22 February 2012

10 reasons to invest in the MCX IPO (First Post)

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MCX IPO— The new buzz word on Dalal Street has attracted way too much investor interest already. Most brokerages have a buy call on the IPO due to the exchange’s strong financial performance and good industry prospects. But is the IPO really worth investing when the market has clearly seen a rally because of one sole factor— Foreign Institutional Investors?

BCB Finance: All IPO Details

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ssue Terms
 
Issue price / Floor Price (Rs)
25
Application per share (Rs)
25.00
Minimum investment amount (Rs)
100,000.00
Minimum bid (no of shares)
4000 shares and in multiples of 4000 thereafter
Maximum Shares for Retail
8000

Hold ABG Shipyard; Target : Rs 427 ::ICICI Securities, pdf link

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http://content.icicidirect.com/mailimages/ICICIdirect%20ABGShipyard_Q3FY12.pdf


C o r e   E B I T D A   m a r g i n ,  o r d e r   b o o k   q u a l i t y
i m p r o v i n g …
ABG Shipyard (ABG) reported a better-than-expected performance in
Q3FY12 on the topline front while net profit was marginally lower than
our estimates. ABG reported revenues of | 619.3 crore vs. our
expectation of | 609 crore and net profit of | 46.5 crore (I-direct estimate:
| 51.6 crore) for Q3FY12. EBITDA margin (including subsidy) improved by
75 bps QoQ and was higher than our  estimate of 23.5% at 24.6%. The
heartening factor in ABG’s performance is the improvement in the core
EBITDA margin (excluding subsidy), which has improved by 100 bps on a
QoQ basis to 23.5%. However, higher depreciation (up by 5% QoQ) and
interest cost (up by 18% QoQ) continue to dampen the net profit. Over
Q1FY12 to Q3FY12, ABG’s core EBITDA margin has risen by 430 bps
signifying an improvement in the  core operational performance. With
execution also picking up gradually, profitability is expected to see
accelerated growth in FY13.
ƒ Order book quality improving
ABG’s total order book stands at ~ | 15500 crore, of which the
unexecuted order book is at ~ | 10500 crore. Though more than 20% of
the order book comprises orders placed by ABG’s group companies,
recently, the heartening factor has been ABG’s ability to bag prestigious
orders. During Q1FY12, the company had secured an order of | 970
crore for construction of two cadet training ships for the Indian Navy. In
January 2012, ABG bagged an order worth | 500 crore from Shipping
Corporation of India for construction of six anchor handling tugs cum
supply vessels (AHTS). These orders from top notch Indian PSU clients
bode well for potential order inflows from these marquee clients and
provides strong revenue visibility, going ahead.
V a l u a t i o n
At the CMP of | 434, the stock is trading at 8.8x FY13E EPS of | 49.1 and
1.32x FY13E book value of | 328. Considering the improvement in core
EBITDA margin and order book quality, we have valued the stock at 1.3x
FY13E book value (Q1FY12: 1.1x) to arrive at a price target of | 427 and
recommend a HOLD rating. Existing investors can also continue to hold
the stock

2nd IPO: BCB Finance Ltd will open from tomorrow - 23 feb (close Monday, 27 Feb) Issue Price Rs 25/share. Fixed Price

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BCB Finance Ltd IPO

Fixed Price Rs 25/- per share.

Opens:  tomorrow i. e. 23.02.12  (Thursday)
Closes:  27.02.12 (Monday)

MCX IPO: What analysts recommend (ET)

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The initial public offer of the Multi Commodity Exchange of India (MCX) offers retail investors an opportunity to become a part of India's growing commodity trading business at reasonable pricing. The company is the leader in its industry with a robust business model, a strong balance sheet and consistently high cash flows without any major capex in future. Investors are advised to subscribe to the IPO.

Seven of the existing shareholders of the company, including the promoter Financial Technologies (FTIL), will be selling a total of 64.3 lakh shares. MCX won't be issuing any shares and hence no proceeds would accrue to the company.

The company represents a high-cash generating, low-capex business and is debt free. Its net worth stood at around Rs 1,073.9 crore as on December 31, 2011. Out of this nearly Rs 700 crore is cash or investments.

MCX posted a net profit of Rs 218 crore in the nine months to December 2011. On an annualised basis, this translates into a price-to-earnings multiple (P/E) of 15.1 to 18.1 depending on the lower and upper IPO price bands. Similarly, the IPO band is 4.1 to 4.9 times the book value of MCX shares as on December 31, 2011. (Read full story)


Here is a look at what various analysts and brokerage houses have to recommend about the IPO

> KR Choksey
> Espirito Santo
> Anand Rathi
> Eastern Financiers
> Nirmal Bang
> Aditya Birla Money
 (read BELOW)

MCX IPO: It's a buy call (ET)

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/photo.cms?msid=11984137

MCX IPO:Grey market premium,

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Grey market premium:MCX IPO

Price Band MCX IPO: Rs 860 to Rs 1,032

 Latest GMP MCX ipo Rs 330- Rs 340
 Kostak Buyer of Rs 4,000

 Expected retail over subscription: at least 10 times

 Apply maximum amount (if you have money) to get full benefit!

MCX raises Rs 96 crore from pre-IPO share sale

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The country’s Multi Commodity Exchange (MCX) has raised about Rs 95.6 crore from 12 cornerstone investors, the company said, ahead of its initial public offering of shares that aims to raise as much as $134 million.
The country’s biggest commodity exchange by turnover has finalised allocation of 926,606 shares to anchor investors at Rs  1,032  a share, the top end of the price band it has fixed for the public offering, it said in exchange filings late on Tuesday.
MCX is offering about 6.4 million shares in the IPOAFP
The anchor investors that bought shares in the pre-IPO sale include BlackRock Global Funds, Deutsche Securities, Kuwait Investment Authority Fund, Credit Suisse, ICICI Prudential Mutual Fund and Tata AIG Life Insurance, the filings showed.
MCX, which will become the first Indian bourse to list its shares on an exchange, is offering about 6.4 million shares in the IPO in a price band of Rs 860  to Rs 1,032a share. The public sale opens on Wednesday and will close on Friday.
Morgan Stanley , Citigroup and India’s Edelweiss Capital are the bookrunners for the share sale.

MCX IPO is a decent bet. Here’s why you should buy- Rajanya Bose

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The initial public offer (IPO) of MCX, the biggest commodity exchange in India based on the value of futures traded, was launched today.
When it debuts on the stock exchange, MCX will become the first exchange listed in India. The IPO, which is an offer for sale, will offer around 6.1 million shares out of a total capital base of 50 million shares. An offer for sale is a public offering by an existing set of investors and promoters who are offloading a portion of their holdings.

MCX IPO valuations are attractive: Nirmal Bang

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Nirmal Bang has recommend investors to 'Subscribe' to initial public offering of Multi Commodity Exchange of India (MCX) as it believes the company's "valuations are attractive at current levels." "The Developed countries Exchanges like CME, CBOT enjoy an EBITDA margin of approximately 60% with a growth of around 9-10%. These exchanges enjoy a P/E of around 17-18x on CY12 earnings. The developing countries also enjoy an EBITDA margin of around 60% with a growth of 10-15% and enjoy a P/E of 24-25x on CY12E. Whereas, MCX being the first listed company is trading at a P/E of 18x on annualized FY12E earnings. We believe that MCX enjoys a lower multiple as compared to other exchanges even though the growth rate is higher. We believe that the valuations are attractive at current levels," the report said. MCX is planning to raise between Rs 553-663 crore by offering equity shares at a price band of Rs 860-1032 per share. The issue opens February 22, 2012 and closes on February 24, 2012. "MCX shares are offered at 4.9x P/BV and 18.11x P/E calculated at higher band of price for 9MFY12 annualized EPS. We believe that the leadership position in the commodities industry with minimal competition, MCX will definitely command a premium multiple. Considering promoter's position in the market, visible brand, better operational parameters & diversified portfolio, we expect MCX can command higher premium going ahead. Therefore, we recommend a "SUBSCRIBE". Since the offer is a pure offer for sale, the company would not receive any proceeds from the offer. The main object of the issue is to get listed on the exchange. CRISIL has assigned a 'Grade 5' to the MCX IPO which indicates 'Strong Fundamentals'.

22 Feb: Stocks in News ::Edelweiss

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 Stocks in News
Reliance Industries plans USD 450-m JV with Russia’s Sibur to produce Butyl rubber. (ET)
Sterlite, Sesa goa likely to be merged. (ET)
SBI throws INR 1,200-cr lifeline to beleaguered Kingfisher. (ET)
Tata Motors to launch 230 Nano showrooms. (ET)
Tatas select China partner for JLR plant. (ET)
ONGC, GAIL consider joint bid for London’s Cove energy. (ET)
Repower systems, a wholly owned subsidiary of Suzlon Group bags 250-MW contract from French firm. (ET)
M&M to invest INR 11,000 cr in three years to double output. (ET)
GTL may get INR 1,000 cr from Aircel. (ET)
L&T, UK’s Cyan tech tie up to offer metering solutions. (ET)
JSW steel to raise USD 275 m via overseas borrowing. (ET)
Lanco in talks with AES, Gaz de France. (BS)
HCL wind ICD 10 transformation deal (BS)
Sun Pharma may opt for out-of-court settlement. (BS)
REC to raise INR 3,000 cr. (DNA)
BG’s Gujarat Gas stake. (DNA)

MCX IPO subscribed 91% on day 1

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MCX IPO subscribed 91% on day 1


Total Issue Size 5500772
Total Bids Received 4987794
Total Bids Received at Cut-off Price 2361672
No. of times issue is subscribed 0.91



MULTI COMMODITY EXCHANGE

Sr.No.CategoryNo.of shares offered/reservedNo. of shares bid forNo. of times of total meant for the category
1Qualified Institutional Buyers (QIBs)216208316025820.74
1(a)Foreign Institutional Investors (FIIs)630684
1(b)Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies)969000
1(c)Mutual Funds0
1(d)Others2898
2Non Institutional Investors9266071452780.16
2(a)Corporates57048
2(b)Individuals (Other than RIIs)88230
2(c)Others0
3Retail Individual Investors (RIIs)216208232389621.50
3(a)Cut Off2360736
3(b)Price Bids878226
4Employees2500009720.00
4(a)Cut Off936
4(b)Price Bids36

Updated as on 22 FEB 2012 at 1700 hrs\

22 Feb: Edelweiss Technical Reflection (ETR)

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Edelweiss Technical Reflection (ETR)
Indian markets continue to extend the rally as the Nifty climbs another 0.77% to close above the 5600 mark and at a 7-month high. The rally off the low of 4530 has been one of the strongest in recent times that has managed to ease past important resistances on the way up indicating that the markets have entered a bullish phase. Yesterday, the index opened on a flat note and gradually built on the gains and closed near the high of the day suggesting underline bullish strength. The bulls have managed to hold ground despite an indecisive previous session (spinning top candlestick) which suggests there is further ground to cover before any meaningful consolidation/correction. Trading volumes were relatively lower and the market breadth was mildly in favour of advances. The concern emanated from the momentum oscillators on the hourly chart that are showing clear signs of negative divergence and daily oscillators that are trading in extreme overbought conditions warranting utmost caution and profit taking risk. With couple of days to the February derivatives settlement, expect Nifty to hold ground above 5460 (10 DEMA) and even manage to test the 61.8% retracement level of 5650.

Barring the IT index (-0.16%), all other sectoral indices ended the day in the green. The prominent gainers of the day were Realty (+4.34%), Oil & Gas (+2.29%) and Power (+0.97%) stocks. Mid-cap and Small-cap indices closed with gains of 0.91% and 1.20% respectively.

Bullish Setups: TPWR, ONGC, BHEL, INFY, PWGR

BSE, Bulk deals, 22/2/2012

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Deal DateScrip CodeCompanyClient NameDeal Type *QuantityPrice **
22/2/2012511706Action FinRAJ KUMAR KEDIAB10000037.00
22/2/2012511706Action FinMALTI NAVINCHANDRA SHAHS5400037.00
22/2/2012530707AftekINDUSTRIAL DEVELOPMENT BANK OF INDIAS48471011.21
22/2/2012531560Aroma EnterprisesJHAVERI TRADING AND INVESTMENT PVT LTDB249008.63
22/2/2012531560Aroma EnterprisesAARAV FINANCIAL SERVICES PRIVATE LIMITEDB250008.63
22/2/2012531560Aroma EnterprisesBHARGAVI VIJAY TALATIS320008.63
22/2/2012531560Aroma EnterprisesJAYANTKUMAR & COMPANY PROP :JAYANTKUMAR MANUBHAI PS500008.63
22/2/2012530245Aryaman FinMUKESH BABULAL SHAHB19084519.68
22/2/2012511710Cubical FinSARA INTERNATIONAL LTDB9500054.45
22/2/2012511710Cubical FinVANI FINVEST (P) LTDB7100054.92
22/2/2012511710Cubical FinAJAYA AGARWALS7500054.50
22/2/2012531270Dazzel ConfYOGESHKUMAR SURESHBHAI PARMARB8079455.07
22/2/2012531270Dazzel ConfBRIJESH ASHOKBHAI HALARIB9963065.01
22/2/2012531502Esaar IndiaPRAVEEN AGARWALB50000016.90

NSE, Bulk deals, 22-Feb-2012

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DateSymbolSecurity NameClient NameBuy / SellQuantity TradedTrade Price /
Wght. Avg.
Price
Remarks
22-Feb-2012AMTEKAUTOAmtekAuto-Roll SettAMTEK AUTO LIMITEDBUY20,23,640133.84-
22-Feb-2012AMTEKAUTOAmtekAuto-Roll SettNDMR B VSELL18,41,018133.84-
22-Feb-2012DENSODenso India LtdECE INDUSTRIES LIMITEDSELL3,00,00048.65-
22-Feb-2012DENSODenso India LtdSHAMSHADULISLAM ABDUL QUADIR SHAIKHBUY2,99,90048.65-
22-Feb-2012DHANBANKDhanlaxmi Bank LimitedGIRDHARILAL V. LAKHIBUY4,70,00062.36-
22-Feb-2012EVEREADYEveready Industries IndiaCROSSEAS CAPITAL SERVICES PVT. LTD.BUY7,23,38530.46-

Sensex - March is very important : chuknoo

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SENSEX has jumped 19% this year (ignoring today’s fall of more than 100 Nifty points) on enormous liquidity from EU & USA & has wiped more than 3/4th of 25% losses it suffered in whole of 2011. The rupee, too, has strengthened this year, climbing around 7% against US$, after a drop of about 18% last year that added to the losses for U.S. investors in the Indian stock market. Liquidity is due to printing of billion of Euros & USD by respective Central Bank & offering it on low interest rates. A lot of this money has found its way into Equities in emerging markets such as India. FFI’s have poured nearly $5 billion into Indian stocks this year as compared to a pullout of $357 million in 2011.

22/2/12: FII & DII Turnover (BSE + NSE) (Rs. crore)

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FII & DII Turnover (BSE + NSE)
(Rs. crore)
FIIDII
Trade DateBuySalesNetBuySalesNet
22/2/124,033.403,203.77829.631,215.072,547.97-1,332.90

22/2/12: Categories Turnover (BSE) (Rs. crore) Clients NRI Proprietary Trade Data

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Categories Turnover (BSE)
(Rs. crore)
ClientsNRIProprietary
Trade DateBuySalesNetBuySalesNetBuySalesNet
22/2/122,585.202,415.18170.021.010.920.09961.051,007.48-46.43
21/2/122,261.282,272.86-11.580.950.940.01841.41798.2343.18
17/2/122,885.982,909.90-23.922.843.03-0.181,092.021,056.1535.86
Feb , 1234,475.6236,151.61-1,675.9919.9020.40-0.5013,108.2712,583.51524.76
Since 1/1/1269,408.0771,346.40-1,938.3336.8340.34-3.5225,105.0124,195.77909.25

Gold to rise much higher in this decade, do not sell it: Jim Rogers (ET)

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In an Interview with ET Now, Jim Rogers, chairman, Rogers Holdings, gives his views on gold, crude and other commodities. Excerpts:

With continuous monetary easing from China, how much support do you see going in for commodities and liquidity eases with the biggest commodity consumer?

Throughout history when you have people printing money and debasing currency, the way to protect yourself and to make money is to own real assets. Silver, rice, natural gas, and those are not specific recommendations. I am just saying those are natural resources. You now have the Bank of Japan, the Bank of England, America, the Chinese apparently are loosening up. Everybody is now loosening the money supply, printing money. That's good for real assets.

FII DERIVATIVES STATISTICS FOR 22-Feb-2012

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FII DERIVATIVES STATISTICS FOR 22-Feb-2012 
 BUYSELLOPEN INTEREST AT THE END OF THE DAY 
 No. of contractsAmt in CroresNo. of contractsAmt in CroresNo. of contractsAmt in Crores 
INDEX FUTURES2457716881.002585227227.9880208722164.72-346.98
INDEX OPTIONS66322818331.0164087517687.27186779051403.51643.74
STOCK FUTURES3237159859.2534654310555.34109678632719.63-696.08
STOCK OPTIONS5506151.826094163.70603671771.67-11.88
      Total-411.21

 


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