Meanwhile the BSE Sensex was down 152.84 points or 0.85% on weak cues from
the global markets. US stocks dropped on Thursday, 14 February 2008, as the
credit crunch surfaced unexpectedly in the municipal bond market and after
the Federal Reserve Chairman Ben Bernanke said that he sees sluggish
economic growth ahead.
On BSE, 1.25 lakh shares of the scrip were traded. The stock had an average
daily volume of 17.57 lakh shares on BSE in past one quarter.
The scrip had touched a high of Rs 605 and a low of Rs 595 so far during the
day. The stock had hit a 52-week high of Rs 844 on 10 January 2008 and a
52-week low of Rs 371.25 on 16 March 2007.
The large-cap scrip had underperformed the market over the past one month
till 14 February 2008, declining 16.66% compared to the Sensex's decline of
10.58%. It also underperformed the market in the past one quarter, declining
13.85% compared to Sensex's fall of 9.81%.
India's second largest listed telecom firm by sales has an equity capital of
Rs 1032 crore. Face value per share is Rs 5.
At the current price of Rs 599.50, the scrip trades at a PE multiple of
70.86, based on Q3 December 2007 annualised EPS of Rs 8.46.
As per reports, Reliance Communications is interested in building a
significant IT business and acquisition of Capgemini would give it access to
a client base in continental Europe and catapult it among the world's top
ten IT groups by market share. The media reports said that both Reliance
Communications and Capgemini declined to comment.
Reliance Communications' net profit fell 43.4% to Rs 436.48 crore on
11.8%rise in sales to Rs
3403.52 crore in Q3 December 2007 over Q3 December 2006.
Reliance Communication provides telecommunication services. The company
provides wireless, wire line, voice, data and Internet communication
services.
Source: Capital Market
Wednesday, February 20, 2008
REC Report
It's a difficult time to be recommending a SUBSCRIBE on any IPO, but REC (Rural Electrification Corporation) seems to be a deserving exception. Here's an IPO note on the company.
Mandated by the government of India to lend to the power sector, REC's focus so far has been on the T&D space as opposed to its larger cousin PFC's generation focus. Growing its loan book is definitely not a worry for this company, as the power sector is a key thrust area for the 11th and 12th five year plans. I would expect a minimum of 25% loan book growth, and high asset quality.
And this in spite of the fact that it lends almost entirely to PSUs. Why ? Simple, after years of loss making operations, most SEBs are aggressively reforming with generation, transmission and distribution operations sliced out into different entities. Financial and operational reform are the two pillars on which may sick SEBs are being revived. Add growth to this situation, and you have a sweet spot for lenders. Let's face it : there's nothing more attractive for lenders than ten straight years of growth and almost no worry on asset quality.
My worry is on sustainability of spreads. The company's NIMs (net interest margins) are very healthy, at over 3%. The offered reason is the long tenure lending that it does, aided in ample measure by the tax free bonds that it can issue to depositors. Some of this charm will get eroded now that government has mandated a ceiling of Rs 50 lacs for any entitiy investing in these bonds. The company claims that interest margins will still not erode significantly, since fee incomes will begin soon and it will borrow from banks at competitive rates. This is possible, because banks' provisioning is stricter for direct lending to projects as compared to the lenient provisioning norms when they lend to REC, PFC, etc. Let's see how this pans out for REC's interest margins...
Meanwhile, REC's basic return to shareholders (RoE) is consistently high at well above 20%. This is likely to level off to a shade under 20%, but remember there's headroom (debt : equity likely to fall to under 7 from over 8.9 in FY07, after the recent fund raising) to borrow more and push up RoE. After the encouraging half yearly showing and the IPO, REC's adjusted book value per share will rise to over Rs 58, so you are buying this stock for less than 2X ABV on an immediate basis. Even if H2 is the same as H1, REC should add at least six rupees per share to this ABV. And if in FY09 the company merely replicates its FY08 showing, it will have an ABV of over Rs 76.
All in all, a good company with a bright future, going public in relatively troubled times. If you can detach yourself from the near term market worries, you will see REC's business shining through and feel like applying. That's exactly what I intend doing !
Mandated by the government of India to lend to the power sector, REC's focus so far has been on the T&D space as opposed to its larger cousin PFC's generation focus. Growing its loan book is definitely not a worry for this company, as the power sector is a key thrust area for the 11th and 12th five year plans. I would expect a minimum of 25% loan book growth, and high asset quality.
And this in spite of the fact that it lends almost entirely to PSUs. Why ? Simple, after years of loss making operations, most SEBs are aggressively reforming with generation, transmission and distribution operations sliced out into different entities. Financial and operational reform are the two pillars on which may sick SEBs are being revived. Add growth to this situation, and you have a sweet spot for lenders. Let's face it : there's nothing more attractive for lenders than ten straight years of growth and almost no worry on asset quality.
My worry is on sustainability of spreads. The company's NIMs (net interest margins) are very healthy, at over 3%. The offered reason is the long tenure lending that it does, aided in ample measure by the tax free bonds that it can issue to depositors. Some of this charm will get eroded now that government has mandated a ceiling of Rs 50 lacs for any entitiy investing in these bonds. The company claims that interest margins will still not erode significantly, since fee incomes will begin soon and it will borrow from banks at competitive rates. This is possible, because banks' provisioning is stricter for direct lending to projects as compared to the lenient provisioning norms when they lend to REC, PFC, etc. Let's see how this pans out for REC's interest margins...
Meanwhile, REC's basic return to shareholders (RoE) is consistently high at well above 20%. This is likely to level off to a shade under 20%, but remember there's headroom (debt : equity likely to fall to under 7 from over 8.9 in FY07, after the recent fund raising) to borrow more and push up RoE. After the encouraging half yearly showing and the IPO, REC's adjusted book value per share will rise to over Rs 58, so you are buying this stock for less than 2X ABV on an immediate basis. Even if H2 is the same as H1, REC should add at least six rupees per share to this ABV. And if in FY09 the company merely replicates its FY08 showing, it will have an ABV of over Rs 76.
All in all, a good company with a bright future, going public in relatively troubled times. If you can detach yourself from the near term market worries, you will see REC's business shining through and feel like applying. That's exactly what I intend doing !
Kohinoor Broadcasting
*KOHINOOR BROADCASTING CORPORATION LIMITED*
*BSE Code: 531336*
*Book Value: Rs.15.95*
*Market Cap: Rs.104.14 Cr*
*Face Value: Rs.10*
*Market Performance: Out-performer*
*Target: Rs.70--Rs.80 in 12 -18 months time frame*
**
*Introduction: Kohinoor Broadcasting Corporation Ltd was incorporated by a
group of professionals with Mr. Harjinder Singh and Mr. Mangal Singh as key
promoters of the Company since its incorporation on 11 October 1994. During
2003 the Board decided to establish facilities for production of
advertisements, TV programmes music programmes and certain other
entertainment related activities. The Company is currently engaged in the
media and entertainment industry with a particular focus on the TV sector or
Visual Media *
*The Company has diversified in the production of TV programmes including
current affairs, music, serialised drama and other entertainment
programmes.The Company has got approval from Ministry of Broadcasting for
setting up earth station for up-linking the television channels. The Company
is setting up earth station and news studios at Rajpura and remote studios
in India at Delhi, Mumbai, Calcutta, Chennai and Jammu and outside India at
Dubai and London. In this regard, the designs have been finalised and the
equipment has been brought. The consultants have been appointed and they are
sourcing the space at the locations.*
*The Company shall also set up fifteen mobile studios for better coverage of
the events, which would be moving from one part to another. It is proposed
that each region shall have three mobile studios to cover on the spot. *
*Besides, the Company would have six mini vans cum mobile studio to cover
offices of the Chief Ministers of Punjab, Haryana, Himachal, Jammu & Kashmir
and Delhi in the first stage. The equipments have been identified. The
orders shall be placed in due course. The supply period is three months. *
*Shareholding Pattern: The promoter holding is at present very less and is
more or less managed by the Board of Directors like may other established
companies, who are doing well. But due to the high prospects of the company
going forward, the promoters are proposing to increase their stake through
private placements. The company has already informed about its desire to
offer, issue and allot up to 100,000,000 Equity Shares of Rs 10/- each on
private placement basis in one or more trenches to person resident outside
India, by way of Global Depository Receipts/American Depository Receipts or
Foreign Currency Convertible Bonds on such terms and conditions as may be
fixed by the Directors of the Company, subject to necessary provisions &
approvals. This is a very positive news on the company, since if a company
did not have fundamentals then it shoud not have gone for GDRs.*
*Financials: The company came out with excellent consolidated results (the
results including its overseas subsidiaries in Dubai and UK) for the
December, 2007 quarter
Though the total income of the Company in Q3FY08, remained flat to
Rs.52.05lakhs against
Rs.59.62 Cr in the same period previous year, but PBDT (Profit before tax
and depreciation) jumped to Rs.6.02 Cr as against Rs.1.09 Cr in the same
period previous year. For the nine months ended 31st December, 2008, the
PBDT came out to be Rs.12.40 Cr as against Rs.3.04 Cr in the same period
previous year. *
*For the Q3FY08, the Net Profits of the company zoomed to Rs.5.46 Cr against
Rs.76 lakhs in the same period previous year. The EPS for the Q3FY08 is
Rs.6.21 against Rs.2.33 in Q3FY07. This is remarkable considering that the
company had an EPS of only Rs.2.22 in FY07. *
*Triggers:*
*1. The company has received the equipment for Teleport to be set up at
Rajpura involving a capital outlay of Rs.5 Cr.*
*2. The company has placed the orders for play-out station to be set up at
Rajpura involving a capital outlay of Rs.10 Cr.*
*3. The company is in the process of making large scale recruitments of
manpower approx. 60 people for the production of content for its
entertainment channel. *
*4. The company has started producing buffer content for its forthcoming
News and Entertainment Channels.*
*5. The Company is coming up with 4 (four) New Channels which are as
follows:*
*a) KBC News--The popular Hindi New Channel*
*b)KBC Plus---The popular Entertainment Channel*
*c)KBC Gold--The popular Hindi/English/Regional Movie Channel and*
*v) KBC Profit--The popular Business Channel like NDTV Profit. *
*6.The company in principle has taken over M/S Tagore Theatres Ltd, a
multiplex valued at Rs.100 Cr. The company has appointed reputed agencies to
decide the Swap ratio for the proposed take over. *
*7. The company is opening new subsidiaries in Japan, Singapore and the USA.
The top company's officials were in the USA last month to finalise a deal
there. *
*8. The Company is likely to benefit from the DTH and CAS, which is bringing
a revolution in the media sector as a whole. *
*9. The promoters of the company are expected to increase their stake in the
company through a private placement, if the sources are to be believed. The
company has already announced that it will be conducting an EGM on 4 th
March, 2008, to offer, issue and allot up to 100,000,000 Equity Shares of Rs
10/- each on private placement basis in one or more trenches to person
resident outside India, by way of Global Depository Receipts/American
Depository Receipts or Foreign Currency Convertible Bonds on such terms and
conditions as may be fixed by the Directors of the Company, subject to
necessary provisions & approvals.*
*10. The Company proposes to invest an aggregate sum not exceeding Rs 200
Crores, in the equity shares of the Wholly Owned Subsidiaries (WOS) of the
Company viz. Kohinoor Broadcasting Corporation FZE and other subsidiaries to
be incorporated world wide notwithstanding that Such investment together
with the investment in all other bodies corporate may exceed 60% of the paid
up capital and free reserves or 100% of its free reserves whichever is more,
subject to necessary provisions & approvals. HENCE THE MEETING OF 4TH MARCH,
2008 IS VERY IMPORTANT. *
*Conclusion: Considering all the points mentioned above including the last
quarter EPS of Rs.6.21, it has been found that the scrip of Kohinoor
Broadcasting Corporation Ltd is highly undervalued and could purchased at
the CMP of Rs.8.98 for a target of Rs.70-Rs.80 in 12 to 18 months time
frame. But if the company is able to lauch its new Channels a little early
than the proposed dates and is able to open its overseas subsidiaries within
a short time, then the scrip could cross Rs.100--Rs.120 in the stipulated
time. This is a hidden gem in the media sector and a turnaround case like
Ispat Industries Ltd*
*BSE Code: 531336*
*Book Value: Rs.15.95*
*Market Cap: Rs.104.14 Cr*
*Face Value: Rs.10*
*Market Performance: Out-performer*
*Target: Rs.70--Rs.80 in 12 -18 months time frame*
**
*Introduction: Kohinoor Broadcasting Corporation Ltd was incorporated by a
group of professionals with Mr. Harjinder Singh and Mr. Mangal Singh as key
promoters of the Company since its incorporation on 11 October 1994. During
2003 the Board decided to establish facilities for production of
advertisements, TV programmes music programmes and certain other
entertainment related activities. The Company is currently engaged in the
media and entertainment industry with a particular focus on the TV sector or
Visual Media *
*The Company has diversified in the production of TV programmes including
current affairs, music, serialised drama and other entertainment
programmes.The Company has got approval from Ministry of Broadcasting for
setting up earth station for up-linking the television channels. The Company
is setting up earth station and news studios at Rajpura and remote studios
in India at Delhi, Mumbai, Calcutta, Chennai and Jammu and outside India at
Dubai and London. In this regard, the designs have been finalised and the
equipment has been brought. The consultants have been appointed and they are
sourcing the space at the locations.*
*The Company shall also set up fifteen mobile studios for better coverage of
the events, which would be moving from one part to another. It is proposed
that each region shall have three mobile studios to cover on the spot. *
*Besides, the Company would have six mini vans cum mobile studio to cover
offices of the Chief Ministers of Punjab, Haryana, Himachal, Jammu & Kashmir
and Delhi in the first stage. The equipments have been identified. The
orders shall be placed in due course. The supply period is three months. *
*Shareholding Pattern: The promoter holding is at present very less and is
more or less managed by the Board of Directors like may other established
companies, who are doing well. But due to the high prospects of the company
going forward, the promoters are proposing to increase their stake through
private placements. The company has already informed about its desire to
offer, issue and allot up to 100,000,000 Equity Shares of Rs 10/- each on
private placement basis in one or more trenches to person resident outside
India, by way of Global Depository Receipts/American Depository Receipts or
Foreign Currency Convertible Bonds on such terms and conditions as may be
fixed by the Directors of the Company, subject to necessary provisions &
approvals. This is a very positive news on the company, since if a company
did not have fundamentals then it shoud not have gone for GDRs.*
*Financials: The company came out with excellent consolidated results (the
results including its overseas subsidiaries in Dubai and UK) for the
December, 2007 quarter
Though the total income of the Company in Q3FY08, remained flat to
Rs.52.05lakhs against
Rs.59.62 Cr in the same period previous year, but PBDT (Profit before tax
and depreciation) jumped to Rs.6.02 Cr as against Rs.1.09 Cr in the same
period previous year. For the nine months ended 31st December, 2008, the
PBDT came out to be Rs.12.40 Cr as against Rs.3.04 Cr in the same period
previous year. *
*For the Q3FY08, the Net Profits of the company zoomed to Rs.5.46 Cr against
Rs.76 lakhs in the same period previous year. The EPS for the Q3FY08 is
Rs.6.21 against Rs.2.33 in Q3FY07. This is remarkable considering that the
company had an EPS of only Rs.2.22 in FY07. *
*Triggers:*
*1. The company has received the equipment for Teleport to be set up at
Rajpura involving a capital outlay of Rs.5 Cr.*
*2. The company has placed the orders for play-out station to be set up at
Rajpura involving a capital outlay of Rs.10 Cr.*
*3. The company is in the process of making large scale recruitments of
manpower approx. 60 people for the production of content for its
entertainment channel. *
*4. The company has started producing buffer content for its forthcoming
News and Entertainment Channels.*
*5. The Company is coming up with 4 (four) New Channels which are as
follows:*
*a) KBC News--The popular Hindi New Channel*
*b)KBC Plus---The popular Entertainment Channel*
*c)KBC Gold--The popular Hindi/English/Regional Movie Channel and*
*v) KBC Profit--The popular Business Channel like NDTV Profit. *
*6.The company in principle has taken over M/S Tagore Theatres Ltd, a
multiplex valued at Rs.100 Cr. The company has appointed reputed agencies to
decide the Swap ratio for the proposed take over. *
*7. The company is opening new subsidiaries in Japan, Singapore and the USA.
The top company's officials were in the USA last month to finalise a deal
there. *
*8. The Company is likely to benefit from the DTH and CAS, which is bringing
a revolution in the media sector as a whole. *
*9. The promoters of the company are expected to increase their stake in the
company through a private placement, if the sources are to be believed. The
company has already announced that it will be conducting an EGM on 4 th
March, 2008, to offer, issue and allot up to 100,000,000 Equity Shares of Rs
10/- each on private placement basis in one or more trenches to person
resident outside India, by way of Global Depository Receipts/American
Depository Receipts or Foreign Currency Convertible Bonds on such terms and
conditions as may be fixed by the Directors of the Company, subject to
necessary provisions & approvals.*
*10. The Company proposes to invest an aggregate sum not exceeding Rs 200
Crores, in the equity shares of the Wholly Owned Subsidiaries (WOS) of the
Company viz. Kohinoor Broadcasting Corporation FZE and other subsidiaries to
be incorporated world wide notwithstanding that Such investment together
with the investment in all other bodies corporate may exceed 60% of the paid
up capital and free reserves or 100% of its free reserves whichever is more,
subject to necessary provisions & approvals. HENCE THE MEETING OF 4TH MARCH,
2008 IS VERY IMPORTANT. *
*Conclusion: Considering all the points mentioned above including the last
quarter EPS of Rs.6.21, it has been found that the scrip of Kohinoor
Broadcasting Corporation Ltd is highly undervalued and could purchased at
the CMP of Rs.8.98 for a target of Rs.70-Rs.80 in 12 to 18 months time
frame. But if the company is able to lauch its new Channels a little early
than the proposed dates and is able to open its overseas subsidiaries within
a short time, then the scrip could cross Rs.100--Rs.120 in the stipulated
time. This is a hidden gem in the media sector and a turnaround case like
Ispat Industries Ltd*
World Economy and Indian Markets
The price of gold will soon make a new high(Although I will sell if I see $938 in next couple of days on intraday basis) People around the globe are running towards precious metals. Platinium makes a new record daily. Silver is outperforming gold. This all could be the economic indicators that we are overlooking. The overall economic scenario around the world looks fragile.Is it too late too talk about this now? What will happen next? what about the India growth story?
The Indian growth story is very much intact I would say but, the world growth tale(fable) doesn't looks so great. So we thought that the subprime crisis gave us the bad times. Hello! this could just be the start. The losses till date reported have come from the sell side firms only which could be around say $400 billion ++. But what about those players who are on the buy side. what about those who have bought these structured products (credit derivatives). They are yet to show up. Even in India it was reported that few banks would have been carrying these items in there portfolio(reported by NDTV profit). Is it over? Not yet. As the grapevine goes we are into the corrective wave of the five way Indian bull market(Elliott wave theory) and not to mention the gap the charts showing gap at around 14500 on the sensex(Indian Index).
What I want to bring to the notice is that there will be some trigger which could take the world markets for the surprise (Dont forget commodity market is also rallying esp. Precious and base metals). So this all need to correct. This happened in 2006 may when all the markets corrected. This time the trigger could be anything inflation, more losses could come out, could be budjet or it could even be Kosovo-Serbia clash.
Some how all this is not fitting right. People should invest keeping all this in mind and be catious. Technically everything needs a correction. We just need to identify are we with the trend or with the correction of that trend.
Any views are most Welcomed
The Indian growth story is very much intact I would say but, the world growth tale(fable) doesn't looks so great. So we thought that the subprime crisis gave us the bad times. Hello! this could just be the start. The losses till date reported have come from the sell side firms only which could be around say $400 billion ++. But what about those players who are on the buy side. what about those who have bought these structured products (credit derivatives). They are yet to show up. Even in India it was reported that few banks would have been carrying these items in there portfolio(reported by NDTV profit). Is it over? Not yet. As the grapevine goes we are into the corrective wave of the five way Indian bull market(Elliott wave theory) and not to mention the gap the charts showing gap at around 14500 on the sensex(Indian Index).
What I want to bring to the notice is that there will be some trigger which could take the world markets for the surprise (Dont forget commodity market is also rallying esp. Precious and base metals). So this all need to correct. This happened in 2006 may when all the markets corrected. This time the trigger could be anything inflation, more losses could come out, could be budjet or it could even be Kosovo-Serbia clash.
Some how all this is not fitting right. People should invest keeping all this in mind and be catious. Technically everything needs a correction. We just need to identify are we with the trend or with the correction of that trend.
Any views are most Welcomed
Pension fund savings may get tax-free
Pradeep Thakur & Sidhartha | TNN
New Delhi: Soon, there could be another reason for you to save for old age. The government may completely exempt investments in pension funds from taxes.
While money parked in pension funds at present entitles investors to a tax rebate at the time of investment and during the period it earns returns, a tax is levied at the time of withdrawal.
As a sweetener aimed at encouraging people to invest and also blunt the Left's opposition to the new pension system, the Pension Fund Regulatory & Development Authority has approached the finance ministry to treat investments in these instruments at par with employees provident fund and public provident fund, which enjoy complete tax waiver.
Sources said that the pension regulator has also pushed for raising the overall investment limit under section 80C of the Income Tax Act beyond the present level of Rs 1.1 lakh.
At present, PFRDA's interest stems from the Rs 3,000 crore that is sitting with the government and could flow into the stock and the debt markets over the next six to eight weeks. The money has been contributed by government employees as part of the contributory system that kicked in for those who joined service from January 1, 2004.
Sources said that with the sixth pay commission's report also expected to be implemented later this year, the government seemed favourably inclined to accept the proposal as it would push up the overall savings rate too. As part of the push to create more jobs, both Prime Minister Manmohan Singh and finance minister P Chidambaram have repeatedly pushed for higher savings rate, estimated at 34.8% at the end of 2006-07, to raise the level of investment in the economy.
In addition, companies have argued that in the absence of a social security system for people working in the private sector, whose numbers are rising rapidly, there is enough reason to encourage people to save in long-term instruments like pension products which can also be deployed in bonds that mature after 25-30 years. These bonds could be used to finance infrastructure projects.
New Delhi: Soon, there could be another reason for you to save for old age. The government may completely exempt investments in pension funds from taxes.
While money parked in pension funds at present entitles investors to a tax rebate at the time of investment and during the period it earns returns, a tax is levied at the time of withdrawal.
As a sweetener aimed at encouraging people to invest and also blunt the Left's opposition to the new pension system, the Pension Fund Regulatory & Development Authority has approached the finance ministry to treat investments in these instruments at par with employees provident fund and public provident fund, which enjoy complete tax waiver.
Sources said that the pension regulator has also pushed for raising the overall investment limit under section 80C of the Income Tax Act beyond the present level of Rs 1.1 lakh.
At present, PFRDA's interest stems from the Rs 3,000 crore that is sitting with the government and could flow into the stock and the debt markets over the next six to eight weeks. The money has been contributed by government employees as part of the contributory system that kicked in for those who joined service from January 1, 2004.
Sources said that with the sixth pay commission's report also expected to be implemented later this year, the government seemed favourably inclined to accept the proposal as it would push up the overall savings rate too. As part of the push to create more jobs, both Prime Minister Manmohan Singh and finance minister P Chidambaram have repeatedly pushed for higher savings rate, estimated at 34.8% at the end of 2006-07, to raise the level of investment in the economy.
In addition, companies have argued that in the absence of a social security system for people working in the private sector, whose numbers are rising rapidly, there is enough reason to encourage people to save in long-term instruments like pension products which can also be deployed in bonds that mature after 25-30 years. These bonds could be used to finance infrastructure projects.
MphasiS cuts 200 jobs in Chennai
RETRENCHMENTS are taking its toll on the Indian IT industry and the latest to join the list is MphasiS. The IT & BPO services company, which is part of the $22-billion EDS, has reportedly shed around 200 people. According to sources, MphasiS has retrenched 200 employees at its Chennai centre and all this in a span of two days last week.
MphasiS, in response to this development, said in a statement: "The query is speculatory and as per policy, MphasiS, an EDS company, does not respond to rumours and speculation." It further added, "MphasiS continues to hire people to meet business demands. The company has grown from an 11,000-employee organisation in 2006 to over 27,000-strong in 2007 and the trend will be similar in 2008."
It was not clear whether this retrenchment was restricted to the Chennai centre or covered other locations. Sources said the retrenchment was largely centered around the performance issue and it has probably affected those who were on the bench.
The recent cases of retrenchment in IT majors like TCS and IBM have centered around performance issues. However, industry observers feel it is very difficult to pinpoint whether it is performance issue or the weakness in the market which are forcing companies to take this step. At the same time, there has been a lot of flab built into a lot many companies and this could be an opportune time to cut costs as employee compensation accounts for around 40% of a typical IT services company's revenue.
According to reports, EDS' quarterly profit fell 13%, hurt by the loss of key customer Verizon Communications, which decided to handle its own technology work. Sales in the Americas declined 8%, and operating profit in the region tumbled 28%. MphasiS was one of the first Indian IT services companies to be acquired by an MNC IT company. EDS also later merged its India operations with MphasiS.
MphasiS, in response to this development, said in a statement: "The query is speculatory and as per policy, MphasiS, an EDS company, does not respond to rumours and speculation." It further added, "MphasiS continues to hire people to meet business demands. The company has grown from an 11,000-employee organisation in 2006 to over 27,000-strong in 2007 and the trend will be similar in 2008."
It was not clear whether this retrenchment was restricted to the Chennai centre or covered other locations. Sources said the retrenchment was largely centered around the performance issue and it has probably affected those who were on the bench.
The recent cases of retrenchment in IT majors like TCS and IBM have centered around performance issues. However, industry observers feel it is very difficult to pinpoint whether it is performance issue or the weakness in the market which are forcing companies to take this step. At the same time, there has been a lot of flab built into a lot many companies and this could be an opportune time to cut costs as employee compensation accounts for around 40% of a typical IT services company's revenue.
According to reports, EDS' quarterly profit fell 13%, hurt by the loss of key customer Verizon Communications, which decided to handle its own technology work. Sales in the Americas declined 8%, and operating profit in the region tumbled 28%. MphasiS was one of the first Indian IT services companies to be acquired by an MNC IT company. EDS also later merged its India operations with MphasiS.
IPO terminology
What is the difference between public issue and private placement?
When an issue is not made to only a select set of people but is open to the general public and any other investor at large, it is a public issue. But if the issue is made to a select set of people, it is called private placement. As perCompanies Act, 1956, an issue becomes public if it results in allotment to 50persons or more. This means an issue can be privately placed where an allotment is made to less than 50 persons.
What is an Initial Public Offer (IPO)?
An Initial Public Offer (IPO) is the selling of securities to the public in the primary market. It is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves way for listing and trading of the issuer's securities. The sale of securities can be either through book building or through normal public issue.
Who decides the price of an issue?
Indian primary market ushered in an era of free pricing in 1992. Following this, the guidelines have provided that the issuer in consultation with Merchant Banker shall decide the price. There is no price formula stipulated by SEBI. SEBI does not play any role in price fixation. The company and merchant banker are however required to give full disclosures of the parameters which they had considered while deciding the issue price. There are two types of issues, one where company and Lead Merchant Banker fix a price (called fixed price) and other, where the company and the Lead Manager (LM) stipulate a floor price or a price band and leave it to market forces to determi ne the final price (price discovery through book building process).
What does 'price discovery through Book Building Process' mean?
Book Building is basically a process used in IPOs for efficient price discovery. It is a mechanism where, during the period for which the IPO is open, bids are collected from investors at various prices, which are above or equal to the floor price. The offer price is determined after the bid closing date.
What is the main difference between offer of shares through book building and offer of shares through normal public issue?
Price at which securities will be allotted is not known in case of offer of shares through Book Building while in case of offer of shares through normal public issue, price is known in advance to investor. Under Book Building, investors bid for shares at the floor price or above and after the closure of the book building process the price is determined for allotment of shares. In case of Book Building, the demand can be known everyday as the book is being built. But in case of the public issue the demand is known at the close of the issue.
What is Cut-Off Price?
In a Book building issue, the issuer is required to indicate either the price band or a floor price in the prospectus. The actual discovered issue price can be any price in the price band or any price above the floor price. This issue price is called "Cut-Off Price". The issuer and lead manager decides this after considering the book and the investors' appetite for the stock.
What is the floor price in case of book building?
Floor price is the minimum price at which bids can be made.
What is a Price Band in a book built IPO?
The prospectus may contain either the floor price for the securities or a price band within which the investors can bid. The spread between the floor and the cap of the price band shall not be more than 20%. In other words, it means that the cap should not be more than 120% of the floor price. The price band can have a revision and such a revision in the price band shall be widely disseminated by informing the stock exchanges, by issuing a press release and also indicating the change on the relevant website and the terminals of the trading members participating in the book building process. In case the price band is revised, the bidding period shall be extended for a further period of three days, subject to the total bidding period not exceeding ten days.
Who decides the Price Band?
It may be understood that the regulatory mechanism does not play a role in setting the price for issues. It is up to the company to decide on the price or the price band, in consultation with Merchant Bankers.
What is minimum number of days for which a bid should remain open during book building?
The Book should remain open for a minimum of 3 days.
Can open outcry system be used for book building?
No. As per SEBI, only electronically linked transparent facility is allowed to be used in case of book building.
Can the individual investor use the book building facility to make an application?
Yes.
How does one know if shares are allotted in an IPO/offer for sale? What is the timeframe for getting refund if shares not allotted?
As per SEBI guidelines, the Basis of Allotment should be completed with 15 days from the issue close date. As soon as the basis of allotment is completed, within 2 working days the details of credit to demat account / allotment advice and despatch of refund order needs to be completed. So an investor should know in about 15 days time from the closure of issue, whether shares are allotted to him or not.
How long does it take to get the shares listed after issue?
It would take around 3 weeks after the closure of the book built issue.
What is the role of a 'Registrar' to an issue?
The Registrar finalizes the list of eligible allottees after deleting the invalid applications and ensures that the corporate action for crediting of shares to the demat accounts of the applicants is done and the dispatch of refund orders to those applicable are sent. The Lead Manager coordinates with the Registrar to ensure follow up so that that the flow of applications from collecting bank branches, processing of the applications and other matters till the basis of allotment is finalized, dispatch security certificates and refund orders completed and securities listed.
Does NSE provide any facility for IPO?
Yes. NSE's electronic trading network spans across the country providing access to investors in remote areas. NSE decided to offer this infrastructure for conducting online IPOs through the Book Building process. NSE operates a fully automated screen based bidding system called NEAT IPO that enables trading members to enter bids directly from their offices through a sophisticated telecommunication network.
Book Building through the NSE system offers several advantages:
The NSE system offers a nation wide bidding facility in securities It provide a fair, efficient & transparent method for collecting bids using the latest electronic trading systems Costs involved in the issue are far less than those in a normal IPO
The system reduces the time taken for completion of the issue process
The IPO market timings are from 10.00 a.m. to 3.00 p.m. On the last day of the IPO, the session timings can be further extended on specific request by the Book Running Lead Manager.
What is a Prospectus?
A large number of new companies float public issues. While a large number of these companies are genuine, quite a few may want to exploit the investors. Therefore, it is very important that an investor before applying for any issue identifies future potential of a company. A part of the guidelines issued by SEBI (Securities and Exchange Board of India) is the disclosure of information to the public. This disclosure includes information like the reason for raising the money, the way money is proposed to be spent, the return expected on the money etc. This information is in the form of 'Prospectus' which also includes information regarding the size of the issue, the current status of the company, its equity capital, its current and past performance, the promoters, the project, cost of the project, means of financing, product and capacity etc. It also contains lot of mandatory information regarding underwriting and statutory compliances. This helps investors to evaluate short term and long term prospects of the company.
What does 'Draft Offer document' mean?
'Offer document' means Prospectus in case of a public issue or offer for sale and Letter of Offer in case of a rights issue which is filed with the Registrar of Companies (ROC) and Stock Exchanges (SEs). An offer document covers all the relevant information to help an investor to make his/her investment decision.
'Draft Offer document' means the offer document in draft stage. The draft offer documents are filed with SEBI, atleast 21 days prior to the filing of the Offer Document with ROC/SEs. SEBI may specify changes, if any, in the draft Offer Document and the issuer or the lead merchant banker shall carry out such changes in the draft offer document before filing the Offer Document with ROC/SEs. The Draft Offer Document is available on the SEBI website for public comments for a period of 21 days from the filing of the Draft Offer Document with SEBI.
What is an 'Abridged Prospectus'?
'Abridged Prospectus' is a shorter version of the Prospectus and contains all the salient features of a Prospectus. It accompanies the application form of public issues.
Who prepares the 'Prospectus'/'Offer Documents'?
Generally, the public issues of companies are handled by 'Merchant Bankers' who are responsible for getting the project appraised, finalizing the cost of the project, profitability estimates and for preparing of 'Prospectus'. The 'Prospectus' is submitted to SEBI for its approval.
What does one mean by 'Lock-in'?
'Lock-in' indicates a freeze on the sale of shares for a certain period of time. SEBI guidelines have stipulated lock-in requirements on shares of promoters mainly to ensure that the promoters or main persons, who are controlling the company, shall continue to hold some minimum percentage in the company after the public issue.
What is meant by 'Listing of Securities'?
Listing means admission of securities of an issuer to trading privileges (dealings) on a stock exchange through a formal agreement. The prime objective of admission to dealings on the exchange is to provide liquidity and marketability to securities, as also to provide a mechanism for effective control and supervision of trading.
What is a 'Listing Agreement'?
At the time of listing securities of a company on a stock exchange, the company is required to enter into a listing agreement with the exchange. The listing agreement specifies the terms and conditions of listing and the disclosures that shall be made by a company on a continuous basis to the exchange.
What does 'Delisting of securities' mean?
The term 'Delisting of securities' means permanent removal of securities of a listed company from a stock exchange. As a consequence of delisting, the securities of that company would no longer be traded at that stock exchange.
What is SEBI's Role in an Issue?
Any company making a public issue or a listed company making a rights issue of value of more than Rs 50 lakh is required to file a draft offer document with SEBI for its observations. The company can proceed further on the issue only after getting observations from SEBI. The validity period of SEBI's observation letter is three months only i.e. the company has to open its issue within three months period.
Does it mean that SEBI recommends an issue?
SEBI does not recommend any issue nor does take any responsibility either for the financial soundness of any scheme or the project for which the issue is proposed to be made or for the correctness of the statements made or opinions expressed in the offer document. SEBI mainly scrutinizes the issue for seeing that adequate disclosures are made by the issuing company in the prospectus or offer document.
Does SEBI tag make one's money safe?
The investors should make an informed decision purely by themselves based on the contents disclosed in the offer documents. SEBI does not associate itself with any issue/issuer and should in no way be construed as a guarantee for the funds that the investor proposes to invest through the issue. However, the investors are generally advised to study all the material facts pertaining to the issue including the risk factors before considering any investment. They are strongly warned against relying on any 'tips' or news through unofficial means.
Foreign Capital Issuance
Can companies in India raise foreign currency resources?
Yes. Indian companies are permitted to raise foreign currency resources through two main sources: a) issue of foreign currency convertible bonds more commonly known as 'Euro' issues and b) issue of ordinary shares through depository receipts namely 'Global Depository Receipts
(GDRs)/American Depository Receipts (ADRs)' to foreign investors i.e. to the institutional investors or individual investors.
What is an American Depository Receipt?
An American Depositary Receipt ("ADR") is a physical certificate evidencing ownership of American Depositary Shares ("ADSs"). The term is often used to refer to the ADSs themselves.
What is an ADS?
An American Depositary Share ("ADS") is a U.S. dollar denominated form of equity ownership in a non-U.S. company. It represents the foreign shares of the company held on deposit by a custodian bank in the company's home country and carries the corporate and economic rights of the foreign shares, subject to the terms specified on the ADR certificate. One or several ADSs can be represented by a physical ADR certificate. The terms ADR and ADS are often used interchangeably. ADSs provide U.S. investors with a convenient way to invest in overseas securities and to trade non-U.S. securities in the U.S. ADSs are issued by a depository bank, such as JPMorgan Chase Bank. They are traded in the same manner as shares in U.S. companies, on the New York Stock Exchange (NYSE) and the American Stock Exchange (AMEX) or quoted on NASDAQ and the over-the-counter (OTC) market. Although ADSs are U.S. dollar denominated securities and pay dividends in U.S. dollars, they do not eliminate the currency risk associated with an investment in a non-U.S. company.
What is meant by Global Depository Receipts?
Global Depository Receipts (GDRs) may be defined as a global finance vehicle that allows an issuer to raise capital simultaneously in two or markets through a global offering. GDRs may be used in public or private markets inside or outside US. GDR, a negotiable certificate usually represents company's traded equity/debt. The underlying shares correspond to the GDRs in a fixed ratio say 1 GDR=10 shares.
Source:-NCFM
When an issue is not made to only a select set of people but is open to the general public and any other investor at large, it is a public issue. But if the issue is made to a select set of people, it is called private placement. As perCompanies Act, 1956, an issue becomes public if it results in allotment to 50persons or more. This means an issue can be privately placed where an allotment is made to less than 50 persons.
What is an Initial Public Offer (IPO)?
An Initial Public Offer (IPO) is the selling of securities to the public in the primary market. It is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves way for listing and trading of the issuer's securities. The sale of securities can be either through book building or through normal public issue.
Who decides the price of an issue?
Indian primary market ushered in an era of free pricing in 1992. Following this, the guidelines have provided that the issuer in consultation with Merchant Banker shall decide the price. There is no price formula stipulated by SEBI. SEBI does not play any role in price fixation. The company and merchant banker are however required to give full disclosures of the parameters which they had considered while deciding the issue price. There are two types of issues, one where company and Lead Merchant Banker fix a price (called fixed price) and other, where the company and the Lead Manager (LM) stipulate a floor price or a price band and leave it to market forces to determi ne the final price (price discovery through book building process).
What does 'price discovery through Book Building Process' mean?
Book Building is basically a process used in IPOs for efficient price discovery. It is a mechanism where, during the period for which the IPO is open, bids are collected from investors at various prices, which are above or equal to the floor price. The offer price is determined after the bid closing date.
What is the main difference between offer of shares through book building and offer of shares through normal public issue?
Price at which securities will be allotted is not known in case of offer of shares through Book Building while in case of offer of shares through normal public issue, price is known in advance to investor. Under Book Building, investors bid for shares at the floor price or above and after the closure of the book building process the price is determined for allotment of shares. In case of Book Building, the demand can be known everyday as the book is being built. But in case of the public issue the demand is known at the close of the issue.
What is Cut-Off Price?
In a Book building issue, the issuer is required to indicate either the price band or a floor price in the prospectus. The actual discovered issue price can be any price in the price band or any price above the floor price. This issue price is called "Cut-Off Price". The issuer and lead manager decides this after considering the book and the investors' appetite for the stock.
What is the floor price in case of book building?
Floor price is the minimum price at which bids can be made.
What is a Price Band in a book built IPO?
The prospectus may contain either the floor price for the securities or a price band within which the investors can bid. The spread between the floor and the cap of the price band shall not be more than 20%. In other words, it means that the cap should not be more than 120% of the floor price. The price band can have a revision and such a revision in the price band shall be widely disseminated by informing the stock exchanges, by issuing a press release and also indicating the change on the relevant website and the terminals of the trading members participating in the book building process. In case the price band is revised, the bidding period shall be extended for a further period of three days, subject to the total bidding period not exceeding ten days.
Who decides the Price Band?
It may be understood that the regulatory mechanism does not play a role in setting the price for issues. It is up to the company to decide on the price or the price band, in consultation with Merchant Bankers.
What is minimum number of days for which a bid should remain open during book building?
The Book should remain open for a minimum of 3 days.
Can open outcry system be used for book building?
No. As per SEBI, only electronically linked transparent facility is allowed to be used in case of book building.
Can the individual investor use the book building facility to make an application?
Yes.
How does one know if shares are allotted in an IPO/offer for sale? What is the timeframe for getting refund if shares not allotted?
As per SEBI guidelines, the Basis of Allotment should be completed with 15 days from the issue close date. As soon as the basis of allotment is completed, within 2 working days the details of credit to demat account / allotment advice and despatch of refund order needs to be completed. So an investor should know in about 15 days time from the closure of issue, whether shares are allotted to him or not.
How long does it take to get the shares listed after issue?
It would take around 3 weeks after the closure of the book built issue.
What is the role of a 'Registrar' to an issue?
The Registrar finalizes the list of eligible allottees after deleting the invalid applications and ensures that the corporate action for crediting of shares to the demat accounts of the applicants is done and the dispatch of refund orders to those applicable are sent. The Lead Manager coordinates with the Registrar to ensure follow up so that that the flow of applications from collecting bank branches, processing of the applications and other matters till the basis of allotment is finalized, dispatch security certificates and refund orders completed and securities listed.
Does NSE provide any facility for IPO?
Yes. NSE's electronic trading network spans across the country providing access to investors in remote areas. NSE decided to offer this infrastructure for conducting online IPOs through the Book Building process. NSE operates a fully automated screen based bidding system called NEAT IPO that enables trading members to enter bids directly from their offices through a sophisticated telecommunication network.
Book Building through the NSE system offers several advantages:
The NSE system offers a nation wide bidding facility in securities It provide a fair, efficient & transparent method for collecting bids using the latest electronic trading systems Costs involved in the issue are far less than those in a normal IPO
The system reduces the time taken for completion of the issue process
The IPO market timings are from 10.00 a.m. to 3.00 p.m. On the last day of the IPO, the session timings can be further extended on specific request by the Book Running Lead Manager.
What is a Prospectus?
A large number of new companies float public issues. While a large number of these companies are genuine, quite a few may want to exploit the investors. Therefore, it is very important that an investor before applying for any issue identifies future potential of a company. A part of the guidelines issued by SEBI (Securities and Exchange Board of India) is the disclosure of information to the public. This disclosure includes information like the reason for raising the money, the way money is proposed to be spent, the return expected on the money etc. This information is in the form of 'Prospectus' which also includes information regarding the size of the issue, the current status of the company, its equity capital, its current and past performance, the promoters, the project, cost of the project, means of financing, product and capacity etc. It also contains lot of mandatory information regarding underwriting and statutory compliances. This helps investors to evaluate short term and long term prospects of the company.
What does 'Draft Offer document' mean?
'Offer document' means Prospectus in case of a public issue or offer for sale and Letter of Offer in case of a rights issue which is filed with the Registrar of Companies (ROC) and Stock Exchanges (SEs). An offer document covers all the relevant information to help an investor to make his/her investment decision.
'Draft Offer document' means the offer document in draft stage. The draft offer documents are filed with SEBI, atleast 21 days prior to the filing of the Offer Document with ROC/SEs. SEBI may specify changes, if any, in the draft Offer Document and the issuer or the lead merchant banker shall carry out such changes in the draft offer document before filing the Offer Document with ROC/SEs. The Draft Offer Document is available on the SEBI website for public comments for a period of 21 days from the filing of the Draft Offer Document with SEBI.
What is an 'Abridged Prospectus'?
'Abridged Prospectus' is a shorter version of the Prospectus and contains all the salient features of a Prospectus. It accompanies the application form of public issues.
Who prepares the 'Prospectus'/'Offer Documents'?
Generally, the public issues of companies are handled by 'Merchant Bankers' who are responsible for getting the project appraised, finalizing the cost of the project, profitability estimates and for preparing of 'Prospectus'. The 'Prospectus' is submitted to SEBI for its approval.
What does one mean by 'Lock-in'?
'Lock-in' indicates a freeze on the sale of shares for a certain period of time. SEBI guidelines have stipulated lock-in requirements on shares of promoters mainly to ensure that the promoters or main persons, who are controlling the company, shall continue to hold some minimum percentage in the company after the public issue.
What is meant by 'Listing of Securities'?
Listing means admission of securities of an issuer to trading privileges (dealings) on a stock exchange through a formal agreement. The prime objective of admission to dealings on the exchange is to provide liquidity and marketability to securities, as also to provide a mechanism for effective control and supervision of trading.
What is a 'Listing Agreement'?
At the time of listing securities of a company on a stock exchange, the company is required to enter into a listing agreement with the exchange. The listing agreement specifies the terms and conditions of listing and the disclosures that shall be made by a company on a continuous basis to the exchange.
What does 'Delisting of securities' mean?
The term 'Delisting of securities' means permanent removal of securities of a listed company from a stock exchange. As a consequence of delisting, the securities of that company would no longer be traded at that stock exchange.
What is SEBI's Role in an Issue?
Any company making a public issue or a listed company making a rights issue of value of more than Rs 50 lakh is required to file a draft offer document with SEBI for its observations. The company can proceed further on the issue only after getting observations from SEBI. The validity period of SEBI's observation letter is three months only i.e. the company has to open its issue within three months period.
Does it mean that SEBI recommends an issue?
SEBI does not recommend any issue nor does take any responsibility either for the financial soundness of any scheme or the project for which the issue is proposed to be made or for the correctness of the statements made or opinions expressed in the offer document. SEBI mainly scrutinizes the issue for seeing that adequate disclosures are made by the issuing company in the prospectus or offer document.
Does SEBI tag make one's money safe?
The investors should make an informed decision purely by themselves based on the contents disclosed in the offer documents. SEBI does not associate itself with any issue/issuer and should in no way be construed as a guarantee for the funds that the investor proposes to invest through the issue. However, the investors are generally advised to study all the material facts pertaining to the issue including the risk factors before considering any investment. They are strongly warned against relying on any 'tips' or news through unofficial means.
Foreign Capital Issuance
Can companies in India raise foreign currency resources?
Yes. Indian companies are permitted to raise foreign currency resources through two main sources: a) issue of foreign currency convertible bonds more commonly known as 'Euro' issues and b) issue of ordinary shares through depository receipts namely 'Global Depository Receipts
(GDRs)/American Depository Receipts (ADRs)' to foreign investors i.e. to the institutional investors or individual investors.
What is an American Depository Receipt?
An American Depositary Receipt ("ADR") is a physical certificate evidencing ownership of American Depositary Shares ("ADSs"). The term is often used to refer to the ADSs themselves.
What is an ADS?
An American Depositary Share ("ADS") is a U.S. dollar denominated form of equity ownership in a non-U.S. company. It represents the foreign shares of the company held on deposit by a custodian bank in the company's home country and carries the corporate and economic rights of the foreign shares, subject to the terms specified on the ADR certificate. One or several ADSs can be represented by a physical ADR certificate. The terms ADR and ADS are often used interchangeably. ADSs provide U.S. investors with a convenient way to invest in overseas securities and to trade non-U.S. securities in the U.S. ADSs are issued by a depository bank, such as JPMorgan Chase Bank. They are traded in the same manner as shares in U.S. companies, on the New York Stock Exchange (NYSE) and the American Stock Exchange (AMEX) or quoted on NASDAQ and the over-the-counter (OTC) market. Although ADSs are U.S. dollar denominated securities and pay dividends in U.S. dollars, they do not eliminate the currency risk associated with an investment in a non-U.S. company.
What is meant by Global Depository Receipts?
Global Depository Receipts (GDRs) may be defined as a global finance vehicle that allows an issuer to raise capital simultaneously in two or markets through a global offering. GDRs may be used in public or private markets inside or outside US. GDR, a negotiable certificate usually represents company's traded equity/debt. The underlying shares correspond to the GDRs in a fixed ratio say 1 GDR=10 shares.
Source:-NCFM
List of Group 'A' Companies (w.e.f. March 3, 2008)
Sr. No. Code Name
1 523204 Aban Offshore Ltd.
2 500002 ABB Ltd.
3 532682 ABG Shipyard Ltd.
4 500410 ACC Ltd.
5 512599 Adani Enterprises Ltd.
6 500303 Aditya Birla Nuvo Ltd.
7 532399 Adlabs Films Ltd.
8 532799 Akruti Nirman Ltd.
9 532480 Allahabad Bank
10 532309 Alstom Projects India Ltd.
11 500425 Ambuja Cements Ltd.
12 532418 Andhra Bank
13 500013 Ansal Properties & Infrastructure Ltd.
14 522275 Areva T&D India Ltd.
15 500477 Ashok Leyland Ltd.
16 500820 Asian Paints (India) Ltd.
17 532215 Axis Bank Ltd.
18 500490 Bajaj Auto Ltd.
19 500032 Bajaj Hindustan Ltd.
20 532134 Bank Of Baroda
21 532149 Bank of India
22 500048 Bharat Earth Movers Ltd.
23 500049 Bharat Electronics Ltd.
24 500493 Bharat Forge Ltd.
25 500103 Bharat Heavy Electricals Ltd.
26 500547 Bharat Petroleum Corpn. Ltd.
27 532454 Bharti Airtel Ltd.
28 500055 Bhushan Steel Ltd.
29 532523 Biocon Ltd.
30 500020 Bombay Dyeing & Mfg. Co. Ltd.
31 532929 Brigade Enterprises Ltd.
32 532792 Cairn India Ltd.
33 532483 Canara Bank
34 532885 Central Bank of India
35 532273 Centurion Bank of Punjab Ltd.
36 500040 Century Textiles & Industries Ltd.
37 500084 CESC Ltd.
38 500085 Chambal Fertilisers & Chemicals Ltd.
39 500110 Chennai Petroleum Corporation Ltd.
40 500087 Cipla Ltd.
41 500830 Colgate-Palmolive (India) Ltd.
42 531344 Container Corporation Of India Ltd.
43 500093 Crompton Greaves Ltd.
44 500480 Cummins India Ltd.
45 500096 Dabur India Ltd.
46 532747 Deccan Aviation Ltd.
47 532608 Deccan Chronicle Holdings Ltd.
48 532839 Dish TV India Ltd.
49 532488 Divi's Laboratories Ltd.
50 532868 DLF Ltd.
51 500124 Dr. Reddy's Laboratories Ltd.
52 532922 Edelweiss Capital Ltd.
53 532696 Educomp Solutions Ltd.
54 500840 EIH Ltd.
55 532178 Engineers India Ltd.
56 500134 Essar Oil Ltd.
57 500630 Essar Shipping Ltd.
58 500086 Exide Industries Ltd.
59 500469 Federal Bank Ltd.
60 526881 Financial Technologies (India) Ltd.
61 532155 Gail (India) Ltd.
62 509550 Gammon India Ltd.
63 500660 GlaxoSmithkline Pharmaceuticals Ltd.
64 532296 Glenmark Pharmaceuticals Ltd.
65 532754 GMR Infrastructure Ltd.
66 500164 Godrej Industries Ltd.
67 500300 Grasim Industries Ltd.
68 500620 Great Eastern Shipping Co. Ltd.
69 532786 Great Offshore Ltd.
70 532775 GTL Infrastructure Ltd.
71 532181 Gujarat Mineral Development Corporation
72 512579 Gujarat NRE Coke Ltd.
73 532702 Gujarat State Petronet Ltd.
74 532708 GVK Power & Infrastructure Ltd.
75 532281 HCL Technologies Ltd.
76 500180 HDFC Bank Ltd.
77 500182 Hero Honda Motors Ltd.
78 500440 Hindalco Industries Ltd.
79 500185 Hindustan Construction Co. Ltd.
80 500104 Hindustan Petroleum Corporation Ltd.
81 500696 Hindustan Unilever Ltd.
82 500188 Hindustan Zinc Ltd.
83 500191 HMT Ltd.
84 532873 Housing Development & Infrastructure Ltd.
85 500010 Housing Development Finance Corp. Ltd.
86 532174 ICICI Bank Ltd.
87 532822 Idea Cellular Ltd.
88 500106 IFCI Ltd.
89 532466 I-Flex Solutions Ltd.
90 530005 India Cements Ltd.
91 532636 India Infoline Ltd.
92 532544 Indiabulls Financial Services Ltd.
93 532832 Indiabulls Real Estate Ltd.
94 532814 Indian Bank
95 500850 Indian Hotels Co. Ltd.
96 530965 Indian Oil Corporation Ltd.
97 532388 Indian Overseas Bank
98 532187 IndusInd Bank Ltd.
99 500116 Industrial Development Bank of India Ltd.
100 500209 Infosys Technologies Ltd.
101 532659 Infrastructure Development Finance Company Ltd.
102 500305 Ispat Industries Ltd.
103 500875 ITC Ltd.
104 530773 IVRCL Infrastructures & Projects Ltd.
105 512237 Jai Corp Ltd.
106 532532 Jaiprakash Associates Ltd.
107 532627 Jaiprakash Hydro-Power Ltd.
108 532617 Jet Airways (India) Ltd.
109 500378 Jindal Saw Ltd.
110 532286 Jindal Steel & Power Ltd.
111 500228 JSW Steel Ltd.
112 500247 Kotak Mahindra Bank Ltd.
113 500252 Lakshmi Machine Works Ltd.
114 532778 Lanco Infratech Ltd.
115 500510 Larsen & Toubro Ltd.
116 500253 LIC Housing Finance Ltd.
117 500257 Lupin Ltd.
118 500108 Mahanagar Telephone Nigam Ltd.
119 500520 Mahindra & Mahindra Ltd.
120 500109 Mangalore Refinery & Petrochemicals
121 532500 Maruti Udyog Ltd.
122 500271 Max India Ltd.
123 532907 Maytas Infra Ltd.
124 513377 MMTC Ltd.
125 517140 Moser-Baer (India) Ltd.
126 500530 Motor Industries Co. Ltd.
127 500294 Nagarjuna Construction Co. Ltd.
128 500075 Nagarjuna Fertiliser & Chem. Ltd.
129 532234 National Aluminium Co. Ltd.
130 500790 Nestle India Ltd.
131 513683 Neyveli Lignite Corporation Ltd.
132 500302 Nicholas Piramal India Ltd.
133 532555 NTPC Ltd.
134 500312 Oil And Natural Gas Corporation Ltd.
135 532880 Omaxe Ltd.
136 500315 Oriental Bank Of Commerce
137 523574 Pantaloon Retail (India) Ltd.
138 532780 Parsvnath Developers Ltd.
139 532522 Petronet LNG Ltd.
140 503100 Phoenix Mills Ltd.
141 532810 Power Finance Corporation Ltd.
142 532898 Power Grid Corporation Of India Ltd.
143 522205 Praj Industries Ltd.
144 532693 Punj LLoyd Ltd.
145 532461 Punjab National Bank
146 531500 Rajesh Exports Ltd.
147 500359 Ranbaxy Laboratories Ltd.
148 524230 Rashtriya Chemicals & Fertilizers Ltd.
149 500111 Reliance Capital Ltd.
150 532712 Reliance Communications Ltd.
151 500390 Reliance Energy Ltd.
152 523445 Reliance Industrial Infrastructure
153 500325 Reliance Industries Ltd.
154 532709 Reliance Natural Resources Ltd.
155 532743 Reliance Petroleum Ltd.
156 532939 Reliance Power Ltd.
157 500366 Rolta India Ltd.
158 500376 Satyam Computer Services Ltd.
159 500295 Sesa Goa Ltd.
160 523598 Shipping Corporation Of India Ltd.
161 513349 Shree Precoated Steels Ltd.
162 511218 Shriram Transport Finance Co. Ltd.
163 500550 Siemens Ltd.
164 502742 Sintex Industries Ltd.
165 532784 Sobha Developers Ltd.
166 532863 Spice Communications Ltd.
167 500112 State Bank Of India
168 500113 Steel Authority of India Ltd.
169 500900 Sterlite Industries (India) Ltd.
170 524715 Sun Pharmaceutical Industries Ltd.
171 532733 Sun TV Network Ltd.
172 532667 Suzlon Energy Ltd.
173 500770 Tata Chemicals Ltd.
174 500483 Tata Communications Ltd.
175 532540 Tata Consultancy Services Ltd.
176 500570 Tata Motors Ltd.
177 500400 Tata Power Co. Ltd.
178 500470 Tata Steel Ltd.
179 500800 Tata Tea Ltd.
180 532371 Tata Teleservices (Maharashtra) Ltd.
181 532755 Tech Mahindra Ltd.
182 532299 Television Eighteen India Ltd.
183 500411 Thermax Ltd.
184 500114 Titan Industries Ltd.
185 532779 Torrent Power Ltd.
186 532356 Triveni Engineering & Industries Ltd.
187 532505 UCO Bank
188 532538 UltraTech Cement Ltd.
189 532477 Union Bank of India
190 507878 Unitech Ltd.
191 507458 United Breweries (Holdings) Ltd.
192 512070 United Phosphorus Ltd.
193 532432 United Spirits Ltd.
194 511389 Videocon Industries Ltd.
195 532401 Vijaya Bank
196 500575 Voltas Ltd.
197 532144 Welspun-Gujarat Stahl Rohren Ltd.
198 507685 Wipro Ltd.
199 532648 Yes Bank Ltd.
200 505537 Zee Entertainment Enterprises Ltd.
1 523204 Aban Offshore Ltd.
2 500002 ABB Ltd.
3 532682 ABG Shipyard Ltd.
4 500410 ACC Ltd.
5 512599 Adani Enterprises Ltd.
6 500303 Aditya Birla Nuvo Ltd.
7 532399 Adlabs Films Ltd.
8 532799 Akruti Nirman Ltd.
9 532480 Allahabad Bank
10 532309 Alstom Projects India Ltd.
11 500425 Ambuja Cements Ltd.
12 532418 Andhra Bank
13 500013 Ansal Properties & Infrastructure Ltd.
14 522275 Areva T&D India Ltd.
15 500477 Ashok Leyland Ltd.
16 500820 Asian Paints (India) Ltd.
17 532215 Axis Bank Ltd.
18 500490 Bajaj Auto Ltd.
19 500032 Bajaj Hindustan Ltd.
20 532134 Bank Of Baroda
21 532149 Bank of India
22 500048 Bharat Earth Movers Ltd.
23 500049 Bharat Electronics Ltd.
24 500493 Bharat Forge Ltd.
25 500103 Bharat Heavy Electricals Ltd.
26 500547 Bharat Petroleum Corpn. Ltd.
27 532454 Bharti Airtel Ltd.
28 500055 Bhushan Steel Ltd.
29 532523 Biocon Ltd.
30 500020 Bombay Dyeing & Mfg. Co. Ltd.
31 532929 Brigade Enterprises Ltd.
32 532792 Cairn India Ltd.
33 532483 Canara Bank
34 532885 Central Bank of India
35 532273 Centurion Bank of Punjab Ltd.
36 500040 Century Textiles & Industries Ltd.
37 500084 CESC Ltd.
38 500085 Chambal Fertilisers & Chemicals Ltd.
39 500110 Chennai Petroleum Corporation Ltd.
40 500087 Cipla Ltd.
41 500830 Colgate-Palmolive (India) Ltd.
42 531344 Container Corporation Of India Ltd.
43 500093 Crompton Greaves Ltd.
44 500480 Cummins India Ltd.
45 500096 Dabur India Ltd.
46 532747 Deccan Aviation Ltd.
47 532608 Deccan Chronicle Holdings Ltd.
48 532839 Dish TV India Ltd.
49 532488 Divi's Laboratories Ltd.
50 532868 DLF Ltd.
51 500124 Dr. Reddy's Laboratories Ltd.
52 532922 Edelweiss Capital Ltd.
53 532696 Educomp Solutions Ltd.
54 500840 EIH Ltd.
55 532178 Engineers India Ltd.
56 500134 Essar Oil Ltd.
57 500630 Essar Shipping Ltd.
58 500086 Exide Industries Ltd.
59 500469 Federal Bank Ltd.
60 526881 Financial Technologies (India) Ltd.
61 532155 Gail (India) Ltd.
62 509550 Gammon India Ltd.
63 500660 GlaxoSmithkline Pharmaceuticals Ltd.
64 532296 Glenmark Pharmaceuticals Ltd.
65 532754 GMR Infrastructure Ltd.
66 500164 Godrej Industries Ltd.
67 500300 Grasim Industries Ltd.
68 500620 Great Eastern Shipping Co. Ltd.
69 532786 Great Offshore Ltd.
70 532775 GTL Infrastructure Ltd.
71 532181 Gujarat Mineral Development Corporation
72 512579 Gujarat NRE Coke Ltd.
73 532702 Gujarat State Petronet Ltd.
74 532708 GVK Power & Infrastructure Ltd.
75 532281 HCL Technologies Ltd.
76 500180 HDFC Bank Ltd.
77 500182 Hero Honda Motors Ltd.
78 500440 Hindalco Industries Ltd.
79 500185 Hindustan Construction Co. Ltd.
80 500104 Hindustan Petroleum Corporation Ltd.
81 500696 Hindustan Unilever Ltd.
82 500188 Hindustan Zinc Ltd.
83 500191 HMT Ltd.
84 532873 Housing Development & Infrastructure Ltd.
85 500010 Housing Development Finance Corp. Ltd.
86 532174 ICICI Bank Ltd.
87 532822 Idea Cellular Ltd.
88 500106 IFCI Ltd.
89 532466 I-Flex Solutions Ltd.
90 530005 India Cements Ltd.
91 532636 India Infoline Ltd.
92 532544 Indiabulls Financial Services Ltd.
93 532832 Indiabulls Real Estate Ltd.
94 532814 Indian Bank
95 500850 Indian Hotels Co. Ltd.
96 530965 Indian Oil Corporation Ltd.
97 532388 Indian Overseas Bank
98 532187 IndusInd Bank Ltd.
99 500116 Industrial Development Bank of India Ltd.
100 500209 Infosys Technologies Ltd.
101 532659 Infrastructure Development Finance Company Ltd.
102 500305 Ispat Industries Ltd.
103 500875 ITC Ltd.
104 530773 IVRCL Infrastructures & Projects Ltd.
105 512237 Jai Corp Ltd.
106 532532 Jaiprakash Associates Ltd.
107 532627 Jaiprakash Hydro-Power Ltd.
108 532617 Jet Airways (India) Ltd.
109 500378 Jindal Saw Ltd.
110 532286 Jindal Steel & Power Ltd.
111 500228 JSW Steel Ltd.
112 500247 Kotak Mahindra Bank Ltd.
113 500252 Lakshmi Machine Works Ltd.
114 532778 Lanco Infratech Ltd.
115 500510 Larsen & Toubro Ltd.
116 500253 LIC Housing Finance Ltd.
117 500257 Lupin Ltd.
118 500108 Mahanagar Telephone Nigam Ltd.
119 500520 Mahindra & Mahindra Ltd.
120 500109 Mangalore Refinery & Petrochemicals
121 532500 Maruti Udyog Ltd.
122 500271 Max India Ltd.
123 532907 Maytas Infra Ltd.
124 513377 MMTC Ltd.
125 517140 Moser-Baer (India) Ltd.
126 500530 Motor Industries Co. Ltd.
127 500294 Nagarjuna Construction Co. Ltd.
128 500075 Nagarjuna Fertiliser & Chem. Ltd.
129 532234 National Aluminium Co. Ltd.
130 500790 Nestle India Ltd.
131 513683 Neyveli Lignite Corporation Ltd.
132 500302 Nicholas Piramal India Ltd.
133 532555 NTPC Ltd.
134 500312 Oil And Natural Gas Corporation Ltd.
135 532880 Omaxe Ltd.
136 500315 Oriental Bank Of Commerce
137 523574 Pantaloon Retail (India) Ltd.
138 532780 Parsvnath Developers Ltd.
139 532522 Petronet LNG Ltd.
140 503100 Phoenix Mills Ltd.
141 532810 Power Finance Corporation Ltd.
142 532898 Power Grid Corporation Of India Ltd.
143 522205 Praj Industries Ltd.
144 532693 Punj LLoyd Ltd.
145 532461 Punjab National Bank
146 531500 Rajesh Exports Ltd.
147 500359 Ranbaxy Laboratories Ltd.
148 524230 Rashtriya Chemicals & Fertilizers Ltd.
149 500111 Reliance Capital Ltd.
150 532712 Reliance Communications Ltd.
151 500390 Reliance Energy Ltd.
152 523445 Reliance Industrial Infrastructure
153 500325 Reliance Industries Ltd.
154 532709 Reliance Natural Resources Ltd.
155 532743 Reliance Petroleum Ltd.
156 532939 Reliance Power Ltd.
157 500366 Rolta India Ltd.
158 500376 Satyam Computer Services Ltd.
159 500295 Sesa Goa Ltd.
160 523598 Shipping Corporation Of India Ltd.
161 513349 Shree Precoated Steels Ltd.
162 511218 Shriram Transport Finance Co. Ltd.
163 500550 Siemens Ltd.
164 502742 Sintex Industries Ltd.
165 532784 Sobha Developers Ltd.
166 532863 Spice Communications Ltd.
167 500112 State Bank Of India
168 500113 Steel Authority of India Ltd.
169 500900 Sterlite Industries (India) Ltd.
170 524715 Sun Pharmaceutical Industries Ltd.
171 532733 Sun TV Network Ltd.
172 532667 Suzlon Energy Ltd.
173 500770 Tata Chemicals Ltd.
174 500483 Tata Communications Ltd.
175 532540 Tata Consultancy Services Ltd.
176 500570 Tata Motors Ltd.
177 500400 Tata Power Co. Ltd.
178 500470 Tata Steel Ltd.
179 500800 Tata Tea Ltd.
180 532371 Tata Teleservices (Maharashtra) Ltd.
181 532755 Tech Mahindra Ltd.
182 532299 Television Eighteen India Ltd.
183 500411 Thermax Ltd.
184 500114 Titan Industries Ltd.
185 532779 Torrent Power Ltd.
186 532356 Triveni Engineering & Industries Ltd.
187 532505 UCO Bank
188 532538 UltraTech Cement Ltd.
189 532477 Union Bank of India
190 507878 Unitech Ltd.
191 507458 United Breweries (Holdings) Ltd.
192 512070 United Phosphorus Ltd.
193 532432 United Spirits Ltd.
194 511389 Videocon Industries Ltd.
195 532401 Vijaya Bank
196 500575 Voltas Ltd.
197 532144 Welspun-Gujarat Stahl Rohren Ltd.
198 507685 Wipro Ltd.
199 532648 Yes Bank Ltd.
200 505537 Zee Entertainment Enterprises Ltd.
Petronet
Petronet LNG is looking at buying liquefied natural gas (LNG) from a proposed 6.3 million tonnes a year project in Papua New Guinea, its Director of Finance, Amitava Sengupta said on Tuesday.
Indian Stock Market may open weak today.
Asian markets which opened today before the indian stock market are trading in losses. US Markets also declined yesterday due to increase in prices of crude oil per barrel as higher energy costs may result in higher inflation rate. Rise in the prices of crude oil may affect the inflation rate in india too.
Bang Overseas shares to list today
Bang Overseas, a player in fashion fabrics, retail and textile segment has come to the IPO market in the last week of January 2008. Bang Overseas shares are going to make its debut in Stock exchanges today. The price band fixed was Rs 200-207. It may list around Rs. 210-220.
Investors are advised not to take any positions in this stock. It may also go below the issue price due to poor market conditions today.
Investors are advised not to take any positions in this stock. It may also go below the issue price due to poor market conditions today.
Shriram EPC to debut today in Stock Exchanges
Chennai based Shiram EPC which is involved in engineering, integrated designing, construction and project management for renewable energy projects and metallurgy projects, will be making its debut in stock markets today. It came with its IPO in the market last month and alloted shares to the investors at Rs. 300. It may list at the issue price or below and may go down further. Investors are advised not to get involved in this share.
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