EASY & COMPLETE PROCEDURE TO LINK AADHAAR WITH PAN CARD

From 1st July, 2017, it has been compulsory to link your Aadhaar card with PAN card for filing taxes. PAN card is a unique identification card having 10 digits alpha-numeric character which is required to have to pay compulsory taxes. It is compulsory to quote Aadhaar or Enrolment ID of Aadhaar application form to file the return of income and also for creating an application for allotment of PAN.

Following are the few easy procedures you should follow to link your Aadhaar with PAN card:

STEP 1-

At first you shall login to e-Filing portal which will ask you for your user id and password.

ITR1

STEP 2-

You will see different tabs on the top of the page opened after you login. One of them will be, profile setting tab. You have to click on that and the drop down will appear in which there will be an option of link Aadhaar. Click on Link Aadhaar option.

ITR2STEP 3-

A new page will appear which will show your personal details like name, date of birth, etc. you have to verify the details with respect to your Aadhaar card. And if the details are matched, you have to enter your Aadhaar number and then you have click on the ‘link now’ option available there. After this process, a pop-up message will appear on the screen which will show that your Aadhaar-PAN linking is completed successfully.

ITR3

HOW CAN YOU SETTLE YOUR INSURANCE CLAIM IF REJECTED?

Reason behind the rejection of claim

  • Lack of information on the proposal forms

The life insurance customers always make a common mistake that they hire the agents to fill the form on their behalf just because they find the form filling process very time to consume and complicated.

These agents may sometimes fill incorrect or incomplete information which will cause the rejection of your form. So, always fill your form yourself and recheck it after completing.

  • Not revealing (hiding) personal information

The personal information like age, occupation, family history, smoking habits, pre-existing diseases, alcohol consumption, details of other policy you are holding, etc. is vital to fill in the form for the insurance claim, which is used by the insurers to fix the premium. And if there is any mistake or conceal in this information, your form may get rejected.

claim

  • Pre-existing Diseases

If you have any of the pre-existing diseases and you claim for the insurance but do not reveal the fact of your disease in the form. In this case, your claim would get rejected as because it is essential to disclose certain facts in the form.

  • Settle the claims before the policy gets expired

It is essential to pay the premium on time so that your policy would be active. And if you fail to pay the premium, your policy will get expired and your claim would get rejected. So, to avoid the policy lapse, do not miss paying premiums on time.

Ways to settle your claim

 Go to the insurance company to resolve the claim

You can go and meet the Grievance Redressal Officer (GRO) of the insurance company and give him/her the complaint in written along with the required documents. And do not forget to take a written acceptance of the complaint with the date. Your complaint should get settled by the insurance company within 15 days from the filing of the complaint. And if the insurance company or the insurer fails to settle the issue within the mentioned time, you can approach the IRDA (Insurance Regulatory & Development Authority of India) Within the period of 1 year from the complaint filing date.

  • Register your complaint to IRDA

You can register your complaint via email to the IRDA ([email protected]) or you can mail or post your complaints to IRDA head office in Hyderabad. To register the complaint to IRDA, you should clearly specify the insurance holder’s name and address along with the name of the branch or office of the insurer against whom you have to file the complaint. And you have to state all the facts which give rise to register you a complaint. Also, required documents must be attached to the complaint. The nature and extent of the loss caused to the complainant and the relief requested from the Insurance Ombudsman (an official appointed to investigate individuals).

Say a strict no to Guaranteed Life Insurance Plans

The Ombudsman gives his advice or suggestion within one month if parties agree to conciliation; otherwise, an award is passed within three months from the date of receipt of all requirements from a complainant. Then the insurance company has only 30 days to observe the suggestions given by the Ombudsman. And if the complainant is not satisfied with the results, then he/she can go to the consumer forum.

  • IGMS (Integrated Grievance Management System)

Besides all the above solutions, the IRDA has a new system to resolve the issues of the policyholders and stated it as IGMS. The system can be used by the policyholders to register and track their complaint with both the insurer and the IRDA. You just have to follow these simple steps:

  • Go to the IGMS website (igms.irds.gov.in) and create a profile on the name of the policyholder for further registration of complaint.
  • Fill up the asked details about your issue with the insurer.

Then you will receive an email along with IRDA token number which will be used by the IRDA and the Insurance Company to track the complaint. After the confirmation of the process from you, the complaint would go to the insurer’s system as well as the IRDA repository.

After the insurer makes the resolution, if you are not satisfied with that, then your complaint would be sent to the IRDA for a review for a potential violation of Regulations through IGMS.

After this act, there may be a surety for the complete satisfaction from your side and may be all your grievances would get solved.

Au Financiers (India) Limited IPO! Put in or out ?

AU Small Finance Bank Ltd. which was formerly known as AU Financiers Ltd (AUSFB) is a Non-banking Financial Company (NBFC) which was converted into Small Finance Bank. It was established in the year 1996 in Jaipur, Rajasthan. As an NBFC, it was registered with RBI in the year 2000.

It initially served low and middle-income individuals and businesses that have limited or no access to formal banking and finance channels.

The company has created an ideal position with pure asset based financing and its growth story is going to be tremendous. It comes under the list top 10 new small bank licensees and at the 7th position to go in operation as small finance bank.

The company was switched from NBFC to Small Finance Bank (SFB) on 19th April 2017. When the company was NBFC, it operated in 3 business lines i.e. vehicle finance; micro, small and medium enterprises loans; and small and medium enterprises loans.

According to the analysis as on December 31, 2016, the company had 300 branches spread across 10 states and 1 union territory in India, which shows a special presence in the states like Rajasthan, Gujarat, Maharashtra and Madhya Pradesh.

Issue Details

Issue Opens: Jun 28, 2017

Issue Closes: Jun 30, 2017

Issue Size:

  • Offer for sale of 53,422,169 Equity Shares of Rs 10 aggregating up to Rs [.] Crore

Face Value: Rs 10 per Equity Share

Issue Price: Rs 355- Rs 358 per Equity Share

Market Lot: 41 Shares

Minimum Investment: Rs 14,678/-

Minimum Order Quantity: 41 Shares

Leading Managers: HDFC Securities, ICICI Securities, Motilal Oswal Securities and Citigroup Global Markets.

Anchor Investor

The company allotted 1.57 crore shares to 34 anchor investors.

Comapay has raised Rs 563 crore ($87 million) from a bunch of anchor investors including the sovereign wealth funds of Singapore and Kuwait.

GIC Pte Ltd and Kuwait Investment Authority as well as US-based private equity firm East Bridge Capital bought 541,000 shares each at the upper end of the Rs 355-358 price band.

Other foreign investors who took part in the anchor allotment include the Master Trust Bank of Japan, Singapore hedge fund Amansa Holdings and investment funds of Nomura, Wells Fargo and HSBC. As many as 13 domestic mutual funds also bought shares.

AU

Objects of the Issue

  • To achieve the benefits of listing the Equity Shares on the Stock Exchanges and for the Offer for Sale of 53,422,169 Equity Shares.
  • The company expects that listing of the Equity Shares will enhance our visibility and brand and provide liquidity to its existing shareholders.
  • The company is expecting to provide a public market for the Equity Shares in India.
  • The company will not receive any proceeds from the Offer. All proceeds from the Offer will go to each of the Selling Shareholders, in proportion to its portion of the Offered Shares.

Promoters of the Company

  • Sanjay Agarwal
  • Jyoti Agarwal
  • Shakuntala Agarwal
  • Chiranji Lal Agarwal

Financial Details of the Company

Finaancial

  • The revenue of Rs 230.6 Crores is generated by the company for the year ended March, 2012 and for the year ended March, 2016 the revenue generated by the company is Rs 694.3 Crores.
  • Total profit gained by the company for the year ended March, 2012 is Rs 37.2 Crores and the profit of Rs 247.1 Crores is gained by the company for the year ended March, 2016.
  • Its recapitulated basic EPS for the financial year ending March 2016 is Rs 9.34 and the EPS for the past 3 years was Rs 6.94.

CDSL IPO : Most awaited IPO in India

Reasons to invest in this IPO (Positive Points)

  • There is constant increase in the profit of the company which is good sign for the company. In the financial year 2016, the profit generated by the company is 23.5%.
  • Diversified Product Portfolio and Revenue Streams.
  • Customer Centric Organizational Commitment.
  • Significant Presence in Rural and Semi-Urban Markets with Focus on Low and Middle Income Customers.
  • Robust and Comprehensive Credit Assessment and Risk Management Framework.
  • The company had received a license from the RBI to set up Small Finance Bank (SFB). The company is the only NBFC which is selected as an asset finance company to gain the license.
  • Access to Diversified Sources of Funding over the Years.
  • Experienced Management Team and Qualified Operational Personnel.
  • From the past 3 years, the revenue of the company increased by 46% CAGR.

                           Banking Industry in India

The following chart sets forth branches per 100,000 adults in India in 2014

bankReasons not to invest in this IPO (Negative Points)

  • Their inability to successfully transition from an NBFC to an SFB may have an adverse effect on their business, results of operations, financial condition and cash flows.
  • As an SFB, they will be unable to access some of the sources of funds available to them as an NBFC and their inability to replace such sources of funds in an acceptable and timely manner, or at all, may have an adverse effect on their business, results of operations, financial condition and cash flows.
  • Their inability to comply with laws and regulations applicable to an SFB may have an adverse effect on their business, results of operations, financial condition and cash flows.
  • If their customers default in their repayment obligations, their business, results of operations, financial condition and cash flows may be adversely affected.
  • Their operations are concentrated in western India and any adverse developments in this region could have an adverse effect on their business, results of operations, financial condition and cash flows.
  • Any downgrade in their credit ratings could increase their finance costs and adversely affect their business, results of operations, financial condition and cash flows.
  • Their inability to manage interest rate risk may adversely affect their business, results of operations, financial condition and cash flows.
  • They are in the process of upgrading their information technology systems for their SFB operations and any disruptions in such systems, or breach of data, could adversely affect their operations and reputation.
  • They intend to introduce several new products and services as an SFB and they cannot assure you that those products and services will be profitable in the future.
  • They significantly depend on their vehicle finance business and any adverse developments in this sector or in the other industries in which our MSME and SME customers operate could adversely affect their business, results of operations, financial condition and cash flows.
  • Their inability to leverage their existing customer base, expand their branch network and attract new customers for their SFB operations may adversely affect their business, results of operations, financial condition and cash flows.
  • Their operations involve handling significant amounts of cash, making them, susceptible to loss or misappropriation or fraud by their employees.
  • Recent global economic conditions have been unprecedented and challenging and continue to affect the Indian market, which may adversely affect their business, financial condition, results of operations and prospects.
  • There are outstanding proceedings involving their Company, and certain of their Promoters and the Directors and any adverse outcome in any of these proceedings may adversely affect their profitability and reputation and may have an adverse effect on their business, results of operations, financial condition and cash flows.
  • Changing laws, rules and regulations and legal uncertainties, including adverse application of corporate and tax laws, may adversely affect their business, prospects and results of operations.

Conclusion

AU Small Finance Bank placed under RBI’s caution list a day ahead of its IPO.

RBI to monitor the foreign shareholding of the company which is hovering around the permissible limit of 49 percent.

Subscribe for short term ( For listing gain ) only.

Grey market premium

Current Grey market premium is Rs.90/- and Kostak is Rs.700/-

This is the third public issue by a small finance bank in the last 15 months, after Equitas Holdings Ltd and Ujjivan Financial Ltd.

DISCLAIMER

No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here.

 

PURCHASE & SELL OF STOCKS BY FUND MANAGERS IN MAY

The below chart shows the analysis of purchasing and selling of stocks by the fund managers in the month of May. The graph shows the mutual fund preferring financial companies with Kotak Mahindra Bank and HDFC make an appearance as a noticeable and outstanding purchase of stocks. Stock holdings among strong momentum in the stock markets are considerably whipped by mutual funds to get sturdy inflows into the schemes.

BUY

Money managers tend to give themselves upon bargain-hunting of pharma stocks, purchasing into worktop like Sun Pharma, Dr Reddy’s and Aurobindo Pharma.

Equity MFs’ Cash Component reaches 6.5% as the Shares Floats at Maximum Hike

Further, the stocks which seem to be profitable by the fund managers are Indian Oil, Rural Electrification Corporation (REC), Godrej Consumer, Maruti Suzuki and Hindustan Unilever.

SELL

This year, the sell of most of these stocks are more in compared with the previous year selling. At the end of May, the equity mutual fund has hike in its cash level by 6.46% and made a profit of Rs 36,300 crore, which is a quite noticeable amount.

Fund managers make contrarian bets on pharma stocks

Even though the pharmaceutical sector was not good enough to provide satisfactory returns in May, many of the fund managers show their belief in the Pharma stocks by making investments in them overtaking even the leading stocks in the section.

Among the pharmaceutical industries, Sun Pharma appears to be their most preferable choice and EMFs (Equity mutual funds) invested up to 15 million shares of the firm to their portfolios. Their net investment in the Sun Pharma was close to Rs.745 Crores, even though the price of the stock fell to less than Rs.500 from Rs.600 in few days.

PHARMA1Many other names of Pharma industries are on this list as MFs also made investments in them. Dr. Reddy’s Lab, Cipla, and Aurobindo Pharma are the names that saw MF buying. Although, no pharma stock mentioned in the list of stocks in exception of Lupin have seen maximal selling in May.

Fund managers are having an observation in the pharma sectors for more than six months to one year now. Although, headwinds such as the grown momentum of USFDA (United States Food and Drug Administration) consideration and worries over pricing as a result of the new administration in the US have remained them in watchful waiting.

PHARMA STOCKS

The co-CIO (Co- Chief Investment Officer), Birla Sun life Mutual Fund said that Pharma companies are those segments we’re looking at. We have the options of selected stocks that may provide better results at present levels.

Many other fund managers have almost the same point of view on the pharma sector. ICICI Prudential Mutual Fund and UTI Mutual Fund are the mutual fund houses that chose the Sun pharma stock. They purchased the Sun pharma stock the most. ICICI Prudential Mutual Fund purchased Sun Pharma stocks of price Rs.764 Crores while UTI Mutual Fund bought the same stocks worth Rs.82 Crore.

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There are three schemes of ICICI Prudential MF- Value Discovery, Focused Bluechip and Balanced Fund. These are the three names having the highest investment in Sun Pharma stocks. Value Discovery scheme is positive towards Sun Pharma as the scheme has made near about 8% of its collection, or Rs.1385 Crores into its table.

“Our risk on Aurobindo Pharma and Sun Pharma in the month of May have emerged as more than satisfactory results. We may invest more in pharma sectors as these are turning into value picks from a 2 to the 3-year viewpoint”, said an investment officer of a fund house.

HDFC Mutual Fund has also invested in Aurobindo Pharma. Both the schemes run by HDFC MF which are HDFC Equity and HDFC Top 200 are in the mid of the top schemes which made a high amount of investments in Aurobindo Pharma. Birla Sun Life Frontline Equity has also invested 1.4% of its assets, or Rs.243 Crores in Aurobindo Pharma.

Moreover, the Pharma sector has lost its performance track record over the last 2 years. Before 2016, pharma segment was amid the top-performing. Even today, from a 3 to 5 years viewpoint pharma funds have given a return of 12 to 19 % annually. Although, over the last one year, the performance of pharma funds has fallen with category average returns sliding to minus 4%.

DISCLAIMER

No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here.

India’s Market cap is likely to strike $4 trillion in 6-8 years

Although, Indian equities may have generated negative returns in 2015 losing up to 5% with Sensex and Nifty, the longer term prospects for the Indian market seems to be brighter in the upcoming years.

According to some experts, India’s equity market capitalization is very close to reach $3 trillion by the end of 2020. The Indian market which entered the $2 trillion market capitalization club recently in the previous month will very soon is going to enter the $4 trillion club in the upcoming 6-8 years.

For the knowledge, the Indian market’s present market capitalization is $2 trillion which is more than many big countries like Brazil, Korea, Taiwan, Indonesia and also Russia.

SENSEX2

The market reported a record hike in the recent 5 months courtesy rectified by the Narendra Modi- led Indian government, the supposition of higher earnings for the country recover in the growth of the economy and a steady political environment.

The S&P BSE Sensex rose more than double in the previous 10 years, on the other hand, the market cap rose over 250 percentage in the exact same time period. Currently, India’s share in the market capitalization of the world is at 2.6% which is 0.2% more than its average of 2.4% in the past years. Considering a recent report, the market capitalization of the world has increased 17.6% within a year. On the other side, the market cap of India has increased 33% within a year.

 

market cap

Source : MOSF,Industry

Market capitalization is said to be the function of growth in earnings, liquidity and rate of interest. In FY17, India has recorded better growth in earnings than expected, which combined with an unparalleled inflow of domestic liquidity has forced market cap of India share of the market cap of the world.

In the FY17, Indian market rose approximately 17% followed by MSCI EM which has also raised over 17%, the growth rate of Korean market is 16%, Taiwan market is up by 9% and Indonesian market rose nearly 8% in the same time period.

Buffett’s Metrics Says, ‘Have No Fear’ to Sensex

Mentioned countries were the top performers among prime global markets in local currency terms. Among prime markets, Russia which has recorded 18% growth has provided negative returns.

The United States is currently holding the top position in the names of the largest market cap in the world with $26.9 trillion, followed by China having a market cap of $6.7 trillion and Japan having a market cap of $5.6 trillion.

Analysts and Experts are expecting 10 to 12% CAGR growth in the Indian market cap which is approx. $4-5 trillion in the next 6 to 8 years which will bring India above UK market cap which stands at $3.5 trillion.

 

GTPL Hathway Ltd. IPO Apply Or Avoid ?

GTPL Hathway Ltd is a Gujarat based company which is considered to be the most significant regional Multi System Operators (MSO) in India and was established in the year 2006. The main motive of the business is to offer television and broadband services throughout India.

GTPL Hathway is at the first position in providing cable services in Gujarat with a market share of 67% of cable television subscribers in 2015. The company gives its digital cable television services in 169 towns across India having both digital and analog modes of re-transmission.

Details of the Issue

Issue Opens: Jun 21, 2017

Issue Closes: Jun 23, 2017

Issue Size:

  • Fresh issue of [.] Equity Shares of Rs 10 aggregating up to Rs 240.00 Crore
  • Offer for Sale of Rs 14,400,000 Equity Shares of Rs 10 aggregating up to Rs [.] Crore
  • Face Value: Rs 10 per Equity Share
  • Issue Price: Rs 167- Rs 170 per Equity Share
  • Market lot: 88 Shares
  • Leading Managers: JN Financials, BNP Paribas, Motilal Oswal and Yes Securities
  • Finalisation of Basis of Allotment: On or about June 29, 2017
  • Initiation of refunds: On or about June 30, 2017
  • Credit of Equity Shares to demat accounts: On or about July 03, 2017
  • Listing of the Equity Shares on the Stock Exchanges: On or about July 04, 2017

Anchor Investors :

GTPL Hathway Limited  has finalized the allocation of 8,555,294 Equity Shares at Rs. 170 per Equity Share (upper end of the Price Band) aggregating to Rs. 145.43 crores to anchor investors.

Anchor investors include: Acacia Banyan Partners – 30.94%; Government Pension Fund Global – 18.56%; BNP Paribas Equity Fund – 5.03%; BNP Paribas Long Term Equity Fund –  2.92%; BNP Paribas MidCap Fund – 5.85%; BNP Paribas Dividend Yield Fund – 2.34%; BNP Paribas Balanced Fund – 1.05%; HTCL-HDFC Prudence Fund – 15.13%; DB International Asia Limited – 10.62%; Vittoria Fund SR LP – Asia Portfolio – 7.56%.

GTPLObject of the Issue

  • The Offer for Sale

The company will not receive any proceeds from the Offer for Sale by the Selling Shareholders and the proceeds received from the Offer for Sale will not form part of the Net Proceeds. The Selling Shareholders will be entitled to their respective proportion of proceeds from the Offer for Sale after deducting their proportionate offer related expenses.

  • The Fresh Issue

The company proposes to utilize the funds which are being raised through the Fresh Issue, approximately Rs. 3,000.00 million, after deducting the Offer related expenses to the extent payable by the company towards funding the following objects:

  • Repayment/pre-payment, in full or part, of certain borrowings
  • General corporate purposes

Promoters of the Company

  • Aniruddhasinhji Jadeja
  • Kanaksinh Rana
  • Gujarat Digi-Com Private Ltd
  • Hathway Cable and Datacom Ltd

Buffett’s Metrics Says, ‘Have No Fear’ to Sensex

Financial Details

  • The total revenue generated by the company is Rs 5,288 Crores for the year ended March 2014 and Rs 7,462 Crores for the year ended March 2016. The revenue of Rs 6,634 Crores is earned by the company for 9 months ended December 2016.
  • The loss of Rs 84 Crores was suffered by the company for the year ended March 2014 and profit of Rs 46 Crores for the year ended March 2017. It gains a profit of Rs 163 Crores.
  • Its recapitulated basic EPS for Financial year ending March 2016 is Rs 8.09 and the same from the past three years was Rs 5.93.

balance sheet

Reasons to Invest in this IPO (Positive Points)

  • It is one of the leading regional MSOs with significant market share in Gujarat and Kolkata.
  • It has a high-quality infrastructure network.
  • It has a balanced local and regional content offering to attract and retain subscribers.
  • It has strong traction on digitization.
  • It has successful track record of identifying, acquiring and integrating MSOs, ISOs and LCOs.
  • The company has experienced promoters and management team with proven execution track record backed by Hathway.
  • In the past 3 years, the revenue of the company grew by 18%.

It increases its focus on high-quality digital offerings and the provision of regional content.

DTH VS CABLE1Reasons not to invest in this IPO (Negative Points)

  • There are various proceedings involving their Company, Directors, Subsidiaries, Promoters and Group Companies, which if determined against them, may adversely affect their business.
  • They are required to obtain certain approvals, licenses, registrations and permissions for operating their business, and the failure to obtain them in a timely manner, or at all, could adversely affect their business, results of operations and financial condition.
  • They may be unable to keep pace with changes in technology and existing and future technological developments may allow new competitors and alternative competitive platforms to emerge.
  • They may be unsuccessful in implementing new value-added services for their digital cable service subscribers.
  • Their holding company, Hathway is engaged in business activities which compete with their business.
  • Their business model is capital intensive and they may not be able to arrange adequate funds for future capital expansion.
  • The cable television distribution industry is highly competitive, which affects their ability to attract and retain subscribers.
  • Any inability to convert their existing analog cable television subscribers to digital cable services and to attract new digital cable subscribers may adversely affect their business, results of operations and financial condition.

HUDCO IPO Review and Market premium

  • Their expansion and penetration strategies may result in additional risks and uncertainties in their business.
  • Their subscriber base has a high concentration in the state of Gujarat. Their inability to retain and grow their subscriber base in Gujarat may adversely affect their business, results of operations and financial condition.
  • Their margins may decline after they complete digitization due to lowered revenue from activation charges which may adversely affect their business, results of operations and financial condition.
  • They may not be able to successfully maintain the brand image of their existing offerings or effectively build the brand image of their new offerings, bundled offerings and brand extensions, which may affect their performance.
  • Their cable television and internet broadband services are subject to extensive governmental regulation, which could adversely affect their business by increasing their expenses or limiting their operational flexibility.
  • Government regulation of foreign ownership of Indian securities may adversely affect the price of the Equity Shares.
  • Changes in laws, rules, and regulations and legal uncertainties, including the adverse application of corporate and tax law and the introduction of a national GST regime could adversely affect their business, results of operations and financial condition.

Comparison with peers

peers

CHART

Grey market premium

Currently no trade in grey market. ( There are some reports about Rs. 25/35 GMP but it has no substance)

Conclusion

Only high-risk investors may consider as Issue is highly priced.

DISCLAIMER

No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here.

CDSL IPO : Most awaited IPO in India

CDSL is the foremost securities depository in India by incremental growth of Beneficial Owner accounts over the last three Fiscals and by the total number of registered Depository Participants, as at the end of Fiscal 2016, according to the CRISIL report. CDSL is the second largest depository in India.

They offer various services, such as account opening, dematerialization, processing delivery and receipt instructions, account statement, re-materialization, pledging, nomination, transmission of securities, change in address, bank account details and SMS services for depository participants.

They provide other online services, such as e-voting, e-locker, and national academy depository, electronic access to security information, and electronic access to security information and execution of the secured transaction, drafting and preparation of wills for succession, and mobile application and transactions using secured texting. It serves investors through intermediaries, such as depository participants, issuer companies, registrar and transfer agents, beneficial owners, and clearing members.

cdsl ipo

Issue Details

Issue opens– Jun 19, 2017

Issue closes– Jun 21, 2017

Issue size

  • 35,167,208 Equity Shares of Rs 10 aggregating up to Rs 523.99 Crores
  • Offer for sale of Rs 35,167,208 Equity shares of Rs 10 per Equity share
  • Face Value– Rs 10 per Equity share
  • Issue Price– Rs 145- Rs 149 per Equity share
  • Market Lot– 100 share
  • Minimum Order Quantity– 100 Shares

Objects of the issue

  • To achieve the benefits of listing the Equity Shares on NSE and for the sale of Equity Shares by the Selling Shareholders.
  • Listing of the Equity Shares will enhance its visibility and brand image and provide liquidity to its existing Shareholders.

CDSL

Buffett’s Metrics Says, ‘Have No Fear’ to Sensex

Top 10 shareholder

share holder

Financial Details

  • Revenue of Rs 1454 Crores is generated by the company in the year ended March 2015 and in the year ended March 2017 it generated Rs 1868 Crores.
  • The company gained a profit of Rs 574 Crores in the year end March 2015 and Rs 865 Crores in the year end March 2017
  • Its recapitulated basic EPS for the Financial year ending March 2017 is Rs 8.21 and last 3 years EPS was Rs 7.93.

Comparison of CDSL and NSDL

The depository system in India was a Rs 2.4 billion industry end FY2016. Comprising CDSL and NSDL, It has recorded a CAGR of 12% over the last three financial years. Established in 1996, NSDL was the first and largest depository in India. CDSL followed three years later after the implementation of compulsory trading in dematerialized securities for all investors in January 1999.

Market share by revenues is 43% and that of NSDL 57%. The growth in market share by demat accounts is growing (CAGR of 9% over last three fiscals) is faster compared with NSDL’s 5% growth in market share. The market share grew from 39% in FY2011 to 44% in FY2017. Consequently, the market share of incremental demat accounts grew from 46% in FY2012 to 60% in FY2017.

demat

Reasons not to invest in this IPO (Negative points)

  • There is outstanding litigations against the company,its promoter,its group companies and its Directors which is determined adversely could effect company buisness and results of operations.
  • Their securities depository business competes closely with their competitor for DPs, investor accounts and a number of instruments on their systems.
  • Their inability to effectively manage their growing DP network or any disruptions in the supply or distribution infrastructure may have an adverse effect on their business, results of operations and financial condition.
  • Any interruptions or malfunctions in the operation of their IT systems could damage their reputation and cause a loss of the business.
  • If there is a shift in consumer preferences away from investing and trading in securities to other products and services, it could significantly reduce demand for their services and adversely affect their business, financial condition and results of operations.
  • Fraud due to the unauthorised transfer of securities or service deficiency could result in losses. Further, if account data disseminated by them contains undetected errors, this could have a material adverse effect on their business, financial condition or results of operations.

BSE Limited IPO- Positive & Negative factors related to investment

  • Broad market trends, economic and market conditions and other factors beyond their control could significantly reduce demand for their services and harm their business, financial condition and results of operations.
  • They intend to continue offering new products, enter into or increase their presence in new markets and attract new clients, which will involve risks. They may not be successful in offering new products or identifying opportunities.
  • There can be no assurance that they will be successful in implementing their current and future strategic plans.
  • The Government of India has recently implemented certain measures due to which certain currency denominations have ceased to be legal tender. This may affect the Indian economy and their business, results of operations, financial condition, and prospects.
  • They may not be able to retain their Key Management Personnel that they rely on, which could impair their ability to reach their strategic goals and could have a material adverse effect on their reputation, business, financial condition and results of operations.

Reasons to invest in this IPO (Positive points)

 From the past 3 years, the revenue of the company has grown 13%.

  • The company is focusing on the development of New DPs relationships and purchasing the existing DP networks of the company.
  • The company earned the profit of 46% in the financial year 2017 which is quite good for them.
  • They continue to invest and improve company IT infrastructure and systems leading to Amplification of operational efficiency and standard of service.
  • It is the subsidiary of BSE, which always proves to be a profitable and a good brand.
  • They always introduce new offerings and grow up their recently started business to the new level.
  • High economies of scale leading to steady growth in profitability.
  • It is considered to be the India’s leading securities depository with the highest share of incremental growth of BO accounts.
  • The company is led by an experienced senior management team.
  • The company provides Convenient and dependable depository services at competitive prices for a wide range of securities.

Valuation

Consolidated sales were up 19% to Rs 146 crore and the operating profit margins increased from 52% to 54.4%, resulting in a 24% spurt in operating profit to Rs 79.42 crore in FY2017. Other income improved 6% to Rs 40.85 crore, while depreciation declined 12% to Rs 3.71 crore.

Consolidated profit before tax went up 19% to Rs 116.56 crore. FY2017 did not have exceptional gains of Rs 33.10 crore in FY2016. After providing total tax of Rs 29.98 crore, consolidated profit after tax stood at Rs 86.59 crore.

The EPS for FY2017 works out to Rs 8.3. The scrip is offered at P/E multiple of around 17.5 times FY2017 EPS at the lower price band of Rs 145 per share and 18 times FY2017 EPS at the higher price band of Rs 149 per share. There are no listed peers in this business.

Book value (BV) was Rs 51.04 end March 2017. P/BV works out to 2.8 times at the lower price band and 2.9 times at the upper price band.

Conclusion : Investors may consider investment for short to long term.

Grey Market Trend

Current Grey market premium is Rs. 90/-

 

DISCLAIMER

No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here.

 

Buffett’s Metrics Says, ‘Have No Fear’ to Sensex

The fast-growing stock market of India is now approximately equal to the economy of India.

Numerous records are seen this year by the benchmark index, it is still comparatively cheap by the sage of Omaha’s favorite valuation indicator which is market capitalization to GDP (Gross Domestic Product). By that scale, the evaluation of S&P BSE Sensex is still more than 40 % less of its high point reached just before the global financial crisis.

MCAP TO GDP

source : Bloomberg

“The proportion is far below in comparison to 2007 peak period”, says Ramdeo during an interview in Mumbai and “we are definitely not over the top”, he adds. He has been continuously attending the annual meetings of Warren Buffett for the last two decades.

Nearly 17% gain acquired by Sensex this year simply means that when evaluating by price to earnings, India is currently one of the most expensive markets across the Asia. This recovery has pushed the value of Indian equity funds to $2 trillion approx. or one can say, 95% of the GDP of the India. In past 2007, it aroused to as high as 170%, and in 2010, it rose to 122% high.

warren-buffett

In an article published on December 2001 in the Fortune magazine, Warren Buffett illustrated the ratio as “probably the best single measure of where valuations stand at any specific time period.” Warren says stocks are more costly if the metric stands more than 100% of GDP, on the other side, traders say that readings of 75-90 % exhibit real value. In the case of India, while equities are streaming, so is the economy of the country also; it is stretched near 7.1 percent in the year ended March.

Both Foreign and Domestic funds have invested a combined $13.5 billion in Indian shares this year after a conclusive victory of the political party of the Prime Minister Narendra Modi in the state polls in the month of March. Also, Sensex is the best performer this year across the Asia.

Success story from 1 Lakh to 1 Crore in 22 years

Ramdeo Agrawal has experienced many rise and fall period in over three decades while making an investment in Indian equities. He says, ‘the market will face a drop before continuing its economic rise in the value. A minimal percent of 5 to 15% improvement can always happen without any specific reason but it will happen when everyone is least expecting it, he adds.

The question arises, why Warren has not invested in Indian companies yet if his favorite metric is not highlighting a warning signal ?

In last month, after his annual meeting in Omaha, Warren said in an interview that if there was a good target he’d ‘be there tomorrow’. The business would require being large and for sale.

Ramdeo Agrawal said, “He says ‘my gun is loaded to hunt the elephants’. He is sitting on approximately $ 80 billion. India has a numerous range of companies that suits his investment basis but the matter is with the amount of size to make available for the large investments of him.

ERIS Lifesciences LTD IPO Subscribe or Not ?

ERIS is an Ahmedabad based pharmaceuticals firm which was established in the year 2007. The company has occupied research, development, manufacturing, and selling of select therapeutic areas within the chronic and acute categories of the Indian Pharmaceutical Market.

For example, cardiovascular, anti-diabetics, vitamins, gastroenterology and anti-invectives’. The total contribution made by the chronic category of the Indian Pharmaceutical Market is 65.6% of Eris Lifesciences total revenue.

The company raised Rs 779 crore from 21 anchor investors ahead of the issue.

It is categorized as the 20th best company out of 377 other domestic and multinational companies present in the chronic category of the Indian Pharmaceutical Market in terms of revenues for fiscal 2017 and the fastest growing companies.

The company owns and runs a manufacturing means in Guwahati, Assam. They contract out the manufacturing of certain of its products to 20 manufacturers. It contains a strong team based on sales of 1,310 representatives in the marketing sector.

Issue Details

Issue Opens: Jun 16, 2017

Issue Closes: Jun 20, 2017

Issue Size:

  • 28,875,000 Equity shares of Rs 1 aggregating up to Rs 1,741.16 Crores
  • Offer for sale of 28,875,000 Equity shares of Rs 1 aggregating up to Rs [.] Crore

Face Value: Rs 1 per Equity Share

Issue Price: Rs 600- Rs 603 per Equity Share

Market lot: 24 Shares

Minimum Investment: Rs 14,472 on lower price band

Minimum Order Quantity: 24 Shares

Leading Managers: Axis Capital

Eris Lifesciences is offering discount of ₹60 per share to eligible employees.

Promoters of the Company

  • Amit Indubhushan Bakshi
  • Himanshu Jayantbhai Shah
  • Inderjeet Singh Negi
  • Rajendra Kumar Rambhai Patel
  • Kaushal Kamlesh Shah

Object of the Issue

  • To achieve the benefits of listing the Equity Shares on the Stock Exchanges.
  • For the sale of up to 28,875,000 Equity Shares by the Selling Shareholders.
  • Equity Shares will enhance the visibility and brand image and provide liquidity to the shareholders.
  • It will provide a public market for the Equity Shares in India.

eric IPOFinancial Details

  • Revenue of Rs 3,930 Crores is initiated by the company for the year ended March 2013 and Rs 7,440 Crores for the year ended March 2017.
Particulars For the year/period ended (In Rs. Millions)
  31-Mar-16 31-Mar-15 31-Mar-14 31-Mar-13 31-Mar-12
Total Assets 3,973.59 3,572.85 2,705.99 1,718.025 1,019.67
Total Revenue 5,970.21 5,455.58 5,088.22 3,930.64 2,739.40
Profit After Tax 1,348.58 892.59 709.12 584.40 370.63
  • It generated a profit of Rs 581 Crores for the year ended March 2013 and the profit of Rs 2,420 Crores for the year ended March 2017.
  • Its recapitulated Basic EPS for the financial year ending March 2017 is Rs 17.6 and EPS for the last 3 years was Rs 13.12.

The global pharma Industry

Global pharma Rank

Acquisitions

The company acquired 40 brands from Amay Pharma in July last year, strengthening its cardiovascular and anti-diabetics therapeutic portfolio. It also bought 75.5 percent stake in Mumbai-based drugmaker Kinedex through a series of transactions in November and December last year.

Eris-Lifesciences-Average-Prescriptions-per-doctor-per-month

Reasons to invest in this IPO (Positive Points)

  • It is considered as one of the fastest growing companies in certain high-growth therapeutic areas with a portfolio of complementary products.
  • It focuses on branded prescription based pharmaceutical products catering to lifestyle related disorders.
  • It has a portfolio of high volume and leading brands.
  • It focuses on metro cities and class 1 towns in India which have a higher incidence of lifestyle disorders and concentration of specialists and super specialists.
  • It has Multi-faceted product selection and engagement model leading to growth in a prescription for their products.
  • It has strong sales, marketing, and distribution capabilities.
  • The company is making more and more profits day by day. Profit of 22% is earned by the company in the year 2016 and suddenly it increased up to 32% in the year 2017.
  • The company is making a strong revenue growth in the past few years. It grew by 17% CAGR in the past 5 years.

Tejas Networks Ltd IPO Review

Reasons not to invest in this IPO (Negative Points)

  • Any disruption in production at, or shutdown of, their manufacturing facility could adversely affect their business, results of operations and financial condition.
  • They rely on certain third-party manufacturers for manufacturing some of their products. In the event, the manufacturing facilities of their third party manufacturers cease to be available to them on terms acceptable to them, or they experience problems with, or interruptions at such facilities, their business, results of operations and financial condition may be adversely affected.
  • Any shortfall in the supply of their raw materials or an increase in their raw material costs, or other input costs, may adversely affect the pricing and supply of their products and have an adverse effect on their business, results of operations and financial condition.
  • Any quality control problems at their manufacturing facility or those of their third party manufacturers may damage their reputation and expose them to litigation or other liabilities, which could adversely affect their results of operations and financial condition.
  • They derive a significant portion of their revenue from the sale of products in certain therapeutic areas and their top mother brand groups account for a significant portion of their total revenue. Their business, results of operations and financial condition may be adversely affected if any of their top mother brand groups or products in their key therapeutic areas do not perform as expected.
  • They rely on their marketing representatives and distributors for the sale and distribution of their products. A decrease in the number of their marketing representatives or termination of their sales arrangements may adversely affect their business, results of operations and financial condition.
  • Their efforts at integrating acquired businesses may not yield timely or effective results, which may affect their financial condition and results of operations.
  • Stricter norms in India for companies doing business in the pharmaceuticals industry could affect their ability to effectively market their products, which may have an adverse effect on their business, results of operations and financial condition.
  • Criminal proceedings have been initiated against their Promoters and any conviction as a result of such proceedings may affect their business, reputation, and results of operations.
  • Reforms in the health care industry and the uncertainty associated with pharmaceutical pricing, reimbursement, and related matters could adversely affect the pricing and demand for their products.
  • Any reduction in or termination of tax incentives they enjoy may affect our business, results of operations and financial condition.
  • If they do not successfully commercialize their products under development, or if the products that they commercialize do not perform as expected, then their business, results of operations and financial condition may be adversely affected.
  • They may not be able to implement their business strategies or sustain and manage their growth, which may adversely affect their business, results of operations and financial condition.
  • If any of their products cause, or are perceived to cause, severe side effects, their reputation, revenues, and profitability could be adversely affected.
  • If they inadvertently infringe on the intellectual property rights of others, their business and results of operations may be adversely affected.

Conclusion

Companies  strong financial with zero debt status makes it a strong candidate for investment.

Current Grey Market Pemium is Rs. 62/-  to  63/- and Kostak is Rs.300/-

DISCLAIMER

No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here.