Sharda Cropchem shares trade 50% higher in grey market: Financial Express

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Posted online: Thursday, Sep 11, 2014 at 0000 hrs
Mumbai : While Sharda Cropchem’s IPO closed on Tuesday after getting subscribed nearly 60-times, the company’s shares were quoting a premium of Rs 65-75 in the IPO grey market, said sources. Grey market is a pseudo over-the-counter market where IPO shares are traded before they are officially listed on a stock exchange.



Analysts, however, feel the premium is not justified. “The interest in Sharda Cropchem shares has been due to the grey market premium, even as fundamentals of the company do not justify the valuations,” said SP Tulsian, a Mumbai-based independent analyst. The Rs 350-crore public issue of the agrochemical company was priced at Rs 145-156 a share. The company's shares are trading as much as Rs 75 higher in the grey market, which amounts to a 48.07% premium on the upper price band of the issue.
The public issue, the biggest so far in FY15, received bids for 114.9 crore shares as against 1.91 crore shares on the offer, according to data available on NSE on Tuesday.
Dealers say that going ahead, the premium could be influenced by the allotment process. “Depending upon how many shareholders get allotted, the premium could decrease or increase. However, the premium is expected to remain at least Rs 50 till the listing,” a grey market dealer said.
The non-institutional category was subscribed 251.35 times, exchange data showed. Bids for more than 85.03 crore shares were received against 33.83 lakh shares on offer. Qualified institutional buyers (QIBs) bid for 32.06 times. Institutions bid for 25.31 crore shares against 78.94 lakh shares reserved for the category. The retail book was subscribed 5.83 times as investors bid nearly 4.61 crore shares against 78.94 lakh shares that were on offer. Edelweiss Financial Services and IDFC Securities were the lead managers of the issue. The total amount raised through public issues in FY15, including Sharda Cropchem’s IPO, is estimated at Rs 727 crore. Earlier, Wonderla Holidays and Snowman Logistics raised Rs 180 crore and 197 crore, respectively. Both IPOs received good response with the Wonderla Holidays getting subscribed 38 times, while the Snowman Logistics issue was subscribed 60 times.


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Appreciation of rupee key for Indian markets to rally:: Anoop Bhaskar, the head of equity at UTI Mutual Fund in FE

A weakening rupee is a big negative for the market, says Anoop Bhaskar, the head of equity at UTI Mutual Fund. In an interview with Ashley Coutinho, he says investors should not try to time the market, but invest systematically over the next 12-18 months.

Your outlook on Indian equities...

Two weeks ago, the mood was very despondent. Now, things are looking up a bit. Growth expectations have been toned down and expectations for earnings growth have come down over the past three quarters. There is a belief that the government’s inaction on the policy front has hurt the economy. I believe the rupee depreciation is a very big negative for the market. The rupee has to be stable with an upward bias for the markets to rally from here on. There are very few examples, if any, of an emerging market where the domestic currency kept weakening yet the market received robust overseas inflows. The rupee will appreciate over the next few months if global crude oil prices continue to fall, the global situation doesn’t deteriorate, RBI takes some action to cut interest rates and government takes decisions on issues that really need fixing. This appreciation (of the rupee) can then become the foundation on which our markets rally.

Inflows into gold ETFs at 5-yr high.: Financial Express

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Net inflows into gold exchange-traded funds (ETFs) for the financial year 2012 were the highest in the last five financial years as muted returns in most other asset classes and an uncertain outlook for the world economy prompted risk-averse investors to flock to the yellow metal.

Net inflows into gold ETFs for FY12 amounted to R3,646 crore, a 59% increase over the R2,289 crore garnered in the previous fiscal, data from industry body Amfi shows.

The figure is 43 times more than the amount collected in FY09, the year the global financial crisis shook world markets. Assets under management (AUM) for the category in FY12 have more than doubled over that in the previous fiscal, and multiplied more than 20 times in the past five years.

“Risk aversion among investors was pretty high for much of last year, which made them turn to gold, which is perceived as a safe haven,” said Nitin Rakesh, CEO, Motilal Oswal Asset Management Company. He added that the bull run in the yellow metal also made the yellow metal attractive: “Investors tend to flock to asset classes that are doing well.”

Gold ETFs as a category gave returns of about 34% for the financial year 2012, according to data compiled by Value Research. Gold prices appreciated as much as 35% in the period, touching R28,040 on the last day of the year.

Currently, a dozen gold ETFs are in operation.

According to Kishore Narne, senior VP and head —currency & commodity—Anand Rathi Securities, the psychological affinity Indians have towards gold made them invest in the commodity despite the sky-high prices.

“Gold has been the best performing asset over the past 10 years. It is a hedge against inflation, which has remained stubbornly high in the past two years,” said Mahendra Jajoo, CIO —fixed income— Pramerica Asset Managers.

Compared to gold, most other asset classes underperformed last year. For instance, industrial metal silver slipped 1%, while Indian equities as measured by the benchmark BSE Sensex slipped by more than 11% during the year. Debt fared better, with average category returns for FY12 clocking a little over 9%. According to market participants, Indian investors have grown more comfortable with investing in gold ETFs over the past two years.

This change in mindset, in turn, encouraged several fund houses to launch gold ETF products over this period. More specifically, inflows into this category last year were boosted by the launch of several gold fund of funds.

“At least 8-9 gold fund of funds were launched last year, which gave a significant boost to the assets under management of gold ETFs,” pointed out Rakesh.

Market participants believe that inflows into gold ETFs are likely to remain robust going forward unless the equity market starts outperforming. According to a recent statement by Thomson Reuters GFMS, one of the world’s leading economics consultancies in precious metals, the more-than-decade-long bull run in gold may come to end in early 2013 if prices touch new highs.

22nd October 2010: Morning News (click on link to read article) complied by IFCI reserach

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Morning News (click on link to read article)

Economic Times		Business Standard
Ø  Tata Motors loses two top dealers to rival cos Ø  ACC profit nosedives 77% to Rs. 100 cr Ø  ONGC asserts right to approve Cairn deal Ø  HCC ties up loans for Rs. 3,300-cr projects Ø  Seafood exports up on US demand Ø  Group linked to BJPs Mittal may face Fema probe Ø  PADA project may stay with TCS		Ø  Irda suspends universal policies Ø  Toyota to take on Maruti with Etios Ø  MOIL plans IPO for 20% sale in November-end Ø  Toyota to recall 1.53 mn cars Ø  Goldman Sachs may repay Buffett's $5-billion stake Ø  TVS Motor net zooms 123% Ø  CCCL to raise Rs 250 cr from PE for infra arm
Business Line Ø  ACC, Ambuja Cements profits plummet in Q2 Ø  RPG Life Sciences to seal three tie-ups in Europe Ø  Rajasthan State Petro may tie up with GAIL Gas, HPCL Ø  Deccan Healthcare raises Rs 40 cr Ø  India Prayag to invest Rs 50 cr to expand retail foothold		Mint Ø  CIL collects 2.35 trillion, Sebi orders exit option Ø  Vodafone to launch India 3G services in Q1 2011 Ø  Toyota recalling 1.53 million cars globally Ø  Allahabad Bank net profit rises 21% Ø  US Export-Import Bank approves finance gurantee for Rel Power
Financial Express Ø  TCS Q2 result shows 32% rise in profit Ø  Delhi per capita income hits Rs 88,421 Ø  Ceat Q2 profit slips to Rs 15.27 cr Ø  P&G, Marico race to buy Paras Pharma Ø  Liquor sales in Delhi spike 25%		DNA Money Ø  MOIL scouting manganese ore mines overseas Ø  Fevicol maker says may jack up prices Ø  Street awaits reflux of $50 billion Coal India oversubscription cash Ø  SKS microfinance board meet today Ø  Luggage maker VIP shuns Delsey, to focus on own brands

 

Ocober 20th, 2010: Morning News (click on link to read article) complied by IFCI research

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Morning News (click on link to read article)

Economic Times		Business Standard
Ø   Aditya Birla Money MD quits after bets on Nifty go wrong Ø  Fidelity arm invests Rs 90 cr in Shreem Capacitors Ø  Aviation cos on a high as traffic grows 11% in Sept Ø  Premji to launch billion-$ endowment trust Ø  Traders in a mad scramble for Coal India,SBI issues		Ø  Emami to raise up to Rs 2,000 cr Ø  Citi's $2.2-bn Q3 profit fuels sector confidence Ø  BP to net $1.8 bn from asset sales Ø  RCF seeks Rs 150 crore from Railway Ministry Ø  Actis PE plans $500 million investment in 2010
Business Line Ø  Bajaj Auto's Q2 profit surges 69% on higher Pulsar, Discover sales Ø  Nippon Steel to make auto pipes at Rajasthan plant Ø  Rallis India to pay Rs 9 dividend Ø  GAIL loses Kakinada, Bhilwada pipeline project to GSPC-led team Ø  Sesa Goa pins hopes on Court ruling on iron ore export ban		Mint Ø  Markets drop 0.9%; Biocon hits record high Ø  Piramal Healthcare eyeing OTC acquisitions Ø  ICICI will lay off some BoR staff after five years Ø  HDFC Bank Q2 meets f0recast on strong credit demand Ø  MMFS raises $100 mn via QIP
Financial Express Ø  Coal India IPO subscribed 1.57 times Ø  Aegis buys BPO firm in Argentina Ø  Coal India net worth to jump by Rs 12K cr Ø  Mudra to sell 25% stake to E-Land Ø  PPSS demands withdrawal of Posco project		DNA Money Ø  HDFC Bank nets 33% growth in Q2 profit Ø  AstraZeneca drug may add Rs200 crore to Dishman topline Ø  L&T bags Rs1,450 crore order from DB Power Ø  NMDC in talks to acquire Russian mines for $400m Ø  Alok eyes Rs1,600 crore from realty deals

19th October- Morning News (click on link to read article)- IFCI compilation

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Morning News (click on link to read article)

Economic Times		Business Standard
Ø   Gurumani wants to attend SKS meet Sacked CEO Claims Hes Still A Director Ø  IndianOil may hit Street in Jan with Rs.19,000-crore offer Ø  Essar Oil back in the black with Rs.130-cr net Ø  Ranbaxys new sales drive fails to pay off Ø  India, US may ink $5.8-b aircraft deal ahead of Obamas visit		Ø  MGM, Lavasa ink MoU to set up amusement park Ø  BHP, Rio scrap their $116-bn JV Ø  BP to net $1.8 bn from asset sales Ø  GNRL plans expansion in oil exploration Ø  Emami to raise up to Rs 2,000 cr Ø  RCF seeks Rs 150 crore from Railway Ministry
Business Line Ø  Biocon, Pfizer in $350-million insulin marketing deal Ø  Panel majority for scrapping eco nod to Posco's Orissa project Ø  Apex court stays Sterlite's TN plant closure till mid-Dec Ø  Bharat Forge eyes coal mines overseas Ø  Su-Raj Group plans expansion, to invest Rs 200 cr in 3-5 years		Mint Ø  Tata to launch three utility vehicles by next year Ø  Biocon, Pfizer enter deal to market biosimilars Ø  Coal India float garners 34% subscription on first day Ø  Citigroup posts $2.2 bn profit, tops expectations Ø  NIIT Tech Q2 net up 3%; uncertainties remain
Financial Express Ø  Rate rises may hit banks after fine Q2 Ø  HDFC Q2 net profit up 22% at Rs 808 cr Ø  Citigroup profit jumps to $2.17 bn Ø  Adani to invest $7 bn in Oz project Ø  L&T Q2 net profit up 32 pct to Rs 765 cr		DNA Money Ø  Suryalakshmi plans Rs45 crore equity infusion Ø  Jindal Poly Films to double capacity; spend Rs1,600 crore Ø  Patni sees China BPO opportunity growing Ø  Govt plans MoU with US on shale gas; first round of bidding likely by 2011-end Ø  Standard Chartered Bank seeks nod to set up stock exchange