  fragrance and flavour
PROMOTERS	RAMESH VINAYAK VAZE, MS. PRABHA RAMESH VAZE AND MR. KEDAR RAMESH VAZE
LISTING	NSE, BSE
BRLM	JM FINANCIALS, KOTAK MAHINDRA CAPITAL COMPANY
REGISTRAR	LINK INTIME