3rd October will Commence Coal India's share buyback

Coal India’s share buyback plan, through which the central government is looking forward to raise Rs 3,650 crores, would commence on 3^rd October. This process of trading would close on 18^th October. The last date of extinguishment of equity shares, however, has been fixed as 28^thOctober, which will give the company enough time to analyze the trends.

To proceed with the plan, Coal India has appointed SBI Capital Markets as the manager of buyback plan and along with it has created an escrow account with Axis Bank, where it will be depositing Rs 380 crores before the buyback offer starts.

This offer would be for buyback of equity shares up to 1,08,955,223 with a face value of Rs 10 each at a price of Rs 335 for every equity share for cash aggregating up to Rs 3,650 crores on a proportionate basis, from the eligible shareholders with the help of a tender offer through the stock exchange mechanism.

The size of the issue represents approximately 24.95% of the fully paid-up share capital as well as free reserves, according to the company’s audited accounts for the Financial Year 2015.

The trading will be open to the public where the ratio of the buyback for the small shareholders have been fixed at five equity shares for every 22 equity shares held by such small shareholders, on the other hand, five equity shares for every 337 equity shares held by institutions or other larger stakeholders in the company.

If all the public shareholders are able to participate up to their entitlement (full acceptance), then the aggregate shareholding of the promoter, which is the President of India, post the buyback will increase from 79.649% to 79.845%. The aggregate shareholding of the public in the company shall decrease from 20.351% to 20.155% after the buyback, Coal India said in a filing with Bombay Stock Exchange.

However, if none of the public shareholders participate, then the aggregate shareholding of the Indian President, after the buyback will decrease from 79.649% to 79.293%. The aggregate shareholding of the public in the company shall increase from 20.351% to 20.707% after the buyback equity share capital of the company.

According to company, the objective of this buyback is to return surplus cash to all the members holding equity shares of the company (in this case the centre).

As added by a senior Coal India official, this buyback, which is being implemented through the Tender Offer route, would involve around 15% of the number of shares to be bought back, reserved for the small shareholders.

He also added the buyback may help to improve the return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value.

The official further said, the buyback is not likely to have any negative impact on the company’s profitability or its earnings, additionally it will reduce the Company’s investment income by Rs. 3.650 crores if the company considers buying back the entire number of shares in the offer.

However, regulations prohibit Coal India not to raise further capital out of its own accord for a period of one year from the closure of buyback except in discharge of its subsisting obligations.

A coal official clarified the fact that although the company may not be able to raise anymore fund for one year as per the obligations, the promoters can implying that the Company’s cash flow and investment plans will not be hampered.

By the end of today’s trading session Coal India share price closed at Rs 322.30, down by 1.42 per cent. The intraday high and the intraday low of the share are Rs 328.80 and Rs 316.90 respectively. A total of 44,45,950 shares of the Company have been traded on the counter of NSE aggregating to a total amount of Rs 14,263.94 lacs.

Eros share price Jumps 5% on tie-up with UAE firm

Eros share price rose by close to 5 per cent yesterday after the entertainment firm said that it had tied up with UAE's biggest film distribution and exhibition network - Phars Film. Eros International Media on Wednesday announced its association with Phars Film.

The company said in a BSE filing that the partnership allows the 2 companies to jointly co-produce Malayalam films and also explore theatrical rights between themselves. The deal licenses Eros International to tap distribution of all the Malayalam films produced jointly in India while Phars Film shall present the same abroad where it has a dominant market share, it added.

Meanwhile, Eros share price was trading 0.39 per cent higher at Rs.205 on the NSE today. The stock opened at Rs.202.15 as compared with its previous closing at Rs.204.20. The stock touched the day’s high and low at Rs.208 and Rs.202.15, respectively. So far, 1,45,159 shares have changed hands on the NSE counter with a traded value of Rs.297.11. 

The stock touched its 52 week high value at Rs.541.00 (30-Sep-15) whereas the 52 week low was seen at Rs.125.75 (29-Feb-16). The life time high of the stock stands at Rs.643.95 (20-Jul-15) while the life time low of the scrip stands at Rs.106.75 (28-Aug-13). The market cap of Eros International amounts to Rs.1911.24 (Cr).The book value of the company stands at 158.48.

Eros International is identified by Dynamic Levels researchers and analysts as the top 500 performing stocks for the June quarter amongst the 1700 stocks which are listed on the NSE. Eros International is fundamentally strong and is safe for investment, according to Dynamic analysts and market experts.

In order to know more about the support and resistance levels of the stock and also its fundamentals and financials, please pay a visit to Eros share price history.

DLF Looks for Partners for Stake Sale in Rental Arm

DLF is reported to eye multiple partners to divest 40 per cent stake in its rental arm -DLF Cyber City Developers, to get maximum valuation. At the moment, the company is holding individual bilateral discussions with more than three financial institutions. According to reports, DLF had shortlisted Brookfield Asset Management, Blackstone Group and Singapore wealth fund GIC for doing the needful.

SEBI has relaxed rules and a company can have several firms coming in to initiate competition. DLF will not divest stake to only a single partner. The debt-laden company is looking to shut the transaction before the end of this fiscal year.

The stake sale is anticipated to leave DLF in funds, enabling it to considerably lower its debt which was seen at Rs. 22,120 crore as on June 30. The company had declared plans to dilute stake in the rental arm in October last year. It makes sense for DLF to bring in more partners since it will achieve the aim of getting maximum valuation. They may even divest the 40 per cent stake to two-three players at differential rates. It is also possible that they ask other firms to match the highest bid received.

Meanwhile DLF share price is quoting above 4 per cent at Rs. 145.65. Today’s trading session saw approximately 93,23,423 shares being traded in the counter with a traded volume of 6,245.90 lacs, as per NSE.  The stock closed at Rs. 146.15.

Other than Brookfield, Blackstone and GIC, other firms namely -Qatar Investment Authority and Warburg Pincus are still in the race. As per estimates, the 40 per cent stake sale could yield DLF up to Rs. 14,000 crore. The stake sale is anticipated to be followed by raising more equity shares worth  Rs. 3,000 crore to make up for the funds lost because of taxes, the source said, further adding that DLF will also look at launching a REIT after this exercise. DLFs debt could slip down to Rs. 6,000 crore after this and could be debt-free in next two years. The completion of the transaction will be an important step to create two pure plays — a residential business with zero debt and an independent commercial business in partnership of long term institutional investors.

The Information Memorandum was generated among the investors in April and several bids were received from sovereign funds and global private-equity firms in June. DLF, in its analyst presentation post the announcement of financial results for first quarter of fiscal year 2016-17, had mentioned that it had allowed shortlisted bidders access to virtual data room and vendor diligence reports. The company had added that it anticipates to receive binding, updated bids in the form of marked up shareholder agreements once the shortlisted bidders execute their due diligence.

DLF share price touched its 52 week high value at Rs. 169.60 on 19^th August ’16 whereas the 52 week low value is seen at Rs. 72.35 on 12^th Feb ‘16. The company has a market cap amounting to Rs. 24984.19 (Cr) with a book value of Rs. 153.37.

DLF is identified by Dynamic Levels as the top 500 performing stocks for the June quarter amongst the 1700 stocks listed on the NSE.  DLF is fundamentally strong and is safe for investment, according to Dynamic analysts.

In order to know more about the support and resistance levels of the stock and also its fundamentals and financials, please a pay a visit to DLF share price history.

NIIT acquires Perceptron Learning Solutions Private Limited

NIIT one of the global skill and talent development firms, on Tuesday, 27^th September 2016, announced that it has acquired the Bengaluru-based start-up Perceptron Learning Solutions Private Limited with the aim to accelerate its digital initiatives as well as bring in deep analytics capabilities to its learning platforms.

Commenced in the year 2014, Perceptron Learning Solutions Private Limited has been working on the development of next generation learning platforms that combine deep analytics as well as semantic computing to ensure better learning outcomes. The deep analytics entails data mining which is meant to analyze extracts and also organize large amounts of data beneficial for an organization or individual, while semantic computing involves analyzing data based on meaning, context as well as intention.

Next-gen learning platform of Perceptron, Ilimi, helps to identify areas where a learner is lacking and can provide appropriate recommendations. Ilimi is a cloud based platform, which combines short videos with personalized learning activities for its users based on its analytics and social learning.

Currently, according to NIIT runs three digital transformation initiatives - StackRoute, digiNxt, along with Training.com and Perceptron's Ilimi will bring semantic computing, predictive analytics, learning science capabilities to create learner-centric, immersive learning and mastery learning platform for its users.

NIIT share price is currently trading at Rs 94.30, up by 0.32 per cent. The intraday high and the intraday low are Rs 95.55 and Rs 92.85 respectively.

NIIT limited is one of the top 500 shares recommended by the research and analyst team of Dynamic Levels.

The book value of the Company is 48.61. The market cap of the Company as of today is Rs 1557.01 crores. The promoter holding pledge (%) of the Company is 0. The one month return of the Company was (-0.58) per cent. The face value per share is Rs 2.

Get the most important support and resistance levels of NIIT Limited at NIIT share price forecast.

Jubilant’s Subsidiary Raises $ 300 Mn through Bonds

Today, Jubilant Life Sciences announced that its subsidiary Jubilant Pharma had raised $300 million (approx Rs. 1,998 crores) through the issuance of five-year bonds to mainly retire debts. The announcement has given a little push to the Jubilant share price.

Their material wholly-owned subsidiary, Jubilant Pharma Ltd, has effectively completed the pricing of its rated unsecured high yield bonds (Notes) at a deferment of 4.875 per cent per annum. The bonds were issued at par for $300 million and will be maturing in September 2021.

Jubilant said that the net proceeds of the Notes should be used to prepay the on hand debt of Jubilant Pharma and its subsidiaries. It will also be used for up-streaming up to $50 million to Jubilant Life Sciences for prepayment of its existing debts and general corporate purposes.

Jubilant share price went as high as 3.4% intraday to trade at Rs. 610.30 while its intraday low stands at 587.40 so far. By 1:00 PM, over five lakhs shares were traded on the NSE counter against an average of 15.56 lakhs shares for twenty days. The company has the PE of 101.41 and the market cap of 9403.96 crores as on date. Jubilant has the turnover of 4.74 crores and 8.16% promoter holding pledged.

Jubilant share price of face value Re. One traded at the 52 weeks high and the lifetime high of Rs. 654.75 on 27th September 2016. The stock traded at the 52-weeks low of Rs. 275.65 on 18th January 2016 and the lifetime low of Rs. 3.46 on 16th April 2001.

Jubilant is the Multibagger stock of the month by Dynamic Levels. Its previous close of Rs. 590.40 is close to its major support level of Rs. 575.25, while the stock’s closest resistance stands at Rs. 643.95. For more levels of support and resistance of Jubilant, visit Jubilant share price forecast page of Dynamic Levels website.

NHPC Signed PowerPurchase Pact with Rajasthan Govt

NHPC signed a power purchase pact with Rajasthan government and INOX for a 50 MW wind power project in the state. On the account, NHPC share price surged 6.5% to trade at the Price of Rs. 24.95.

The power project will transpire in Jaisalmer, and the Rajasthan government will purchase the power generated from the project.

India Ratings, in a recent note, pointed out that NHPC operates its plants on the cost-plus system, which provides a post-tax return on equity of 15.5-16.5 per cent, along with the reasonable recovery of all costs.  This allows for high cash-flow certainty, said the rating agency, which has alloted AAA rating to company’s long-term loans and bonds.

Currently, NHPC share price is trading at Rs. 24.85 with a rise of 2%. The stock opened at Rs. 24.50 against its previous close of Rs. 24.35. The stock has touched the intraday high of Rs. 24.95 and the low of Rs. 24.30 so far. By mid day trade, 35.36 lakhs shares were traded over the NSE counter as compared to its average daily movement of 33.61 lakhs for twenty days.

The face value of the stock is Rs. 10 and the book value is Rs. 28.33. NHPC has the annual turnover of 83.72 lakhs and the PE of 10.63.  The company has no promoter holding pledged.

NHPC share price has touched the lifetime high of Rs. 42 and the 52-weeks high of Rs. 28.30. The current ratio of the company stands at 1.92 while its quick ratio is 1.91. NHPC has the dividend yield ratio of 6.16%, and its interest coverage ratio stands at 5.59. The debt-equity ratio of the company is 0.59 and its Return on Asset is at 4.14%, along with its Return on Equity of 8.57%.

NHPC is the top 500 pick for the quarter by Dynamic Levels. For details on the stock, check NHPC share price history page of Dynamic Levels website.

Shankara BuildPro files for Rs 400-450-crore IPO

Shankara BuildPro, Bangalore-based retailer which is involved into home improvement and building products, has filed for an initial public offering to raise about Rs 450 crore.  As per market sources, the company has filed the draft red herring prospectus (DRHP) with the market watchdog  SEBI today and recommended to mop up between Rs 400 crore and Rs 450 crore via the sale, which will include promoters and investors diluting their stakes to the tune of 35 per cent.

The recommended IPO will empower private equity firm Fairwinds, which had pumped in close to Rs 120 crore in the year 2011, to exit Shankara, as per the sources. Shankara BuildPro was founded by Sukumar Srinivas, an alumnus of the IIM-Ahmedabad, two decades ago, had clocked a net profit of Rs 41.64 crore on an income of Rs 2,036 crore in financial year 2016.

The company functions through 100 retail stores under the tag of Shankara BuildPro is spawned over 10 states across the Southern, Western and Eastern markets looking into a large customer base across several end-user segments in urban and semi-urban markets through various ways- multi-channel sales approach, processing facilities, supply-chains and logistics capabilities. Shankara has roped in IDFC Bankand Equirus Capital as chief bankers for the issue along with HDFC Bank co-manager.

The company possesses 11 processing facilities having an aggregate installed capacity of 2.86 million tonne and is operating at an average capacity utilization of 93.75 per cent so far this financial year. The company has 58 warehouses measuring 0.58 million sqft, and an owned fleet of 47 trucks for last mile delivery and a product portfolio comprising 17,842 SKUs.

Shankara BuildPro is bullish about its future owing to the huge growth in housing demand, backed by the large market for home improvement products, like increasing demand for home solutions which have created a need for organized specialty home improvement and building product stores. Other than serving home owners, it also works  in the semi-urban markets specific agricultural requirements of individual customers and small enterprises. In addition to retail, it also serves the enterprise and channel sales sectors where it caters initially to large end-users, contractors, and OEMs.

Hindustan Copper share sale fully covered

Hindustan Copper's OFS - offer for sale garnered full subscription on Thursday, aiding the government mop up Rs.400 cr as part of 2016-17 disinvestment program. In a data provided by the BSE, it is seen that so far the 64.76-million share sale has received bids for 80 million shares. Most of the bids for the share sale were received at the base price of Rs.62 per share. Hindustan Copper share price on Thursday plunged 5 per cent to end at Rs.62.1. State-owned insurance companies and banks took part in the OFS, sources said. Close to 13 million shares meant for retail investors, those investing less than Rs.2 lac, will be auctioned today.

The Indian government is offering a 5 per cent additional discount to the retail investors buying the OFS. If the retail portion remains under subscribed, the shares shall be sold to the investors who bid in the non-retail segment, which has witnessed 1.5 times more demand than shares on offer.

In accordance to the share sale, the government's stake in the copper maker shall slump to 82.95 per cent from the current 89.95 per cent. The centre shall have to pare its holding further to atleast 75 per cent to attain the 25 per cent public float requirement.

In the first half of this financial year, the government has divested its holding in only 2 companies. In the month of April, the centre had raised Rs.2,716 cr by selling 11.3 per cent stake in NHPC Limited. The total mobilisation has reached Rs.3,117 cr and the government is staring at a sharp target in the latter half.

The 2016-17 disinvestment target has witnessed set at Rs.56,500 cr. Close to Rs.36,000 cr of this is to be raised via PSU disinvestments like Hindustan Copper and NHPC. The remaining Rs.20,500 cr is to be raised from strategic disinvestment.

Sebi alerts Markets, Rupee sees Biggest Dip since Brexit

The Sebi – Securities Exchange Board of India went on a crucial alert on Thursday after domestic stocks and the currency crashed majorly amid rising hostilities across the border. According to reports, the market regulator, Sebi has sought a report from the domestic stock exchanges on how they have prepared to deal with any form of contingency in the wake of a steep plunge in the benchmark equity indices triggered by Indian Army’s surgical strikes on terror bases in POK – Pakistan-occupied Kashmir. The detailed reports were to be submitted by the stock exchanges by yesterday evening.

Impact on Stock Market and Rupee:

The Nifty 50 crashed 154 points while the benchmark Sensex lost 465 points in a knee-jerk response to the signs of rising hostilities across the border between the two neighbors.The Indian National Rupee or INR weakened to a one-week low of ‘66.91’, thereby marking the worst plunge for the domestic currency since the Brexit vote which happened in June. Albeit, the domestic currency recovered a bit to settle at ‘66.85’, down 39 paise over the previous day closing of ‘66.4’. The following is a candle stick bar chart to give you a better picture:

The India VIX witnessed the biggest rise in seven long years. It shot up by 33 percentage points to 18.45. VIX or Volatility Index is a popular measure of the implied volatility of S&P 500 index options. The ten-year bond yield galloped to a one-year high.

Fresh reports have suggested that villages in the state of Punjab, which are located 10 km away from the international border with Pakistan, began evacuating yesterday.

 

 

 

 

 

 

Director General of Military Operations (DGMO) LT Gen Ranbir Singh on his toes:

Director General of Military Operations DGMO Lt Gen Ranbir Singh on Thursday stated that India carried out surgical strikes in Pakistan-occupied Kashmir (POK), inflicting heavy casualties on the terrorists and those shielding them.

Ranbir Singh further continued that the operations were concentrated on ensuring that the terrorists do cause any destruction and endanger the lives of the Indian citizens. He added that the operations aimed at neutralizing terrorists have since come to halt. However, the Indian Army were fully prepared for any contingency that might arise, Singh concluded.

Impact of the Press briefing by DGMO on the Domestic Equity Indices:

Following the press briefing by the DGMO, the domestic equity indices slumped up to 4 per cent amid worries that the foreign investors, who have pumped in close to Rs.50,000 cr into domestic stocks so far in this year, might run for the exit door if the hostilities and tensions rose further.

Nifty Closes Below 8600 On Escalating Indo-Pak Tensions

Indian Market Outlook: Indian benchmark Index Nifty fell by 200 points as news came out that Indian armed forces carried out surgical strikes in Pakistan Occupied Kashmir. India VIX shot up by 6 points from 14 to 19 points, which is a sign of fear in the equity markets. Banking and high beta stocks came in for heavy selling with only 3 shares in Nifty 51 gaining for the day. FII and DII were net buyers in the cash markets and this shows that panic in the equity markets will be short lived. Markets can bounce back from the support of 8450-8500 Nifty Spot. NSE small cap was trading below the support of 6135 and closed at 5975 down by 462 points from yesterday's high of 6437. This index if it trades above 6135 will be a positive for the bulls and markets can go higher from there.

Nifty October Futures is expected to open at 8594 as per SGX Nifty at 8:30 am IST, which is 44 points below its previous close of 8638.

Open Interest Index F&O and Cash Segment Activity

In Cash segment, last trading day, FII have bought shares worth Rs. 3413.37 Cr and DII bought shares worth Rs. 1631 Cr. A combined buy of Rs. 5044 Cr. For this expiry, FII and DII together are buyers worth Rs. 7753 Cr.

In Index Options, last trading day, FII have bought 126596 contracts, above its 1 year average of 18280 contracts. Pro have sold 88640 contracts, above its 1 year average of 27670 contracts. Combined there has been a net buy of 37956 contracts, below its 1 year average of 39000 contracts. For the current expiry, FII and Pro combined are net sellers of 73393 contracts.

In Index Futures, last trading day, FII have sold 97652 contracts, above its 1 year average of 9706 contracts. Pro have bought 11012 contracts, above its 1 year average of 4903 contracts. Combined there has been a net sell of 86640 contracts above its 1 year average of 9401 contracts. For the current expiry, FII and Pro combined are net sellers of 26681 contracts.

International Market Morning Update

International markets witnessed profit booking as Fed speakers gave importance to November meeting for a possible interest rate hike. S&P Futures fell by 26 points from a high of 2166 to a low of 2140 made today morning. This signals S&P Futures is in a range and the broad range is 2110-2192 and is currently trading in 2130-2170 band. The US presidential elections and Fed flip flop is adding uncertainty to market.

German Dax also corrected yesterday falling over 150 points and Japan Nikkei is down in today's trading.

DISCLAIMER

Research Team - Tel: 033-30010001, write to us at clientsupport@dynamiclevels.com to give feedback. Website: www.dynamiclevels.com

1. The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision 

2. Past performance is not an indicator of future returns.