Nov 21, 2009

EquiTipz is still Alive!!! Stay Tuned...

Hi ET Readers,

It has been a long time that I have written anything for my readers. So, I just needed to give some updates to you all regarding EquiTipz that we have not gone anywhere, We are still alive with the mission to help you out with all your investment queries and make your money earn harder for you. Since last few weeks (almost a month now), I have been very busy with my full time job and have been working day and night for the deadlines to be met. I was so busy that I was not even getting some time to sit down and write a Post for the Readers.

Now, that the things are settling down a bit, now I am again back in form and will post useful articles, investment tips for Equity, Mutual Funds, ULIPs, SIPs, Credit Cards, Income tax and much more but now, more regularly and with more passion to help YOU, our Readers.

Another important update that I have for my privileged readers is that EquiTipz is undergoing a major makeover. As a part of this change, the readers will be able to feel the new EquiTipz experience:

1. We are moving to Wordpress: As of now, EquiTipz is hosted on Blogger, a free hosting platform. Now, that we are seeing a regularly increasing reader base and daily Page-views, we have planned to move to paid hosting and we have already purchased a hosting Plan from, one of the best hosting services With Wordpress, I would be getting a better control over the blog making it more reader-friendly and expandable. With this, we expect further boost in the traffic and are expecting the move this weekend (will keep you updated regarding this).

2. We are planning Discussion Forums: To moving further with our vision to help the investors, to give them a better idea where to invest, we are planning to launch a discussion Forum/Community, where investors from different parts of the world can come and discuss about different investment instruments to mutually benefit each other because one can learn from the fellow students in a better way than from the teacher.

3. EquiTipz - a Revenue sharing Blog: We have mentioned this already in an earlier Post that we are planning to see EquiTipz as a Revenue sharing blog where everybody with a view has the advantage to Earn money with us. You can learn how to Earn Money with EquiTipz here.

So, be ready to experience the new EquiTipz experience all set to help you invest smartly to get even smarter returns.

We will keep you updated with all the happenings on this blog. Just enter your email ID in the form below and we will take care of the rest. You may also subscribe to our RSS Feed here.


Oct 30, 2009

Indiabulls Power lists at Rs.45 and then loses 16% in early trade

Indiabulls Power listed at Rs 45.05 on the NSE today, near its issue price of Rs 45. However, the share fell sharply and at 9.56 am, it was trading at Rs 37.70, at a huge discount of 16.22% to its issue price.

The share touched an intraday high of Rs 45.05 and an intraday low of Rs 35.35 in the early trade. The total traded quantity was 1,54,44,101 shares and turnover was at Rs 5,895.01 lakh.

On the BSE, the share opened at Rs 44.95, around its issue price. It touched an intraday high of Rs 45.50 and intraday low of Rs 35.

The issue had opened for subcription during October 12-15 with 39.07 crore equity shares shares, including a green shoe option of retaining 5.09 crore equity shares.

It received an overwhelming response from investors, especially QIBs (qualified institutional investors) and was subscribed 21.84 times.

Indiabulls Power intends to use the IPO proceeds to part finance the construction and development of the 1,320 MW Amravati Power Project Phase-I, fund equity contribution in the company?s wholly owned subsidiary, IRL to part finance the construction and development of the 1,335 MW Nashik Power Project, apart from general corporate purposes.


Oct 28, 2009

Den Networks IPO opens for Subscription

The initial public offering (IPO) of Den Networks has opened for subscription today. The issue is of up to 20,000,000 equity shares of Rs 10 each. The issue will close on October 30, 2009. The company has fixed price band between Rs 195-205/share.

The issue comprises a net issue to the public of up to 19,750,000 equity shares and a reservation of up to 250,000 equity shares for subscription by eligible employees. The issue would constitute up to 15.16% of the post-issue paid-up equity share capital of the company. The net issue would constitute 14.97% of the post-issue paid-up equity share capital of the Company.

At least 60% of the net issue will be allocated on a proportionate basis to qualified institutional buyers (QIB). The company may allocate up to 30% of the QIB Portion, to anchor investors on a discretionary basis. Further 5% of the QIB portion less anchor investor portion shall be available for allocation on a proportionate basis to mutual funds only.

Also, not less than 10% of the net issue will be available for allocation on a proportionate basis to non-institutional bidders and not less than 30% of the net issue will be available for allocation on a proportionate basis to retail individual bidders, subject to valid bids being received at or above the issue price.

Promoted by Mr Sameer Manchanda and Lucid Systems Private Limited, Den Networks is one of the largest national cable television companies in India engaged in the distribution of analog and digital cable television services (Source: MPA Report 2009). Since incorporation in July 2007, it has expanded analog cable services to 77 cities across India.

It currently provides cable television services in the National Capital Region of Delhi and the states of Uttar Pradesh, Rajasthan, Maharashtra, Gujarat, Karnataka, Haryana, Madhya Pradesh and Kerala. It has obtained an all-India ISP license and has recently commenced a limited roll out of broadband internet services in select areas, which it intends to expand in all the other cities where it operates.

The IPO Proceeds will partly fund the company?s plans to invest in the development of cable television infrastructure and services; the development of cable broadband infrastructure and services; and acquisition of content and broadcasting rights amongst others.

The equity shares offered through the RHP of the Company are proposed to be listed on Bombay Stock Exchange and National Stock Exchange of India.

The global coordinator and book running lead manager for the issue is Deutsche Equities India Private Limited. The co-book running lead manager for the issue is Antique Capital Markets Private Limited. Karvy Computershare Pvt Ltd is the registrar.

For the year ended March 31, 2009, it has reported loss of Rs 13.8 crore and total income of 271.11 crore.


Oct 26, 2009

Thinksoft Global lists at Rs 126 on the NSE

Thinksoft Global Services listed at Rs 126 on the NSE today, at a marginal premium of 0.8% to its issue price of Rs 125 a share. However, the stock gained momentum and at 9.56 am, the share was trading at Rs 133, at a premium of 6.40% to its issue price.

The share touched an intraday high of Rs 134.80 and an intraday low of Rs 126 in the early trade. The total traded quantity was 6,06,972 shares and turnover was at Rs 796.53 lakh.

On the BSE, the share opened at Rs 100, at a discount of 20% to its issue price. It touched an intraday high of Rs 136.80 and intraday low of Rs 100.

The issue was of 36,46,000 equity shares and was subscribed 2.57 times. (Read the IPO Subscription details here) The issue was scheduled to close on September 24 but was extended due to lukewarm response from investors.

The company had also reduced its IPO price band to Rs 115-125 from Rs 120-130 per share. The issue had opened for subscription on September 22, 2009 and closed on October 1.

The IPO consisted a fresh issue of 13.5 lakh shares and an offer for sale of 22.96 lakh shares by Gibraltar-based fund, Euro Indo Investments.

Karvy Investor Services was the book running lead manager to the issue.


Why Should I buy Gold?

All of us find reasons before making any kind of investments. A couple of days ago, I was in the same dilemma and I was asking myself the reasons why I should buy Gold. Here, I am listing a few of them that I had in my mind to justify my thought of investing in gold and also, while browsing on the internet, I came across some interesting reasons behind why at all should one invest in gold. However, let me warn you that I do not have any trading interest in gold, but do have an investment interest in a company called Deccan Gold which is the only gold company listed in India. Here are the reasons:
1. According to experts, the total world gold production is decreasing. I was surprised ? increasing selling prices make it attractive to search so production should increase. This is what happens in theory, but it is getting to be more difficult to prospect, mine and produce gold.

2. The gestation period even for gold which is spotted is quite long. According to some experts it is as high as 10 years. Hence gold mining companies? prices go up over long periods and in a lumpy kind of a fashion. If gold is found it goes up, if mining starts prices go up, if production starts ? prices go up. So be careful while buying a gold mining company.

3. Chinese demand is likely to go through the roof. Very few people understand the Chinese economy. If the population does not trust its currency, they are likely to keep their money in gold! The Chinese government had banned the population from owning gold for a very long time. Obviously once the ban gets lifted buying will start (it happened in US if you remember). It may take 2-4 years by which time the retail network to sell gold to the whole Chinese population is set up. Once it is set up, prices will boom.
4. Indian demand is difficult to predict. However, there is some talk of Jewelers suicide in Kerala (with prices rising, consumption is going down, so shopkeepers are dying). However, there is a huge ?wannabe? population which will keep buying and chase prices! Be that as it may, selling may not be enough to exceed demand ? another cause for prices to go up.

5. Investment demand is high: All fresh bankers are busy selling gold mutual funds. This is a funny situation where the price is going up because the fund is buying. People are buying gold ETF/regular funds which is causing gold prices to go up! Case of tiger chasing its tail.

6. Governments attitude towards gold can be foolish and slow. The rich countries which have a lot of gold (including IMF) have a pact wherein they will not sell more than 400 Tonnes a year (not sure about the figure). This will restrict supply on the one hand, but mutual fund demand will drive the prices.

7. Bank relationship managers are pushing gold mutual funds, websites are screaming that gold is a good buy, people without understanding of interest, compounding, etc. think this is a great ideal This almost blind and noisy screaming will push prices high. Most fund managers are buying with a vengeance!

So, what is your view on investing in Gold? Your feedback is always appreciated. Do give your views in the Comments Section below.