Tara Health Foods Limited IPO Message Board (Page 2)

A recent report by HDFC Securities Ltd has suggested that if the Indian operations of foreign banks were listed, their consolidated market capitalization would be in the range of $28-32 billion, around one-fourth that of local banks. The top three foreign banks, Citibank NA, HSBC and Standard Chartered, would account for around 80% of the total market capitalization. Foreign banks in India, according to the report, can trade at a higher price than public sector banks and domestic private banks because they are far more profitable. They account for around 6% of total business and 0.4% of the total branch network, but 14% of total profits. The key driver of their profitability is their fee income, which is around 26% of the fee income of the industry. But this analysis is based on foreign banks’ India operations. The price of Standard Chartered’s IDRs will reflect the strength and weaknesses of its global operations, of which India is a part.According to one report, based on 2009 results, the Standard Chartered share has a price-to-book value of 2, compared with 2.5 for State Bank of India, or SBI, and on the price-to-earnings metric, it is trading at 14.6 times compared with 15.7 for SBI and 29.4 for HDFC Bank.
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So Stanchart IDR provides an oppurtinity to buy the best bank at the least price.Hope the tax matter is clarified soon .

gem ipo finder, please let me know details about Barak Valley Cement. I am waiting for your further views, if you have researched more

One should note that the capacity of Satlug in only 1500 MW while NHPC is 5175 MW.

BUT the net profit margin of Satlug is 46 % and NHPC 31 % as of March 09. So Satlug looks more attractive for long term

SIR ,GEM IPO FINDER
PRIMIUM KYA CHAL RAHA HAI?


LISTING DATE KYA HAI?

PRINCEEEEEEEEEEEEEEEEEEEEEEEEEEE

i think 28 is the fair price for this

it will not go down to 27.50 on a listing day and not move up 28.50

i sell my 3 full application on 28
thank

standard chartered bank coing out with IDR on 25-05-2010 at around Rs115.
Any body's comment on this issue.please share.

Dear Investment,
Issue size is $600 Million.So 2700 Cr Issue.Total 24 Cr shares.So IDR will be around 110.Regarding listing Of IDR & Premium of Depositary receipts compared to the shares it is anybody's guess.
But one can say with certainity is Stanchart is a great company & its greatness lies in the fact it has weathered the financial mess & come out with flying colors.It is better than ICICI bank definitely & should deserve better valuations than ICICI bank.

Sahranpuri Ji,
Tax is the only dampener
According to the red-herring prospectus, the legal regime for IDRs is still to be tested; investors in IDRs may not get to enjoy the benefits of a bonus issue or a rights issue; dividend income on IDRs will be taxed in the hands of the investors and long-term capital gains tax will be another additional burden.
In its draft prospectus, Standard Chartered Bank has said investors are advised to consult their own tax advisers and to consider carefully the potential tax consequences of an investment in IDRs. The Income Tax Act and other regulations do not specifically refer to the taxation of IDRs. IDRs may, therefore, be taxed differently from ordinarily listed shares issued by other companies in India. In particular, income by way of capital gains may be subject to a higher rate of tax, said the bank.
Due to differences in the timelines and process for undertaking a rights offering in the UK compared with the practice followed in India, the company may, in these circumstances, decide not to seek such a registration. If the company decides not to obtain such registration, IDR holders may be either prevented or restricted from participating in a rights issue or other securities offerings of the company.

Similarly, if Standard Chartered offers scrip dividends or a bonus issue of shares to IDR holders, the same could be considered as a further issue of IDRs by the company. Such further issue of IDRs would require permission from the stock exchanges and may require registration of a new prospectus in India.

Standard Chartered Bank has said whenever the company and/or the depository is unable to make bonus issues or rights issues available to the IDR holders, the depository will try and sell the deposited property that is the subject of the distribution on behalf of the IDR holders and distribute the net proceeds thereof as a cash distribution to the IDR holders.
At present, there are no specific tax provisions under the Income-Tax Act with respect to taxation of IDRs.
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I have sold my entire Jubilant Food shares.There will be raw material & margin pressures.March QTR results are unimpressive.Already QOQ there is degrowth of 10% in PAT.I think it is trading at more than fair value.If possible you also sell the shares & book the profits.

Jubilant food me kya karna chaiye?

I hold 300 share at avg of 360 per share i am holding it since one month

Aur kitna time lagage uper aane me
i wcan wait till six months

what will be the target after six month in jubilant food?
Reply yaar
thanks

apart from taxation, standrd chrt IDR price will hit by any rupee appretiation in future.

SREEDHAR n GEM

THANKS FOR THE DETAILED WRITEUP on stancHart idr issues but the catch here is the taxation part.it will be taxed at 33 percent for short term n 20 percent for long term n there will be no indexation benefits .so shudnt we buy hdfc bank,axis bank,yes bank or the latest craze indusind bank for zero tax after 1 year.

what do u say.

how is it valuation wise

btw REC IS MAking new highs.i am still holding onto my allotment along with cox n kings,50 percent jubilant foods,db corp,persistent,ilfs ,intrasoft n nhpc as well.

whats your take on latest result of jubilant food .

nhpc has proven to my biggest drag on my portfolio.i hope patience wins maybe after 2 years.

Now the Icing in the cake,StanChart is thinking of giving 5 percent discount to retail

Today(13.05.10)CNBC-TV18's Vidhi Godiawala caught up with StanChart Top bosses—Jaspal Singh Bindra and Neeraj Swaroop to talk about the issue.

Q: Tell us about the retail discount?

Bindra: The prospectus clearly lists that we have room upto 5% discount. There is obviously a band within which the discount can be offered, which will be determined by the benchmark UK pricing in the week prior to the pricing, which is the next week. And now that we have done the launch, we are going on an extensive across the country road show to both educate and judge the response from the retail.

So far every indication, we have directly from our clients and also from the advisors, is that there is huge enthusiasm from the retail segment.

Q: What is the mechanism perhaps to derive at a price band that could perhaps be for the IDR?

Swaroop: It will be driven, first of all, by the pricing in the London Stock Exchange in the days just preceding the pricing decision that we take. There are certain guidelines by the stock exchange, which allow us to price it within a band and that we will have to follow. Basis, that we will take a call on the 23rd. It will also depend on how the prices moved relative to where it is today. We will then take a decision.

Q: Could you throw more light on your growth prospects going forward because the investors would want to know going forward how you are looking at your credit growth in the country?

Bindra: I could start with the group, we have had a record year in 2008, we have had a record year in 2009 that speaks exceptionally for an institution that in the worst financial crisis in our lifetime has produced two consecutive years of record profits. We just issued our interim statement for the first quarter which again is a record quarter by our track.
Coming to India, we have had ten years of record income and record profits. We have no intention of keeping that record unbroken.

Q: How much are you willing to grow the bank over here in India?

Swaroop: Last ten years we have grown continuously. In the last five years, we have grown at a CAGR of over 30% in both revenues and profits. The reason behind that is the underlying strength in the economy, our franchise etc that we have done well over the last five years.


RELATED NEWS
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Given the fact that we have a clear strategy and we continue to do all of that, there is no reason why we should not grow from where we are. It is difficult to give specific numbers or be certain about. I would just say there is strong growth and we have strong pipeline as we get into this year.

Q: How much credit growth are you aiming for this financial year?

Swaroop: If you look at the last four-five years, we have grown between 14-18% from a balance sheet perspective. Last year, when there was slowdown in growth in the economy and everybody slowed down we also slowed down a bit, but we grew by about 12%. We were probably one of the few foreign banks that expanded and grew its balance sheet during 2009. We don’t have a strong balance sheet growth strategy that is not a parameter that we look at. But if the credit growth as RBI said will be upwards of 20%, we should be back to our normal growth rates which we have said in the past have been between 15-20%.
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HOPE THESE WILL CLEAR ALL DOUBTS REGARDING STANCHART IDR .

Dear GEM,
See these 3 reports---------------
Financial express
Mumbai: Standard Chartered Plc plans to raise somewhere between $500 million and $750 million through its proposed Indian Depository Receipts(IDR) offering, which will be listed by the second quarter of the current calendar year. Earlier, the bank had talked of raising $1 billion through the IDR.

Now the latest in Moneycontrol(11.05.10)------------

Britain-based Standard Chartered aims to launch its share sale in India in two weeks and hopes to raise about USD 600 million, two sources with direct knowledge of the transaction said.

The sale of shares through Indian Depositary Receipts, the country's first such issue, will be open May 25-28, said the sources, who could not be named as they are not authorised to speak with the media.

The bank, which is also listed in Hong Kong, will issue around 240 million Indian Depositary Receipts, said one source, adding the roadshows for the offering is expected to begin later this week.

"We have been talking to foreign investors and large mutual funds to act as anchor investors for this issue and the response has been very positive," one of the sources said.

Earlier, the Economic Times newspaper said, quoting unnamed sources, that each group share of Standard Chartered would represent 10 India shares.

A Standard Chartered spokesman declined to comment on the report.

"We will make an announcement at the right time," he said.

Standard Chartered had previously said it planned to raise up to USD 750 million with an Indian share listing this year to raise its profile in what may soon become its biggest market.

The largest international bank in India, where it has been for 152 years, has 94 branches and 17,000 staff in the country. It is expanding across Asia after weathering the financial crisis better than most rivals.

The bank has hired UBS AG, Goldman Sachs, JM Financial Consultants, Bank of America-Merrill Lynch, Kotak Mahindra Capital and SBI Capital Markets to manage the offering.

StanChart has appointed its STCI Capital Markets unit as a co-book running lead manager.

Standard Chartered's profit in India rose 19% to USD 1.06 billion last year, contributing 21% of group earnings, ranking India fractionally behind Hong Kong as the biggest profit contributor.

Third one(03.04.10)----------------

Issue size is around $ 500 m through the issue of 220 m IDRs. Listing is targeted in June,2010. End use of the fund proposed to be raised through the issue is to support growth across the business of the company internationally. Stanchart is listed with the London Stock Exchange and its share was quoted at 1,774 pence on 30th March, 2010 at 8.30 p.m.

The issue is to be through 100 % book building which is defined in R 2(1)(f) of the SEBI( Issue of Capital and Disclosure Requirements) Regulations,2009. The book building process elicits demand and assesses the price for determination of the quantum or value of the IDRs as per the regulations. SEBI for the first time announced guidelines on IDRs in 2006. RBI framed rules for IDR issues in 2009. IDRs are redeemable by the company raising the same after the completion of one year from their issue. FIIs and NRIs can trade in the IDRs. The IDR issue of STANCHART would result in the dilution of 1.3 % of its capital. Issue price per IDR may be between Rs 100 and Rs 150 a piece and the price which would be finalized close to opening of the issue. About 8-11 IDRs would represent one London listed share. IDRs would be traded on NSE and BSE.


Hope this settles the issue(As per moneycontrol now it 600 Million & not even 750)

Dear GEM,
Great inputs.Thanks.
24 Million=24 Cr is certain so is the amt of raising around 750 Million i.e 3375 Cr.So 24 IDRs & 140 per IDR will amount to 24*140=3360 Cr.So 140 per IDR with EPS of 8 per IDR means a PE of 17.5 which will be a steal compared to PE at which indian private banks are trading at.Get ready to put in same amount of applications you had put in for SJVNL.

Dear GEM,
They are raising only around 3375 Cr(not 5000 Cr as it is $750 million (assuming $-Rs as 45).Now give all your observations based on 3375 Cr)

There is no new issue before 1st June.

Dear Toshniwal,
I assume your friend has acquired these shares from IPOs.In that event he can continue to hold ILFS & Persistent these 2 are very good stories.Once Rupee stabilises against the Dollar,you will get good returns from Persistent.Regarding NMDC & NHPC they are not moving anywhere in the near future.NMDC he may sell in profit & NHPC also sell exactly 1 day before listing of SJVNL(There may be a spurt of 1-1.5 in NHPC before the listing of SJVNL ).Using this money of 1 Lac he can invest in FPOs of EIL,SAIL,Hind Copper,UCO bank & the great Coal India IPO .It would had been even better if he had invested in SJVNL also.He would have got five percent returns.Anyways he will get 15-20 % returns in 4 months period which is definitely very good as compared to holding NMDC & NHPC which will not be moving anytime soon.

Dear GEM,
Stanchart looks a very good Issue.Hope the pricing will be right.You have forgot one more mouth watering Issue,Engineers India .Actually I was waiting for the date of the FPO to be announced so that I can go on shorting EIL daily but already it has come down from a high of 518 to 420 now.Anyhow I have become great fan of Govt Issues becos whatever be the price & valuations ,They are offering most bang for buck(Great fan maybe due to the fact I did not burnt my fingers in NHPC).Even NHPC gave you the chance to exit with more than 13 percent profit.

Friends,
In the below link you can find the prospectus of Stanchart IDR.Page 40-51 is FAQ .
http://www.sebi.gov.in/dp/standchart.pdf

Rationale for IDR issue

Standard Chartered has demonstrated a consistent track record of sustained financial performance across our markets in Asia, Africa and the Middle East. 2009 was the seventh consecutive year of record income and profit, delivering compound annual growth rates of 19 per cent in income and 22 per cent in profit over that period. The Company’s significant operations in the Asia region accounted for over 75 per cent of its USD5,151 million total profit before taxation for the year ended 31 December 2009.

The listing of IDRs – expected to be the first by an overseas company - would be an unequivocal demonstration of the Company’s commitment to India, and will facilitate a step change in market visibility and brand value in one of its key markets by significantly increasing the Company’s profile in India. India is one of Standard Chartered’s key Asian markets - generating over USD1 billion in profit – and the listing provides Indian residents with an opportunity to invest in the Company and participate in its growth.

Standard Chartered has a long history in India and celebrated its 150 year anniversary in 2008 having opened its first branch in 1858. The Company’s operations in the country have delivered consistently since 2002 with compound annual growth rates of 24 per cent in income and 30 per cent in profit.
Standard Chartered – leading the way in Asia, Africa and the Middle East
Standard Chartered PLC, listed on both London and Hong Kong stock exchanges, ranks among the top 20 companies in the FTSE-100 by market capitalisation. The London-headquartered Group has operated for over 150 years in some of the world's most dynamic markets, leading the way in Asia, Africa and the Middle East. We have produced seven years of record income and profit, primarily as a result of organic growth.

Standard Chartered aspires to be the best international bank for its customers across its markets. The Group earns around 90 per cent of its income and profits in Asia, Africa and the Middle East, from its Wholesale and Consumer Banking businesses. The Group has approximately 1,700 branches and outlets located in 71 markets. The extraordinary growth of its markets and businesses creates exciting and challenging international career opportunities