Adani Ports and Special Economic Zone: Geared for growth :JPMorgan

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We think Mundra Port will be in a sweet spot over the next 5 years with spare
capacity in high growth coal and container cargo segments. Actual 11th Plan
investments by overburdened major ports have slipped 75% vs. target and a
scalable non-major port alternative to Mundra on the west coast is still elusive.
The stock has underperformed the Sensex by ~20% over the last 6 months on
account of unfavorable newsflow and slippages in traffic (consensus
standalone EPS cuts of 13% thru 2HFY12) driven by delayed commissioning
of end-use customer projects and weak GDP growth. Growth drivers are
falling into place: we estimate a 35% consol EPS CAGR over FY12-17,
average 26-27% RoE and a FCF yield of at 7.7% in FY14. We think robust
fundamentals merit a valuation premium. Upgrade to OW with revised Mar-
13 PT of Rs160 implying 16.7x FY14 P/E and ~11x/ EV/EBITDA, a 19%
premium to global peers. Mundra Port+SEZ account for 85% of our PT.
 Capex intensity at Mundra Port to ebb. After incurring another Rs18-
20bn development capex at Mundra over the next two years, port capacity
will rise to 240MMT, including 100MMT coal terminal and 50MMT
container handling capacity, adequate for the current decade. Overseas port
projects are still nascent with no committed capex so far.
 Recent positives. Around end-March, ADSEZ finally managed to refinance
Abbot Point 1-yr US$2bn bridging loan (due in May-12), reducing exposure
to USD/AUD movement. Delayed end-use customer projects are on track
now: 9MMT HMEL Bathinda refinery and Tata Power’s 1st 800MW unit
were commissioned in Mar-12. Around end-Feb ADSEZ won a LoI from
nearby major port (Kandla) to set up a dry 20MMT dry bulk terminal. This
should assuage investor concerns as last year the company’s bids to set up
terminals at 3 locations were denied security clearance.
 Key downside risks. Alleged involvement of parent ADE in Karnataka
iron-ore mining related irregularities and unsubstantiated media reports
(Bloomberg) on alleged violation of foreign exchange rules by ADSEZ
have weighed on stock performance. These have been publicly denied by
management. Medium-term GDP slowdown and delay in power reforms
could adversely impact container and coal traffic growth projections.

Tata Motors, A challenger emerges - Initiate at BUY with 20% upside ::BNP Paribas

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A challenger emerges
CHANGE
Initiate at BUY with 20% upside potential
Tata Motor’s sales and profitability have increased nearly five-fold since
its acquisition of Jaguar Land Rover (JLR) in 2008. High-brand equity and
the planned near doubling of investment commitment in JLR to GBP1.5b
per year over the next five years should help Tata Motors sustain doubledigit
volume growth as well as earnings growth over FY12-14E.
CATALYST
Innovation and margins to support growth momentum
The company plans to launch over 40 models/variants in the next five
years, which we believe will help diversify growth momentum that is
currently largely dependent on the Range Rover Evoque model. EBITDA
margins should also remain above average (16-17%) to FY14, supported
by new launches, high volume growth and better capacity utilisation.
VALUATION
SoTP-based TP of INR360.00, with JLR valued at 3x EV/EBIDTA
Although Tata Motors shares have rallied sharply YTD in line with other
cyclical stocks, we anticipate further re-rating on improving free cash
flow and return on capital. Our 3x target FY14E adjusted EV/EBITDA for
the JLR business is at a premium to peers in the luxury-car segment to
reflect the prospects of market-share gains and higher earnings growth.

ING Vysya Bank- Improvement in fundamentals continues : Sunidhi

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ING Vysya Bank reported a PAT of `1273.9 mn up 40% yoy and 7% qoq. Bottom-line stood in line with our expectations. NII came off by 1.4% qoq due to a 20 bps sequential deterioration in the NIM which was largely seasonal in nature. Provisions increased sequentially despite asset quality improvement as the bank used one off tax deductions to shore up its coverage ratio.
NIM compresses by 20 bps sequentially
ING Vysya Bank reported a NIM of 3.3% for Q4FY12, which was a sequential NIM compression of 20 bps. The NIM deterioration was largely seasonal in nature on account of priority sector lending and subscription to RIDF bonds which led to a 9 bps qoq decline in the yield on advances. In FY13, the NIM is likely to be in line with that of the previous year.
Strong loan book growth led by PSL lending
Advances grew by 22% yoy and 9.3% qoq. Sequential loan book growth was led by the agricultural and rural banking business which grew by 18% yoy on account of priority sector lending. On a yoy basis loan book growth was led by the business banking division. Going ahead the loan book will continue to grow ahead of the industry.
Non-interest grows on the back of growth in forex and core fee income growth
Non-interest income increased by 15.4% yoy and 15.8% qoq. The increase in other income was on account of a strong growth in forex and core fee income.
Asset quality improves sequentially
The asset quality of the bank improved sequentially with %GNPAs coming off by 8 bps qoq though up 4.6% qoq on an absolute basis. Slippages came of sequentially and stood at `600 mn or a slippage rate of 0.9%. The bank used the onetime tax benefits that accrued to it during the quarter to shore up its provision coverage ratio. Hence provisions increased by 69% qoq which led to a 569 bps improvement in the PCR to 90.7%. Due to higher provisions, NNPAs came off by 35% qoq and %NNPAs came off by 12 bps sequentially to 0.2%. The bank has managed to maintain its asset quality despite strong growth in its SME portfolio.
Restructured book at 1.4% of advances
The banks restructured book stood at 1.4% of advances which stood largely in line with that of the previous quarter.
Valuation and view
At the CMP of `355 the bank trades at 1.3x its FY13E ABV and 1.1x its FY14E ABV. At these valuations the bank trades below its long term one year forward P/ABV multiple. The bank is a strong re-rating candidate given its sound asset quality and improving cost to income ratios which will lead to an improvement in return ratios going ahead.

Nestlé India -Gearing up for growth : Antique

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Nestlé India
Gearing up for growth
Nestlé India's performance has been below expectations with a further
slowdown in volume growth during 1QCY12 due to substantial price
hikes (13%). However, going ahead, over the next six months, we believe
that it would post a recovery in volumes with ramp up in marketing
spends and increase in distribution. Additionally, the rising awareness
for nourishment in the rural markets augurs well for the long-term growth
plans of the company. We maintain a HOLD recommendation.
􀂄 Net sales grew by 13.1% to INR20.5bn in the backdrop of a 13.7% growth in
domestic sales at INR19.5bn and 3.3% growth in export sales at INR1.01bn. In
our view domestic volume growth during the quarter has been almost flat.
􀂄 EBITDA grew by 19% to INR4.57bn and EBITDA margin expanded by 104bps to
22.3%. The improvement in EBITDA margin was on account of 301bps drop in
raw material cost to 45.8%. However, this improvement in EBITDA margin was
below our expectations due to a 90bps increase in staff cost to 7.6% of net sales
and 107bps increase in other expenses to 24.3% of net sales. The increase in staff
cost has been due to increase in headcount to support the company's expansion
initiatives. Additionally, the increase in other expenditure we believe has been
because of ramp up in marketing expenditure.
􀂄 Profit before tax grew by 14% to INR4.16bn while recurring PAT grew at a lower
rate of 10% to INR2.9bn due to an increase in effective tax rate by 248bps to
30.6% of PBT.
􀂄 Our channel checks suggest a substantial increase in marketing initiatives to fuel
strong growth in sales during the next three years backed by the capacity expansion.
Therefore, we believe that volume growth will recover over a period of six months
led by the substantial ramp up in operations and subsiding of the impact of the
price hikes. Additionally, the company's medium to long-term growth potential
remains strong with rising awareness of nourishment even in the rural markets.
Valuation and outlook
At the CMP of INR4,938, the stock is trading at a PE of 40.5x CY12e and 33x CY13e.
We believe that Nestlé India would witness a strong recovery in sales momentum
during CY13e backed by the ramp up in production and distribution. We therefore
upgrade our EPS estimates by 2.4% for CY13e to INR149.8. We maintain our HOLD
recommendation on the stock at the current levels with a target price of INR4,495

Geometric -One‐off marred, otherwise a decent quarter: Prabhudas Lilladher,

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Geometric posted a steady revenue growth in line with expectations, however
EBITDA margin deteriorated by 544bps QoQ to 12.5% due to extra ordinary items of
expenditure & currency fluctuation. In our upgrade note in the previous quarter, we
indicated presence in growth market, with focus on margins yielding stronger
performance. But this quarter performance marred our expectation due to volatility.
We retain ‘Accumulate’, with a TP of Rs80.
􀂄 Steady performance accompanied by lower than expected margins : Geometric
reported in-line revenue growth of 2.7% QoQ to Rs2.25bn (PLe: Rs2.21bn, Cons:
Rs2.20bn) and 5.4% QoQ in USD terms to $44.92m (PLe: $43.91m). EBITDA
margin dipped by 544bps to 12.5% (PLe: 17.4%, Cons: 16.5%), due to rupee
depreciation, higher utilization & extra ordinary items of expenditure. EPS degrew
by 39.9% QoQ to Rs2.04 (PLe: Rs3.23, Cons: Rs3.15).
􀂄 Two‐fold performance – Revenue growth and margin expansion: We believe
that the company’s strength in PLM and PES space is playing out well. The
company’s ability to cross-sell strength of different geographies has started
paying-off. We expect steady margin performance as these extra-ordinary is not
going to be part in FY13. The management didn’t give detail for extra-ordinary.
􀂄 Conference call highlight 1) Volume growth at ~5.1%, no change in pricing 2)
New contracts amounting to $11.71mn awarded during the quarter (Q3FY12 :
$3.55mn) 3) Total headcount is 4567 (Q3FY12: 4447) 4) Growth from emerging
verticals like ship building, Oil & Gas & Energy 5) Effective tax rate to be ~28%
for FY13 6) Fresher Hiring for FY13 to be ~200+ 7) DSO stood at 65.28 for
Q4FY12 (Q3FY12: 71.36)
􀂄 Valuation & Recommendation: We believe that Geometric’s operational
performance is expected to strengthen from here. We expect a steady revenue
performance for the company in FY13 with improved margins. We reiterate our
‘Accumulate’ rating, with a TP of Rs80, 6x FY13E earnings estimate.

IDEA CELLULAR LTD. Good results barring the one-off expense :Barclays Capital,

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IDEA CELLULAR LTD.
Good results barring the one-off expense
Idea’s Mar-12 quarter revenue of Rs53.7bn (+6.7% q/q) was in line with the strong
volume growth of 9.1% q/q, offsetting the RPM decline of 2.1% q/q. The EBITDA
margin decline of 140 bps q/q was due to one-off license and WPC charges, which if
normalised could have led to a margin expansion of about 120bps. Clearly, despite
increased aggression from Bharti, Idea has remained disciplined. While operating
performance has remained strong for Idea, our concerns on regulatory risks
(especially the potential impact of new spectrum pricing rules) force us to maintain
a more cautious stance. Maintain 2-EW rating with PT of Rs100, based on DCF.
Mar-12 results summary: Revenue growth came in line although the RPM decline
(-2.1% q/q) was slightly higher than expectations (-0.9% q/q) balanced by strong
volumes (+9.1% q/q, estimate +6.5% q/q). Margins were impacted by a one-off license
and WPC cost, which had a ~260bps negative impact. Despite this, net profit was 6%
ahead of our estimates on the back of forex gains and lower taxes.
Increasing competitive intensity, but the company remains disciplined: The decline
in RPM could be due to increased aggression from Bharti over past three months.
However, Idea’s disciplined approach to margins confirms our hypothesis that this is
unlikely to turn into another tariff war. We believe that operators would remain
disciplined both to repair the stretched balance sheet and to hoard cash for upcoming
spectrum auctions.
Don't ignore the regulatory risks: Idea’s superlative operating performance is a strong
positive in favour of the company. On the other hand, Idea’s smaller balance sheet
makes it more sensitive to any regulatory risk. The looming spectrum payments are the
biggest risk. However, the need to rebid for licenses in seven circles could strain the
cash flows in near term. We maintain our 2-EW stance with PT of Rs100.

Samvardhana IPO: All details: See here

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Issue Terms
Issue price / Floor Price (Rs)	113-118
Application per share (Rs)	113.00
Minimum investment amount (Rs)	5,650.00
Minimum bid (no of shares)	50 shares and in multiples of 50 thereafter
Maximum Shares for Retail	1750-1650

Saving on motor insurance premium ::Business Line

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With the Insurance Regulatory and Development Authority increasing third-party premium rates, the cost of motor insurance has increased. Annual premium on third-party insurance of a Ford Figo or a Maruti Swift was Rs 800 two years back, compared with Rs 925 today.

The insurance premium on a motor vehicle consists of two parts: own damage premium (covers damage of the insured vehicle) and third-party premium (covers damage to a third party and/or its vehicle). While own damage (OD) premium is determined by a vehicle's insured declared value (value of the vehicle after depreciation), third-party premium (TPP) is fixed by the Authority and depends on the volume of the vehicle.

Here are three ways in which you could save on your premium outgo for motor insurance policies.

A NO-FRILL POLICY

 Most private general insurers offer motor insurance polices online. This could save almost 10-15 per cent of the total premium on the vehicle. The other way to save substantially is by taking a basic cover.

Motor insurers today offer riders like an accident cover, cover for loss of personal belongings, cover for consumables such as nuts, bolts, etc., with the main policy. Though these provide additional cover, do not blindly take all of them; riders come with an added premium. For instance, with ICICI Lombard the total premium on a basic petrol version of a new Ford Figo is Rs 10,418. If you take an additional cover for Rs 30,000 on electrical and non-electrical accessories (generally excluded from a basic policy), the annual premium would rise by Rs 966 to Rs 11,384.

The premium outgo can be reduced also if the policyholder agrees to share a part of the claim, called voluntary deductible. With Bajaj Allianz a policyholder who is willing to share an amount of Rs 5,000 of the claim can see the policy premium (OD) reduce by almost 25 per cent (subject to a maximum of Rs 1,500).

THE NO-CLAIM BONUS

No-claim bonus is the incentive given to the policyholder for his safe driving habits. For one year of no claim on the policy, one will get a 20 per cent discount on the OD premium. This discount rises to 50 per cent when there are no claims for five consecutive years. So do not niggle your insurer with claims such as a scratch on your car's door that may require a minor painting work. Also remember that no-claim bonus is transferrable. In case you sell your vehicle and buy a new one, you can set off the accumulated bonus against the premium of the new vehicle.

ELIGIBLE FOR DISCOUNT?

 Insurers provide discount on OD premium if anti-theft devices approved by the Automobile Research Association of India are installed. Continuing on the above example of a new Ford Figo car, ICICI Lombard gives a discount of Rs 206 for vehicles installed with an anti-theft alarm. Bajaj Allianz provides a discount of around 2.5 per cent of the premium up to a maximum of Rs 500. Some insurers such as HDFC ERGO give discounts to vehicle owners who are in the medical profession or in Central Government service. So, when making an online purchase, provide information about your background. Being a member of recognised automobile associations can also get you discounts on premium.

Nestlé India Hold Target Price: Rs4,428 :: Centrum

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Nestlé India

Hold

Target Price: Rs4,428

CMP: Rs4,700         

Downside: 5%

Expensive valuations

We believe Nestlé India’s revenue CAGR of 19.8% over CY11-14E will be ahead of other non-food companies driven by high market share, low penetration in high growth categories across baby food, dairy whiteners, noodles and chocolates. We are also bullish on the food processing sector in the country and believe leaders including Nestlé would benefit the most with changing consumer behavior. But, high capex driven debt could impact profitability in the near term. At current valuation we believe volume growth risk is not priced in the stock and there is little room for earnings disappointment. Hence we initiate coverage with a HOLD rating on the stock.

m  Volume growth to bounce back: We expect volume growth to bounce back to CY10 levels after it posted a meagre 6.8% in CY11, the lowest since CY06. Volume growth dipped further in Q4CY11 to mere 1.5% on the back of de-growth of11% in chocolate & confectionary and 3.7% in milk products as thre was a ban on exports of milk products. Grammage reduction in noodles and chocolates segment due to raw material price increase and deliberately discouraging sales in the éclair segment due to its low margin profile also affected growth. Sales to CSD channel were low and high milk cost impacted volumes in the milk segment. Addition of new capacities in each segment would help in launching new products and increase supply of premium products. Widening distribution reach would also help in volume growth going forward.
m  Financials: We expect revenue to grow at a CAGR of 19.8% over CY11-14E to Rs128bn in CY14 on the back of ~16% volume growth while operating profit is set to grow at a CAGR of 19.5% over CY11-14E to Rs26.52bn in CY14E on the back of steady gross margins and operating margins. RoCE is expected to moderate significantly as the company raised Rs9.7bn debt to fund its capex. It raised ECBs loan of $136Mn from its parent Nestlé S.A. for a 5-year period. Due to high capex, the company has capped its dividend at Rs48.5/share over past three years; however this is expected to increase from CY12.
m  Stretched Valuations: Nestlé India’s current valuation is expensive as it trades on a one-year forward rolling P/E of ~33x, which is high compared to its long-run 10 year average of 25x, 5 year average of 28x and 3 year average of 32x. Relative to Sensex the stock is trading at 160% premium compared to 10 year average of 65% premium. At 40x and 33x CY12E and CY13E PE, we believe risks are not priced in the stock and there is little room for earnings disappointment. We initiate coverage with a HOLD rating and a target price of Rs4,428 based on 31x CY13E EPS of Rs142.8 which is at 20% premium to long term average and 100% premium to Sensex PE.
m  Key risks: i) Premium pricing can impact volumes; ii) Competition intensifies to reduce market share; iii) High cost inflation to impact margins

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Stamp duty, part of acquisition cost ::Business Line

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I bought a residential apartment (under construction) in May last year for Rs 22.6 lakh. I took a loan from State Bank of India. Though the loan sanctioned was Rs 21 lakh, I have taken a disbursement of only Rs 15.5 lakh. The house is now ready for occupation. I have incurred a total cost of Rs 26.5 lakh till date (excluding the bank interest). Due to personal reasons I am selling the property now for 25 lakh. How do I show this loss in my income-tax filings?

Can I claim exemption for the bank interest I have paid? Can I claim the stamp duty I have paid for this property? The builder made me pay service tax and VAT, but did not give any receipts for that. What do I do? — Vadhi Sharat Chandra

We understand that the property is registered in your name as the stamp duty has been paid thereon. Accordingly, the expenditure incurred on the stamp duty will form part of the cost of acquisition while computing capital gain or loss on transfer of property.

Further, since the property is held for fewer than 36 months, it is a short-term capital asset and the loss from its sale would be shown as short-term capital loss under the head ‘capital gains' in the tax return and would be calculated as full value of consideration less cost of acquisition and cost of improvement (stamp duty, service tax, etc.). This loss can be set off against short-term or long-term capital gains of that financial year, if any. The remaining loss will be carried forward.

While computing the loss under the mentioned head, the bank interest paid will not be allowed as deduction as there are separate provisions for allowing the subject interest while computing income under the head ‘income from house property.'

The service tax and VAT paid by you on account of service received are allowed as deduction while computing capital gain or loss on transfer of property. However, in the absence of receipts it will become difficult to substantiate the amount claimed, if the tax return is picked for assessment in future.

Q4FY12 Result update/Estimate change Maruti Suzuki : Centrum

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Q4FY12 Result update/Estimate change

Maruti Suzuki

Buy

Target Price: Rs1,577

CMP: Rs1,397

Upside: 13%

Operating performance to improve; Maintain Buy

Maruti Suzuki India Limited’s (MSIL)'s 4QFY12 operating results were largely in-line with our estimates with EBITDA margins at 7.3% (60bps impact on account of variable pay to employees; employee cost at Rs.2.6bn vs. est. Rs.2.1bn) compared to our estimate of 7.8%. However, adjusted PAT stood higher at Rs.6.4bn compared to our estimate of Rs.5.65bn due to higher than expected other income (Rs.2.97bn vs. est. Rs.1.6bn). Driven by favorable product mix net realization moved up by Rs.12,000 QoQ. We continue to remain positive on the stock and expect strong growth in FY13E to be driven by the diesel portfolio and the recent launch of Ertiga. Also we expect operating performance to improve from current levels. We continue to maintain Buy rating on the stock with revised TP of Rs.1,577 (earlier Rs.1,307) as we roll forward our valuations to FY14E basis.

m  Operating results in line; PAT beats expectation: MSIL registered 16%/50% YoY/QoQ revenue growth in 4QFY12 to Rs115bn. The discounts per unit for 4Q stood at Rs.13,493 compared to Rs.12,500 in 3Q largely to push petrol models. Despite this due to higher contribution from diesel models, the net realizations for the company moved up by Rs.12,000 QoQ. EBITDA margin contracted 268bps YoY, however expanded by 203bp QoQ. Employee costs were 22% higher than expectations on account of the variable pay given to the employees (impacted EBITDA margins by 60bp). However, adjusted PAT stood higher at Rs.6.4bn compared to our estimate of Rs.5.65bn due to higher than expected other income (Rs.2.97bn vs. est. Rs.1.6bn).

m  Conference call highlights: 1.) the company indicated it would increase diesel-engine capacity to 450K by 2HFY13E and to 600K by 2HFY14E from 300K in FY12. It plans to spend Rs17bn on diesel-engine capacity expansion in Gurgaon. To add to its own capacity of 300,000 diesel engines, the company will source 100,000 diesel engines from Fiat India 2.) The recently launched “Ertiga” in the MPV space has been well received and the company indicated an order book of 22,000 units for the model. Positively 85% of the bookings are for the diesel variant. 3.) The company has covered 40% of its direct and indirect Yen exposure and indicated that the rate at which the company has taken cover is  more favourable than current rates. 4.) For FY12 the management indicated that Petrol portfolio for the industry registered a volume drop of 14% over FY11, while the diesel portfolio registered a strong volume growth of 37% over FY13E. Management expects this trend to continue going forward as well. 5.) The company has a total capacity of 1.6 mn vehicles and it plans to increase this to 1.85 mn by the end of FY2013.

m  Valuations and Recommendations: At the CMP of Rs1,397, the stock is currently trading at 15.6x FY13E EPS of Rs.89.5 and 13x FY14E EPS of Rs.107. We reiterate BUY rating with a revised target price of Rs1,577 (core business valued at 14x FY14E earnings + Rs78 as value of investments in subsidiaries + Rs317 value of cash and cash equivalents).

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Stock Strategy: Negative bias seen on Coal India, SAIL ::Business Line

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Investing with noble intent ::Business Line

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There are few who believe in the theory that you must give back to the society that you have taken from it. For such investors, ‘Impact Investing' is suggested which is an amalgamation of philanthropy and equity investing. Such form of investing lets you earn profits while also providing the satisfaction that you have improved the lives of many.

MANY MOTIVATORS

Impact Investing provides an intentional social and/or environmental goal. It is the latest jargon in social impact arena. ‘Impact Investing' coalesces around a core idea which helps it to gather more gas and dust from diverse players, each with a common vision and goal.

It is an emerging hybrid of philanthropy and private equity. There have been instances where social impact bonds have become a part of impact investing and are on the way to achieve their social plus financial goals. The later section will help us in understanding how they have impacted individuals' lives.

HOW BIG IS IT?

A report by Monitor Institute, a think tank and the research arm of Monitor estimated in 2009 that impact investing could grow to account for one per cent of assets under management globally, about $500 billion, over the next five to ten years.

Another study led by Mr Nick O'Donohoe of J.P. Morgan and Mr Antony Bugg-Levine of the Rockefeller Foundation suggest that five broad social sectors — water, health, housing, education and financial services — could absorb $400 billion to $1 trillion in capital and generate $183 billion to $667 billion in profits.

So, the question arises — would there be a rush among centa-millionaires (individuals having $100 million of investible surplus) and Ultra High Networth Individuals whose numbers are rising exponentially all over globe particularly in South East Asia? Would Public Private Partnerships (PPP) be actively involved in this? Does the practice of enterprise philanthropy fits into it?

AREAS

In hindsight, there are some sectors which directly come under the purview of impact investing — water, health, housing, education and financial services. However, there are others too — agriculture and energy which fit into it. One may find impact capital in large but can it be scaled? Would we be able to see ‘the next microfinance revolution' all the way from idea to scale in other social sectors as mentioned?

Who are active — globally and in India?

Globally impact investing is a known market where the philanthropists put their impact capital and the capital goes towards creating a better life. In return, some look for financial returns plus the positive impact. In UK, social impact bonds rely on private-sector funding which helps in tackling recidivism — the problem of repeat offenders.

ACUMEN FUND

The well known face is the Acumen Fund, a pioneer among impact investors which is present in India also making efforts to increase the smile on the faces of direct beneficiaries with the help of direct contribution from impact capital contributors.

The fund bought shares worth $2.5 million from Ziqitza Healthcare which started an ambulance service in Mumbai and expanded to Rajasthan, Punjab, Bihar and Kerala. Ziqitza's charges vary depending upon the patients' ability to pay.

The poorest patients, usually those seeking admission to the general wards of Government-run hospitals, pay half the standard rate. Around 20 per cent pay nothing. Because of Ziqitza's mass services to society, they have won more than $80 million in Government contracts which itself says that the blueprint can be scaled.

Another story is based in a distant village of Bihar where Husk Power Systems (HPS) started by a group of individuals who pared their foreign dreams and electrified the life of many villagers who had not seen electricity in their life. Yes, it comes at a cost which they are happily ready to pay. HPS uses innovative technology to convert abundant rice husks into energy that provides power.

The technology has covered 150 villages and plans to cover 20,000 villages for which they require the impact capital. The return may be slow and distant but the changes and smiles are visible on the faces of the villagers.

RETAIL SCALE

There are many other examples where big ticket impact capital is involved.

However, on retail scale, one can invest in many NGOs and social institutes which are actively involved in changing the faces. In 2011, HDFC Mutual Fund launched HDFC Debt Fund for Cancer Cure where the dividends proceeds from the fund would be eligible for deduction under Sec 80G and the proceeds would be utilised by Indian Cancer Society (ICS) to financially assist underprivileged cancer patients in meeting their astronomical treatment costs.

In this joint initiative, investors are also happy as they are contributing to the society. So, selecting the business model and entrepreneur is very important with more stress on the entrepreneur. Rightly said, business models can always change, but it is harder to change entrepreneurs.

Microfinance brought revolutionary changes in under-financed areas; however, it acquired negative traits as the efforts got disoriented ignoring the masses and their life. So, it is very important that there should be proper ‘if' and ‘but' if the project is oriented towards a social cause.

Happy Impact Investing!

(The author is Senior Manager, Third Party Products Research, Motilal Oswal Securities Ltd. The views are personal)

Samvardhana Motherson Finance IPO: All you need to know

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Samvardhana Motherson Finance Limited
	*Non-Retail investors i.e. QIB and Non-Institutional Investors Bidding for more than 2 lac shall mandatorily use ASBA facility
Symbol - Series	SMFL EQ
Issue Period	May 2,2012 to May 4,2012
Post issue Modification Period	May 5,2012
Issue Size	Public offer of [.] equity shares of Rs.10 each aggregating to 16650 million.(including Anchor Portion of 193,06,900 equity shares)
Issue Type	100% Book Building
Price Range	Rs 113 to Rs 118/-
Face Value	Rs.10/-
Tick Size	Re. 1/-
Market Lot	50 Equity Shares
Minimum Order Quantity	50 Equity Shares
IPO Grading	IPO GRADE 4
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	Standard Chartered Securities (India) Limited, J.P. Morgan India Private Limited
Syndicate Member	Standard Chartered Securities (India) Limited, J.P. Morgan India Private Limited
Categories*	FI, IC, MF, FII, OTH, CO, IND, NOH and SHA
No. of Cities with Bidding Centers	60
Name of the registrar	Link Intime India Private Limited
Address of the registrar	C-13, Pannalal Silk Mills Compound L.B.S. Marg, Bhandup (West) Mumbai 400 078 Maharashtra, India
Contact person name number and Email id	Sanjog Sud, +91 22 25960320, sml.ipo@linkintime.co.in
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
Anchor Allocation Report	Click Here