Friday, December 30, 2016

FORTHCOMING IPO : PSP PROJECTS LIMITED




ISSUE OPENS / CLOSE ON
--
FACE VALUE
Rs 10
ISSUE SIZE
1,00,80,000 equity shares

BUSINESS
Construction / Infra development
PROMOTERS
PRAHALADBHAI SHIV RAMBHAI PATEL AND SHILPABEN PATEL
LISTINGS

BRLMs
KARVY
REGISTRAR
KARVY
IPO GRADE
NA

Thursday, December 29, 2016

Orient Green Power : Red rays in exchanges

Orient Green Power hit the primary market in 2009 at a price of Rs 47. 

The stock, is now trading in single digit.

The IPO was lead managed by JM Financial Consultants Private Limited,Goldman Sachs (India) Securities Private Limited,UBS Securities India Private Limited,Axis Bank Limited. 

The IPO carried grade 4 awarded by CRISIL.

FirstChoiceIPO had advised stay away from the IPO.

Adani Power : where biggies can be terribly wrong.

Adani Power came IPO in Aug 2009 at a price of Rs 100 a piece.

 The IPO was managed by who is who of the investment banking. 

Names like DSP Merrill Lynch Ltd, Enam Securities Private Limited, IDFC - SSKI Limited, JM Financial Consultants Private Limited, Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, ICICI Securities Limited and SBI Capital Markets Limited, were associated with the IPO.

The stock is now trading around Rs 29, down 71%. The benchmark indices - Sensex,  during the same has gone up  by almost 10,000 points. 

FirstChoiceIPO had advised the investors to stay away from the IPO

Wednesday, December 28, 2016

Coming soon : NSE IPO

NSE has filed papers with SEBI for an IPO. The issue could be around Rs 10,000 cr, bigger than ICICI prudential Life Insurance offer. Among others, Goldman Sachs and Temasek Holdings of Singapore will be getting an opportunity to trim / off load their stake.

Know your RBI's new deputy governor

Viral V. Acharya of New York University Stern School of Business has been appointed as new deputy governor of Reserve of Bank of India. Prior to joining NYU Stern, Professor Acharya was a Professor of Finance and Academic Director of the Private Equity Institute at the London Business School, a Research Affiliate of the Center for Economic Policy Research and an Academic Advisor to the Bank of England. He was appointed Senior Houblon-Normal Research Fellow at the Bank of England to conduct research on efficiency of the inter-bank lending markets for the summer of 2008.
Professor Acharya's research interests are in the regulation of banks and financial institutions, corporate finance, credit risk and valuation of corporate debt, and asset pricing with a focus on the effects of liquidity risk. He has published articles in the Journal of Finance, Journal of Financial Economics, Review of Financial Studies, Journal of Business, Rand Journal of Economics, Journal of Financial Intermediation, Journal of Money, Credit and Banking, and Financial Analysts Journal.
Professor Acharya has received numerous awards and recognition for his research. He received the Best Paper Award in Corporate Finance from the Journal of Financial Economics in 2000, Best Paper Award in Equity Trading at the Western Finance Association Meetings in 2003, Outstanding Referee Award for the Review of Financial Studies in 2003, the inaugural Lawrence G. Goldberg Prize for the Best Ph.D. in Financial Intermediation, Best Paper Award in Asset Pricing from the Journal of Financial Economics in 2005, and an inaugural Rising Star in Finance Award in 2008.
Professor Acharya earned a Bachelor of Technology in Computer Science and Engineering from the Indian Institute of Technology, Mumbai, and a Ph.D. in Finance from New York University Stern School of Business.

Tree house education : Tree has fallen completely.

From an IPO price of Rs 153 in 2011, the stock is now trading at Rs 16. And there are no takers at that price too. 

While analysing the IPO in 2011, we concluded by saying the following:

At Rs 135-153, the stock is offered around 30 PE, on its estimated FY12 earnings, which is expensive.The company is into new kind of business which may evoke good response to the IPO. There are many grey areas particularly with regard to corporate governance. The company will have a post issue capital of Rs 34.85cr. Even to show an EPS of Rs 5 the company has to earn a PAT of Rs 17.50cr, in FY 12, which is a tall order. Like micro finance, education too politically sensitive segment. Any wrong doing will attract harsh measures from the government. 

The performance of any company on the eve of an IPO is to be taken with a pinch of salt. Since this is a concept stock there could be listing gains. 

The track records of the BRLMs are pathetic.

Global cues, short covering to keep the indices in green

Stock market are expected to open in a  firm note following global cues. DJIA, FTSE and Nasdaq closed in the green in yesterday's trading. After demonetization FIIs started selling in the cash market which resulted in indices losing over 5% in 2 weeks. On ther hand DIIs have aggressively buying in the same segment. In yesterday's trading although FIIs have net sold in cash market, however FIIs have net bought in index options ( Rs 1460 cr). DIIs have net bought for more than Rs 1500 cr in cash market.

There are lot of short positions in index stocks which are to covered before the expiry, that is tomorrow. Expect indices to close with a decent gains. 

Forthcoming IPO - Uber

Most awaited tech IPO may happen in 2017. Uber. The next Google. 

 About Uber :

Uber is a taxi service. Basically, it connects riders with independent car drivers. After you book a car using Uber’s mobile app, a driver rushes to your location. The app even shows you, in real-time, when your driver will arrive. And when you make it to your destination, there’s no need to pull out your wallet: your fare is automatically charged to your preferred payment method. 

Its quarterly net revenue grew from $8 million in Q4 2012, to what’s expected to be $1.5 billion in Q4 of 2016.

SEBI ISSUES PUBLIC INTEREST DISCLOSURE MESSAGE TO INVESTORS

It has been observed that SEBI, Bengaluru Local Office is regularly receiving complaints against activities carried on by QNET/ Vihaan Direct Selling India Pvt. Ltd. (VDSIL). 

In this regard, SEBI has noted that activities of QNET/VDSIL against which complaints are being received are akin to Multi Level Marketing (MLM) activities and therefore the same are being forwarded to State Government/ EOW, Karnataka having jurisdiction to implement provisions of Prize Chits and Money Circulation Schemes (Banning) Act, 1978 governing MLM activities in the nature of Money Circulation Schemes, for further actions as they deem fit. 

The general public are hereby informed that the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 and Rules made there under empower respective State Governments/ local police authorities to take action against MLM activities in the nature of Money Circulation Schemes carried out in their territorial jurisdiction. 

The victims/investors of QNET/VDSIL and also investors aggrieved by the MLM activities in the nature of money circulation schemes carried on by other entities are advised to file their complaints with respective state governments/ local police authorities having territorial jurisdiction for addressing their complaints. The message is issued in the interest of investing public.

Nvidia over takes Apple

Nvidia has overtaken Apple in terms of share price . Nvidia, in today's trade closed at $ 117.32 as against Apple's $ 117.26. However market cap Apple stands at $ 626.50B, while Nvidia's is at $ 64.33B. After market hours Nvidia has gone beyond $118. 

Tuesday, December 27, 2016

IPO ANALYSIS: PROLIFE INDUSTRIES LIMITED -AVOID

ISSUE DETAILS:

ISSUE OPENS / CLOSES ON
27-12 /30-12-2016
Promoters
MANINDER SINGH JOLLY, Mrs. ANUREET KAUR JOLLY
Business
Manufacturers of special and exclusive range of intermediates for dyes, pigments, pharmaceuticals, agrochemicals.

ISSUE SIZE
PUBLIC ISSUE OF 11,10,000 EQUITY SHARES
FACE VALUE
Rs 10
PRICE BAND
RS 38
LISTINGS
BSE SME
BRLMs
SWASTIKA INVESTSMART
REGISTRAR
Link Intime

AVOID THE IPO.

The following two risk factors are enough  to stay away from the IPO.

1. SEBI has filed prosecution against Tripex Overseas Limited & Others – Mr. Maninder Singh Jolly, promoter-Director of our Company. SEBI has filed prosecution against Tripex Overseas Limited & Others – Mr. Maninder Singh Jolly, promoter Director of our Company. Mr. Maninder Singh Jolly for violating regulation 3(d), 4(2) (f) and 4 (2) (r) of SEBI (PFUTP) Act in the securities of Tripex Overseas Limited under section 24(1) of SEBI Act in the court 9th Additional Chief Metropolitan Magistrate Bandra Mumbai on 22nd February, 2013. The said offence is punishable u/s. 24(1) read with section 27 of SEBI Act with imprisonment which may extend to 10 years or with fine which may extend to 25 crores or with both.

2. The Company has not made provision for Gratuity Payment as required under The Payment of Gratuity Act 1972. The company has not complied with AS-15- Employee Benefits as issued by ICAI.

Monday, December 26, 2016

Speciality restaurant : nothing special left.

Speciality Restaurant, the grade 4 IPO came public in May 2012 at Rs 150. It was lead managed by Kotak Mahindra Capital. In the last 4 and half a years the stock is depreciated by more than 50%, whereas bench mark indices have risen by 30 percent.

While analysing the IPO we had recommended to stay away, based on its fundamentals and business model.

IPO grade vs stock market performance - Just Dial

The company came IPO in 2013 with much funfair and promise.  The IPO was awarded grade 5 by CRISIL. (Maximum permissible). It was lead managed by Citigroup Global Markets and Morgan Stanley India.  

Among others FirstChoiceIPO had written the following in May 2013:

JUST DIAL IPO : QUESTIONABLE GRADE BY CRISIL

Just Dial IPO has been awarded grade 5 by CRISIL. Normally this grade is awarded to companies which are professionally managed, have impeccable track record and who have high business integrity & ethics.  However a closer scrutiny of the RHP of Just Dial tells a different story.   Among others, we found the following deficiencies / un-professionalism in conduct of the business:

               1. Improper keeping of records.                   

2. There were delay in a few cases in the deposit of undisputed statutory dues; and no payments were made to the Employees’ State Insurance Corporation, for which the company had been served show cause notice by ESIC.

3. The company had received FEMA violation notices.


4. There are outstanding criminal proceedings against the Company,  Managing Director and certain Directors and employees.


5.  Promoters have interests in entities which are in the same line of business as that of the Company.
 
One does not understand how CRISIL has awarded grade 5 for the IPO in spite of the above deficiencies / unprofessional conduct of the business.

The stock is trading around Rs 370 against the IPO price of Rs 530.

Narendra Modi's statement spooks stock market.


PM made a statement on Saturday that those who make money from securities market should contribute more to the exchequer. Due to demonetization the market had lost more than 5 percent in the last few weeks. The Saturday's statement further derailed the Sensex which lost 234 points in today's trading. This is despite Arun Jaitley clarifying that there are no proposal increase long term capital gain tax on stocks.

IPO stock review : H P L electric & Power has given shock

The company came public in the last week of Sept 2016 at Rs 202.

Sure to get electric shock if you invest in the IPO, this is what we wrote.


The company, post IPO will have equity of Rs 48.20 cr. For FY 17 the likely EPS is around Rs 8 on the expanded capital. The offer is made at 26 PE which is very expensive. More importantly, the money raised from the IPO will go towards reduction of debt / working capital requirements. There won’t be any capacity addition.

AVOID INVESTMENT IN THE IPO.

The stock is now trading at Rs 96.

Varun beverages : stock review post listings

Varun Beverages hit the primary market in Oct 2016. The IPO was priced in the range of Rs 440-445.

Within 2 months of listings the stock is trading around Rs 358, down by Rs 87.

This is what we wrote while analysing the IPO:

Bottles are empty - avoid the IPO.


The company is likely to report an EPS around Rs 9 for CY 16. The offer at the upper end made at 50 plus PE, which is expensive. The company has limited history of profitability.  Funds from the fresh issue of equity will be utilized towards repayment of debt / general corporate exps.

The company, virtually is offering empty bottles to the investors.

Other than high percentage of promoters holdings (70 plus percentage), there are are no positive factors in the offer.

A MUST AVOID IPO.

IPO ANALYSIS: LIBAS DESIGN LIMITED - AVOID


ISSUE DETAILS:

ISSUE OPENS / CLOSES ON
27-12 /30-12-2016
Promoters
Mrs. Reshma Riyaz Ganji, Mr. Riyaz Eqbal Ganji and Mr. Nishant Mitrasen Mahimtura
Business
Making of Customised clothes

ISSUE SIZE
20,00,000 equity shares / Rs 11.86 cr
FACE VALUE
Rs 10
PRICE BAND
Rs 58
LISTINGS
Nse- Emerge
BRLMs
Sarathi Capital
REGISTRAR
Bigshare

Note ban has adversely affected the corporate India.

Corporate India faces another challenge: the repayment of external commercial borrowings (ECBs). According to data from the finance ministry, $29 billion worth of ECBs are due for repayment during the current financial year. Besides, another $19.6 billion worth of ECBs are due for repayment in FY18. In all, $207 billion worth of foreign debt were up for repayment at the end of March 2016. Post note rupee has weakened and is likely to weaken further in 2017.

Saturday, December 24, 2016

Nvidia surges further

Nvidia stock gained another $ 2.67 and closed at $109.78 in today's trading. Its market cap stands at $ 59.44B. If listed on the Indian bourses the company would be the second most valued after TCS. 

Friday, December 23, 2016

The biggest tragedy of demonetization

 Credibility of RBI is at the lowest level since independence.

IPO ANALYSIS: VEERAM ORNAMENTS LIMITED -AVOID

ISSUE DETAILS:

ISSUE OPENS / CLOSES ON
23-12 /28-12-2016
Promoters
Rakshit Mahendra Shah and Mrs. Pinal Rakshit Shah

Business
Trader & Retailer of branded Jewellery & Ornaments.


ISSUE SIZE
PUBLIC ISSUE OF UPTO 11,37,000 EQUITY SHARES
FACE VALUE
RS 10
PRICE BAND
RS 45
LISTINGS
BSE SME
BRLMs
GRETEX CORPORATE
REGISTRAR
KARVY

Nvidia best performing stock in S&P 500

Nvidia has been by far the best performer among all S&P 500 companies in the last 52 weeks. In this period, NVDA stock has soared  more than 150%. The benchmark indices DJIA and NASDAQ have gained around 15% during the same period. 

The stock in today's trading closed at $107.11, after touching life time high of $108.87.

FirstChoiceIPO had recommended the stock when it was trading around$ 70, a few months back.

Barclays sold bad loans as good loans, faces securities fraud charges

The US Department of Justice is suing Barclays for alleged mortgage securities fraud.

It claims that Barclays misled investors about the quality of loans backing securities in the run-up to the financial crisis.

The banking giant is under investigation by US authorities.

In September the US asked Deutsche Bank for $14bn to settle a mortgage investigation.

The US Department of Justice said: "From 2005 to 2007, Barclays personnel repeatedly misrepresented the characteristics of the loans backing securities they sold to investors throughout the world, who incurred billions of dollars in losses as a result of the fraudulent scheme."

Thursday, December 22, 2016

Come on Sahara, in the interest of the nation please tell the truth.

Sahara should clarify on Rahul's bomb on Modi. The Sahara entries showed that on October 30, 2013, Narendra Modi was given ₹2.5 crore. On November 12, 2013, ₹5 crore was given. On November 27, 2013, ₹2.5 crore was given. On November 29, 2013, ₹5 crore was given. On December 6, 2013, ₹5 crore was given. On December 19, ₹5 crore was given.

On January 13, 2014, ₹5 crore was given. On January 28, 2014, ₹5 crore was given. On February 22, 2014, ₹5 crore was given.

Come on Sahara, in the interest of the nation, please tell the truth.

Coming soon : HoGo cars

Honda is in talks with Google to install the tech company’s self-driving technology in Honda vehicles. Honda says collaboration with the Google would let researchers learn about integration of sensors, software and computers.

It is appropriate name the car as HoGo.

Wednesday, December 21, 2016

Apple has big plans for India, seeks incentives.


Apple says that India's smartphone market is next year expected to overtake that of the US as the world's second-largest behind China.


Apple  is discussing with the Indian government the possibility of manufacturing its products in the country, as the company seeks to grow its sales and presence in the South Asian nation.


In a letter to the government  few weeks ago, the world's most valued company  has outlined its plans and sought financial incentives to move ahead. 

Monday, December 19, 2016

Why Mamata is shouting on demonetization

Bengal tea industry employs 17 lakh workers (in West Bengal and Assam). An estimated 60 per cent workers who are still without an account. West Bengal is in the top when it comes to unorganised and informal economy. Most of the people employed in these segment do not have bank accounts. Demonetization has hit the West Bengal hard than any other state in the country. There is merit in her shouting. After demonetization RBI governor has not met any CM other than Mamata. RBI too knows the gravity of situation in West Bengal.

Patanjali fined Rs 11 lakh for misleading ads

Most Patanjali products are outsourced. Not all of them are ayurvedic. In the name ayurveda and Swadeshi, Patanjali is exploiting the sentiments of the public. It is not possible to distribute herbal based products pan India. Take the case of honey. To distribute it on all India basis, one need to have millions of beehives. Where does Patanjali has such facility? Expect more exposes on Patanjali in the coming days.

Sunday, December 18, 2016

S Chand and Company files paper with SEBI

S Chand and Company, leading publishing house, has filed draft papers for initial public offer, including fresh issue worth Rs. 300 crore.

Its existing shareholders, including private equity fund Everstone and International Finance Corporation, would also be offloading little over 60 lakh shares through the OFS route.

FORTHCOMING IPO : Reliance Infra InvIT Fund

Reliance Infra InvIT Fund, a trust sponsored by Reliance Infrastructure has filed papers with Sebi for Rs 3,000-crore initial public offering.  

Saturday, December 17, 2016

Loop Capital recommends buying Nvidia

Loop Capital started coverage on shares of Nvidia Corp. in a research report released recently.

The firm issued a buy rating and a $109.00 target price on the computer hardware maker’s stock.

Several other analysts have also issued reports on the stock.

Citigroup Inc. set a $100.00 price target on shares of Nvidia Corp. and gave the stock a buy rating in a research report.

 Vetr upgraded shares of Nvidia Corp. from a sell rating to a hold rating and set a $92.00 price target and Needham & Company LLC upgraded shares  from a hold rating to a buy rating and set a $100.00 price target.

In Fridya's trading the stock closed at $100.21.

Friday, December 16, 2016

CLARIS TO SELL INJECTABLES TO BAXTER INTERNATIONAL INC

Claris Lifesciences has entered into a definitive agreement with US-based Baxter International Inc. to sell its wholly owned subsidiary Claris Injectables for approximately Rs 4,230 crore. 

Thursday, December 15, 2016

LAURUS IPO SHARES TO LIST ON 19-12-2016

Laurus IPO shares will be listed on the exchanges from 19-12-2016.

FORTHCOMING IPO: CSDL

Central Depository Services  Limited will filing the documents with SEBI shortly for an Initial Public Offer  of equity.

Thursday, December 8, 2016

Popular News This Week


 
Weekly News Digest
 

 
 
 
 
 
 
 
 
financialexpress.com ·


FirstChoiceIPO says:
According to our analysis that the 10% of the white money will not find its way to banks. High denomination India currency lost/held back in the following circumstances, though white, will return to banking system by Dec 31.

1. Currency with the businessmen and traders in the neighboring countries. Indian currency is freely accepted by traders in Nepal, Bhutan, Bangladesh, Srilanka,Thailand /other countries. 

2. Currency lost in earth quakes / Tsunamis / floods. There have been many in India in the last 2-3 decades.

3. Currency destroyed in accidents - Air / rail and road.

4. Worn out currency / drowned /buried money, for whatever reasons.

5. Currency with the coin collectors.

6. Currency with the NRIs, who are not able to exchange.

7. Currency with the foreign nationals who are holding it for fun / fancy.

It is estimated the above constitutes almost 10% of the total high denomination currency in circulation.

Tuesday, December 6, 2016

Nvidia release drivers optimized for slew of Oculus Touch games

In preparation for tomorrow's Oculus Touch motion controller launch, Nvidia has made available a new driver package, version 376.19, that is optimized for all 53 Oculus Rift games releasing alongside the new hardware.

NSE HOLIDAYS FOR 2017


1 January 26, 2017 Thursday Republic Day
2 February 24, 2017 Friday Mahashivratri
3 March 13, 2017 Monday Holi
4 April 04, 2017 Tuesday Ram Navami
5 April 14, 2017 Friday Dr.Baba Saheb Ambedkar Jayanti
6 May 01, 2017 Monday Maharashtra Day
7 June 26, 2017 Monday Id-Ul-Fitr (Ramzan ID)
8 August 15, 2017 Tuesday Independence Day
9 August 25, 2017 Friday Ganesh Chaturthi
10 October 02, 2017 Monday Mahatama Gandhi Jayanti
11 October 19, 2017 Thursday Diwali-Laxmi Pujan*
12 October 20, 2017 Friday Diwali-Balipratipada
13 December 25, 2017 Monday Christmas

The holidays falling on Saturday / Sunday are as follows:

1 April 09, 2017 Sunday Mahavir Jayanti
2 September 02, 2017 Saturday Bakri ID
3 September 30, 2017 Saturday Dasera
4 October 01, 2017 Sunday Moharram
5 November 04, 2017 Saturday Gurunanak Jayanti

LAURUS IPO OPENS TODAY- INVEST

Laurus  Lab IPO in the price band of Rs 426-428 opens for subscription today. Although the IPO has been aggressively priced there will be listing gains.

Await for detailed analysis.

Sunday, December 4, 2016

Demonetization analysis

 According to our analysis that the 10% of the white money will not find its way to banks. High denomination India currency lost/held back in the following circumstances, though white, will return to banking system by Dec 31.

1. Currency with the businessmen and traders in the neighboring countries. Indian currency is freely accepted by traders in Nepal, Bhutan, Bangladesh, Srilanka,Thailand /other countries. 


2. Currency lost in earth quakes / Tsunamis / floods. There have been many in India in the last 2-3 decades.


3. Currency destroyed in accidents - Air / rail and road.


4. Worn out currency / drowned /buried money, for whatever reasons.


5. Currency with the coin collectors.


6. Currency with the NRIs, who are not able to exchange.


7. Currency with the foreign nationals who are holding it for fun / fancy.


It is estimated the above constitutes almost 10% of the total high denomination currency in circulation.

Thursday, December 1, 2016

SHEELA FOAM IPO SUBSCRIBED OVER 5 TIMES

Sheela Foam IPO which closed for subscription has been subscribed by 5 times as per NSE data.