Koutons Retail IPO subscribed 30x

Apparel maker Koutons Retail India has been received overhelming response from investors, especially qualified institutional investors (QIBs). A 35.24 lakh issue has received bids for 10.41 crore shares, which includes bids for 39.12 crore shares at cut off price.

Public issue was subscribed 29.54 times, as per data available on NSE, at 2 pm.

The company had entered capital market with an initial public offer of 35.24 lakh equity shares in the band of Rs 370-415 a share. The offer will constitute 11.54% of the post-issue capital.

The company is planning to raise at around Rs 130.39 crore to Rs 146.25 crore in lower and higher end of price band, respectively.

Proceeds will be utilised for setting up exclusive brand outlets of the company at the cost of Rs 41.2 crore, establishment of new integrated manufacturing facility (Rs 30.18 cr). The company is also going to purchase plant and machinery to increase finishing and manufacturing capacity (Rs 10 cr) and improve Information technology network (Rs 5.57 cr).

JM Financial Consultant Pvt Ltd is the book running lead manager to the issue.

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CCCL issue subscribed 52 times

The initial public offering (IPO) of Consolidated Construction Consortium (CCCL), a provider of integrated turn-key construction services, has been given a good support from investors. Realty stocks has been surging high in last three days, that might be the reason for getting good subscription numbers.

Public issue received bids for 19.34 crore shares, including bids for 26.33 crore shares at cut off price. It was subscribed 52.29 times, as per NSE website.

The company had entered capital market with an initial public offer (IPO) of 37,00,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book building process. The price band is between Rs 460 and Rs 510 per equity share.

The company will be raised Rs 170.20 crore at lower end of price band and Rs 188.70 crore at higher end.

The equity shares are proposed to be listed on the National Stock Exchange of India and the Bombay Stock Exchange. The issue would constitute 10.01% of the post-issue paid up capital of the company.

The objects of the issue are to finance the acquisition of construction infrastructure, investment in subsidiaries, expenditures towards skill and management development centre, repayment of loans and expenditure for general corporate purposes.

The book running lead managers to the issue are Enam Securities Private Limited and Kotak Mahindra Capital Company Limited while the co-book running lead manager is Spark Capital Advisors (India) Private Limited. Karvy Computershare Pvt Ltd is the registrar to the issue.

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Grey Market Premium

Circuit Systems : 4 to 5

Dhanus Tech : 80 to 90

Consolidated Constructions : 130 to 150

Koutons India : 85 to 90

Kaveri Seeds : 6 to 8

Allied Computers : 1 to 1.50

Power Grid corporation : 19 to 20

Magnum Ventures : 1 to 2

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Koutons Retail IPO bids start today

Apparel maker Koutons Retail India is open for subscription with an initial public offer of 35.24 lakh equity shares in the band of Rs 370-415 a share. Public offer closes on September 21, 2007. The offer will constitute 11.54% of the post-issue capital.

The company is planning to raise at around Rs 130.39 crore to Rs 146.25 crore in lower and higher end of price band, respectively.

Proceeds will be utilised for setting up exclusive brand outlets of the company at the cost of Rs 41.2 crore, establishment of new integrated manufacturing facility (Rs 30.18 cr). The company is also going to purchase plant and machinery to increase finishing and manufacturing capacity (Rs 10 cr) and improve Information technology network (Rs 5.57 cr).

Koutons manufactures and retails of Men’s wear under brand name “Koutons” and “Charlie Outlaw” and has network of 674 exclusive brand outlets accross in India ( as on Feb 2007).

For the year ended March 2007, it has reported net sales of Rs 264.86 crore and profit after tax of Rs 23.96 crore.

JM Financial Consultant Pvt Ltd is the book running lead manager to the issue.

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CCCL IPO opens for subscription

Consolidated Construction Consortium (CCCL), a provider of integrated turn-key construction services in the industrial, commercial, infrastructure and residential sectors of the construction industry, is open for subscription with an initial public offer (IPO) of 37,00,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book building process.

The issue will close for subscription on September 21, 2007. The company has fixed the price band between Rs 460 and Rs 510 per equity share.

The company will be raised Rs 170.20 crore at lower end of price band and Rs 188.70 crore at higher end.

The equity shares are proposed to be listed on the National Stock Exchange of India and the Bombay Stock Exchange. The issue would constitute 10.01% of the post-issue paid up capital of the company. This issue has been assigned IPO grade 3 by ICRA.

The objects of the issue are to finance the acquisition of construction infrastructure, investment in subsidiaries, expenditures towards skill and management development centre, repayment of loans and expenditure for general corporate purposes.

The total value of its order book as on July 31, 2007, is Rs 20,495.68 million. These projects include industrial structures, IT parks, commercial building, airport terminal buildings, hotel, hospitals and educational institutions

The book running lead managers to the issue are Enam Securities Private Limited and Kotak Mahindra Capital Company Limited while the co-book running lead manager is Spark Capital Advisors (India) Private Limited. Karvy Computershare Pvt Ltd is the registrar to the issue.

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Grey Market Premium

Power Grid Corporation : 18 to 19
Dhanus Technologies : 90 to 100
Koutons Retail : 60 to 65
Circuit Systems (India) Ltd. : 4 to 4.5
Consolidated Construction : 100 to 110
Magnum Venture : 2.5 to 3
Kaveri Seeds : 6 to 8

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Koutons Retail India IPO

Issue price / Floor Price (Rs) 370-415
Issue opens 18-Sep-07
Issue closes 21-Sep-07
Listing on BSE,NSE

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Koutons Retail - Invest

An investment with a one-year perspective can be considered in the initial public offer (IPO) of Koutons Retail India (KRIL). KRIL is a player in the menswear segment with a network of stores mainly in northern and western India. The offer proceeds will help the company expand its retail network.

The price band of Rs 370-Rs 415 values the company at 33-36 times its 2006-07 earnings per share, on an expanded equity base.

KRIL’s premium pricing appears to factor in higher growth rates compared to domestic apparel majors such as Raymond, Zodiac Clothing and Kewal Kiran Clothing. The latter trade at price-earnings multiples of 15-20 based on trailing earnings.

However, KRIL’s performance over the last couple of years and its proposed expansion plans provide some justification for the higher growth expectation.

The expensive valuation for the offer, however, does not provide a margin of safety in the event of disappointing performance. This makes it suitable only for investors with a high risk appetite.

Massive retail ramp up

KRIL sells menswear under the brands “Koutons” and “Charlie Outlaw” targeted at customers in the 22-45 and 14-25 age groups respectively. The company has grown its brands by setting up a chain of exclusive outlets across the country. Opening exclusive outlets to improve brand visibility and enhance margins is a strategy that most branded retailers such as Raymond, Provogue and Madura Garments have pursued.

However, at their early stages, most players, particularly regional ones, prefer to distribute their products through national chain stores and multi-brand outlets. This practice allows branded players to improve their reach without bearing the risk of unsold inventory.

Going by its performance, however, KRIL’s strategy of relying mainly on exclusive branded outlets operated by franchisees, appears to have worked. From 75 stores in 2005, the chain of stores expanded to 687 by March 2007. Revenues have grown at a scorching pace from Rs 60 crore to Rs 400 crore over the same period. With operating margins also improving significantly over this period to about 17 per cent, profits have grown at an even faster pace.
Further expansion

The company plans to further expand its reach with the offer proceeds. About Rs 40 crore of the fresh issue proceeds will be deployed in setting up 140 stores over the next two years. The stores will be leased by the company but operated either by the company or franchisees.

The offer document does not mention the exact timeline for these stores to become operational. It has tied up retail space for 75 such outlets, most of them in malls, which is likely to add about 1 lakh square feet of retail space to the existing 8 lakh. Though the remaining proceeds will go towards setting up an integrated facility, this will not result in any capacity expansion.

However, a significant ramp up in revenues is likely this fiscal, given that KRIL has already added about 300 stores or 3 lakh square feet to its retail network since March 2007. Having significantly expanded its manufacturing facilities recently, it is also well-placed to feed the additional stores and introduce product lines. It proposes to introduce separate lines for women and children.

Risky model

Despite the high growth trajectory so far, the business model carries high risks. One, there is a high dependence on franchisees to expand the retail network.

Second, KRIL’s ability to transform its brands “Koutons” and “Charlie Outlaw” from regional- to national-level brands is yet to be demonstrated, despite its large retail network. The retailer tends to rely on heavy discounting to push products.

Seen in this light, the company’s ability to maintain its price-line and implement its stated strategy of targeting the premium segment, could face challenges. Selling expenses have been on a rising trend and now account for almost 25 per cent of sales, as the company increases expenditure towards brand-building.

The offer is open from September 18-21. About 35 lakh shares are on offer, of which 9 lakh shares are an offer for sale by the promoters. The lead manager is JM Financial.

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Consolidated Construction Consortium - Invest

Investors can subscribe to the initial public offer of Consolidated Construction Consortium (CCC), an integrated construction services company.

Bright growth prospects, backed by demand for quality construction contractors, strong management bandwidth and an order-book that lends visibility to earnings growth over the next couple of years are positives for this offer.

At the offer price of Rs 460-510, the price-earnings multiple is 14-16 times the company’s estimated consolidated earnings for FY-09 on an expanded equity base.

This valuation is comparable to its nearest peer B. L. Kashyap and Sons.

At the offer price band, the market capitalisation of the company’s stock on listing would be Rs 1,700-1,900 crore.
Profile and objectives

CCC undertakes turnkey building contracts for corporates, infrastructure and realty players and the Government. The company cannot be termed as an infrastructure or real-estate player and can be better defined as a pure construction company that offers a wider range of services. The company has clients in sectors such as IT, manufacturing, retailing and education. The offer proceeds (Rs 170-190 crore) are to be primarily used for acquiring construction equipment and for investments in subsidiaries, which provide allied construction services.
Lesser risks

The profile of CCC inspires confidence as it is primarily into a business with lesser risks and uncertainties than are typically associated with infrastructure and real-estate players. For instance, the company does not face risks related to buying or developing land or any slowdown in the infrastructure order-flow from the Government.

No doubt, the margins for a pure construction player may not be as lucrative as the others in the industry.

However, higher volume of business could make up for this. Infrastructure and real estate companies are holding huge orders that need to be executed and the likes of CCC are likely to benefit from this. CCC could also benefit from higher corporate capital expenditure outlays.

The demand for CCC’s service is reflected in a compounded growth of 75 per cent and 125 per cent in its sales and net profits respectively over the last three years. The company’s order-book of Rs 2,200 crore as of August 2007 is over 2.5 times its sales for FY-07.
Well-structured

CCC’s diversification in terms of business, client mix and geography points to a well thought out model to mitigate risks.

One, although CCC’s current order-book is concentrated in the South (92.5 per cent), it has been making headway in States such as Rajasthan, Himachal Pradesh and Delhi.

Two, in terms of client mix, the company has a healthy variation of clients from various sectors with almost 40 per cent of them turning in for repeat orders. Three, the service/product mix, although tilted towards core construction, has a healthy sprinkle of mechanical and engineering services and interiors (through subsidiaries) to the extent of 17 per cent.

With the company further investing in its subsidiaries, the allied services offered by it is likely to emerge as value-adds for improving the operating profit margin, which is now 8 per cent.

Four, the company does not depend so much on business from the Government (which is about 16 per cent of order-book), thus reducing the risk of any slowdown or stoppage in projects due to delays.

Five, fixed price contracts at about 15 per cent of current orders means that the rest of the projects are likely to enjoy price pass through for any raw material hikes.

We do however, see challenges arising from the company’s plans to build a food processing Special Economic Zone through a subsidiary. We have not factored in the same in our valuations due to lack of visibility.

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Consolidated Construction Consortium IPO

Issue price / Floor Price (Rs) 460-510
Issue opens 18-Sep-07
Issue closes 21-Sep-07
Listing on BSE,NSE

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Power Grid Corp fixes issue price at Rs 52 per share

India’s principal power transmission company and Mini-Ratna Category-I public sector undertaking, Power Grid Corporation of India has fixed the issue price at Rs 52 (the upper end of the price band of Rs 44-52) for its initial public offering (IPO) of 573,932,895 equity shares of Rs 10 each for cash at a price that was decided through a 100% book building process.

The issue closed on September 13, 2007, and it was subscribed 64.82 times. The qualified institutional bidders (QIBs) portion was subscribed around 115.90 times; the non-institutional investors portion was subscribed around 40.34 times while the retail investors portion was subscribed around 6.77 times and employees was subscribed 2.66 times.

The issue comprised a fresh issue of up to 382,621,930 equity shares by the company and an offer for sale of up to 191,310,965 equity Shares by The President Of India acting through The Ministry Of Power, Government of India. The issue comprised a net issue to the public of up to 559,954,895 equity shares and a reservation of up to 13,978,000 equity shares for subscription by employees of the company.

The issue constitutes approximately 13.64% of the fully diluted post- issue capital of the Company. After the Issue, the Government of India, through the Ministry of Power will continue to hold 86.36% of the diluted post-issue paid-up equity capital of the company.

The equity shares of the company are proposed to be listed on the BSE and NSE.

The book running lead managers to the issue are: Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited and Enam Securities Private Limited.

Power Grid Corporation of India owns and operates most of India’s interstate and inter-regional electric power transmission system. In that capacity, as at June 30, 2007 the company owned and operated 61,875 circuit kilometres of electrical transmission lines and 106 electrical substations. In Fiscal 2007, the Company transmitted approximately 298 billion units of electricity, representing approximately 45% of all the power generated in India.

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Stock Picks for the week

Motherson Sumi System
Research: Merrill Lynch
Rating: Buy
CMP: Rs 96

Merrill Lynch initiates coverage on Motherson Sumi Systems (MSSL) with a ‘buy’ rating due to the following reasons: (1) 23%+ compounded annual growth rate (CAGR) in EPS during FY07-FY10E and sustainability of 20%+ earnings growth over a longer period; (2) 560 bps expansion in return on equity capital (RoCE); and (3) new business ventures.

Expansion of the rubber components business following the recent acquisition of Empire Rubber in Australia and beginning of commercial production of mobile phone plastics parts business in H2 FY08 are the key growth drivers, apart from the 22% CAGR in wiring harness revenues. There is significant possibility of earnings surprise on account of: (1) management guidance of 43% CAGR in earnings being significantly higher than expectations; and (2) likely benefit of 18% fall in copper prices in the next six quarters, compared to Merrill Lynch’s assumption of flat prices. The stock is trading at 11.97x FY09E EV/EBITDA — a discount of 15% and 31%, respectively, compared to Mico and Cummins India, despite better growth prospects and good track record. At management-guided EPS of Rs 9.8 in FY10E, the stock trades at 9.7x earnings.

Sesa Goa
Research: Buy
Rating: Goldman Sachs
CMP: Rs 2,111

GOLDMAN Sachs initiates coverage on Sesa Goa with a ‘buy’ rating. Sesa Goa is India’s largest exporter of iron ore in the private sector and is a direct play on iron ore price negotiations. With sustained tightness in the iron ore market, it will be a direct beneficiary of higher iron ore prices. High margins, attractive returns, debt-free balance sheet, strong free cash flow generation and cash pile of Rs 220 per share are added positives. The non-iron ore businesses will benefit due to a robust outlook on pig iron and met coke prices. Reining in logistics costs will remain a key focus area. Additionally, after the completion of the ongoing open offer, the new promoters, Vedanta Resources, may deploy surplus cash reserves. Sesa Goa is likely to deliver 40% earnings CAGR over FY07-FY09E on the back of a bullish iron ore price outlook and modest volume growth. Potential announcements on strategic use of the cash pile or expansion plans, post completion of the open offer by Vedanta Resources, can provide upside triggers. At 2.8x one-year forward EV/EBITDA — which is at a 50% discount to global mining companies — the stock is attractively valued.

Tata Motors
Research: Citigroup
Rating: Buy
CMP: Rs 694

Citigroup has put a ‘buy’ recommended on Tata Motors. The management guidance points to a modest revival in truck sales in H2 FY08E, which implies that overall sales for FY08 will be flat or may register modest growth. Truck operators’ profitability remains healthy, despite rise in interest rates. Freight rates continue to remain stable. The company will deploy Rs 8,000 crore over the next three years to launch new platforms in passenger cars and trucks.

The small car remains on schedule and will be launched in mid-CY08 (H1 FY09E). The management has said Tata Motors will start the process of demerging its subsidiaries by end FY08E, but this is still at a nascent stage. Brand, technology and markets are the key decision variables. Cost pressures (steel accounts for 45% of input costs) will continue to affect margins. Cost reduction exercise is nearly complete — the company has achieved Rs 970 crore of its stated Rs 1,000-crore cost-cutting exercise. Hikes in CV prices (~1-1.5%) undertaken in early FY08 will mitigate (but not offset) the impact of cost pressures.

Binani Cement
Research: JP Morgan
Rating: Overweight
CMP: Rs 79

JP Morgan initiates coverage on Binani Cement (BCL) with an ‘overweight’ rating. BCL appears to be at the cusp of aggressive volume growth. Cement production is likely to witness a CAGR of 44% over FY07-09. Increasing volumes, coupled with robust prices (in the current year) should drive 44% EBITDA growth and 40% EPS growth in FY08, as per JP Morgan’s estimates. In FY09, aggressive volume growth is likely to help offset the negative impact of an estimated 6% YoY decline in cement prices. A near 10% CAGR in domestic demand and benefits of consolidation should provide a higher floor to domestic prices, relative to previous cycles. BCL’s valuation looks compelling — the stock is trading at a near 40% valuation discount to mainstream cement players.

IDBI Bank
Research: ICICI Direct
Rating: Outperformer
CMP: Rs 131

ICICI Direct initiates coverage on IDBI Bank with an outperformer rating. IDBI Bank has transformed itself from a development financial institution (DFI) to an active participant in the booming banking and financial services space.

The amalgamation of United Western Bank with IDBI Bank has given the latter the much-needed branch network to enhance its retail presence. This, coupled with unlocking of value in its investments, is expected to lead to a surge in earnings. ICICI Direct expects earnings to witness a CAGR of 19% over FY07-09E to Rs 885 crore. IDBI Bank has a huge investment portfolio of quoted and unquoted equity stocks. It can unlock the value from these stocks and boost its profitability.

The value of the quoted and unquoted equity book is Rs 52 per share of IDBI Bank. The bank is expected to improve its core business gradually with net interest margins (NIMs) expanding from 0.48% in FY06 to 0.74% in FY07 and further to 1.07% by FY09E. At the current price around of Rs 130, the stock is trading at 1.3 its FY09E adjusted book value (ABV) and 10.6x its FY09E EPS of Rs 12.2. Based on a theoretical book value multiple of 0.9x its FY09E ABV, the value of its core banking business comes to Rs 87 per share. Its huge investment portfolio is valued at Rs 52 per share and subsidiaries at Rs 17 per share.

Godavari Chemicals & Fert
Research: IDBI Capital
Rating: Buy
CMP: Rs 129

Godavari Chemicals and Fertilizers — promoted jointly by Andhra Pradesh State Co-operatives (APSC) and the Indian Farm and Fertilizer Co-operative (IFFCO) — is one of the frontline players in the fertiliser segment in the South. It is now a part of Chennai-based Murugappa group, which acquired the stake of the Andhra Pradesh government in the process of disinvestment through Coromandel Fertilizers. Godavari is one of the leading producers of DAP and has a market share of 9% across India, while it has a 73% share in Andhra Pradesh.

During FY07, it increased the sale of traded products like water-soluble fertilisers, micronutrients and G-Sulphur. It has an approximate capacity of 1.2 million metric tones (mt), with a proximity to seaport and good infrastructure. Production during FY07 was highest at 11.35 lakh tonnes, when the average output increased to 72 mt per hour against 65 mt per hour. However, production was hit due to constraints of phosphoric acid supply. The company will expand its capacity by 4.25 lakh mt by June ’09. It has also completed construction of 10,000 mt atmospheric ammonia at Kakinada. Godavari Chemicals has put up a good show for Q1 FY08 with regard to operating and net profits. Its revenue, at Rs 17.3 crore, was down by 35% YoY. PAT was Rs 1.3 crore, against a loss of Rs 40 lakh in the year-ago period. The stock is currently trading at 6x its trailing 12 months EPS of Rs 20.65.

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Puravankara Projects to list on August 30

Puravankara Projects, south based real estate player, will list on the bourses with 21,34,24,335 shares on August 30, 2007. The issue price has been fixed at Rs 400 per share, at lower end of the band.

Its BSE ID is 532891 and NSE ID is PURVA.

The company had entered capital market with an initial public offering (IPO) of 21,467,610 equity shares of Rs 5 each for cash at a price band of Rs 400-450, which had revised by the company from Rs 500- 525 per share and also extended date by 5 days due to undersubscription during earlier period from July 31 to August 3, 2007.

The issue was subscribed 1.91 times, with the support from qualified institutional investors followed by HNIs and retail with small subscription.

Puravankara Projects’ operations cover Bangalore, Kochi, Chennai, Coimbatore, Hyderabad, Mysore, Colombo and the UAE. The company has completed 14 residential and one commercial project totalling 3.93 million sq ft of developable area. Ongoing projects aggregate 12.20 million sq ft of saleable area.

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Market ends higher despite weak global cues

It was a good close for markets as they ended in green with gains after opening with a sharp cut. The rise in our markets was despite some weak cues from global peers on account of dim chances of Fed cutting rates going ahead. Sensex after breaching 15,000 mark closed near that level and nifty around 4350 mark.

BSE Midcap and Smallcap index outperformed the benchmark indices and closed up 0.6% and 0.9% each respectively.

Good buying was seen in metal and oil & gas stocks. IT, pharma and realty stocks are trading weak on the bourses.

Tata Steel was the star performer up over 8% on strong consolidated Q1FY08 numbers. Its Q1FY08 sales were up at Rs 31,154.6 crore versus 5,747.7 crore.

Top gainers on the indices are Tata Steel up 8%, BHEL up 2.5%, ONGC up 2% followed by Hindalco, Gasim, SAIL, HDFC Bank and ITC.

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Take Solutions to list on August 27

Take Solutions, an international business technology company with a focus on life sciences and supply chain management solutions, will list on the bourses with 1,20,00,000 shares on Monday, August 27, 2007.

The issue price has been fixed at Rs 730 per equity share i.e. the upper end of the price band.

The company had come out with an initial public offer (IPO) of 2,100,000 equity shares of Rs 10 each for cash at a price band between Rs 675 and Rs 730 per equity share. It was subscribed 59.42 times.

Take Solutions offers cost effective comprehensive business solutions backed by domain expertise, in Supply Chain Management (SCM) and Life Sciences (LS).

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Slide may continue

The market is likely to slip further as a fall in overnight US indices and the ongoing Asian indices could weigh on the market sentiment.

Market may slide further on account of weak Asian markets in morning trades and overnight fall in the US markets. Political uncertainties and continued selling pressure may also drag the domestic indices further down. The FIIs remained net sellers in equities for last couple of sessions may also weigh on the investors' sentiment. Key indices, the Nifty may get support at 4100 level and on the upside it could test higher levels at 4260. The Sensex has a likely support at 14,100 and may face resistance at 14,500.

US indices declined on Thursday as investors worried about the economic outlook after the head of the biggest U.S. mortgage company said the housing downturn could create a recession. While the Dow Jones slipped marginally at 13236, while the Nasdaq lost 11 points to close at 2542.

Indian ADRs had a mixed outing on the US bourses. Among the major losers VSNL, Rediff, HDFC Bank, Satyam, Wipro, MTNL, Patni Computers and Tata Motors shed over 1-3% each. While, Infosys, Dr Reddy's, Satyam gained marginally.

Crude oil prices gained marginally, with the Nymex light crude oil for October delivery moved up by 57 cents to close at $69.83 a barrel. In the commodity space, the Comex gold for December series lost 30 cents to settle at $668.40 a troy ounce.

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Indowind Energy IPO subscribed 0.56x

Indowind Energy has not yet subscribed fully. Till now qualified institutional investors have given support to the issue to get subscribed at least 0.56 times, as per NSE website.

QIBs portion subscribed 1.03 times followed by HNIs and retail investors with undersubscription.

Indowind Energy is open for subscription with initial public offering (IPO) of 1.25 crore equity shares of Rs 10 in the price band of Rs 55-65. The net issue would constitute 25 per cent of the fully diluted post issue paid-up capital of the company.

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Motilal Oswal Financial Services IPO subscribed 27 times

The IPO of Motilal Oswal Financial Services was subscribed 27.33 times by 17:00 IST, as per data availed on NSE website. The issue closed today, 23 August 2007. The IPO received bids for 8.15 crore shares compared to 29.82 lakh shares that were on offer.

The price band for the IPO was Rs 725 to Rs 825 per share. At the offer price band of Rs 725-Rs 825, PE works to 27.9 (on lower band) to 31.7 (on upper price band).

Motilal Oswal Financial Services (MOFSL) is the Motilal Oswal group’s holding company with stake in four group companies: Motilal Oswal Securities (MOSL – the stock broking arm), Motilal Oswal Commodities Brokers (MOCB - the commodity business arm), Motilal Oswal Venture Capital Advisors Pvt Ltd (MOVC - the venture capital advisory arm) and the Motilal Oswal Investment Advisors Pvt Ltd (MOIAPL - the investment banking arm).

The object of the issue was to raise funds to enable the group to improve its competitive position and support growth plans through deployment of long-term working capital, enhanced financing facility for broking customers, and additional office space and technology advancement.

MOFSL’s consolidated net profit rose 15% to Rs 69.58 crore, on 39% growth in income from operations to Rs 358.75 crore in FY 2007 over FY 2006.

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Grey Market Premium

Motilal Oswal 50 to 60

Indowind Energy 3 to 4

Magnum Venture 4 to 3

Puravankara Projects 400 Discount

Take Solutions 90 to 100

KPR Mills 225 Discount

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Indowind Energy IPO

Indowind Energy is open for subscription with initial public offering (IPO) of 1.25 crore equity shares of Rs 10 in the price band of Rs 55-65 with 100% book building process, aggregating Rs 81.25 crore.

Issue Snapshot

* Issue of 1.25 crore shares
* IPO price - Rs 55- 65
* To raise Rs 68.75- 81.25 crore
* To constitute 25% of fully diluted capital
* Opens on August 21; Closes on 24th August
* 20% of issue reserved for employees

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Grey Market Premiums

Motilal Oswal 190 to 200

Indowind Energy 3 to 5

Magnum Venture 4 to 6

Take Solutions 190 to 195

Asian Granito 3 to 5

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IT People FPO opens on Aug 27

IT People (India) is coming up with its follow-on public issue of equity shares of Rs 2 each for cash aggregating to Rs 45.25 crore.

The equity shares aggregating to Rs 2.26 crore have been reserved for the eligible employees of the company and the equity shares aggregating to Rs 4.52 crore have been reserved for the group company (s) / shareholders of the group company(s). The net issue to the public aggregates to Rs 38.46 crore.

The issue opens on Monday, August 27, 2007 and closes on Friday, August 31, 2007.

IT People is a well established company providing human capital solutions on the IT and ITES industry globally. The company addresses vital requirements of the IT industry by providing Human Capital Solutions and other services to all the segments of the industry through a global network of state-of-the-art e-Recruitment portal. The company follows stringent quality and information security standards and it is the only company in its space to have both ISO 9001: 2000 as well as ISO 27001:2005 certifications. In addition to online services, IT People has a complementary ‘brick and mortar’ model for providing a range of contract consulting services that meet clients’ off-line requirements as well.

IT People has signed a MOU with Dubai Outsource Zone to become it’s exclusive authorized partners for promoting and marketing the zone in India, which is the world’s first ‘Free Zone’ for outsourcing. The Company has a blue chip clientele including Emirates Airlines, National Bank of Dubai, EDS, KPMG, Wipro, Hexaware among others.

For the year ended March 31, 2007, IT People posted revenues of Rs 17.52 crore and Net Profit of Rs 3.08 crore. For the first quarter ended June 30, 2007, its revenues stood at Rs 7.51 crore (Rs 2.32 crore) and net profit at Rs 1.09 crore (Rs 0.07 crore).

The shares being issued will also be listed on the Bombay Stock Exchange.

The book running lead managers to the issue are Khandwala Securities and Religare Securities. Syndicate members of the issue are Reliance Securities., Sunidhi Securities & Finance Ltd. and Moneycare Securities & Financial Services Ltd.

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SEL Manufacturing lists at issue price

SEL Manufacturing Company has started the day just above its issue price, at Rs 90.45 as good opening of markets and touched a high of Rs 93.90. It also hit a low of Rs 80 on the back of some profit booking but still managed to hold above its issue price of Rs 90 per share.

The company had entered capital markets with an initial public offering (IPO) of 41,38,410 equity shares of Rs 10 each through 100 per cent book-building process at a price band between Rs 80 and Rs 90 per equity share and raised Rs 37.25 crore at Rs 90, higher end of the price band.

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Central Bank debuts with 29% premium

Central Bank of India has listed with premium of 29.22%, which is just below expected premium, at Rs 131.80 as against its issue price of Rs 102 and touched a high of Rs 135 in the beginning trade.

The stock has started trading in F&O market with a lot size of 2000 shares.

The company had come out with an initial public offering (IPO) of 80,000,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book building process and raised Rs 816 crore from that issue at Rs 102, higher end of the band. The issue was subscribed over 62.07 times.

After the issue, the shareholding of the Government of India in the bank has come down to 80.20%.

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Motilal Oswal Financial Services IPO opens Aug,20 2007

Motilal Oswal Financial Services is planning to raise Rs 216-246 crore through an initial public offer (IPO). The company has fixed the price band between Rs 725-825 per share. The money would be used to expand its business in organic and inorganic terms. The 29.8 lakh share issue will open on 20 Aug 2007 and close on 23 Aug 2007.

The company plans to grow its investment banking, private equity and distribution of third-party financial products. Broking and related services contribute 85-86% of its revenues.

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Bulls subside as Bears celebrate day 1 post Independence

Global turmoil continued to cast a shadow on Indian stock markets with the benchmark Sensex recording its biggest fall of the year, plummeting by 653 points to a low of 14,347.89, on heavy selling. Taking cues from global markets, investors resorted to panic sales ignoring a statement by international rating agency Standard & Poor’s that problems with subprime mortgage in the US will not result in a crisis in the financial markets. Onslaught in global markets on 15 August, when Indian markets were closed for Independence Day celebrations, led to a virtual collapse in equity markets on 16 August morning. The Bombay Stock Exchange (BSE) 30-share sensitive index, Sensex, opened with a wide downward gap of 416 points and within minutes tumbled to 14,347.89, netting a loss of 653.02 points from previous close of 15,000.91.

The broader S&P CNX Nifty of National Stock Exchange (NSE) also fell by 199.05 points to a low of 4,171.15 from previous close of 4,370.20.

Asian markets were sharply down during morning trade. Nikkei dropped by 525 points,
Singapore straight times by 150 points, Taiwan by 310 points and Hang Seng by 790 points.

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IVR Prime Urban lists at Rs 500

Real estate player IVR Prime Urban Developers on 16 August got listed with a discount of 9.09% at Rs 500 on the Bombay Stock Exchange over its issue price of Rs 550. The company made its debut on a rough day as both the benchmark indices of BSE and NSE tumbled in the opening trade today.
Day Low : Rs 388

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Zylog IPO Allotment Status

Checkout Zylog IPO Allotment Status here.

Omnitech IPO Allotment

Checkout Omnitech IPO Allotment here.

Sensex makes partial recovery, ends 232 points down

The benchmark Sensex on 10 August lost 232 points to close well below 15,000 on panic selling by funds as well as retail investors after a meltdown in global markets on fears about a spreading credit crunch. The Sensex, which had tumbled nearly 530 points in early trade, recovered partially to close down by 231.90 points, or 1.54%, at 14,868.25. It had lost nearly 207 points in the previous session. In a similar fashion, the wide-based National Stock Exchange’s Nifty fell 69.85 points to 4,333.35, after touching an intra-session low of 4,239.20 and a high of 4,395.50.

Stock brokers said sustained fall in stock prices for the second straight session was mostly attributed to global nervousness due to the US subprime crisis that is now affecting European banks as well. This sparked panic selling by major players in the domestic bourses. However, covering up of short position by speculators trimmed early losses in most of the stocks, they said.

Barring IT, all the key sectoral indices ended in the red with sharp losses. The IT sector index ended 40.26 points higher at 4,774.13 points after Infosys Technologies gained Rs16.25 at Rs1,952.25, HCL Technologies by Rs11.85 at Rs323.80, Satyam Computer by Rs12.30 at Rs479.40 and Mphasis by Rs6.80 at Rs297.70.

Global stock markets plunge for second day

Global stock markets dived for the second day in a row on Friday, 10 August, with Asian and European traders dumping shares over fears of a widening crisis caused by the US subprime housing sector. European markets opened about 2% lower, after Asian markets all closed down by between 2-4%. Analysts said investors were alarmed by signs that losses in the US subprime mortgage market, high-risk property loans to which many US banks and investment funds are exposed, was spreading to other regions.

BNP Paribas, France’s biggest bank, spooked the market on Thursday when it said it had suspended three investment funds exposed to the US housing market because it was unable to value the assets. News that the US, Eurozone, Japanese and other central banks had pumped massive amounts of cash into the banking sector to forestall a lack of liquidity appeared to add to the sense of nervousness on global markets.

On Asia’s largest market in Tokyo, the benchmark Nikkei-225 index slumped by as much as 3% at one point before ending down 406.51 points or 2.37% at 16,764.09, the lowest closing level for almost five months. Seoul ended down 4.2%, Sydney slumped 3.7%, Hong Kong slid 2.88%, Mumbai was down 2.65%, Singapore gave up 3.31% and Taipei lost 2.74%. In Europe in early morning trade, the FTSE 100 in London fell 1.74% to 6,162.00, in Frankfurt the DAX was down 2.04% at 7,301.22 and the Paris CAC 40 shed 1.89% to 5,515.42. Wall Street lost nearly 3% overnight. The overriding fear of investors is that banks will tighten their borrowing terms in response to the subprime crisis to prevent further exposure and cover losses already incurred.

Grey Market Premiums

Puravankara Projects 4 to 5
Take Solutions 320 to 325
Refex 10 to 12
OMNI Tech Info 60 to 62
Central Bank 36 to 38
Zylog Systems Ltd. 270 to 275
SEL Manufacture Ltd. 1.50 to 2
Asian Granito 7 to 8

Omaxe debuts with 29% premium

Omaxe, has listed with expected premium of 29% at Rs 400 on the NSE as against its issue price of Rs 310 per share. It has touched a high of Rs 448 and low of Rs 372.50.

The company had come out with an initial public offer (IPO) of upto 17,796,520 equity shares of Rs 10 each for cash at a price band of Rs 265-310. The issue was oversubscribed around 68 times.

The stock has started trading in Futures and Options market with lot size of 650 shares and options strike priced between Rs 10-610.

Omaxe is involved in residential and commercial real estate development projects ranging from integrated townships, group housing and retail and other commercial properties, hotels, information technology and bio-tech parks to special economic zones.

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Sensex rallies on tech stocks - Sharekhan Report

Buoyancy in information technology, oil and metal stocks helped the Sensex notch up gains of 375 points and close above 15,300. Yesterday's rally was backed by an upsurge in technology stocks and positive global cues, and drove the benchmark indices almost 3% higher.

Tracking firm Asian indices, the Sensex opened 155 points up its previous close and rallied sharply thereafter. As trading progressed, the mood turned extremely buoyant in the afternoon on hectic buying in information technology, oil and metal stocks that lifted the Sensex to the day's high of 15,340. Buying was also seen in a number of mid-cap and small-cap stocks. Buoyancy among heavyweights towards the close ensured that the Sensex remains near its day's high and end the session with a surge of 375 points at 15,308. The Nifty rose 106 points to close at 4,462.

The breadth of the market was positive. Out of a total of 2,724 stocks traded on the BSE yesterday, 1,979 stocks posted gains, 697 stocks were down in the red and 48 stocks remained unchanged. Among the sectoral indices, the BSE IT index jumped 4.11% at 4,808 followed by the BSE Oil & Gas index (up 3.13% at 8,049), the BSE Teck index (up 3.06% at 3,747) and the BSE PSU index (up 2.39% at 7,177).

Barring Dr Reddy's and Cipla, all the Sensex heavyweights ended at higher levels. Among the tech stocks, Infosys shot up by 4.73% at Rs1,968, TCS soared 4.13% at Rs1,154, Wipro surged 3.60% at Rs476 and Satyam advanced by 3.52% at Rs479. Among other Sensex stocks, ACC added 3.98% at Rs1,025, Reliance Industries moved up 3.87% at Rs1,876, HDFC scaled up 3.72% at Rs2,047 and Ranbaxy was up 3.44% at Rs382. However, Dr Reddy's Lab and Cipla closed marginally lower.

Tech stocks closed with solid gains on the finance ministry’s tightening the rules for foreign borrowing by local firms and 1% fall in the rupee against dollar. HCL Tech vaulted 6.36% at Rs317, Mphasis soared 6.17% at Rs303, Tech Mahindra surged 3.41% at Rs1,283 and Moser Baer advanced by 1.79% at Rs296.

Over 1.76 crore IFCI shares changed hands on the BSE followed by Reliance Natural Resources (1.50 crore shares), Suryachakra Power (1.45 crore shares), Nagarjuna Fertilizers (1.05 crore shares) and JP Hydro (1.01 crore shares).

Reliance Industries clocked a turnover of Rs264 crore on the BSE followed by Everonn Systems (Rs145 crore), Infosys (Rs127 crore), IFCI (Rs115 crore) and ICICI Bank (Rs111 crore).

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Omaxe to list on August 9

Omaxe, real estate development and construction company with operations in 30 cities and 9 states in India, will list on the bourses with 17,27,50,000 shares on August 9, 2007. The issue price fixed at Rs 310 per equity share (upper end of the price band).

The issue was oversubscribed around 68 times, the QIB portion was oversubscribed around 95 times; the Non-Institutional Investors portion was oversubscribed around 80 times; and the Retail Individual Investors Portion was oversubscribed around 13 times.

Omaxe is involved in residential and commercial real estate development projects ranging from integrated townships, group housing and retail and other commercial properties, hotels, information technology and bio-tech parks to special economic zones.

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Grey Market Premium - Update

Omaxe - Rs 80.
Omnitech Info - Rs 90.
Zylog - Rs 280.
IVR Prime Urban - Rs 8.
Central Bank - Rs 36.
SEL - Rs 2.
Asian Granito India - Rs 10.
Refex - Rs 14.

Current IPOs

Puravankara - Rs 10.
Take Solutions - Rs 320.
KPR Mills - Rs 9.

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Asian markets trading weak

Asian indices dropped sharply today in the wake of a US stock plunge on credit-market concerns.

Hong Kong's Hang Seng : Down 2.46% or 552.94 points at 21,985.50.

Japan's Nikkei : Down 0.87% or 148.16 points at 16,831.70.

Taiwan's Taiwan Weighted : Down 1.78% or 161.19 points at 8,896.63.

Singapore's Straits Times : Down 3.69% or 126.80 points at 3,309.24.

South Korea's Seoul Composite : Down 1.91% or 35.87 points at 1,840.90.

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US Markets take a blow on Friday !!!

Dow 13,181.91 Down 281.42 (2.09%)
Nasdaq 2,511.25 Down 64.73 (2.51%)

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KPR Mill Limited IPO : Opens Aug 2

KPR Mill Limited, a Tamilnadu based apparel company has come out with an IPO starting Aug 02. The proceeds of the IPO for expansion of its garment unit at Arasur which is in Coimbatore, for setting up a design studio, to construct a hostel at Arasur and to expand / construct new facilities to increase capacity.

Issue Opens : 02 August 2007
Issue Closes : 07 August 2007
Price Band : Rs 225 to Rs 265
Lead Manager : Kotak Investment Banking.

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Take Solutions IPO

TAKE Solutions Limited is a life sciences and supply chain management solutions company. The sum accumulated of the IPO will be used for repayment of loans, product development and to build a war chest for mergers and aquisitions. TAKE Solutions Limited recently acquired two US based companies (ie.) OnSphere Corporation and Applied Clinical Intelligence, LLC (ACI) for a cash consideration of $ 2.75 million and $ 2.4 million respectively.

Issue Price : 675-730
Issue opens : 01-Aug-07
Issue closes : 07-Aug-07

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Puravankara issue repriced to Rs 400-450

Puravankara Projects has repriced its issue to Rs 400-450 from earlier price band of Rs 500-525 per share. The issue will close on August 8. Grey Market Premium as of today is Rs 120.

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Everonn Systems touches Rs 560 on day of listing

Everonn Systems has listed with premium of 75% at Rs 245 over its offer price of Rs 140 per share on the BSE and touched a high of Rs 560 on strong buying interest and management's guidance of doubling topline and bottomline in FY08.

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Unitech declares 1:1 bonus, 25% dividend

Unitech Ltd on 31 July announced a bonus issue of shares in the ratio of 1:1 and a dividend of 25% on equity shares of Rs2 each.

The company on 30 July reported a near five-fold increase in its first quarter net profit this fiscal to Rs347.83 crore from Rs73.92 crore in the corresponding period last year. Total income on standalone basis rose to Rs788.73 crore during April-June 2007-08 from Rs306.21 crore in the same quarter of last fiscal. On consolidated basis, first quarter net profit stood at Rs365.67 crore on a total income of Rs899.67 crore.

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Everonn Systems to list on August 1

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Apply for Puravankara

Real estate is in boom and that boom may last for another six months. Again all issues of real estate companies are doing well on the bourses. People can take advantage of that without worrying of any thing and apply for the Puravankara Projects.

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Puravankara Projects IPO opens for subscription

Realty major Puravankara Projects is open for subscription with a public issue of 21,467,610 equity shares of Rs 5 each through a 100 per cent book building process. The price band is at Rs 500- 525 per share. The issue closes on August 3.

It proposes to raise Rs 1,070 crore at the lower end of the price band and Rs 1,123.50 crore at the upper end.

Puravankara Projects’ operations cover Bangalore, Kochi, Chennai, Coimbatore, Hyderabad, Mysore, Colombo and the UAE. The company has completed 14 residential and one commercial project totalling 3.93 million sq ft of developable area. Ongoing projects aggregate 12.20 million sq ft of saleable area.

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And the winner today are THE BEARS !!!

The markets closed in deep red tracking global peers. It was third biggest single day fall for Sensex in absolute terms. Sell off was seen in markets across the globe. The fall was initiated by US markets due to months of worry about the mortgage and corporate lending markets.

Real Estate, metal, cap goods, media were the worst hit. Sugar stocks did good for themselves. BSE Metal and realty index is down over 4%, followed by banking and capital goods index down over 3%.

Sensex closed down 541.74 points or 3.4% at 15,234.57 and Nifty closed down 174 points at 4445.

The BSE Midcap Index ended at 6,598.32 down 192 points or 2.8%.

The BSE Smallcap Index ended at 7,926.45 down 219 points or 2.7%.

The BSE Bankex was down 3.2% at 7,920.19. Canara Bank, Bank of Baroda, Oriental Bank, PNB, HDFC Bank moved downwards.

The BSE Capital Goods Index was down 3.8% at 12,748.77. Alstom Projects, Gammon India, Astra Microwave, Jyoti Structure, BHEL, Reliance Infra closed lower.

The BSE Health Care Index was down 2.6% at 3,691.36. Sterling Bio, Matrix Lab, Lupin, GlaxoSmithKline, Wockhardt closed lower.

The BSE Auto Index closed at 4,943.50 down 3%. Ashok Leyland, Escorts, Tata Motors, Hind Motors, Hero Honda, Tube Investment closed higher.

The BSE Metal Index closed at 11,501.52 down 5.3%. Tata Steel, Shree Precoated, Hind Zinc, Hindalco, SAIL
closed lower.

The BSE FMCG Index closed at 1,927.86 down 0.1%. United Brewerie, Dabur India, HUL, United Spirits, Bata India
closed higher

BSE Oil and Gas Index closed at 8,015.75 down 3.7%. ONGC, Reliance Natura, Petronet LNG, Reliance, HPCL ended in red.

The BSE IT Index lost 2.5% at 4,876.34. Mphasis, Patni Computer, Financial Tech, HCL Tech, Satyam, Wipro closed lower.

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Wall St indexes plunge, Asian markets also slide

Stocks plummeted on 26 July, with the Dow industrials tumbling more than 300 points, on signs of further weakness in the housing market and deteriorating conditions for corporate buyouts. The Dow Jones industrial average dropped 311.50 points, or 2.26%, to close at 13,473.57. The Standard & Poor’s 500 Index was down 35.43 points, or 2.33 %, at 1,482.66. The Nasdaq Composite Index was down 48.83 points, or 1.84 percent, at 2,599.34.

Asian markets also ended in red, with the benchmark Nikkei 225 tumbling more than 400 points to its lowest level in two months.

Hong Kong's Hang Seng plunged 2.23% or 517.73 points at 22,693.96.

Japan's Nikkei tumbled 2.32% or 410.82 points at 17,291.23.

Taiwan's Taiwan Weighted slipped 2.09% 199.68 points at 9,366.74.

Singapore's Straits Times declined 2.74% or 97.98 points at 3,481.75.

South Korea's Seoul Composite was down 2.60% or 51.13 points at 1,912.41.

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Triple Witching Hour : The Definition

"Triple Witching Hour" is the last hour on expiration day when all contracts (index options, index futures, stock options) expire. In the Indian context, it would be more appropriate to call this as “Quadruple witching hour” since individual stock futures also expire along with the aforementioned contracts. The day on which triple witching hour happens to be is called "Triple Witching Day".

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Markets end up high : Thanks to F&O expiry

The markets spiked in the late trade after witnessing sluggish trade for most of the day on triple witching day. The turnover was at record high of 1 lakh crore. It has been a spectacular July series for the markets. Today on F&O turnover side, marketwide turnover hit record high for the third day.

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Global Markets

Japan's Nikkei slipped 0.26% or 46.56 points at 17,811.86. However, Hong Kong's Hang Seng 0.57% or 132.89 points at 23,495.07, Taiwan's Taiwan Weighted rose 0.19% or 18.38 points at 9,758.5, South Korea's Seoul Composite was up 0.28% or 5.63 points at 2,009.85 and Singapore's Straits Times was flat at 3,632.38.

US markets: The Dow rose 68.12 points, or 0.50%, to 13,785.07, after trading up more than 100 points and down more than 40. Broader stock indicators also rose in shaky trading. The Standard & Poor's 500 index climbed 7.05 points, or 0.47%, to 1,518.09, and the Nasdaq composite index advanced 8.31 points, or 0.31%, to 2,648.17.

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Markets turn Bullish in mid-day trade

The markets are trading flat with buying support from select auto, pharma, IT and oil & gas stocks. The broader markets have outperformed the benchmark indices. The midcap index is up 0.9% and the smallcap index was up 1.2%. The market breadth is positive.

On the results front, Bharti's quarterly net profit almost doubled, beating forecasts, as its user base surged in the world’s fastest growing mobile market. Suzlon is down 6% on extremely weak numbers after getting a beating yesterday as well. The stock was down 6% on Wednesday.

Selling pressure is seen in capital goods and banking stocks.

Sensex is currently trading down 29 points at 15670 and Nifty is down 13 points at 4575.

Ranbaxy is up 7.56%. Ranbaxy Labs, Cipla, Satyam, Maruti Udyog, Bajaj Auto, Tata Motors, Mah and Mah are among the top gainers on the indices.

Fortis Health, Lakshmi Oversea, Bombay Dyeing, Gulf Oil Corp, NDTV, 3i Infotech, ICI India are among the top gainers in midcap space.

ACC, HDFC Bank, BHEL, Grasim are among the top losers on Sensex.

F&O space is buzzing on the settlement day, with profit booking witnessed across sectors.

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Asian Granito IPO bids start today

Asian Granito India, a manufacturer of vitrified tiles plans, is open for subscription with an IPO of 70 lakh equity share of Rs 10 each through a 100 per cent book building issue.

The price band has been fixed at Rs 85-102 per equity share. Consolidated FY 2007 EPS on post-issue equity workout to Rs 10.9. At the offer price band of Rs 85 – Rs 102, the P/E range works out to 7.8-9.3, respectively.

The company plans to utilise the issue proceeds to set up a wall tile unit as well as for modernisation and expansion of its existing vitrified tile plant at a total investment of Rs 61.37 crore.

Grey market premium of Asian Granito is between 28 to 30.

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Omnitech Allotment Subscription Details

Qualified Institutional Buyers (QIBs) : 61.75 times

Non Institutional Investors : 108.66 times

Retail Individual Investors (RIIs) : 50.95 times

Overall : 61.84 times

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Zylog Systems Limited Allotment : Subscription Details

Qualified Institutional Buyers (QIBs) : 89.55 times

Non Institutional Investors : 143.95 times

Retail Individual Investors (RIIs) : 35.13 times

Overall : 76.51 times

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Bears are back, but are they here to stay for long !!!

Share prices fell 0.61% in volatile trade, snapping a four-day record breaking run on weak global trends as investors locked in profits. Investors preferred to sell equities ahead of the expiry of the monthly futures contract on Thursday and after heavy losses overnight on Wall Street. Sensex closed 95.59 points down at 15,699.33.

Experts commented markets will remain volatile in coming days as investors are expected to further book profits. Earlier in the day Sensex lost over 200 points at mid-session following widespread losses in blue chip stocks, led by capital goods, realty and metal sectors, besides weak global markets.

Most of the sectoral indices were in the negative zone with sizable losses.

Given the current state of market where the Bulls were prevailing for last few days, running primarily on stocks with strong fundamentals, the markets should be again looking out for 16,000 mark once July expiry is over.

Hope the Bears are not here to stay for long or is there a correction in waiting !!!

Allied Digital debuts with 75% premium

Allied Digital Services, an IT Infrastructure Management Services provider in India, has listed with 75% premium at Rs 332.50 on NSE as against issue price of Rs 190 per share and touched a high of Rs 370.50 on good buying interest despite negative sentiment in the markets.

Company's strong track record and positive outlook also supporting the stock. The listing was as per analysts expectations, they were expecting at around Rs 325-360.

IFCI : Whats happening !!!

IFCI, the oldest financial institution in the country, is re-examining a move to sell a 26 per cent stake to a strategic partner. After turning profitable in the last quarter, the company is learnt to have decided first to build a robust business model and then go in for an equity sale.

According to highly placed sources, IFCI now feels it is better to have basket of investors purely for resource mobilisation. “The important thing is to have a robust business model rather than a strategic investor who will eventually impose a business model, the sources said.

“Once the new management is able to put in a new business model, it will attract a better valuation over the medium term,” they added.

According to a July 6 board resolution, IFCI was to come out with a public announcement on July 16 inviting interested parties for a stake sale of 26 per cent. The strategic investors were expected to make bids within a month of the announcement. Ernst & Young is the consultant for the process and has prepared the information memorandum. The IFCI board would meet again on August 4 to discuss the issue, sources said.

The IFCI share price is continuously slipping since July 6. It is currently trading at Rs 53.60, down from Rs 63 on July 6. Leading multinationals such as Nomura Securities and US-based funds have shown an interest in the IFCI stake. Sources said Barclays was expect to bid upward of Rs 80 per share, resulting in a valuation of over Rs 4,000 crore for IFCI.

Allied Digital may cross Rs 400 mark on listing: Experts

All of us who have been allotted Allied Digital stocks, lets keep our fingers crossed and wait till tomorrow morning to see how much steam does this stock hold. Experts are positive on the stock and expect a listing of 325-350 and if the market conditions are supportive the stock price might touch 400 in morning trading session.

Investors may book profits above 400(this is something which I am planning to do as well).

What is GREY MARKET PREMIUM ?

Cities like Ahmedabad, Kolkata and Rajkot are the most active centres for the IPO (initial public offerings) grey market.

The grey market is an unofficial market where trading of shares in forthcoming IPOs is conducted. A premium or discount indicates the level of retail interest in a public issue. Trades done in the grey market are settled on the day of listing. As per the rules of the game, once the deal is done at a stipulated price, the seller has to give delivery of shares after he has been allotted the shares by the company.

If the seller falls short in receiving the exact number of shares that he has sold in anticipation, then he will have to buy the shares from the market once the share gets listed in order to honour his commitment. Many traders short sell in the grey market if they feel that the premium on offer is unwarranted and that the stock may list at a price lower than what most market players expect it to.

Though grey market operators say that there is a constant change in the grey market premium, it largely depends on the subscription on the last day and the market conditions, post issue closing.

HDIL debuts with 13.5% premium

Real Estate Developer Housing Development and Infrastructure (HDIL) has listed with 13.5% premium at Rs 567.50 as against its issue price of Rs 500 per share on the BSE and touched a high of Rs 617.5 with good buying support and positive sentiment in the markets.

HDIL has started trading in F&O and the lot size will be of 400 shares. Options strike priced between Rs 200-800.

The company had come out with an IPO of 29.70 million shares at a price band of Rs 430-500. The issue was subscribed 6.6 times.

Everonn Systems Allotment Status

Click here for Allotment Status

Allied Digital Allotment Status

Click here for Allotment Status

Central Bank of India

Incorporated in 1911, Central Bank of India is the first Indian commercial bank which was wholly owned and managed by Indians. Central Bank of India branches are spread in 27 out of 28 States as also in 4 out of 7 Union Territories in India. Central Bank of India holds a very prominent place among the Public Sector Banks on account of its network of 3194 branches and 267 extension counters at various centers throughout the length and breadth of the country. Central Bank of India has over 25 million account holders.

IPO Information :

Public Issue Price: Rs. 85/- to Rs. 102/- Per Equity Share
Public Issue Open : July 24, 2007 to July 27, 2007
Public Issue Type : 100% Book Building Issue (Initial Public Offer IPO )
Public Issue Size: 80,000,000 Equity Share of Rs.10/- each
Maximum Subscription Amount for Retail Investor: Rs 100,000/-
Listing : BSE, NSE
Lead Manager: ICICI Securities, Citigroup, ENAM Financial, IDBI Capital Market, Kotak Mahindra.

IVR Prime Urban Developers Limited

Incorporated in 1996, IVR Prime Urban Developers Limited, a subsidiary of IVRCL, is a real estate development company focusing on integrated townships, residential developments, and commercial projects, including hotels, retail malls, IT parks and other projects in various parts of India. As on January 23, 2007, our Land Reserves consisted of approximately 2,298.75 acres, representing approximately 56.63 million sq. ft. of Saleable Area, in the cities of Hyderabad, Chennai, Bangalore, Pune and Noida.

IVR Prime Urban Developers has completed development of a built-up area of approximately 2 million sq. ft. consisting of 17 high rise towers with 664 apartments and 125 independent villas. IVR Prime Urban Developers are currently developing approximately 0.77 million sq. ft. retail mall with a multiplex cinema, which will include apparel stores, restaurant outlets and entertainment centres, as well as an IT park consisting of approximately 0.71 million sq. ft. office tower above the retail mall. In addition, we plan to develop a business hotel of approximately 0.50 million sq. ft.

For fiscal 2006 and the six months ending September 30, 2006, the Company had unconsolidated restated total income of Rs. 1,364.25 million and Rs. 691.27 million, respectively, and unconsolidated restated profit after tax of Rs. 117.04 million and Rs. 139.59 million, respectively.

IPO Information :

Public Issue Price: Rs. 510/- to Rs. 600/- Per Equity Share
Public Issue Open : July 23, 2007 to July 26, 2007
Public Issue Type : 100% Book Built Issue (Initial Public Offer IPO )
Public Issue Size: 14,150,000 Equity Share of Rs.10/- each
Market Lot: 10 Shares
Minimum Order Quantity: 10 Shares
Maximum Subscription Amount for Retail Investor: Rs 100,000/-
Listing : BSE, NSE
Lead Manager: Enam Financial Consultants Private Limited, Kotak Mahindra Capital Company Limited

Refex Refrigerants Limited

Incorporated in 2002, Refex Refrigerants Limited is an ISO 9001 Company engaged in the business of refilling non ozone depleting refrigerant gases popularly known as ‘HydrofluoroCarbons’ or ‘HFCs, which are used in Auto air conditioners, Room air conditioners, refrigerators and refrigerating equipments. Refex is a licensed refiller, authorised by the Department of Explosives (Government of India).

Presently Refex has an installed capacity of refilling 40 MT per month of refrigerant gases on single shift basis. Refex supplies its products to Original Equipment Manufacturers.

Refex has its processing and filling station at: 1/171, Old Mahabalipuram Road, Tiruporur-603110, Tamil Nadu. The existing factory has an installed capacity of 480 MT of Refrigerant gases per annum on single shift basis. The proposed expansion will increase the capacity to 3,000 MT per annum. Refexalso has a technical agreement with M/s Kaltech Engineering and Refrigerants Pte Ltd., Singapore (Kaltech).

IPO Information :

Public Issue Price: Rs. 65/- Per Equity Share
Public Issue Open : July 23, 2007 to July 26, 2007
Public Issue Type : Fixed Price Issue (Initial Public Offer IPO )
Public Issue Size: 38,00,000 Equity Share of Rs.10/- each
Market Lot: 25 Shares
Minimum Order Quantity: 25 Shares
Maximum Subscription Amount for Retail Investor: Rs 100,000/-
Listing : BSE
Lead Manager: Keynote Corporate Services Limited

Omnitech InfoSolutions Limited

Incorporated in 1990, Omnitech InfoSolutions Limited is a technology service provider and is dedicated to deliver a wide range of technology services as well as technology-enabled services. Omnitech offers business availability services, business continuity services, systems integration solutions, and framework solutions and products.

In business availability services Omnitech provides services such as infrastructure management services, application management services & software testing services. In business continuity services, Omnitech provide services such as disaster recovery management and disaster recovery consulting and auditing.

Omnitech has a large client base across the globe in different industry segments like BFSI (Banking, Financial Services & Insurance), Manufacturing, Utilities, Services, Government bodies, etc. Our clients include amongst others, prominent companies such as HDFC Standard Life Insurance Company Limited, CRISIL Limited and Citibank and Tandberg Data (a Singapore based company).

IPO Information :

Public Issue Price: Rs. 90/- to Rs. 105/- Per Equity Share
Public Issue Open : July 19, 2007 to July 25, 2007
Public Issue Type : 100% Book Building Issue (Initial Public Offer IPO )
Public Issue Size: [*] Equity Share For Cash Aggregating Rs. 3500 Lacs of Rs.10/- each
Market Lot: 60 Shares
Minimum Order Quantity: 60 Shares
Maximum Subscription Amount for Retail Investor: Rs 100,000/-
Listing : BSE, NSE
Lead Manager: UTI Bank Limited

Zylog Systems Limited

Incorporated in 1995, Zylog Systems Limited (ZSL) is a mid-sized solution based IT services provider, offering a wide array of service offerings to multiple verticals. Zylog offers a wide range of services including Application Development, Business Intelligence & Data Warehousing, Package Implementation, Testing etc across multiple domains.

ZSL has adopted a domain specific approach. BFSI contributes 34% of the revenues, telecom contributes about 22% of the revenues. The Company also focuses on Pharma, manufacturing and retail each contributing ~8% of the revenues for FY07.

ZSL's business mix is currently onsite centric (80% in FY06 and ~82% in FY07E). In order to cater to the offshore requirements of existing clients, as well as capture new business with its offshore presence, the company is expanding its offshore infrastructure. Zylog proposes to develop two Offshore Delivery Centers at Sholinganallur and Siruseri in Chennai respectively. With the planned increase in offshore capabilities, Zylog would be able to move greater composition of work offshore and position itself as a midsized offshore service provider.

ZSL's revenues have grown at a CAGR of 58% over FY 03 – FY 07 to Rs 4,034mn ($100mn) and PAT has grown at a CAGR of 56% over the same period to Rs 541mn.

Opinion : Apply

IPO Information :

Public Issue Price: Rs. 330/- to Rs. 350/- Per Equity Share
Public Issue Open : July 20, 2007 to July 25, 2007
Public Issue Type : 100% Book Built Issue (Initial Public Offer IPO )
Public Issue Size: 36,00,000 Equity Shares of Rs.10/- each
Market Lot: 20 Shares
Minimum Order Quantity: 20 Shares
Maximum Subscription Amount for Retail Investor: Rs 100,000/-
Listing : BSE, NSE
Lead Manager: Motilal Oswal Investment Advisors Private Limited

Read : Zylog Systems an attractive investment: Motilal Oswal
Zylog Systems an excellent bet, say experts