Initial public offering of country's largest commodity exchange MCX received tremendous response from all kind of investors and was subscribed 4.5 times on second day, as per the NSE website. The issue opened for subscription on Wednesday and will close on Friday.
It received bids for 2.46 crore equity shares as against issue size of 55 lakh equity shares (excluding anchor book, which was subscribed for Rs 95.6 crore worth of shares on Tuesday).
Response has been very strong from retail investors. Their reserved portion was subscribed nearly seven times.
Qualified institutional investors and non institutional investors' book got oversubscribed 3.68 times and 1.88 times, respectively.
World's fifth largest commodity exchange offers 64.27 lakh equity shares through this public offer, diluting 12.6% stake.
The issue consists of an offer for sale by Financial Technologies (India) Limited, State Bank of India, GLG Financials Fund, Alexandra Mauritius Limited, Corporation Bank, ICICI Lombard General Insurance Company Limited and Bank of Baroda. So the company will not get any money through this IPO.
The book running lead managers for the issue are Edelweiss Financial Services Limited, Citigroup Global Markets India Private Limited and Morgan Stanley India Company Private Limited.
Thursday, February 23, 2012
Tuesday, February 21, 2012
Media sector update
Advertisement and subscription are the key revenue streams for media companies.
It seems that Indian broadcasters are well positioned to benefit from mandatory digitization. This is expected to increase broadcasters’ digital subscriber base by around three times over the next three – four years.
Advertisement revenue is also expected to recover in FY13, due to interest rate cut leading to strong corporate revenue growth.
Cash generating broadcasters are expected to benefit from digitization and recovery in advertisement spends.
Among them, Sun TV is expected to benefit substantially in the long term and the stock is our top pick.
Zee Entertainment is also a beneficiary and ‘buy’ call on the stock is retained.
Dish TV is another potential beneficiary and the stock has been upgraded to ‘hold’ from the earlier ‘reduce’ recommendation.
Positive catalysts for the sector could be strong execution of digitization and the increase in ARPU (average revenue per user). Negatives/ risks could be continued weakness in advertisement revenue and delays in implementing digitization.
It seems that Indian broadcasters are well positioned to benefit from mandatory digitization. This is expected to increase broadcasters’ digital subscriber base by around three times over the next three – four years.
Advertisement revenue is also expected to recover in FY13, due to interest rate cut leading to strong corporate revenue growth.
Cash generating broadcasters are expected to benefit from digitization and recovery in advertisement spends.
Among them, Sun TV is expected to benefit substantially in the long term and the stock is our top pick.
Zee Entertainment is also a beneficiary and ‘buy’ call on the stock is retained.
Dish TV is another potential beneficiary and the stock has been upgraded to ‘hold’ from the earlier ‘reduce’ recommendation.
Positive catalysts for the sector could be strong execution of digitization and the increase in ARPU (average revenue per user). Negatives/ risks could be continued weakness in advertisement revenue and delays in implementing digitization.
Tuesday, February 14, 2012
The return of Risk Assets
Risk assets rally as monetary expansion continues :
Risk assets rallied as both the ECB and the US Federal Reserve committed to continued monetary expansion in a bid to stave off another recession.
The ECB launched the Long Term Refinancing Operation of €490 bn to help banks met their funding needs and the US Federal Reserve extended it’s commitment to near Zero interest rates to mid 2014 from mid 2013 previously.
India: One of the best performing market this year!:
From being the worst performing market in CY11, India is the best performing market in Jan 2012, up 11.2% in Rupee terms and 19.2% in US$ terms on the back of strong FII flows.
Risk assets rallied as both the ECB and the US Federal Reserve committed to continued monetary expansion in a bid to stave off another recession.
The ECB launched the Long Term Refinancing Operation of €490 bn to help banks met their funding needs and the US Federal Reserve extended it’s commitment to near Zero interest rates to mid 2014 from mid 2013 previously.
India: One of the best performing market this year!:
From being the worst performing market in CY11, India is the best performing market in Jan 2012, up 11.2% in Rupee terms and 19.2% in US$ terms on the back of strong FII flows.
Monday, February 6, 2012
Margin Trading Facility
Active traders need instant funding options to cash in on opportunities and to ward of threats. Margin Trading Facility (MTF) is a scheme approved by SEBI, with features similar to a credit card, which can provide instant funding up to 50% for short term trades, be it even for a day at a time. There is absolutely no obligation to borrow and you pay only for what you use, at just 55 paise per day per Rs. 1000. All you need to do is to sign the MTF agreement at your branch and open a separate DP account at a one time cost of just Rs.250.
Once registered you can seek funding by choosing MTF to place the order. You can also request transfer of funds available in MTF account ( cash for withdrawal) to your trading account , anytime. Thus Margin Trading facility also doubles up as an instant Loan against Shares and helps you meet payin obligations resulting from leveraged trades ! Money on click from the trading terminal itself for durations as short as even one day at a time!
While we do not suggest that you borrow, we strongly recommend that you reserve a right to seek funding whenever you need, by registering for MTF. It is your credit card and not a loan.
Once registered you can seek funding by choosing MTF to place the order. You can also request transfer of funds available in MTF account ( cash for withdrawal) to your trading account , anytime. Thus Margin Trading facility also doubles up as an instant Loan against Shares and helps you meet payin obligations resulting from leveraged trades ! Money on click from the trading terminal itself for durations as short as even one day at a time!
While we do not suggest that you borrow, we strongly recommend that you reserve a right to seek funding whenever you need, by registering for MTF. It is your credit card and not a loan.
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