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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.

Reliance Mutual Fund has come out with a New Fund Offering - Reliance Small Cap Fund with a objective of getting long-term capital appreciation out of predominantly investing in small cap companies. The scheme has been benchmarked against BSE Small Cap Index.

The minimum investment is Rs.5000 and SIP facility is available with a minimum amount of Rs.1000.While the entry load is nil, exit load of 2% would charged if redeemed within 12 months of the investment. The scheme has both dividend and growth options available. The issue is currently open and it closes on 9 September 2010.

So, to invest or no to?

The fund is a very aggressive small cap oriented fund which intends to invest in small sized companies. It is a high risk - high return oriented fund characterized by volatility which is expected to be smoothened out by staying invested over a longer term horizon.Although small-cap stocks are often perceived as risky relative to their large-cap counterparts, they have other characteristics that may provide an opportunity for portfolio diversification and return enhancement.

Reliance Mutual Fund does not have a mid or a small cap fund, but the fund house has a satisfactory track record in its existing equity funds, like Reliance Savings Fund. Hence, investments in Reliance Small Cap Fund can be considered by the investor with a higher risk appetite and who is willing to hold with a long term prospective only.

Mobile Trading is to kick-off soon in Indian Capital Markets, as the market regulator SEBI has given approval for the same. Currently, many brokers are providing web-based mobile trading, but the current form of mobile trading using wireless technology (including laptops with data card that use internet protocol), would make things lot easier for active traders.

Both the stock exchanges BSE and NSE are ready to provide the facility as soon the brokers set up their systems. The applications for mobile trading can be downloaded by the customers from their brokerage websites. The procedures for trading are same as that of online trading - on submitting an order to buy or sell shares, traders will be provided with the order confirmation and similarly modification or cancellation facilities will also be provided.

The traders would be aware of risks and difficulties involved in online trading, similarly they should also be aware of the possible risks involved in mobile trading too. Hope adequate steps are taken by the service providers and brokerages, to prevent misuse of this facility by unauthorised persons. As India is one of the fastest growing mobile phone markets and equally active trading population, the mobile trading is likely to be a hit.

Gujarat Pipavav Port which has developed and operates APM Terminals Pipavav, is coming out a public issue of 1.1 crore shares in the price band at Rs 42-48/share. The company promoted by APM Terminals Mauritius, has multi-cargo and multi-user operations. Other major shareholders include IDBI Bank and IDBI Trusteeship services.

Details of the issue:

Issue Open: Aug 23, 2010 - Aug 26, 2010.
Face Value: Rs. 10 Per Equity Share.
Issue Price: Rs. 42 - Rs. 48 Per Equity Share.
Listing At: BSE, NSE.

Fundamental Details:

The majority of the proceeds of this IPO will be used towards repayment of loan of about Rs.300 crs. By doing this the Debt/Equity of the company is expected to significantly reduce from 4.7x in September 2009 to 0.9x in CY12. The reduction in interest costs will help improve the profit margins significantly.

Currently the Book Value of the company is Rs.10 and at a price of Rs.48, the issue is done at 5 times the Book Value, which is expensive. Though there would be listing gains,due to positive market sentiment, long-term investors can wait before committing funds.