IPO OF CREDIT ANALYSIS AND RESEARCH LTD (CARE)

                                                                This is one of the best IPO’s to hit the market in recent times .Basically they analysis the companies based on their financial strength and weakness and assign different grades .As per the information from their website they so far completed over 19069 rating assignments with an aggregate value of approx. RS 55051 bn since their inception in April 1993 . We have 2 more companies present in the share market from the rating industry and their shares are quoted @ Rs 1024 incase of CRISIL and @ Rs 1400 incase of ICRA . I expect the share value of CARE also to reach 4 figure mark on listing . Hence I request all my fellow investors to invest in this IPO.

 Issue Details are as given below

Issue opens on : - 07/12/2012
Issue closes on :- 11/12/2012
Money Payable on Application :Rs 700.00 – Rs 750.00
Minimum application : 20 shares and multiples of 20 there after

Pls do not invest in IPO's

Pls reade why you should not invest in IPO's

Sr.No,Year,TotalIPO's , ProfitableIPO's , Loss IPO's , % of ProfitableIPO's

 1       2011       9       5       4             55.56

 2        2010       71       19        52        26.76

 3         2009        53        14        39         26.42

  4         2008         89         19         70         21.35

           Total       222       57         165         25.68

Above is the summary of my study of IPO’s made since 2008 . This study is based on the assumption that the initial allotee has not sold his shares till today .
Following facts came out from this study

1. 3 out of 4 IPO’s returned loss to the initial applicant .

2. Grading of IPO’s are nothing to do with the returns offered as some of the
IPO’s with grades of 1 returned more than 100 % return to the investors.
Grade 1 means “ company with poor fundamentals”. Examples are Bhagawati
Banquets & Hotels Limited in 2008 and Edserv Softsystems Limited in 2009.

3. Highest return of over 400 % is given by Jubiliant Foodworks Limited who’s IPO
was in 2010






4. Everonn Systems India Limited and Page Industries Limited , both of these
companies has given more than 300 % returns to it’s initial investors

5. Only 20 company’s generated more than 100% returns to it’s initial
investors from a total of 222 IPO’s made Since 2008

6. Eventhough 57 IPO’s were profitable to the initial allotte’s but the
profitability was less than 100% For 37 companies

Conclusion :

Do not invest your hard earned money in IPO’s at the
time of initial issue. You can invest in IPO’s at a much lesser rate
after the listing . Only Promoters are making money from IPO’s. According
to me these Promoters have cheated Indian Investors to the tune of Billions
and Billions and we need another JPC to investigate this cheating .

Paramount Printpackaging ----> An issue to make money for Promoters

Investment in this IPO is not advised due to following reasons

1. Issue price is in the range of Rs 32/- to Rs 35/- which is very high for a company which is very week fundamentally. Even I will not advice investment in this IPO even the issue was at its face value i.e. Rs 10/-

2. ICRA has assigned an IPO grading of ‘2’ which indicates below average fundamentals





3. Promoters Logic behind starting this company is not clear as they have another company in operation in the same field which is 100% owned by the promoters. Hence the priority of the promoters will be always towards 100% owned company

4. Even two years ago also this Company was a loss making unit

5. Company has made defaults in payments towards the statutory requirements like professional tax, provident fund etc etc and the cases are going in the courts towards this defaults.

6.Company operates in an area where there is a lot of competition from small scale sector as the investment required for starting such companies are very less and technology used in such companies are very old.

MUTHOOT FINANCE LTD - IPO FOR RISK TAKERS

This company started their activities from my native place. Those days, their office building was the only high rise building there. From there, they spread there wings all around Karalla and now to almost all the districts in India.Kerala is home to good of gold lending institutions and the Muthoot Finance is one of the Pioneers in this field . Another company Manapuram Finance Ltd also from Kerala has given handsome returns to its investors.


Now coming back to this IPO, Muthoot Finance Ltd is the Kerala - based largest gold financing company in India in terms of loan portfolio. Muthoot Finance provides personal and business loans secured by gold jewellery or Gold Loans. They have 1605 branches across 20 states and two union territories in India.

Issue Details are as follows

Issue Open : 18/04/2011
Issue Close : 21/04/2011
Price Brand : Rs 160 – Rs 175
Minimum Application : 40 Shares
Face Value : Rs 10 / share


Price band Looks very much on the higher side . If you are risk taker ,you can apply for this IPO for an immediate gain of 15 % . If you are a long term investor you can get into this share at a much lower rate after listing as this share is fundamentally strong.

Shilpi Cable Technologies ---> An IPO to Avoid

Shilpi Cable Technologies has opened its IPO for subscription on 22/03/2011 and issue will close on 25/03/2011.The price band of the issue has been fixed between Rs 65/- to Rs69/-. I advice all the investors to avoid this issue due to the following reasons.

1. Issue has been graded by CARE and Grade given to the company is 1 indicating POOR FUNDAMENTALS.

2.Very high Issue price of Rs 65 to Rs 69 with out much fundamentals

3.Company is in operation for last 4 years only

4.Earning per share is in negative for 2 years out of 3 years in operation

5. Net Asset Value per Equity Share as on March 31, 2010 is only Rs. 14.89 on consolidated basis.

6. Three to Four company's by the Promotor's already in the similar line of
operation

IPO - PTC India Financial Services - 20 % appreciation on listing

This company was incorporated in 2006 in which the parent company PTC India Limited Holds 77.60 % of equity capital and the balance is equally owned by GSStrategic Investments Limited (an affiliate of The Goldman Sachs Group, Inc.) and Macquarie India HoldingsLimited (an affiliate of The Macquarie Group) . After this issue their shareholding will come down to PTC India Limited ---- 60.00 %,GS Strategic Investments Limited ---- 8.66 % and Macquarie India Holdings Limited ---- 3.46 % .The share is priced in the range of Rs 26- Rs 28/- and the retail invester will get a discount of Rs 1/- .


This issue comprises of two parts ,first part is the fresh issue and the second part is the offer for sale by GS Strategic Investments Limited and Macquarie India Holdings Limited . The Company intends to utilize the proceeds from the Fresh Issue to increase their capital base so that they can meet the capital requirements arising out of the growth of the business .

Main strength of this company is its promoter PTC ,who is the market leader for power trading solutions in India. Basically this company is an NBFC and offer financial products to the energy sector . Since the company is operating in the Energy sector ,which is expected to boom for the couple of years in India . Hence I advice you to invest in this issue .Moreover due to the dullness in the market you will have better chance of allotment and you can expect an appreciation of 20 % on listing