2018 - Indian IPO Blog

Indian IPO Blog

Insights into investing world in India

Wednesday, December 19, 2018

Kotak IB believes IPO markets may remain muted till elections

December 19, 2018 0
Kotak IB believes IPO markets may remain muted till elections
"There will be very few IPOs in the first half of 2019, may be only two," head for equity capital markets at Kotak Investment Banking, V Jayasankar said here on Wednesday

The comments come a day after capital markets regulator Sebi expressed concerns over the sluggish IPO activity, despite it already clearing over Rs 60,000 crore worth of issues

Tuesday, December 18, 2018

Upcoming Buyback Offers - 2018

December 18, 2018 0
Upcoming Buyback Offers - 2018

Studds Accessories IPO gets SEBI approval

December 18, 2018 0
Studds Accessories IPO gets SEBI approval
Studds Accessories Ltd, manufacturer of helmets and two-wheeler accessories, has received markets regulator Sebi’s approval to float an initial share sale.

The company, which had filed its draft papers with the markets regulator in August seeking its clearance for the initial public offer (IPO), obtained Sebi’s observations on December 14, latest data with the capital markets watchdog showed.

Sebi’s observations are necessary for any company to launch public issues like initial public offer, follow-on public offer and rights issue.

Studds Accessories’ IPO comprises fresh issuance of shares worth ₹98 crore besides an offer-for-sale of 39.39 lakh equity shares by promoters Madhu Bhushan Khurana and Sidhartha Bhushan Khurana, and other existing shareholders, according to the draft papers.

With IPO market dried up, SEBI asks bankers to price it right

December 18, 2018 0
With IPO market dried up, SEBI asks bankers to price it right
The capital markets regulator Sebi on Tuesday voiced concern over the slow pace of primary issues, despite a good market condition, and asked investment bankers to do more "diligence" on the pricing front to get investors in. Chairman Ajay Tyagi said Sebi has given the go-ahead to initial public offers (IPOs) worth over Rs 60,000 crore in 2018, but many of them are yet to hit the street. Till October end, 24 companies raised Rs 30,959 crore through IPOs but most this been in the March quarter.

Last year was the best in terms of IPO fund raising, as the IPO market jumped to an all-time record of Rs 67,147.4 crore in fresh fund raising by over 120 companies, according to data from Prime Database.

When asked if the issue is pricing, he asked i-bankers to do more "diligence" while setting a price that will be acceptable to both the issuers as well as investors.

"Merchant bankers have a role to see that an issue is reasonably priced and which is acceptable to both issuers and investors," Tyagi said.

The Sebi chief seemed to suggest that domestic market conditions are better as compared to global peers, with firm macroeconomic fundamentals and said the rupee fall has also been arrested.

Tuesday, September 18, 2018

SEBI pushes to lower IPO Listing timeline to T+3 days

September 18, 2018 0
SEBI pushes to lower IPO Listing timeline to T+3 days
IndianIPOBlog has learnt that SEBI haa lowered IPO listing timeline to T+3 from current T+6

SEBI chairman Ajay Tyagi announced the decision in a press conference after a board meeting in Mumbai.

Currently, a company has to wait for six days after the closure of IPO to get listed on exchanges. The new regulation is expected to further bring down investors exposure to market volatility.

"We have been able to bring down the issue timing from T+12 to T+6 and I would like to mention that all of us have to start working now to further reduce the issue timing," Sebi chairman UK Sinha had said while addressing the annual capital market conference by Federation of Indian Chambers of Commerce and Industry in October 2016.

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IRCON IPO subscription at the end of Day 2

September 18, 2018 0
IRCON IPO subscription at the end of Day 2

IRCON International IPO subscription status update

September 18, 2018 0
IRCON International IPO subscription status update

Monday, September 17, 2018

Aavas Financiers IPO Detailed Info

September 17, 2018 0
Aavas Financiers IPO Detailed Info

*Aavas Financiers Limited IPO*

◆ Open Date: *Sep 25, 2018*

◆ Close Date: *Sep 27, 2018*

◆ Allotment Date: *Oct 03, 2018*

◆ Listing Date: *Oct 08, 2018*

◆ Face Value: Rs 10 Per Equity Share 

◆ Issue Price: *Rs 818/- to Rs 821/-* Per Equity Share

◆ Issue Size: 21,121,437 Equity Shares of Rs 10/- Aggregating up to Rs 1734.07 Cr

◆ Market Lot (Min Amount): *18 Shares (Rs 14,778/-)*
 
◆ Listing At: NSE, BSE

◆ Registrar: Link Intime India Private Limited

◆ Lead Manager: Citigroup Global Markets India Private Ltd, Edelweiss Capital Ltd, HDFC Bank Ltd, ICICI Securities Ltd, Spark Capital Advisor Private Ltd.

◆ EPS: *Rs 15.20/-*

◆ P/E Ratio: *54.01*

◆ RoNW: *8.46%*

◆ Net Asset Value (NAV): *Rs 157.03*

◆ Promoters: *Lake District Holdings Ltd & Partners Gorup ESCL Ltd*

Aavas Financiers IPO Details

September 17, 2018 0
Aavas Financiers IPO Details

Opens on: *25-Sept-2018*
Closes on: *27-Sept-2018*
Price Band: *₹ 818 to ₹ 821*
Bid Lot: *18 Equity Shares* & in Multiple thereafter
Issue Size : *₹ 1734 Crs at upper Band*
Face Value : ₹ 10/- per share
Team Edelweisspartners

Sunday, September 16, 2018

Aavas Financiers IPO opens from Sep 25

September 16, 2018 0
Aavas Financiers IPO opens from Sep 25

Friday, September 7, 2018

IRCON International IPO Dates and schedule

September 07, 2018 0
IRCON International IPO Dates and schedule
IRCON International Limited IPO Tentative details
◆ Open Date: *Sep 17, 2018*
◆ Close Date: *Sep 19, 2018*
◆ Expected Allotment Date: *Sep 26, 2018*
◆ Expected Listing Date: *Sep 28, 2018*
◆ Face Value: Rs 10 Per Equity Share 
◆ Issue Price: *Rs 470/- to Rs 475/-* Per Equity Share *(Rs 10/- discount for RII and Employees)*
◆ Issue Size: Offer for Sale of 99,05,157 Equity Shares of Rs 10/- each at price of Rs 470/- to Rs 475/- aggregating up to Rs 470.49 Cr
◆ Market Lot (Min Amount): *30 Shares (Rs 14,250/-)*
 ◆ Listing At (Group): NSE, BSE (B - Group)
◆ Registrar: Karvy Computershare Private Limited
◆ Lead Manager: IDBI Capital Markets & Securities Limited, Axis Capital Limited, SBI Capital Markets Limited
◆ EPS: *Rs 42.13/-*
◆ P/E Ratio: *11.27*
◆ RoNW: *10.98%*
◆ Net Asset Value (NAV) - As on 31.12.17: *Rs 398.51*
◆ Promoters: *The President of India acting through Ministry of Railways*

Thursday, September 6, 2018

Top 10 Tax Saving Funds (ELSS Funds) by AUM

September 06, 2018 0
Top 10 Tax Saving Funds (ELSS Funds) by AUM
ELSS funds are an effective way of not only saving taxes but also ensuring participation in growth story of Indian markets. Given below are list of Top 10 ELSS 
Funds in India by AUM (Jun18)


The funds are listed in order of AUM and the order should not be seen as a recommendation or preference to any fund

We believe investment requires homework and some degree of research to find out which fund suits the investment needs. Find out which fund is best for your needs by using IndianIPOBlog MF Quick Invest.

Tell us a few things about you and we would get back to you with the fund best for your needs:



Wednesday, September 5, 2018

Angel Broking files DRHP for IPO

September 05, 2018 0
Angel Broking files DRHP for IPO



Angel Broking Limited, one of the largest independent full-service retail broking house in India in terms of active clients on NSE as of July 31, 2018 (Source: CRISIL Report) filed its DRHP with SEBI.



The Initial Public Offer (IPO) comprises of equity shares of face value of Rs. 10 each (“EquityShares”) of Angel Broking Limited (“Company”) aggregating up to Rs. 6,000.00 million. The IPO includes fresh issue aggregating up to Rs. 3,000.00 million (the “Fresh Issue”)and an offer for sale aggregating up to Rs. 208.35 million by Ashok D. Thakkar and equity shares aggregating up to Rs. 31.25 million by Sunita A. Magnani (together, the“Promoter Selling Shareholders”),equity shares aggregating up to Rs. 1,200.02 million by IFC (the“Investor Selling Shareholder”) and equity shares aggregating up to Rs. 1,560.38 million by the individual selling shareholders (together with the promoter selling shareholders and the investor selling shareholder, the “Selling Shareholders”) aggregating up to Rs. 3,000.00 million (the “Offer For Sale”)



The proceeds from the net issue will be utilized towards: (i). to meet working capital requirements (Rs. 2,300 million); and (ii) for general corporate purposes.



ICICI Securities Limited, Edelweiss Financial Services Limited and SBI Capital Markets Limited are the book running lead managers to the issue.



The equity shares will be listed on BSE and NSE.



About Angel Broking Limited

Angel Broking Limited (Angel) is one of the largest independent full-service retail broking house in India in terms of active clients on NSE as of July 31, 2018 (Source: CRISIL Report). Angel is a technology led financial services company, that provides broking and advisory services, margin funding, loans against shares (through one of our Subsidiaries, AFPL) and financialproducts distribution to clients under the brand “Angel Broking”. Angel’s broking services are offered through (i) online and digital platforms, and (ii) network of more than 11,000 sub-brokers, as of June 30, 2018. They have more than 850,000 downloads ofAngel Broking mobile app and more than 450,000 downloads of Angel BEE app as of June 30, 2018, which enables their clients to avail services digitally. Through network of sub-brokers and over 110 branches, Angel have a pan-India presence across 1,800 cities and towns, as of June 30, 2018. As at June 30, 2018, Company managed Rs. 113,023.06 million in client assets and over 1.11 million active broking accounts.

Invest in Mutual Funds with IndianIPOBlog Mutual Funds

September 05, 2018 0
Invest in Mutual Funds with IndianIPOBlog Mutual Funds

IndianIPOBlog MF: Too many schemes in Mutual Funds do not necessarily mean diversification

September 05, 2018 0
IndianIPOBlog MF: Too many schemes in Mutual Funds do not necessarily mean diversification
Diversification: The word that most investing schools and experts would tell you for mitigating market risks. However, it has to be understood that diversification in mutual funds is different from that in stocks

In general, diversifying your portfolio is always a good idea. This does not however mean, that there is need to add many funds into the portfolio. One large-cap fund is sufficient in any portfolio, and even an index-tracking fund would be an added buffer. However, abruptly selected funds will keep your portfolio as a high-risk portfolio with sporadically selected funds. 

Thematic funds for instance, need care and understanding of time of entry and exit along with active tracking. Most investors do not have either of these and still choose to opt for thematic funds consequently resulting in meagre returns

Many investors have this notion in mind that if they own all types of mutual funds in their portfolio, then diversification is achieved and risk will be mitigated. What happens in these types of portfolios is that effectively your capital is so dispersed that any significantly market beating returns in one or two good funds are offset by muted returns in other funds in your basket, and the end result is that you do not get effective return on the overall portfolio

Although the composition of your portfolio would depend on a lot of factors like risk appetite, aggression as well as your age, diversification needs to be smart and dynamic when it comes to mutual funds and not necessarily mean owning many funds

Tell us your investment needs and we'd select best funds for you with one click payment links. Fill up IndianIPOBlog MF QuickInvest for more







Wednesday, August 8, 2018

Creditaccess Grameen IPO opens - Should you apply? Brokerage Analysts Recommendations

August 08, 2018 0
Creditaccess Grameen IPO opens - Should you apply? Brokerage Analysts Recommendations
Brokerage recommendations for Creditaccess Grameen IPO

Antique Broking
Recommends ‘Avoid’.
Geographic concentration, lack of technology and people, and its inability to offer beyond joint lending group loans raises questions on long-term competitive positioning.
Valuations do not leave investors with much margin of safety.

Emkay Global
Recommends ‘Avoid’.
Valuations doesn’t justify adherent business risks and low returns on equity.

SMC Global
Recommends ‘Subscribe’.
While 11.8 percent return on equity for 2017-18 is still sub-optimal compared to some of the large MFIs, the valuation adequately captures this and any improvement in the return on equity will aid further valuations.

Prabhudas Lilladher
Recommends ‘Subscribe’ for long term.
Expensive valuations and high business concentration risks are key deterrents
Improvement of return on equity is crucial
Listing gains may be limited.


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Monday, August 6, 2018

HDFC AMC IPO lists with a big bang premium

August 06, 2018 0
HDFC AMC IPO lists with a big bang premium
The much awaited IPO of HDFC AMC listed with bandwagon on Monday morning with the shares opening at more than 55 percent premium over the issue price

The shares under the IPO were offered at Rs.1100 a piece and the issue was oversubscribed more than 80 times

HDFC AMC is the second asset management company to hit the market after Reliance Nippon Life AMC, which had raised Rs 1,542 crore last year.

Stay tuned to Indian IPO Blog or Join our Whatsapp groups for more news, views and updates on HDFC AMC IPO

Friday, August 3, 2018

Congratulations! We've crossed 5000 members on Indian IPO Blog Whatsapp Groups!

August 03, 2018 0
Congratulations! We've crossed 5000 members on Indian IPO Blog Whatsapp Groups!
Dear Members,

We're more than 5000 on Indian IPO Blog Whatsapp Groups now! 

On behalf of the team at Indian IPO Blog, would like to extend a warm vote of thanks to each and every one of you for achieving this amazing milestone. At the same time, would also like to extend gratitude to my co-admins and the team at Indian IPO Blog for their continued support and faith

At Indian IPO Blog, we believe each of our members are equal partners in building the community and therefore expect highest professional standards from our members. Although members are encouraged to introduce and refer genuinely interested newer members to the group, it is also expected that the seat be valued and adherence to group guidelines is ensured

We are confident that your support and blessings would enable the community to build and enhance catapult the fraternity with an embedded competence in order to enable scaling of newer heights for the group!

Thank you again!
Indian IPO Blog Team
Join Whatsapp Groups now

- From the desk of Yash Ved, Founder & CEO, IndianIPOBlog.in



Creditaccess Grameen IPO Details

August 03, 2018 0
Creditaccess Grameen IPO Details

Thursday, August 2, 2018

How to check HDFC AMC IPO Allotment status

August 02, 2018 0
How to check HDFC AMC IPO Allotment status

HDFC AMC IPO Allotment Status declared

August 02, 2018 0
HDFC AMC IPO Allotment Status declared

HDFC AMC IPO Allotment status update

August 02, 2018 0
HDFC AMC IPO Allotment status update

*Indian IPO Blog: HDFC AMC IPO Allotment Status update*

There is lot of buzz about the HDFC AMC IPO Allotment status. Members may note that the allotment status is being uploaded on registrar's site

The same is expected to be declared very shortly now

Many banks have already started debiting and releasing the amount. Hence members may make out their allotment status by checking if they have received debit message or amount has been released in your bank account from lien,

Stay tuned to http://www.indianipoblog.in for the latest updates or join our Whatsapp groups - Free for earlybird members: https://chat.whatsapp.com/7LTwMwZZZZL8TcXMFJoDFm

HDFC AMC IPO Allotment Status - Shareholder allotment

August 02, 2018 0
HDFC AMC IPO Allotment Status - Shareholder allotment

HDFC AMC IPO Allotment status

August 02, 2018 0
HDFC AMC IPO Allotment status
HDFC AMC IPO Allotment status link will be updated here as soon as the same is declared. Stay tuned to Indian IPO Blog for latest updates
We have found an update that some banks such as Axis Bank have started debiting the amount. The allotment status is expected to be declared in a short while
You may join our Whatsapp groups for latest updates on IPO: https://chat.whatsapp.com/7LTwMwZZZZL8TcXMFJoDFm

HDFC AMC IPO Basis of Allotment

August 02, 2018 0
HDFC AMC IPO Basis of Allotment
HDFC AMC IPO - Basis of allotment has been out.
*HDFC AMC IPO Update*:
Basis of Allotment
Retail Investors will get 13 Shares for minimum bid lot in 994 : 3879 ratio
From 26 – 169 bid lot will get 13 Shares in 41 : 160 ratio
HNI Final Subscription: 194.38504
Unblocking of Funds: 02-Aug-2018
Credit of Shares : 03-Aug-2018
Listing of Shares: 06-Aug -2018

Wednesday, August 1, 2018

HDFC AMC IPO Allotment Status

August 01, 2018 0
HDFC AMC IPO Allotment Status
HDFC AMC IPO Allotment Status link will be updated here as soon as the same is announced. The IPO had closed on Jul 27, 2018 and was oversubscribed more than 80 times

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RBI hikes repo rates by 25bps

August 01, 2018 0
RBI hikes repo rates by 25bps
India’s Monetary Policy Committee decided to raise the benchmark interest rate by 25 basis points at its meeting concluded on Wednesday, while retaining a 'Neutral' monetary policy stance.

The committee voted 5-1 to hike the repo rate from 6.25 percent to 6.5 percent. Committee member Ravindra Dholakia voted against the resolution.

MPC said it is "consistent with the neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth,"

HDFC AMC IPO Allotment status expected soon - however not declared yet

August 01, 2018 0
HDFC AMC IPO Allotment status expected soon - however not declared yet

Sunday, July 29, 2018

IPO pipeline strong in Indian markets - List of Upcoming IPOs

July 29, 2018 0
IPO pipeline strong in Indian markets - List of Upcoming IPOs
The list of upcoming IPOs is getting longer with more and more companies eager to tap the Indian markets for capital. Given below is the list of mainstream IPOs that are expected to hit the streets in coming year:

Join IndianIPOBlog Whatsapp groups to stay updated on the latest happenings in Indian IPO markets

Mainboard IPO in pipeline -
  • Capricorn Food Products India Ltd
  • Prince Pipes and Fittings Ltd
  • Nazara Technologies
  • Patel Infrastructure Limited
  • John Energy Limited
  • CMS Info Systems Limited      
  • Gandhar Oil Refinery Ltd
  • Laqshya Media Ltd
  • Genesis Colors Ltd
  • Seaways Shipping and Logistics Ltd
  • Barbeque Nation Hospitality Ltd
  • IRCTC Ltd
  • IRCON Ltd
  • Rail Vikas Nigam Limited
  • Go Air.
  • ACME Solar Ltd
  • Reliance General insurance Company Ltd
  • Continental Warehousing Ltd
  • Aakash Education Services
  • Seven Islands Shipping Limited
  • SREI Equipment Finance Limited
  • Bharat Serum and Vaccines Limited
  • PolicyBazaar.com
  • GMR Airports Ltd      
  • National Stock Exchange (NSE)
  • KIMS Hospitals
  • Kalyan Jewellers
  • Lite Bite Foods
  • Indiamart.com
  • Energy Efficiency Services Ltd
  • National Insurance Company
  • Vishwaraj Sugar Industries Ltd
  • Indian Renewable Energy Development Agency Ltd
  • Indian Railways Finance Corporation Ltd
  • Rail Vikas Nigam Ltd (RVNL)
  • UTI Mutual Fund Ltd
  • Devi Seafoods Ltd
  • Anmol Industries Ltd (Anmol Biscuits)
  • ReNew Power Ltd
  • Voila F9 Gourmet Ltd
  • Route Mobile Limited
  • Credit Access Grameen Ltd
  • Sembcorp Energy India Ltd
  • Flemingo Travel Retail Ltd
  • Sandhya Marines Ltd      NA
  • Nekkanti Sea Foods Limited
  • K P R Agrochem Limited
  • Garden Reach Shipbuilders & Engineers Ltd
  • Atria Convergence Technologies Ltd
  • GR Infraprojects Ltd
  • Mazagon Dock Shipbuilders Ltd
  • Genius Consultants Limited
  • Dinesh Engineers Limited
  • Crystal Crop Protection Ltd
  • Hinduja Leyland Finance Ltd
  • PNB MetLife Insurance Ltd
  • AnandRathi Wealth Management Ltd
  • Aavas Financiers Ltd
  • Shakun Polymers Ltd
  • PN Gadgil & Sons Ltd
  • Fino Payments Bank Ltd
  • Montecarlo Ltd (Construction Company)
  • Century Metal Recycling Ltd
  • Chalet Hotels Ltd
  • Dodla Dairy Ltd
  • Craftsman Automation Ltd
  • Penver Products Limited
  • Spandana Sphoorty Financial Ltd
  • Puranik Builders Ltd

Saturday, July 28, 2018

PNB Metlife to come up with an IPO

July 28, 2018 0
PNB Metlife to come up with an IPO
PNB MetLife India Insurance Company has filed the draft papers with capital markets regulator Sebi to float an initial public offering (IPO).

The offer is of up to 49,58,98,076 shares of face value of Rs 10 each by way of an offer for sale by the selling shareholders.

The price band for IPO is expected to be Rs 270-275 per share.The listing of shares will enhance the "PNB MetLife" brand name and provide liquidity to the existing shareholders, the draft paper said.

Friday, July 27, 2018

HDFC AMC IPO Final subscription figures

July 27, 2018 0
HDFC AMC IPO Final subscription figures

HDFC AMC IPO - Subscription status till 4 PM

July 27, 2018 0
HDFC AMC IPO - Subscription status till 4 PM

HDFC AMC Ltd IPO
Subscription @ 04:00pm

QIB:   192.26 X
NII:    195.14 X
RII:     6.19 X
Emp:  1.37 X
Sh:      2.48 X

Total:   82.81 X

*Total Nos App: 2365120*
*App Wise* : 3.96 X

HDFC AMC IPO Subscription status as on Day 3 - 3PM

July 27, 2018 0
HDFC AMC IPO Subscription status as on Day 3 - 3PM

HDFC AMC IPO subscription crosses 25 times till 1PM on closing day

July 27, 2018 0
HDFC AMC IPO subscription crosses 25 times till 1PM on closing day

Thursday, July 26, 2018

HDFC AMC IPO subscription status till Day 2

July 26, 2018 0
HDFC AMC IPO subscription status till Day 2

Wednesday, July 25, 2018

HDFC AMC IPO Latest Grey Market Premium

July 25, 2018 0
HDFC AMC IPO Latest Grey Market Premium
HDFC AMC IPO Latest Grey Market Premium is Rs.480 to Rs.495 per equity share

The shares are offered in a price band of Rs.1095 to Rs.1100 per equity share

According to CRISIL, as of December 31, 2017, HDFC AMC has been the most profitable AMC of the country in terms of net profits since Fiscal 2013 with a total AUM (Assets Under Management) of ₹2,932.54 billion. Its profits has grown every year since 2002.

It has been the largest AMC in equity-oriented AUM since the last quarter of Fiscal 2011 and has consistently been among the top two asset management companies in India in terms of total average AUM since the month of August 2008..

HDFC AMC offers a wide range of savings and investment products across asset classes

The IPO closes for subscription on Jul 27, 2018. Stay tuned to Indian IPO Blog for more on HDFC AMC IPO. Join Whatsapp group for Free for latest discussions

HDFC AMC IPO subscribed fully on Day 1

July 25, 2018 0
HDFC AMC IPO subscribed fully on Day 1

The IPO of HDFC AMC Limited, the Mutual Fund business of HDFC, has been fully subscribed on Day 1 of its opening

The IPO got subscribed in different categories as under:

QIB: 1.19x
HNI: 0.55x
Retail: 1.34x
Employee: 0.54x
Shareholders: 0.60x
Overall: 1.03 times

The IPO closes for subscription on Jul 27, 2018. Stay tuned to Indian IPO Blog for more on HDFC AMC IPO. Join Whatsapp group for Free for latest discussions

You can apply twice in HDFC AMC IPO if you hold HDFC shares

July 25, 2018 0
You can apply twice in HDFC AMC IPO if you hold HDFC shares
Equity shareholders of HDFC Limited, holding shares as on Mar 14, 2018 would be able to apply additionally in shareholder quota for the upcoming IPO of HDFC AMC Limited

Shares under HDFC AMC IPO are offered in a price band of Rs.1095 to Rs.1110 a piece

All HDFC shareholders, says the a note from one of brokerage houses, as on 14 March 2018, can make three applications under the HDFC shareholder portion, retail portion and HDFC employee reservation portion/HDFC AMC employee reservation portion (for eligible employees only). 

The maximum bid amount in the HDFC shareholders’ reservation portion by an eligible HDFC shareholder cannot exceed ₹ 2 lakh.

Thursday, July 19, 2018

HDFC AMC IPO - Record date for HDFC shareholders

July 19, 2018 0
HDFC AMC IPO - Record date for HDFC shareholders
HDFC AMC IPO which is going to open for subscription from Jul 25, has a shareholder quota. Shareholders who have shares of HDFC Limited would be eligible to apply in this category

HDFC AMC IPO Record date for HDFC Limited shareholders to apply is 14.03.2018  (i.e 14th March)

This means that those who hold in demat on or before 14 March can apply in HDFC share holder quota
Shareholder quota applicants may derive benefit in allotment if the retail category is oversubscribed several times which is very likely given the anticipation to the IPO

HDFC AMC IPO - Offer Size and Allocation

July 19, 2018 0
HDFC AMC IPO - Offer Size and Allocation
HDFC AMC IPO (SIZE & ALLOCATION)
QIB : 1,10,88,776
NII : 33,26,634
Retail : 77,62,145
Eligible HDFC AMC Employees : 3,20,000
Eligible HDFC Employees : 5,60,000
Eligible HDFC Shareholders : 24,00,000
Total: 2,54,57,555 Equity Shares

Friday, July 13, 2018

BSE adds Motabhai to help you know stock prices

July 13, 2018 0
BSE adds Motabhai to help you know stock prices
Visitors to the iconic Bombay Stock Exchange website will be greeted from now on by 'Motabhai', a fun chatbot sitting on the top right corner of the screen

The automated chatbot would answer basic questions and provide stock and market information. For instance, a simple keyword with stock name throws up options such as

- Current Price
- Corporate Announcements
- Corporate Actions
- Results



Replies are given in chat format. The bot is powered by ShepHertz and has a icon having cute little depiction of a stock trader in traditional dress. Want to have a look? Head on to http://www.bseindia.com

Thursday, July 12, 2018

Soon you may be able to apply IPOs using UPI!

July 12, 2018 0
Soon you may be able to apply IPOs using UPI!
Finding making IPO applications a task? Applying through normal ASBA methods may be history if all goes well as per SEBI's plan

The market regulator is planning to introduce an alternative payment mechanism in initial public offers for retail investorsas it aims to speed up the listing process.

The regulator intends to allow the use of Unified Payments Interface (UPI), a mobilebased real-time payment system that enables instant transfer of funds from one bank account to another, to reduce the paperwork for intermediaries during IPOs.

“Once UPI is implemented, there will be no need for physical movement of application forms from broker to bank and the need for verification of investors’ signature will be eliminated. Investor will confirm to the bank to block the funds through his mobile phone,” the regulatory official said

Monday, July 9, 2018

HCL Technologies to consider Buyback

July 09, 2018 0
HCL Technologies to consider Buyback
HCL Technologies is planning a buyback of equity shares. The company said in a filing at BSE

"We would like to inform you that a meeting of the Board of Directors of the Company
is scheduled to be held on Thursday, July 12, 2018, to consider a proposal for buy-
back of equity shares in accordance with applicable provisions of the Companies Act, 2013 and the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 1998"

Gear up for more SME IPO - Collections witness more than 2 times jump

July 09, 2018 0
Gear up for more SME IPO - Collections witness more than 2 times jump
Small and medium enterprises (SMEs) raised Rs.825 crore through initial public offerings in the first quarter of 2018-19, more than two-fold jump from the preceding financial year.

Last year, around 55 SME companies had tapped the IPO route and got listed on the exchange's platform. This year there are going to be around 100 SME IPOs hitting the market

A total of 47 companies got listed with initial shares-sale offers worth Rs 825 crore during April-June quarter of 2018-19 as compared to 24 firms during the same period in previous year

Sunday, July 8, 2018

Avon Moldplast SME IPO Details

July 08, 2018 0
Avon Moldplast SME IPO Details

Issue opens on: Jul 12, 2018
Issue closes on: Jul 18, 2018
Issue Type: Fixed Price Issue IPO
Issue Size: 884,000 Equity Shares of Rs 10
Face Value: Rs 10 Per Equity Share
Issue Price: Rs 51 Per Equity Share
Bid Lot: 2000 Shares
Listing At: NSE SME


Earnings Calendar - July 2018

July 08, 2018 0
Earnings Calendar - July 2018
*Earnings Calendar :*
JULY 2018
10 - INDUSIND BANK
10 - TCS
13 - INFY
16 - HIND UNILEVER
17 - ASHOK LEYLAND
17 - FEDERAL BANK
17 - ZEEL
18 - BANDHAN BANK
18 - MIND TREE
18 - ULTRATECH CEMENT
19 - BAJAJ FINANCE
19 - BAJAJ FIN SERVE
19 - KOTAK BANK
19 - RBL BANK
20 - BAJAJ AUTO
20 - BATA INDIA
20 - HDFC LIFE
20 - WIPRO
21 - HDFC BANK
24 - ICICI PRU
25 - HEROMOTO CORP
25 - JSW STEEL
25 - TATA ELXI
26 - BIOCON
26 - DR. REDDY
27 - ICICI BANK
27 - M & M FINANCE
30 - GODREJ CONSUMER
30 - HDFC
30 - IDFC
30 - IDFC BANK
30 - TECH MAHINDRA
31 - DABUR.

Monday, July 2, 2018

SEBI asks HDFC AMC to cancel pre-IPO share sale

July 02, 2018 0
SEBI asks HDFC AMC to cancel pre-IPO share sale
HDFC Asset Management has been directed by the Securities and Exchange Board of India (SEBI) to refund the money collected from distributors and advisers for its pre-IPO share sale

HDFC AMC filed for the approval of its IPO in March. Its draft red herring prospectus mentioned that it may allot close to 7.2 lakh shares to its distributors, a move that SEBI did not allow. The fund house then went for a private placement with the said distributors

Sunday, July 1, 2018

HDFC AMC IPO Details

July 01, 2018 0
HDFC AMC IPO Details

HDFC AMC IPO Details (tentative)
IPO Open : July 11th 2018
IPO Close : July 13th 2018
Issue Size: 25,457,555 Equity Shares of Rs 5 aggregating up to Rs 3462.22 Cr
Face Value: Rs 5 Per Equity Share
Price Band: Rs 1345- Rs 1360 Per Equity Share
Market Lot: 11 Shares
Listing At: BSE, NSE

Thursday, June 28, 2018

RITES IPO Allotment Status

June 28, 2018 0
RITES IPO Allotment Status

Thursday, June 21, 2018

Wednesday, June 13, 2018

Bharat 22 ETF Further Fund Offer Details

June 13, 2018 0
Bharat 22 ETF Further Fund Offer Details

Bharat 22 ETF Further Fund Offer Details

Anchor:19th June 2018

Non-Anchor:20th June 2018 to 22nd June 2018

Bharat 22 Fund of Fund (FOF for non-Demat investors) for Retail Category Only.

From 19th June to 22nd June 2018.

Discount: 2.5%

Base issue size:Rs 6000 crs with green shoe option

Friday, May 11, 2018

Indostar Capital Finance IPO closes today - Subscription status till 11 AM

May 11, 2018 0
Indostar Capital Finance IPO closes today - Subscription status till 11 AM

Sunday, March 25, 2018

ICICI Securities IPO Price Band, Bid Lot and other details

March 25, 2018 0
ICICI Securities IPO Price Band, Bid Lot and other details
Issue opens on: March 22, 2018
Issue closes on: March 26, 2018
Face Value: Rs 5 Per Equity Share
Price Band: Rs.519 to Rs.520 per equity share
Bid Lot: 28 Equity Shares
Listing on: NSE, BSE

Lemon Tree Hotels Limited IPO Details

March 25, 2018 0
Lemon Tree Hotels Limited IPO Details
Issue Opens on: Mar 26, 2018 - Mar 28, 2018
Issue Size: 185,479,400 Equity Shares of Rs 10 aggregating up to Rs 1,038.68 Cr
Price Band: Rs.54 to Rs.56 per equity share
Bid Lot: 265 Shares
Listing At: BSE, NSE

Friday, March 9, 2018

Hindustan Aeronautics IPO Details

March 09, 2018 0
Hindustan Aeronautics IPO Details

Hindustan Aeronautics IPO Details

Issue Dates : *16th to 20th March*
Issue Price : *Rs. 1215 to Rs1240*
Retail & Employee Discount : *RS. 25 Per Share*
Lot Size : *12 Shares*
Issue Size (shares) : *3,41,07,525*
Issue Size (Amount) :*4229.33 Crores*
Employee Reservation :
*668,775 Shares*
Net Issue Size : *3,34,38,750 Shares*

Allocation:
*QIB - 50%*
*NII - 15%*
*Retail - 35%*

Thursday, February 15, 2018

HG Infra Engineering IPO Details

February 15, 2018 0
HG Infra Engineering IPO Details

H.G. Infra Engineering Ltd IPO Details (Concise)
Opens: 26/02/18
Closes: 28/02/18
Price Band: Rs. 263-270
Lot: 55 Share
Min App: Rs. 14850
Size: Fresh - 300 Cr. + OFS - 6 mn Share
Allocation: QIB-50%, HNI-15%, RII-35%

Monday, February 5, 2018

Tax on Long Term Capital Gains - FAQs

February 05, 2018 0
Tax on Long Term Capital Gains - FAQs

Frequently Asked Questions (FAQs) regarding taxation of long-term capital gains proposed in Finance Bill, 2018

Under the existing regime, long term capital gains arising from transfer of long term capital assets, being equity shares of a company or a unit of equity oriented fund or a unit of business trust, is exempt from income-tax under clause (38) of section 10 of the Act.

However, transactions in such long-term capital assets are liable to securities transaction tax (STT). Consequently, this regime is inherently biased against manufacturing and has encouraged diversion of investment to financial assets. It has also led to significant erosion in the tax base resulting in revenue loss. The problem has been further compounded by abusive use of tax arbitrage opportunities created by these exemptions.

2. In order to minimise economic distortions and curb erosion of tax base, it is proposed to withdraw the exemption under clause (38) of section 10 and to introduce a new section 112A in the Income-tax Act, 1961 (‘the Act’) vide clause 31 of the Finance Bill, 2018 so as to provide that long-term capital gains arising from transfer of such long-term capital asset exceeding one lakh rupees will be taxed at a concessional rate of 10 percent.

3. Since the introduction of the Finance Bill, 2018 on 1st February, 2018, several querieshave been raised in different fora on various issues relating to the proposed new tax regime for taxation of long-term capital gains. The responses to these queries are provided below.

Q 1. What is the meaning of long term capital gains under the new tax regime forlong term capital gains?

Ans 1. Long term capital gains mean gains arising from the transfer of long-term capital asset. The Finance Bill, 2018 proposes to provide for a new long-term capital gains tax regime for the following assets–

i. Equity Shares in a company listed on a recognised stock exchange;
ii. Unit of an equity oriented fund; and
iii. Unit of a business trust.

The proposed regime applies to the above assets, if
a. assets are held for a minimum period of twelve months from the date of acquisition; and
b. the Securities Transaction Tax (STT) is paid at the time of transfer. However,
in the case of equity shares acquired after 1.10.2004, STT is required to be
paid even at the time of acquisition (subject to notified exemptions).

Q 2. What are the modes of acquisition of equity shares which are proposed to be
exempted from the condition of payment of STT?
Ans 2. The Central Government had exempted certain modes of acquisition of equity shares for the purposes of clause (38) of section 10 of the Act vide notification no. 43/2017 dated 5th of June, 2017. This notification is proposed to be reiterated for the purposes of clause 31 of the Finance Bill, 2018 after its enactment.

Q 3. What is the point of chargeability of the tax?
Ans 3. The tax will be levied only upon transfer of the long-term capital asset on or after 1st April, 2018, as defined in clause (47) of section 2 of the Act.

Q 4. What is the method for calculation of long-term capital gains?
Ans 4. The long-term capital gains will be computed by deducting the cost of acquisition
from the full value of consideration on transfer of the long-term capital asset.

Q 5. How do we determine the cost of acquisition for assets acquired on or before 31st January, 2018?
Ans 5. The cost of acquisition for the long-term capital asset acquired on or before 31st of January, 2018 will be the actual cost. However, if the actual cost is less than the fair market value of such asset as on 31st of January, 2018, the fair market value will be deemed to be the cost of acquisition.

Further, if the full value of consideration on transfer is less than the fair market
value, then such full value of consideration or the actual cost, whichever is higher, will be deemed to be the cost of acquisition.

Q 6. How will the fair market value be determined?
Ans 6. In case of a listed equity share or unit, the fair market value means the highest price of such share or unit quoted on a recognized stock exchange on 31st of January, 2018.
However, if there is no trading on 31st January, 2018, the fair market value will be the highest price quoted on a date immediately preceding 31st of January, 2018, on which it has been traded

In the case of unlisted unit, the net asset value of such unit on 31st of January,
2018 will be the fair market value.

Q 7. Please provide illustrations for computing long-term capital gains in different scenarios, in the light of answers to questions 5 and 6.
Ans 7. The computation of long-term capital gains in different scenarios is illustrated as under -
Scenario 1 – An equity share is acquired on 1st of January, 2017 at Rs. 100, its fair market value is Rs. 200 on 31st of January, 2018 and it is sold on 1st of April, 2018 at Rs. 250.

As the actual cost of acquisition is less than the fair market value as on 31st of
January, 2018, the fair market value of Rs. 200 will be taken as the cost of acquisition and the long-term capital gain will be Rs. 50 (Rs. 250 – Rs. 200).

Scenario 2 – An equity share is acquired on 1st of January, 2017 at Rs. 100, its fair market value is Rs. 200 on 31st of January, 2018 and it is sold on 1st of April, 2018 at Rs. 150.

In this case, the actual cost of acquisition is less than the fair market value as on
31st of January, 2018. However, the sale value is also less than the fair market
value as on 31st of January, 2018. Accordingly, the sale value of Rs. 150 will be taken as the cost of acquisition and the long-term capital gain will be NIL (Rs. 150 – Rs. 150).

Scenario 3 – An equity share is acquired on 1st of January, 2017 at Rs. 100, its fair market value is Rs. 50 on 31st of January, 2018 and it is sold on 1st of April, 2018 at Rs. 150.

In this case, the fair market value as on 31st of January, 2018 is less than the actual cost of acquisition, and therefore, the actual cost of Rs. 100 will be taken as actual cost of acquisition and the long-term capital gain will be Rs. 50 (Rs. 150 – Rs. 100).

Scenario 4 – An equity share is acquired on 1st of January, 2017 at Rs. 100, its fair market value is Rs. 200 on 31st of January, 2018 and it is sold on 1st of April, 2018 at Rs. 50.

In this case, the actual cost of acquisition is less than the fair market value as on
31st January, 2018. The sale value is less than the fair market value as on 31st of
January, 2018 and also the actual cost of acquisition. Therefore, the actual cost of
Rs. 100 will be taken as the cost of acquisition in this case. Hence, the long-termcapital loss will be Rs. 50 (Rs. 50 – Rs. 100) in this case.

Q8. Whether the cost of acquisition will be inflation indexed?
Ans 8. Sub-clause (5) of clause 31 of the Finance Bill, 2018, inter alia, provides that the long-term capital gain will be computed without giving effect to the provisions of the second provisos of section 48. Accordingly, it is clarified that the benefit of inflation indexation of the cost of acquisition would not be available for computing long-term capital gains under the new tax regime.

Q 9. What is the date of commencement of the proposed new tax regime?
Ans 9. The proposed new tax regime will apply to transfer made on or after 1st April, 2018. The existing regime providing exemption under clause (38) of section 10 of the Act will continue to be available for transfer made on or before 31st March, 2018.

Q 10. What will be the tax treatment of accrued gains upto 31st January 2018?
Ans 10. As the fair market value on 31st January, 2018 will be taken as cost of acquisition (except in some typical situations explained in Ans 7.), the gains accrued upto 31stJanuary, 2018 will continue to be exempt.

Q 11. What will be the tax treatment of transfer of share or unit between 1
st February 2018 to 31st March 2018?
Ans 11. As replied in answer 9, the new tax regime will be applicable to transfer made on or after 1st April, 2018, the transfer made between 1st February, 2018 and 31stMarch, 2018 will be eligible for exemption under clause (38) of section 10 of the Act.

Q 12. What will be the tax treatment of transfer made on or after 1
st April 2018?
Ans 12. The long-term capital gains exceeding Rs. 1 Lakh arising from transfer of these asset made on after 1st April, 2018 will be taxed at 10 per cent.

However, there will be no tax on gains accrued upto 31st January, 2018 as explained in Ans 10.

Q13. What is the date from which the holding period will be counted?
Ans 13. The holding period will be counted from the date of acquisition.

Q 14. Whether tax will be deducted at source in case of gains by resident tax payer?
Ans 14. No. There will be no deduction of tax at source from the payment of long-term capital gains to a resident tax payer.

Q 15. Whether tax will be deducted at source in case of payment of long-term capital gains by non-resident tax payer (other than a Foreign Institutional Investor)?
Ans 15. Ordinarily, under section 195 of the Act, tax is required to be deducted on
payments made to non-residents, at the rates prescribed in Part-II of the First Schedule to the Finance Act. The rate of deduction in the case of capital gains is
also provided therein. In terms of the said provisions, tax at the rate of 10 per cent. will be deducted from payment of long-term capital gains to a non-resident
tax payer (other than a ForeignInstitutional Investor). The capital gains will be required to be computed in accordance with clause 31 of the Finance Bill, 2018.

Q 16. Whether tax will be deducted at source in case of payment of long-term capital gains by Foreign Institutional Investors (FIIs)?
Ans 16. No. There will be no deduction of tax at source from payment of long-term capital
gains to a Foreign Institutional Investor in view of the provisions of sub-section (2)
of section 196D of the Act.

Q17. How will the gains in the case of FIIs be determined?
Ans 17. The long-term capital gains in case of FIIs will be determined in the same manner
as explained in earlier answers in the case of resident tax payers.

Q 18. What will be the treatment of the gains accrued upto 31st January 2018 in the case of FIIs?
Ans 18. In case of FIIs also, there will be no tax on gains accrued upto 31st January, 2018 as explained in Ans 10.

Q 19. What will be the tax treatment of transfer of share or unit between 1st February 2018 to 31st March 2018 in the case of FIIs?
Ans 19. As explained in Ans 11, in case of FIIs also, the transfer made between 1st
February, 2018 and 31st March, 2018 will be eligible for exemption under clause
(38) of section 10 of the Act.

Q 20. What will be the tax treatment of transfer made on or after 1st April 2018 in case of FIIs?
Ans 20. As explained in Ans 12, in case of FIIs also, the long-term capital gains exceeding Rs. 1 Lakh arising from transfer of these asset made on after 1st April, 2018 will be taxed at 10 per cent. However, there will be no tax on gains accrued upto 31stJanuary, 2018 as explained in Ans 10.

Q21. What will be the cost of acquisition in the case of bonus shares acquired before1st February 2018?
Ans 21. The cost of acquisition of bonus shares acquired before 31st January, 2018 will be determined as per sub-clause (6) of clause 31 of the Finance Bill, 2018. Therefore, the fair market value of the bonus shares as on 31st January, 2018 will be taken as cost of acquisition (except in some typical situations explained in Ans 7), and hence, the gains accrued upto 31st January, 2018 will continue to be exempt

Q 22. What will be the cost of acquisition in the case of right share acquired before 1st February 2018?
Ans 22. The cost of acquisition of right share acquired before 31st January, 2018 will be determined as per sub-clause (6) of clause 31 of the Finance Bill, 2018. Therefore, the fair market value of right share as on 31st January, 2018 will be taken as cost of acquisition (except in some typical situations explained in Ans 7), and hence, the gains accrued upto 31st January, 2018 will continue to be exempt.

Q 23. What will be the treatment of long-term capital loss arising from transfer made between 1st February, 2018 and 31st March, 2018?
Ans 23. As the exemption from long-term capital gains under clause (38) of section 10 will be available for transfer made between 1st February, 2018 and 31st March, 2018, the long-term capital loss arising during this period will not be allowed to be set￾off or carried forward.

Q 24. What will be the treatment of long-term capital loss arising from transfer made on or after 1st April, 2018?
Ans 24. Long-term capital loss arising from transfer made on or after 1st April, 2018 will be allowed to be set-off and carried forward in accordance with existing provisions of the Act. Therefore, it can be set-off against any other long-term capital gains and unabsorbed loss can be carried forward to subsequent eight years for set-off against long-term capital gains

Thursday, February 1, 2018

Understanding Grandfathering concept under LTCG tax

February 01, 2018 0
Understanding Grandfathering concept under LTCG tax



Mr. Jaitley in his budget speech mentioned grandfathering as a concept with reference to computation of Long Term Capital Gain on which he has introduced tax at 10 percent
However there can be lot of confusion with respect to this concept. Let's understand this concept simply

If you bought any share last year (and not completed 1 year) - your revised cost will be yesterday high price and not actual price. So LTCG will be applicable at price what u sell from now on compared with revised cost on 31st Jan


Understanding LTCG Tax under Grandfathering concept with simple example

Suppose you buy Stock A at Rs 100 on 31Jan 2017 or before

High of stock (not closing price) on 31Jan 2018 = Rs 220

You sell Stock A at Rs 240 on 1st Feb 2018 or after

Your Tax Liability = Rs 20/share (10%) if total profit is higher than 1 lakh

Budget 2018 Highlights - Tax Impact

February 01, 2018 0
Budget 2018 Highlights - Tax Impact

Immediate update on direct tax changes from the budget speech -
1. Real estate – double taxation in respect of immovable property. No adjustment where 5% difference is there.
2. MSME – Corporate tax rate 25% to companies having T/o under Rs. 250 crore in FY 2016-17. Revenue foregone Rs. 7000 crore FY 18-19.
3. Salaried tax payers – No changes in structure. Salaried taxpayer – standard deduction of Rs. 40,000/- in lieu of transport and reimbursement of medical expenses.
4. Senior citizens – exemption of interest income from FD / RD increased to Rs. 50,000. No TDS u/s 194A for this. Health insurance deduction from Rs. 30,000 to Rs. 50,000.
5. Rs. 1,00,000/- deduction u/s 80DDB for critical illnesses for senior and very senior citizens
6. Payment exceeding Rs. 10,000 in cash disallowed for Trusts. Non-deduction of TDS would be disallowed @ 30%
7. LTCG tax – Tax LTCG exceeding Rs. 1,00,000/- @ 10% w/o indexation. All gains upto 31.1.18 grand fathered. STCG normal 15%. Tax on distributed income by EOF @ 15%.
8. Increase cess by 1%. Total cess @ 4% health and education cess
9. E assessment – to be expanded

Budget 2018 Highlights - Government launches world's largest health care programme

February 01, 2018 0
Budget 2018 Highlights - Government launches world's largest health care programme

Government launches world's largest health care programme:

Government will contribute 12 per cent of wages of all new members of EPFO across sectors for 3 years:

Propose an outlay of Rs 7140 crore for the textile sector

Have decided to take healthcare protection to a new aspirational level. Launching a flagship National Health Protection Scheme to cover 10 crore poor and vulnerable families, benefiting approx. 50 crore,

National Health Protection Scheme for 10 crore poor families to get a coverage of Rs 5 lakh per family annually. The scheme may be extended to cover more people if successful

Higher allocation to infra capital expenditure in the Budget can be a boost to rural roads construction –

Scheme for revitalizing school infrastructure, with an allocation of 1 lakh crore rupees over four years. Called RISE - Revitalizing Infrastructure in School Education:

By 2022, every block with more than 50% ST population and at least 20,000 tribal people will have 'Ekalavya' school at par with Navodaya Vidyalas

This will be the world's largest government-funded health care programme covering 10 crore poor families, 50 crore beneficiaries - providing them up to Rs5 lakh per family per year for hospitalization

4400 villages along the Ganga river have been declared Open Defecation Free:

In a bid to take healthcare protection to a new aspirational level arunjaitley allocates 1200 cr for better healthcare facilities

Govt to allocate Rs. 600 cr to provide nutritional support to all TB patients at Rs.500/mth during treatment.

Allocate Rs 2,600 Cr Under Ground Water Irrigation Plan In 96 Districts

FM Says Propose To Earmark Rs 56,000 Cr For SCs & Rs 39,000 Cr For STs

Government proposes to allot Rs 3794 crore for MSME sector: Finance Minister

Government allocates Rs 3 lakh crore for lending under the Mudra scheme:

Finance Minister says Allocate Rs 1.38 lk cr in FY19 for govt health & education programmes; Will soon announce measures for SME NPAs

10 cr families will be provided Rs 5 lakh cover per family per year for treatment under National Health Protection scheme.

Union Budget 2018 Expectations

February 01, 2018 0
Union Budget 2018 Expectations

UNION BUDGET 2018 EXPECTATIONS

Taxation

■ FM could well relook the MAT rate or consider abolishing it altogether
■ Reduce corporate tax rate.
■ Enhance tax deductions, exemptions for individuals
■ Tax benefits for salaried class through standard deduction and revision of allowances
■ May tax long-term capital gains in stock market investments
■ Disallowance of expenses on which GST not paid.

Agriculture

■ Establish fund to guarantee credit to encourage investment in agriculture sector
■ Allocate more funds for crop insurance schemes
■ Increase spending for dams and canals, micro irrigation systems
■ Provide subsidies for building cold storage to avoid wastage of perishable crops
■ Reduce fertilizer subsidies

Banks

■ Allow full tax deduction for provisioning of non-performing assets (NPAs) at banks
■ Raise the threshold for tax deduction on interest paid on bank deposits from current Rs10,000
■ Reduce the tenure of tax-exempted retail term deposits to minimum of 3 years from current 5
■ Carve out tax provisions to streamline proceedings under Insolvency and Bankruptcy Code

Infrastructure

■ Increase investment by 10-15% in roads from Budget 2017
■ Provide support for key road projects, including Bharatmala project, which will connect western and eastern India
■ Increase railways investments by 10% from 2017/18 budget

Technology and IT sector

■ Provide greater incentives for digital transactions
■ Support digital payments infrastructure

Auto sector

■ Announce policy on scrapping commercial vehicles that do not comply with emission norms if operational for over 15 years

Real estate sector

■ Set single-window clearance for all real estate projects, especially housing to avoid execution and project delays
■ Give infrastructure status to real estate to help bring down finance, project costs, make homes more affordable
■ Reduce GST rate for under-construction real estate projects from current 12%
■ Spend more on affordable housing

Energy sector

■ Reduce “cess” duty to 8-10% from 20% for oil and gas exploration and production
■ Reduce or exempt city gas distribution companies from excise duty
■ Provide subsidy aid to downstream companies selling LPG, kerosene below market prices

Metals and mining sector

■ Decrease in basic customs duty on coking coal across grades
■ Decrease in export duty on iron ore above certain grade levels
■ Hike basic customs duty on aluminium scrap to protect domestic industry

Gold

■ Cut import tax on gold to 2-4% from 10% to prevent smuggling.

Finally, an interestingly timed Oxfam survey, suggests that, “the richest 1% of India cornered 73% of wealth generated last year,” has added to the apprehensions of wealthy people. It would be interesting to see whether the FM would want to toy with any thoughts on the introduction of inheritance tax, especially after two of the biggest initiatives of DeMo and GST.

…. over to Mr.Jaitley!

Sunday, January 28, 2018

InvestorFocus - Stock Recommendation - Long Term EICHER MOTORS

January 28, 2018 0
InvestorFocus - Stock Recommendation - Long Term EICHER MOTORS

Scrip: Eicher Motors Limited
CMP: Rs.26,500
Recommendation: BUY
Horizon: Long Term (1 to 2 years)

Company Background
Eicher Motors Limited (EML) (BSE: 505200, NSE: EICHERMOT Bloomberg: EIM IN Reuters: EICH.NS) is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. The world’s oldest motorcycle brand in continuous production, Royal Enfield has made its distinctive motorcycles since 1901. Focused on bringing back simple, yet engaging and accessible motorcycling, Royal Enfield operates in India, and over 40 countries around the world. With modern development facilities in Leicestershire, UK and Chennai, India, Royal Enfield makes its motorcycles in Tamil Nadu for the world

In addition to motorcycles, Eicher has a joint venture with Sweden’s AB Volvo - Volvo Eicher Commercial Vehicles Limited (VECV) - which is driving modernization in India's commercial vehicle space, and in other developing countries. VECV has a complete range of trucks and buses from 5-49 tonnes, and its integrated manufacturing plant in Pithampur, Madhya Pradesh is the global hub for medium duty five- and eight-litre engines for Volvo Group. Since 2012, Eicher has an equal joint venture with US-based Polaris Industries Inc - Eicher Polaris Private Limited - and introduced the Multix 3-in-1 vehicle

Financials





  • The company has managed 593450 units of Royal Enfield which is quite impressive by any standard
  • At FY18E earnings, the company would be trading at a PE ratio of around 33.5 which is substantially justified given the growth prospects
  • Despite depreciation provision, net profit has been impressive for the company
  • EBIDTA Margins stand close to 32 percent which shows strong relative position
  • Company continues to enjoy strong presence across market with around 24% of market share in FY17 and a similar number expected in the current year

Future prospects
  • Demand for Royal Enfield has historically remained healthy and is expected to continually do so with constant waiting period for its flagship "Classic 350" variant
  • Company is planning to launch 3 new models in Apr'18 which will further garland the demand meter
  • Company has re-iterated production target of approximately 825000 units in current financial year. It is however expected that the production would end up being way above this ballpark figure
  • There are 30 exclusive dealers of Royal Enfield in international markets and the company is constantly expanding its footprint both in India and abroad

Synopsis
Considering the continual strong position of the company and maintenance of its market position, the strong track record and visible growth prospects, it is recommended to buy the stock at current levels with objective of incorporating it as a strong pillar in the portfolio with a long term time horizon of 6 months to 2 years


Disclaimer: The market view and recommendation posted are in no way a guarantee (whether express or implied). It is clarified that Indian IPO Blog or any of authors are in no way responsible for any loss suffered by user. Investors are advised to do their own research before making investments in stocks discussed. The author may have positions or stake in the stock discussed

Friday, January 26, 2018

Galaxy Surfactants IPO Review - Indian IPO Blog

January 26, 2018 0
Galaxy Surfactants IPO Review - Indian IPO Blog
Galaxy Surfactants Limited is a Mumbai based manufacturer of surfactants and other specialty ingredients for the personal care and home care industries. The ingredients company manufacture are commonly used in consumer-centric personal care and home care products like skin care, oral care, hair care, cosmetics, toiletries and detergent products. Galaxy Surfactants product portfolio includes over 200 product grades, which are marketed to over 1,700 customers in 70 countries

Galaxy Surfactants products are classified in 2 categories:
1. Performance Surfactants: This includes anionic surfactants and non-ionic surfactants.
2. Speciality Care Products: This includes amphoteric surfactants, cationic surfactants, UV filters, preservatives, preservative blends and surfactant blends, speciality ingredients such as mild surfactants, syndet and transparent bathing bars and proteins, fatty alkanolamides and fatty acid esters, and other care products.

Customers include Cavinkare Private Limited, Colgate-Palmolive (India) Limited, Dabur India Limited, Henkel, Himalaya, LOREAL, Procter & Gamble Home Products Private Limited, Reckitt Benckiser and Unilever

Red flag: The company tried to raise money in 2011 but failed as only 30% subscription was garnered

Galaxy Surfactants IPO - Issue information
Date : Jan 29, 2018 – Jan 31, 2018.
Issue Price: Rs 1470 – Rs 1480, minimum lot of 10 shares.
Issue Size:  937.09 Cr
Objects of Issue: The issue is total offer for sale. No money will be received by the company.

Risks in Galaxy Surfactants IPO
  • As of September 30, 2017, they conducted operations through seven manufacturing facilities and one pilot plant.
  • They do not have long-term agreements with suppliers for their raw materials.
  • For the six months ended September 30, 2017 and the Fiscals 2017, 2016 and 2015,  cost of materials consumed was ₹7,976.96 million, ₹15,144.88 million, ₹11,153.65 million and ₹12,532.98 million, or 66.63%, 69.74%, 61.66% and 66.81% of  total revenue, respectively.
  • They currently generate a significant portion of  revenues from limited number of major customers. For the six months ended September 30, 2017 and the Fiscals 2017, 2016 and 2015, the top ten customers contributed ₹6,977.65 million, ₹11,833.64 million, ₹9,642.79 million and ₹11,252.47 million, or 58.51%, 54.75%, 53.51% and 60.05% of  total revenues from operations, respectively

Strengths in Galaxy Surfactants IPO
  • Established Global Supplier to Major FMCG Brands with Demonstrated Track Record.
  • Robust Product Portfolio Addressing Diverse Customer Needs.
  • Proven R&D Capabilities with Dedicated Focus on Innovation.
  • Global Footprint Supporting Local Reach.
  • Professional and Experienced Management Team

Analysis of Financial Statements:

Balance Sheet:
  • Reserves & Surplus have grown ~3x from 2013 to Sept 2017.
  • One notable observation is that the company has maintained its debt at healthy levels in the recent times.
  • ~25% of total assets are tied up in trade receivables for all the past periods. Perhaps this is a indicator of inefficient collection business.
  • Short term borrowings have also gone up in recent times. We will see if the spillover effect of High Trade receivables and short term borrowings are having an effect on the Cash flow of the business
  • The company has a notable debt to equity ratio trajectory:
Profit & Loss:
  • Strong consolidated growth in revenue observed at around 17% CAGR in past 5 years
  • However, cost of materials consumed form ~70% of the total costs. Any fluctuations in the prices of the same will have direct negative effect
  • EPS Trajectory is strong as shown below:

IPO Valuation:
There are no listed peers to compare the PE ratio. The company is having an EPS of Rs.41.27 at FY17. At this earnings, the PE ratio works out to be 35.80x at the upper end of the price band. Based on last 3 years consolidated restated EPS of Rs.33.46, the PE ratio works out to be 44.20x at the upper end of price band


IPO Recommendation Synopsis:
Although the good financials, increasing profitability trend and improvement in key ratios such as Debt to Equity may warrant a subscribe, investors need to exercise caution especially in the light of risks enlisted above. Although long term investors may be tempted to go for it as a sectoral addition to the portfolio, high listing gains may not be feasible for short term investors considering the PE ratio and no comparable peers around


The article is presented in conjunction with guest writer Aditya Kondawar from  stocksandbiceps.com

    Thursday, January 25, 2018

    Amber Enterprises IPO Allotment status declared

    January 25, 2018 0
    Amber Enterprises IPO Allotment status declared

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