Sunday, December 30, 2012

IIFCL TAX FREE BONDS - INVEST

ISSUE OPENS /CLOSES ON
26-12-12 / 11-01-2013

ISSUE SIZE
RS 1,500 crores with an option to retain over subscription aggregating up to shelf limit of Rs. 9,215 crores
FACE VALUE
RS 1000
MINIMUM APPLICATION
RS 5000
INSTRUMENT
TAX FREE BONDS WITH 20 YEARS TENOR, SECURED AND NON CONVERTIBLE
COUPON RATE (RETAIL)
10 YEARS 7.69%, 15 YEARS 7.86%, 20 YEARS 7.90%
CREDIT RATINGS
AAA BY CARE, ICRA AND BWR

LEAD MANAGERS
SBI Capital Markets, A. K. Capital Services, Enam Securities, ICICI Securities and Kotak Mahindra Capital Company.
REGISTRAR
KARVY

Friday, December 28, 2012

BHARTI INFRATEL TANKS 10% ON LISTING

Bharti Infratel IPO shares which listed on the exchanges today has lost more than 10% in the early trade. As against the IPO price of Rs 220, the shares are now trading around Rs 196.

Thursday, December 27, 2012

Wednesday, December 26, 2012

IPO LISTING NEWS : PC JEWELLER TO LIST ON 27-12-12



PC Jeweller IPO will be listed on the exchanges on 27-12-12. The company offered 4,51,33,500 equity shares of Rs 10 FV in the price band of Rs 125-135, with a discount of Rs 5 to retail investors.  Since the issue was aggressively priced we had advised the investors to stay away from the IPO.

RIL BUYS BACK SHARES WORTH RS 3359CR

RIL has bought back 4,62,26,280 shares worth Rs 3359 Cr as on 24-12-12. The share buy back programme amounting to Rs 10,440cr, at Rs 870 or below ends on 19 Jan 2013.

CARE IPO TO LIST TODAY

CARE IPO shares will be listed in the exchanges today. IPO shares (FVRs10) has been allotted at a price of Rs 750. The shares expected to be listed around Rs 900.

Monday, December 24, 2012

IPO ANALYSIS: ECO FRIENDLY FOOD PROCESSING PARK LIMITED -AVOID





ISSUE OPENS / CLOSES ON

27-12 / 31-12

ISSUE SIZE
PUBLIC   ISSUE OF 30, 06,000   EQUITY SHARES OF RS. 10/- FOR CASH AT A PRICE OF RS. 25/- PER SHARE, AGGREGATING TO RS. 751.50 LACS

PRICE / FV

RS 25 / RS 10

PROMOTERS
BRIJ KISHORE SABHARWAL & AMAR SINGH BISHT

BUSINESS

Company is into agricultural operations, wherein it cultivates wheat, paddy, sugar cane, fruits, vegetables and flowers.  Company is also engaged in the operations of wood plantation. 

OBJECTS OF THE ISSUE

I Development of Farm land for transition to Organic Farming.  
    
II Construction of storage sheds.
    
III Solar Fencing.
    
IV  Brand Building and General Corporate purposes

LISTING

BSE-SME


GRADING



N A

BRLM
GUINESS MERCHANT BANKERS

REGISTRAR
CAMEO CORPORATE SERVICES LTD.

Sunday, December 23, 2012

MARUTI TO SET UP ITS SECOND PLANT IN GUJARAT

Maruti Suzuki has acquired additional 600 acres of land in Gujarat and has started spadework to set up its second facility, in addition to its existing plan to invest Rs 4,000 crore for setting up a plant in the state. The company is likely to report a growth of  8% in its revenue for FY13, despite severe competition and labour problems it faced in the fiscal. In the last one year the stock has appreciated more than 56%, where as bench mark indices NIFTY and SENSEX have appreciated around 20%.

Friday, December 21, 2012

SCOTTS GARMENTS IPO IN JAN 2013

Bangalore based Scotts Garment's IPO may happen in Jan 2013. Recently CanBank VC Fund picked up 6% stake in the company for Rs 20cr. The company is planning to raise Rs 155 crore through IPO to part finance the setting up of new units for trouser manufacturing at Doddaballapur in Karnataka, knitting and fabric processing unit at Kagal in Kolhapur district of Maharashtra.

Thursday, December 20, 2012

FORTHCOMING IPO: BHARAT BUSINESS CHANNEL LIMITED





NAME OF THE COMPANY

BHARAT BUSINESS CHANNEL LIMITED 

PROMOTERS
Saurabh Pradipkumar Dhoot, Synergy Appliances Private Limited, Solitaire Appliances Private Limited, Greenfield Appliances Private Limited and Platinum Appliances

ISSUE SIZE

RS 700CR

BRLM
Enam Securities, UBS Securities India  
IDBI Capital Market Services SBI Capital Markets  and  YES Bank

REGISTRAR

Link Intime India


FORTHCOMING IPO : LOHA ISPAAT LIMITED





NAME OF THE COMPANY

LOHA ISPAAT LIMITED

PROMOTERS

RAJESH PODDAR

ISSUE SIZE
30,241,320 EQUITY SHARES OF A FACE VALUE RS 10 .

BRLM
ARYAMAN FINANCIAL SERVICES LIMITED

REGISTRAR
BIGSHARE SERVICES PRIVATE LIMITED

CHINA'S GROWTH FORECAST RAISED

World Bank has raised the growth forecast for China, after the country had taken stimulus measures and approved many infrastructure projects. These measures are likely to boost the growth substantially.

World bank now expects China's economy to grow by 8.4% in 2013, up from its earlier projection of 8.1%.

Wednesday, December 19, 2012

HERO, INFY AND TCS WILL SIZZLE TOMORROW TOO.


MANY NIFTY STOCKS HIT 52 WEEK HIGH

Many NIFTY stocks have hit the 52 week high today. They are - Sun Pharma, Asian Paints, Bajaj Auto, IDFC, M&M and ICICI Bank.

BHARAT BUSINESS CHANNEL PLANS RS 700CR IPO



Bharat Business Channels, which operates direct-to-home business services under the Videocon d2H brand, is planning to raise up to Rs 700 crore via initial public offerings.

TCS HAS BEEN NAMED AS LEADER IN I T ORGANAISATION REDESIGN CONSULTANCIES - FORRESTER RESEARCH

TCS, country's biggest I T services company has been named as a leader in I T Organaisation Redesign Consultancies, Q4 2012, by Forrester Research an independent research firm.

BAJAJ AUTO Q3 RESULTS ON 16-01-2013

Two wheeler major Bajaj Auto will announce its Q3 results for FY13 on 16-01-2013.

Tuesday, December 18, 2012

SUZLON AND GUJFLURO EXCLUDED FROM FUTURES AND OPTIONS

With effect from 01-03-13 Suzlon and GujFluro scrips will be  excluded from futures and options contacts.


NIFTY TO CROSS 6000 MARK THIS WEEK. TCS,INFY AND HERO WILL SIZZLE TOMORROW

NIFTY gained 39 points to close at 5897. This is despite RBI maintaining status quo on rates. Had there been rate cuts the NIFTY would have crossed 6000 level today itself. Today's rally was led Metal, Infra and Bank stocks. BHEL, Bhartiairtel and Tata Steel gained 4% each. FIIs continue to be net buyers in cash market. Today they net bought for Rs 922cr. Maruti and Bajaj Auto stocks lost momentum and ended in negative territory. Although RBI did not cut rates it indicated it will take steps to spur growth in the economy.   Hero MotoCorp, INFY and TCS will sizzle tomorrow.

BHARTI INFRATEL FIXES IPO PRICE

Bharti Infratel IPO's has been fixed at Rs 210 for retail investors. For other category of investors the price has been fixed at Rs 220.

Monday, December 17, 2012

IPO LISTING NEWS : CARE IS LIKELY TO LIST ON 26-12-12

CARE IPO which received tremendous response from all category of investors is likely to list next week. As per our estimate the IPO is likely to list around Rs 900 as against the issue price of  Rs 750.

Sunday, December 16, 2012

ADVANCE TAX COLLECTION UP IN THIRD QUARTER

Advance tax collection for the third quarter  from the  top 100 companies from Mumbai has shown 15 per cent growth year-on-year backed by higher payouts by the banking and financial sector.

The growth is led by the government insurance company Life Insurance Corporation, which paid 10 per cent more at Rs 1,297 crore compared to Rs 1,166 crore in the same period a year ago.

State Bank of India has paid advance tax  of Rs quarter 1,701 crore, as against Rs 1,730 crore in the same period last year.

HDFC has paid Rs 560 crore against Rs 475 crore in the year ago period.

Friday, December 14, 2012

BHARTI INFRATEL IPO FAILS RETAIL TEST

Bharti Infratel IPO which closed today got less than 20% subscription in the retail category. As against 6.61 crore shares reserved for the category the issue got retail subscription to the extent of 1.20cr shares which works out to less than 20%. First Choice IPO while analyzing the IPO had indicated that this issue will fail in retail test. IPOs which fails to get good response from retail category are likely to list at heavy discount to issue price, unless manipulated.

MARKETS TO BOUNCE BACK TODAY

Benchmark indices Sensex lost 100 odd points yesterday due to short selling and inflation worries. FIIs have been aggressively buying in the last few trading sessions and yesterday they have net bought in excess of Rs 1000cr.  Markets across globe closed slightly lower yesterday. Markets are expected to bounce back today led by Infra, Cement, FMCG, Metal and I T stocks.

BHARTI INFRATEL IPO CLOSES TODAY : AVOID

Bharti Infratel IPO in the price band of Rs 210-240 with Rs 10 discount to retail investors closes today. Although the issue has been sailed through, largely due to QIBs support, the retail interest has been very luke warm. The IPO has been irrationally priced. 

AVOID THE IPO. Post listing it will settle down around Rs 120.

ICICI BANK OPENS 101 RURAL BRANCHES

ICICI Bank, the largest private sector lender in the country, has opened 101 ‘ Gramin’ branches, in six  states, yesterday, as part of its financial inclusion plan.

These ‘Gramin’ branches will remain open for four hours a day, six days a week, offering basic banking services such as a savings bank account, fixed and recurring deposits, remittances, Kisan Credit Cards and tractor loans. 

ADAG AND WANDA FORM JV

Anil Ambani led ADAG and China’s leading developer, Wanda, has formed an JV to do real estate projects in the country. This will cover integrated township projects in India, including commercial buildings and residential apartments, hotels and retail space. This is the first time a Chinese real estate company is investing in India. Among the first real estate projects of the JV will be in Navi Mumbai and Hyderabad. Rcom owns a large chunk of land in Navi Mumbai. Rcom closed at Rs 74, down 4% in yesterday's trading.

Thursday, December 13, 2012

QIBs BAIL OUT BHARTI INFRATEL IPO

Bharti Infratel IPO just managed to get one time subscription till today. QIBs have bid for almost 3 times the shares reserved for the category. Domestic Financial Institutions, Banks and Mutual Funds have not shown much interest. They have bid only  for 78 lac shares. In the retail category the IPO has received just 6 % subscription. The issue closes tomorrow for all, except QIBs portion for which today was the last day. The IPO is unlikely to get full subscription in the retail category.

ITC IS SECOND MOST VALUED COMPANY

Diversified business conglomerate ITC has beaten the I T major TCS to occupy the second slot as the most valued company. Its market cap as on yesterday stood at Rs 2.41 lac Cr. RIL occupies the number one position with a market cap of Rs 2.69lac Cr. TCS at third position has market cap of Rs 2.40 lac Cr.

BHARTI INFRATEL IPO MAY FAIL RETAIL TEST

Bharti Infratel IPO which closes tomorrow has received 35% subscription so far. Retail subscription so far is only to the extent of 3%. Considering the size of the issue the subscription in retail category is disappointing. The IPO is unlikely to get one time subscription from retail category.  We feel the issue has been irrationally priced and it will settle down around Rs 120, post listing.  STAY AWAY FROM THE IPO.

Wednesday, December 12, 2012

NTPC OFS ON 15-01-13.

NTPC's 9.5 percent stake sale may happen on 15-01-13.

The government proposes to divest 9.5 per cent stake in NTPC via Offer for Sale (auction) route.

NTPC shares closed at Rs 154 on the exchanges yesterday.

The government at present holds 84.5 per cent stake, post-disinvestment, the stake would come down to 75 per cent.

NTPC became public with an initial public offer in 2004. Thereafter in 2009, the government further diluted its stake in the company through a Follow-on Public Offer.

PIL alleges 'the very foundation of the Bharti Infratel IPO is fraudulent'



According to a report published in Financial Express, the Delhi High Court declined to grant a stay on the initial public offering of Bharti Infratel on a PIL alleging that "the very foundation of this IPO is fraudulent."


The court, however, asked SEBI to produce the records relating to its approval to the company for launching the IPO to see whether the company had complied with SEBI regulations while seeking the approval or not.
 
Honorable judges however said that they are not issuing notice; we are not saying anything and not passing any order. We will see the records to satisfy ourselves.

BHARTI INFRATEL IPO : RETAIL INVESTORS STAY AWAY ON FIRST DAY

Bharti Infratel IPO which has been irrationally priced (price band Rs 210-240) has received very lukewarm response from the retail investors category. The issue has got subscription of just one percent on day one which is very disappointing considering the size of the IPO. Overall the issue has received 15 % subscription thanks to QIBs support.

First Choice IPO advises the investors to stay away from the issue. Post listing the the stock will settle down around Rs 120, one can look at the stock at that time.

PC JEWELER IPO CLOSES TODAY, MAY SAIL THROUGH

PC Jeweller IPO which has received 44% subscription so far will close today. The issue is likely to sail through since retail investors put their money on the last day.  WE advise investors to stay away from the IPO.

CARE IPO SUBSCRIBED BY 41 TIMES.

CARE IPO received tremendous subscription on the last day. The IPO overall subscribed 41 times. QIB portion was subscribed by 46 times, non institutional investors 111 times and retail investors 6 times. The scrip is likely to debut around Rs 900 in the exchanges.

Tuesday, December 11, 2012

NMDC FLOOR PRICE @RS 147.

NMDC has fixed the OFS floor price at Rs 147. The stock closed at Rs 159 today in the exchanges. OFS opens tomorrow.

PC JEWELLER IPO GETS TEPID RESPONSE ON DAY ONE

PC Jeweller IPO received just 6% subscription on day one. The IPO in the price band of Rs 125-135 closes tomorrow. The issue has been aggressively priced. Avoid subscription.

BHARTI INFRATEL IPO OPENS TODAY

Bharti Infratel IPO in the price band of Rs 210-240 opens for subscription today. The IPO has been irrationally priced. After listing  the stock will settle down around Rs 100. One can look at the stock then.

AVOID SUBSCRIPTION.

Monday, December 10, 2012

NMDC OFS PRICE BAND @ RS 145-150 - INVEST

The government has fixed the price band of Rs 145-150 per share, for its stake sale of 10 per cent in NMDC. This will  fetch government around Rs 5,900 crore.

The price band is at a discount of 3 to 6 per cent at today's closing price of  Rs 155.The offer will open on 12-12-12.

CARE IPO FULLY SUBSCRIBED

CARE IPO has been fully subscribed on the penultimate day. The IPO in the price band of Rs 700-750 closes tomorrow.

Sunday, December 9, 2012

IPO ANALYSIS: BHARTI INFRATEL LIMITED – STILL ON SHAKY GROUND – AVOID.


Bharti Infratel IPO carries grade 4 awarded by CRISIL. The performance grade 4 IPOs from Jan 2010 till date are furnished in the table below:


NAME OF THE COMPANY
IPO
YEAR / MONTH

GRADE 4  AWARDED BY

IPO PRICE (RS)

CMP
(RS)

ILFS TRANSPORT

2010 MARCH

CARE + FITCH

258

213

PERSISTENT
2010 APRIL
CRISIL
310
490
SJVN
2010
MAY
CRISIL
26
20
HINDUSTAN MEDIA VENTURES
 2010
JUNE
CRISIL
166
140
SKS MICRO
2010 AUG
CARE
985
170
BAJAJ CORP
2010 AUG
CRISIL
660
1110@
GUJ PIPAV
2010
SEP
CRISIL
46
50
EROS INTL
2010 OCT
CARE
175
222
ORIENT GREEN
2010
OCT
CRISIL
47
11
ASHOKA BUILDCON
2010
OCT
CRISIL
324
211
A2Z MAINTANCE
2010
DEC
CARE
400
62
PTC INDIA FINANCIALS
2011
MARCH
CARE +ICRA+CRISIL
28
19
MUTHOOT FINANCE
2011
MAY
CARE+CRISIL
175
200
GALAXY SURFOCANTS
2011
JUNE
CRISIL
ISSUE WITHDRAWN

T D POWER
2011 SEP
CARE
256
240

NBCC
2012
APRIL
CARE
106
163
MT EDUCARE
2012
APRIL
CRISIL
80
128
SAMVARDHANA MOTHERSON SUMI FINANCE
2012
MAY
ICRA
ISSUE WITHDRAWN

SPECIALITY RESTAURANTS
2012
MAY
CRISIL
150
177
@ Adjusted to split.

Out of the 19 IPOs which were graded 4 by rating agencies only 8 IPOs are trading above the issue price. Two IPOs were withdrawn due to poor investors’ response. Nine IPOs are trading below the issue price causing huge loss to the investors.


BHARTI INFRATEL IPO DETAILS.


ISSUE OPENS / CLOSES ON

11-12-12 / 14-12-12

ISSUE SIZE

FRESH ISSUE OF14.62CR EQUITY SHARES AND OFFER FOR SALE OF 4.27CR SHARES OF RS 10 FV. ( Rs 4533CR AT THE UPPER BAND / Rs 3967CR AT THE LOWER BAND)

PRICE BAND

Rs 210-240. A discount of Rs 10 to the Issue Price is being offered to Retail Individual Bidders. Retail Discount will not exceed 5% of the Issue Price.
IPO GRADE
4 BY CRISIL

BRLMs
DSP Merrill Lynch, J. P. Morgan, Standard Chartered Securities,UBS Securities, Barclays Securities,Deutsche Equities, Enam Securities, HSBC Securities and Kotak Mahindra Capital Company


REGISTRARS
KARVY


Bharti Infratel (BI) is a provider of tower and related infrastructure and on a consolidated basis. BI is one of the largest tower infrastructure providers in the country based on the number of towers that BI owns and operates. The number of towers owned or operated by Indus, that are represented by Bharti Infratel’s 42% equity interest in Indus.

The  business  of Bharti  Infratel  and  Indus  is  to  acquire,  build,  own  and  operate  tower  and  related  infrastructure. BI and Indus currently provide access to their towers primarily to wireless telecommunications service providers on a shared basis, under long-term contracts. 

Bharti  Infratel’s  and  Indus’  three  largest  customers  are  Bharti  Airtel  (together  with  Bharti Hexacom),  Vodafone  India  and  Idea  Cellular,  which  are  the  three  leading  wireless  telecommunications  service providers in the country by wireless revenue. BI has nationwide presence with operations in all 22 telecommunications Circles in the country. As of 30-09-12 Bharti  Infratel owns and  operated 34,220  towers  in  11  telecommunications Circles while  Indus  operated  110,561  towers  in  15 telecommunications Circles.


OBJECTS OF THE ISSUE

The Company proposes to utilize the funds raised from fresh issue of equity towards funding:

(a)  Installation of 4,813 new towers;
(b)  Up gradation and replacement on existing towers; 
(c)  Green initiatives at tower sites; and 
(d)  General corporate purposes.


FINANCIALS: RS IN CRORES


31-03-11
31-03-12
30-09-12

TOTAL INCOME

8626

9597

5091
NET PROFIT AFTER TAX

  551

  751

  460

EPS (Rs)

 2.05

 2.51

 3.80



MATTERS OF CONCERN:

1. Increasing  competition  in  the  tower  industry  and  increasing  tariff  pressures  on  Bharti  Infratel’s  and Indus’ customers may create pricing pressures that may adversely affect the business.

2. Company’s operations may be affected if various regulatory measures with respect  to  tower  sharing  among  wireless  telecommunications  service  providers  and  certain  other telecommunications related matters are implemented. 

3. Merger, de-merger and subsidiary accounting carried out by the company is really a maze. It is difficult to decipher.

4. The  average  cost  of  acquisition  of Equity Shares  of  the Company  by  its Promoter  is  Rs 0.0003  per Equity.


VALUATION AND RECOMMENDATIONS

Bharti Infratel is still on shaky ground despite having steady structured contracts with its customers.  The sector has high growth potential.  However the offer is very unattractive.  At the upper end the offer is made around 50 PE and at 42PE at the lower end on its FY 13 earnings. The fair valuation would have been around Rs 100.  The price band reflects the immaturity of the BRLMs and the greed of the promoters. The company post IPO will have equity of Rs 1888cr. With EPS of around Rs 4 it would find very difficult to service such large equity.  There are symptoms this IPO may go Reliance Power way as for as listing is concerned. We strongly advise the investors to stay away from the IPO.