Will West repeat Japan's lost decade?:: Standard Chartered Research/ Business Line,

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For the West, the main message is to avoid deflation and boost demand. 

Japan's economic bubble burst 20 years ago. Since then the country suffered weak growth and what became known as “the lost decade”. In recent weeks, a dominant question has been whether the US and European economies are to suffer the same fate? If anything, the immediate challenges in the West now are worse than they were in Japan when its bubble burst. The West faces little growth and low interest rates for the next few years. But then the West can rebound as, unlike Japan, it is more likely to face up to the need for supply-side reforms aimed at boosting productivity. For the West, the main message is to avoid deflation and boost demand.

An ominous lesson for the West is that when bubbles burst economic pain cannot be avoided. Whereas the West had its economic and financial crisis at the same time, Japan's was spread over eight years. Japan's bubble burst at the end of 1989. Yet from 1990 to 1997, employment rose, as firms expected growth to rebound and they were reluctant to lose skilled staff. Then, Japan had its financial crisis in the autumn of 1998 when Yamaichi Securities collapsed, then the biggest corporate failure in history.

Japan was the world's second-largest economy and enjoyed high living standards. That lessened the sense of urgency for Japan to take radical action. Japan's lack of political debate didn't help. Socially it could handle slow growth, as income disparities were not huge, in contrast to the US and some parts of Europe now.

Japan's debt problem was different from the West. Japan ran current-account surpluses and was able to fund its debt easily at home. The US or the periphery of Europe does not have that luxury, and they have had to face up to problems sooner than Japan ever did. Japanese people were large savers when its bubble burst. In contrast, the troubled countries in the West have high personal debt.

Deflation was Japan's biggest problem. Its stock market is still a fraction of its 1989 peak. Land prices peaked in 1991 and took until 2006 to stop falling, and this added to collateral and bad-loan problems for Japan's banks. As consumer prices fell, people delayed spending. Japan's industry “hollowed out”, moving production to lower-cost centres elsewhere, feeding downward pressure on costs and margins at home. The same is happening in the West now. This reinforces the need for growth, to avoid a self-feeding downward spiral and encouraging firms to invest. The deregulation issue is one big difference. Japan could never come to terms fully with the need for supply-side reform and structural change. Parts of the periphery of Europe show similarities now. Although the West cannot avoid weak demand in coming years, there is reason to think the US industry will bounce back.

POLICY URGENCY IS KEY

Japan faced demand- and supply-side problems. It focused largely on the demand side, but not well enough, and ignored for a long time supply-side solutions. In monetary policy, the lessons from Japan are acting aggressively and in a shorter period than the Bank of Japan.

The fiscal lesson from Japan is more complex. Most worrying for the West now is that just ahead of its financial collapse Japan had embarked upon tough fiscal tightening in 1997. From the bursting of the bubble in December 1989 to 1997, Japan had fiscal boosts. All worked. But 1997 marked a turning point. Fiscal policy was tightened. The consumption tax was hiked and public spending squeezed. The economy suffered, and the financial sector imploded. One lesson was that premature fiscal tightening is not good in an economy that needs demand.

The other lesson has been seen over the subsequent twenty years: avoid weak growth, as it has continued to push the Japanese government debt up to worrying levels now. In the West now, there is much talk of inflating debt away. That proved hard in Japan. Its population was ageing and had savings so there was no mandate to inflate. Also for Japan, the yen proved resilient and this reinforced deflationary pressures. A lesson for the West now is that a strong currency policy does not help and that inflating debt away is a hard policy to implement.

The West is set to face a long hard slog. Thus, the lesson for the West from Japan is the need for more quantitative easing, no premature fiscal tightening and further economic deregulation to encourage investment and growth. The main message is to avoid deflation at all costs.

(The author is Chief Economist and Group Head of Global Research at Standard Chartered Bank.)

Wipro – Favourable risk-reward:: RBS,

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We believe risk-reward balance is favourable at 14-15x PE for FY12/13F, due to: 1)
the 30% stock correction ytd; 2) ongoing restructuring starting to yield some
benefits (our checks indicate large deal activities have improved materially); and
3) the Street's low earnings expectation. We upgrade to Buy


Ongoing restructuring to position Wipro better with diversified revenue base
Our channel checks indicate that Wipro’s ongoing management and sales restructuring
(begun in 4QFY11) has started yielding benefits, including increasing large deal activity. We
expect Wipro to regain its lost competitive edge in the medium to long term, with the
restructuring resulting in coordinated efforts to mine large accounts. While revenue growth is
likely to lag peers in the near term, we believe Wipro’s well-diversified business (across
verticals/services/geographies) should minimise revenue-growth risks in the near to medium
term and could even present positive surprises over the medium-to-long term, in our view.
Wipro not losing sight of margin discipline
Our checks indicate that while trying to regain its lost competitive edge, Wipro is not losing
sight of margin discipline. In our view, company-specific risks to margins are lower in FY13
given the restructuring, which is likely to improve its client mining capability, is nearing
completion. In the near term, we expect low margins given a wage hike effective June 2011,
and additional investment in sales and marketing. Wipro now expects sub-20% attrition in IT
services in 2Q12 versus 22.6% (voluntary TTM) in 1Q12.
Current valuation offers favourable risk-reward; upgrade to Buy
Given stronger macro headwinds, we cut our estimates for US dollar IT Services revenue by
2%/8%/7% and Indian rupee EPS by 2%/6%/7% for FY12/FY13/FY14. We believe the riskreward
balance is favourable at 14-15x PE for FY12/13F due to: 1) the 30% stock correction
ytd; 2) the ongoing restructuring starting to yield some benefits; and 3) the Street's low
earnings expectations. Hence, we upgrade to Buy. Our revised target price of Rs400 (down
from Rs438) implies FY13F PE of 16x, which is a 10% discount (down from 15% earlier to
factor in decreasing earnings risk) to our sector benchmark, Infosys. Even at current
valuations, Wipro already trades below the -1x standard deviation of its five to six years’
mean one-year forward PE and PB multiples, thus suggesting a good entry point, in our view

Satyam Computer – Improved operational control:: RBS,

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We believe Satyam's improved operational execution in past few quarters and
continuing high operating leverage going forward should help it withstand the
recently increased macro headwinds. Despite our FY13/14F EPS cuts of 4%, we
believe EV/EBITDA-based valuations are reasonable. Reiterate Buy


Better poised to withstand macro headwinds
With challenges of client attrition, financial restatements, and the right-sizing of an excess
employee base behind the company, and current contract renewal rates with existing clients
above 95%, we believe that Satyam is now better poised to withstand the increased macro
headwinds. Satyam is now participating in large deals above TCV of US$25m-50m with
accelerated large deal activity in last couple of quarters. Despite the high revenue
contribution from discretionary services (where growth challenges are high in times of macro
turmoil), Satyam’s diversified revenue base across verticals and geographies should limit the
revenue growth challenges going forward, in our opinion.
High operating leverage to continue
Despite the increased macro headwinds, we believe Satyam’s operating leverage should
mitigate any margin pressure, given its headroom in various margin levers continues to
remain high including: 1) one of the lowest compositions of employees with less than three
years’ experience and an increasing pool of fresh college hires, 2) offshoring and 3) SG&A
leverage. Despite Satyam’s low revenue base versus large-cap peers, we do not anticipate
any material billing rate pressure given Satyam’s much lower rates. On the contrary, we
expect relatively higher improvement post macro stabilisation.
Reiterate Buy
Given the current elevated macro headwinds, we cut our USD revenue estimates by 5% and
INR EPS by 4% for FY13/FY14. We continue to value Satyam on EV/EBITDA basis given
the high volatility below the EBITDA line from other income, forex gain/loss and tax. We cut
our target price to Rs86 (from Rs94) which implies an FY13F EV/EBITDA of 7.6x, down from
the earlier 8.2x, to maintain the discount of around 35-40% to our industry benchmark
Infosys and around 20% to HCL Tech (to factor in lower revenue and EBITDA margins than
Infosys and HCL).

Polaris Software Lab – In the deep value zone: RBS,

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Given Polaris's focus on the BFSI vertical, where stress points are emerging, we
lower our FY12/13F US$ revenues 4%/10% and EPS 4%/11%. Its currently trades
at FY13F book value, (it has troughed at these levels several occasions), an
attractive entry point, in our view. Polaris is our top mid-cap idea


Polaris, a BFSI-focused player, could see above-average impact from current crisis
The BFSI sector is again emerging as a hotspot in the ongoing financial crisis, with multiple
issues, such as slowing growth in developed economies, the sovereign debt crisis in Europe
entailing write-offs on bond assets, and a major potential lawsuit on mortgage assets.
Nevertheless, Polaris’s client profile has minimal representation in Continental Europe,
where only one client from that geography figures in its Top 10 list (even here, it primarily
works in the US for that client, according to management).
We reduce our FY12/13 revenue forecasts 4-10% and our EPS forecasts 4-11%
IT/Communication spending by large US financial institutions has held up well so far (up
8.9% yoy in Jun-11 qtr). In our recent checks, management highlighted that client activity
remains normal – projects are ramping up as scheduled and there are no delays or
cancellations. However, given a weak macro environment, we expect the client spending
pattern to be cautious in the near term. Deal flow in the product segment (23% of Polaris’s
revenues) could also be subdued, given reliance on discretionary budgets. Consequently, we
cut our FY12/13F US$ revenue 4%/10%. We expect Polaris to keep salary hikes in check in
FY13, restricting margin downside. This translates into 4%/11% cuts in our FY12/13F EPS.
Valuations are trading near historical troughs, presenting an attractive entry point
On our revised forecasts, the stock trades at one-year forward valuations of 6.5 PE and 1.1x
P/BV. It has troughed several times at this level on P/B; hence we believe valuations offer
downside support. We value the stock at the average for mid-cap peers on Bloomberg
consensus (for Mindtree KPIT Cummins and Infotech Enterprises) and our estimates (for
NIIT Tech and Hexaware). This implies 8.6x FY13F EPS, a 52% discount to our target
multiple for our sector benchmark, Infosys. We believe the stock’s correction has more than
factored in our revised base case. In the long term, we believe there is a case for the stock’s
re-rating to the higher end of the mid-cap peer group, given a growing contribution of the
products business to operating profit. Polaris is our top mid-cap Buy idea

NIIT Technologies – Relatively well positioned:: RBS,

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We believe NIIT Tech's medium-term growth is secured by its recent deal wins,
Proyecta acquisition and senior hires. We lower our FY12F/13F US$ revenues by
1%/2% and EPS by 4%/6%, and view a 7.3% CQGR in revenues over 1Q-4Q12 as a
catalyst for share price performance. Maintain Buy; TP lowered to Rs263


Revenue visibility driven by large deals and Proyecta acquisition
We do not believe NIIT Tech, with its key focus on economically sensitive verticals, BFSI
(more focused on Insurance) and Travel & Transport, will be immune to a worsening macro
environment. However, we see incremental revenue growth from the recently signed Morris
Communications and EuroStar deals (we peg the cumulate TCV at US$115m-120m). In
addition, we estimate the recent Proyecta acquisition (US$9.5m annualised run rate) will
provide some cushion against lower visibility on IT budgets over 2HFY12. Collectively, we
estimate these will contribute over US$20m in FY12 (7% of FY11) revenues. Further, we
expect minimal impact on the GIS business, which is largely in the domestic market.
Modest cut to revenues and earnings relative to the sector
NIIT Tech has been strengthening its senior leadership, particularly in the sales organisation,
over the past few months. The company is also now looking to diversify beyond its traditional
verticals into Media and Healthcare. We believe these changes should have a positive
bearing on its account mining as well as more participation in bidding for large deals, key
reasons for slower-than-industry growth in the past. Hence, we cut our FY12F/13F US$
revenues modestly by 1%/2% and EPS by 4%/6%.
Valuations do not fully reflect improving fundamentals; reiterate Buy
On our revised forecasts, the stock trades at one-year forward valuations of 6.6x P/E and
1.4x P/BV. It has outperformed the BSE IT Index by 35% ytd, in line with our thesis that
improving fundamentals should lead to a rerating. We value the stock in line with a set of
similar-sized peer group stocks, which yields a target price of Rs263 (at a target FY13 P/E
multiple of 8.1x, in line with the mean valuation of similar-sized peers). We believe more large
deal wins as well as client mining improvement should drive convergence of growth rates and
valuations with peers. We believe large deal ramp-ups and the Proyecta acquisition should
drive a 7.3% revenue CQGR over 1Q12-4Q12, driving stock price performance.

Lag indicators are not positive either for India:: Business Line,

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Setting aside a more volatile IIP (Index of Industrial Production), which touched a low of 3.3 per cent growth in July 2011, a dissection of the GDP (Gross Domestic Product) numbers for April-June 2011 shows that the economy is indeed slowing.

First, the overall GDP growth at constant prices came in at 7.7 per cent, a tad lower than the growth of January-March 2011 and much lower than the 8.8 per cent growth achieved in the same period a year ago. Going by the industry-wise classification of GDP, manufacturing growth has clearly slackened. But two sectors in which growth may still hold up are agriculture and services.

RURAL DEMAND MAY HELP

The assumption that the services sector might continue to support growth is refuted going by the leads in the PMI survey. Also, in the first quarter, service sectors such as banking and finance, telecom, mid-tier software, realty and construction are a majority among the CNX-500 companies that witnessed profit declines. However, what might continue to be a bright spot is the decent 3.9 per cent growth clocked by agriculture.

Good monsoons, denoting good prospects for the winter crop, a steady increase in tractor production as reflected by the IIP, an above-the-industry growth witnessed in two-wheeler sales (which has a higher rural market share than four-wheelers) support this point of view.

If this is indeed the case, companies with a rural tilt will benefit from sustained demand. Yet the trend of a shrinkage in private consumption expenditure witnessed in the first quarter GDP numbers might continue for some more time, given the high inflation and interest rate scenario. Moreover, even as gross fixed capital formation numbers in GDP improved in the June quarter, indicating better investment activity, it is difficult to assume this trend will continue.

SLOWING INVESTMENTS

For one, the erratic growth patterns clocked by capital goods in the IIP does not allow for too positive an interpretation.

But infrastructure /construction companies in the first quarter, for example, have already shown signs of slowing order inflows, execution delays and elongating working capital cycles.

Economists also feel that in a scenario where the fiscal situation is under pressure and the government is not able to effectively control its revenue expenditure, the casualty will be capex spends.

Infosys – Well poised in uncertain times::RBS,

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Post reorganisation, we believe Infosys will be better placed to tap deal flow
(particularly transformational and sole-sourced deals). It also looks well placed to
defend margins, given multiple operating levers. We cut our FY12/FY13/FY14 EPS
forecasts by 2%/8%/6%, but valuation still seems reasonable. Buy.


Completion of reorganisation gives impetus to grow well diversified revenue base
Given Infosys’s focus on strengthening its organisational structure, leadership team and
board, which we believe is almost done, the company is better aligned to meet its customers’
sales and delivery needs, in our view. Infosys is also having a big push to drive the revenue
share of transformation and innovation services, which we believe could boost its win rate in
large transformation and sole-sourced deals. While the current environment may not provide
great support for discretionary demand, Infosys still looks relatively well positioned given: a)
a diversified revenue base both in terms of verticals and service lines, and b) best-in-class
account mining capability, which is augmented by the new organisational structure. We
expect the company to meet the lower end of US dollar revenue growth guidance of 18-20%
for FY12, given our assumption that lower client budgets will impact growth in 2HFY12.
Multiple margin levers offer comfort in turbulent times
We believe Infosys is well positioned to deal with challenges on the margin front, in case
growth slows down. Given factors such as relatively lower utilisation, employee pyramid
management, offshoring potential, lower SG&A expenses and variable incentives offered to
achieve to growth/earnings targets, the company will be able to defend margins, in our view.
Although we have trimmed our revenue forecasts, we still expect a comfortable beat on its
FY12 EPS guidance of Rs128.2-130.1 at Rs135.
Valuation looks reasonable despite downward revisions to our forecasts: reiterate Buy
We have lowered our FY13/14F US dollar revenues by 9%/7% and EPS by 8%/6%, building
in a demand slowdown over 2HFY12. We lower our target P/E multiple by 8-10% to 18x vs a
FY12-FY14F EPS CAGR of 17%. This is a discount to the three-year average 12-month
forward P/E of 19x, factoring in increased earnings risk in the near to medium term. The
stock trades below -1x standard deviation on both P/E and P/B valuations, which we believe
represents an attractive entry level. We reiterate our Buy rating and lower our TP to Rs2765.

RBS:: Tech Mahindra – Increasing risk

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Besides TechM's business-specific risk, increased macro headwinds will likely
put pressure on earnings visibility going forward. We reduce our adjusted
FY13/14 EPS forecasts by 5%. We reiterate Sell and continue to prefer Satyam to
TechM.


Elevated macro headwinds likely to further increase revenue growth challenges
Despite factoring in company-specific business risks as well as some macro headwinds in
our 1Q12 results update, we believe elevated macro concerns (especially in Europe, which
contributes 52% of TechM’s revenues) will put further pressure on TechM’s revenue visibility.
Therefore, increased risk within its top client British Telecom plc (BT, still 40% of TechM’s
revenues), increased macro headwinds from US/Europe (83% of its revenues), and
continuing demand weakness from Telecom (about 100% of its revenues) clearly signal that
growth challenges are likely to escalate for TechM, in our opinion. Even some of TechM’s
recent deal wins (including in BPO and in markets outside the US/Europe) are unlikely to
provide a major defence to its increased earnings risk.
Margins likely to remain under pressure
Besides increased risk on revenues, we believe TechM’s margins will experience downward
pressure given headwinds that include 1) wage inflation due in 2Q12 (likely to affect TechM
more than its peers due to its higher proportion of offshore deliveries); 2) growth challenges
from top client BT (with pricing pressure likely); 3) required higher investment to increase
revenues from clients outside the top 10 (which contribute as much as 78% of its revenues);
and 4) likely higher growth in low-margin services and markets outside the US/Europe.
We reiterate Sell; we continue to prefer Satyam
We cut our adjusted EPS forecasts (ex amortisation of deferred revenue from BT and
including Satyam profits) for FY13/14 5% to factor in the aforementioned increased risks to
revenues and margins. We also reduce our target price for Satyam to Rs86 from Rs94, and
accordingly we reduce our SOTP-based target price for TechM to Rs593, implying an FY13F
PE of 10x for adjusted EPS (set at a discount of about 45% to our sector benchmark,
Infosys, to factor in higher earnings risk, lower revenue and lower EBITDA margins). We
prefer Satyam to TechM given Satyam’s relatively lower earnings risk, in our view.

HCL Technologies – Looking better positioned::RBS,

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HCL Tech looks better positioned than in the 2008/9 downturn with diversified
services, traction in large deals, low margin downside and improving cash flows.
Given increased macro headwinds we trim our FY12/13F US dollar top line 5%/7%
and EPS by 5%/8%, but find valuations attractive on our revised forecasts. Buy


Much better positioned than in the previous downturn
HCLT looks better placed than in the 2008/9 downturn: a) large deals and inorganic activity
over the past three years have grown its revenue base (up 90% over FY08-11) and HCLT
has gained traction in new verticals; b) a defensive infrastructure services practice (now 25%
of revenues vs 16% in September 2008) is generating non-cyclical annuity business; c)
HCLT has higher traction than its peers in non-traditional verticals; and d) the Axon
acquisition has helped expand its client base and build a credible Enterprise Application
business. HCLT has a strong track record in winning and executing large deals. We expect it
to win an increasing share of large deal renewals towards the close of the year, helping it
generate new business and counter any near-term demand weakness.
We expect margins to hold up in the medium to long term
HCLT’s EBIDTA margin contracted 463bp over FY09-11 (more than its peers’) as, we
believe, aggressive growth was in part achieved by upfront investment in large deals and the
integration of acquisitions while its BPO business was going into restructuring mode.
Conversely, we now see HCLT as ideally positioned to defend margins due to: a) high SG&A
leverage (14.8% of sales); b) increasing fresher hiring, which can help contain wage inflation;
c) increased offshoring of software services to India, particularly on Enterprise Apps; and d) a
turnaround in BPO, where losses have been contained.
After the recent sharp correction, valuations look reasonable on our revised forecasts
We lower our FY12/13F US dollar revenues by 5%/7% and EPS by 5%/8%, building in slower
demand over 2HFY12. We lower our target P/E multiple to 15x (from 16x) 12-month EPS
ending March 2013, in line with our lower 18x target multiple for our sector benchmark Infosys
(keeping the EV/EBITDA-based discount to Infosys largely unchanged at around 20%),
which reduces our target price to Rs490 (from Rs590). At current valuations, HCLT trades
slightly below -1x standard deviation on P/E, representing an attractive entry level, in our
view. We reiterate our Buy rating.

Info Edge India – Bracing for a slowdown in hiring ::RBS

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Despite diversification efforts, the jobs segment generates 80% of Info Edge's
revenues and all of its EBITDA. We believe the street is underestimating the
potential impact of a hiring slowdown and significant start up investments. The
stock's ytd performance leaves no room for disappointment. Downgrade to Hold.


Slowdown in lateral hiring is a key threat for Info Edge
Despite having built credible businesses around real estate and several investments in startups,
Info Edge still derives 80% of standalone profits and all of its EBITDA from recruitment.
In line with our sector thesis of a slowdown in IT sector demand in 2HFY12, we expect
companies to turn more circumspect on lateral hiring. The previous downturn suggests that
any change in lateral hiring tends to have a fairly severe impact on Info Edge. In addition, we
believe the company’s real estate broking arm, AllCheckDeals, could continue to be
impacted by legal disputes on land acquisition in Noida, its largest market.
We lower FY12/13F revenues by 9%/10% and EPS by 15%/18%
We expect yoy growth to slow materially to below 20% over the next two to three quarters
(from 32% currently), as companies adjust spending on recruitment, in tune with their lateral
hiring strategy. IT/ITES is the largest sector for Info Edge, and hence will be key to its
revenue trajectory. On the other hand, Indian GDP growth has moderated over the past few
quarters (7.7% in 1Q12), which implies domestic growth may not be able to offset the
potential slowdown in the IT sector. This is captured in the Naukri JobSpeak index (which
tracks job listing activity on the Naukri website), where 19 out of 41 sectors have reported
negative mom readings in the past four months. Hence we lower our FY12/13F revenues by
9%/10%. Given high operating leverage, we reduce our FY12/13F EPS by 15%/18%.
Stock outperformance vs IT sector does not leave any room for disappointment
Info Edge stock has outperformed the the BSE IT index by 31% ytd. Based on our earnings
downgrades, we lower our SOTP-based TP to Rs725 (from Rs864). Our FY12/13F EPS are
10%/21% below Bloomberg consensus, which we believe is underestimating the impact of a
hiring slowdown and early stage start up investments. Hence, we do not believe the stock
leaves much room for disappointment. A key metric to track will be the JobSpeak index, which
was a fairly accurate lead indicator during the previous downturn and subsequent recovery.

Tata Consultancy (TCS) – Low margin of error:: RBS,

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We downgrade TCS to Hold. We expect relatively low upside hereon as TCS has
outperformed its peers since the last slowdown. We believe TCS's low vertical
diversification beyond BFSI (43% of revenues and where high macro challenges
have emerged) and low headroom in defending margins offers low risk-reward.


Low diversification beyond BFSI during turbulent times can be growth headwind
Despite TCS’s leading capability of winning large deals across verticals, we believe that its
high revenue contribution of 43% from BFSI (similar to the period prior to 2008/09 slowdown)
and its past consistent growth outperformance may face medium-term headwinds from the
global macroeconomic challenges that are emerging. With an increasing revenue base of
Indian IT large caps (TCS’s 1Q12F annualised run rate is USD9.6bn), vertical diversification
is of utmost importance. With likely higher outsourcing potential in other large verticals
including Manufacturing (including Technology) where TCS’s scale is not largely different
than peers, competitive pressures will continue, in our opinion.
Headroom in margin levers much lower than peers
We believe TCS has done a credible job in improving EBITDA 482bp over FY08-11, resulting
in positive earnings surprises and valuation re-rating. In this transition, most of the headroom
in margin levers (including utilisation, offshoring, SG&A leverage and fixed price projects)
has been utilised at optimum levels, in our opinion. Since the headroom in most margin
levers needs to be reasonably high during turbulent times such as these, we believe TCS
has little room to defend its margins.
Relative outperformance offers low risk-reward; downgrade to Hold
Given macro headwinds, we cut our forecasts of USD revenues by 6%/5% and INR EPS by
6% for FY13/14. We believe the revised PE valuation on FY12/13F does not offer favourable
risk-reward given TCS’s 16% outperformance to the BSE IT index ytd and given its low
revenue diversification/margin flexibility discussed earlier. We expect relatively low upside
hereon given its current valuation is near its five to six years’ mean of its one-year forward
PE while most peers are now trading below -1xSD to one-year forward PE. Hence we
downgrade TCS to Hold with a decreased target price of Rs1105 (from Rs1350), which
implies a PE of 19x FY13F, a 5% premium to our industry benchmark Infosys (down from our
earlier 10% premium to factor in increased earnings risk)

IT Services – Cautiously optimistic::RBS,

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We expect the increased uncertainty about 2012 IT budgets caused by stronger macro
headwinds to have less of an impact on Indian IT Services than did the 2008-09 slowdown. Even
after downgrading our FY13F EPS for large-cap Indian IT companies by 6-8%, valuations look
reasonable to us.


Rational spending by clients implies the sector is better placed than in 2008-09
Spend on IT services by clients was at a measured pace post the 2008-09 slowdown, with much
of the sector growth coming from pent-up demand and restructuring of existing IT deals. Offshore
billing rates are still lower than before the previous slowdown. We expect better pricing discipline
among vendors because gross margins for some of them (Cognizant/HCLT) are much lower than
before the previous slowdown.


Nevertheless, given deteriorating macros, we expect clients to tread cautiously
We believe recent stronger macro headwinds will have an adverse near-term impact on business
confidence in the US and Europe, resulting in clients becoming more cautious about IT spending
and planning CY12 budgets. However, the current crisis relates more to the sovereign debt issue,
while US corporate balance sheets appear much healthier than during the previous downturn.
Hence, we expect spending to normalise by 2HCY12, after clients adjust to the new macro
environment. We do not expect any severe regulations on IT job outsourcing from developed
markets given the scarcity of computer engineers (especially in the US) despite any increasing
political noise going forward.
Sector valuations looks reasonable; we downgrade TCS to Hold, upgrade Wipro to Buy
We reduce our FY13F EPS for large-cap Indian IT companies by 6-8% given stronger macro
headwinds, but our revised PE valuations for FY12-13F look reasonable to us. In this state of
increased macro uncertainty, we prefer stocks with relatively low valuations, more revenue
diversity and higher flexibility in managing margins. Hence, we downgrade TCS and Info Edge to
Hold and upgrade Wipro to Buy from Hold. Infosys, HCL Tech and Wipro are our top large-cap
picks. Polaris is our top mid-cap pick. Stock correction resulting from further macro news flow is
possible, but over the medium to longer term we expect valuation multiples to improve given a
likely rebound in earnings growth from 2HCY12. Any sharp deterioration in the macro
environment in the US and Europe is a key risk.

Indian economy: In second gear ; Cyclical story: lower growth, higher inflation in FY12::Macquarie Research,

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Indian economy: In second gear
Cyclical story: lower growth, higher inflation in FY12
India‟s growth environment has been facing major headwinds from both
domestic and global factors. Over the past few months, the four I's – higher
inflation, high interest rates, high input prices and a slowdown in investments –
have been weighing on the growth outlook, in our view. At the same time, recent
global developments like the US debt downgrade and evolving Euro debt
concerns have increased the uncertainty about the global outlook. In view of the
recent macroeconomic headwinds, we expect India‟s real GDP growth to
decelerate to 7.4% YoY in FY12 from 8.4% YoY registered in FY11.
Limited leeway to use policy stimulus to boost economy
Unlike in 2008, sticky inflation and already high fiscal deficit levels limit policy
makers‟ ability to stimulate the economy via countercyclical policy tools in the
event of global risk aversion and a sharp deterioration in the global economic
environment.
Some recovery in FY13 but 9% growth a distant dream
We expect India‟s GDP growth to recover to 7.9% YoY in FY13 from 7.4% YoY
estimated for FY12 hinging on the government taking steps to remove structural
and policy-related bottlenecks to revive business confidence. We expect inflation
to stay at 6-7%, well above the historical average of 5-5.5%. We believe that
India‟s GDP growth will be well below the five-year average (FY07-11) of 8.4%
and that the targeted 9% level will remain a dream. We think an enabling policy
environment and government‟s effort to push the investment cycle will be the key
growth drivers of a mild recovery in FY13. We expect growth to start recovering
in the June 2012 quarter. Any meaningful pickup in investment may only be
visible towards the last quarter of 2012. One key factor: from both a capital flows
and exports perspective, the global growth environment remains an uncertainty.
Second wave of reforms
While a lot has been discussed about big-bang policy reforms, there has been
little progress on it over the past few years. Of interest, after policy inaction in the
wake of graft-related investigations regarding various issues, the policy tone on
reforms is turning incrementally positive. The government‟s Economic Advisory
Council (EAC) called for strong political leadership to push through muchneeded
reforms. The recent anti-corruption legislation movement led by social
activist Anna Hazare is itself the kind of revolution that the country has never
witnessed. There is a long list of pending structural reforms that we believe are
critical for India‟s growth cycle to accelerate.
Structural growth drivers remain intact
We believe favourable structural drivers for India to achieve sustainable GDP
growth of 8% remain intact over the medium term. India is poised to benefit from
the virtuous cycle of favourable demographic dividends, boosting savings and
thus higher investment and higher economic growth.

Slowdown ahead, say macro-indicators:: Business Line,

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The OECD Composite Leading Indicators Index, which has 6-9 months lead time, and other indices too seem to indicate tougher times ahead for the Indian economy.

India Inc.'s performance in the June quarter shows that sales and profits have grown at a decent clip with CNX 500 companies witnessing a 29 per cent expansion in sales and a 9.5 per cent growth in profits. But the question for stock market investors is whether this growth will continue. Right now, signals emanating from the economy hint that the current pace of growth is unlikely to linger. If stubborn inflation, rising interest rates and a slowing factory output are not reasons enough, growth blues in the European and US economies are not doing any good to the ‘India' growth story.

LEAD INDICATORS COOL OFF

What lies ahead for Corporate India? A good advance indicator of the pulse of the economy is the OECD Composite Leading Indicators (CLI). The OECD Index, based on a country's industrial production, is designed to signal turning points in economic activity, about 6-9 months before it actually happens.

For example, back in February 2009, when pessimism was still high in the air, the CLI pointed to a possible trough in economic activity in India, indicating the beginning of an upswing. Linked to this CLI, the OECD business cycle clock traces an economy through the four stages of expansion, downturn, slowdown and recovery.

With ‘100' remaining the long-term trend line, an ‘expansion' implies that the CLI is above 100 and is displaying an increasing trend. If the CLI is still above 100 but is showing a decreasing trend, the country is said to be witnessing a ‘downturn'. Similarly, a CLI below 100, showing subsequent falls month after month, indicates a ‘slowdown' whereas a CLI below 100 but progressively rising, denotes a recovery. So, how is India positioned currently? According to this clock, the CLI for India moved out of the 'expansion' phase as early as July 2010 (100.9) and began its descent towards a ‘slowdown' in October 2010 (100.2) itself. This has happened even as the IIP showed a robust 11.3 per cent growth during the same month.

Since then, the CLI has displayed a steadily decreasing trend, touching a new low of 95.7 points as per the latest available July 2011 report. Since the OECD index has about 6-9 months lead time, it seems the worst is yet to come for the Indian economy.

A second lead indicator of economic activity is the survey of purchasing managers of about 850 manufacturing and service sector companies across the country. Called the HSBC-Markit PMI (Purchasing Managers' Index), this study captures the trends in new business orders, employment, input/output prices, backlog of work and stock of raw materials/finished goods every month.

For August 2011, the PMI for the manufacturing sector slipped to a one-year low of 52.6, down from the peak of 58 recorded in April 2011 (the 50-point-mark differentiates expansion from contraction). The services PMI too recorded a one-year low of 53.6 points in August 2011.

Sub-components of the survey reveal that more bad news is in store, in line with the CLI. Consider this. For the over 1,500 listed companies, net sales grew at a healthy pace of about 26 per cent in the June 2011 quarter.

PAUSE IN CORPORATE GROWTH

But, going forward, top-line growth is likely to be constrained. That is suggested by the fact that purchasing managers, for five successive months since April 2011, have indicated weaker growth in new orders. New order growth in August has been the weakest in the last 29 months, pointing to a possible softening of domestic demand.

Numbers on the export order front are also not encouraging. Although the Government's export-import figures for June and July show high double-digit growth rates, the PMI's sub-index for new export orders had already slipped below 50 points (indicating a contraction) in July. The index contracted further in August, hinting at weakening prospects for export-oriented sectors such as textiles, gems and jewellery, etc. Auto exports too might take a hit.

The August 2011 manufacturing PMI gives out two other hints which support the proposition that volume growth might take a breather. One, after showing signs of slower expansion, backlog of work actually contracted for the first time since March 2010, pointing to lower capacity utilisation. This is in direct contrast to the situation of roughly a year ago, when backlog in work for both manufacturing and service industries showed a steady uptrend, leading to capacity constraints in a number of industries.

Two, the stock of finished goods has also decreased, attributable to a slower production growth and fall in inventory requirements. This apart, business expectations of the respondents over the next 12 months are less optimistic.

Hiring too has been reduced in recent months. The employment index for the service sector, for example, has contracted to below 50 in July and further down August, signalling successive monthly declines in staffing levels.

Finally, growth in intermediate goods, as captured by the IIP, has turned negative, at -1.1 per cent in July after several months of sluggish growth. Used as raw materials, a slackening demand for these intermediate goods from companies gives an advance indication of cooling off demand for the finished products.

SOME RESPITE

What might provide some relief to companies is that commodity prices, which hurt profit until the first quarter, have eased off quite a bit. But, with the demand moderating for rate-sensitive sectors and the PMI survey pointing to weakness in overall demand, the road to margin expansions may not be smooth.

Besides, survey respondents have already thrown hints at not being able to pass on the full impact of cost inflation to customers, pointing to a loss in pricing power.

At the net profit level, what could squeeze margins additionally is the lag effect of successive interest hikes. That said, big corporates have indeed reduced their leverage in FY-11, both by raising fresh equity and by repaying debt.

At 0.49 for the top 500 companies, the debt to equity ratio for India Inc. is the lowest in five years. That could do its bit to ease the interest cost burden. That the interest rate cycle in India is close to its peak also adds credence to this line of thought.

Tata Power: Annual analyst meet – Mundra remains the focal point:: Kotak Sec,

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Tata Power (TPWR)
Utilities
Annual analyst meet – Mundra remains the focal point. The Mundra UMPP
continues to be the key area of concern for Tata Power (TPWR) even as the
management highlighted steps being undertaken to address the same. The
management also highlighted that Mundra was likely to operate at PLFs in the range of
72-78%. We maintain our BUY rating and reiterate that TPWR will remain a net
beneficiary of rising prices of coal though lower PLF at Mundra and higher production
at coal mines remain the key.


Exploring options to offset losses at Mundra
The management has indicated that it is in process of exploring other options to minimize/offset
losses at Mundra, including (1) initiation of talks with beneficiaries and (2) usage of low-grade coal
at Mundra. The management has indicated that formal discussions with the beneficiaries
regarding potential tariff revision are about to commence. Further, TPWR is planning pilot runs
with low-quality coal on its first unit at Mundra. The management has also indicated that the draft
guidelines in Indonesia that aim to stop the export of low-quality coal without upgradation are
unlikely to materialize owing to unfavorable cost-benefit ratio of upgrading low-quality coal.
Mundra likely to operate at PLFs in the range of 72-78%
As highlighted by us previously, the Mundra UMPP will likely operate at a PLF ranging from
72-78% while maintaining an availibility of 80%, thus minimizing losses on fuel cost while
maximizing recovery of capacity charge. Although the extent of dispatch will be governed by
actual demand from the beneficiaries, the management has indicated that average annual PLF of
the Mundra UMPP will likely be in the range of 72-78%. We note that our estimates factor a PLF
of 75% and availibility of 80% at Mundra.
Bumi to ramp up production capacity to 75 mtpa by end-CY2012E
The management has guided for capacity ramping up to 75 mtpa by end-CY2012E with full
volume impact by CY2013E. We factor volumes of 70 mn tons in FY2013E. We discuss the
potential impact of PLF at Mundra clubbed with volumes and realization of the coal business in a
subsequent section.
Maintain BUY with a target price of Rs1,350/share
We maintain our BUY rating on Tata Power with a target price of Rs1,350/share. As highlighted
above, despite the potential losses at Mundra, TPWR will remain a net beneficiary of rising prices
of coal which could be further magnified by a more aggressive production ramp-up at Bumi. We
continue to like TPWR’s core distribution business which earns a stable return and is insulated from
risks of deteriorating financial health of SEBs.


Ownership in coal mines offsets losses at Mundra, lower PLF and higher
production at coal mines remain the key
As highlighted in our note titled ‘Revisiting the coal equation’ dated August 25, 2011, TPWR
ownership in coal mines in Indonesia offsets the losses of rising coal prices at Mundra while
allowing TPWR to benefit from rising prices of coal. We note that taxes and royalties at the
coal mines (45% +10%) imply that TPWR is just about hedged to meet the impact at
Mundra at current production of ~60 mtpa. However, ramp-up in coal production at the
coal mines allows TPWR to be a net beneficiary of rising coal prices.
TPWR will be able to maximize the benefits of rising prices of coal by (1) minimizing losses at
Mundra through low yet optimal utilization (PLF) of the Mundra capacity, and (2) aggressive
ramp-up in production at the Indonesian mines. Operating at 75% PLF minimizes losses on
fuel cost while maximizing recovery of capacity charge. Correspondingly, production rampup
at Indonesia will allow TPWR as a consolidated entity to (1) offset the losses at Mundra
(which it does at current level of production), and (2) benefit from excess production (over
and above the hedge requirement) of coal. To understand the point above, see Exhibit 1
below which charts the sensitivity of our fair value estimate to different PLF and volumes
assumptions for Mundra and Bumi at varying sustainable realizations for coal

Tata Power- Key take aways from analyst meet 􀂄 UBS

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Tata Power
K ey take aways from analyst meet
􀂄 Tata Power organised an analyst meet this evening
This evening Tata Power organised an analyst meet and the key highlights are as
follows; 1) from current operating capacity of 3,176MW, Tata Power has a target
of 25,000MW generation capacity by 2017, 2) the development at captive coal
blocks of Mandakini and Tubed is on track, 3) the company's strategy on merchant
capacity is cautious and merchant power is unlikely to be >10% in generation mix.
􀂄 Key points on Mundra Ultra Mega Power Project (UMPP)
Tata Power is developing a 4,000MW imported coal based project and the key
points on this UMPP are, 1) Unit I (800MW) is likely to be commissioned in
March 12 or 1Q FY13, 2) Indonesian government is unlikely to provide any relief
in terms of relaxation from new regulation, 3) Tata Power would explore options to
use lower grade coal if it leads to economic benefit, 4) Beneficiary states would
like to involve central government in any discussion related with tariff revisions.
􀂄 Mundra remains an overhang for the stock
The Indonesian government has decided to link the price of exported coal with a
benchmark based on international prices. Indonesia is the source of coal for
Mundra project and if spot price is above US$65-70/tonne, the project may not be
profitable in our view. Currently, we don’t include Mundra project in our valuation
and believe that this issue will continue to remain an overhang for the stock.
􀂄 Valuation: Maintain Buy and price target of Rs1,350
We use a sum-of-the-parts methodology. The power segment comprises 64% of
our valuation), 2) the stake in Bumi’s mines (25%); and 3) investments (11%).

Bharti Airtel- Tough times! Good time to enter ; target: Rs483:: Macquarie Research,

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Bharti Airtel
Tough times! Good time to enter
Event
 Bharti stock is 15% below its near-term peak (Rs440) and ~9% down from
early September, when the INR started to depreciate sharply. This is partly
driven by general market weakness. More importantly, three concerns are
being raised – INR depreciation, concerns on spectrum charges and the 3G
price war (details on each item can be found on pages 2-9). We still believe
that Bharti is a great stock to own in this environment. It is one of our global
top picks in the telecom sector. We re-iterate our Outperform rating.
Impact
 Forex impact is primarily a non-cash item: A 5% depreciation of the INR
versus the USD impacts PBT by ~6.5%. However this is primarily a translation
related (non-cash) item. We estimate the cash impact to be less than 1% of
EBITDA for a quarter. The medium-term hedging policy could limit this further.
 No price war in 3G – even though prices will fall further: We don’t see
recent price cuts in 3G by most operators as a signal that a ‘2008 style’ price
war is about to begin. Based on global comps in fact, implied ARPU at Rs500
is still 38% higher than our FY13 estimate. We continue to expect further price
cuts to drive penetration even as margins improve. We expect trends to be
similar to those seen in 2G in 2003–08 (Fig 5). This should be driven by the
oligopolistic nature of the 3G market and similar pricing (albeit falling).
 Low probability of negative policy outcome: We expect the new telecom
policy to support consolidation – through a combination of spectrum sharing,
exit options and M&A rules. The only issue that could rock the boat is if the
spectrum payments are higher than those proposed by the TRAI in February
2011. We believe these recommendations are built into street expectations. If
the proposed ‘excess spectrum’ charges are also applied on the first 6.2 MHz
at time of renewal, it would lead to a US$1.8bn hit to Bharti’s valuation. Our
target price would fall to Rs460/ share, still offering upside from current levels.
This would however impact earnings from FY15 onwards and lead to a return
of policy overhang due to appeal/ litigation by Bharti, Idea and Vodafone. The
probability of this outcome is less than 10% in our view.
Earnings and target price revision
 No change.
Price catalyst
 12-month price target: Rs483.00 based on a Sum of Parts methodology.
 Catalyst: News on operating metrics (ARPM/ tariffs/ 3G), new telecom policy.
Action and recommendation
 Maintain Outperform on Bharti, one of our top global sector picks and a
good defensive play. We believe its balance sheet has the capacity to absorb
the excess spectrum charges. As discussed, we expect the new policy to
generally favour incumbents. This is due to increased consolidation and
pricing power. If this is indeed the case, we expect further earnings upgrades.

GVK Power and Infra Multi-billion dollar risky venture ::Macquarie Research,

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GVK Power and Infra
Multi-billion dollar risky venture
Event
􀂃 GVK group has acquired stakes in Hancock’s coal mines in Australia for an
initial purchase price of US$1.26bn – 90% stake was acquired via a promoter
entity and 10% through the listed entity, with 49% of the guarantees provided
through the listed entity. We are reviewing our investment thesis following
such a big acquisition.
Impact
􀂃 Debt-funded deal with promoters owning majority stake: The US$1.26bn
Hancock deal has been funded entirely by debt and is 90% owned by the
promoter entity and 10% by listed entity GVKPIL.
􀂃 Huge equity requirement for project development, contingent on
potential PE deals: US$10bn in project costs for mine development, rail and
port projects would entail an equity requirement of US$2.5–3bn over the next
3–4 years. Management is hopeful of raising PE funds to fund the equity
requirement for the project.
􀂃 Balance sheet exposure creates risks for minority shareholders: GVKPIL
has provided corporate guarantees for 49% of the acquisition debt and has
pledged its shares in its road projects and Energy vertical to secure the equity
requirements of the debt and debt guarantees. We remain concerned with the
significant guarantees provided by the listed entity in return for an option to
purchase 20m tonnes of coal annually at a 10% discount to the market price.
􀂃 Is GVK falling into a debt trap? GVKPIL is in the process of raising/has
raised debt of Rs26bn to fund its increased airport stakes. Additionally, it has
an equity shortfall of ~Rs8bn in its road projects under construction over the
next 2–3 years. The company has been trying to raise private equity money
for its airport vertical, which has been delayed due to uncertainty in
regulations. Only GVK Energy currently seems to be well placed in its equity
requirements mainly due to private equity funds of US$300m raised in FY11.
􀂃 Management bandwidth can get stretched: GVKPIL has not advanced
much on pending issues like real estate monetisation at the Mumbai airport,
gas allocation for its expansion projects and settlement of merchant sales
from its operational gas power plants. With such a large coal acquisition, top
management’s focus is likely to shift from India to Australia.
Earnings and target price revision
􀂃 No change.
Price catalyst
􀂃 12-month price target: Rs43.00 based on a Sum of Parts methodology.
􀂃 Catalyst: Fund raising in coal SPV, airport tariff regulation and gas allocation
Action and recommendation
􀂃 Growing bigger than its shoes: With asset purchases and stake increases
funded entirely by borrowings, GVKPIL is running high on debt. Corporate
guarantees in this recent asset purchase expose the listed company to
considerable balance sheet risks.

ICICI Bank: Steady growth and quality :::CLSA

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Steady growth and quality
Representing ICICI Bank at the IF, Mr. NS Kannan (ED and CFO) and
Rakesh Jha (Dy. CFO) highlighted that during FY12, bank targets ~18%
growth in loans led by the corporate segment. Bank is highly focussed on
liability structure (CASA ratio) and profitability (ROA). Management is
comfortable with the quality of loans in the power and commercial real
estate sectors; SME exposure is low. Overseas exposures have declined in
past two years and are mostly to Indian corporate groups.
Targeting 18% loan growth with stable CASA ratio
During FY12, management expects to achieve ~18% growth in loans driven
by growth in corporate loans, both domestic and overseas. Growth in retail
segment will be led by mortgages, but will lag overall growth. A key change in
strategy vis-à-vis past cycle is that loan growth targets are linked closely to
liability structure and profitability. Bank plans to maintain CASA ratio ~40%
and targets to keep credit costs low (targeting 80bps). Healthy ROA and rise
in leverage will drive expansion in ROE over next 2-3 years.
Margins to be stable in FY12 and may expand in FY13
Management believes that during FY12 margins are likely to be stable YoY at
2.6% (~3% domestic and ~85bps overseas). Margins may expand in FY13
led by rise in average CASA ratio and repricing of forex assets. Improvement
in competitive/ pricing environment in domestic market is a positive.
Limited risk in power and real estate exposures; SME share is low
Power sector loans form 4.5% of ICICI’s total loans and less than 7% of total
exposures. The management highlighted that loans were granted after careful
evaluation of sponsor’s track-record, fuel availability, offtake agreement and
tariffs. Moreover, their sensitivity analysis indicates adequate debt-service
coverage ratio (DSCR) under cases of substantially lower PLF and higher
imported coal than originally assumed. Commercial real estate exposures
form 4% of total and comprise of developer financing, loans against property
and balance sheet financing where part security/ takeout is from CRE. Loans
are backed by cash flows from projects as well as adequate security cover.
Share of SME is just 5% of loans, two-thirds of retail loans are mortgages and
MFI exposure is down to Rs10bn of which 75% may be restructured.
Lower and de-risked international portfolio
The total assets of UK and Canadian Banking subsidiaries have declined by
20-30% since Jun-09. The investment in bonds/ notes of FIs in ICICI UK has
declined from US$2.1bn in Jun-09 to US$640m and there is no exposure to
peripheral Europe. Bank plans to get the capital back from some overseas
subsidiaries and has started conversation with regulators. CDS exposures
have more than halved to Rs21bn and are mostly to Indian corporate.

Swajas Air Charters IPO :: all details - Application forms, grading report

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SWAJAS AIR CHARTERS LIMITED
	*Non-Retail investors i.e. QIB and Non-Institutional Investors Bidding for more than 2 lac shall mandatorily use ASBA facility
Symbol - Series	SWAJAS EQ
Issue Period	Sep 26, 2011 to Sep 28, 2011
Post issue Modification Period	September 29,2011
Issue Size	Public issue of [.] Equity Shares aggregating upto Rs 3750 lacs.
Issue Type	100% Book Building
Price Range	Rs.90 to Rs.100
Face Value	Rs.10/-
Tick Size	Re. 1/-
Market Lot	60 Equity Shares
Minimum Order Quantity	60 Equity Shares
IPO Grading	IPO GRADE 2
Rating Agency	ICRA
Maximum Subscription Amount for Retail Investor	Rs.200000
IPO Market Timings	10.00 a.m. to 5.00 p.m.
Book Running Lead Manager	Aryaman Financial Services Limited
Syndicate Member	Aryaman Financial Services Limited,India Securities Broking Private Limited
Categories*	FI,IC,MF,FII,OTH,CO,IND and NOH.
No. of Cities with Bidding Centers	46
Name of the registrar	Cameo Corporate Services Ltd
Address of the registrar	Submaramanian Building,1 Club House Road, Chennai 600 002
Contact person name number and Email id	Mr. R. D. Ramasamy,044-2846 0390/1989, cameo@cameoindia.com
Prospectus	Click Here
Trading Member List	Click Here
Application Forms	Click Here
ASBA e-form link	e-Forms
Grading Report	Click Here
Branches of Self Certified Syndicate Banks (SCSBs) where syndicate / sub syndicate member to submit ASBA form	Click Here

RDB Rasayans IPO subscribe 1.5x: retail 3.96x; QIB-NIL; HNI:0.75x

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RDB Rasayans Limited

Total Issue Size	4500000
Total Bids Received	6750560
Total Bids Received at Cut-off Price	5611440
No. of times issue is subscribed	1.50

RDB Rasayans Limited

Sr.No.	Category	No.of shares offered/reserved	No. of shares bid for	No. of times of total meant for the category
1	Qualified Institutional Buyers (QIBs)	2250000	0	0.00
1(a)	Foreign Institutional Investors (FIIs)		0
1(b)	Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies)		0
1(c)	Mutual Funds		0
1(d)	Others		0
2	Non Institutional Investors	675000	506240	0.75
2(a)	Corporates		352960
2(b)	Individuals (Other than RIIs)		153280
2(c)	Others		0
3	Retail Individual Investors (RIIs)	1575000	6244320	3.96
3(a)	Cut Off		5611440
3(b)	Price Bids		632880

Updated as on 23 Sep 2011 at 1700 hrs