Bharti Infratel Limited IPO (Bharti Infratel IPO) Detail

Incorporated in 2006, Bharti Infratel Limited is a provider of tower and related infrastructure. Bharti Infratel is one of the world's largest telecom tower infrastructure providers which deploys, owns and manages telecom towers and communication structures for all wireless operators. The business of Bharti Infratel and Indus is to acquire, build, own and operate tower and related infrastructure.
Bharti Infratel and Indus currently provide access to their towers primarily to wireless telecommunications service providers. Bharti Infratel's and Indus's three largest customers are Bharti Airtel (together with Bharti Hexacom), Vodafone India and Idea Cellular. They are the three leading wireless telecommunications service providers in India by wireless revenue.
In India, Infratel has over 34,000+ towers, across 18 states, and 11 Telecom circles, and still growing. Bharti Infratel also has a 42% stake in Indus Towers which was created as a Joint Venture between Bharti Infratel, Vodafone and Aditya Birla Telecom to hive off the Towers business in 15 telecom circles.
Company Promoters:
The promoter of the company is Bharti Airtel.

Objects of the Issue:
The objects of the issue are to:1. Installation of 4,813 new towers;
2. Upgradation and replacement on existing towers;
3. Green initiatives at tower sites;
4. General corporate purposes; and
5. Benefits of listing of the Equity Shares on the Stock Exchanges.
Issue Detail:
  »»  Issue Open: Dec 11, 2012 - Dec 14, 2012
  »»  Issue Type: 100% Book Built Issue IPO
  »»  Issue Size: 188,900,000 Equity Shares of Rs. 10
  »»  Issue Size: Rs. 3,966.90 - 4,533.60 Crore
  »»  Face Value: Rs. 10 Per Equity Share
  »»  Issue Price: Rs. 210 - Rs. 240 Per Equity Share
  »»  Market Lot: 50 Shares
  »»  Minimum Order Quantity: 50 Shares
  »»  Listing At: BSE, NSE

5% Discount for Retail Bidders

The promoter of Bharti Infratel has offered 5% discount to retail investors in Bharti Infratel IPO shares. The discount will be given on the final price of the IPO shares.

Thanks & Regards,

Credit Analysis and Research Limited IPO

 Kindly note the following :-

Credit Analysis and Research Limited IPO.

BRLM:                                                Kotak , BofA Merrill Lynch, ICICI Sec , Edelweiss , IDBI , SBI Cap

Syndicate Member:                         Kotak Securities Limited/ Edelweiss Securities Limited/

                                                            SBICAP Securities Limited

Issue Period:                                    Dec 07 – Dec 11, 2012

Price Band:                                       Rs. 700 to Rs. 750

Lot Size:                                            20 Equity Shares

Issue Size:                                                      Rs. 504 – Rs. 540 Crs

Registrar:                                          Karvy Computershare Private Ltd.

Retail Appl Size:                               Rs.2,00,000/-

Issue Size:                                        71,99,700 Equity shares of  face value Rs.10 each through offer for

                                                            sale by selling shareholders   

QIB Book:                                         35,99,850 Equity Shares (50% of Net issue size)
Retail Book:                                     25,19,895 Equity Shares  (35% of Net issue size)
HNI Book:                                       10,79,955 Equity Shares  (15% of Net issue size)

Listing:                                             NSE & BSE

IPO Grading: Company has been exempted by the Securities and Exchange Board of India (“SEBI”) (pursuant to Regulation 109(b) of the SEBI Regulations) from obtaining IPO grading for the Offer.

The Company and the Selling Shareholder may, in consultation with the BRLMs, allocate up to 30% of the QIB Portion to Anchor Investors on a discretionary basis.

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Asset quality improvement likely; upgrade to BUY- SBI ::: Religare research

Asset quality improvement likely; upgrade to BUY
We upgrade SBIN to BUY with a TP of Rs 2,540. While the bank reported a weak 2Q, we see asset quality pressures abating at the margin. NIMs could see only limited compression and may pick up with loan growth revival. We also believe SBIN would be the biggest beneficiary in a falling interest rate scenario due to its high mid-corporate/SME exposure. While a likely capital infusion could be a near-term overhang, it would be a long-term positive given the rising capital requirements under Basel III.

Ranbaxy Laboratories Launch of Absorica – A new beginning ::Prabhudas Lilladher

􀂄 Launches Absorica (Isotretinoin) in the U.S: Ranbaxy’s launch of Absorica
(Isotretinoin) in the US is a key event as we believe that the product will become
the largest selling product for the company in the US latest by 2014 (excl. FTF
products). The company has licensed this product from Cipher, a Canadian
company. Absorica is indicated for the treatment of severe recalcitrant nodular
acne in patients who are 12 years of age and older.
􀂄 Absorica is a beginning in the quest to regain loss of revenue in US due to
USFDA issues: Apart from FTF launches, Absorica is a major product launch since
the company’s US business was impacted by USFDA ‘Import Alert’ in 2008.
Before the USFDA issues cropped up at Ranbaxy, Isotretinoin was the largest
selling product for the company, with annual revenue of ~US$100m in 2007.
However, the company had to discontinue the product due to import alert on
Dewas and Paonta Sahib facilities in 2008. Apart from being the largest selling
product, it was one of the most profitable one for the company due to limited
competition and branded nature of the product
􀂄 Even after four years, the opportunity remains attractive: Despite Ranbaxy
being out of this product market for the last four years, Isotretinoin remains a
lucrative market with limited competition due to complexities involved in the
development and manufacturing of the product. Currently, there are only three
generic companies selling Isotretinoin in US viz. Teva, Mylan and Douglas
Pharma, with Teva holding majority market share. The total market size of the
product is ~US$400m. Now with the entry of Ranbaxy, it becomes a four-player
market.

Invest abroad to hedge inflation and currency risks in overseas education:: Business Line

I am 38 years old and my dependents are my wife and two sons aged 11 and 5. I have a life cover from my employer for Rs 1.1 crore and unlimited medical cover.

My current savings are Rs 2.4 crore, of which 65 per cent is in equity, including overseas investments. I have invested Rs 1 lakh in gold. I have not invested in real estate, because I may live abroad till retirement. My income in India is taxed at 10 per cent. My monthly surplus for the next four years will be Rs 3 lakh.

My goals are: buying a house in 2016 for Rs 1.5 crore; retirement in 2030 with Rs 5 crore. Is it possible for me to retire before 55? For elder son’s higher education, I would need $50,000 per year during 2019 to 2025 at today’s cost.

I would also need to provide for my second son’s education during 2025 to 2031. I would need Rs 20 lakh for my elder son’s wedding in 2027 and Rs 25 lakh for younger son’s wedding in 2032.

— Rakesh

On the Cockroach Approach to Investing ::aditya rana

Dylan Grice, strategist at Soc Gen, is one of my favourite out-of-the box thinkers and his regular piece “Popular Delusions”  is  always a  thought provoking and enjoyable read. His latest  missive  is a farewell note (he is leaving Soc Gen to join a hedge fund) and provides important insights into investment management , written in his  inimitable  humorous  style. To summarise:

-Successful investing  is about survival – and in this respect there are few creatures which can top the lowly cockroach.

-Cockroaches have been around for 350 million years, appearing after the second of the earth’s five mass extinctions, with the last one wiping out the dinosaurs.

-Cockroaches follow a simple and robust  method of survival – by moving in the opposite direction to gusts of wind which might signal an approaching predator.

-Their approach  to survival has  significant relevance to  investing – it isn’t necessarily about being clever  or devising optimal strategies – it’s about having a simple method to thrive.

-When he started work in 1997, the only place to be was equities as  this was the era of the tech bubble  and the book “Dow 36,000”.

- Pension funds and insurance companies had upto 85% of their assets in equities,  which had outperformed bonds without much higher risk – the maximum real peak-to-trough decline (“drawdown”) for equities was 17% (1990) and for bonds it was 13% (1994 –see chart below).

-Moving a decade later to today, we face a similar environment with institutional investors having  replaced most of their equity holdings with bonds, with equities suffering two 50% drawdowns over the course of the decade while bonds holding firm (maximum 10% drawdown) and actually outperforming equities (see chart below).

Why investors should not forget crisis lessons:: Business Line

“We cannot afford to forget the lessons of the crisis …. Amnesia causes financial crises.”

— US Treasury Secretary Timothy Geithner, March 2012

The recent financial crisis imposed significant costs on investors, economies and their societies. The risk of the crisis and its cost to investors might have been reduced if we had not forgotten the lessons from financial history.

Financial amnesia is when financial market participants forget or behave as if they have forgotten the lessons from financial history.

It is dangerous because it disarms investors, market participants and even regulators. It causes risk to be misread and creates bubbles which eventually burst, sometimes on a global scale.

The events that resulted in the financial crisis of 2008 were a perfect reminder of ‘financial history’ repeating itself. The most important question to ask ourselves now is: How does an investor develop an amnesia anti-dote?

Developing an amnesia anti-dote requires investors to learn the three lessons that are always overlooked. These apply to investors, financial institutions and regulators.

First World Wealth drives Fund flows:: Business Line

LKP BYTES : Escorts (Buy @ 66 for a 3 month price target of 82)

The story so far ………..

The Rs40bn Escorts is the third largest player in agricultural machinery in India after M&M and TAFE with a market share of 11%. Its Farmtrac & Powertrac brands of higher HP tractors have a strong brand equity in North India.

One would obviously ask the question – Why bother at all to look at a Number – 3 player in a segment like Tractors which is not in the best of health at present and more so Escorts which is presently running a business with an ROE and EBIDTA of 5%.

The story ahead ………..

Promoters increased their holding in Escorts from 28% to 32% during CY’12 and in a strategic move (not in the best interests of minority shareholders) merged group companies into the business of Construction Equipment – CE and Finance into Escorts to shore up their holding in the company to 42% now thereby putting to rest all possible attempts of a take over.

Post this merger, Tractors now form 75% of revenues, CE forms 16% and the balance 9% comes from Railways & Auto Components. The merger now exposes Escorts to the investment cycle in India as it is a key monitorable for the CE business which is presently witnessing challenging times.

Escorts sells ~60,000 tractors annually and we believe that with a steady rise in MSP of crops and improving rural incomes augurs well for the industry going forward. The recent rise in MSP for Rabi crops would in our view boost incomes in North India which is the main stay for the agricultural machinery business of Escorts. We are optimistic on the ability of Escorts to emerge as a Pan India player in Tractors going forward and improve its EBIDTA margins by 100bps annually for the next two years.

Escorts trades at 0.4x book and 11x historical earnings and is a play on the agricultural equipment and construction equipment theme in India. We recommend a BUY on Escorts trading at 9x one-year forward earnings with a 3 month price target of Rs82.

Thanks and Regards

LKP Advisory

Infrastructure investment - stalling or taking off?

"By Dr Arjuna Sittampalam, Research Associate with EDHEC-Risk Institute and Editor, Investment Management Review

Infrastructure has been recognised as a potential solution to the world’s economic difficulties since the credit crisis and holds the promise of providing a bonanza for the private sector worldwide. Though bedevilled by politics and hampered by other obstacles, the signs are that the sector is beginning to take off."

"The BRICs

None of the BRICs countries has satisfactory infrastructure. According to a World Economic Forum report on the quality of infrastructure, China, India, Russia and Brazil rank 69, 86, 100, and 104 respectively out of 142 countries surveyed.

In India and Russia, though infrastructure needs updating, there is no convincing sign of a political determination to achieve it quickly."

Full article at 

http://www.edhec-risk.com/latest_news/featured_analysis/RISKArticle.2012-11-09.3029?newsletter=yes

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Regards

SGX Nifty 5,902.00 -11.50; Markets have down trend

SGX Nifty 5,902.00 -11.50; Markets have down trend
8:50 AM India time
Dec 4, 2012