Happy Lohri.

A Weekly Update from SMC
(For private circulation only)
2015: Issue 457, Week: 12th - 15th January 2015
WISE M NEY
Dance, sing and let the vibrancy
of Lohri brighten up your life.
Brand smc 281
Happy Lohri.
From The Desk Of Editor
Contents
Equity
4-7
Derivatives
8-9
Commodity
10-13
T
he start of the New Year has not been exciting for investors as the global economy is
now engulfed with multiple threats. On the one hand crude oil prices have fallen to
multi year lows and on the other hand, bond yield of economies like U.S, Japan and
Germany is moving north. Global stock markets saw selling pressure during the week on
Currency
14
concerns pertaining to the fate of Greece in Euro zone and downward revision of earnings
IPO
15
estimate of oil companies in view of the fall of nearly 55 percent in crude prices. Already
Fixed Deposit
16
the euro area economic growth has been stagnant, the growth momentum of the Chinese
Mutual Fund
17-18
economy is slowing and Japan is in recession. Falling crude oil prices are affecting the
growth of the oil exporting country on the one hand while it is benefiting the oil importing
countries on the other hand, but the persistent fall in the crude oil prices is becoming a
SMC RESEARCH TEAM
REGISTERED OFFICES:
11 / 6B, Shanti Chamber, Pusa Road, New Delhi 110005.
threat for a deflationary situation for the importing country. Minutes of the Federal Open
Market Committee (FOMC) meeting held on 16 and 17 December 2014 revealed that the
Tel: 91-11-30111000, Fax: 91-11-25754365
members discussed over the rate hike even if inflation remains below the target of 2
MUMBAI OFFICE:
percent. But as the Fed used that it can be patient along with the interest rate to remain
Dheeraj Sagar, 1st Floor, Opp. Goregaon sports Club, Link Road
Malad (West), Mumbai 400064
low for considerable time indicates that the committee is unlikely to begin the
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normalization for at least next two quarters.
KOLKATA OFFICE:
Back at home, the sign of weak global outlook has adversely affected the investors'
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Tel : 91-33-39847000 Fax No : 91-33-39847004
sentiment and broad based selling was witnessed in the domestic equity market. However,
AHMEDABAD OFFICE :
the fall in the crude oil price is a boon for the Indian economy as it will drastically reduce
10/A, 4th Floor, Kalapurnam Building, Near Municipal Market,
the import bill for the country, thereby it will help in containing the fiscal deficit on the one
C G Road, Ahmedabad-380009, Gujarat
Tel : 91-79-26424801 - 05, 40049801 - 03
CHENNAI OFFICE:
hand and on the other hand it will help in bring down the inflation which at a very high level.
India imports 80% of its crude oil requirement. The union budget is around the corner and
Salzburg Square, Flat No.1, III rd Floor, Door No.107, Harrington Road,
the Finance Minister Arun Jaitley is meeting with various representatives of Trade and
Chetpet, Chennai - 600031.
Industry. In his meeting Mr. Arun Jaitley indicated that ease of doing business in the country
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SECUNDERABAD OFFICE:
206, 3rd Floor, above CMR Exclusive, Bhuvana Towers, S.D.Road,
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is a high priority for the government and said implementation of nationwide goods and
services tax (GST) is expected to improve the tax administration regime and would help in
bringing more transparency in the system and ensure smooth flow of goods.
Tel: 91-40-30780298/99, 39109536
DUBAI OFFICE:
On the commodities front, bullion counter can trade in range on mixed fundamentals.
312, Belshalat Building, Al Karama, Dubai, P.O. Box 117210, U.A.E.
Stronger greenback continues to exert pressure on the prices. Meanwhile, physical demand
Tel: 97143963120, Mobile : 971502612483
from Russia and China continue to cap the downside. Some recovery can be seen in crude oil
Fax : 9714 3963122
Email ID : [email protected]
[email protected]
as the prices have dropped sharply in the recent months. The Organization of Petroleum
Exporting Countries is battling a U.S. shale boom by resisting production cuts, signaling it's
prepared to let prices fall to a level that slows the highest American output in more than
Printed and Published on behalf of
Mr. Saurabh Jain @ Publication Address
11/6B, Shanti Chamber, Pusa Road, New Delhi-110005
Website: www.smcindiaonline.com
Investor Grievance : [email protected]
three decades. Selling pressure can persist in base metal counter on signs of a slowdown in
China along with supply surplus. China's factory- gate prices extended a record run of
declines, signaling weakening demand in the world's largest metals user. This week US retail
sales, industrial production, Michigan consumer sentiment data will give further direction
to the metal and energy prices.
Printed at: S&S MARKETING
102, Mahavirji Complex LSC-3, Rishabh Vihar, New Delhi - 110092 (India)
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(Saurabh Jain)
SMC Global Securities Ltd. (hereinafter referred to as “SMC”) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and its associate is member of MCX stock Exchange Limited. It is also
registered as a Depository Participant with CDSL and NSDL. Its associates merchant banker and Portfolio Manager are registered with SEBI and NBFC registered with RBI. It also has registration with AMFI as a Mutual Fund Distributor.
SMC is in the process of making an application with SEBI for registering as a Research Entity in terms of SEBI (Research Analyst) Regulations, 2014. SMC or its associates has not been debarred/ suspended by SEBI or any other regulatory
authority for accessing /dealing in securities Market.
SMC or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in the company covered by Analyst. SMC or its associates and relatives does not have any material conflict of
interest. SMC or its associates/analyst has not received any compensation from the company covered by Analyst during the past twelve months. The subject company has not been a client of SMC during the past twelve months. SMC or
its associates has not received any compensation or other benefits from the company covered by analyst or third party in connection with the research report. The Analyst has not served as an officer, director or employee of company
covered by Analyst and SMC has not been engaged in market making activity of the company covered by Analyst.
The views expressed are based solely on information available publicly available/internal data/ other reliable sources believed to be true.
SMC does not represent/ provide any warranty express or implied to the accuracy, contents or views expressed herein and investors are advised to independently evaluate the market conditions/risks involved before making any
investment decision.
SMC Global Securities Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, a further public offering of its equity shares and has filed the Draft Red Herring Prospectus with the
Securities and Exchange Board of India (“SEBI”) and the Stock Exchanges. The Draft Red Herring Prospectus is available on the website of SEBI at www.sebi.gov.in and on the websites of the Book Running Lead Manager i.e., ICICI
Securities Limited at www.icicisecurities.com and the Co- Book Running Lead Manager i.e., Elara Capital (India) Private Limited at www.elaracapital.com . Investors should note that investment in equity shares involves a high degree
of risk and for details relating to the same, please see the section titled “Risk Factors” of the aforementioned offer document.
IPO
IPO NEWS
SEBI proposes e-IPO norms
To boost fund raising from markets, the Securities and Exchange Board of India, proposed e-IPO norms where investors can bid for shares through Internet and
eventually on mobiles, while already listed public sector undertakings (PSUs) will be provided a 'fast-track' route for share sales to meet the disinvestment targets. For
already listed companies as well, the market regulator has proposed a fast-track route for raising of funds through FPOs (follow-on public offers) or rights offers
(where funds can be raised from existing shareholders). Under the new norms, SEBI has proposed to drastically cut the timeline for listing of shares within 2-3 days of
the IPO, as against 12 days currently. SEBI has invited public comments till January 30, after which it would put in place final norms for e-IPO as also for fast-track
issuances.
SEBI asks for clarification from Videocon d2h for its proposed `700 crore IPO
Direct to home (DTH) operator Videocon d2h has been in the news for its proposed `700 crore initial public offer (IPO) for long and now the Securities and Exchange
Board of India (SEBI) has asked for clarifications from the merchant banker of the DTH operator. While the last date on which communication by SEBI was issued or
received was 2 January, the board, today, without disclosing the details said that the clarifications from lead manager (LM) are still awaited. The observations on the
draft offer document may be issued by the board within 30 days from “the date of receipt of satisfactory reply from the lead merchant bankers, where the board has
sought any clarification or additional information from them,” reads SEBI notice. It was on 30 September that the board received the draft offer from Videocon d2h
through its lead manager Axis Capital.
Central Depository Services plans `400 crore IPO
Central Depository Services (CDSL) has initiated the process to launch an initial share sale. Its major shareholder BSE and a clutch of banks want to sell 25-30% in the
share depository for `300-400 crore in a public offering, said two sources close to the development. If the stake sale happens at the expected price, it would value
CDSL at approximately `1,200 crore. he stakeholders are seeking premium valuations due to regulatory restrictions in setting up such a new venture and the
oligopolistic nature of depository operations in India. Promoters of CDSL and top officials of the depository had met some time ago to discuss the valuations and other
details, the sources said. In addition to BSE, other large shareholders of CDSL include Standard Chartered Bank, HDFC Bank, State Bank of India and Canara Bank,
among others.
AGS Transact Technologies set to file for IPO
AGS Transact Technologies, partly owned by US private equity firm TPG Capital, is set to file an application for an initial public offering to raise up to $200 million,
three people with direct knowledge of the matter said. AGS has mandated Citigroup and domestic investment banks Kotak Mahindra Capital, ICICI Securities, and Axis
Capital to manage the issue, said the people who declined to be named as they were not authorized to speak to the media. The company, which supplies and maintains
ATMs (automated teller machines), is expected to benefit from India's push to expand banking services to more people and small businesses, such as by issuing new
banking licences to companies.
Indian firms line up IPOs worth `8,000 crore
Indian companies have lined up initial public offers (IPOs) worth at least `8,000 crore in 2015 to fund business expansion and meet working capital requirements on
expectations that the bullish trend in the stock markets would continue. Videocon D2H, Lavasa Corporation, Adlabs Entertainment, Rashtriya Ispat Nigam Ltd (RINL)
and MEP Infrastructure Developers are among the firms that are planning to launch public offers in the coming months. At present, seven companies are planning to
raise `2,965 crore and have Sebi's approval. Another 12 firms, intending to mop-up `5,362 crore, have filed draft documents with the capital market watchdog and are
awaiting approval. Most of the companies plan to garner funds for business expansion and to support working capital requirements.
SME: Raghuvansh Agrofarms to raise `3.96 cr via IPO
Raghuvansh Agrofarms has come out with its public issue of 36 lakh equity shares of face value of `10 each for cash at a price of `11 per equity share, aggregating to
`3.96 crore. The issue is going to open for subscription on January 09 which is scheduled to close on January 13, 2015. The equity shares offered through the
prospectus are proposed to be listed on the SME Platform of the BSE. Raghuvansh Agrofarms, a unique initiative in the agri-dairy products line, aims to spend IPO
money for construction of 1000 M3 capacity of bio-gas plant for power generation; investment in subsidiary companies (Sanjeevani Fertilizers and Chemicals Private
Limited and Kanpur Organics Private Limited); and general corporate purposes. Sobhagya Capital Options Limited is the book running lead manager to the issue.
Skyline Financial Services Private Limited is the registrar to the offer.
Amsons Apparels lists at `7.60, down 25%
The equity share of Amsons Apparels listed at `7.60, down around 25 percent on Tuesday against its issue price of `10 on the SME platform of Bombay Stock Exchange
(BSE). Amsons Apparels is currently engaged in the business of trading of fabrics. It is a multi-product fabric trading company and having range includes fabrics for Silk,
Polyester, Lace Fabrics, Netting Fabrics, Coarse Cotton Fabric, suiting, shirting, linen, jute and other fabrics. The main objective of the issue was to part-finance
incremental working capital requirements and for the general corporate expenses.
Micromax plans up to $500 million IPO
Micromax Informatics, India's second-largest smartphone maker, plans to raise as much as USD 500 million through a stock market listing in its financial year beginning
in April. Micromax, which entered the Indian handset market in 2008 with cheap large-screen phones, will sell a minority stake in its initial public offering of shares.
The company has shortlisted Morgan Stanley and Goldman Sachs to manage the offering, the report said, adding that Micromax expects a valuation of 14 times its
operating profit. The company, backed by private equity firms TA Associates and Sequoia Capital, had hired banks in 2010 for an IPO to raise as much as USD 150 million
but scrapped the plan a year later, citing poor market sentiment. Its main rivals in the world's fastest-growing smartphone market include Samsung Electronics,
Motorola and China's Xiaomi. In the September quarter India's smartphone market grew by 64 percent. Samsung dominated with a 25 percent market share, followed
by Micromax at 20 percent, according to research agency Counterpoint Research.
IPO TRACKER
Company
Sector
M.Cap(In `Cr.)
Issue Size(in `Cr.)
List Date
Issue Price
List Price
Last Price*
%Gain/Loss(from
Issue price)
-20.72
Monte Carlo Fashions
Textile & Apparel
1126.59
350.43
19-Dec-14
645
585.0
511.35
Shemaroo Ent.
Entertainment
510.89
120
1-Oct-14
170.00
180.0
186.50
9.71
Sharda Cropchem
Agro Chemical
2354.30
351.86
23-Sep-14
156.00
254.10
259.50
66.35
Snowman Logistic
Miscellaneous
1591.26
197.40
12-Sep-14
47.00
78.8
94.80
101.70
Wonderla Holidays
Entertainment
1873.00
181.25
9-May-14
125.00
164.8
314.20
151.36
®
*Closing prices as on 08-01-2015
15
Mr. D K Aggarwal (CMD, SMC Real Estate Advisors Pvt. Ltd.) while receiving the “Corporate Broker of the Year- National” award
during the 'Franchise India - 7th Annual Real Estate Awards 2014' held at the Hotel Leela, Gurgaon on 22nd Dec, 2014.
Mr. D K Aggarwal (CMD, SMC Real Estate Advisors Pvt. Ltd.) while giving away the awards to other winners during
'Franchise India - 7th Annual Real Estate Awards 2014'