Indian Stock Market

Financial Technologies India (FTIL), the key promoter of Multi Commodity Exchange (MCX), has decided to sell 3.55%, 5% and 1% equity stake to ICICI, IL&FS, Kotak, respectively, at an enterprise value of $1-1.1 billion.

The stake sale will bring down FTIL’s stake in MCX to 40.45%.

Jignesh Shah, managing director & CEO, MCX, said: “This milestone is a testimony of the quality of the institution we have built in and from India where the global and domestic best have converged.”

Some of the other shareholders in MCX include Merrill Lynch, Citigroup, Fidelity International and State Bank of India

Edelweiss IPO Allotment : Edelweiss Capital IPO Allotment Status

Edelweiss Capital IPO has been Over Subscribed more than 110 Times and Retail Subscription is 18 times.

So there are chances of allotment if you had applied in full. Allotment status of edelweis ipo will be out in another 10 days .

Edelweiss IPO AllotmentCheck here for allotment details and Refund Order for Edelweiss IPO.

Edelweiss IPO Allotment : Edelweiss Capital IPO Allotment Status

Religare Enterprises today listed at a premium of 75 per cent over the issue price of Rs 185 a share on the Bombay Stock Exchange.

The scrip opened at Rs 325 and shot up to Rs 592 within minutes. A total of 18.53 lakh equity shares changed hands at the bourse.

The company has issued 7.57 crore equity shares in the initial public offering at Rs 185 each, a circular on the stock exchanges said.

The IPO received overwhelming response from investors and was subscribed over 160 times.

Edelweiss Capital IPO : Subscribe to Edelweiss Capital IPO for long term

Edelweiss Capital, a financial services company, is entering the capital market with its initial public offering (IPO) of 8,386,147 equity shares of Rs 5 each for cash, at a price to be decided through a 100% book building process.

The issue will open on November 15, 2007, and will close on November 20, 2007. The price band has been fixed between Rs 725 and Rs 825 per equity share of face value Rs 5.

Grey Market Premium of Edelweiss Capital IPO : 450.RS Per share

 EDELWEISS CAPITAL IPO ANALYSIS:

On analysis of results of FY 07, and results of five months ending August 07, employee costs have increased by about 100%, on an annualized basis, while finance cost increased by about 350%, on annualized basis. As against this, core income of the company, being fee brokerage and commission income improved by just 50%, on an annualized basis.

Even the debt component of the company rose sharply from Rs 386 crore as at 31st March 07 to Rs 976 crore as at 31st August 07. On gross basis, it has resulted in a yield of 13% for five months or about 2.5% per month. This kind of yield is given by arbitrage plays, even on a fund size of Rs.1,000 crores. So, the business model of the company is relying more on trading and arbitrage income which may not be perceived to be very healthy, on a sustainable basis, while valuing a company.

On an annualised basis, for FY 08, the company may have a bottomline of Rs 250 crore, which may result in an EPS of about Rs 33, translating into a PE multiple of about 25 times, at the upper band of Rs 825 per share. The market capitalization of the company, post issue, at the upper band of Rs 825 per share, works out at Rs 6,200 crore.

If we consider grey market premium of Rs 500 per share, market cap on listing would be about Rs 10,000 crore, which makes the issue definitely expensive when compared to its peer like Indiabulls Securities, India Infoline and Motilal Oswal.

The revenue model of the company does not give absolute comfort and looking at the grey market activity and quote, the subscription levels would be very high, resulting in poor allotment ratio. Still if somebody wishes to ride the momentum, one can go for it.Subscribe to Edelweiss Capital IPO for long term

Edelweiss Capital IPO – Edelweiss IPO

Edelweiss Capital IPO opens for Subscription on November 15 2007 and closes on November 20 2007.

The Price Band of Edelweiss Capital IPO has been fixed between Rs. 725 and Rs. 825 per Equity Share .

The Issue comprises a net issue to the public of 8,181,607 equity shares of Rs. 5 each (the “Net Issue”) and a reservation of 204,540 equity shares of Rs. 5 each for eligible employees of the Company. The Issue would constitute 11.19% of the post Issue paid-up capital of the Company. The Net Issue would constitute 10.92% of the post Issue paid-up capital of the Company. The Equity Shares, offered through this IPO, are proposed to be listed on the National Stock Exchange of India Limited (“NSE”) and the Bombay Stock Exchange Limited (“BSE”).

Headquartered in Mumbai, Edelweiss Capital Limited provides investment banking, institutional equities, private client broking, asset management, wealth management, insurance broking and wholesale financing services to corporate, institutional and high net worth individual clients. It operates from 43 other offices in 19 Indian cities. Since its commencement of business in 1996, it has grown into a diversified Indian financial services company organised under agency and capital business lines handled through the Company and its thirteen subsidiaries. Its agency business lines include investment banking, institutional equities, private client broking, asset management and investment advisory services, wealth management and insurance broking. Its capital business lines include wholesale financing services and the internal treasury operations.

Religare Enterprises IPO Allotment Status

Religare IPO Allotment price fixed at Rs 185/share

Religare Enterprises IPO got Over Subscribed by 161 Times.

Religare IPO Allotment status will be out in another 1 week.But chances of getting shares in Religare Enterprises IPO seems difficult due to huge over subscription.

Check Religare IPO Allotment Status here…. 

Price Band for Religare Enterprises IPO : RS.160-185

The funds raised through Religare IPO would be invested for expansion of domestic operations and branch network, the company said.

Religare Enterprises is a holding company of 11 subsidiaries, engaged in offering financial services targeted at retail, high net worth individuals besides corporate and institutional clients.

The company recently sold 5 per cent stake to Indopark Holdings, a subsidiary of Merrill Lynch for Rs 60.6 crore

Religare Enterprises IPO Allotment status will be updated as soon as available .

Mumbai-based brokerage house Motilal Oswal Financial Services (MOFSL) reported a three-fold jump, in its net profit to Rs 330 million in the quarter ended September 2007 as compared to Rs 110 million in the corresponding quarter last year.

Results for the quarter ended September 2007 (Q2 FY08)

The company demonstarted a strong top line growth of 2.12 times, to Rs 1,530 million as compared to Rs 720 million, last year.

This growth has been propelled by various strategic initiatives backed by favorable market conditions. New businesses have also registered robust growth. Investment banking advisory fees was up 52% to Rs 100 million, from last year`s figure of Rs 66 million; fund based income was up by 2.43 times to Rs 65 million, as compared to Rs 27, in the corresponding quarter last year, while asset management fees saw a 2.36 times rise to Rs 34 million, as compared to Rs 14 million in the corresponding quarter, last year.

Results for the half year ended September 2007 (H1FY08)

For the first half of FY08, the company achieved an income of Rs 2,760 million, an increase of 65% over the first half of the previous year. Profit after tax grew 2.48 times to Rs 730 million, from last year`s figure of Rs 290 million.

Motilal Oswal, CMD said, “In the current year we have taken rapid strides in acquiring strong capabilities in value adding businesses such as investment banking, asset management and wealth management. This will not only de-risk our portfolio, but also help us power our growth in the years to come.“

MOFSL recently got listed on Indian stock exchanges following their IPO in August 2007.

During the current financial year, the customer base increased to 328,310 from 268,916 in March 2007. The company has expanded its reach to 1,288 outlets across 385 cities.

The investment banking arm of MOFSL, Motilal Oswal Investment Advisors, closed 10 deals aggregating to approx. USD 500 million in the 6 months of the current financial year and has currently 12 deals in the pipeline aggregating to approx. USD 500 million.

Shares of the company declined Rs 26.1, or 2.18% to end at Rs 1,173.70. The total volume of shares traded at the BSE was 40,514. (Thursday)