FUTURE VENTURES INDIA LIMITED ----> An IPO from a company with good Pedigree

FVIL a company from the Future group managed by the famous Kishore Biyani is coming out an IPO of 750 crores through 100 % book building process. Price range has been fixed as Rs10 to Rs 11. Issues opens for subscription on 25 April and closes on 28 April. Care has assigned a grade of “3” which indicates average fundamentals to this IP0. FVIL has kept the price band relatively at a lower side even though the name “Future” commands a very good premium.






Even though their business plan is not very clear , i advice the investors to go for this IPO because of the track record of the management as well as the business names associated with this group like Pantaloon Retail,Future Media,Future Brands, Future supply Chain and Future Bazaar,Central,Big Bazaar,Food Bazaar , Home Town , E- Zone etc etc . According to me you will get more than 100 % appreciation from this issue provided you sell immediately on listing.

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

25 HIGHEST DIVIDEND YIELDING STOCKS

Listed below are the 25 stocks which gives the highest
dividend yields. These stocks are selected based on the consistency of dividend . All these stocks had declared dividend consistenly for last 5 years.Those who are interested in consistent dividend income can invest in some of these shares .





SR.NO. COMPANY NAME LAST PRICE LATEST Div % DIV YIELD
1 ZENITH BIRLA 8.99 20.0 22.25
2 ENGINEERSIND 306.00 1060.0 17.32
3 MERCK 574.70 950.0 16.53
4 PANORAMIC UNI 16.20 50.0 15.43
5 ZICOM SECURITY 37.65 50.0 13.28
6 JUPITER BIO 20.10 20.0 9.95
7 ALKALI METAILS 46.55 40.0 8.59
8 DALMIA SUGAR 24.90 100.0 8.03
9 IKF FINANCE 12.57 10.0 7.96
10 ASHIRWAD CAPITAL 1.92 15.0 7.81
11 BNR UDYOG 12.85 10.0 7.78
12 RISHABH DIGHA 26.50 20.0 7.55
13 ANUH PHARMA 133.00 200.0 7.52
14 HCL INFO 100.60 375.0 7.46
15 HERO HONDA 1474.15 5500.0 7.46
16 VALSON IND 20.40 15.0 7.35
17 ULTRAMARINE 41.25 150.0 7.27
18 FAIRDEAL FILA 18.50 12.5 6.76
19 INDUCTO STL 29.90 20.0 6.69
20 VALIANT COMM 18.00 12.0 6.67
21 HBPORTFOLIO 30.20 20.0 6.62
22 BN RATHI SEC 18.85 12.0 6.37
23 STANROSE FINANCE 78.50 50.0 6.37
24 GOWRA LEASING 19.05 12.0 6.3
25 SIPAPER 48.35 30.0 6.2

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

Godavari Power & Ispat Ltd ( GPIL) -

Godawari Power & Ispat Ltd. (GPIL) a public Ltd. Co., belonging to HIRA Group of Industries, Raipur, was incorporated in 1999 to set up an integrated steel plant with captive power generation .GPIL , today is a totally integrated steel plant which manufactures mild steel wires , sponge iron, billets, Ferro alloys, captive power, wires rods , Oxygen gas, fly ash brick etc etc . Today GPIL is the third largest manufacturer of coal based sponge Iron in India and one of the largest players in the mild steel wire segment .








Investment in this company is adviced due to the following positive aspects

1. Company has started the mining ore from their own iron ore mine
2. Company has commenced the operation of iron ore palletitation plant
3. Commercial operation of 20 MW Bio-mass power plant also has started
4. Company has got the permission for starting a solar power plant with
a capacity of 5o Mw
5. De-merger of this company into two based on steel and power and it’s
subsequent value unlocking

There will be dramatic improvement in the working of GPIL from current year with the commencement of operation of iron ore mine , power plant and the palletitation plant which will result in the lower raw material cost . As per my estimate company will close this year with a Net profit of Rs 73 /- resulting an Earning per share of Rs 26/- and a Book value of over Rs 190 /- which means that the share available now at a price less than it’s Book value .

Investment in this share is recommended at current price with an expected price of Rs 300 with in next 12 months