Archive for May 2010

StanChart IDR issue review

by Rajesh Narayanan · 2 Comments

Standard Chartered to issue 240 m Indian Depository Receipt (IDR) which will open on 25 May 2010 and close on 28 May 2010. 10 IDRs represent one share of Standard Chartered Plc.
StanChart's IDR is the first issue of its kind in India.What are these IDRs? Like American or Global Depository Receipts, where Indian companies raise resources overseas, IDRs enable foreign companies to do the same in India.

StanChart has been operating in India for over 150 years and has over 90 branches. It has a combined customer base of around 20 lakh and the bank has operations in consumer banking, as well as private banking.

Standard Chartered is listed in London and Hong Kong stock exchanges. The price of the IDR is yet to be announced, couple of days before the issue and 5% discount is offered to retail investors. Currently Stanchart trades at 15 times current year earnings and any price of 5-10% below from current levels would be a good price to apply.

The price band is Rs.100-115, and the IDRs would be listed in NSE,BSE. At the lower end of the price band, the IDR would trade at 15 times current year earnings and it is compares favourably with private banks like ICICI Bank and HDFC Bank.

The risk factor being the currency, if Rupee appreciates IDR value will be affected.
One can apply for the issue for medium to long term and listing gains may not be substantial.

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Shriram Transport NCD - New

by Rajesh Narayanan · 1 Comment

Shriram Transport Finance is planning to raise Rs 500 crore through retail non-convertible debentures (NCDs). The company plans to raise three-year secured NCDs at 9.75%. The company had earlier come out with such an NCD issue with good success.

The issue has as been rated AA/Stable' by Crisil and 'AA+' by CARE.The bonds' coupon rate ranges between 9% and 11%.The issue is open from May 17 , for the sale of NCDs up to Rs 250 crore with a greenshoe option up to Rs 250 crore.

Details of the issue:

The face value and the issue price is Rs.1000 and the minimum application is for 10 debentures Rs.10,000. There are two options 60 months and 84 months.
1. 60 months - coupon rate 9.75% paid annually and 10.5% paid semi annually.
2. 84 months - coupon rate 10.5% annually.

The term deposit rates are in the range of 6-7% for deposits of 1 year maturity. There is a premium of about 3% in the company’s NCD offer. Hence investors can invest in this issue, if they want higher returns than their present Bank Deposits.

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Debt Help on your own

by Rajesh Narayanan · 2 Comments

If you find that you are so much overburdened with debt that you are having sleepless nights then you should start thinking about some Debt Help without making any delay. You can obviously get some professional Debt Help by opting for a Debt Consolidation Program or a Debt Management Program. But, on your own you can reduce the debt burden if you follow some simple and logical steps:

The first thing you need to do is to have a clear idea of your exact debt situation. Gather all of your credit card bills and loan documents and just calculate exactly how much you owe to your creditors.

Analyze your debt situation by considering your debt amount and your monthly income. Also consider your necessary monthly expenses. If you find that your debt is too big and your salary is too low for repaying the debt, you may think about some professional Debt Help. If you find that your debt is manageable if you act smart, then carry out your own Debt Help plans.

Start paying off your debts with the high interest ones. Both in case of your credit card accounts and other loan accounts, first try to repay those which carry comparatively higher rates of interest. At this time, pay the minimum required amount for the low-interest debts. Once you pay off the high interest debts, start to pay more towards repaying the low-interest debts.

Substantially reduce your credit card usage. If you really want to help yourself to come out of the debt problems, you have to ensure that you are not using your credit cards unnecessarily. If you hold multiple credit cards, cancel some. Keep a few and use them only when you need them genuinely.

Create an emergency fund. Otherwise in emergencies you will again start to use your credit cards. This will lead you to even more debt. So, if you want to get Debt Help on your own, start an emergency fund immediately.

Maintain a debt diary. At the end of every month, note down how much of debt you have paid off. This way, you will not only have a clear documentation of your debt repayment, but will also get a sense of accomplishment and that will help you to remain motivated.

N.B: This guest post is written by Sandy Thomson.

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Rajesh Exports - Shubh Gold Revolution

by Rajesh Narayanan · 3 Comments

fashionjewelleryRajesh Exports (REL), in a potential game-changing move for the industry, announced plans to sell products at per-gram rate, the buyer paying no wastage, making and other hidden charges. REL said the initiative, promoted as Gold Revolution, would be launched at its Shubh retail outlet showrooms.

Contrary to the general practice of all jewellery stores, Subh outlets will not charge any additional charges like wastage, making charge, value addition charge, etc. REL will sell 22 carat gold jewellery and coins with Hallmark of 100 per cent guaranteed purity.

For example, if a customer buys 10 gms of gold at a price of Rs 1,600 per gm, he actually pays 15 per cent 20 per cent more than the Rs 16,000 jewellery due to various hidden charges. But Subh will charge only 3 per cent or Rs 48 more per gram towards its various costs.

In next 3 years REL plans to open 250 Subh showrooms in various cities in the country, a ten fold jump from 25 at present. This will help the company increase its presence in jewellery retail space which now accounts only for 2 per cent of its revenue. Going by these developments REL is a definitely a stock to watch, in the coming days.

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Jaypee Infratech IPO Review

by Rajesh Narayanan · 4 Comments

Jaypee Infratech has come out with a public issue of 6 crore equity shares in the price band of Rs.102 to Rs.117 per share. The company is engaged in the development of the Yamuna Expressway and related real estate projects which is a 6 lane Expressway between Noida and Agra, with concession period of 36 years and also 1235 acres of land as real estate development.

Details of the Issue:
Issue Open: Apr 29, 2010 - May 04, 2010
Issue Size: Equity Shares of Rs. 10.
Issue Price: Rs. 102 - Rs. 117 Per Equity Share.
Market Lot: 50 Shares.
Listing At: BSE, NSE.

To apply or not to apply?

The Yammuna Expressway is expected to be complete by 2011 and has Toll Collection Rights for the next 36 years. Apart from this the company is involved in Building World Class Real Estate Development spread over of 1,235 Acres.

Some of the positives include ,JP Group’s expertise in executing Large Infrastructure projects and Unique Business Model – Tool Revenues and Real Estate Revenues.

But the valuation is the key question.According, to various brokerages, the valuation of Jaypee Infratech is in the range of Rs 100 to Rs 120. Hence at the lower end of the price band, the IPO seems okay. Otherwise one could wait for better opportunities post listing.

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Debt Calculator

by Rajesh Narayanan · 3 Comments

Have you ever experienced having loans in the bank? Do you have credit cards? Well, it is normal for humans to have a debt. There are times that we are in the hard roads of life and need the help of others especially when it comes to financial problem. Sometimes we are short in money and needed to borrow money from other people or have some credit card account, however, if you don’t keep track with your debt, time will come that you will not be able to pay them and you cannot borrow from them anymore.

Therefore, in order to keep in track with our debt we need something that can help us. There are many solutions that you can find, you can ask a specialist to help you, but this one will cost you much. With the help of debt calculator you can keep yourself with your debt without paying and wasting too much money and besides using debt calculator is very much easy. So, how can debt calculators help you with your debt? As what I have said awhile ago, it is normal to one’s person to have a debt but we need to be very careful with our responsibility just in this case. Borrowing too much is not good so, it is better that you always keep in track with your debt so that it will not grow bigger and you have to control your debt also.

With debt calculator, the very important things that it can help you are that it will help you to budget your money. This calculator will keep you reminded with the balance on your credit card to avoid debt. All you have to do is to input the numbers and the calculator will do the rest of the task for you. It is quite simple isn’t? You don’t have to worry too much and pay attention too much to your credit balance. With this easy way to calculate your debts you can easily learn and secure your loans. With the fast technology that the world has today, this can be very easy.

NB: This is a guest post by Sandy Thomson.

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