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L&T Infotech has come out with Initial Public Offering (IPO) of 17,500,000 Equity Shares of Rs 1 aggregating up to Rs 1,400.00 Cr. Incorporated in 1996, Larsen & Toubro Infotech, a subsidiary of Larsen & Toubro Ltd., a Mumbai based IT Solutions & Services Company. The company is ranked 6th largest IT company in India in terms of export revenues and among top 20 IT service provider in the world.

Competitive strengths of the company are as following:

1. Strong domain focus enabling Business-to-IT Connect
2. Strong parentage and brand equity of our Promoter
3. Established long-term relationships with our clients
4. Extensive portfolio of IT services and solutions
5. Track record of established processes and executing large, end-to-end, mission critical projects
6. Strong management culture
7. Conducive work environment to attract and retain talent.



The price band for the issue is fixed at Rs 705-710 and the offer comes at a price equity of 13.0x-13.1x trailing (FY16) earning per share (EPS), which is at 25-30 percent discount to peers like Mindtree & Hexaware. L&T Infotech is 24 percent and 83 percent larger than Mindtree & Hexaware, respectively in terms of revenue, and earns substantially higher returns on equity (RoE).

The issue is open from July 11 - July 13. 

So, should you subscribe? 
The offer price looks attractive, given its strong parentage, healthy return ratios and high dividend payout. The promoters have left something on the table for the investors in terms of valuations.

Coffee Day Enterprises (CDEL) is entering the market with an initial public offer (IPO) to raise Rs 1,150 crore at a price band of Rs 316-328 per equity share. The company owns the popular coffee chain – Café Coffee Day – and is the largest coffee retail company in India. The company also has diversified business interests through its subsidiaries across segments like logistics, financial services, hospitality, and technology parks.

The entire issue is for fresh equity which would be used by the company to finance the expansion of its coffee business, repayment and pre-payment of loans to the parent company as well as subsidiary and utilise the rest for general corporate purposes. At present, its promoters hold 63.3 per cent stake in the company; post-issue the shareholding will come down to 52.6 per cent.





Issue Details:

 Issue Open: Oct 14, 2015 - Oct 16, 2015
 Issue Size: Equity Shares of Rs. 10
 Issue Size: Rs. 1,150.00 Crore
 Face Value: Rs. 10 Per Equity Share
 Issue Price: Rs. 316 - Rs. 328 Per Equity Share
 Market Lot: 45 Shares
 Minimum Order Quantity: 45 Shares
 Listing At: BSE, NSE

At the higher end of the issue price, adjusting for the valuation of the listed plays (SLL and Mindtree) along with IT play, the coffee business is available at 25-26x its FY2015 EV/EBITDA which is in line with some of the listed comparable companies and thus is not cheap. However, given the strong brand image, extensive distribution reach and growing disposable income in India, the company is an attractive play on urban discretionary consumption and investors could look at it with mid-to-long term investment horizon. There may be listing gains, which risky traders would want to take to.

Goldman Sachs launches Central Public Sector Enterprises (CPSE) ETF, an open-ended scheme that consists of shares of 10 major public sector units, including Oil & Natural Gas Corporation, GAIL India and Coal India and it opens for subscription today with the government aiming to raise Rs 3,000 crore.


About the scheme:

The scheme which is open till 21 March 2014, will mirror the returns of the CPSE index from the National Stock Exchange, which is currently at 1855. The CPSE index has ten stocks, chosen on three criteria — a 55 per cent Government holding, a 4 per cent dividend yield, seven-year dividend paying record and a free float market cap of  Rs.1,000 crore or more.

Pros and Cons:

• Companies making up this fund have been selected for their dividend record in the last seven years, therefore, the fund is likely to receive steady cash flows from its holdings in the form of dividends. This will prop up its returns of the fund. 
• There is a 5 percent discount for investing in the NFO and also you get a discount in the form of loyalty bonus wherein for every 15 units, you get one unit free after one year.
• Investing in CPSE ETF is a low-cost route to investing in PSE stocks.

• At the same time these stocks have had a good run and also some of the stocks are part of the Nifty Index. And any profit booking in Nifty will lead to a substantial correction in these stocks as well. 

Hence, investing in PSE ETF can be considered only if  you can actively track returns and book profits when the stocks run up. Since the ETF is to be listed on the National Stock Exchange, one can wait and watch the performance of the fund and consider investing at a later stage.

Power Grid Corporation of India has come out with a further public offer (FPO) of 78.71 crore equity shares of Rs.10 each, comprising of fresh issue of 60.19 crore shares and an offer for sale of 18.52 crore shares by Government of India (GoI), in the price band of Rs. 85 to Rs. 90 per share. Retail investors and employees are offered a 5% discount on the discovered price.

Details of the issue:

Issue Open: Dec 03, 2013 - Dec 06, 2013
Issue Size: 787,053,309 Equity Shares of Rs. 10
Issue Size: Rs. 6,689.95 - 7,083.48 Crore
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 85 - Rs. 90 Per Equity Share
Market Lot: 150 Shares.

Power Grid owns and operates more than 90% of India’s inter-state and inter regional electric power transmission system and the company reported revenue of Rs. 7,559 crore and PAT of Rs. 2,280 crore for H1FY14, resulting in EPS of Rs. 4.91 on an equity of Rs. 4,630 crore. The company had earlier came out with a similar FPO in 2010 at a price of Rs.90 and the returns from that FPO were mediocre. Similarly, the current FPO is done mainly to meet the disinvestment targets and there is not much for investors or even traders to flip, unless the issue is priced at Rs.85. Considering fundamentals and the past performances of the issue,  investors can skip this issue.

Credit Analysis & Research Ltd (CARE) is the second largest credit rating company in India. CARE offers rating and grading services across a diverse range of instruments and industries including IPO grading, equity grading, and grading of various types of enterprises.The company being professionally managed has no identifiable promoter and has domestic banks and financial institutions as key shareholders.

Credit Analysis and Research (CARE) is entering the capital market on 7^th December 2012 through an offer for sale of 71.99 lakh equity shares of Rs.10 each in the price band of Rs. 700 - Rs. 750 Per Equity Share.

Issue Details:

• Issue Open: Dec 07, 2012 - Dec 11, 2012.
• Issue Size: 7,199,700 Equity Shares of Rs. 10. 
• Face Value: Rs. 10 Per Equity Share.
•  Issue Price: Rs. 700 - Rs. 750 Per Equity Share.
•  Market Lot: 20 Shares.
• Minimum Order Quantity: 20 Shares.
• Listing at BSE and NSE. 

On a consolidated basis, for 6 months ended 30th September 2012, company’s total income was Rs. 104 crore, with a net profit of Rs. 50 crore, resulting in net margin of 54.6% and EPS of Rs. 17.43, on equity of Rs. 28.55 crore.

India’s largest credit rating agency and S&P’s 53% subsidiary CRISIL at current price of Rs. 1024, quotes at a PE multiple of 34 times and  ICRA, in which Moody’s holds 28.5% equity stake, trades at 32 times. Whereas CARE, at the current IPO price is offered at lower P/E multiple of 20 times at the estimated EPS Rs. 35, which is attractive at current market conditions.

Hence, considering the valuations, investors can invest with a long term view and current market conditions favor those who invest for listing gains too.

Speciality Restaurants is coming out with its IPO plans to raise about Rs 171-181 crore and this issue is open for subscription from May 16 to May 18. Speciality Restaurants is the owner of restaurant brands such as Mainland China, Sigree, Machaan and Oh!Calcutta among others.

The company plans to use the proceeds of IPO for developing new restaurants and partial repayment of debt. About 80 per cent of the proceeds (Rs 131 crore) would be used for the development of 45 new restaurants.
 
Issue Details:

Issue Open: May 16, 2012 - May 18, 2012.
Issue Size: 11,739,415 Equity Shares of Rs. 10.
Issue Price: Rs. 146 - Rs. 155 Per Equity Share.
Market Lot: 40 Shares.
Listing At: BSE, NSE.

Fundamentals:

For the fiscal Years 2010 and 2011 the company  reported an EPS of  3.92 and 5.48 respectively .  For the full year 2012, the EPS could be around Rs.4.25 and at the upper band, the IPO is done at 36 times the 2012 earnings. The book value of the company stands at Rs.32 for the reported year 2011 and the issue is being done at 5 times the book value. The company is growing at 30% and considering the appetite for such companies in food industries segment, the issue is worth  looking at. The only deterrent is the weak market condition and over pricing of the issue, in such market conditions. The company might do well post-listing, if not immediately.

Could be another Jubilant Foods ? Let's wait and watch.

National Buildings Construction Corporation NBCC is coming out with an IPO of 12,000,000 Equity Shares of Rs. 10 each by way of an offer for sale of Equity shares by GOI. The company, started in 1960, is one of the few public sector companies engaged in the business of (i) project management consultancy services for civil construction projects (PMC) (ii) civil infrastructure for power sector and (iii) real estate development.

The company is headquartered in New Delhi and in addition has 10 regional / zonal offices across India. The projects undertaken by the Company are spread across 23 states and 1 union territory in India.

Issue Details:

Issue Open: Mar 22 - Mar 27, 2012.
Issue Size: 12,000,000 Equity Shares of Rs. 10.
Issue Price: Rs.90-Rs.106.
Listing At: BSE, NSE.
CARE Rating: 4 indicating above average fundamentals.
A Discount of 5 % on the Offer Price shall be offered to Retail Bidders and Employees.

Positives of the company:

1.Established brand name and reputation.
2.Operations in diverse sectors with strong Order Book position.
3.Qualified and experienced management.
4.Significant experience and track record.
5.Vast Industry knowledge and technical expertise.

Key Risks:

1.The company's revenues are significantly dependent on our PMC business. Any decline in PMC business, could adversely affect the company's business prospects, financial condition and results of operations.
2.Certain board of directors are involved in a number of legal proceedings, which may adversely impact the company's business reputation.
3.There could be cyclical risks associated with this industry.

NBCC IPO Price:

The EPS for the year ended March 31, 2011 is Rs.11.71 and latest EPS is  Rs.15. The book value stands at Rs. 72 and the issue is being offered at 1.5 times the book value. At the higher end of the offer price band of  Rs.90-Rs.106 , the P/E ratio is 7 times, where most of the infra and construction companies are available. Currently, similar companies under the sector are reeling under pressure and going by the current scenario the issue is an above average one. Though the sector offers substantial growth, the company itself growing at 20%, there are concerns and risk factors which could affect the company's earnings. At the indicative offer price, the issue is better for long-term investors only and for traders who want to sell on listing, it could be a tricky one.

Punjab and Sind Bank, a PSU Bank, is coming out with an IPO of 4cr shares of Rs.10 each in the price band of Rs.113- Rs.120. The main objective of the issue is to augment capital base to meet future capital requirements and other general corporate purposes.PSB is a mid-sized bank with a network of 920 branches, serving over 5m customers.

The bank has over 100 years of banking experience and established relationships with customers, including the Central and State Governments and public sector enterprises and their presence is predominantly in Punjab and other north Indian states.

The revenues for FY10 stand at Rs.4326cr and PAT at 506cr , resulting in an EPs of Rs.27. The book value of the bank is at Rs.105, while the most of the mid-cap PSU banks are quoting between 1-1.5 times book value, the pricing of the issue seems okay. Medium to Long term investors can go for this issue.

Details of the issue:

Issue Open: Dec 13, 2010 - Dec 16, 2010.
Face Value: Rs. 10 Per Equity Share.
Issue Price: Rs. 113 - Rs. 120 Per Equity Share.(5 % discount offered to retail investors)
Market Lot: 50 Shares.
Listing at BSE and NSE.

Manganese Ore India Limited (MOIL) largest producer of manganese ore and a 'Mini Ratna' PSU, is coming out with an IPO of 33,600,000 Equity Shares of Rs.10 each in the price band of 345-375. MOIL accounts for approximately 50.0% of India's total production of manganese ore and the company hopes to maintain its leadership position in the manganese ore market.

MOIL operates seven underground mines and three opencast mines to produce more then 1m tonnes of manganese ore. The company is well positioned to capture the growth potential of the Indian steel industry, due to its track record and strategic location of the mines. The key risk is that the Manganese ore and alloy industry has historically derived demand from the steel industry and hence is directly exposed to the volatility and the cyclicality of the global steel industry.

Details of the issue:

Issue Open: Nov 26, 2010 - Dec 01, 2010.
Issue Size: 33,600,000 Equity Shares of Rs. 10.
Face Value: Rs. 10 Per Equity Share.
Issue Price: Rs.340-375 Per Equity Share.
Listing at BSE and NSE.

The EPS for the year FY10 stands at Rs.28 and at the higher band of Rs.375 the company would be trading at 14 P/E, which is well priced. There is no direct comparable listed peer with which the stock can be compared with other than NMDC which trades at at 25 P/E.

With the expectations of robust growth in the domestic steel production, demand for manganese ore is likely to increase during the next few years. The domestic manganese ore demand to grow at a CAGR of about 9% during the next 2-3 years.

After the stupendous success of Coal India IPO, the MOIL IPO too, will evoke good response from institutional and retail investors. Hence, long term investors can apply for this issue and not for listing gains alone.

Power Grid Corporation of India,  India's biggest power transmission company is coming out with follow-on public offer of about 84 cr shares , which comprises a fresh issue of 42 cr shares and adding to that , an offer for sale of 42 cr shares by the President of India. The proceeds will be utilized for constructing country-wide high capacity power transmission corridors.

Details of the issue:
Issue Open: Nov 09, 2010 - Nov 12, 2010.
Face Value: Rs.10 Per Equity Share.
Issue Price: Rs.85- Rs.90.
Discount of 5% is available to retail investors.

The company's second quarter results were quite impressive. It announced a 41 percent increase in its net profit to Rs.651 crore and Rs.1,354 crore in first six months compared to the Rs.1,006 crore in 2009. The annualized EPS for the current year works out to Rs.6 and the FPO price of  85-90 makes the company available at 15 P/E, which is reasonably good. Currently the book value stands at Rs.40 and the offer is made at 2.25 times the book value.

Considering sound fundamentals, investors can subscribe to this issue with a medium to long term view. After the successful issue of Coal India, the Power Grid issue is also likely to be a hit.

Axis Mutual Fund has launched an open-ended Gold ETF, Axis Gold ETF. This is yet another Gold ETF similar to already existing Gold Bees and other ETFs. During the new fund offer (NFO) period, retail investors can apply for minimum of Rs.5,000 and multiples of Re.1.

After the NFO period, the fund will be traded on the National Stock Exchange and traded like equity shares. The fund will be open for subscription from October 20 to November 3.

Why Gold ETFs ?

Gold ETFs lets you buy Gold without the necessity of taking physical delivery and without the associated risks of physical storage and impurities.

Is Gold a good investment opportunity even at this prices?

Gold has seen a steady rise since last 5 years with an annualized return of about 24%, currently trading about Rs.2000 per gram. But over 15-20 year period it tends to average less than 10% . Currently high price rise in Gold prices is due to global risk-aversion and supply constraints, as production has dropped.

Is this price rise sustainable and how much one can invest in these funds?

For the past 2 years investments in Gold has yielded more than 50%,  this doesn't mean gold will tend to keep on rising further to get sustainable returns.  Any investment in gold can be considered as an insurance and diversification only.  Therefore investors need not allocate their entire amount or large junk of their portfolio in such Gold Funds. One could invest about 10% of their portfolio only , if they haven't already invested in earlier such schemes.

Coal India Limited, a Navratna PSU, is entering the capital markets with a public issue of 63 crore equity shares. This issue, slated to be the largest primary market offering in the history of the Indian Stock Markets, will garner around Rs. 15,000 crore.

Coal India is the world’s largest coal producing company, as well as the world’s largest coal reserve holder. The company has 471 mines across the country and manages over 80% of India's annual coal demand.

Details of the issue:
Issue Open: Oct 18, 2010 - Oct 21, 2010.
Issue Size: 631,636,440 Equity Shares of Rs. 10.
Face Value: Rs. 10 Per Equity Share.
Issue Price: Rs.225 - Rs.245 Per Equity Share.
Listing At: BSE, NSE.


Fundamental Details:

For FY10, the company reported total income of Rs. 52,592 crore with net profit of Rs. 9,834 crore, resulting in an EPS of Rs. 15.5. Comparing with NMDC, around a P/E of 16-17, the announced price band  of  Rs.225-Rs.245, is a  reasonably good price to invest for long term investors. A 5% discount offered for retail investors could add as an extra cushion factor. Investors can apply for this issue with a long term view and not for listing gains alone.

Eros International Media is entering the capital markets to raise Rs. 350 crore through an issue of 2cr equity shares.The main objective of this issue is for acquiring and co-producing Indian films and general corporate purposes. This company is part of the Eros group which has been in the entertainment business for over three decades.

The company is well poised to tap the opportunity presented by Indian Media and Entertainment Industry driven by rising regionalization and digitization through new distribution platforms like Digital Cable, DTH & IPTV. Distribution and sale of media content online also offers a huge potential for Eros.

Details of the issue:

Face Value: Rs. 10 Per Equity Share.
Issue Price: Rs. 158 - Rs. 175 Per Equity Share.
Market Lot: 40 Shares.
Listing At: BSE, NSE.
Issue Date: Sep 17, 2010 - Sep 21, 2010.

Eros International Media is currently valued at 18 x-19 x on FY10 EPS of Rs 8.8 and Rs 9.1 based on the price band of Rs 158-175, which is cheaper than that of UTV’s 41.6x and Shree Ashtavinayak’s 96.1x FY10 EPS. Considering the future growth prospects of Indian film industry, valuable content library, medium to long term investors can apply for this issue, which could give good listing gains too.

Reliance Mutual Fund launches its Nifty ETF namely Reliance Index Fund - Nifty Plan. We already have Nifty Bees  & other ETFs from leading fund houses and Reliance Mutual Fund is the latest fund to join the bandwagon. As with any other Index Fund, the objective of this fund is to replicate the composition of the Nifty, with a view to generate returns that are commensurate with the performance of the Nifty.

Minimum Investment is Rs.5000 and both Growth & Dividend options are available. The entry load is nil and the scheme will be open till 23 Sep 2010. SIP facility is available with a minimum investment of Rs.500.

Why should one invest in Index Fund?

Index Funds are the simplest of the mutual fund products to understand. S&P CNX Nifty is a true representative of Indian Economy, since the constituents are blue chip companies which are the most liquid and widely owned companies. This scheme provides an opportunity to participate in India's growth story by investing in a well diversified portfolio of 50 stocks.

But investors need to understand that, like any other mutual fund, the performance of the scheme depends on the performance of the Nifty. Hence it would be better to invest through a Systematic Investment Plan (SIP) in the Growth Option.This is an open-ended fund and not exactly an ETF. Index Investing is slowly catching up with investors' attraction and it won't be a surprise if see more such funds.

Career Point Infosystems has come out with an IPO of Rs. 115 crores for its expansion plans. The company provides tutorial services for All India pre-medical and pre-dental tests and for engineering, medical entrance exams such as AIEEE, IIT-JEE also.

The company has its presence through 33 centres mainly in North, East and Central India.The main objects of the issue is to meet expenses towards general corporate purposes and to construct and develop an integrated campus facilities.

Details of the issue:

Issue Size: Rs. 115.00 Crore.
Face Value: Rs. 10 Per Equity Share.
Price Band: Rs. 295 - Rs. 310 Per Equity Share.
Market Lot: 20 Shares.
Issue Open: Sep 16, 2010 - Sep 21, 2010.

To invest or not?

The net profit for FY10 was Rs. 18 crore with an EPS of Rs. 13.2 on an equity of Rs. 14.42 crore. The company is expects its business to grow at the rate of 30% with margins of about 33%. There is always a market fancy for education stocks and also, the company has allotted 6.56 lakh shares to anchor investors at Rs 310 a share, which is at the higher price band.

All these things make this IPO interesting which would give listing gains as well as for holding medium term to long term.

IDBI Mutual Fund has launched Nifty Junior Index Fund NFO, an open ended equity scheme tracking the CNX Nifty Junior Index. The investment objective of the scheme is to invest only in and all the stocks comprising the CNX Nifty Junior Index in the same weights of these stocks as in the Index, to replicate the performance of the Returns of CNX Nifty Junior Index.

Scheme Details:

Terms of Issue: Offer for units of Rs.10 per unit during the NFO and the minimum subscription amount is Rs.5000.
Load structure: Entry load: Nil; Exit load of 1% for Redemption on or before 1 year from the date of allotment.
Plans on offer: Growth Plan and Dividend Plan with option for dividend payout and re-investment.
SIP facility is available.
The offer is open from Sep 3 - Sep 15 2010.

So, what is this Nifty Junior Index Fund is all about?

The next list of liquid securities after CNX Nifty is the CNX Nifty Junior and it consists of 100 stocks selected based on liquidity. Also we don't have that many schemes tracking Nifty Junior apart from ICICI Prudential Nifty Junior Index Fund, which was launched just a few months ago.

We have Nifty Bees and many other ETFs and these kind of ETFs are yet to catch up the Indian investors in a big way. Hence, this scheme is for investors who want to invest in the next big index fund and with that an opportunity for them to buy the next heavyweight stocks of tomorrow.