Monday, March 10, 2008

Gammon Infrastructure Projects Limited IPO Information

Public Issue Open: March 10, 2008 to March 13, 2008
Public Issue Type: 100% Book Built Issue (Initial Public Offer IPO)
Public Issue Size: 16,550,000 Equity Shares of Rs. 10/-
Face Value: Rs. 10/-
Public Issue Price: Rs 167/- to Rs 200/-
Market Lot: 35 Shares
Minimum Order Quantity: 35 Shares
Maximum Subscription Amount for Retail Investor: Rs 100,000/-
Listing: BSE, NSE

IPO payment options
1. Payment Method - 1 (Partial payment option)
Even though the issue price of the GIPL IPO is in between of Rs 167/- to Rs 200/- per equity share, investor are allowed to pay a partial amount Rs 50 Per Equity share at the time of bidding.

2. Payment Method - 2 (Full payment option)
In this case the investor pay full amount at the time of submitting the bid.

The grey market premium is just Rs.18 to Rs.19. A Moneycontrol poll with some leading brokers state retail investors to avoid the issue.

REC & V Guard Listing Date

Rural Electrification Corporation Ltd IPO Listing on Wednesday, March 12, 2008
ISIN: INE020B01018
Issue Price: Rs 105/-
Face Value: Rs 10/- Per Equity Share

V-Guard Industries Ltd IPO Listing Info
IPO Listing Date: Thursday, March 13, 2008
BSE Script Code: 532953
Listing in: B Group of securities
ISIN: INE951I01019
Issue Price: Rs 82/-
Face Value: Rs 10/- Per Equity Share

Thursday, February 28, 2008

Highlights of Union Budget 2008-09

Union Finance Minister P Chidambaram on Friday unveiled the much-awaited General Budget for the fiscal 2008-09 in the Parliament. Chidambaram presented his seventh full budget.

Stock markets give a thumbs down to the budget, Markets were down 450 points on Short Term Capital Gains Tax Proposal.

Union Budget 2008-09 highlights:

* Changes in IT slab. Threshold of exemption for all Income Tax assesses raised from from 1,10,000 to 1,50,000.
* Tax exemption for women increased to Rs 1.8 lakh
* New tax slabs will be: 10 per cent for 150,000 to 300,000, 20 per cent for 300,000 to 500,000 and 30 per cent above 500,000.
* Every income tax assessees to get relief of minimum of Rs 4,000.
* No change in rate of surcharge.
* No change in corporate income tax.
* Banking cash transaction tax withdrawn from April 1, 2009.
* Commodities Transaction Tax to be introduced on the lines of Securities Transaction Tax.
* Five year tax holiday for setting up hospitals in tier II and tier III regions for providing healthcare in rural areas from April 1, 2008.
* Short-term capital gains increases to 15 per cent.
* Securities Transaction Tax is a deductible expenditure from now on
* Set-top boxes to become cheaper
* Plan expenditure fixed at Rs 2,43,000 crore and non plan expenditure at 5,74,000 crore.
* Fiscal deficit pegged at 3.1 per cent and revenue deficit at 1.4 per cent.
* Tax to GDP ratio increased from 9.2 per cent in 2004-05 to 12.5 per cent 2007-08.
* No change in peak rate of customs duty for non
* Customs duty on specified life saving drugs reduced from ten per cent to five per cent.
* Special Countervailing Duty on power imports.
* Duty on crude and unrefined sulphur reduced from five to 2 per cent to help raise domestic fertiliser production.
* General Centvat on all goods to be reduced from 16 per cent to 14 per cent. Excise duty reduced from 16 per cent to eight per cent on all pharmaceutical goods manufacture.
* Excise duty on small cars reduced to 12 per cent from 16 per cent and hybrid cars to 14 per cent.
* Excise duty reduced from 16 to 8 per cent on water purification items.
* Asset management service under mutual funds, services by stock exchanges to be brought under Services Tax net.
* Threshold for small service providers raised from Rs eight lakh to Rs 10 lakh.
* Allocation for defence to be increased by 10 per cent from Rs 96,000 crore to Rs 1,05,600 crore.
* 75 lakh people to be covered by health insurance scheme.
* Micro, small and medium enterprises to continue to get special attention.
* Risk Capital Fund to be set up in SIDBI.
* PAN requirement to be extended to all transactions in capital market subject to a threshold.
* Rs 32,676 crore as subsidy to Public Distribution System.
* PDS through smart cards in Haryana and Chandigarh on pilot basis.
* Three schemes to be introduced for providing social security to unorganised sector workers.
* Sixth central pay commission to submit report by March 31, 2008.
* Rs 624 crore allocated for Commonwealth Games
* Farmers' debt to be waived
* Complete waiver of loans for marginal farmers owning land up to one hectare and small farmers owning land up to 1 and 2 hectares.
* Agricultural loans given by scheduled commericial banks, regional rural banks and cooperative credit institutions up to March 31, 2007 and due for December 31 that year will be covered under the waiver scheme to address the problem of indebtedness.
* One time settlement of loans for other farmers.
* Agriculture loans restructured and rescheduled by banks from 2004-06 and other loans normally rescheduled under RBI guidelines will also be eligible under the waiver scheme.
* Implementation of debt waiver and debt relief will be completed by June 30 this year.
* Loan waiver scheme to involve loans liability of Rs 60,000 crore and to benefit four crore farmers.
* By loan waiver scheme, the country is discharging a deep debt and sense of gratitude to farmers, says Chidambaram.
* The corpus of rural infrastructure development fund to be raised to Rs 14,000 crore.
* More reforms needed in coal and electricity sectors to ensure double digit growth in manufacturing sector.
* Rs 800 crore for accelerated power reforms programme.
* National Fund for Transmission and Distribution Reforms to be launched.
* The loan waiver scheme will benefit three crore small and medium farmers and cover loans totalling Rs 50,000 crore.
* One crore other farmers will benefit to the tune of Rs 10,000 crore in the waiver.
* Foreign investment of 3.5 to 8 billion dollars expected for exploration and development of new oil blocks.
* Rs 7,200 crore to be allocated to the Ministry of Women and Child Development, marking an increase of 24 per cent.
* Rs 500 crore for corpus fund to subsidise all women Self Helf Groups for LIC [Get Quote] cover for permanent disability.
* A target of Rs 2.80 lakh crore for agriculture credit set for the coming year.
* Rs 20,000 crore for irrigation projects under AIPB, showing an increase of Rs 9,000 crore over last year.
* National Horticulture Mission to be given Rs 1,100 crore in 2008-09 with special focus on coconut cultivation.
* Rs 75 crore to be given to Agriculture Ministry for providing mobile soil testing laboratories in 250 districts.
* Rs 644 crore for National Agriculture Insurance Scheme, which will be continued pending evolving an alternative crop insurance scheme.
* National Plant Protection Training Institute at Hyderabad to be made autonomous body and Rs.29 crore will be allocated to it.
* A scheme of debt waiver and relief for small and marginal farmers announced.
* National Rural Eemployment Guarantee Assurance scheme to be rolled out in all the 596 rural districts in the country in 2008-09.
* Jawaharlal Nehru Urban Renewal Mission to get Rs 6,865 crore this year against Rs 5,482 crore past year.
* Allocation for Rajiv Gandhi Drinking Water Mission to be increased to Rs 7,300 crore. Rs 200 crore for potable water in schools.
* Rs 300 crore to be set aside for desalination plant in Chennai for drinking water.
* Rs 500 crore for identifying urgent needs of development programmes of border areas like Arunachal Pradesh.
* SC, ST and minority students to continue to get special attention.
* Allocation for several schemes in North East raised from Rs 14,365 crore to Rs 16,400 crore.
* Rs 75 crore sanctioned for Rajiv Gandhi National Fellowship Programme for SC/ST students pursuing M.Phil.
* Rs 230 crore will be extended as additional equity to developmental organisations looking after the welfare of SC,
* ST, socially and economically backward classes and minorities.
* Allocation for Minority Affairs Ministry to be doubled from Rs 500 crore to Rs 1,000 crore.
* Rs 540 crore for multi-sectoral development plan for minority concentration districts.
* 288 public sector bank branches to be opened in districts having minority community concentration.
* Sarva Shiksha Abhiyan will be provided Rs 13,100 crore, Mid Day Meal scheme Rs 8,000 crore, Secondary education Scheme Rs 4,554 crore.
* 410 additional Kasturba Gandhi Vidyalaya to be set up in backward blocks.
* Navodaya Vidyalayas to be opened in 20 districts with special focus on regions having SC/ST concentration.
* Allocation of Rs 130 crore for this purpose. Rs.750 crore more to be given for merit scholarship to students up to 10th and 12th class.
* Mid day Meal scheme extended to upper primary level in 3479 schools. 16 central universities to be opened in 2008-09.
* Three IITs to be set up in Andhra Pradesh, Bihar and Rajasthan.
* Schools of architecture and planning in Bhopal and Vijaywada. More institutes of higher education to be opened.
* Rs 100 crore to be given to Information Technology Ministry to set up national knowledge centres.
* Allocation for NRHM increased to Rs 12,050 crore
* Rs 992 crore for national AIDS programme.
* A national programme for the elderly to be started at a cost of Rs. 400 crore.
* Rashtra Swasthya Beema Yojana to start from April one in Delhi and Haryana. Rs 30,000 for each family belonging to unorganised sector.
* Allocation for ICDS increased to Rs 6300 crore.
* Rs 85 crore sanctioned for scholarships to students pursuing science education.
* Indian Institutes of Science Education and Research to be set up at Bhopal and Thiruvananthapuram.
* Agriculture credit doubled in the first two years of the government to reach Rs.2.40 lakh crore by March 2008.
* Eleventh Plan started on a robust growth.
* Gross budgetary support to be raised to Rs 2,43,386 crore, an increase of more than Rs 38,000 crore from the current level.
* Allocation for Bharat Nirman to be raised to Rs 31,280 crore.
* Twenty per cent hike in education budget this year from Rs 28,674 crore to Rs 34,400 crore.
* GDP growth slows down to 8.4 per cent during quarter ended December 31, 2007 as compared to 9.1 per cent a year ago.
* Economy grew over eight per cent over 12 successive quarters since 2005, says Finance Minister P Chidambaram.
* Growth rate of agricultre extimated at 2.6 per cent during the current year.
* Services and manufacturing sectors expected to grow by 10.7 per cent and 9.4 per cent, says Chidambaram.
* Keeping inflation under check is one of the cornerstones of the Government's policy.
* Rice production estimiated at 94.08 million tonnes, maize 16.78 mt, soyabean 9.45 mt and cotton 23.38 million bales.

Tuesday, February 26, 2008

Union Railway Budget - 2008-09

Union Railway Minister Lalu Yadav presented the Railway Budget for 2008-09 in Parliament on Tuesday.

Following are the highlights:

* Railway profit in 2007-08 at Rs 25,000 crore.
* 100 mn tonne business from cement industry 200 mn target targeted till 2011
* 560 railway station platforms to be lengthened to take long trains.
* By 2009 call centre based inquiry services to be unveiled.
* Doubling of lines to be given priority.
* E-ticket booking is likely to rise to 300,000 from 100,000 in a year.
* Freight traffic target of 785 million tonnes crossed to touch 790 million tones
* Issuance of wait-listed e-tickets will also allowed
* Middle-level and low-level platforms to be upgraded to high-level platforms in several stations to help commuters.
* More facilities for women and old passengers.
* Professional agencies being involved on a pilot basis to ensure cleanliness in running trains.
* Railway Minister Lalu Yadav announced that Indian Railways will introduce 15,000 ticketing counters in the next 2 years.
* Railway plan size increased from Rs 11,000 crore to Rs 30,000 crore in the last four years.
* Railways planning smart card-based ticketing system.
* Rs 49,250 crore invested into new railway projects.
* Sleeper, II class fares cut 5%
* The Railways plans to offer tickets through mobile phones.
* Work on automatic signalling to start in new sections.
* 20,000 freight wagons to be introduced
* 20,000 km high-density network for iron ore and coal sector
* Bulk handling terminals for cement and foodgrains
* Public address systems in trains
* Pvt investment for loading terminals on railway property
* Rajdhani, Shatapdi to get modern coaches
* Rs 5 cr registration fee to lease a wagon
* 1 lakh crore worth of PPP (Public Private Partnerships) planned over the next 5 years
* 10 Garib Raths in FY09
* 233 million ton loading was done in the year
* 30 Bigger stations to have multi level parking system
* 50 big terminals planned in Mumbai, Pune, Ghaziabad
* 50 large stations to have lifts / escalators- for convenience of senior citizens
* 50 new terminals to be developed for storage
* 60 yrs and older passengers get 30% discount, female above 60 get 50% discount
* 75000 cr in next 7 yrs to further develop saturated transportation lines
* Additional earnings of Rs 2000 cr on freight service
* Annual steel traffic aim of 200 mt in 2011 vs 120 mt now
* Anti-fire gear to cost Rs 7,000 cr if pilot successful
* By 2009 call centre based inquiry services to be unveiled.
* By 2010, all coaches will be made of steel.
* CCTVs and metal detectors to be put up at all stations
* Cleanliness drive on rajdhani and shatabdi trains.
* Dividend of Rs 88 rupees
* Fares for AC-I cut by 7%, AC-II 4%, AC-III 3%
* Freight on fuels cut 5%
* FY08 rail operating ratio at 76.3%
* 'Go Mumbai' card to be sold at bus depots.
* Group-D railway examinations to be taken in Urdu also, where it is the second language
* Have 15 licensed operators for container trains
* Issuance of wait-listed e-tickets will also allowed
* Low mainenance and more comfortable stainless steel coaches to be introduced from 2010
* Middle-level and low-level platforms to be upgraded to high-level platforms in several stations to help commuters.
* Modular toilets to be introduced in trains.
* Mother-Child Healthcare Express to be run in alliance with Rajiv Gandhi Foundation
* New Bulk handling facilities to be erected for cement
* New coaches in all Rajdhani trains by 2010-11
* No busy season surcharge for bulk cement transport via new facilities
* Online information display in overnight trains of long distance
* Plan fire prevention device in coaches on pilot basis
* Plan to set up 20,000 km high density network
* Railway plan size increased from Rs 11,000 crore to Rs 30,000 crore in the last four years.
* Railway property to fetch 4000 crore in 2008-09
* Railways adopted tariff to up market share; revenue
* Railways show a surplus of rs 68,778 cr in last four years.
* Railways will look at leveraging telecom boom for ticketing
* Revenue from passenger fares increased by 14%
* Rs 250,000 cr worth of funds required by the Railways over the next 5 years for IT upgradation
* Rs 4000 cr to be spent on 36000 coaches for greent toilets in next 5 year plan
* Rs 49,250 crore invested into new railway projects.
* Rs 68788 cr for 5 years cash surplus
* SBUs (Strategic Business Unit) planned for cement, steel, coal, container sectors
* Special focus on door to door and value added services
* SPV for links to Mundra, Kandla, Krishnapatnam ports
* To have online control of trains in 2 years
* To increase container train operators to 50-55 trains
* To link trains via software communication by 2009
* To manufacture 20000 wagons in 2008-09
* To start 53 new passenger trains
* To start making steel coaches from FY09
* To up auto ticket sale machines to 6,000 in 2 years
* To upgrade infrastructure in 7 years at Rs 75,000 cr
* Will look at multi model parks for Railways at various locations

Thursday, February 21, 2008

REC IPO subscribed over 4.13 times. Issue closes today

The IPO of the state-run Rural Electrification Corporation (REC) got subscribed 4.13 times with an overwhelming bidding for 64.45 crore equity shares till yesterday. The issue closes today.

Bids for as many as 32.56 crore equity shares were received at the top end of the price band – Rs 105. The QIB portion was subscribed by 6.51 times, retail by 0.79 times and HNI 0.75 times. Even the employee quota was subscribed 0.71 times on the penultimate day of the IPO. Broking circles are confident that the IPO would be subscribed at least 15 times when it closes tomorrow.

REC entered the capital markets with a public issue of 156,120,000 Equity Shares of Rs. 10 each through 100% book building process with a price band of Rs 90-Rs 105.

Details of the issue:
Public Issue Open: February 19, 2008 to February 22, 2008
Public Issue Type: 100% Book Built Issue (Initial Public Offer IPO)
Public Issue Size: 156,120,000 Equity Shares of Rs. 10/-
Face Value: Rs. 10/-
Public Issue Price: Rs 90/- to Rs 105/-
Market Lot: 60 Shares
Minimum Order Quantity: 60 Shares
Maximum Subscription Amount for Retail Investor: Rs 100,000/-
Listing: BSE, NSE

Bang Overseas and Shriram EPC end lower on listing day

Shriram EPC opened good and touched a high of 375 and a low of 282 but closed  at Rs 293.60, down Rs 6.4, or 2.13%. Total volume traded during the day was 10,422,196 shares.

Bang Overseas like Shriram EPC also disappointed the investors, it touched an intra day high of Rs 260 and an intra day low of Rs 166.50 and at the end of the trading session, the share was quoting at Rs 171.80, down Rs 35.2, or 17%. Total volume traded during the day was of 16,647,379 shares.

Sunday, February 17, 2008

Reliance Power to issue Bonus shares

Power (R-Power), which raised over Rs 12,000 crore (Rs 120 billion) in India's biggest initial public offering in January, will consider issuing bonus shares to its shareholders, excluding the promoter group. Its board is scheduled to meet on Feb. 24 to consider issuing bonus shares and/or other measures which it said would effectively reduce the cost of the company's shares.

Reliance Power may trade between Rs 415 and Rs 425 before the bonus is announced, says SP Tulsian, Investment Advisor, on CNBC-TV18. And the ex-bonus price could be Rs 300-330, he adds. Anil Ambani yesterday announced that Reliance Power investors will receive free bonus shares to compensate them for sharp falls in its stock price.

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