Master And Student - All About Stock Markets

Oil India Ltd the premier Indian National Oil Company is coming out with an IPO of 26 million shares for diversification of existing business in downstream activities and purchase of capital equipments and contracts for facilities.

The company is engaged in the business of exploration, development and production of natural gas and crude oil, transportation of crude oil and production of LPG.Oil India also provides other E&P related services and it is the second largest oil and gas company in India.

Details of the issue :
Issue Size: 2,64,49,982 Equity Shares of Rs. 10.
Issue Price: Rs 950 to Rs 1050.
Issue Open from September 7,2009 to September 11, 2009.
Crisil has given IPO Grade 4 to Oil India Limited.

In 2008-09, the company reported an EPS of Rs 101, while its book value per share stood at Rs 436.Though the pricing seems to be on the higher side comparing with ONGC, investors can apply for this Ipo having long term view.

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Globus Spirits is coming out with a public issue of 75 lakh equity shares of Rs. 10 each in the price band of Rs. 90 to Rs. 100 per share. The company has come out with this issue to modernize and expand its production facilities. The Company has its own brand presence in country liquor and is a well known liquor player having two distilleries in Haryana and Rajasthan.

The company's results for FY09 has been quite good with sales of Rs. 281 crores and PAT of Rs. 12.93 crores, resulting in an EPS of Rs.10. Even the current quarter of FY10 has also been good with an EPS of Rs. 5.5, which implies an EPS of Rs. 20 plus for FY10, on pre-IPO equity. Another comforting factor is that post-IPO the promoters stake in the company would be around 60%.

Details of the issue:
Issue Size: 75,00,000 Equity Shares of Rs. 10.
Issue Price: Rs. 90 to Rs. 100.
Minimum shares : 70.
Issue opens from August 31, 2009 to September 02, 2009.

Though there are more established players in this segment, this stock is worth looking at and investors can apply for this IPO.

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Tata Docomo makes an impact in its first month. Tata TeleServices TTSL has reported subs net addition of 2.26 mn for the month of July 2009, surpassing its previous highest monthly net addition of 1.26 mn reported in March 2009. This is a reflection of the positive response to the company’s GSM launch in six circles and innovative ‘per-second’ billing .It seems TTSL’s innovation can have a longer-lasting impact on the dynamics of the Indian wireless market than some of the other new launches.But the sector prospects still remains foggy.

TTSL garners 34.3% net adds market share in the six new GSM circles. Strong response to the new GSM service launch in six new circles has helped TTSL increase subs net adds to its best-ever 2.26 mn (15.7% of market net adds) for the month of July 2009, lower than only Bharti and RCOM. The company’s share of net adds in the new circles of launch was 34.3%, an indicator of the strong initial response to its innovative ‘per-second’ billing structure in its GSM launch.

Tata Docomo’s ‘per-second’ billing concept is capable of making a strong and sustainable impact on the industry’s competitive dynamics. While the company’s July 2009 subs net adds corroborate the ‘strong’ part, the ‘sustainablity' will be tested over the coming months.

Meanwhile the Ads are also doing pretty well !

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Here comes a new product from Benchmark mutual funds - Hangseng Bees. The investment objective of the fund is to provide investment returns that closely correspond to the total returns of securities as represented by the Hang Seng Index. We all know about Nifty Bees which invests in Nifty index scrips and is well traded in NSE. This is a new product by which Indians can buy Hangseng index. This has come at a time when there is lot of interest in tracking Chinese markets.

Details of the scheme:
One Unit of Nifty BeeS is approximately 1/10th of the Hangseng Index, which is currently at 20000, so 1 unit would be Rs.2000. It will be listed and traded on the NSE -Capital Market Segment and is settled in the Rolling Segment on T+2 basis.
The fund is expected to be launched next month.

Get yourselves prepared to buy China ! And don't forget to know about Nifty Bees

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India's first planned hill city, Lavasa has residential spaces available at pocket friendly prices for people from all walks of life. Developed as an open community housing project, the city is available for people from all socio-economic genres. The share-holding pattern of Lavasa is as follows: HCC group holds 65 %, Avantha group holds 16 %, Venkateshwara Hatcheries hold 12.79 %, Private investor owns 6 %

Set among the Sahayadri Mountains amidst 7 hills and 60km of lakefront, a 3 hours drive from Mumbai and an hour's drive from Pune, the hill city is a quarter of Mumbai's size. The city provides opportunity for the common man to live, learn and play with a smile. The hill city cuts through the socio-economic spectrum, targeting a population mix of all groups.

Lavasa has many firsts to its credit - technology leadership and e-governance. It is the first Indian city developed using Geographical Information System. Lavasa has also made use of bio-mimicry as a science in town planning innovative techniques like hydro-seeding in environment management. HCC is bringing education, business and tourism, hospitality leisure together,in making this modern city.

Hindustan Construction - HCC is the promoter of Lavasa and they aim to cross Rs 100,000 crores in revenue in ten years from now and it will have a much bigger share in HCC's market cap. They have plans to float an IPO and list it on the stock exchanges. Going by these developments,HCC is a stock to watch closely in the construction space.

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Nifty Bees is the first Exchange Traded Fund (ETF) in India launched by Benchmark Funds. The NSE Code is NIFTYBEES. Recently I have been receiving many email queries from our regular visitors about whether one can trade, take delivery and so on. This update is to clarify their doubts and add some more details about it.

Nifty Bees is just the replica of the NSE Nifty Index which is currently at 4700. It is 1/10th of the value of the index, quoting at 470. It is as simple as that.

Now the question is, can anyone trade or take delivery of this, just like any other stock?
Definitely one can trade or take delivery just like any other stock. Since Nifty Bees is primarily an investment product, it is wise to take delivery rather than trading intraday.

So now the next question is - when to buy and how much to buy?

Instead of timing the market,like I will buy at 15k or 12 K, it is better to buy in a systematic manner. Systematic Investment Plan - as the name suggets, Invest a certain fixed amount every month and take delivery of the units/shares.

Features of Nifty Bees:

1.You can buy the market as a whole.
2.You can buy 1 unit also.
3.After you have bought , just like stocks it will be available in your DMAT Account.
4.You can sell them any day.
5.You need not worry about buying and selling stocks.

Some not-so-exciting features:
1.You wont get 20%-30% upmoves in a day, like in stocks. (Other than a Blackswan upfreeze ! )
2.Moderate returns.

Going by all these features , Nifty Bees is a good investment product and it is a simple way for small investors to participate in equity markets.

You can also read the previous article here - What is Nifty Bees ?

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NHPC Limited ( National Hydroelectric Power Corporation Ltd) is coming out with a really mega size IPO. The objective of the issue is to raise capital , finance the projects and get its shares listed on the stock exchanges.
Details of the issue:
IPO is open from August 7 to August 12, 2009. The issue size is of 167 crore shares of face value Rs.10/- each in the price band of Rs.30-Rs.36.

Market lot of 175 shares and minimum bid is of 175 shares. The maximum number of shares one can apply under retail category is 2625 shares at the higher band of Rs.36. Listing of the shares is to be done at NSE and BSE.

India is a power shortage country and any issue from the power sector is likely to be grabbed up and is expected to do well. Though the issue could have been priced lower, it is a reasonable good issue. Investors can go ahead and invest in this issue.

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