An IPO is an Initial Public Offer made by a company (issuer) offering shares or debentures or other tradable security to the public at large. An IPO is either for a) Fresh issue of capital, where the funds are used for the projects / growth of the company. while a FPO is a Follow- on public offer. here the companies comes with the issue second time or more.
In an IPO price discovery takes place through Book Building process while in an FPO mostly a Fixed price is opted.
Book Built IPO, in which there is a discovery of the price through the price bidding mechanism. Usually, a band (range) of the price is announced, and interested investors apply or bid for the security within this band i.e. the application can be for any price within this range.
The difference between the price band should not be more than 20%
SEBI (Securities' Exchange Board Of India) issues guidlines,which specifies the percentage of the total securities offered for each category of investors from time to time.Currently,in any IPO,the allocation is usually as under:
QIB - 50%
HNI - 15%
Retail - 35%
Following are the entiteis asociated with the IPO
A BRLM is the Book Running Lead Manager,who manages the entire IPO exercise and acts as the guide to the issuer in all maters releting to the public issue. BRLM ensures that all information presented before the investing public is proper.The BRLM advices the company on the price band,the timing of the issue, etc..
A Registrar to an Issue is a SEBI-registered entity,qualified to act as such,and who processes all the application forms and carries out the allotment process,as per the rules/prospectus.The Registrar is responsible for complying with the time deadlines of updating the electronic credit of shares to the successful allottees,dispatching/uploading of refunds and attending to all investor related queries after the issue is compleated.
Crediting of Issue shares
The credit of the shares allotted to you,should be completed within fifteen working days after allotment by the Company from the date of closure of the issue.
The share should be listed within 21 days of closing of offer.
In an Fixed Price Issue,the time deadlines are 30 days from the date of closure (insted of 15 days as in Book Built IPOs) for obtaining the approval of Basis of Allotment,credit of the shares and despatch /credit of refund amounts.
Refund of money
The Registrar has to despatch the Refund order and upload the electronic credit/ECS on or before the end of 15th day from the date of closure of the issue.
Points to remember while applying
- Your Demat Account Number is clearly written without any smudging or overwriting etc.
- Your payment details like cheque number,bank details etc.are clearly written.
- Your bid is for the proper bid lot and a price within the bid range.
- The order of names in the application is the same as in your DP account.
- All applications have signed the application form.
- If required you have submitted the PAN copy and PAN details in application form.
Labels: Indian stock market, IPO
Bollinger Bands are an indicator that allows users to compare volatility and relative price levels over a period time.The indicator consists of three bands designed to encompass the majority of a security's price action.
A simple moving average in the middle
An upper band (SMA plus 2 standard deviations)
A lower band (SMA minus 2 standard deviations)
Standard deviation is a statistical unit of measure that provides a good assessment of a price plot's volatility.
Bollinger recommends using a 20-day simple moving average for the center band and 2 standard deviations for the outer bands. The length of the moving average and number of deviations can be adjusted to better suit individual preferences and specific characteristics of a security.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
Signals
Double bottom Buy: A Double Bottom Buy signal is given when prices penetrate the lower band and remain above the lower band after a subsequent low forms. Either low can be higher or lower than the other. The important thing is that the second low remains above the lower band. The bullish setup is confirmed when the price moves above the middle band, or simple moving average.
Double Top Sell: A Double Top Sell signal is given when prices peak above the upper band and a subsequent peak fails to break above the upper band. The bearish setup is confirmed when prices decline below the middle band.
Video Boilinger bands
A simple moving average in the middle
An upper band (SMA plus 2 standard deviations)
A lower band (SMA minus 2 standard deviations)
Standard deviation is a statistical unit of measure that provides a good assessment of a price plot's volatility.
Bollinger recommends using a 20-day simple moving average for the center band and 2 standard deviations for the outer bands. The length of the moving average and number of deviations can be adjusted to better suit individual preferences and specific characteristics of a security.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
Signals
Double bottom Buy: A Double Bottom Buy signal is given when prices penetrate the lower band and remain above the lower band after a subsequent low forms. Either low can be higher or lower than the other. The important thing is that the second low remains above the lower band. The bullish setup is confirmed when the price moves above the middle band, or simple moving average.
Double Top Sell: A Double Top Sell signal is given when prices peak above the upper band and a subsequent peak fails to break above the upper band. The bearish setup is confirmed when prices decline below the middle band.
Video Boilinger bands
Labels: Technical analysis
Binani Cement Limited is entering the capital markets. with a Public Offer of 20,500,000 Equity Shares of Rs. 10 each for cash, through an Offer for Sale by JP Morgan Special Situatbns (Mauritius) Limited ("Selling Shareholder"). The Offer shall be through the 100% book - building process.
JP Morgan Chase controlled equity fund picked up 25% in BCL for about Rs 150 crore. It is now selling part of its stake, about 10% of BCL’s equity capital, through the IPO.
The Company posted a T otaT Income of Rs. 5,665mn and a Profit before tax of Rs. 1097mn for the nine months ended December 31, 2006. It posted a T otallncome of Rs 5,840mn and a Profit before tax of Rs 581mn for the year ended March 31, 2006.
The Price Band for the Offer has been fixed between Rs. 75 and Rs. 85 per Equity Share. The Public Offer opens on May 7. 2007. and closes for subscription on May 10, 2007. The Offer shall constitute 10.09% cif the Post-Offer paid-up capital of the Company. The Equity Shares are proposed to be listed on the National Stock Exchange and the Bombay Stock Exchange.
BINANI CEMENT LTD - IPO - 175 crore - bookbuilding - price band 75 to 85 - lot 80- shares - open 7th to 10th - www.binani.com
Labels: IPO
Insecticides India Ltd (IIL) has today emerged as a 175 crore enterprise with a credible reputation and core competencies in the area of agro-chemicals.Its range of innovative end-to-end solutions have continuously improved safety of various crops across the country.Many of its products are now a benchmark for the industry. Today, IIL is a frontline performer which has emerged as a preferred brand in India, whose footprints cover the length and breadth of the country with 4 Regional Offices,7 Area Offices and 24 depots. The company has developed a core network of distribution and sales at national level,with representations in all parts of the country. IIL has 5000 distributors and over 50,000 dealers across the country.They have products for both Crop Protection and Urban Pest.
The Initial Public Offering of Insecticides India Ltd will open for subscription on Monday, 7-May-2007. The issue will close for subscription on 11-May-2007
Book Running Lead Manager is UTI Securities Ltd
You can vist the company's website Insecticides India Ltd and get the prospectus at Insecticides India LTD (IPO)
The price band of the issue is between Rs 97 and Rs 115 per equity share and is scheduled to open on May 7 and close on May 11.
Labels: IPO
Reserve Bank of India (RBI) on Thursday notified the reduction in risk weight on hosing loans for up to Rs 20 lakh from 75 per cent to 50 per cent.
The central bank also reduced the risk weight for banks' investment in mortgage backed securities, issued by the housing finance companies, to 50 per cent from the existing 75 per cent.
RBI, however, said it would review the risk weights after one year keeping in view the default experience and other relevant factors.
RBI, however, said it would review the risk weights after one year keeping in view the default experience and other relevant factors.
Labels: Credit Policy, RBI
Hi ALL
The day has been good so far, Indian markets as well as the European markets have shown strength. Probably Nifty will touch new highs.... as we have seen a bounce back from around 4020-4040 levels.
Now let us continue with our discussion on Technical Analysis. Today let us look at the basic of it the Trendline.
A trend line is a straight line that connects two or more price points and then extends into the future to act as a line of support or resistance. Market normally follows a trend which is depicted by the trendline.
For the up market we draw a trend line by joining succesive lows. and for the down market by joining the highs. The break in the trend line would indicate change in the market trend or direction.
One thing that I have noted recently is that if you exterpolate two or more trendlines so that they join at one single point, that point will correspond to the time where the market will peak or dip.
High points and low points appear to line up better for trend lines when prices are displayed using a semi-log scale. This is especially true when long-term trend lines are being drawn or when there is a large change in price.
Trendline Video
Additional trendline analysis for Forex
Labels: nifty, Technical analysis
MIC Electronics manufactures of True Colour LED video display systems, MIC is the only company in India to have the capability for manufacture of LED video display systems.The price band for the offer has been fixed between Rs 129 and Rs 150 per equity share.
Risk Involved
It has high risk of technological obsolescence
the company earnings are primarily dependent on the business of LED Display Systems
Nichia Corporation is primary source Raw Material.
Positives
The management says the 30.8% earning before interest, depreciation, taxes and amortisation (EBIDTA) margin of the segment in FY ended June 2006 has improved to about 40% in the six months ended December 2006 on reduction in R & D cost.
The current global LED display market size is around US$ 3.55 billion and is expected to reach US$ 3.9 billion by 2007. The LED market has shown a CAGR of 15.98% from FY 2004 to FY 2007. Internationally, LED display renting is one of the fastest growing segments in the live entertainment industry, with a size of around US$ 210 million and is expected to grow by 12.5% year on year.
The order book of the three divisions stood at Rs 167.86 crore end January 2007, which is 2.5 times the revenue for six months ended December 2006. Of this, 33.92% of the orders are for LED video display systems, 3.57% for the IT division and the balance 62.49% bagged by the communications segment.
Since it has monopoly in India and also that it is growing with a CAGR of around 16 percent and,The LED business has excellent growth potential I think people should subscribe for this IPO
Labels: Indian stock market, IPO
The Securities and Exchange Board of India (Sebi) has taken the plunge and made the grading of IPOs mandatory. From May 1, any promoter knocking on the doors of Sebi with a draft prospectus will need to get his offering graded by a credit rating agency.
“The issuer shall be required to disclose all the grades obtained by it for its IPO in the prospectus, abridged prospectus, issue advertisements and all other places where the issuer is advertising for the IPO,” a Sebi amendment to the Disclosure and Investor Protection Guidelines, 2000, issued on Monday, states.
SEBI has also amended the guidelines on qualified institutional placements (QIPs). Only companies with a one-year trading history will be allowed to raise funds through QIPs.
source dnaindia.com
Labels: Indian stock market, IPO
Technical Analysis RSI Indicator
The day has been so far moving nowhere Indian markets remained closed .... In the commodity segment precious metals say Gold is moving no where and still hovering aroud $ 671.
So now let us gain some knowledge about yet another Indicator ....RSI
RSI is Relative strenth index, A technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. It is calculated using the following formula:
RSI = 100 - (100/(1+RS))
RS = Average of x days' up closes / Average of x days' down closes As you can see from the chart below, the RSI ranges from 0 to 100. An asset is deemed to be overbought once the RSI approaches the 70 level, meaning that it may be getting overvalued and is a good candidate for a pullback. Likewise, if the RSI approaches 30, it is an indication that the asset may be getting oversold and therefore likely to become undervalued.
Trading Futures using RSI
Labels: Technical analysis
Hi ALL
Wanted to give new face to the blog .... Now onwards will foucs on whole financial side ....
So for this I thought .... to predict the market may be a index like nifty or sensex...or any stock we need to ... whats called " Technical Analysis "
As a part of this we will first look into the MACD indicator today with this video...
MACD is Moving Average Convergence-Divergence Indicator, The MACD was developed by Gerald Appel, and is based on exponential moving averages (EMA).
The MACD indicator is the difference between two exponential moving averages (12 and 26 as default) and also has a signal trigger or timing line (9 day ema as default). When values of the MACD indicator move above the zero level, it is similar to a moving average crossover signal described previously to identify uptrends.
Here is one of the Vids explaing it
Video One
Video Two
Video Three
Labels: Technical analysis
Subscribe to:
Posts (Atom)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)