Indian Stock Market

Buy ORG INFORMATICS @ 9.RS , Target: 20.RS

ORG INFORMATICS had recently acquired the Satellite Business of Belgacom . This acquisition will enable ORG INFORMATICS to offer DTH Platform to bradcasters in Europe . ORG is targeting Indian Broadcasters who wish to take their channels to Europe to target Indian NRI audience there.
ORG is involved in Systems Integration , Software Development and Managed Services for Telecom Companies.ORG had recently executed a 500 crore order from MTNL.
The company is already trading near 52 week low. And further downside is little and upside is huge if the company capitalises the Growth in these sectors.

We recommend buying ORG INFORMATICS at the current price.

Target Price : 200.Rs ( 1 Year )

Real estate major DLF plans to raise $5 billion over the next three years by listing five of its business units, including DLF Homes, DLF Retail, DLF Hotels, DLF Utilities and DLF Infrastructure. There are no plans to further dilute equity in group flagship DLF. The eventual strategy is to make DLF a holding company with considerable equity stakes in the listed entities in addition to being an incubator for new businesses.

In all, the company is looking at a fund infusion of $10-12 billion in its various businesses over the next three years. “We gradually plan to bring IPOs for all our major business units, excluding finance,” DLF group chief finance officer Ramesh Sanka told ET.

The $5-billion group will raise the fund through domestic IPOs in addition to Singapore listing of DLF Assets (DAL), the company which own the office space development and management business of the group. At present, the company is awaiting regulatory approvals for this IPO. “We hope to hit the Singapore capital markets by the first quarter of next year,” Mr Sanka said. While Mr Sanka refused to divulge the size of the DAL float, the buzz is that it will be a $2-2.5 billion issue.

All other business units of the company are expected to be listed in Indian capital markets only. “As of now, we are not looking at any other overseas market,” Mr Sanka said. In addition, the company would look at options of raising funds by diluting equity in some of its ongoing projects as well. “We are open to private equity as well as strategic investment in special vehicles at project levels,” he said.

The company is also looking at aggressively expanding the retail and hospitality businesses. “We will not mix our retail business with real estate. We are looking at joint venture opportunities with various foreign brands. But in this model, real estate will not be our basis of equity. We would participate as financial investors,” he said.

Even if the company ties up with a supermarket chain, it would stick to this model. DLF has been reported to be in talks with French retailer Carrefour. “We are in talks with various players. I can’t comment on any specific deals at this point of time,” Mr Sanka said.

So one can get ready for DLF Homes IPO, DLF Retail IPO, DLF Hotels IPO, DLF Utilities IPO and DLF Infrastructure IPO

ONGC Videsh Ltd (OVL) has struck black gold in Arabian Gulf block off Qatar. The Najwat Najem block is the first overseas project executed by OVL wherein the company has both 100% ownership and is the sole operator.

“As per preliminary indications, oil has been encountered in the Shuaiba and Arab formations. The second well will also be completed by January 2008. We are hopeful that this will lead to the development stage,” a source in the petroleum ministry said.

The exact size of the discovery is not known yet as it has not been formally approved. OVL spudded its first appraisal well in the Najwat Najem structure on July 6, 2007. OVL had firmed up two locations for evaluating the structure and assessing and proving its commerciality.

OVL signed an appraisal, development and production sharing agreement (ADPSA) with the Qatari government on March 2, 2005 for the Najwat Najem oil structure appraisal in the country as an operator. The agreement came into effect on May 19, 2005 with the signing of the Emiree Decree (termed the effective date).

ADPSA is for a period of 20 years from the date of the Emiree Decree and comprises of an initial two year appraisal phase followed by a development phase. The minimum work committed during the appraisal phase is reprocessing and interpretation of 200 sq km of seismic data, a preliminary G&G study, drilling of two appraisal wells and an integrated multi-disciplinary study to assess the potential of the area.

The Najwat Najem oil structure is located in the Arabian Gulf in offshore Qatar at a distance of about 100 km north east of Doha Port. It lies at a distance of about 18 km off the Halul island in the state of Qatar. The Jurassic lime stones are the main reservoirs of this structure.

The Najwat Najem oil structure is in the Persian Gulf, at a water depth of approximately 135 feet.

Bafna Pharmaceuticals IPO : Bafna Pharma IPO

Bafna Pharmaceuticals (BPL) filed draft offer document with SEBI to enter into capital market 

All other details about Bafna Pharma IPO will be posted soon.

Birla Cotsyn IPO : Birla Cotsyn IPO

Birla Cotsyn India , a Yash Birla Group company, filed draft offer document with SEBI to enter into capital market with public issue to raise 144 crores.

Further details about Birla Cotsyn IPO willbe posted here.

Pride Hotels IPO

The Pride Hotels  said it has decided to come out with an IPO in the first quarter of 2008, to meet its expansion plans.

“Pride Hotels has received an investment from Kotak India Real Estate Fund towards part financing of its Rs 340 crore expansion-cum-renovation plan and aims to utilize the funds towards setting up new hotels in Mumbai, Goa, Bangalore and Alibaug,” group Chairman S P Jain told .

BENAZIR BHUTTO : BENAZIR BHUTTO Dead 

Pakistan’s charismatic leader Benazir Bhutto was assassinated today as gunmen opened fire at her vehicle just before a suicide attack at an election rally addressed by her in Rawalpindi.

The attack killed more than 20 people and left several others injured.

Following Bhutto’s death, a high alert has been sounded in Pakistan. President Musharraf has convened an emergency meeting of top advisors. Shops and petrol pumps have closed in many cities fearing violence.

According to preliminary reports, Benazir finished the rally at 5:30 pm and was on her way back to Ralwal. She got into the car and was soon after attacked by two people with AK 47s. A suicide bomber blew himself up next to car.

Nawaz Sharif described Benazir Bhutto’s assassination as the most tragic incident in the history of Pakistan.

”I myself feel threatened,” says Sharif, whose party temporarily suspended the electioneering in the wake of the assassination.

eClerx Services IPO Listing Date

The equity shares of eClerx Services will be listed on Monday December 31, 2007.

Transformers and Rectifiers to list on Dec 28 

Listing date of Transformers and Rectifiers IPO is out.

The issue price has been fixed at Rs 465 per equity share (at the upper end of the price band) for its initial public offering (IPO) of 29,95,000 equity shares of Rs 10 each for cash, at a premium of Rs 455 per equity share. The price band was between Rs 425 to Rs 465 per equity share.

The equity shares of the company are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.

Future Capital IPO : IPO of Kishore Biyani’s Future Capital Holdings has got clearance from SEBI, according to CNBC-TV18 quoting sources. The company is looking to raise Rs 400 crore through IPO. Future Capital Holdings is offering 64.2 lakh shares via IPO and diluting 10.16% of equity. Promoters holding will reduced to 74% from current 83%.

Currently the listed Pantaloon holds 61%, which will come down to 55% post IPO. Kishore Biyani’s stake will come down from 6.6% to 6% post IPO.

RHP is likely to be filled in the next 7-10 days.

Noida Toll Bridge Company has touched a 52-week high of Rs 66.85. At 11:03 am, the share was quoting at Rs 66.85, up Rs 6.05, or 9.95%.

Yesterday the share closed up 9.95% or Rs 5.50 at Rs 60.80.

Manaksia IPO fixes issue price at Rs 160/share 

Manaksia, a multi division and multi location company focusing on manufacturing of value added metal products and metal packaging products, has been fixed its issue price of Rs 160 per equity share. It has raised Rs 248 crore from this issue.

An initial public offering of 15,500,000 equity shares of Rs 2 each had opened for subscription on December 17 and closed on December 19, 2007. The price band was between Rs 140 and Rs 160 per equity share.

It had subscribed 8.79 times, according to data available on NSE website. Big support was seen from qualified institutional investors, their reserved portion subscribed 13.7 times followed by retail and HNIs with 5.09 times and 2.72 times, respectively.

The company intends to use the net proceeds of the issue for expansion of metals business by purchase of capital equipment, prepayment of certain term debt and for general corporate purposes. The expansion of metals business includes addition of certain equipments for de-bottlenecking to aluminium rolling line at Haldia is aimed at production of higher value added products as well as improving efficiency of its present production.

ICICI Securities is the book running lead manager for the issue. The equity shares of the company are presently listed on the CSE and the equity shares offered through this public issue are proposed to be listed on the BSE, NSE and the CSE.

Sharekhan research is bullish on Maruti Suzuki and has maintained buy rating on the stock with target price of Rs 1230, in their December 24, 2007 report. “The views expressed by the new MD during the particular interview are in line with MSL’s earlier guidance and consequently we have factored the guidance offered by him in our estimates. We believe the outperformance witnessed in H1FY2008 with a strong volume growth of 19.3% will get decelerated to some extent in H2FY2008, as the high base effect catches up. We estimate MSL’s sales volumes would grow by 13.9% in H2FY2008. However, the company has a very strong product basket, with products in every segment of the passenger car market. At the current market price of Rs990, the stock is quoting at 12.9x its FY2009E earnings and at an enterprise value/EBIDTA of 8.2x. We maintain our Buy recommendation on the stock with a price target of Rs 1,230,” according to Sharekhan report.

Sharekhan research has maintained buy rating on Madras Cement with target price of Rs 4800 in its December 24, 2004 report. “MCL’s expansion plans will drive its volume growth going ahead. The company plans to increase its capacity by 4MTPA by the end of FY2009. It is also investing in renewable energy and CPPs which will keep a check on its variable costs and enable it to maintain its OPM. At the current market price of Rs 4,508 the stock is trading at a price-toearnings multiple of 11.6x discounting our FY 2008 earnings estimate and at 9.1x discounting our FY2009 earnings estimate. It also trades at an EV/tonne of USD 152 on increased capacity. As mentioned in one of our earlier updates, the company could reward its shareholders either with a bonus or with a stock split. Meanwhile we maintain our Buy recommendation on MCL with a price target of Rs 4,800 per share,” says Sharekhan report.

Angel Broking has maintained buy rating on Electrosteel Casting with 12 month target price of Rs 107 in their 14 December 2007. “Electrosteel Castings (ECL) is a complete water infrastructure company providing end-to-end solution in water supply & sewerage application systems. We believe that capacity expansion for DI pipes and backward integration into achieving self-sufficiency of key inputs like coking coal and iron ore are the key drivers of growth for ECL going ahead. We expect ECL to record a 30% CAGR in Bottom-line over FY2007-10E. At the CMP of Rs 82, ECL is trading at a P/BV of 1.4x FY2010E BV. However, excluding ECL’s 48.5% investment in Lanco Ferro, the stock is available at P/BV of 1.3x FY2010E BV. We have valued ECL’s 48.5% stake in Lanco Ferro at Rs4/share on current market capitalisation after giving 25% discount. We have valued ECL’s business at Rs 103/share at which it would command a P/BV of 1.8x, which we believe is fair considering peer valuations and the company’s improving business profile. We Initiate Coverage on the stock, with a Buy recommendation and 12-month Target Price of Rs 107 (incld. Lanco Ferro), giving an upside of 30%,” According to Angel Broking report.