03 December 2012

Forthcoming IPOs


Chain of Tax Free Bonds & Equity IPOs are hitting the market in the coming days.
1. REC Tax Free Bonds - IPO open today
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  • Allotment on first come first serve basis.  
  • Interest rates for retail investors - 7.88% for 15 years & 7.72% for 10 years.
  • Retail investors can apply up to Rs.10 lacs.
  • 11.40% post tax return for investors in the 30% tax bracket.
2. Credit Analysis and Research Limited (CARE Limited) - 07/12/2012 to 11/12/2012
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  • Price band Rs.700/- to Rs.750/-.
  • Minimum application 20 shares and in multiples of 20.
3. Bharti Infratel Limited - 11/12/2012 to 14/12/2012
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  • Price band Rs.210/- to Rs.240/-. 
  • Rs.10/- discount for Retail applications. 
  • Minimum application 50 shares and in multiples of 50.  
Remember, a Demat account is compulsory for applying Equity IPOs

FII & DII trading activity on NSE and BSE 03-12-2012

CategoryBuySellNet
ValueValueValue
FII1955.341652.67302.67
DII1087.321423.26-335.94

 
 
 


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FII DERIVATIVES STATISTICS FOR 03-Dec-2012

FII DERIVATIVES STATISTICS FOR 03-Dec-2012 
 BUYSELLOPEN INTEREST AT THE END OF THE DAY 
 No. of contractsAmt in CroresNo. of contractsAmt in CroresNo. of contractsAmt in Crores 
INDEX FUTURES24989727.9233956978.9737695810987.25-251.05
INDEX OPTIONS3133709174.662907228527.81133512539215.11646.85
STOCK FUTURES382991110.23409091183.47105887130141.28-73.24
STOCK OPTIONS34952952.36384751056.32451421247.16-103.96
      Total218.60

 


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Coffee hovers above key long-term support:: Business Line


In this week’s dissector we take a closer look at the generic Coffee ‘C’ futures traded on the Intercontinental Exchange (ICE), it is the benchmark for coffee. It closed at 142.1 cents on Friday.
Ever since registering a high at around 300 cents in May 2011, coffee has been trending downwards. It has been on a long-term downtrend forming lower peaks and troughs. Coffee took long-term support at 150 cents in June this year and reversed upwards. However, this rally failed to sustain and move beyond its key resistance at 185 cents in July and October this year and started declining.

FUND TALK - What makes home loans attractive:: Business Line


Use any savings from income to invest in PPF and other debt investments. This ‘safe’ portion of your portfolio, protects against equity market swings. Borrowing and investing in property is a great way to create wealth for people with the regular income to service such loans.
I am 31. I have a two-and-a-half-year-old daughter. My wife also earns and our collective monthly income is Rs 1.35 lakh. My goals are to build a corpus of Rs 1 crore for my daughter's education in the next 16 years and Rs 3 crore for my retirement (at 60).
I would also like to buy a house in the next three years which may cost me Rs 50 lakh.
 I have been investing Rs 2,500 each in three MFs via the SIP route for the past two years: HDFC Top 200, DSP BR Top 100 Equity Reg- Growth and Birla SunLife Frontline Equity-Growth.
 I want to invest more. I am planning to increase my investment in HDFC Top 200 and DSP by Rs 2,500 each to make them Rs 5,000 each.
I am also planning to invest Rs 2,500 per month in IDFC Premier Equity Fund.
 I also invest Rs 1 lakh per year in PPF and have been investing in PPF for the past three years. I have a life insurance term policy of Rs 1 crore.
 Sreekanth Paladugu

IL&FS Transportation Networks: Buy:: Business Line


NBFCs — adding muscle to the business of moolah:: Business Line


It looks like non-banking financial companies are giving banks a run for their money, and could grab a few banking licences. But they face a few challenges too. Here’s taking stock.
Non-banking financial companies (NBFCs) have been stealing the thunder from banks in the past year despite rising costs and more stringent regulations. The profit growth of 24 major NBFCs in 2011-12 was 24 per cent as compared with 16 per cent for banks. This was on the back of loan books expanding 28 per cent for NBFCs while banks managed only 18 per cent.
The sector also managed to put its assets to much better use with a return on average assets of 2.7 per cent while that of the banking sector was 1.1 per cent. The balance sheets of NBFCs have expanded by 27 per cent compounded annually over the period 2008-09 and 2011-12.
How did NBFCs manage to do so well? Diversification of loan book seems to be one key answer.
Even as a falling industrial cycle led to lower industrial credit offtake, consumer loan demand remained intact. NBFCs played this trend by resorting to mergers and acquisitions with a vengeance, at rather modest valuations.
This consolidation may, in fact, arm a few NBFCs with a meaningful size to compete with banks when the new banking licences are issued. Given the regulatory challenges in the near term and strong rally in NBFC stocks, investors need to be selective while betting on the sector.

Wabco India: Book profits:: Business Line


Good profit margins, low debt, a market leadership position, and an edge in technology have helped the Wabco India stock sail through tough times for the auto industry. But with commercial vehicle (CV) sales continuing to be on a sticky wicket, it would be prudent for investors to book profits and exit the stock.
The company is a supplier of air and air-assisted brake systems for trucks and buses. The high-margin yielding Anti-lock Braking Systems (ABS) has been added to the product portfolio in the last few years.
Since our buy recommendation in June last year at Rs 982, the stock has shot up by 60 per cent to Rs 1,575 now. At this price, it trades at 20 times its trailing 12 month earnings and 18.5 times the estimated earnings for 2012-13. Considering the ongoing slowdown in the auto industry, near term upside for the stock seems limited.

Rural Electrification Corporation tax free bond deatils

Rural Electrification Corporation Limited
SymbolRECTF13
SeriesS1- [7.22% p.a.* - Tenure 10 years] {*Additional Incentive of 0.50% p.a. for category IV}
S2- [7.38% p.a.* - Tenure 15 years] {*Additional Incentive of 0.50% p.a. for category IV}
Issue Period03-Dec-2012 to 10-Dec-2012
Post issue Modification Period11-Dec-2012
Issue SizeRs. 1,000 crores with an option to retain over subscription aggregating up to shelf limit of Rs. 4,500 crores
Security TypeTax Free Secured Redeemable Non Convertible Bonds
PriceRs 1000
Face ValueRs 1000
Market Lot1 NCD
Minimum Application Value5 NCDs (Rs. 5,000) either taken individually or collectively
IPO GradingCRISIL AAA/Stable by CRISIL / CARE AAA by CARE / IND AAA by IRRPL and [ICRA] AAA by ICRA
Rating AgencyCRISIL Limited, Credit Analysis and Research Limited, India Ratings and Research Private Limited and ICRA Limited
IPO Market Timings10.00 a.m. to 5.00 p.m.
Lead ManagersA. K. Capital Services Limited, Enam Securities Private Limited,ICICI Securities Limited,Kotak Mahindra Capital Company Limited and SBI Capital Markets Limited.
Lead Broker ListClick Here
Special InstructionPlease note that Trading Member(s) of the Exchange who are not empanelled as Syndicate /Sub-syndicate are also eligible to participate in the bidding process
No. of Cities with Bidding Centers123
Name of the registrarKarvy Computershare Private Limited
Address of the registrarPlot No. 17 to 24, Vittal Rao Nagar, Madhapur, Hyderabad ? 500 081
Contact person name number and Email idMr. M. Murali Krishna/Mr. S. Balaji, Toll Free No.1-800-3454001; Tel: +91 40 4465 5000,recl.bonds@karvy.com
ProspectusClick Here
Application FormsClick Here
ASBA e-form linke-Forms
Branches of Self Certified Syndicate Banks (SCSBs) where syndicate / sub syndicate member to submit ASBA formClick Here
List of Escrow Banks branches where the Application Form shall be deposited by the Trading MembersClick Here

Veto Switchgears and Cables IPO Opens today



Issue Terms
 
Issue price / Floor Price (Rs)
48-50
Application per share (Rs)
48.00
Minimum investment amount (Rs)
144,000.00
Minimum bid (no of shares)
3000 shares and in multiples of 3000 thereafter
Maximum Shares for Retail
3000




SGX Nifty 5,915.50 +5.50:: Markets continue to go UP

SGX Nifty 5,915.50 +5.50::
SINGAPORE EXCHANGE
8:40 AM India time
Dec 3, 2012
Markets continue to go UP