Bulls Vs Bears: August 2007

Wednesday, August 29, 2007

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.

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.

Friday, August 24, 2007

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).

Thursday, August 23, 2007

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.

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.

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.

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

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

Tuesday, August 21, 2007

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

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.

Monday, August 20, 2007

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.

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%.

Thursday, August 16, 2007

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.

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.

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

Friday, August 10, 2007

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

Wednesday, August 8, 2007

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.

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).

Tuesday, August 7, 2007

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.

Monday, August 6, 2007

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.

Sunday, August 5, 2007

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.

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%)

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.

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

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.