Hi friends
Thanks for visiting my Blog. Through this blog I shall try to estimate on which share investors and Indian Equity Market watchers are betting on. IPO recommendations shall be provided from time to time. Your Valuable comments are also invited. Please do vote and share the knowledge of our markets to all of us.
HDIL has come out with an IPO with a price band of Rs.430 at the lower end and Rs.500 at the higher end. The issue will open tomorrow, 28th June 2007 and end on 3rd July 2007. It is involved in the real estate business. It is a fundamentally good company with a good land reserve and making profits. But experts are of the view that the price band is very expensive and those who still wish to invest must do so at the lower price band of Rs.430. All those who have applied for Spice Comm. IPO may cheer, as it has got over subscribed by 25 times! But the response from retail investors was week. It is proposed to be listed on the BSE.
BEML which is a listed company and trading at Rs.1,170 today, is coming out with a follow on public issue with a price band of Rs.1020 and upper band of Rs.1090. The issue opens on 27th June 2007 and closes on 3rd July 2007. Fundamentally a very strong company and a category I Mini Ratna, Instutional investors are the major investors in the company other than the majority holding by the Indian Govt. Though it is priced aggressively at the higher end, long-term investors can apply for this issue. Investors looking for short term listing gains may skip this issue, since the Upper band price of Rs.1090 and today’s low price of Rs.1,136 a difference of mere Rs.46 doesn’t offer much margins. Even this margin may vanish in case of a bear market on listing. Since the company caters to the Railway and Metro products, and is involved in the Delhi Metro Rail Project and also bid for similar projects in 6 other cities it should see a lot of up move in the coming days.
Suryachakra Power IPO, which is open for subscription now and closes on 29th June 2007 is a small player in the power generation business. The issue price band is Rs.17 to Rs.20. Though listing gains can be expected, in todays world where every company is building big projects in petroleum or telecom or construction and retail, a small player wont be able to gain much respect. Also there seems to be no shortage of good IPO’s in line for people to invest rather than park their money in Suryachakra Power. Spice Comm. is any time a better option which is open now.
There seems to be a lot of interest in TATA Motors by brokerages. The target for TATA motors is seen at some thing above Rs. 900. Even earlier I had said about this stock, and it had fallen a bit, which might have given an opportunity for traders to buy at lower prices. Other stocks recommended by brokerages are Visa Steel, IPCA Labs with a target of Rs.900, Indian Hotels with a target of Rs.190, City Union Bank with a target of Rs.250, Reliance Communications with a target of Rs.600 and Orchid Chemicals with a target of Rs.390.
Regarding New Issues, the ICICI Bank follow up issue was oversubscribed more than 11.5 times. But it didn’t excite the retail investors much. Foreign Govt. sponsored funds and large funds applied for bulk of the issue. SBI has put a 1.3 billion bid for the issue.
The Spice communication IPO that will open first day of next week, that is 25th June 2007 expects to garner around Rs.523 Crores in the upper band. The price band is Rs.41 to Rs.46 per share. Issue closes on 27th June. A poll conducted by Moneycontrol portal on experts view of this issue got a positive response with majority of the experts advising a buy for this IPO. It is being given a valuation of Rs.60 Plus on listing. Long term investors can expect better earnings. Since it is fairly priced issue even retail investors are showing a lot of interest in this issue. India being the worlds fastest growing cellular phone market, Spice seems to have a bright future. So Happy investing.
It was a great day for the markets today. Though it remained flat for most of the day it surged during the last one hour. The Sensex breached the 14,300 levels. The midcaps were also gainers. New listings Decolight, HTMT and Glory Polyfilm ended in discount, so all those investing in IPO’s it is advised to invest only in quality stocks and be prepared to hold on for longer term.
Some of the brokerage recommendations for this week are Laxmi Machine Works with a target of Rs.3510, Zensar Technology with a target of Rs. 484, Inox leisure with a target of Rs.160 and Elecon Engineering with a target of Rs.573. There seems to be a big run up in IFCI, so those who have already bought it, may hold on to it.
The Markets are looking up today and some of the top Brokerage Recommendations are Dishman Pharma with a target of Rs.360 which means a upside of about Rs.100, RIL with a target of Rs.1815 which is also an upside of Rs.100, Sangam India with a target or Rs.95 sees a upside of 42% within 6 months. Other recommendations are Gateway Distripacks with a target of Rs.250, Shree Ashta Vinayak with a target of Rs.352, Penunsula Land with a target of Rs.600, JSW Steel and NRB Bearings.
The follow On Public Issue issue of ICICI Bank is being eagerly awaited by investors. It is slated to open on 19th June and close on 22nd June 2007. Retail investors are being offered a 5% discount in the FPO. DLF which didn't get a great response from retail investors, those investors can wait for it to list and then buy it at a discount from the open market when it will sees a correction. Vishal Retail which had its IPO open during the same time as DLF, saw a oversubscription of 81 times!
With the markets still under pressure there isn't much broker recomendations. Guj NRE Coke seems to have a target of Rs.100 in a 12 month period.
As you all know the DLF IPO issue which is open to subscription with a size of 175 million equity shares to raise about 9600 crore at the higher price band of Rs.550 has recieved 78% subscription on the first day. Since it is one of the largest IPO's investors are hoping to get more shares alloted this time around. It seems one of the reason for the lacklusture performance of the secondary market is due to many people selling and withdrawing money to invest in these major IPO's. It will be intresting to see which price band most of the shares are applied for, the higher band of Rs.550 or lower of Rs.500. Many experts don't expect much fanfare at it's listing, so probably it will get maximum applications at it's lower price band. Many investors are expecting a return of 5% on their investements on listing day. Only long term investors can look forward for better gains. In fact Vishal Retail is gaining more popularity and exitement among investors than DLF. Also ICICI bank whose issue is opening on June 19 is being watched closely by investors. Happy IPO Investing.
The latest brokerage recommendations are TATA Motors with a target of Rs.994, Dr Reddy's Labs with a target of Rs.791, Gail has a target of Rs.379, Welspun has a target of Rs.110, PVR seeks a target of Rs.225, KLG Systel with a target of Rs.810, Tamilnadu News Print With a target of Rs.151.
TATA Motors seems to be a safe bet. So I shall include it in my opinion poll. As you all know the markets have slipped and closed in the red for this week. So it would be better to be cautious while investing or trading. Experts are of the view of seeing 13,600 levels for the sensex.
My top bet HOEC (read earlier post), as predicted reached close to target price and closed at Rs.122.70 on friday. Today it has fallen to Rs.116 levels at 2.40 P.M. It still seems to have a great potential. Since markets in general has fallen this stock too has been hit. Well probably a great opportunity for those who couldn't get in to it earlier. UTV Software has gone up further to a high of Rs.585.20 today, a change of almost Rs.50 from my earlier posting. Eicher Motors has gone up to Rs.366 from my last posting of Rs.351. Keep a watch on Nagarjuna Construction. At Rs.169 it looks attractive. Also watch IVRCL. It is quoting today at Rs.354.
