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Equitas Holdings Limited IPO (Equitas Holdings IPO) Detail

Apr 5, 2016 - Apr 7, 2016

Incorporated in June 2007, Equitas Holdings Ltd is Chennai based financial services provider focused on individuals and micro and small enterprises (MSEs). Equitas offers services to low income groups and economically weaker individuals operating small businesses and MSEs with limited access to formal financing channels.

Equitas is one of the 10 companies that have been selected by the RBI to set up small finance banks, niche lenders aimed at helping small businesses and farmers get easier access to funding.

Equitas operates in 11 states, one union territory and the NCT of Delhi. As of June 30, 2015, Equitas had 520 branches across India.

Equitas offer a range of financial products and services including:

1. Microfinance

Equitas offers micro loans of Rs 5,000 to Rs 35,000 to its customers. Company is fifth largest microfinance company in India in terms of gross loan portfolio.


2. Vehicle Finance

Equitas offers used commercial vehicle finance to customers. Company is among a few NBFCs in India operating in the used commercial vehicle finance business.

3. Micro and Small Enterprise (MSE) Finance

Equitas provides asset backed financing primarily focused on self-employed individuals operating micro enterprises and small enterprises.

4. Housing Finance

Equitas provides micro-housing and affordable-housing loans to selfemployed individuals who have limited access to loans from banks and larger housing finance companies. A majority of its
micro-housing finance loan accounts represented cross sales to eligible higher income microfinance customers with a satisfactory track record.

Equitas Competitive Strengths:

1. Robust corporate governance standards and transparent operations leading to institutional confidence and customer goodwill

2. Comprehensive understanding and successful track record with underserved customer segment offering significant growth opportunities

3. Standardized operating procedures and efficient use of technology resulting in effective risk management and improved efficiencies

4. Diversified product offering and markets with significant cross-selling opportunities.

5. Experienced management and strong employee engagement

6. Commitment to social initiatives

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Company Financials:

Objects of the Issue:

The Issue comprises of a Fresh Issue and an Offer for Sale.

1. Offer for Sale

Each of the Selling Shareholders will be entitled to their respective portion of the proceeds of the Offer for Sale. Company will not receive any proceeds from the Offer for Sale.

2. Fresh Issue

Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding of the following objects:

Investment in our Subsidiaries to augment their capital base to meet their future capital requirements arising out of growth in the business; and General Corporate Purposes.

Equitas Holdings IPO Details

IPO Opening Date Apr 5, 2016
IPO Closing Date Apr 7, 2016
Issue Type Book Built Issue IPO
Face Value ₹10 per equity share
IPO Price ₹109 to ₹110 per equity share
Market Lot 135 Shares
Min Order Quantity 135 Shares
Listing At BSE, NSE
Issue Size[.] Eq Shares of ₹10
(aggregating up to ₹2,175.00 Cr)

Equitas Holdings IPO Lot Size

The Equitas Holdings IPO market lot size is 135 shares. A retail-individual investor can apply for up to 13 lots (1755 shares or ₹193,050).

Application Lots Shares Amount (Cut-off)
Minimum 1 135 ₹14,850
Maximum 13 1755 ₹193,050

The public issue of Equitas consist of:

  1. A fresh issue of [*] equity shares aggregating up to Rs 720 Crore and;
  2. An offer for sale of up to 130,825,886 equity shares by the selling shareholders at the issue price.

Equitas Holdings IPO Review

Investors looking for a medium to long term investment bet may consider investment.

Read detail review...

Equitas Holdings IPO Subscription Status (Bidding Detail)

The Equitas Holdings IPO is subscribed 17.21 times on 4/7/2016 10:30:00 PM. The public issue subscribed 1.40 times in the retail category, 14.93 times in the QIB category, and 57.29 times in the NII category. Check Day by Day Subscription Details (Live Status)

CategorySubscription (times)
QIB14.93
NII57.29
Retail1.40
Employee0.89
Total17.21

Equitas Holdings IPO Prospectus

Equitas Holdings IPO Rating

531
3.9
Rating:Rated 3.9 stars
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Equitas Holdings IPO Listing Date

Listing Date Thursday, April 21, 2016
BSE Script Code 539844
NSE Symbol EQUITAS
Listing In B Group of Securities
ISIN INE988K01017
IPO Price ₹110 per equity share
Face Value ₹10 per equity share

Listing Day Trading Information

.
IPO Price
Open
Low
High
Last Trade
BSE
₹110.00
₹144.00
₹134.15
₹147.00
₹135.25
NSE
₹110.00
₹145.10
₹134.30
₹147.00
₹135.20

Company Contact Information

Equitas Holdings Limited
410A, 4th Floor, Spencer Plaza,
Phase II, No. 769, Mount Road,
Anna Salai, Chennai 600 002
Phone: 044 4299 5000
Email: corporate@equitas.in
Website: http://www.equitas.in/

Equitas Holdings IPO Registrar

KFintech Private Limited

Phone: 04067162222, 04079611000
Email: einward.ris@karvy.com
Website: https://karisma.kfintech.com/

Equitas Holdings IPO Reviews / Ratings

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Equitas Holdings IPO FAQs

Equitas Holdings IPO is a main-board IPO of [.] equity shares of the face value of ₹10 aggregating up to ₹2,175.00 Crores. The issue is priced at ₹109 to ₹110 per equity share. The minimum order quantity is 135 Shares.

The IPO opens on Apr 5, 2016, and closes on Apr 7, 2016.

KFintech Private Limited is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.

The Equitas Holdings IPO opens on Apr 5, 2016 and closes on Apr 7, 2016.

Equitas Holdings IPO lot size is 135 Shares and the minimum order quantity is 135 Shares.

You can apply in Equitas Holdings IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don't offer banking services. Read more detail about apply IPO online through Zerodha, Upstox, 5Paisa, Edelweiss, ICICI Bank, HDFC Bank and SBI Bank.

The finalization of Basis of Allotment for Equitas Holdings IPO will be done on [.], and the allotted shares will be credited to your demat account by [.]. Check the Equitas Holdings IPO allotment status.

The Equitas Holdings IPO listing date is on Thursday, April 21, 2016.

Equitas Holdings IPO Message Board

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4025 Comments

1950. Eagleye |Jul 1, 2016 10:49:59 AM
IPO Guru IPO Guru (6100+ Posts, 20200+ Likes)
EQUITAS: Gets @RBI License To Start Small Finance Bank Operations

http://www.business-standard.com/article/finance/rbi-issues-small-finance-bank-licence-to-equitas-holdings-116070100138_1.html
1950.1. sunilbo |Jul 1, 2016 12:57:08 PM
Eagleye, with todays high being 191/- should we expect the 200/- mark is achievable very well before Diwali ? I remember you mentioning on EQH listing day giving a target of 200/- by Diwali.
1949. Eagleye |Jun 19, 2016 3:08:43 PM
IPO Guru IPO Guru (6100+ Posts, 20200+ Likes)
CNX Weekly Techno-Derivatives Snapshot (20/06/2016 – 24/06/2016):

Following is the Analysis on Several Indices including Nifty, Bank Nifty, Major Sectorial indices, All F&O Stocks, Small Cap & Mid Cap along with VIX & USDINR and Derivatives Outlook in addition to Global Markets outlook including Crude.

Despite weak & fragile Global Markets coupled with disappointing domestic macro-economic data, Indian Markets have ended the week on a flatter note amidst rising uncertainty ahead of the Brexit Voting & a retreat in Oil Prices.
With this close, Indian Markets have outperformed all Global Markets i.e European Markets closing 1-2% negative, Japan 6% negative on stronger Yen & US 1% negative.

Fed Rate hike fears has suppressed but Brexit fears have scaled higher. The probability of people voting for Brexit has increased sharply in the past week which has emerged as the major risk for global economy. On June 23, the referendum will be held whose outcome will be very crucial for all global asset classes. The increased anxiety has led to weakening of Global Stocks & sliding of British Pound, with investors sought safe havens such as the Gold and Yen.

Federal Reserve in its recently concluded FOMC meet left interest rates unchanged and signaled it’s likely to take an even slower approach on future hikes against a backs abroad including the Brexit fears & Chinese Economic Health.
Yellen while re-iterating that future hikes would be dependent on the forthcoming Jobs data, Inflation Data & global economic outlook has tempered its future expectations for the economy & indicated it will raise rates three times apiece in 2017 and 2018 instead of four. Also 6 out of 17 members now expect only one interest rate hike this year as against 1 out of 17 members since its previous April meeting.
This mellowing down of expectations suggests the U.S. economy is unlikely to grow on a much faster trajectory over the next several years, at least in the view of Fed officials.
With Fed officials long stressing that their rate policy actions are data dependent & not on a pre-set course, it would be safe to assume that Fed would raise rates gradually in September meet or even later after being convinced about the stable improvement in Jobs Market & Inflation moving closer to Fed’s target.
Hence we feel that Fed may at the max may hike the Interest rates once or twice, leave alone the Four hikes they were talking about the last time in December when they had raised the Interest rates for the first time since 2008.

The most recent discussion pertaining to the exit of RBI Governor Dr Rajan on his decision not to continue post his term getting over in September may unnerve the Domestic as well as FII investors. Gov Rajan has undoubtedly admired as one of the best Central Bankers which has also substantially improved International Credibility due to his commendable work for controlling the Growth & Inflation dynamics, stabilization of INR, putting the onus of the fiscal rectitude on the Government by not bowing down & making the government walk the talk, AQR surgery to manage the NPA mess of the Banks.
However we may understand one thing, “After Sachin Tendulkar has retired, Virat Kohli has taken over & is doing a commendable job making even Sachin Tendulkar more proud”.
India does not have any dearth of talent & any over discussion on this issue would give an impression to the outside world that there is a lack of talent in the country to succeed Dr Rajan & sustain the legacy & credibility that Gov Rajan has created.
This also makes it ultra-imperative for the Government to put forth a new name who may replace Dr Rajan as Markets may not take uncertainties & speculations positively.
Also with the sustained rebound of the Crude/Commodity prices & Inflation, it would be tough for the new Governor too to be able to act rapidly on bringing down the Interest Rates.

On the Domestic Macro-Economic Front,
CPI Inflation has accelerated upto 5.8% in May to a 19 Month high as compared to 5.5% in April making it the second consecutive month of higher trajectory entirely led by food inflation which has come at a 21-Month high. Higher than expected food inflation was largely seen in perishables, such as vegetables, eggs, meat, fish and pulses. Food Inflation has risen due to the ongoing heat wave & acute shortage of water; however some relief on these counts may be witnessed with the arrival of monsoon.
Last 2 readings have been much higher than the RBI’s threshold above 5-5.3% & is likely to rise with firm crude oil prices. which will be driving factor for RBI to refrain from further rate cuts.

WPI inflation too has shown signs of hardening, driven by mounting food prices. WPI inflation climbed to 0.8% in May’16, as food inflation touched 7.8%.
Even Manufactured product inflation has for the past three months also been hardening.

Having a good Monsoon is extremely imperative for reversing the factors leading to high food inflation & tame this higher inflation & incase Monsoon progress is not as per the expectations, it could have severe impact on the Inflationary conditions going ahead.

Last week, Industrial output (IIP) contracted by 0.8 per cent in April 2016, due to drastic fall in capital goods production and manufacturing activities.

Overall, the combination of higher-than-expected CPI & WPI inflation and weaker-than-expected IIP growth continue to present challenges to the policy makers whether to support growth or tame inflation.
Hence we believe the RBI from an Interest Rate Decision perspective is likely to wait till October, until further clarity emerges on the progress of the monsoon & effects of the full implementation of Seventh Pay Commission recommendations. Also with Crude Prices now remaining firm & global commodity prices also inching upwards could lead to inflation perking up in the coming months. Also, Since April 2014, RBI has cut the policy rate cumulatively by 150 bps, however he average base rate of banks have fallen by only 70 bps & hence rather than further cuts, focus would be on enabling better transmission.

India’s Trade Deficit expanded in May to $6.27 billion from $4.84 billion in April when it had hit its lowest level since March 2011.
However on an encouraging note, exports which acted as a laggard over the past 17 months have bucked the trend & the decline appears to be coming to an end with Exports ($ 22.17 billion) falling just 0.8% against a decline of 6.7% in April. Imports too fell 13.6% from a year earlier to 28.44$ billion & against a fall of 23.1% in April.
However the recent upsurge in commodity prices will lead to an uptick in the trade deficit figures further on account of the rising costs of imports while there is no visible marked improvement in exports.

From all of the above macro-economic data, it seems that the green shoots in the economy is still far away.

As far as progress for Monsoon goes, it is 25% below normal for the season. Still, It is too early to take a call as June forms just 18% of the season’s rainfall & majority of the rainfall is received in July & August. Also, Skymet has predicted monsoon @ 87% of LPA for the month. However progress of monsoon in July & August would be keenly watched & any disappointment against the expectations would be negative for the markets & the economy as a whole.

Going forward,
Movement of the Markets would be dictated by Brexit Referendum (23rd June), progress of Monsoon, Global Market trends, Crude Oil Prices, USDINR trend, FII Fund Flows, Global Market Trends & Dollar Index.



CNX Nifty (CMP 8170):

Going Forward,
Index will face resistance @ 8240-8260 which is 61.8% Fibonacci Retracement of the entire fall from 9119 (March 2015) & 6825 (March 2016) & Till 8250 is not crossed, expect a retest of supports of 8063-8050 ie 100 SMA zone.
Only on a break of 8040, accelerated downside upto 7920 – 7860 will be witnessed.
Cross-over above 8250 could lead to a further sustained upmove upto 8360-8420.

Overall, For the next week, Nifty Range could be 8040 – 8260 & For Remainder of the Series it could be 7950 – 8340.

Technically, Key Oscillators RSI, Stochastic & MACD are above their respective averages on the Weekly Charts but below their averages on Daily Charts leading to buying support on all dips.

On the Derivatives Front,
W-o-W Nifty saw OI down by 17.4%, with price remaining same W-o-W basis. Highest OI is concentrated at 8000PE and 8300 CE with 78-65lakh shares respectively; making a range of 8000-8300 levels in current series.



BANKNIFTY (CMP 17696):

Going Forward,
Index in the past few days is facing resistance @ 18000-18050 which is 61.8% Fibonacci Retracement of the entire fall from 20900 (Jan 2015) & 13400 (March 2016) & Till 18050 is not crossed, expect a retest of supports of 17000-1050 which is the next 50% retracement zone.
17050-17000 is a potential reversal zone & Index from 17000 could rebound back to 17900-18000 zone.
Only on a break of 17000, accelerated downside upto 16600-16450 will be witnessed.

Overall, For the next week, Nifty Range could be 17000 - 18050.

Technically, Key Oscillators RSI, Stochastic & MACD are above their respective averages on the Weekly Charts but below their averages on Daily Charts leading to buying support on all dips.

On the Derivatives Front,
BANKNIFTY W-o-W OI declined 14%, with price W-o-W closing negative 1%;
17000 PE OI is highest across all options 6.48, followed by 17500 PE 3.7 Lakh Shares; on CE front 18000 CE 5.46 Lakh Shares, 18500 CE 4.7 Lakh Shares.


NIFTY AUTO INDEX: CMP 8675 : Selling pressure likely to be witnessed on rises.

Going Forward, Index will face resistance @ 8850 & Till 8850 does not cross, expect a retest of 8450-8380 support zone.
On a cross-over above 8850, further short-covering possible upto 9100-9250.


NIFTY FMCG INDEX: CMP 21044 : Buying Support likely to be witnessed on dips.

Going Forward, Index will get support @ 20700 & Till 20700 holds is likely to move upto 21410-21560.
Break below 20700, retest of 20300-20200 will be on cards.

NIFTY IT INDEX: CMP 11290 : Selling pressure likely to be witnessed on rises.

Going Forward, Index will face resistance @ 11480 & Till 11480 does not cross, expect a retest of 10900-10800 support zone.
On a cross-over above 11480, further short-covering possible upto 11750-11900.


NIFTY METAL INDEX: CMP 2131 : Buying Support likely to be witnessed on dips.

Going Forward, Index will get support @ 2060 & Till 2060 holds is likely to move upto 2220-2260.
Break below 2060, retest of 1990-1950 will be on cards.


NIFTY PHARMA INDEX: CMP 10653 : Selling pressure likely to be witnessed on rises.

Going Forward, Index will face resistance @ 10900 & Till 10900 does not cross, expect a retest of 10300-10200 support zone.
On a cross-over above 10900, further short-covering possible upto 11550-11700.


USDINR (CMP 67.06):

Till USDINR holds 66.20, could witness an upmove upto 68.55-68.90.
Fall below 66.20 will lead to a retest of 65-64.20 zone.


DOW JONES (CMP 17675):

Dow Jones in the last week has closed 0.8% negative for the week & Going Forward, Index will face resistance @ 18000 & Till 18000 does not cross, expect a retest of 17300-17200 support zone.
On a cross-over above 18000, further short-covering possible upto 18350-18500


US DOLLAR INDEX (94.14)

After hitting a low of 91.9 in May, Index had rallied all the way upto 96 zone, however post last Friday’s Labour data which has ruled out an immediate Rate Hike in the Fed’s June meeting has led to a fall in Dollar Index upto 93.80 zone.
Going Forward, Till 95.50 zone does not cross, expect a retest of the previous lows of 92-91 zone.
Only on a cross-over above 95.50, Index would move upto 97.50-98 zone.


BRENT CRUDE ($ 47.98):

Also Oil prices have retreated from 52$ after hitting 6 months high post a report showed a jump in U.S. drilling rigs.
Going forward, till Crude Oil does not cross the Channel Resistance zone of 52, will retest lower support zone of 46-45.
Cross-over above 52 will lead to an upmove upto 56-59.


NSE Midcap: (CMP 13359)
Index has closed flat for the week inline with the broader indices.
Going Forward, Index will get support @ 13000 & Till 13000 holds is likely to move upto 13700-13750.
Break below 13000, retest of 12400-12200 will be on cards.


BSE Small Cap (CMP 11,435):
Index has closed 0.6% positive for the week outperforming with the broader indices which closed flat for the week.
Going Forward, Index will get support @ 11200 & Till 11200 holds is likely to move upto 11800-11850.
Break below 11200, retest of 10900-10500 will be on cards

VIX (17.35):
India VIX has closed 9% positive for the week & Going forward, till VIX holds 15.50, rebound upto 19.5-21 will be on the cards.
Break below 15.50, will lead to a retest of 13-12 Supports.

Nifty Futures have closed at a 7 points discount as against 20 points premium in the previous week.


Cumulative FII Derivatives Stats from 13/06/2016 to 17/06/2016:

Index Futures: -4055 Cr;
Index Options: +57 Cr;
Stock Futures: -1991 Cr;
Stock Options: +55 Cr

Cash Market:
FII: -135 Cr;
DII: -586 Cr.


Cumulative FII Derivatives Stats from 27/05/2016 to 17/06/2016 (Since Series Inception):

Index Futures: +529 Cr;
Index Options: +5621 Cr;
Stock Futures: -1624 Cr;
Stock Options: -119 Cr

Cash Market:
FII: +6004 Cr;
DII: -2886 Cr.
1948. HG |Jun 14, 2016 12:56:14 PM
when can we expect equitas to cross 200 ? ..it got stuck in 173 - 176.
1948.1. Eagleye |Jun 14, 2016 1:19:37 PM
IPO Guru IPO Guru (6100+ Posts, 20200+ Likes)
After September results ...
Maybe by Diwali this year
1947. Eagleye |Jun 13, 2016 12:48:07 PM
IPO Guru IPO Guru (6100+ Posts, 20200+ Likes)
CBDT has notified Cost Inflation Index for FY16-17 at 1125

Cost Inflation Index for FY15-16 was 1081
1946. Eagleye |Jun 12, 2016 2:55:23 PM
IPO Guru IPO Guru (6100+ Posts, 20200+ Likes)
CNX Weekly Techno-Derivatives Snapshot (13/06/2016 – 17/06/2016):

Following is the Analysis on Several Indices including Nifty, Bank Nifty, Major Sectorial indices, All F&O Stocks, Small Cap & Mid Cap along with VIX & USDINR and Derivatives Outlook in addition to Global Markets outlook including Crude.

Indian Equity markets are witnessing some profit booking around 8300 levels post the sharp rally seen in past few months. Last week, Sensex inched lower by 0.8% mainly led by the sharp fall in Technology sector (-3.2%).
During the past week, the probability of delayed Fed rate hike further gained momentum leading to correction in 10 year U.S. yields & Dollar Index. The dollar index went to new lows in recent period which led to appreciation of major global currencies including Yen. Nikkei was under pressure during the week as Yen appreciation shall adversely impact Japan’s financials, it being a trade surplus economy.
On the domestic front, RBI monetary policy was broadly in line with expectations though the language was slightly hawkish.
Going ahead, the built up to Britain’s exit from the EU remains the key overhang on the markets. On June 23, the referendum will be held.

Much weaker-than-expected previous week’s US May Jobs data on Friday pointed to labor market weakness and raised doubts if the economy was healthy enough to absorb an interest rate hike in the coming months. Hence the June Hike being well off the table is very clear keeping the odds for October hike still very much ON with July Probability being reduced to 21%.
After the dismal Jobs data report, Yellen in her last public appearance ahead of the Crucial June 14-15 meet said that she expects to raise interest rates only gradually and avoided specifying any exact timeframe, clear shift from May 27 stance where she said a move of hiking the Interest Rates was probable "in the coming months."
With the Fed''s June 14-15 meeting scheduled just a week before the British vote on June 23 & A "leave" vote, dubbed widely as Brexit is expected to roil financial markets, Fed may well want to wait out till July/October before raising rates & may want to let the threat of Brexit pass before tightening the Interest Rates.

A British exit from the European Union could be the one of the most disruptive event for financial markets in the near term as UK is the world''s fifth largest economy and has the world''s biggest global financial sector along with New York & a Brexit will trigger a fragmentation of the EU and freeze bond markets.

Bank of Japan (BoJ) will unveil monetary policy statement on June 15, 2016 & will hold a press conference on June 16, 2016, to look into the factors that affected the most recent interest rate decision, the overall economic outlook, Inflation and offers insights into future monetary policy decisions.
Bank of England (BOE) will decide on interest rate on June 16, 2016 where BOE monetary policy committee members will vote on where to set the rate.
China will unveil its Industrial Production data for May 2016 on June 12, 2016.

Also, The World Bank in the past week has slashed the Global growth Outlook for 2016 to 2.4% from 2.9% citing higher probability of a sharp slowdown in global economy & also cut its forecast for growth in 2017 to 2.8% from 3.1%.

Oil Prices have closed at their 8 Month highs largely with falling US Inventories, concerns about potential supply shortage concerns due to threat of terror attack on Nigerian Oil fields leading to a shut-down & slump in the Dollar.

RBI in its Monetary policy have left the Interest Rates unchanged & would like to wait until August & would have a close focus on few factors including, Actual distribution of Rainfall, the pace of Bank’s policy transmission, Inflationary concerns arising out of impact of implementation of 7th Pay Commission recommendations, US Fed stance & Brexit Referendum clarity.
Retaining its accommodative stance, RBI has spelt caution with Inflation spiking up in the past few months following firm Crude Prices & global commodity prices also inching upwards along with a rise in prices of domestic food items.
Also, Since April 2014, RBI has cut the policy rate cumulatively by 150 bps, however he average base rate of banks have fallen by only 70 bps & hence rather than further cuts, focus is on enabling better transmission.
Industrial output (IIP) contracted by 0.8 per cent in April 2016, due to drastic fall in capital goods production and manufacturing activities.
Contraction of 1.6% in January flowed by a 2% growth in February & 0.3% growth in March with the current reading of contraction of 0.8% despite a low base does underline a fact that a gradual recovery is still away.

Disappointing IIP numbers (with volatile trend) combined with the methodological concerns pertaining to the GDP numbers, Continuous decline in export growth in the Last 4 Trade data reading has made the Government’s work cut out.
Hence until an uptick is there in Export Growth, coupled with containment of rising NPA’s & improvement in private investment sentiment, etc.; a quick sustainable turnaround in the economy in the near term may be a few quarters away.

The India Meteorological Department (IMD) on Wednesday, 8 June 2016, announced the arrival of the monsoon rains in Kerala. This marks the beginning of the 4-month June-September southwest monsoon season in the country.
IMD in its Second Monsoon ForeLPA).
IMD has also forecasted 107% of normal rainfall in July and 104% in August, which is positive for rain-fed Kharif crops which will inturn lead to a downward pressure on the overall inflation level in the economy.
News of Onset of Monsoon have already been priced in, now how its more important as to how the actual rainfall distribution pans out.

Going forward,
Movement of the Markets would be dictated by Fed Meet (14-15th June), Bank of Japan Meet (15th June), Bank of England Meet (16th June, India CPI (13th June), WPI (14th June), Trade Data, progress of Monsoon, Global Market trends, Crude Oil Prices, USDINR trend, FII Fund Flows, Global Market Trends & Dollar Index.



CNX Nifty (CMP 8170):

Going Forward,
Index will face resistance @ 8240-8260 which is 61.8% Fibonacci Retracement of the entire fall from 9119 (March 2015) & 6825 (March 2016) & Till 8260 is not crossed, expect a retest of supports of 8063-8050 ie 100 SMA zone.
8050-8040 is a potential reversal zone & Index from 8040-8050 could rebound back to 8250 zone.
Only on a break of 8040, accelerated downside upto 7920 – 7860 will be witnessed.

Overall, For the next week, Nifty Range could be 8040 – 8260 & For Remainder of the Series it could be 7980 – 8340.

Technically, Key Oscillators RSI, Stochastic & MACD are above their respective averages on the Weekly Charts but below their averages on Daily Charts leading to buying support on all dips.

On the Derivatives Front,
W-o-W Nifty saw OI added by 1.97%, with price moving down by 0.62% W-o-W basis. Highest OI is concentrated at 8000 PE and 8300 CE with 69-55 lakh shares respectively; making a range of 8000-8350 levels in current series.



BANKNIFTY (CMP 17828):

Going Forward,
Index in the past few days is facing resistance @ 18050-18100 which is 61.8% Fibonacci Retracement of the entire fall from 20900 (Jan 2015) & 13400 (March 2016) & Till 18100 is not crossed, expect a retest of supports of 17200-17250 which is the next 50% retracement zone.
17250-17300 is a potential reversal zone & Index from 17250 could rebound back to 18300 zone.
Only on a break of 17250, accelerated downside upto 16900-16700 will be witnessed.

Overall, For the next week, Nifty Range could be 17300 - 18150.

Technically, Key Oscillators RSI, Stochastic & MACD are above their respective averages on the Weekly Charts but below their averages on Daily Charts leading to buying support on all dips.

On the Derivatives Front,
BANKNIFTY saw OI addition by 3.48% with price moving up by 0.84%;


NIFTY AUTO INDEX: CMP 8688 : Selling pressure likely to be witnessed on rises.

Going Forward, Index will face resistance @ 8850 & Till 8850 does not cross, expect a retest of 8450-8380 support zone.
On a cross-over above 8850, further short-covering possible upto 9100-9250.


NIFTY FMCG INDEX: CMP 20704 : Selling pressure likely to be witnessed on rises.

Going Forward, Index will face resistance @ 21000 & Till 21000 does not cross, expect a retest of 20250-20100 support zone.
On a cross-over above 21000, further short-covering possible upto 21500-21800.


NIFTY IT INDEX: CMP 11229 : Selling pressure likely to be witnessed on rises.

Going Forward, Index will face resistance @ 11480 & Till 11480 does not cross, expect a retest of 10900-10800 support zone.
On a cross-over above 11480, further short-covering possible upto 11750-11900.


NIFTY METAL INDEX: CMP 2113 : Buying Support likely to be witnessed on dips.

Going Forward, Index will get support @ 1990 & Till 1990 holds is likely to move upto 2110-2160.
Break below 1990, retest of 1920-1890 will be on cards.


NIFTY PHARMA INDEX: CMP 10657 : Selling pressure likely to be witnessed on rises.

Going Forward, Index will face resistance @ 11000 & Till 11000 does not cross, expect a retest of 10400-10300 support zone.
On a cross-over above 11100, further short-covering possible upto 11550-11700.
      

USDINR (CMP 66.95):

Till USDINR holds 66.20, could witness an upmove upto 68.15-68.90.
Fall below 66.20 will lead to a retest of 65-64.20 zone.


DOW JONES (CMP 17865):

Dow Jones in the last week has closed 0.3% positive for the week & Going Forward, Index will get support @ 17600 & Till 17600 holds is likely to move upto 18100-18200.
Break below 17600, retest of 17200-17000 will be on cards.


US DOLLAR INDEX (94.65)

After hitting a low of 91.9 in May, Index had rallied all the way upto 96 zone, however post last Friday’s Labour data which has ruled out an immediate Rate Hike in the Fed’s June meeting has led to a fall in Dollar Index upto 93.80 zone.
Going Forward, Till 95.50 zone does not cross, expect a retest of the previous lows of 92-91 zone.
Only on a cross-over above 95.50, Index would move upto 97.50-98 zone.


BRENT CRUDE ($ 52.08):

Going forward, till Crude Oil does not cross the Channel Resistance zone of 54, will retest lower support zone of 47-45.
Cross-over above 54 will lead to an upmove upto 58-59.


NSE Midcap: (CMP 13330)
Index has closed 0.5% positive for the week outperforming with the broader indices which closed 0.7% negative for the week.
Going Forward, Index will get support @ 13000 & Till 13000 holds is likely to move upto 13700-13750.
Break below 13000, retest of 12400-12200 will be on cards.


BSE Small Cap (CMP 11,362):
Index has closed 2% positive for the week massively outperforming with the broader indices which closed 0.7% negative for the week.
Going Forward, Index will get support @ 11100 & Till 11100 holds is likely to move upto 11700-11750.
Break below 11100, retest of 10600-10400 will be on cards

VIX (15.97):
India VIX has closed 6% positive for the week & Going forward, till VIX holds 14.50, rebound upto 17-18 will be on the cards.
Break below 14.50, will lead to a retest of 13-12 Supports.

Nifty Futures have closed at a 19 points premium as against 16 points in the previous week.


Cumulative FII Derivatives Stats from 06/06/2016 to 10/06/2016:

Index Futures: +1393 Cr;
Index Options: +2153 Cr;
Stock Futures: -905 Cr;
Stock Options: -355 Cr

Cash Market:
FII: +3050 Cr;
DII: -1087 Cr.


Cumulative FII Derivatives Stats from 27/05/2016 to 10/06/2016 (Since Series Inception):

Index Futures: +4584 Cr;
Index Options: +5564 Cr;
Stock Futures: +367 Cr;
Stock Options: -174 Cr

Cash Market:
FII: +6139 Cr;
DII: -2300 Cr.
1946.2. Arup |Jun 12, 2016 10:13:25 PM
IPO Mentor IPO Mentor (900+ Posts, 300+ Likes)
GOOD.....REALY GOOD
1946.3. Chintan Thaker |Jun 13, 2016 1:54:05 AM
Thanks for the news & view....
1945. Eagleye |Jun 11, 2016 7:32:26 PM
IPO Guru IPO Guru (6100+ Posts, 20200+ Likes)
Equitas Holdings Limited

Schedule of meetings next week
With Analysts/Investors:


13/Jun – Amansa Capital
14/Jun – Argonaut
15/Jun – Equirus Securities
1944. MahiMahi |Jun 8, 2016 5:35:18 PM
any one can give green signal for EQUITAS Stock to enter today? or should i wait and buy in deep?
1943. Eagleye |Jun 8, 2016 11:53:57 AM
IPO Guru IPO Guru (6100+ Posts, 20200+ Likes)
Motherson Sumi announces :- 1:2 Bonus on 10th June''15


See Wealth Creation of Motherson Sumi :-

Motherson came out with IPO at 25 INR per share in April-1993
Only 2500 INR of investment on 100 shares.
The Company''s Bonus History and Multiplication of Shares as follows :-

1997-98: Bonus 1:2 - 100 shares became 150 shares

2000-01: Bonus 1:2 - 150 shares became 225 shares

2002-03: Split into Rs.5 paid up - 225 shares became 450 shares

2003-04: Split into Rs.1 paid up - 450 shares became 2250 shares

2004-05: Bonus 1:2 - 2250 shares became 3375 shares

2007-08: Bonus 1:2 - 3375 shares became 5062 shares

2012-13: Bonus 1:2 - 5062 shares became 7593 shares

2013-14: Bonus 1:2 - 7593 shares became 11389 shares

So, 100 shares became 11,389 shares.

Current market value of 11,389 shares=
11,389 shares*Rs.489(Current Value)=55,69,221 INR

So, Total Value of Rs.2500 invested in IPO including cumulative dividend is Rs. 56,71,602 as at 10th June, 2015.

Thus, 2268 times increase in Investment Value in 22 years!!!

Patience is bitter, but its fruit is sweet.
1943.4. Indy |Jun 9, 2016 3:07:22 AM
Appreciate ur eye opener message to members of this forum
1943.5. NAND KISHORE PARWAL |Jun 9, 2016 7:43:41 AM
Top Contributor Top Contributor (200+ Posts, 100+ Likes)
Moderson sumi CMP is 289.00 only. Calculations by CMP 489.00 are wrong.Please correct the calculations
1942. Indy |Jun 7, 2016 9:20:47 AM
But both are moving in tandem
1942.1. Eagleye |Jun 7, 2016 9:35:42 AM
IPO Guru IPO Guru (6100+ Posts, 20200+ Likes)
Well ... I had posted my trade on real-time basis

1930.1. Eagleye Jun 3, 2016 2:02:05 PM IST
I have sold my Ujjivan @400.40 (Circuit) today ... and bought equivalent value of Equitas @177(CMP)

Coz Ujjivan has overshot its relative valuation as compared to Equitas















You may evaluate the relative performance thereafter ...
1941. Eagleye |Jun 7, 2016 9:01:34 AM
IPO Guru IPO Guru (6100+ Posts, 20200+ Likes)
I draw your attention to my posting on Friday ...



Eagleye Jun 3, 2016 10:16:35 AM IST

Ujjivan IPO was underpriced vis-a-vis Equitas IPO ... now the gap has been filled...

1) Ujjivan has a debt-equity ratio of 4.5X ... whereas Equitas is 2.5X .. giving Equitas more leeway for growth in the future

2) Ujjivan is only in Microfinance ... whereas Equitas has more more diverse business .. i.e. of vehicle finance, gold loans, MSME funding ... this will help is scale up its banking operations faster than Ujjivan

... hereon Equitas will be a better performer than Ujjivan over the next 12-24 months


At current prices Ujjivan is 2.85X NAV .. and Equitas is 3X NAV ... has a long way to go to catch up with SKS
1941.1. parth shah |Jun 7, 2016 7:40:09 PM
egal eye can u tell me how calculate market price ?? on the basis of pe n eps plss tell me n thanx in advance
1940. HG |Jun 5, 2016 10:55:52 PM
Hi eagleye,septa sir,kemka ji
Should I hold the shares of equitas? Pls provide your useful suggestions
1940.1. Khemka |Jun 5, 2016 11:20:10 PM
IPO Guru IPO Guru (1000+ Posts, 400+ Likes)
Equitas running because of ujjivan bull run.it seems equita may drop to bellow 160 once more time .ujjivan is better seems to hold
1939. Eagleye |Jun 5, 2016 5:06:48 PM
IPO Guru IPO Guru (6100+ Posts, 20200+ Likes)
KaleidoScope June 2016 issue
on micro-finance and small bank

http://online.fliphtml5.com/laia/frgs/#p=1

Interesting read for the weekend
1938. Earthking |Jun 4, 2016 7:55:06 AM
Top Contributor Top Contributor (200+ Posts)
http://www.livemint.com/Money/tNS3o1Vb1qZ6FH7gu08JmO/Small-finance-banks-The-new-market-darlings.html

1937. Eagleye |Jun 3, 2016 8:28:27 PM
IPO Guru IPO Guru (6100+ Posts, 20200+ Likes)
Notes from the Sohn India Conference

(Disclaimer: The stocks mentioned in this post are for informational purpose only and not a recommendation to buy/sell)

Attended the inaugural Sohn India Conference today.

The Conference opened with opening remarks by Nitin Saigal, Founder &CIO, Kora Management

He explained the format of the Conference:
Every speaker will be allotted 15 minutes
The speakers have to give their best idea
No Q&A



The 1st Speaker was Raamdeo Agarwal of Motilal Oswal:

His best stock Idea was Interglobe Aviation i.e Indigo
He called it "A terrific investment in a terrible business"
He said it had all the aspects of a terrific business
Growing rapidly
Insignificant capex
Very very profitable
He then explained the company with the help of his Q-G-L-P framework (i.e. Quality-Growth-Longevity-Price)
Really enjoyed the clear thinking and analysis of Raamdeoji



The 2nd Speaker was Sunil Singhania of Reliance Mutual Fund:

Being from Mutual Fund Industry, compliance demands he can''t give stock picks but can speak on sectors
He started his presentation in a very unusual fashion-by showing two Bollywood scenes
One scene was 20 years back where the Villain was drinking whiskey. The second scene was where superstar Deepika Padukone is drinking
He explained that earlier Villains used to drink and now hero/heroine drink. Drinking has become socially acceptable
He mentioned a startling fact-"One third of all people born after year 2000 are Indians"
The young demography of India, the low per capita consumption, the social acceptability makes India Alcohol story a compelling one
He said globally liquor companies were large value creators for shareholders and India shouldn''t be any different
Next was a video clip from Jeff Gundlach, the biggest Bond Fund Manager in the world. He mentioned that he is very bullish about India and has invested in Indian equities which he "plans to hold for a generation" !



The 3rd Speaker was S Naren of ICICI Prudential Asset Management:

Being from Mutual Fund Industry, compliance demands he can''t give stock picks but can speak on sectors
His favourite sector was the "Hospital" Sector
He feels that growing medical tourism and growing coverage of domestic Medical Insurance augurs well for the Sector
He calls his sectoral view a "Multi Decade" view
He made an interesting observation about the current state of the markets "Anything that is cheap is high quality and anything that is high quality is expensive"



The 4th Speaker was Kenneth Andrade, former Head of Investments, IDFC Asset Management:

His favourite stock pick was Coromandel International
He feels that the fertilizer subsidy regime is going away and the Direct Benefit Transfer scheme will put 11.5 Billion $ straight in the hands of farmers
This should augur well for makers of complex fertilizers like Coromandel International



The 5th Speaker was Shiv Puri of TVF Capital Advisors:

His favourite stock pick was Repco Home Finance
He feels this company is where HDFC was in 1995 and is capable of giving 45x returns in the next 20 years
The external opportunity in semi-urban and rural is around 400 Billion $ which Repco is in a good position to exploit


Then there was a short tea break.
Amused to see Rakesh Jhunjhunwala smoking in the Taj Ball Room during the break.
Guess no smoking rules don''t apply to Billionaires



The 6th Speaker was Rukshad Shroff of J.P. Morgan Asset Management:

His first idea was a large private bank famed for its low NPAs
He felt it could deliver 3x returns by 2026
He felt that even at current valuations, it was a good buy because "Good Businesses overcome Valuations". I thought that was a great line
His next idea was a international fast food franchise. He did a top down approach and came to an estimate where if the business does well, the company''s market cap should be 7x the current market cap



The 7th Speaker was S Naganath of DSP Blackrock:

He first gave his view on global markets, said by Sept/Oct he expects them to have a significant correction of atleast 20%
He said even Indian markets will get impacted by this...this would offer the "last opportunity to buy Indian Equities Cheap"
His sectoral pick was PSU Banks. He said everyone hates them now but they should do well from a 3 year perspective
Then he explained an idea he had called "TRICEPS" - Tax Rate Insurance for Creating Employment in Public Services
As per this idea, Govt collects premium from individuals/corporates and promises not to raises taxes. It then uses the money to create jobs
I found this idea bizarre and envy Naganath for the seriously awesome stuff that he must be smoking to think of such crap



The 8th speaker was Shanker Sharma of First Global:

He said his style of investing was to look for companies with problems
He especially likes companies with D/E ratio of greater than 5
His first stock was Kiri Industries
This is a niche chemicals player which is growing its business, paring down debt and owns a significant stake in Dystar, one of world''s largest Dyes Companies
The next stock idea he had A2Z Infra
He said they are reducing debt and have a product called Magic Genie which ought to do well



The 9th speaker was Akash Prakash of Amansa:

His stock pick was Federal Bank
He said that it''s book was better than "ICICI Bank or Axis Bank. Nobody knows what''s in them !" Ouch !
He explained why the Bank under-performed for the last 3 years
He said the Bank should do well going forward as its corporate loan book/Gold loan book should grow and the cost cutting measures they are undertaking



The last speaker was Rakesh Jhunjhunwala:

Surprised to see that he had to be helped to get on stage
His first stock idea was Tata Motors
He expected JLR to grow by 18% and domestic sales to grow by 20%
Said he expects it to be in the top 3 companies in India in terms of revenues and profits
His next stock pick was DLF
Said its debt reduction efforts, lease income and land bank made it a buy
He remarked that the entire real estate industry in India has a market cap of less than one pharma company-Lupin.
He admitted DLF is a "dog" in terms of investor perception. But "he had learned in life that''s where the opportunities lie"



The conference ended with a video clip of Stanley Druckenmiller''s famous "The Fed has no endgame" presentation.

On the way out, I was surprised to see that most of the Conference participants had come via Uber/Ola.
I guess a mega trend is playing out right before our eyes.
1937.6. Eagleye |Jun 4, 2016 11:55:49 AM
IPO Guru IPO Guru (6100+ Posts, 20200+ Likes)
In 07-08, the entire Pharma Industry had a MCap less than that of DLF ... Now whole Real Estate industry has MCap less than Lupin ... How times change ... !!
1937.7. Scanner |Jun 4, 2016 11:30:03 PM
Good to read this. Wish i could participate in these conferences.
Would like to analyse more on coromandal. Considering d DBT scheme of govt , it can be good bet.
Once again i would like to thanks eagleye, septa sir, rks sir for their guidance. Special greet to eagleye, which provide us price guidance.
We can undertake financial analysis, based on our knowledge but technical guidance is also important , which is taken care by eagleye so well.
I had been impressed with the Alkem show, it crosses 1350 level from 1200.
People who had invested should wait for 1750 level before year end. I will certainly command PE multiple of 30+ by year end considering its consistent better than expected operational performance
1936. Eagleye |Jun 3, 2016 7:52:01 PM
IPO Guru IPO Guru (6100+ Posts, 20200+ Likes)
Re: Equitas Holdings Limited

You may like to look at the Company''s most recent Investor Presentation at the weblinks herebelow

Equitas
http://www.bseindia.com/xml-data/corpfiling/AttachHis/2399E389_7BFF_44AB_B481_5D92104FD0A1_163334.pdf

http://www.bseindia.com/xml-data/corpfiling/AttachHis/C55DD956_995A_4CDA_81C4_3542525B779E_194335.pdf

As per the above:
EPS for FY15-16 is 6.21
Book Value is 49.69
1936.3. Eagleye |Jun 3, 2016 10:54:25 PM
IPO Guru IPO Guru (6100+ Posts, 20200+ Likes)
Re: SKS Microfinance

You may like to look at the Company''s most recent Investor Presentation at the weblinks herebelow

SKSMirco
http://www.bseindia.com/xml-data/corpfiling/AttachHis/46462AFE_7847_4021_A9E3_AF8454C20AE8_193402.pdf

As per the above:
EPS for FY15-16 is 23.60
Book Value is 108.60
1936.4. Deeep |Jun 4, 2016 12:38:49 AM
sorry i dint know that we shud look at pbv ratio..
nd dnt call me sir plz :)
1935. Deeep |Jun 3, 2016 4:54:24 PM
eagleye equitas eps is around Rs.5 on consolidated bases..
hence at CMP PE ratio will be around 35.. however the industry pe is 25..
isnt it at the higher side.. please correct me if my eps is wrong..
1935.1. Eagleye |Jun 3, 2016 8:07:19 PM
IPO Guru IPO Guru (6100+ Posts, 20200+ Likes)
EPS is 6.20
1934. dvm dvm |Jun 3, 2016 3:35:13 PM
Thank you very much "BAWWI"
TO DAY SOME PEOPLE GOT THE MEANING OF ''MARKET PANDIT''...................,..............
1933. Hiren Umarwadia |Jun 3, 2016 2:11:16 PM
Ujjivan already 400, Eagleeye, your Diwali target already achieved...Ujjivan going great guns, and so is Equitas....What is the next target for Ujjivan? Der aaye durust aaye...
1933.1. Eagleye |Jun 3, 2016 3:02:05 PM
IPO Guru IPO Guru (6100+ Posts, 20200+ Likes)
I have sold my Ujjivan @440.40 (Circuit) today ... and bought equivalent value of Equitas @177(CMP)

Coz Ujjivan has overshot its relative valuation as compared to Equitas
1933.2. Eagleye |Jun 3, 2016 3:14:39 PM
IPO Guru IPO Guru (6100+ Posts, 20200+ Likes)
440.40 was a typological error
Please read it as 400.40
1932. IPO Riders |Jun 3, 2016 1:06:57 PM
me too holding 3200 of IPO my current holding loss of PCL will be covered. septaji what to do with PCL can i add this level or wait for some time to improve or exit?

please reply.
1931. Hiren Umarwadia |Jun 3, 2016 11:49:28 AM
Equitas at 175 & Ujjivan Touched 372...Septaji, Eagleeye...Kudos...well on the way to book handsome profit...still holding 2200 shares of Equitas...!! waiting for 200 target...!!
1931.2. Karan |Jun 3, 2016 2:13:09 PM
Top Contributor Top Contributor (200+ Posts)
Very encouraging words for Ujjivan holders Septa sir,,,,,but hope no one go serious and sell his house to buy ujjivan.....
1931.3. Septa |Jun 3, 2016 3:59:42 PM
IPO Guru IPO Guru (4000+ Posts, 4600+ Likes)
actual it just a slag in australia safe as house.... I actual said this when ujjivan on 226