Punjab and Sind Bank, a PSU Bank, is coming out with an IPO of 4cr shares of Rs.10 each in the price band of Rs.113- Rs.120. The main objective of the issue is to augment capital base to meet future capital requirements and other general corporate purposes.PSB is a mid-sized bank with a network of 920 branches, serving over 5m customers.
The bank has over 100 years of banking experience and established relationships with customers, including the Central and State Governments and public sector enterprises and their presence is predominantly in Punjab and other north Indian states.
The revenues for FY10 stand at Rs.4326cr and PAT at 506cr , resulting in an EPs of Rs.27. The book value of the bank is at Rs.105, while the most of the mid-cap PSU banks are quoting between 1-1.5 times book value, the pricing of the issue seems okay. Medium to Long term investors can go for this issue.
Details of the issue:
Issue Open: Dec 13, 2010 - Dec 16, 2010.
Face Value: Rs. 10 Per Equity Share.
Issue Price: Rs. 113 - Rs. 120 Per Equity Share.(5 % discount offered to retail investors)
Market Lot: 50 Shares.
Listing at BSE and NSE.
Archive for December 2010
Despite falling last week on the heels of a poor jobs report—United States unemployment rose to 9.6% and nonfarm payrolls did not rise as highly as forecasted—the U.S. dollar began to firm up against both the euro and the yen. Federal Reserve Bank Chairman Ben Bernanke announced in an interview on 60 Minutes that the latest quantitative easing project might go beyond the original $600 billion projection. These factors suggest, then, that even with this short-term gain, the U.S. dollar will continue to weaken, thus creating uncertainty and skittishness on the part of traders as the market finds its way. Long-term positions, then, could be favorable for those trading against the dollar, though this will be a tough bet.
As euro zone finance ministers struggled to protect the euro from the U.S. dollar, Japanese exporters had begun to sell the euro so that they could buy the yen while it remained above 111.000. This happened after the U.S. dollar gained on the yen to reach 82.85 yen over 82.58 yen last week. Likewise, the euro fell on the morning of the 6th of December to 1.3363 U.S. dollars, a slight drop from 1.341 of last week. Only time will tell how these pairs will shift throughout the week, given the upcoming talks regarding Ireland's aid package woes, as well as whether or not the European Union will revamp its budget rules.
So what is the sensible move for early December? Although it's a bit stingy right now, the market could favor the euro after the Irish budget passes and the European Union's aid package goes through for Ireland, though euro investor confidence will slow after that, based on the recent Sentix report that dropped noticeably after a nice rise in November.
This drop in the confidence index could push EUR/USD to a short-term resistance around last Friday's high of 1.3438 or thereabouts, in which case traders might consider selling for a tidy turn around if they can afford it. The recent sharp downturn happened quickly, however, so there's the possibility that corrections might occur in the next few days, so adjust your stop-loss accordingly so you don't get caught out in the open and unprepared.
Those of you following the EUR/USD trends, the job situation in the United States, and Bernanke's quantitative easement plan might consider going on to further do some in-depth research on this matter. Either way, it's definitely an interesting time for the U.S. dollar, the euro, and the yen, which will make for some exciting trading these next few months.
By-line:
This guest post is contributed by Barbara Jolie, who writes on the topics of online classes. She welcomes your comments at her email Id: barbara.jolie876@gmail.com.
As euro zone finance ministers struggled to protect the euro from the U.S. dollar, Japanese exporters had begun to sell the euro so that they could buy the yen while it remained above 111.000. This happened after the U.S. dollar gained on the yen to reach 82.85 yen over 82.58 yen last week. Likewise, the euro fell on the morning of the 6th of December to 1.3363 U.S. dollars, a slight drop from 1.341 of last week. Only time will tell how these pairs will shift throughout the week, given the upcoming talks regarding Ireland's aid package woes, as well as whether or not the European Union will revamp its budget rules.
So what is the sensible move for early December? Although it's a bit stingy right now, the market could favor the euro after the Irish budget passes and the European Union's aid package goes through for Ireland, though euro investor confidence will slow after that, based on the recent Sentix report that dropped noticeably after a nice rise in November.
This drop in the confidence index could push EUR/USD to a short-term resistance around last Friday's high of 1.3438 or thereabouts, in which case traders might consider selling for a tidy turn around if they can afford it. The recent sharp downturn happened quickly, however, so there's the possibility that corrections might occur in the next few days, so adjust your stop-loss accordingly so you don't get caught out in the open and unprepared.
Those of you following the EUR/USD trends, the job situation in the United States, and Bernanke's quantitative easement plan might consider going on to further do some in-depth research on this matter. Either way, it's definitely an interesting time for the U.S. dollar, the euro, and the yen, which will make for some exciting trading these next few months.
By-line:
This guest post is contributed by Barbara Jolie, who writes on the topics of online classes. She welcomes your comments at her email Id: barbara.jolie876@gmail.com.
A2Z Maintenance & Engineering Services is coming out with an IPO of Rs.10 each in the price band of Rs.400-Rs.410. The company is an engineering, procurement and construction (EPC) company providing services to the power transmission and distribution sector. The company is also involved in other businesses like Renewable Energy Generation business and Waste management services. Other businesses include developing information technology solutions for power utilities business and providing facility management services.
The main objective of the issue is for Investment in biomass-based power cogeneration projects in the States of Punjab and Rajasthan and working capital requirements.
Issue Details:
Issue Open: Dec 08, 2010 - Dec 10, 2010.
Issue Size: Equity Shares of Rs. 10.
Issue Size: Rs. 675.00 Crore.
Issue Price: Rs. 400 - Rs. 410 Per Equity Share
Market Lot: 15 Shares.
Listing at NSE and BSE.
Fundamental Details:
The company has the following principal competitive strengths:
1.Ability to identify new business opportunities and scale businesses in high growth sectors.
2.Proven project execution capabilities and demonstrated track record.
3.In-house engineering capabilities and strong quality management systems.
4.Qualified and experienced management and motivated employee base.
For the year 2010, the company's EPS stands at Rs.18 and some of the peer group companies like ABB, L&T, KEC trade anywhere in the wide range of 15 to 30 times. The offer price of Rs.400-410 offers good opportunity for long term investors to invest in a well diversified company which is growing at a healthy rate of 30%.
The main objective of the issue is for Investment in biomass-based power cogeneration projects in the States of Punjab and Rajasthan and working capital requirements.
Issue Details:
Issue Open: Dec 08, 2010 - Dec 10, 2010.
Issue Size: Equity Shares of Rs. 10.
Issue Size: Rs. 675.00 Crore.
Issue Price: Rs. 400 - Rs. 410 Per Equity Share
Market Lot: 15 Shares.
Listing at NSE and BSE.
Fundamental Details:
The company has the following principal competitive strengths:
1.Ability to identify new business opportunities and scale businesses in high growth sectors.
2.Proven project execution capabilities and demonstrated track record.
3.In-house engineering capabilities and strong quality management systems.
4.Qualified and experienced management and motivated employee base.
For the year 2010, the company's EPS stands at Rs.18 and some of the peer group companies like ABB, L&T, KEC trade anywhere in the wide range of 15 to 30 times. The offer price of Rs.400-410 offers good opportunity for long term investors to invest in a well diversified company which is growing at a healthy rate of 30%.
Currently, Indian Capital Markets swinging to the tunes of Global markets & Scams and the Sensex is trading between 19k and 20k, after hitting a 3 year high of 21k a month ago. What does this all mean to an individual investor and what should he do at this point of time - buy, sell or hold?
Before we come to any conclusions, let us check out some of recent happenings in and around us. Recently markets have been hit with many scams, some of them directly impacting the markets, like the housing loans and Global events like European crisis, Korean shoot outs and other similar events. These events are causing substantial swings in the markets and the much talked about US Fed’s QE2 program is not having much impact, either.
Currently Sensex at 20k, trading at 17.1 x FY11E EPS and 14.6X FY12E EPS, which is at fair valuations. The strong FII inflows and strong earnings growth are providing support to the Indian markets' valuations at 15-18 x FY12E EPS, above its 12-15x historical range, which would mean the Sensex in the range of 15-16k.The P/E expansion in multiples could be led by (1) continued strong FII inflows, (2) positive macro-economic outlook and (3) strong earnings growth, which could lead the markets higher.
To sum up, there is no doubt that the markets are at fair valuations, but the factors mentioned above could take the markets further up. Hence, existing investors could hold and ride the wave and anyone who wants to enter now, can participate in the current rally by taking the SIP method of investing in mutual funds.New investments and big ticket investments could be made only when sensex is available around historical range mentioned above.
Before we come to any conclusions, let us check out some of recent happenings in and around us. Recently markets have been hit with many scams, some of them directly impacting the markets, like the housing loans and Global events like European crisis, Korean shoot outs and other similar events. These events are causing substantial swings in the markets and the much talked about US Fed’s QE2 program is not having much impact, either.
Currently Sensex at 20k, trading at 17.1 x FY11E EPS and 14.6X FY12E EPS, which is at fair valuations. The strong FII inflows and strong earnings growth are providing support to the Indian markets' valuations at 15-18 x FY12E EPS, above its 12-15x historical range, which would mean the Sensex in the range of 15-16k.The P/E expansion in multiples could be led by (1) continued strong FII inflows, (2) positive macro-economic outlook and (3) strong earnings growth, which could lead the markets higher.
To sum up, there is no doubt that the markets are at fair valuations, but the factors mentioned above could take the markets further up. Hence, existing investors could hold and ride the wave and anyone who wants to enter now, can participate in the current rally by taking the SIP method of investing in mutual funds.New investments and big ticket investments could be made only when sensex is available around historical range mentioned above.
After all investing is not that easy, isn't it?
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