Retail investors now controlling the markets !!!

MUMBAI: The small investor is back on the bus. Setting aside the constant refrain that the small investor has missed the bus in a bull run, data shows that during the latest 1,000 points rally, they remained net buyers every month starting October 2007. October was when the Sensex breached the 20,000 mark for the first- time ever.

As per BSE data, retail investors have bought equities worth more than Rs 1,700 crore since October 29, when the Sensex touched the 20,000 mark for the first time. What is interesting is that it comes at a time when foreign investors, often looked up to as the drivers of the bull run, have been reducing their India exposure. FIIs have sold stocks worth more than Rs 21,000 crore in the past couple of months.

Since October 29, 2007, the Sensex has gained around 4.50% to breach the 21,000 mark on Tuesday. However, market participants say that even as the benchmark index gave marginal returns in the past two months, small investors have remained bullish due to the surge in the second-rung counters.

This is clearly evident from the impressive rise registered by the BSE Midcap and the BSE Smallcap indices. “Small investors have more appetite for lesser-known stocks,” said a senior dealer with a domestic broking house. “The broader indices were gaining ground even as the Sensex moved in a range-bound manner and this attracted more retail money. Just take a look at the rise in the number of brokerage reports covering such stocks. Those reports are here because there are many takers”, he added.

While the midcap and smallcap indices lost heavy ground on Tuesday, the recent past has seen the two broader indices reflect robust returns. Since October 29, the BSE midcap index has gained more than 21%, while the BSE smallcap has appreciated by nearly 40%. These two indices together account for more than 750 stocks. As mentioned earlier, the Sensex has gained only 4.50% in the same period.

Stocks like EIH, Ispat Industries, Educomp Solutions, Exide Industries, CESC, Welspun Gujarat, Andhra Bank, Allahabad Bank and Usha Martin have all gained ground in the recent past.

Some of the second-rung stocks have also been on an acquisition and expansion spree, thereby making them prominent on the investment radar. Some analysts are of the view that retail investors remained bullish even while FIIs were selling, as reports clearly indicated that domestic financial institutions have been buying stocks.

According to BSE, domestic institutional investors have been net buyers at Rs 16,600 crore since October 29. The fact that institutions like LIC, along with major banks, are buying creates a lot of confidence in the minds of investors, they added.

SEBI gives go-ahead to Emaar-MGF IPO

Realty major Emaar-MGF's application to go public has got the stamp of approval from the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO). The IPO is expected to hit the market in the first week of February and raise between Rs 5,000-6,000 crores, making it the second largest realty IPO in the country till date. The company will offload 11 crore shares with the pricing expected to hover around Rs 500-600 per share.

According to sources, the go-ahead came on Tuesday, subject to compliance of observations. "The documents will be finalized in another day or two and filed by Friday or Monday. This is only a formality and we expect to get everything ready so as to launch the IPO in early February," says the source.

Emaar MGF Land, a joint venture between one of the world's leading real estate companies Emaar Properties PJSC of Dubai, and MGF Development of India, filed its Draft Red Herring Prospectus (DRHP) with SEBI in September last year to enter the capital market with its IPO of equity shares.

The global co-ordinators and book running lead manager to the issue are Enam Securities Private Limited and DSP Merill Lynch Limited. The Book Lead Managers are Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited, HSBC Securities and Capital Markets (India) Private Limited, JP Morgan India Private Limited and Goldman Sachs (India) Securities Private Limited.

The company is engaged in the development of properties in the residential, commercial, retail and hospitality sectors. Its operations span various aspects of real estate development such as land identification and acquisition; project planning, designing, marketing and execution.

Some of the current projects under implementation include development of Palm Springs and Palm Drive in Gurgaon, Mohali Hills at Mohali, the prestigious Commonwealth Games village, Delhi and Boulder Hills, Hyderabad.

Many real estate companies launched their IPOs last year, but the largest of them all was the DLF offering in July 2007, which raised Rs 9187 crore.

Securities in ban period for trade date January 09, 2008- F&O segment

The derivative contracts in the below mentioned securities have crossed 95% of the market-wide position limit and are currently in the ban period. It is hereby informed that all clients/ members shall trade in the derivative contracts of said securities only to decrease their positions through offsetting positions. Any increase in open positions shall attract appropriate penal and disciplinary action in accordance with the Circular No. NSCC/F&O/C&S/365 dated August 26, 2004.

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2	APTECHT
3	ARVINDMILL
4	BINDALAGRO
5	BONGAIREFN
6	GMRINFRA
7	HINDOILEXP
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9	IFCI
10	ISPATIND
11	IVRPRIME
12	NAGARFERT
13	PARSVNATH
14	RAJESHEXPO
15	RPL
16	SRF
17	TTML

Rel Power IPO opens on Jan 15, to raise Rs 10500-11500 Cr

Reliance Power today filed the red herring prospectus (RHP) with the Registrar of Companies, Maharshtra, Mumbai (ROC), for its proposed initial public offering (IPO).

Reliance Power has fixed the price band for the IPO at Rs 405 - 450 per share.

To enable large participation by retail investors, Reliance Power will offer a discount of Rs 20 per share to the retail investors, i.e. approximately 5% of the issue price.

Reliance Power has also fixed convenient payment terms for all categories of investors. While QIBs are required to pay 10% on the application, the HNIs and retail investors will have the option to pay Rs 115 on the application, i.e. only approximately 25% of the issue price. The balance amount will be payable on allotment.

The IPO is scheduled to open on January 15, 2008 and will close on January 18, 2008.

Reliance Power, through this IPO proposes to raise approximately Rs 10,500 - 11,500 crores - the largest IPO in the history of the Indian capital markets. Reliance Power proposes to issue 26 crore equity shares of Rs 10 each including a promoters� contribution of 3.2 crore Equity Shares which shall be allotted at the IPO price to the Promoters. The balance 22.8 crore equity shares would constitute the net issue to the public. The issue will constitute 11.5% and the net issue will constitute 10.1% of the post-Issue paid-up equity capital of Reliance Power.

Reliance Power is part of the Reliance Anil Dhirubhai Ambani group and is currently engaged in the construction and development of various gas and coal based thermal power projects and hydro power projects in various parts of the country, of over 28,000 MW capacity - the largest development pipeline in the country.

The issue proceeds are proposed to be utilized for funding subsidiaries to part-finance the construction and development costs of the various projects under development and for general corporate purposes.

The equity shares of the company are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.

Kotak Mahindra Capital Company Limited, UBS Securities India Private Limited, ABN AMRO Securities (India) Private Limited, Deutsche Equities India Private Limited, Enam Securities Private Limited, ICICI Securities Limited, JM Financial Consultants Private Limited and J.P. Morgan India Private Limited are acting as the Book Running Lead Managers to the Issue whilst Macquarie India Advisory Services Private Limited and SBI Capital Markets Limited are acting as Co-Book Running Lead Managers. Amarchand & Mangaldas & Suresh A. Shroff & Co. is advising the Company whilst Cleary Gottlieb Steen & Hamilton and J. Sagar and Associates are advising the BRLMs and CBRLMs in relation to the issue.

DLF becomes India's second most valued private sector firm

MUMBAI: Real estate giant DLF on Friday pipped Bharti Airtel to become the country's second most valued private sector company after Reliance Industries, following a surge of over five per cent in its share price.

In an overall flat market, shares of DLF rose by 5.31 per cent at the BSE to close at Rs 1,063.70 - more than double its IPO price in less than six months of listing.

The company's market capitalisation surged to Rs 1,81,343 crore at the end of today's trading, marking a gain of about Rs 9,150 crore over the previous day.

This is second highest among private sector companies after country's most valued firm RIL, which has a market cap of over Rs 4,21,000 crore.

This is estimated to have swelled DLF chairman Mr K P Singh's wealth to more than $40 billion (about 1,60,000 crore). Last month, Mr Singh was named as world's richest realtor with a wealth of $35 billion by Forbes magazine.

Forbes had calculated Mr Singh's wealth on the basis of DLF share price on November 2, since when the scrip has gone up by 14.3 per cent. Today's rally, which followed reports that DLF was mulling over listing its various subsidiaries, made it the count ry's fourth most valued firm across both private and public sector companies.

RIL is followed by two public sector companies ONGC and NTPC in the market capitalisation league at over Rs 2,62,000 and Rs 1,99,000 crore respectively.

DLF was followed by telecom major Bharti Airtel as the country's fifth most valued company with a market value of Rs 1,78,530 crore. Earlier in the day, shares of DLF touched a lifetime high of Rs 1,072. - PTI