RITES and Fine Organic Industries shares to be listed on 02-07-2018

Recently concluded IPOs - RITES and Fine Organic Industries will make their stock market debut on Monday.

RITES is the first state-owned firm to hit the IPO market in the current fiscal.

RITES offered shares in the price band of Rs 180-185 was set as the price band, while Fine Organic had set the price band in the range of  Rs 780-783.

Bse changes circuit filter for 9 stock

Bse has changed the circuit filter for stocks wef July 02, 2018.

Sr. No.	Scrip Code	Scrip Name	Price Band % Revised to
1	541450	Adani Green Energy Ltd	20
2	506194	Arihant Superstructures Ltd	10
3	535466	Samruddhi Realty Ltd	10
4	540061	Bigbloc Construction Ltd	10
5	533540	Tree House Education & Accessories Ltd	5
6	531616	Starcom Information Technology Ltd	2
7	539842	Sysco Industries Ltd	2
8	539363	Sri Krishna Constructions (India) Ltd	2
9	530187	Atharv Enterprises Ltd	2

Crisis is an opportunity : HFDC Bank CEO

The crisis in the banking industry is  as opportunity for well managed banks, says HDFC Bank's CEO Aditya Puri. As majority of the banking system players, including its private sector peers fight the scourge of bad loans and frauds, HDFC Bank  is looking at expanding its market share.  Puri says they will get some benefit if the rest are focused on other issues other than growth.  They expect to grow well.

 The veteran banker further said typically, his bank’s growth plans are not dependent on competition. Puri termed the ongoing troubles in the system as a period of transition, and that there is nothing to worry at the systemic level as most of the lenders are either well-capitalized or have the assurance of government support.

Moody's says Rupee is relatively strong

Rating agency Moody's says that India is among the 5 countries which are least vulnerable to currency pressures amid strengthening of the US dollar, because of low dependence on external capital inflows.

In a report on the impact of strengthening of the US dollar on other sovereigns, Moody’s said the appreciation of dollar has prompted a sharp currency depreciation and/or a significant decline in forex reserves in a number of emerging and frontier markets.

However, India, China, Brazil, Mexico and Russia are among the “least vulnerable” to currency pressures,  according its report.

IRDA clears LIC investments in IDBI Bank

Insurance Regulatory and Development Authority has cleared the decks for state-run Life Insurance Corporation to go beyond the normal threshold and acquire up to 51 per cent stake in IDBI Bank. Currently LIC holds around 8% in IDBI Bank.

Former IAS officer has been appointed as ICICI Bank's non executive chairman

ICICI Bank board has approved the appointment of Girish Chandra Chaturvedi as its non-executive, part-time chairman, effective from July 1, 2018.

Chaturvedi has served as Additional Secretary in the Financial Services with the government of India, and held various other senior-level positions in the government.  Among banks, he has served as a director with IDBI Bank, Bank of Baroda, Canara Bank and IDFC Bank.

IPO ANALYSIS: Xiaomi Inc - Overpriced - Avoid

Issue Details :

Issue size	$ 4.72 billions
Trading to start on	09-07-2018
Price	HK$ 17-22
Business	Electronics company
Promoters	Lei Jun, chairman
Listings	Hong Kong
BRLM	Goldman Sachs, Morgan Stanley and CLSA

BUSINESS:

Xiaomi is a Chinese electronics company headquartered in Beijing. Xiaomi makes and invests in smartphones, mobile apps, laptops, and related consumer electronic products.

Xiaomi was founded in 2010 by serial entrepreneur Lei Jun, who believes that high-quality technology doesn't need to cost a fortune. Company creates remarkable hardware, software, and internet services for and with the help of Mi fans. The product range,among others includes the Mi Note Pro, Mi Note, Mi 4, Redmi 2, Mi TV, Mi Band and other accessories.

Xiaomi is expanding its footprint across the world to become a global brand. Currently Xiaomi is the world’s fourth largest smartphone company. Company’s revenue exceeded $ 18 billions in 2017, of which India contributed 32%. Company has many verticals including smartphone, Retail, Internet services, networking  Cloud, big data and AI.

Risks:

1. Limited operational history.
2. Smartphone revenues accounts for nearly 75% of the total revenue. Any decrease sales in this segment will hit the company hard.
3. Business is subject to risk of international operations.
4. Highly competitive business.

Recommendations.

The offer is made at 40 PE, based on its 2017 earnings and around 23 times Xiaomi's 2019 earnings estimate. Comparable peers are Apple and Samsung. Apple is trading at 17 times on its last year earnings and 14 times forward earnings. Samsung is trading at 7 PE.
The IPO has been overpriced as compared to its established peers. Most of Xiaomi's revenues comes from two price sensitive markets - China and India. Margin expansion in these countries will have negative impact on sales. More importantly there is publicly proclaimed and self imposed margin restriction by Xiaomi on some of its products (5%). Xiaomi will find it difficult sustain the exponential growth that it achieved in the recent past.

Avoid the IPO.

IPO News : HDFC AMC gets Sebi's nod

 

HDFC Asset Management Company has received Sebi's clearance to float an initial public offer.



The offer comprises a net offer to public of up to 2.21 crore equity shares, a reservation of up to 3.20 lakh shares for purchase by eligible HDFC AMC employees. 

The IPO is being lead managed by Nomura Financial Advisory and Securities, Kotak Mahindra Capital, Axis Capital, BofA Merrill Lynch, Citigroup Global Markets India, CLSA India, HDFC Bank, ICICI Securities, IIFL Holdings, JM Financial, JP Morgan India, Morgan Stanley India. 

Canara bank to raise Rs 1000 Cr through ESPS

Canara Bank is set to raise about Rs 1,000 crore through an employee stock purchase scheme (ESPS), under which it will issue up to 6 crore equity shares to its staff.

The bank has plans to raise Rs 7,000 crore during 2018-19.

The board has decided to raise equity share capital up to Rs 60 crore, through Canara Bank Employee Share Purchase Scheme.

Apple and Samsung patent case settled outside the court

Apple and Samsung have decided to end their patent infringement battle that began in 2011 and went all the way to the US Supreme Court. 

In a filing at a district court in San Jose, California, on Wednesday, the two tech giants notified the judge that they have agreed to drop and settle their remaining claims and counterclaims in this matter.