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Buy -Sell Technical Calls - SEP 5th 2011

2011-09-04T23:46:00.005+05:30

Buy Calls - BULLISH CALL

SELL CALL - Bearish Events

Symbol Exchange Name Event Close at Event Target Price Range Opportunity Type 500085 BSE Chambal Fertilisers and Chemicals Ltd Upside Breakout 112.9 119.00 - 122.00 Short-Term Bullish 500875 BSE ITC Ltd Symmetrical Continuation Triangle (Bullish) 203.2 221.00 - 225.00 Intermediate-Term Bullish 503162 BSE Reliance Chemotex Industries Ltd Upside Breakout 138.25 174.00 - 184.00 Long-Term Bullish 507880 BSE VIP Industries Ltd Symmetrical Continuation Triangle (Bullish) 892.8 1,056.00 - 1,100.00 Intermediate-Term Bullish 526441 BSE Vision Technology India Ltd Continuation Wedge (Bullish) 5.32 7.00 - 7.40 Intermediate-Term Bullish GITANJALI NSE Gitanjali Gems Ltd Symmetrical Continuation Triangle (Bullish) 319 352.00 - 361.00 Intermediate-Term Bullish HINDPETRO NSE Hindustan Petroleum Corp Ltd Symmetrical Continuation Triangle (Bullish) 381 420.00 - 429.00 Intermediate-Term Bullish ITC NSE ITC Ltd Symmetrical Continuation Triangle (Bullish) 203.05 221.00 - 225.00 Intermediate-Term Bullish MAXWELL NSE Maxwell Industries Ltd Upside Breakout 24.85 29.10 - 30.10 Intermediate-Term Bullish RAJESHEXPO NSE Rajesh Exports Ltd Ascending Continuation Triangle 112.95 122.00 - 125.00 Short-Term Bullish RAJESHEXPO NSE Rajesh Exports Ltd Bottom Triangle 112.95 129.00 - 133.00 Intermediate-Term Bullish RAJESHEXPO NSE Rajesh Exports Ltd Continuation Diamond (Bullish)^W 112.95 414.00 - 482.00 Long-Term Bullish RBN NSE Reliance Broadcast Network Ltd Continuation Wedge (Bullish) 82.5 95.00 - 98.00 Intermediate-Term Bullish TFCILTD NSE Tourism Finance Corp of India Ltd Bottom Triangle 30.3 38.00 - 39.75 Intermediate-Term Bullish TFCILTD NSE Tourism Finance Corp of India Ltd Symmetrical Continuation Triangle (Bullish) 30.3 34.75 - 35.75 Intermediate

-Term Bullish VIPIND NSE VIP Industries Ltd Symmetrical Continuation Triangle (Bullish) 907 1,057.00 - 1,102.00 Intermediate-Term Bullish

Symbol Exchange Name Event Close at Event Target Price Range Opportunity Type 504614 BSE Sarda Energy and Minerals Ltd Rounded Top^W 138.15 59.00 - 72.00 Long-Term Bearish 506395 BSE Coromandel International Ltd Top Triangle 300.80 236.00 - 248.00 Intermediate-Term Bearish 523810 BSE Kaleidoscope Films Ltd Rounded Top^W 22.00 11.50 - 13.25 Long-Term Bearish ANANTRAJ NSE Anant Raj Industries Ltd Continuation Diamond (Bearish) 63.55 24.00 - 32.00 Intermediate-Term Bearish CADILAHC NSE Cadila Healthcare Ltd Top Triangle 823.10 608.00 - 649.00 Intermediate-Term Bearish COROMANDEL NSE Coromandel International Ltd Top Triangle 300.00 235.00 - 248.00 Intermediate-Term Bearish GREENPOWER NSE Orient Green Power Company Limited Symmetrical Continuation Triangle (Bearish) 12.90 8.20 - 9.00 Intermediate-Term Bearish

Source: Sharekhan.com

BUY MARUTI : Target 1316 : The NEW swift gamechanger

2011-08-31T15:44:00.003+05:30

Stock price of Maruti has seen a sharp correction due to a slew of negative headwinds being faced by the company. Apart from aggressive competition, the company is also facing the impact of the appreciating Yen and the ongoing strike at its Manesar plant.

We believe that the current valuations are pricing in the negatives and provide an attractive investment opportunity. Apart from moderate valuation, we argue that most of the headwinds would eventually recede, thereby placing the company back on the improved growth and margin trajectory. The key concern remains the ongoing tiff with workers at the Manesar plant which may further aggravate and / or get extended for a longer period.

Find the Report from Sharekhan : Download

Source: Sharekhan.com

Technical Buy/Sell Calls : Aug 30th 2011

2011-08-31T15:22:00.003+05:30

World Market Crash : Dow down nearly 400 points

2011-08-18T21:33:00.002+05:30

The Dow Jones industrial average (INDU) dropped 420 points, or 3.7%, after falling as much as 528 points. The S&P 500 (SPX) was down 46 points, or 3.8%; and the Nasdaq Composite (COMP) lost 106 points, or 4.3%.

Buy Tech Mahindra : Target 760

2011-08-18T21:15:00.001+05:30

•Tech Mahindra posted an in-line dollar revenue growth in Q1FY12 of 4.1%. The volumes were weak at 2% qoq with positive cross currency movement backing the decent volume growth. Rupee revenue were up 2.5% qoq to Rs12.9bn impacted mainly by appreciating rupee.

•Volumes from BT (top client) revenues remained flat qoq, in-line with management expectations with reported revenues growing ~1.6% qoq due to GBP appreciation. Non-BT clients grew at strong pace of 5.5% qoq in dollar terms mainly due to the growth in Rest of the World (+6.6 % qoq). On the other hand US/Europe grew slowly at 2.3%/1.8% qoq respectively. Client metric continued to be weak with no incremental addition sequentially.

•On BT outlook, management commentary was cautious as they stated that material portion of its BT business to be coming up for re-bid and that company would have to face competitive pressures in securing the business again. We expect a downward bias to the earlier indicated stable quarterly run-rate of GBP70-72mn as company may have to face pricing pressures going ahead.

•Operating margin was down materially by 183bps qoq to 18.7% against our expectation of 50bps expansion. This came in a disappointment especially in the absence of any wage hikes during the quarter. The correction was mainly due to the sharp decline in utilization by 300bps qoq due to strong fresher intake (especially in BPO), rupee appreciation and higher contribution of BPO/emerging markets. Wage hikes effective 1st July, strong ramp-ups from BPO, possible pricing pressures from BT re-negotiation are near term headwinds for the margin. Net Profits (excluding Satyam) were marginally higher than expectation with strong forex gain (US$8mn) and lower depreciation. Reported PAT was up strongly on the back of impressive performance by Satyam (+Rs960mn as a share of profit). On the tax front, company expects 22-23% tax rate for FY12.

•Employee additions were strong at 4517 (~12% of Q4FY11 base) on the back of ramp-ups in key deals won especially in BPO space (+2800 employees sequentially) in last couple of quarters. Company stated that the addition was largely to back fill attrition and for growth. We expect broadening of employee pyramid to be a material lever going head.

•Company expects ramp-ups of deals won in recent past to fuel growth for H2 FY12 and continuous to be cautiously optimistic on the growth outlook. BT business re-negotiation and higher than expected margin fall were the material negatives during the quarter. Consequent impact of both is expected to bear the brunt on the top-line visibility as well as margin performance (impending salary hikes in Q2 FY12 & higher contribution from BPO). No signs of revival in spending momentum in telecom remains the key overhang.

•Revising estimates to reflect sluggish core business as well as Satyam’s improving performance. Maintain MP.

Buy BPCL: Target 400

2011-08-18T21:08:00.002+05:30

CMP Rs385, Target Rs400, Upside 3.9%
• HPCL reported a net sales growth of 39.6% yoy in Q1 FY12 primarily on back of 11.7% increase in sale volumes and higher realizations (in line with crude oil price movement and price hikes implemented by the government).
• Throughput was higher at 4mn tons v/s 3.9mn tons in Q1 FY11 as both refineries operated for the full quarter.
• Quarterly GRMs were at US$1.2/bbl v/s US$3.22/bbl despite strong global trends owing to inventory losses on the raw material front.
• Gross under recoveries were at Rs95bn as compared to Rs44bn in Q1 FY11. Rs31.7bn was borne by upstream (Rs14.7bn in Q1 FY11), while government contributed Rs32.7bn (as against nil in Q1 FY11).
• HPCL reported a loss of Rs30.8bn v/s loss of Rs18.8bn in Q1 FY11 primarily on back of higher net under recoveries, poor refining performance, 34% jump in interest costs and 15.5% lower other income.
• Maintain Market Performer rating as we feel the upsides from the recent regulatory moves are priced in. We revise our 9-month target price to Rs400

(Rs mn) Q1 FY12 Q1 FY11 % yoy Q4 FY11 % qoq
Net sales 409,169 293,015 39.6 398,922 2.6
Material costs (147,057) (97,951) 50.1 (109,845) 33.9
Purchases (271,150) (197,416) 37.3 (241,210) 12.4
Personnel costs (5,395) (3,662) 47.3 (7,860) (31.4)
Other overheads (11,251) (9,325) 20.7 (18,002) (37.5)
Operating profit (25,684) (15,339) 67.4 22,005 -
OPM (%) (6.3) (5.2) (104) bps 5.5 (1,179) bps
Depreciation (3,886) (3,174) 22.4 (4,015) (3.2)
Interest (2,641) (1,968) 34.2 (2,255) 17.1
Other income 1,397 1,653 (15.5) 1,911 (26.9)
PBT (30,815) (18,829) 63.7 17,645 -
Tax - - - (6,282) -
Effective tax rate (%) - - 35.6
Adjusted PAT (30,815) (18,829) 63.7 11,363 -
Adj. PAT margin (%) (7.5) (6.4) (111) bps 2.8 (1,038) bps
Extra ordinary items 12 (14) - (137) -
Reported PAT (30,803) (18,843) 63.5 11,227 -
Source: Company, India Infoline Research

Financial summary
Y/e 31 Mar (Rs m) FY10 FY11 FY12E FY13E
Revenues 1,076,375 1,341,199 1,489,813 1,660,769
yoy growth (%) (13.7) 24.6 11.1 11.5
Operating profit 25,432 39,298 44,307 45,197
OPM (%) 2.4 2.9 3.0 2.7
Reported PAT 13,014 15,543 16,850 17,464
yoy growth (%) 126.3 18.3 9.5 3.6

EPS (Rs) 38.4 45.8 49.7 51.5
P/E (x) 10.0 8.4 7.7 7.5
Price/Book (x) 1.1 1.0 0.9 0.9
EV/EBITDA (x) 13.4 9.7 8.1 7.7
Debt/Equity (x) 1.8 2.0 1.8 1.6
RoE (%) 11.7 12.9 12.8 12.0
RoCE (%) 8.7 8.6 9.1 9.0
Source: Company, India Infoline Research

Buy Orient Papers; target of Rs 92: Networth Capital

2010-06-23T23:23:00.000+05:30

Networth Capital is bullish on Orient Paper and Industries and has recommended buy rating on the stock with a target of Rs 92.

“Orient Papers & Industries (consolidated) is currently trading at $69 EV/tn is at a steep discount of 35% to the peer group. The current price reflects the value of only the cement business, whilst paper, electricals, investments and land are virtually ‘free’. With significant cost advantage, turnaround in paper business, promising electrical division outlook and significant investments, we initiate coverage on the stock with a BUY rating and a SOTP price target of Rs 92 per share," says

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management.
Source :Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

SEL Textiles file DHRP ; Plans for IPO

2010-03-16T22:55:00.001+05:30

SEL Textiles, a subsidiary of SEL Manufacturing Company and the flagship company of RS Saluja Group, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for public issue of 1.1 crore equity shares.

The issue consists of reservation of 2 lakh equity shares for eligible employees and the remaining 1.08 crore equity shares for public. The issue will constitute 27.76% of the fully diluted post issue paid-up capital of the company.

SEL Manufacturing Company, a holding company, will dilute its stake to 72.06% from current 99.75% through this issue.

SEL Textiles is engaged in the business of manufacturing combed and carded cotton yarns, which are appropriate for apparels, suitings & knitted fabrics.

The company intends to use issue proceeds for setting up a new facility for manufacturing of Terry Towels with an installed capacity of 3600 TPA.

It acquired the existing spinning unit known by the name of ‘Prerna Syntex at Neemrana, Rajasthan from Vast Textiles in June 2009 with an installed capacity of 24,960 spindles to produce 16.80 tonnes cotton yarn per day. The company has entered into an MoU dated August 21, 2009 for the acquisition of a existing spinning unit at Hansi, Haryana from Radhika Fibres India Limited, New Delhi with an installed capacity of 25,200 Spindles to produce about 17.08 tonnes of cotton yarn per day.

For the period of nine months ended on December 2009, it has reported profit of Rs 72.64 lakh on total income of Rs 18.8 crore.

SEL Manufacturing Company had raised over Rs 35 crore via public issue in July 2007.

The book running lead manager to the issue is Saffron Capital Advisors Private Limited and Link Intime India Private Limited is the registrar.

Source :MoneyControl.com

COAL India IPO cleared by SEBI

2010-03-16T22:39:00.003+05:30

The Securities and Exchange Board of India (SEBI) on Saturday approved Coal India Ltd's (CIL) proposal to offer 1% share to its own employees as well as those employed in its subsidiary companies through an initial public offer (IPO), according to the CIL Chairman, Partha S Bhattacharyya.

The regulator previously held that shares could be offered only to the employees of CIL. However, considering that nearly 99% of the four-lakh workers are under the mining subsidiaries wholly-owned by CIL, such restrictions would have cast a shadow over the coal major's plan to convert its workers into stake-holders in the organisation.

Taken from

The Hindu Business Line

Persistent Systems IPO : What are Stock Brokers View?

2010-03-16T22:30:00.002+05:30

Hem Securities has come out with a research report on Persistent Systems' IPO. The broking firm has recommended investor to apply for this issue.

Pune based software product development company is entering capital market with an initial public offering (IPO) of 54,19,706 equity shares of Rs 10 each on March 17, 2010. The company will raise around Rs 157.17-168 crore at price band of Rs 290-310 per equity share.

The report says, "The company is bringing the issue at price band of Rs 290-310 which will turn into P/E multiple of 11.54-12.34 at post issue annualized EPS of Rs 25.12.The company has posted robust financials from last few years. Being one of the market leaders in outsourced software product development service, the company is on the high growth trajectory .Also, the debt free status of the company has added one more feather to its cap. Hence we recommend investor to apply for this issue."

http://www.moneycontrol.com/news_html_files/news_attachment/2010/Persistant%20-%20Hem.pdf

India Needs $500 bn Investment in Next 5 years

2008-04-03T19:33:00.002+05:30

India would have to invest about $500 billion in five years to sustain the current growth rate of around nine per cent and US firms would not miss an opportunity to have a stake in the investments, an official of the US consulate in Chennai said.

The USA would look for opportunities to invest in infrastructure in India, as the nation had been posting a nine per cent growth rate over the last three years, Frederick J Kaplan, consul for public affairs,US consulate general said.

Delivering a special lecture on 'Indo-US' relations at the Bharathidasan University here yesterday, he said the relations between the two countries had gained momentum in the recent past, more specifically when India opted for economic reforms 'under the guidance of Prime Minister Manmohan Singh,' he said.

With the advent of economic reforms in the 1990s,India had envisaged strategic partnership with yet another democracy in varied fields like technology, health, agriculture, defence.

He said there were more than 250 Indian scientists working in the USA on the health front to combat diseases like leprosy, polio, tuberculosis, HIV, cancer and diabetes. Not to exaggerate, American Industry would come to a standstill without the crucial participation of Indian skills and their dedicated service attitude, he said.

Kaplan said American citizens are attracted towards the spiritual and cultural richness of India and expressed the hope that institutions like Bharathidasan University would extend a helping hand towards fostering the centuries old relationship between the two countries.

Kiri Dyes & Chemical IPO Subscription Details

2008-04-03T19:30:00.001+05:30

The initial public offer of 37.5 lakh equity shares of Kiri Dyes and Chemicals was on Wednesday subscribed 1.43 times up to 5 pm, as per the NSE website.

The issue received 53,49,960 bids. Around 30,49,110 bids were received at cut off price.

The company has fixed a price band of Rs 125-Rs 150 per share. The issue constitutes 25 per cent of fully diluted post issue paid up capital. The issue closed today.

The qualified institutional investors' portion of 18,75,000 shares was subscribed 0.92 times, while 5,62,500 shares allocated to non-institutional investor received 1.84 times subscription. However, the retail portion was subscribed only 0.17 times of the 13,12,500 shares allocated to them.

The company has made pre-IPO placement of 12,50,000 shares comprising 1,31,140 shares at Rs 120 and 11,18,860 shares at Rs 115 per share.

RITES IPO DRHP filed with SEBI

2008-04-03T19:27:00.001+05:30

State-run RITES Ltd has filed documents with the markets regulator for an initial public offer for 14 million shares, the company said on Tuesday.

The book-built issue comprises of fresh issue of 10 million shares, and sale of 4 million shares by the federal government, according to the filing. Post issue, the government's stake will come down to 72 per cent from 100 per cent now, the company said.

The company did not specify the size of the issue, but banking sources said the company could raise up to 4 billion rupees through the offer.

RITES, which functions under the railways ministry, operates as a consultancy focussed on the transport, infrastructure and related technologies.

The company has experience on projects in 62 countries around the world. The public offer is the latest in a series of divestments in state-run companies by the federal government.

Last month, state-run Rural Electrification Corp raised 16.4 billion rupees through a 156-million-share public issue that was subscribed 27 times.

Kotak Mahindra Capital, Enam Securities and ICICI Securities are the book-running lead managers to the RITES issue.

National Hydroelectric Power Corp Ltd (NHPC) IPO this year

2008-04-03T19:25:00.001+05:30

India's state-run National Hydroelectric Power Corp Ltd (NHPC) plans to launch an initial public offering in the second quarter of the financial year ending March 2009, a top company official said on Thursday.

"We will be going to the market shortly. We are planning an IPO during the second quarter of this fiscal," S K Garg, chairman and managing director, said at a industry conference.

He said the company plans to add 4,000 megawatts of capacity by 2012.

Chiripal Industries Ltd IPO DRHP with SEBI

2008-03-27T23:20:00.004+05:30

Chiripal Industries Ltd has filed a draft red herring prospectus with Securities and Exchange Board of India for an initial public offering of 14,216,700 equity shares of Rs 10 each, at a price to be decided through 100 per cent book-building process.

The issue comprises of a net issue to public of 12,100,000 shares of Rs 10 each, promoters' contribution of 1,916,700 shares of Rs 10 each and a reservation of up to 200,000 shares of Rs 10 each for employees. The net issue will constitute 34.57 per cent of the post issue paid up capital.

The shares will be listed on Bombay Stock Exchange and National Stock Exchange.

The company is also considering a pre-IPO placement. If the placement is completed, the net issue to the public would be reduced to the extent of the share placement.

The company has appointed IDBI Capital Market Services as a book running lead manager.

Chiripal Industries, the flagship of Ahmedabad based Chiripal Group, has presence in the textile chain right from manufacturing yarn to readymade garments. Chiripal Industries operates in man-made fiber segment, specially in the polyester based products. The consolidated turnover of the company was Rs. 490.45 crore for the Fiscal 2007.

The manufacturing units of Chiripal Industries are located at Piplej in Ahmedabad.

To consolidate its operations, the company plans a capacity expansion program at a total cost of Rs 231.33 crore. The expansion includes that of its POY, FDY, texturised yarn facilities, warp knitting facilities, embroidery facilities, processing facilities and readymade garments facilities. The company would also be setting up a new yarn dyeing facility, fabric dyeing and weaving facilities. A new 7.50 MW lignite based power plant would also be installed to cut down on its power cost.

Out of the total issue proceeds, Rs. 53.33 crore would be used to finance the expansion. The company would also avail term loans to the tune of Rs. 167 crore.

Chiripal Industries would be investing Rs 6 crore out of the issue proceeds in its subsidiary, Chiripal Lifestyle, to finance the first phase of 20 outlets.

Chiripal Industries would also be acquiring 43 per cent stake in Vraj Integrated Textile Park, an SPV incorporated by a group of entrepreneurs led by Chiripal Group for setting up an integrated textile park near Ahmedabad.

Titagarh Wagons subscribed 1.71 times

2008-03-27T23:17:00.001+05:30

The initial public offering of Titagarh Wagons was subscribed 1.71 times as at 12:00 pm, on the last day of the issue, according to data available on the NSE.

So far 40,67,030 bids have been submitted against 23,83,768 shares on offer. Around 55,550 bids were received at the cut off price.

Qualified institutional buyers have bid 1.5915 times the 14,21,261 shares allocated for allotment, non-institutional investors have so far subscribed their allocation of 2,36,877 around 0.17 times. Retail investors have bid 0.072 times the 7,10,630 shares on offer.

The issue opened on Monday in the price band of Rs 540-610 per share.

The issue consists of a net issue of 23,68,768 shares and reservation of up to 15,000 shares for employees.

US GDP Reports Confirms Slowdown

2008-03-27T23:13:00.001+05:30

The Commerce Department's gross domestic product data showed the economy grew at a 0.6 per cent annual pace in the final quarter last year _ unchanged from an estimate a month ago. And while consumers increased their buying at a 2.3 percent pace, which was ahead of the 1.9 per cent growth rate that had been estimated, investors seemed unwilling to make big bets that the economy will soon recover.

Stocks traded mixed on Thursday after a reading on the US economy confirmed a slowdown in the final quarter last year and a weak quarterly showing from Oracle Corp. weighed on technology stocks.

Oracle, the maker of business software, posted fiscal third-quarter sales that fell short of Wall Street's expectations and issued a cautious forecast.

The reports arrived as Wall Street is still trying to determine how well the economy is holding up under strains including tightness in the credit markets, a weak housing sector and nervous consumers who have cut back spending. Investors will likely be examining comments from Federal Reserve officials for insights into how the economy, and specifically the financial sector, are faring. Several Fed officials are slated to speak Thursday.

George Shipp, chief investment officer at Scott & Stringfellow, said investors are generally uneasy about whether they have an accurate read on the scale of the troubles in the financial sector. There are fears that a parade of write-downs on bad investments will continue.

``It's hard to imagine there is going to be any good news. The question is whether it's been discounted,'' he said, referring to another round of potentially weak results from big banks in the coming months. ``The market is groping for a bottom. It's a difficult time.''

In midday trading, the Dow Jones industrial average rose 2.69, or 0.02 percent, to 12,425.55.

Broader stock indicators were mixed. The Standard & Poor's 500 index rose 1.17, or 0.09 per cent, to 1,342.30, and the technology-heavy Nasdaq composite index fell 16.43, or 0.71 per cent, to 2,307.93, hurt by Oracle's decline.

Advancing issues outnumbered decliners by about 4 to 3 on the New York Stock Exchange, where volume came to 566.6 million shares.

Oracle fell $1.50, or 7.2 percent, to $19.44. Bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.53 per cent from 3.46 per cent late Wednesday. The dollar was mixed against other major currencies, while gold prices fell.

Upbeat economic news gave investors some room for optimism but wasn't enough to stave off a decline in stocks. The Labor Department said the number of workers seeking unemployment benefits fell last week. Applications declined by a seasonally adjusted 9,000 to 366,000. Though the weekly figures can be volatile, the reading was better than the 371,000 many economists predicted.

In corporate news, American Express Co. agreed to acquire the corporate payment services division of GE Money, a division of General Electric Co., for $1.1 billion (euro0.7 billion) cash. American Express rose 4 cents to $45.40, while GE fell 13 cents to $37.

ConAgra Foods Inc. advanced $1.29, or 6 per cent, to $23.18 after striking a deal to sell its commodity trading and merchandising operations to an investment group for about $2.1 billion (euro1.33 billion).

Williams-Sonoma Inc. said profits rose 3 percent in its fiscal fourth quarter, which was a week longer than a year earlier. The home furnishings retailer warned, however, that it expects fiscal 2008 earnings will come in below Wall Street's estimates. The stock fell 99 cents, or 4 per cent, to $24.

TATA-JLR Deal : Analyst View

2008-03-27T23:10:00.001+05:30

Analysts struck a gloomier note, saying Tata Motors -- part of giant Tata Group which last year staged India's biggest foreign takeover when it bought Britain's top steelmaker Corus for $13.7 billion -- faced a tough task in financing the buy and resurrecting the struggling brands.
They questioned if Tata would do better in plugging what was a financial sinkhole for ailing US Ford Motor Co which got less than half of what it paid for the two marques after investing billions of dollars to turn them around.

India on Thursday revelled in Tata Motors' purchase of British luxury motoring icons Jaguar and Land Rover even as analysts warned the $2.3-billion buy could hit the firm's bottom line.

"Indian Tiger rides Jaguar," shouted the Economic Times in a banner headline as the country feted its new overseas corporate muscle in which firms are racing to gain a global footprint.

"Jaguar is now an Indian beast," said the Times of India, adding, "The Empire drives back... It took a company from a former colony to come to the rescue of a beleaguered British brand."

Investors also gave a negative reaction to the purchase, driving down shares of Tata Motors by 3.56 per cent or Rs 24.2 to Rs 655, underperforming the broader market which fell by just 0.44 per cent.

Still, this did not detract from the celebratory tone struck by India's government or the corporate world.

"My congratulations to the Tatas... they have held India's private sector flag high. The world is looking at India," said Commerce Minister Kamal Nath.

Leading Indian industry group FICCI forecast more foreign buys by Indian firms, saying they "have developed a sharp business sense for locating global opportunities" and that the "meltdown in the US market and its repercussions in Europe" could create even more buying chances.

But analysts said Tata Motors had a lot on its plate. The first challenge would be financing the acquisition, analysts said, with Tata Motors, whose long-term credit is already rated one notch below investment grade, seeking to raise funds in a tough global climate with the US-led subprime crisis making investors shun all but the safest debt.

NTPC Allowed to Bid for Project above Rs1000 Cr

2008-03-27T23:06:00.001+05:30

The government on Thursday exempted NTPC Ltd from the Rs 1,000-crore investment cap in a joint venture or subsidiary set up to bid for power projects, a move that would help the top electricity producer to place competitive bids for the upcoming seven plants it is eyeing.

"We are extremely happy. This will help us in being competitive to a great extent," Company Chairman and Managing Director T Sankaralingam said.

The Cabinet Committee on Economic Affairs gave its nod to waive the ceiling for equity investment by NTPC to establish financial joint ventures and wholly-owned subsidiaries in India or abroad for participating in bidding called by state utilities and distribution licensees, an official spokesperson said.

The approval would facilitate participation of NTPC in bidding for the development of power projects initiated by government utilities and result in greater competition and establishment of more public sector power projects, the spokesperson said after the CCEA meeting.

Being a 'Navratna' company, NTPC's participation in any joint venture for bidding was restricted to Rs 1,000 crore. The company had been seeking a special exemption from the government, particularly to bid for setting up seven coal- based power plants in Maharashtra, Madhya Pradesh, Uttar Pradesh and Karnataka.

The company seeks to become a 50,000-MW company by 2012. It has a total installed capacity of 29,144 MW at present.

Earlier, the company had to wait for a Cabinet clearance for an over Rs 1,000-crore equity participation in a joint venture for participating in bids for a power project.

The seven projects, totalling a capacity of more than 10,000 MW, require an investment of up to Rs 1,800 crore each.

Sita Shree Food IPO opens on March 11, price band Rs 27-30

2008-03-03T22:27:00.000+05:30

Sita Shree Food Products is coming out with an initial public offering equity shares of Rs 10 each at a price band of Rs 27-30 per share for cast aggregating Rs 31.5 crore.

The issue will open for subscription on March 11 and close on March 14, 2008. Equity shares are proposed to be listing on the BSE and NSE.

V-Guard Industries fixes issue price at Rs 82/sh

2008-03-03T22:24:00.001+05:30

V-Guard Industries, a Kerala based company engaged in the manufacturing and marketing of electrical and electronic products, has fixed the issue price at Rs 82 per equity share. The company had come out with a public issue of 80,00,000 equity shares of Rs 10 each for cash at a price of Rs 82 per equity share for cash aggregating to Rs 65.60 crore out of which 4,00,000 equity shares have been reserved for eligible employees.

The net issue to the public will be 76,00,000 equity shares of Rs 10 each for cash at a price of Rs 82 per equity share for cash aggregating to Rs 62.32 crore. The issue will constitute 26.80% of the fully diluted post issue paid-up capital of the company and the net issue to public will constitute 25.46% of the fully diluted post issue paid-up capital of the company.

Biocon Research IPO by March 2009

2008-03-03T22:16:00.002+05:30

India's top biotechnology firm, Biocon, is looking at overseas acquisitions for about USD 10 million to boost its sales globally and gain access to innovative drugs, its chairman said on Wednesday.

Biocon, which makes insulin, cholesterol-lowering statins and other branded drugs, had earlier this month agreed to buy 70 percent of German marketing firm AxiCorp GmbH for 30 million euros (USD 45 million) to boost distribution and marketing of pharmaceuticals in Europe.

"I am looking at smaller companies where even if I have to invest and get a majority or controlling stake it won't cost me more than USD 10 million or thereabouts," Kiran Mazumdar-Shaw said in an interview.

The targets are marketing firms in Europe and research-focused biotechnology companies in the United States, Australia and New Zealand, she said.

Last month, Biocon said its quarterly profit rose more than five times after one-off gains from sale of its enzymes unit to Denmark's Novozymes, and forecast more growth despite recession concerns in its key U.S. market.

Bangalore-based Biocon has been looking to acquire firms to boost its marketing and drug discovery muscles, after it sold off its enzymes business in July last year for USD 115 million.

"For Europe, it's a totally marketing strategy that we are looking at," said Mazumdar-Shaw, who set up Biocon in her garage in Bangalore in 1978. "At the same time we are also looking at acquisition opportunities in say innovation."

She said a plan to launch an initial public offer of its contract research unit, Syngene, was on track by the end of the fiscal year that begins in April. The company has not yet finalised details of the offer.

A 12 percent drop in the stock market this year, caused by a global equities rout, knocked out a few IPOs in the Indian market in recent weeks, including a USD 1.6 billion issue from Emaar MGF Land, the Indian unit of Dubai's Emaar Properties.

Oral Insulin

Clinical trials for Biocon's innovative oral insulin is making good progress and the company should be able to sign a licensing deal to launch the product in global markets early next year, Mazumdar-Shaw said.

Brokerage ICICI Securities said in a Feb. 19 research report that Biocon might generate "windfall revenue" through the licensing of oral insulin. It has assumed the deal size to be between USD 100 million and USD 300 million.

"We believe we are actually in a very good position because you can see that number of recent diabetic drugs have had safety concerns associated with them," the Biocon chief said.

"That's why we believe an oral insulin could have a very, very interesting opportunity in managing diabetes very effectively with no safety concerns."

Biocon sees prices of statins, which contributes a quarter of its revenue, stabilising on waning competition. The United States and Europe are its main markets for the statins used to lower cholesterol levels.

Investment on research and development activities in the year to March 2009 will be 15-20 percent higher than this year's spending of over 1 billion rupees, said Mazumdar-Shaw, who earned a master's brewing degree in Australia before pioneering Biocon.

Shares in Biocon, which has a market value of more than USD 1 billion, ended 0.3 percent higher at 441.05 rupees on Wednesday in a Mumbai market that edged up 0.1 percent. The stock is down about 24 percent so far this year, reports Reuters.

Reliance Infratel IPO ,files DRHP with SEBI

2008-02-07T11:13:00.000+05:30

Reliance Infratel, the tower subsidiary of Reliance Communications, is mulling to mop up Rs 6,000 crore via an Initial Public Offering (IPO). The company has filed the Draft Red Herring Prospectus with the Securities and Exchange Board of India (SEBI). The Anil Ambani group company has proposed to offload 10.05 per cent stake to the public, which puts the valuation of the company at around Rs 60,000 crore. The IPO follows that of another group company, Reliance Power, which is to be listed on February 11. According to the DRHP, Reliance Infratel has proposed to offload 8,91,64,100 equity shares of Rs 5 each at a price that will be decided through the book building process. Around 60 per cent of the issue will be allocated to Qualified Institutional Buyers (QIBs), with 5 per cent for mutual funds, and 30 per cent to be allocated on a proportionate basis to retail individual bidders.

Bharat Oman to file for IPO soon

2008-02-07T11:07:00.000+05:30

India’s Bharat Oman Refineries Ltd, an equal joint venture between state-run Bharat Petroleum Corp and Oman Oil Co, will soon file for an initial public offer to raise up to Rs25 billion rupees , three banking sources involved in the deal said.
The company plans to sell about 48% through the public offer and a pre-IPO placement, the sources told Reuters on Tuesday.

“We hope to file the draft prospectus by the end of this week or early next week,” one said.
SBI Capital Markets, Citibank and ICICI Securities are among the arrangers of the issue, sources said.
Bharat Petroleum declined comment on the deal.
Bharat Oman Refineries is building a 120,000 barrels per day (bpd) refinery at Bina in the central Indian state of Madhya Pradesh at a cost of about Rs104 billion and has tied up a debt portion of about Rs64 billion.
Last week Bharat Petroleum said its board had approved a proposal to subscribe to Bharat Oman’s IPO, with an overall stake to be limited to 48%.
The company said its investment in Bharat Oman would not exceed Rs19.96 billion.
The sources said after the IPO Oman Oil’s holding in the company would come down to less than 10%.
BPCL runs a 240,000 bpd refinery in Mumbai, India’s financial hub, and another 150,000 bpd refinery in Kochi in the southern state of Kerala. Its subsidiary Numaligarh Refinery Ltd runs a 60,000 bpd refinery in north-east India.

Wockhardt Hospitals Ltd ipo extended by two days

2008-02-07T11:01:00.000+05:30

The initial public offer for Wockhardt Hospitals Ltd has been extended by two days till 7 February, a banking source said on Tuesday.
The 25.1-million share issue has received no bids from institutional buyers, corporates or non-retail individual investors as on Monday, according to data on the NSE website. The retail portion was subscribed 0.06 times.
The healthcare services company, which had earlier set a price band of Rs280-310 for the issue, lowered it to Rs225-260 a share, a day before the issue opened on 31 January, citing market conditions.
Company officials were not immediately available for comment.
Citigroup and Kotak Investment Banking are the lead managers to the issue.