Fw: Clubbing of settlement on March 27,2012

 

 

Dear Customer, This is to inform you that on account of settlement holiday due to Gudi Padwa on March 23, 2012, multiple settlements have been scheduled on March 27, 2012.  Shares bought on March 22, 2012 cannot be sold on March 23, 2012 as trade done on both these days will be settled together on March 27, 2012.   Client are requested to take note of Pay in schedule:-

Settlement Type & Number Trade Date Settlement Date Timings to submit Pay-in NN/NZ-2012056 22-Mar-12 27-Mar-12 9.30 a.m. BW/BC-1112245 22-Mar-12 27-Mar-12 9.30 a.m. NN/NZ-2012057 23-Mar-12 27-Mar-12 1.30 p.m. BW/BC-1112246 23-Mar-12 27-Mar-12 1.30 p.m.

If you require any clarifications or assistance, you may please write to us at cs@indiainfoline.com or Reach our Customer Care Desk at (022) 40071000 or at our zonal customer service numbers: North -011-49315020, East - 033-44048600, Maharashtra-022-40609292, Gujarat and Madhya Pradesh -079-40271800, South-080-40547030 Regards, Loveena Khatwani Head, Customer Service India Infoline Limited

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Fw: Investor's Eye: Update - Orbit Corporation (Timely clearances of projects hold the key); Viewpoint - Tech Mahindra (Tech Mahindra and Mahindra Satyam merger finalised)

 

 

Investor's Eye [March 21, 2012]  Sharekhan www.sharekhan.com

Summary of Contents STOCK UPDATE Orbit Corporation Cluster: Ugly Duckling Recommendation: Buy Price target: Rs70 Current market price: Rs55 Timely clearances of projects hold the key Key points Sales booking in Q4FY2012 likely to be better than Q3: Orbit Corporation (Orbit)'s management is expecting presales for Q4FY2012 to be better than in Q3FY2012. In Q3FY2012 the sales booking stood at Rs71.1 crore (32,921 sq ft) which was better than Q2FY2012's presales of a measly Rs2.41 crore (9,034 sq ft). The company in the third quarter resorted to fire sale (ie bulk selling) in Orbit Laburnum at Gamdevi, Mumbai and Orbit Residency at Andheri-Saki Naka, Mumbai which drove the sales volume. Similarly in Q4FY2012, the company is looking at bulk sales in two of its properties viz Orbit Residency at Andheri, Mumbai and Orbit Terraces at Lower Parel, Mumbai which are at an advanced stage. It has also achieved sales in some of its other projects which would result in sales booking to be better sequentially.  New launches to kick in from Q1FY2013: With the amended Development Control Regulation (DCR) now in place, the company expects the approval process to be streamlined. Though the approvals have still not picked up, but the same are expected to gain momentum in a month's time. As a result the company has started applying for approvals for its existing under-construction projects, so that the execution can be ramped up. It will also soon start applying for newer projects so that they can be launched by end of Q1FY2013. Any further delay in getting clearances will impact the company's financials and thus our estimates. The company plans to launch a slum rehabilitation project (SRA) in Santa Cruz (phase 1 of ~100,000 sq ft), a new project at Napean Sea Road (60,000 sq ft) and another new project at Kemps Corner (~100,000 sq ft) by H1FY2013. All of these planned projects are in Mumbai.  Looking out for partner in Santa Cruz SRA project: Orbit is in talks with a few property firms from Singapore for partnering in its planned Santa Cruz SRA project in Mumbai, the Orbit Grandeur. It might bring in a partner for project designing expertise or for investment in the project. However the discussions are at a very nascent stage and the deal will take time to materialise. If the discussions fall out as per plan then Orbit would be able to execute the project without any further debt raising. Mandwa project to take 6-9 months to get approvals and clearances: The pending approvals and clearances for Mandwa will take approximately six to nine months, after which the company will launch the project and will be able to start construction work. Recently the project had come under the scanner of the Bombay Environmental Action Group (BEAG), which had complained to the Union Ministry of Environment and Forests (MoEF) about large-scale destruction of mangroves. However as per the environment secretary, an inspection of the area was carried out and there was no case of mangroves having been destroyed. The company had applied to the local collector's office for a recreational and tourism zone permit for 200 acres as the land was reserved for that purpose in the regional plan. However, the land is still recorded as agricultural land. It's now over a year since the application has been made, but the company has not received any permission so far. No construction work is being carried out at the site currently. The MoEF has carried out a survey and Orbit is awaiting the final decision from the union environment ministry. The project will not get impacted by BEAG's allegations. Maintain Buy: Poor sales across projects over the last one year due to regulatory uncertainties and absence of new launches due to pending approvals and clearances took a toll on the company. However there have been amendments in the DCR which now create a level playing field for developers and provide regulatory clarity. This will result in pending projects now getting approved, resulting in a pick-up in execution of projects along with launches of new projects. We expect the clearances to start coming in by the end of Q1FY2013. The next couple of quarters need to be keenly watched in terms of the cut in interest rate cycle and the progress on the approvals front for the company. Given the healthy land bank of the company, any quick revival on the clearances front will be a positive for the stock. Further any success in roping private equity in few of its projects will help the company improve its balance sheet. We maintain our Buy rating on the stock with a target price of Rs70. At the current market price, the stock trades at 7.8x its FY2013E earnings and 0.4x its FY2013E price to book value (P/BV). VIEWPOINT Tech Mahindra        Tech Mahindra and Mahindra Satyam merger finalised The much awaited merger of Tech Mahindra and Mahindra Satyam has got finalised with the boards of the two entities having approved the proposal. The swap ratio for the merger is worked out to be 2 shares of Tech Mahindra (face value Rs10) for every 17 shares of Mahindra Satyam (face value of Rs2). As per the managements' indication, the merger process will take another six to nine months to complete and the record date of the merger would be announced in due course. Key synergies from the merger The combined entity would be the fifth largest domestic IT company: The merged entity's revenues are at around $2.4 billion for the last 12 months (ended December 2011), making it the fifth largest domestic IT company, next to HCL Technologies among the listed space. The entity would be the sixth largest when taking Cognizant Technologies into consideration. In terms of market capitalisation, the merged entity will be at around Rs17,000 crore. Diversified revenue stream with strong domain expertise in focused areas: The merged entity's revenue stream will be much diversified as compared to the current single industry (telecom) exposure of Tech Mahindra. The new entity's revenue mix will comprise of sectors like banking, financial services and insurance (BFSI), manufacturing and telecom among others. On the other hand, the merged entity would derive synergies from strong capabilities of Tech Mahindra in mobility and system integration whereas the legacy strength of Satyam in the area of enterprise solutions would be the key differentiator for the merged entity. Among geographies, the revenue exposure will be more balanced with 42% accounted by the US, 35% by Europe and 23% by  emerging markets.  Top client's concentration will reduce; clients portfolio looks more diversified: Currently, British Telecom (BT) contributes close to 35% of the total revenues of Tech Mahindra, which is likely to reduce substantially to 16.5% in the new merged entity. Further, with around 217 Satyam clients adding to the joint entity, the joint entity will have over 350 clients.  Cost benefits to accrue from operational synergies: The joint "Go to market" strategy of the merged entit has already started bearing fruits, with both Tech Mahindra and Satyam working closely in the last one year as a joint entity for the market penetration. In the last one year, the merged entity has won more than 10 deals through this initiative. On the other hand, the joint entity would also have the scale and bandwidth to accrue benefits from the general and administrative (G&A) side of the expenses. Going forward, the management has indicated at an EBITDA margins of 16% from the combined entity. Valuation: We view the merger of Mahindra Satyam with Tech Mahindra as a positive catalyst for creating a value accretive entity for the future. However, legal hurdles pending with Mahindra Satyam and slowdown in the telecom vertical (main industry exposure for Tech Mahindra) would stand to be a roadblock in the medium term. On a longer-term, the new entity will have a more diversified and scalable revenue stream and operational synergies will create value for the investors. At the current market price, both Tech Mahindra and Mahindra Satyam trade at 10x and 9x their FY2013E and FY2014E consensus earnings respectively. We continue to remain positively biased on Mahindra Satyam. Currently, we do not have any active rating on Tech Mahindra and Mahindra Satyam. Click here to read report: Investor's Eye Sharekhan Limited, its analyst or dependant(s) of the analyst might be holding or having a postition in the companies mentioned in the article.

Regards, The Sharekhan Research Team myaccount@sharekhan.com Manage your newsletter subscriptions

 

Fw: Invest in FMP - Series 3

 

 

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NFO Opening Date March 28, 2012 NFO Closing Date March 29, 2012 Proposed Allotment Date March 30, 2012

Features of the Fixed Maturity Plan Fixed Tenure: Investors can choose the FMPs that match their investment horizon and their cash flow requirements. Low interest rate sensitivity: FMPs are least exposed to interest rate risk, as the fund holds instruments till maturity. Tax Benefits: FMPs score over fixed deposits because of their tax efficiency. In FMPs longer than a year, investors may choose to avail indexation benefits to rationalise their taxable liability against prevalent inflation for the period. Fund Facts Proposed Maturity Date (Last NAV Date): 3rd April 2013 Minimum Application Amount: INR 5000 and in multiples of INR 1 thereafter Option: Growth and Dividend Payout (Default Growth) Liquidity: To be listed on NSE on allotment. The units can be redeemed with IIFL Mutual Fund only on maturity of the scheme. Investment Objective: The investment objective of each Scheme is to generate returns through investments in debt and money market instruments maturing on or before maturity of the scheme. There is no assurance that the investment objective of the Scheme will be achieved. Benchmark: CRISIL Short Term Bond Index Application Supported by Blocked Amount (ASBA): Investors may also apply through the ASBA facility. Copy of the acknowledgment receipt of the ASBA Form as submitted to the SCSB should be attached along with the NFO application form when submitting to IIFL Mutual Fund. Asset Allocation: Instruments Indicative Allocation (% of Net Assets) Domestic Debt instruments including Government Securities, Corporate NCDs, Money Market Instruments. 100% Intended Allocation: CDs (95 - 100%); CP/NCD/Money Market instruments rated AA/A+ or higher (0% - 5%) Load: Entry/Exit Load – Nil Transaction Instructions: NEFT/RTGS/TRANSFER CHEQUE Application form along with payment instruments /instructions should be received by 29th March 2012 & credit should be in our account latest by 10.A.M on 30th March 2012. RTGS / NEFT Instructions to Bank should be processed on March 29, 2012 itself. Banks for Transfer Cheque HDFC, CITI, ICICI, Axis & Kotak Bank RTGS / NEFT Bank Details Bank : HDFC Bank Branch : Fort, Mumbai IFSC Code : HDFC0000060 A/c No. : 00600350098610 A/c Title : IIFLMF NFO COLLECTION A/C To invest in the scheme, kindly contact your Relationship Manager Click Here to Download KIM / Application Form     |     Click Here to Download SID Statutory Details: Constitution: IIFL Mutual Fund has been set up as a Trust under the Indian Trust Act, 1882. Trustee: India Infoline Trustee Company Ltd. Investment Manager: India Infoline Asset Management Company Ltd. Sponsor: India Infoline Ltd. Risk Factors : All Mutual Funds and securities investments are subject to market risks and there can be no assurance that objectives of Mutual Fund Schemes will be achieved. As the price/value/interest rates of the securities in which the Scheme invests fluctuates, the Net Asset Value (NAV) of units issued under the Scheme may go up or down depending upon the factors and forces affecting the securities market. Past performance of the Sponsor/AMC/Mutual Fund and its affiliates does not indicate the future performance/results of the Scheme and may not provide a basis of comparison with other investments. Risk Factor specific to the Scheme: In case of Fixed Income and Government Securities, changes in the prevailing rates of interest are likely to affect the value of the Scheme's holdings (and thus the value of the Scheme's units). Increased rates of interest, which frequently company inflation and/or a growing economy, are likely to have a negative effect on the value of the units. The value of securities held by the Scheme generally will vary inversely with changes in prevailing interest rates. The Sponsor and any of its associates are not responsible or liable for any loss resulting from the operations of the Mutual Fund beyond the initial contribution of an amount of 1 Lakh towards setting up IIFL Mutual Fund. Investors in the scheme are not being offered a guaranteed or assured rate of return or monthly or regular/periodical income distribution, and the actual returns and/or periodical income distribution of an investor will be based on the distributable surplus. For scheme specific risk factors, terms of issue etc. investors are urged to read the Statement of Additional Information (SAI) / Scheme Information Document (SID) and Key Information Memorandum (KIM) carefully and consult with their legal/tax/ investment advisor before they invest in the Scheme. Copy of SID/SAI & KIM can be obtained at the investor service centres. IIFL Fixed Maturity Plan – Series 3 (a close-ended Income Scheme) is only name of the Scheme and does not in any manner indicate either the quality of the Scheme or its future prospects or returns. Investor Benefits & General Services: Units of the Scheme will be listed on NSE. NAV of the scheme will be declared on all business days. Investment objective: To generate returns through investments in debt and money market instruments. The Scheme will invest in debt and money market securities, maturing on or before maturity of the scheme. There is no assurance that the investment objective of the Scheme will be achieved. Load: Entry/Exit Load – Nil NSE Disclaimer: It is to be distinctly understood that in-principle approval given by NSE should not in any way be deemed or construed that the Scheme Information Document (SID) has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the SID. The investors are advised to refer to the SID for the full text of the Disclaimer Clause of NSE.

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Fw: IDFC Infra Bond Tranche 3: Tax Benefit u/s 80CCF - Issue Closing on 30 March 2012

 

Salient Features - Tranche 3 Bonds: Issuer Infrastructure Development Finance Company Limited (IDFC) Issue of Tranche 3 Bonds Public issue of long term infrastructure bonds of face value of Rs. 5,000 each, in the nature of secured, redeemable, non-convertible debentures, having benefits under section 80CCF of the Income Tax act, 1961. The Third Tranche of Bonds is for an amount not exceeding Rs. 37,000 million. Issue opening date 19 March 2012 Issue closing date 30 March 2012 * (Issue Details) Rating "AAA" from ICRA and "AAA(ind)" from Fitch Tax Benefits The investment up to Rs 20,000 made will be eligible for tax benefits in the year of investment under Section 80 CCF of the Income Tax Act, 1961 Who can apply? Indian Nationals Resident in India & Hindu Undivided Families (HUFs) Minimum application Rs. 10,000 & in multiple of Rs. 5,000 (Two Tranche 3 Bonds and in multiples of one Tranche 3 Bond thereafter) Market lot One Tranche 3 Bond Security First pari passu floating charge over the Secured Assets and first fixed pari passu charge over specified immovable properties of the Company Security cover 1.0 time the outstanding Tranche 3 Bonds at any point of time. Lock-in period Five years from the Deemed date of allotment Trading Dematerialised form only following expiry of the lock-in period Maturity date Ten years from the Deemed date of allotment Buyback date Date falling five years and one day from the Deemed date of allotment Buy-back intimation period The period beginning not before nine months prior to the Buy-back Date and ending not later than six months prior to Buyback date. Specific terms for each series of Tranche 3 Bonds Series 1 2 Frequency of Interest payment Annual Cumulative Face value per Tranche 3 Bond - Rs 5,000 5,000 Issue Price per Tranche 3 Bond - Rs 5,000 5,000 Buy-back facility Yes Yes Buy-back amount per Tranche 3 Bond - Rs. 5,000 7,495 Tenor (from the Deemed Date of Allotment) 10 years 10 years Interest Rate 8.43% p.a. N.A Maturity Amount - Rs. 5,000 11,230 Yield on Maturity/Buyback 8.43 % 8.43% compounded annually

Sharekhan Ltd.: BSE Cash-INB011073351; F&O-INF011073351; NSE – INB/INF231073330; CD - INE231073330; MCX Stock Exchange: CD - INE261073330; United Stock Exchange: CD - INE271073350; DP: NSDL-IN-DP-NSDL-233-2003; CDSL-IN-DP-CDSL-271-2004; PMS INP000000662; Mutual Fund: ARN 20669. Commodity trading through Sharekhan Commodities Pvt. Ltd.: MCX-10080; (MCX/TCM/CORP/0425); NCDEX -00132; (NCDEX/TCM/CORP/0142); National Spot Exchange Ltd :12790; for any complaints email at igc@sharekhan.com; Please carefully read the Risk Disclosure Document issued by SEBI as prescribed by SEBI & relevant exchanges and Do's & Don'ts by NCDEX. & and Do's & Don'ts by NCDEX. Disclaimer: Sharekhan Limited is engaged as a distributor for distribution of IPO/Bonds/NCD. Sharekhan or any of its group concerns do not in any manner recommends any product or any of its characteristics. The client is advised to take his / her own independent decisions for investing in any financial product after understanding their respective nature and risk and returns involved. The client may also approach his / her own consultants for investing in financial products or in relation to the tax related aspects. We do not solicit any action based upon this promotional material. Please note that the product does not take into account any particular investment objectives, financial decisions or needs of individual recipients. Neither Sharekhan nor any person connected with Sharekhan accepts any liability arising out of investment suggested in the material above.