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ViJiT

ViJiT

Vijith Pujari
Reliance Communication announces unaudited March quarter results

Reliance Communication Ventures Ltd has announced the following unaudited results for the quarter ended March 31, 2006:

The Company has posted a net profit after tax of Rs 151.70 million for the quarter ended March 31, 2006. Total Income is Rs 625.60 million for quarter ended March 31, 2006.

The Proforma Consolidated results are as follows:

The Group has posted a profit after tax of Rs 4030 million for the quarter ended March 31, 2006. Total Revenue is Rs 29700 million for quarter ended March 31, 2006.

Further the Company has informed that the Board of Directors of the Company has appointed Shri. Deepak Shourie as Independent Director of the Company.

Commenting on the results, Mr. Anil Dhirubhai Ambani, Chairman, of the Company said:

"Reliance Communications - India's youngest, fastest, largest communications Company - maintained its market leadership, with product offerings best suited to the requirements of millions of customers across all segments and in each and every service area.

Our Wireless business achieved the highest ever acquisitions of 3.20 million customers in a single quarter, with our total base crossing a record 20 million customers as at March 31, 2006 - India's largest wireless customer base.

The EBITDA margin of the Wireless business expanded from 32% to 36%, led by record customer acquisitions, economies of scale, cost efficiencies and productivity gains.

Increased volumes in long distance voice and international data, combined with cost efficiencies, resulted in an expansion in EBIDTA margins of our Global business from 15% to 19%.

The Broadband business achieved revenue growth of 54%, and strong EBITDA margin expansion from 20% to 31% sequentially.

I am delighted that, with the listing of Reliance Communications during the quarter, our over 2 million investors now have the opportunity to directly participate in the Company's growth and value creation."
 
Proposal for demerger of real estate arm spurs Indiabulls

Indiabulls Financial Services 15% to Rs 362 after the company decided to hive off its real statement business into a separate company.

As many as 3.6 lakh shares changed hands in the counter on BSE.

Ahead of the announcement, the stock had jumped 10.9% on Saturday (29 April) to Rs 313.40. Though the stock had plunged 9.1% on Friday (29 April) to Rs 282.50, the scrip had staged a sharp intra-day rebound after news trickled in during late trading that SEBI had temporarily lifted the ban on Indiabulls Securities after a hearing with the brokerage, with respect to IPO scam.

Indiabulls Financial Services has decided to spin off its real estate business into a separate company, Indiabulls Real Estate. The shareholders of Indiabulls Financial Services would get one share of the new company for every share held, Indiabulls said in a late Monday release. Shares in new entity, Indiabulls Real Estate, will be listed on stock exchanges, the release added.

Indiabulls Financial Services, a predominantly stock-brokerage, has recently entered the real-estate business in a big way through its subsidiary companies. Only last week, Indiabulls had announced a 50:50 joint venture (JV) with DLF called Kenneth Builders & Developers to develop residential and commercial properties across India. To start with, Kenneth Builders & Developers has acquired 35.8 acres of land from Delhi Development Authority (DDA) through a competitive bidding process for Rs 450 crore. DDA had called for bids to develop residential projects under its public-private partnership project.

Early last week, Indiabulls Financial Services said its net profit for the fourth quarter ended 31 March 2006 increased to Rs 80.38 crore, compared to Rs 23.03 crore in the same period last year. The income for the same period rose by 179 % to Rs 195.5 crore, from Rs 70.06 crore, a company release stated.
Credit :-S&Y Market View
 
Friday, April 28, 2006
IPO listings for this week

1) Emkay Shares & Stock closed above its issue price

Emkay Shares & Stock, which listed on the stock exchanges, closed above
its issue price of Rs 120 per share.

2) Tantia Const ends at Rs 220 with premium of 340% on BSE

Tantia Constructions, which listed on the BSE, closed above its issue
price of Rs 50. It closed with attracting premium of 340%. Its BSE ID
is 532738. The issue was subscribed 82.68 times.

3) Powersoft Global closes below its issue price

Powersoft Global Solutions listed on the Bombay Stock Exchange, closed
below its issue price of Rs 22 per share. It opened at Rs 25 per share.
Its BSE ID is 532736.
 
IPO Updates

1) SEBI talks with stock exchanges to rate IPOs

Market regulator Sebi will put in place a mechanism for rating of public issues of companies in consultation with stock exchanges, reports The Economic Times.

2) RPL fixes issue price at Rs 60

Reliance Petroleum, RPL, has fixed its issue price at Rs 60 per share.
RPL had entered the capital market for subscription on April 13 with a public issue of 135 crore equity shares of Rs 10 each. The price band had been set at Rs 57 to Rs 62 for the issue. The issue had been subscribed 51.32 times.

3) Sun TV ends above its issue price

Sun TV, which got listed today, closed above its issue price of Rs 875 per share. It opened at Rs 1,111 on the BSE and at Rs 1000 on the NSE. On the BSE, the share closed at Rs 1466.05, with volumes of 52,98,866. It touched an intraday high of Rs 1500 and an intraday low of Rs 1061. On the NSE, the share closed at Rs 1464.65, with volumes of 1,15,85,515. It touched intraday high of Rs 1502.90 and an intraday low of Rs 1000.


4) Opto Circuits ends at Rs 392.20 on BSE

Opto Circuits which got listed today, closed above its issue price of Rs 270 per share.
It opened at Rs 392 on the BSE and at Rs 390 on the NSE. Its NSE ID is OPTOCIRCUI and BSE ID is 532391. The issue price was at Rs 270.

5) Godawari Power & Ispat to list on April 25

Godawari Power & Ispat will list on the stock exchanges on April 25, 2006. Its BSE ID 532734 and NSE ID is GPIL. The stock was issued at Rs 81.
 
Thursday, April 20, 2006
Reliance Petroleum IPO Over Subscribed 16.5 Times

According to the latest estimates available, the Initial Public Offer of Reliance Petroleum has been over subscribed 16.5 times.

Reliance Petroleum is a unit of petrochemicals major Reliance Industries Ltd. Reliance Petroleum is offering 450 million shares to the public to partly finance the Rs. 27,000 crores refinery being set up in a special economic zone at Jamnagar, in Gujarat. The project is likely to go on stream by December 2008. The issue, for which the indicative price band is Rs. 57 to Rs. 62 a share, opened on Thursday and closes April 20. Other than the current IPO, foreign funds have already bought 450 million shares at Rs.60 each in a pre-IPO placement. Reliance Industries subscribed for 900 million equity shares one day prior to the opening of the public issue at Rs. 62 a share, amounting to a total of Rs. 5,580crores. Chevron Corp. (CVX charts news PowerRating) is buying a 5% stake in Reliance Petroleum Ltd. for $300 million, with an option to increase its stake to 29%. After the IPO, the total outstanding equity of Reliance Petroleum will be 4.5 billion shares, with parent Reliance Industries holding about 75% equity.
 
Monday, May 01, 2006
IPO market to come out stronger after fraud, say experts

One major concern, according to experts is small retail investors looking for redemptions. If this does happen, then there would be a liquidity crisis for the next few days, atleast before one starts to think of buying.

According to the Investment advisor, PN Vijay, the positive side to the IPO scam is that the IPO market will come out stronger after the fraud.

He said that one should allow stabilization to take place in the markets. The derivative market is expected to go under a bit of spin and will take a couple of days to settle again.

However, at the same time the great thing is that corporate results have been very good, which will attract buyers at lower levels, he says adding fundamentally things haven't changed much.

Experts further say that the important thing to look at now is reaction from FIIs. If it dents their confidence then there could be a phase of prolong weakness, else situation may improve after a probable initial wild reaction, they say.

It is a big relief for brokers like Anagram Securities and Karvy, as the Sebi has issued revised orders allowing them to trade on behalf of their clients.
 
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Enjoy...
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FIs, retail buyers bail out Cairn

FIs, retail buyers bail out Cairn

Cairn India’s initial public offering (IPO) got a weak response from investors and just managed to get subscribed, thanks to last-minute intervention from institutional investors and retail buyers.

Cairn barely managed to scrape through with a subscription of 1.11 times, according to data on the NSE website till late evening.

Investment banking circles blamed it on recent stock market volatility, unresolved issues over the evacuation of crude oil from Rajasthan fields, and aggressive pricing of the issue as the main factors for the lukewarm response.

Many qualified institutional buyers are reported to have scaled down their bid size as well as revised their bid price to the lower end of the Rs 160-190 price band on the last day. The scaling down of bids is evident from the fact that the 32.88-crore share issue had been subscribed 1.3 times on the day it opened for subscription.

With some investors scaling down the size of their bids, the extent of subscription came very close to the critical90% mark during the early part of the day. However, the number graduallyincreased as retail applications trickledin and the issue was able to close successfully. Market watchers are intrigued by the apathy to the Cairn IPO, given the positive outlook on the energy sector, the strong pedigree, and the fact that India is now a key destination for most foreign institutional investors.

“A two-day volatility should not really unnerve institutional investors, who are long-term players,” said an investment banker who was not part of the IPO. Prices of crude oil have stabilised around $60 per barrel of late, nearly 25% off their record highs seen earlier this year, but still significantly higher than the levels a couple of years ago.

Another IPO which opened for subscription on Monday, Tanla Solutions, and which closed on Thursday, was subscribed 38 times. The issue managed to generate bids worth Rs 7,000 crore plus – more than what Cairn had been able to do by Friday evening.

A strong oversubscription denotes big demand for the stock – critical for the price to appreciate and sustain after listing. Market sources said a weak demand at the time of subscription indicates that the stock could come under pressure during listing.

A banker associated with the issue said if the issue price is below Rs 176.48 – the price at which Cairn had conducted a pre-IPO placement – Cairn India will have to reduce the price for the investors, as per the agreement between Cairn and the investors. Among the biggest investors was Malaysian oil major Petronas, which had picked up 10% at Rs 3,700 crore.

Another reason for the weak response is the unresolved issue of the offtake of Rajasthan crude. Cairn India and the buyer Mangalore Refineries (MRPL) have not agreed on the price for the crude or the mode of evacuation. Cairn had said it may help fund the laying of the pipeline to evacuate the crude. It is not clear whether the link will be built by the time production starts in 2009. The 310-mile pipeline linking the fields in Rajasthan to a port in Gujarat is estimated to cost about Rs 2,000 crore.
 
Spice Communications: Avoid

Investors can refrain from subscribing to the IPO of Spice Communications being made in the price band of Rs 41-46. The company is a pure-play mobile services provider in Punjab and Karnataka, with a combined subscriber base of about three million. Faced with high debt and vendor dues, Spice hopes to raise funds for the twin purposes of part-repayment of debt and future expansion. Though the asking price values Spice at a discount to competitors, such as Bharti and Idea, the company's track record, cost-structure and trends in business growth in recent years suggest that it may not be well-placed to capitalise on the growth opportunities in mobile services, amidst intensifying competition.

Of the IPO proceeds of about Rs 520 crore (at the higher end) and the pre-IPO placement of Rs 112 crore, half is to go towards part-repayment of debt (which stands at about Rs 1,200 crore), and the rest to pay licence fees for starting NLD (national long-distance) and ILD (international long distance) services and repayment of vendor dues (Rs 63.6 crore and Rs 177.6 crore respectively).

Business overview

Spice has been in operation for over 10 years now (inception 1997) and is yet to turn PAT (profit after tax)-positive. The balance-sheet shows accumulated losses of over Rs 684 crore as of December 2006. Other regional players such as Aircel and Idea fare better on the above parameters. Aircel, Bharti Airtel, and Idea, which also commenced mobile services in 1997-98, turned profitable within six-seven years and acquired a national footprint.

Spice appears to have lagged its peers in optimising its network operating costs, possibly signalling that it may not be getting the best deals from its network equipment vendors. At 40 per cent of revenues, the proportion of network operating cost for Spice is a clear 15-20 percentage points higher than that for Idea and Bharti. An increasing trend in these costs over the last three years is also of concern, for future profitability.

Second, trends in Spice's subscriber additions over the last year do not compare favourably to competition. It has only managed to add about 82,000 subscribers a month in Punjab and Karnataka, while Airtel has managed to add nearly 2.5 lakh subscribers per month. BSNL and Hutch have added more than a lakh subscribers a month over the past year in these two circles. Spice ranks fifth among the six mobile service operators in Karnataka, but is better-placed in Punjab, where it is second in terms of subscriber numbers. Aircel, which added 1.5 lakh subscribers a month in the last year, despite being a regional player, has managed to retain its leadership position in terms of subscriber base in both the Chennai and Tamil Nadu Circles. For Spice, the modest subscriber additions and a rapidly-falling ARPU (average revenue per user) over the last couple of years are threats to revenue growth.

Third, a substantial portion of this IPO is to go towards part-debt repayment, vendor payment and licence fees to commence NLD and ILD services. Though this would reduce interest costs, the company may be left with little to be deployed in a national rollout of mobile services. In any case, with only part repayment of debt, interest costs will remain at relatively high levels.

final view
" The company's track record, cost structure and trends in business growth suggest that it may find it difficult to capitalise on growth opportunities amidst competition."
 
Re: TRADING_ARBITRAGE_WITH_BOX_SPREAD_STRATEGY

Lotus India Growth Fund
By Research Desk | Jun 29, 2007


Lotus India Mutual Fund comes out with its new equity diversified fund after a gap of 3 months.

Name of fund: Lotus India Growth Fund

Scheme: Open-ended, Equity Diversified

Objective: Generate long-term capital growth by investing in equity and equity related securities following a bottom-up approach.

Asset allocation: Equity: 65% - 100% / Debt and money market securities: 0%-35%

Fund opened: July 9, 2007

Fund closes: July 19, 2007

Face Value: Rs 10

Minimum investment amount: Rs 5,000

Fund Manager: Tridib Pathak

Benchmark Index: BSE 100 Index
 
data related to the IPO scam


IPO SCAM (2005):
The IPO Scam was unearthed in June 2005 when SEBI through its examination of the IPO dealings of Yes Bank and IDFC revealed that certain entities had cornered IPO shares reserved for retail investors by applying in small quantities through thousands of `benami' or fictitious names.
After allotment, these shares were transferred through a series of off-market transactions to financiers, who, in turn, sold most of these shares on the day of listing and made a windfall gain of the price difference between the IPO price and the listing price, the SEBI investigation shows. The following is the list of individuals and their brokers and bankers who were caught in the Scam:
Individual No. of suspected benami Demat A/Cs Depository Participant Bank
Roopalben Panchal 27,064 Karvy Stockbroking Bharat Overseas Bank
Purshottam Budhwani 8,476 Karvy/Pratik/Anagram/ING Vysya/HDFC HDFC & ING Vysya Bank
Sugandh Estate 10,181 Karvy Stockbroking Vijaya Bank
Manojdev Seksaria 2,205 KArvy Stockbroking Not Known
The above individuals were charged with making multiple applications in IPOs and garnering the share of retail investors. They were suspected to be involved in the IPOs of 21 companies. Some of them are YES Bank, IDFC, Gateway Distriparks, Gokaldas Exports, Shoppers’ Stop, SPL Industries, Provogue India, Nector Lifesciences, IL&FS Investmart, Suzlon Energy.
The involvement of Stockbrokers and Banks in the Scam was also scrutinized by SEBI as it was not possible to open such a large number of fictitious accounts without their involvement.
In the wake of the IPO Scam, SEBI took measures to curb any such happenings in future. Due to the gross violation of Know Your Customer (KYC) Norms on the part of the stockbrokers, SEBI barred those involved from further carrying operations. A few orders of SEBI were however overturned when the parties applied to the Securities Appellate Tribunal. To prevent multiple applications, SEBI also made it mandatory for all applicants to disclose the PAN (Permanent Account Number) issued by the Income Tax Department in the application forms
 
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