STATISTICS :
Market will follow global ques can see a gap down opening of 50 points in nifty. Nifty will be rangebound and very volatile, trades between levels 4750- 4980 levels. Nifty has some support @ 4800 levels if it closes below this level can see nifty @ 4700 levels in a few days. Nifty has some resistance @ 4950 levels,
INTRADAY :
REL : buy for a tgt of 1500+
DELIVERY :
Nagarjuna FERT : buy for a tgt of 65+ in short term
long term tgt is 140+
IFCI : buy for a tgt of 70+ in short term
long term tgt is 125+
FUTURES :
NIFTY : sell for a tgt of 4800, sl @ 4950
REL : buy for a tgt of 1540+
ICICI Bank : buy below 945 for a tgt of 990+
IDBI : buy for a tgt of 114+
ZEEL : sell for a tgt of 258, sl @ 272
OPTIONS :
NIFTY : buy call 5000 below 100 for a tgt of 200+, sl @ 60
IDBI : buy call 110 for a tgt of 10+
Nagarjuna fert : buy call 50 for a tgt of 3.5+, sl @ .90
HEDGE CALLS :
1> ...Nifty : buy 1 lot futures @ 4800 levels for a tgt of 5100+
.......Nifty : sell 1 lot 4800 put @ 150+ .
Friday, 7 March 2008
Thursday, 6 March 2008
New IPO's Gap for listing time to be reduced says SEBI
Capital market regulator SEBI said on Wednesday it has slashed the fees payable by various market players by up to 80%. The regulator will also reduce the gap between opening of an issue and the listing of securities on the bourse and make the registration norms for foreign institutional investors (FIIs) more flexible.
The fee payable by mutual funds, custodians and those who file offer documents has been cut by as much as 80% from April 1, 2008, SEBI chairman CB Bhave told reporters here after a meeting of the regulator’s board. It has also slashed the fee for offer documents for buyback of securities and the registration fee for venture capital funds.
The fee for filing offer documents for a public issue and mutual funds has been lowered from 0.03% of the amount raised to 0.005%. While the cap on fee for a public offer is Rs 3 crore, for mutual fund, it is Rs 50 lakh. The annual registration fee for custodians has been slashed from 0.001% to 0.0005% of assets under custody.
SEBI has reduced the registration fee for venture capital funds from Rs 10 lakh to Rs 5 lakh. The fee for rights issue offer documents has been slashed from 0.05% to 0.005%, subject to a maximum of Rs 5 lakh, Mr Bhave said. The fee for filing an offer document for buyback of securities has been reduced from 0.05% to 0.125%, subject to a maximum of Rs 3 crore.
Mr Bhave said SEBI has set up a panel to examine how to compress the IPO process. “Institutional investors tend to argue that they put in a lot of money that cannot be locked in for such a long time. Secondly, some people have raised the issue of funds that remain with the banks. That issue will also be automatically addressed once we reduce the gap. Although no time frame has been given, the panel will work expeditiously,” said Mr Bhave.
Foreign institutional investors (FII) can look forward to a more liberal registration regime in India. SEBI is making the FII registration norms announced last October more flexible. "We have not notified it so far because we want to make the process more flexible so that more and more FIIs can easily get registered, " SEBI whole time member T C Nair said. SEBI board had on October 25 agreed to certain changes in the registration criterion for foreign investors.
A large number of investors who were investing into India through participatory notes and wanted to register directly have been keenly waiting for the norms to be notified. Mr Nair said about 200 foreign institutional investors have registered to buy shares in India since the regulator tightened rules on investments using offshore derivatives in October.
SEBI's board also decided on Wednesday that a three-member panel headed by National Judicial Academy director Dr Mohan Gopal would oversee regulatory proceedings against the National Securities Depositories Limited. Mr Bhave had requested that he be recused from the proceedings as he was in charge of NSDL earlier. SEBI also approved in principle that Madras Stock Exchange members could be allowed to trade on NSE's platform.
The fee payable by mutual funds, custodians and those who file offer documents has been cut by as much as 80% from April 1, 2008, SEBI chairman CB Bhave told reporters here after a meeting of the regulator’s board. It has also slashed the fee for offer documents for buyback of securities and the registration fee for venture capital funds.
The fee for filing offer documents for a public issue and mutual funds has been lowered from 0.03% of the amount raised to 0.005%. While the cap on fee for a public offer is Rs 3 crore, for mutual fund, it is Rs 50 lakh. The annual registration fee for custodians has been slashed from 0.001% to 0.0005% of assets under custody.
SEBI has reduced the registration fee for venture capital funds from Rs 10 lakh to Rs 5 lakh. The fee for rights issue offer documents has been slashed from 0.05% to 0.005%, subject to a maximum of Rs 5 lakh, Mr Bhave said. The fee for filing an offer document for buyback of securities has been reduced from 0.05% to 0.125%, subject to a maximum of Rs 3 crore.
Mr Bhave said SEBI has set up a panel to examine how to compress the IPO process. “Institutional investors tend to argue that they put in a lot of money that cannot be locked in for such a long time. Secondly, some people have raised the issue of funds that remain with the banks. That issue will also be automatically addressed once we reduce the gap. Although no time frame has been given, the panel will work expeditiously,” said Mr Bhave.
Foreign institutional investors (FII) can look forward to a more liberal registration regime in India. SEBI is making the FII registration norms announced last October more flexible. "We have not notified it so far because we want to make the process more flexible so that more and more FIIs can easily get registered, " SEBI whole time member T C Nair said. SEBI board had on October 25 agreed to certain changes in the registration criterion for foreign investors.
A large number of investors who were investing into India through participatory notes and wanted to register directly have been keenly waiting for the norms to be notified. Mr Nair said about 200 foreign institutional investors have registered to buy shares in India since the regulator tightened rules on investments using offshore derivatives in October.
SEBI's board also decided on Wednesday that a three-member panel headed by National Judicial Academy director Dr Mohan Gopal would oversee regulatory proceedings against the National Securities Depositories Limited. Mr Bhave had requested that he be recused from the proceedings as he was in charge of NSDL earlier. SEBI also approved in principle that Madras Stock Exchange members could be allowed to trade on NSE's platform.
Reliance Energy plans buyback at Rs 1,600/share
Anil Ambani’s Reliance Energy (REL) said on Wednesday that it would buy back shares worth up to Rs 2,000 crore at a price of up to Rs 1,600 a share, a 9.6% premium over Wednesday’s closing price.
With the fund allocated for buyback, the company could purchase around 1.25 crore shares from the open market, which would raise promoter’s stake by 1.5% to 37% on a reduced equity base, said a senior company executive.
The REL board, which met on Wednesday, has decided to complete the buyback in two phases. The company will release Rs 800 crore in the first tranche, while the remaining Rs 1,200 crore will be allotted in the second phase, subject to shareholders’ approval. The buyback is to “reduce short-term volatility in the company’s share price and deter speculative activity” in the stock, the company said in a statement.
The promoters’ equity in the power distribution company stands at 35.5% after they scaled up their holding by 2.5% in past one year through creeping acquisitions. The REL stock quadrupled in 2007, making it one of the top performers in the stock market. The share has fallen over 30% so far this year, more than the BSE index’s 18.5% drop. Ahead of the buyback announcement, the REL share closed 3% lower at Rs 1,459.45 on the BSE on Wednesday.
“REL, which has a cash reserve of almost Rs 11,000 crore and a net worth of Rs 10,000 crore, is undervalued in the market. The buyback will reduce the equity base, resulting in an increase in the earnings per share (EPS) since the shares bought back will be extinguished. This, in turn, will increase the promoters’ stake on a reduced equity base. Also, it is expected to set a floor price and restrict the downside,” said an analyst with a local brokerage. REL’s fully diluted equity capital is Rs 279.53 crore, while its market capitalisation is over Rs 42,000 crore.
The move, which aims to bolster investor confidence, came soon after REL arm Reliance Power announced three bonus shares for every five shares held by its investors. Reliance Power slumped 17% on its debut in February after raising Rs 12,000 crore through the country’s largest IPO.
Post-announcement of the bonus issue, the Reliance Power stock crossed the issue price of Rs 450. But it came down by 4.1% on Wednesday to close at Rs 376.25. The bonus shares will bring down the cost of acquiring Reliance Power shares to Rs 269 for retail investors and Rs 281 to others. The Reliance Power shares were sold at Rs 450 through the IPO, which offered Rs 20 discount to retail investors.
This is the second time REL is going for a buyback after the Reliance group had acquired the erstwhile BSES. Earlier, in June 2004, before the demerger of the Reliance group, it had bought back shares worth Rs 350 crore. It had paid a maximum price of Rs 525 per share, which represented a 12% premium to the low of Rs 463 on May 31, 2004, the day on which the notice to consider buyback of shares was issued to the stock exchanges.
With the fund allocated for buyback, the company could purchase around 1.25 crore shares from the open market, which would raise promoter’s stake by 1.5% to 37% on a reduced equity base, said a senior company executive.
The REL board, which met on Wednesday, has decided to complete the buyback in two phases. The company will release Rs 800 crore in the first tranche, while the remaining Rs 1,200 crore will be allotted in the second phase, subject to shareholders’ approval. The buyback is to “reduce short-term volatility in the company’s share price and deter speculative activity” in the stock, the company said in a statement.
The promoters’ equity in the power distribution company stands at 35.5% after they scaled up their holding by 2.5% in past one year through creeping acquisitions. The REL stock quadrupled in 2007, making it one of the top performers in the stock market. The share has fallen over 30% so far this year, more than the BSE index’s 18.5% drop. Ahead of the buyback announcement, the REL share closed 3% lower at Rs 1,459.45 on the BSE on Wednesday.
“REL, which has a cash reserve of almost Rs 11,000 crore and a net worth of Rs 10,000 crore, is undervalued in the market. The buyback will reduce the equity base, resulting in an increase in the earnings per share (EPS) since the shares bought back will be extinguished. This, in turn, will increase the promoters’ stake on a reduced equity base. Also, it is expected to set a floor price and restrict the downside,” said an analyst with a local brokerage. REL’s fully diluted equity capital is Rs 279.53 crore, while its market capitalisation is over Rs 42,000 crore.
The move, which aims to bolster investor confidence, came soon after REL arm Reliance Power announced three bonus shares for every five shares held by its investors. Reliance Power slumped 17% on its debut in February after raising Rs 12,000 crore through the country’s largest IPO.
Post-announcement of the bonus issue, the Reliance Power stock crossed the issue price of Rs 450. But it came down by 4.1% on Wednesday to close at Rs 376.25. The bonus shares will bring down the cost of acquiring Reliance Power shares to Rs 269 for retail investors and Rs 281 to others. The Reliance Power shares were sold at Rs 450 through the IPO, which offered Rs 20 discount to retail investors.
This is the second time REL is going for a buyback after the Reliance group had acquired the erstwhile BSES. Earlier, in June 2004, before the demerger of the Reliance group, it had bought back shares worth Rs 350 crore. It had paid a maximum price of Rs 525 per share, which represented a 12% premium to the low of Rs 463 on May 31, 2004, the day on which the notice to consider buyback of shares was issued to the stock exchanges.
Terror taking rural bank route: RBI
A hitherto unknown corporate entity was found depositing Rs 1 crore in a rural bank in remote Punjab on a daily basis for over a month and taking it out at the end of the day as loan.
In a similar case, in an urban cooperative bank in western Uttar Pradesh in 2006, an individual was found to have deposited more than Rs 250 crore over a period of time and having taken it out at the same time.
Such cases could have easily passed off as suspect money laundering transactions allegedly involving local traders and businessmen but after intelligence agencies arrested two associates of Hurriyat leader G M Bhat in November last year, suspicious transactions in cooperative and rural banks have attracted heightened security concern.
The government has warned regional rural banks (RRBs) and urban cooperative banks (UCBs) to be on guard against tainted money finding its way into their depository with the probability of terror outfits misusing such accounts to fund terror activities. In a notification issued to all RRBs and UCBs, the Reserve Bank of India said all banks should develop suitable mechanism for enhanced monitoring of accounts suspected of having terrorist links and report all such transactions to the Financial Intelligence Unit (FIU).
Jamali Khan and Danish Anwar — who were detained in Udhampur in November 2007 while they were ferrying a consignment of Rs 50 lakh to the Valley from Delhi allegedly at Hurriyat leader Bhat's instructions — had been working together in the Ajmer branch of a cooperative bank.
Investigations had revealed that Jamali, when he was posted in the bank's Daryaganj branch in Delhi in 1985-86, used to convert dollars into Indian currency for Bhat and had in the process converted up to $800,000 for the Hurriyat leader who also had an account in the same branch. Later, Jamali left the bank job and worked as fulltime hawala operator for many terror outfits.
Though the recent RBI guidelines of keeping an eye on suspicious transactions are part of an old ‘know your customer' norm, reiteration of the fact through a fresh notification comes at a time when many enforcement agencies have warned the government of huge money being laundered through these RRBs and UCBs and many having suspect terror links.
Banks have been advised to carry out risk categorisation review of customers once in six months and introduce a system of periodic updation of customer identification data (including photographs) after the account is opened. Even in the case of low risk category customers, the periodicity of such updation should not be less than once in five years, the RBI has said.
At the same time, the bank has asked RRBs and UCBs not to deny account opening facilities to unsuspecting customers. "It is clarified that, in such cases, banks can obtain an identity document and a utility bill of the relative with whom the prospective customer is living along with a declaration from the relative that the said person (prospective customer) wanting to open an account is a relative and is staying with him/her,” the RBI note said.
In a similar case, in an urban cooperative bank in western Uttar Pradesh in 2006, an individual was found to have deposited more than Rs 250 crore over a period of time and having taken it out at the same time.
Such cases could have easily passed off as suspect money laundering transactions allegedly involving local traders and businessmen but after intelligence agencies arrested two associates of Hurriyat leader G M Bhat in November last year, suspicious transactions in cooperative and rural banks have attracted heightened security concern.
The government has warned regional rural banks (RRBs) and urban cooperative banks (UCBs) to be on guard against tainted money finding its way into their depository with the probability of terror outfits misusing such accounts to fund terror activities. In a notification issued to all RRBs and UCBs, the Reserve Bank of India said all banks should develop suitable mechanism for enhanced monitoring of accounts suspected of having terrorist links and report all such transactions to the Financial Intelligence Unit (FIU).
Jamali Khan and Danish Anwar — who were detained in Udhampur in November 2007 while they were ferrying a consignment of Rs 50 lakh to the Valley from Delhi allegedly at Hurriyat leader Bhat's instructions — had been working together in the Ajmer branch of a cooperative bank.
Investigations had revealed that Jamali, when he was posted in the bank's Daryaganj branch in Delhi in 1985-86, used to convert dollars into Indian currency for Bhat and had in the process converted up to $800,000 for the Hurriyat leader who also had an account in the same branch. Later, Jamali left the bank job and worked as fulltime hawala operator for many terror outfits.
Though the recent RBI guidelines of keeping an eye on suspicious transactions are part of an old ‘know your customer' norm, reiteration of the fact through a fresh notification comes at a time when many enforcement agencies have warned the government of huge money being laundered through these RRBs and UCBs and many having suspect terror links.
Banks have been advised to carry out risk categorisation review of customers once in six months and introduce a system of periodic updation of customer identification data (including photographs) after the account is opened. Even in the case of low risk category customers, the periodicity of such updation should not be less than once in five years, the RBI has said.
At the same time, the bank has asked RRBs and UCBs not to deny account opening facilities to unsuspecting customers. "It is clarified that, in such cases, banks can obtain an identity document and a utility bill of the relative with whom the prospective customer is living along with a declaration from the relative that the said person (prospective customer) wanting to open an account is a relative and is staying with him/her,” the RBI note said.
NHPC IPO likely in July-August
Having missed the opportunity last year to hit the market, power sector giant NHPC is likely to approach market regulator Sebi by May for its Initial Public Offer (IPO).
"We are waiting for the appointment of independent directors... We hope to have them on the board soon as the names have already been forwarded and are under process. The government has extended all support," NHPC Chairman and Managing Director S K Garg told PTI.
"We should be hitting the market around July-August this year and submit revised draft prospectus with Sebi, based on current fiscal's financial performance on March 31," he added.
NHPC, which has a paid up capital of Rs 11,500 crore, is likely to come out with a public offer of 167 crore shares, which would add 10% as fresh equity besides 5% disinvestment. The shares would be face value of Rs 10 each.
The proceeds from IPO would be used to part finance the Rs 28,000 crore expansion plan of NHPC, which has set an ambitious target of becoming a 10,000 MW power generation company during the 11th plan period.
This will be the biggest IPO in the power sector with 167 crore shares on sale, officials said.
Asked about the premium the company was expecting, Garg declined to comment, saying it was too early to comment but exuded confidence of investors' faith on the PSUs as it happened in case of Rural Electrification Corporation (REC), whose IPO was over subscribed by more than 30 times despite uncertainty in the stock market, especially on IPO front.
"We are waiting for the appointment of independent directors... We hope to have them on the board soon as the names have already been forwarded and are under process. The government has extended all support," NHPC Chairman and Managing Director S K Garg told PTI.
"We should be hitting the market around July-August this year and submit revised draft prospectus with Sebi, based on current fiscal's financial performance on March 31," he added.
NHPC, which has a paid up capital of Rs 11,500 crore, is likely to come out with a public offer of 167 crore shares, which would add 10% as fresh equity besides 5% disinvestment. The shares would be face value of Rs 10 each.
The proceeds from IPO would be used to part finance the Rs 28,000 crore expansion plan of NHPC, which has set an ambitious target of becoming a 10,000 MW power generation company during the 11th plan period.
This will be the biggest IPO in the power sector with 167 crore shares on sale, officials said.
Asked about the premium the company was expecting, Garg declined to comment, saying it was too early to comment but exuded confidence of investors' faith on the PSUs as it happened in case of Rural Electrification Corporation (REC), whose IPO was over subscribed by more than 30 times despite uncertainty in the stock market, especially on IPO front.
Subscribe to:
Posts (Atom)
