IBA talk inconclusive

The wage revision talk between Indian Banks Association and apex union body - UFBU remained inconclusive.  The talks were held on Monday. IBA offered to increase the wages of over three dozen bank employees by six per cent, compared with the two per cent hike offered earlier, bank unions said today. However, unions, under the banner of United Forum of Bank Unions (UFBU), rejected the offer again.

Moody's : GST rate cut credit negative

International rating agency Moody’s says that the recent Goods and Services Tax  rate cuts on 88 items will weigh on government’s revenue collection and is ‘credit negative’ as it will put pressure on efforts of fiscal consolidation.

According to Moody's estimate revenue loss from the most recent tax cuts to be about 0.04%-0.08% of GDP annually. Although the proportion of revenue loss is small, the vacillation in tax rates creates uncertainty around government revenue and comes amid persistent upside risks to its expenditures.

Axis Bank's profit nose dives in q1 fy19

Axis Bank has reported a 46 per cent fall in first-quarter profit at Rs 710 Cr, as its bad loans continued to rise.

The bank's net profit stood at Rs 1306 Cr, in the same quarter, a year ago.

Gross non-performing loans as a percentage of total loans fell to 6.52 per cent at end-June, compared with 6.77 per cent three months earlier, but rose year-on-year from 5.03 per cent in the first quarter of 2017.

The stock gained Rs 16 and closed at Rs 569. Results were announced after market hours. The stock will react to the results in tomorrow's trading.

IPOs of 2018 : 11 out of 19 trades below offer price

Sl No	company	IPO price	CMP
1	Apollo Micro	275	155
2	Newgen	245	239
3	Karda Constructions	180	180
4	Galaxy Surfacants	1480	1176
5	Aster DM	190	170
6	H G Infra	270	249
7	Bharat Dynamics	428	374
8	HAL	1215	897
9	ICICI Sec	520	317
10	IndoStar Capital	572	485
11	TCNS Clothing	716	665

HDFC posts Rs 2190 Cr profit

HDFC has reported Rs 2190 Cr profit for June quarter. This is about 54 per cent raise, year-on-year. HDFC had posted profit of Rs 1,424 crore in the corresponding quarter last year. 

The stock closed at Rs 2016, down Rs 31.

RIL is in striking distance to replace TCS as most valued company

RIL gained Rs 21 and closed at Rs 1151, the highest ever closing. RIL's market cap stands at Rs 7.30 lac crore as against TCS's Rs 7.44 lac crore. TCS closed flat at Rs 1944 in today's trading.

TCNS closes at 7% discount to IPO price

TCNS Clothing company's shares were listed on exchanges today. As against the IPO price of Rs 716, the stock closes at Rs 665, down 7%. 

FirstChoiceIPO had advised the investors to stay away from the IPO.

IBA to meet on 30-07-2018, wage revision is on the agenda

 Banks apex body,  Indian Banks Association  and bank unions will meet on Monday to negotiate on salary hikes for over three dozen banks. Nearly 40 banks including public, private and foreign banks, have mandated to IBA to decide on wage hikes for their employees. Bank unions under the banner of United Forum of Bank Unions will represent the employees. The current wage revision is due from November 2017, after the 10th bipartite settlement ended in October 2017.

HDFC AMC IPO subscribed 83 times on the last day

HDFC AMC IPO has been subscribed 83 times on the final day.

ICICI Bank reports loss in Q1 FY19

ICICI Bank has reported a net loss of Rs 120 Cr for June quarter. The bank had posted a net profit of Rs 2049 Cr, same quarter last year. In the last quarter ended March, the bank had earned a net profit of Rs 1020 Cr. This is the first ever loss by bank in the last one decade.

Net Interest Margin is at 3.19 percent from 3.24 percent QoQ.


Results were announced after market hours. The stock will react negatively in next Monday's trade.

HDFC AMC IPO fully subscribed on day 1

HDFC AMC IPO has been fully subscribed on day 1. The issue has received 1.03 times subscription. The IPO closes on 27-07-2018.

HDFC AMC ropes in 61 anchor investors @ Rs 1100

HDFC AMC has raised Rs 732 crore from anchor investors, ahead of its IPO, which opens today. It has allotted 66.53 lakh shares at a price of Rs 1,100 per share to 61 anchor investors garnering Rs 732 crore. 

The IPO has evinced huge demand from more than 100 accounts. Five of the largest global active asset managers, among others, Capital, Fidelity, Blackrock and Temasek, have participated in the anchor portion.

FirstChoiceIPO has strongly recommended for subscribing to the IPO. 

IPO News : OLA to debut bourses in next 3-4 years

Taxi aggregator is making a profit on every ride it offers in India. OLA had incurred a loss of Rs 4900 Cr in FY17.

According to its Co-founder and Chief Executive Officer Bhavish Aggarwal the company is operationally profitable and would soon become cash flow positive. Ola in India, now makes money on every ride. The focus over the past couple of years has been to keep growing the market and our share in the market and build up on sustainable business.

HDFC Bank reports not so impressive results

 

HDFC Bank reported an 18 per cent year-on-year growth in net profit at Rs 4,601 crore for the quarter ended June.

The bank had posted a net profit of Rs 3,894 crore in the same quarter last year.

 The stock is likely to react negatively in Monday's trade since the market was expecting robust numbers from the leading private sector bank.

IPO ANALYSIS: HDFC Asset Management Company Limited - Invest

Issue Details :

Issue opens  / closes on	25-07 / 27-07-2018
Issue size	2.45 Cr equity shares
Face Value	Rs 5
Price band	Rs 1095-1100
Business	Mutual Fund
Promoters	HDFC
Listings	Bse, Nse
BRLM	Kotak Mahindra Capital, Axis Capital, DSP Merrill Lynch, Citigroup Global Markets India, CLSA India, HDFC Bank, ICICI Securities, IIFL Holdings, JM Financial Limited, J.P. Morgan India, Morgan Stanley India and Nomura Financial Advisory and Securities
Registrar	Karvy

BUSINESS:

HDFC AMC  is the second largest asset management company and it is a joint venture of mortgage lender Housing Development Finance Corp. Ltd (HDFC) and Standard Life Investments Ltd.

HDFC AMC offers a large suite of savings and investment products across asset classes, which provide income and wealth creation opportunities to the customers. As of March 31, 2018, the company has  133 schemes that were classified into 27 equity-oriented schemes, 98 debt schemes. This diversified product mix provides the flexibility to operate successfully across various market cycles, cater to a wide range of customers from individuals to institutions, address market fluctuations, reduce concentration risk in a particular asset class and work with diverse sets of distribution partners which helps us expand the reach. The company also provide portfolio management and segregated account services, including discretionary, non-discretionary and advisory services, to high net worth individuals. family offices, domestic corporates, trusts, provident funds and domestic and global institutions. A

As of March 31, 2018, the equity-oriented AUM and non-equity-oriented AUM constituted Rs 1,49,713 Cr and ₹1,42,273 Cr, respectively, of our total AUM. The AUM has grown at a compounded annual growth rate  of 25.5% between March 31, 2013 and March 31, 2018. The proportion of equity-oriented AUM to total AUM was at 51.3%, which was higher than the industry average of 43.2%, as of March 31, 2018, according to CRISIL.

Top AMCs in India: ( Asset Under Management in crores)

1. ICICI Prudential Mutual Fund Rs 310561.
2. HDFC Mutual Fund Rs 307082.
3. Birla Sun Life Mutual Fund Rs 249507
4. Reliance Mutual Fund Rs 241096
5. SBI Mutual Fund Rs 233474.

OBJECTS OF THE OFFER :

The objects of the Offer are to achieve the benefits of listing the Equity Shares on the Stock Exchanges and to carry out the sale of Equity Shares offered for sale by the Promoter Selling Shareholders.

FINANCIALS :  ( Rs in Crores, except EPS)

	March 2018	March 2017	March 2016
Revenues	1867	1588	1494
Equity	105.27	25.16	25.16
Net profit	722	550	478
EPS	35	27	24

RISKS:

1. Adverse market fluctuations and/or adverse economic conditions could affect our business in many ways,including by reducing the value of AUM.
2. Accelerated customer redemptions and withdrawals will affect profitability.
3. Investment products underperform, the AUM could decline and adversely affect the revenues, reputation and brand.
4. Failure to continue with our existing distribution relationships or to secure new distribution relationships may have a material adverse effect on the competitiveness.

QUALITATIVE FACTORS :

1. Consistent market leadership position in the Indian mutual fund industry.  
2. Trusted brand and strong parentage.
3.  Strong investment performance supported by comprehensive investment philosophy and risk management.
4.  Superior and diversified product mix distributed through a multi-channel distribution network  Focus on individual customers and customer centric approach.
5. Experienced and stable management and investment teams.

VALUATION AND RECOMMENDATIONS :

The offer is made at 25 PE on its FY 19 earnings. The average industry PE is 26. HDFC AMC deserves a premium over its peers because of its pedigree. Promoter group will hold 83 % post offer. HDFC will hold 52.92 percent while Standard Life will hold 30.03 percent after selling shares.

According to CRISIL the industry’s AUM will grow from Rs 20.6 lac cr as of March 2018 to Rs 48.4lac cr by March 2023, clocking a robust CAGR of 19%. The mutual fund industry’s revenue is expected to grow at a CAGR of 25% to around Rs 184000 Cr by Fiscal 2019.

HDFC AMC is likely to maintain its CAGR in excess of 25%.

Invest for listing gains and as well for long term appreciation.