Tuesday, February 22, 2011

EXPERTS SAY GOLD WILL CONTINUE TO RISE IN 2011

After its tenth consecutive year at a high, and after closing 2010 with a 25% increase, the price of gold will continue the same trend in 2011.
Precious metal experts, financiers and market analysts from different countries all agree that the combination of factors which encourages a high price for gold will continue to benefit the sector in 2011 and investors will continue to see gold as a safe haven in the face of a very delicate global economic situation.
Those who had already made an investment in gold are looking at the global context to decide if this is the time to take profits or else continue their investments in precious metals.
Those who had not however, especially in Europe, now see gold as the best value protection for their savings and investments or for anyone seeking to diversify their holdings. But the measures adopted by the Central Banks have also contributed to encouraging the increase in the price of this commodity.
Analysts from UBS have upwardly revised their forecasts for the price of gold. The reason is the uncertainty generated in the European financial system, the weakness of the dollar and the growth in inflation in Asian countries which are leading to growing debts in Western countries and an excess of liquidity in the USA.
Jim Rogers, the commodities investment guru, said that gold will continue to rise over the next decade, although it may fall off before it reaches historical values adjusted for inflation.
Anne-Laure Tremblay, a precious metals strategist from BNP Paribas, stated that “the price of gold is being helped by a weakly backed dollar and solid investment demand”.
Bill Bonner, of Moneyweek and the Daily Reckoning, stated recently “Back in the real world, gold is trading at about $1,400 an ounce, up from less than $500 five years ago. That’s a 23% annualised return, far outstripping the gains on stocks (1.1%) or bonds (6.1%). Fear is driving a lot of the rise.”
According to a report from Swiss private bank Sarasin, one of the main developers of sustainable investment products in Europe, “the price of gold over recent months has been mainly driven by investment demand. This is principally reflected by the growing quantities of gold held in exchange-traded funds (ETF)”.
“The outlook for metals will remain positive next year. There is sufficient demand from the investment perspective in order to maintain a relatively upward trend, particularly in gold”, said Darren Heathcoat, operations manager of Investec Australia in Sidney.
For its part, the German newspaper Handelsblat remarked in one of its columns that investors who are temporarily betting on gold “can rub their hands”. It added that central Banks have moved from being sellers to buyers of this metal and this is an unequivocal signal about the safest place for investors.

Friday, February 4, 2011

TAX SAVING LONG INFRA BONDS

L&T Infrastructure Fin hits bond mkt

Co's Latest To Issue Tax-Saving Infra Bonds After IDFC, IIFCL & REC

Ruchira Roy MUMBAI (Economic Times Article)


L&T Infrastructure Finance Company is the latest to hit the market with its second public issue of taxsaving long-term infrastructure bonds, after Infrastructure Development Finance Company (IDFC) and Indian Infrastructure Finance (IIFCL). Rural Electrification Corporation, or REC, sold bonds through private placement.
   
The long-term bond issued by L&T is of the nature of secured redeemable non-convertible debentures, offering an interest rate of 8.20% per annum in series I and 8.30% compounded annually in series II, wherein the case of series I, the buyback amount is . 1,000 after a lock-in of five years and seven years. In case of series II, the buyback amount is . 1,490 at the end of five years and . 1,748 at the end of seven years. The issue size is about . 100 crore and extendable to . 300 crore on oversubscription.
    The infra companies are mandated to place the coupon rates below the benchmark government bond yields for the respective ten
ures. The bonds offered by IIFCL are in four different series. Series I and II are 10-year bonds offering 8.15% compounded annually whereas series III and IV are 15-year bonds offering 8.30%, which is higher than the 7.5-8% offered by earlier issuers such as IDFC, REC and IFCI.
    IIFCL bonds have received AAA rating by Crisil and Care while L&T Infrastructure bond has been rated as "AA+" by Care and LAA+ by ICRA, the rating agencies for the
bond issues. The IIFCL issue opens on Friday while the L&T bond issue opens for the public on February 7. Interestingly, the IDFC bond issue closes on February 4.
    These bonds are classified as "long-term infrastructure bonds" under Section 80CCF of the I-T Act for tax-saving investments, allowing for a deduction of . 20,000 over and above the . 1 lakh deduction available under section 80C. These bonds are touted to get good response as investors rush to make investments for saving taxes in this period.
    At this time when all the companies coming out with a long-term infra bond are competitively priced and the interest rates offered are narrowly ranged due to RBI guidelines, retail branding and distribution has become an important driver for the success of these issues. Also analysts say, these new category products have seen huge appetite from investors. "The brand and connect with investors is the key differentiator, besides distribution and geographic reach," says Dheerendra Kumar, CEO of Value Search Online.




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Thanks & Regards
Aditya Kachru

Thursday, February 3, 2011

L&T Infrastructure Finance Company Ltd - tax-saving long-term infrastructure bonds under Section 80CCF of the I.T. Act - February 2011

L&T INFRASTRUCTURE FINANCE COMPANY LIMITED

Issue Opens                        :        7th February, 2011

Issue Closes                        :        7th March, 2011

Issue Size                        :        Rs.100 Crores

Green Shoe                        :        Rs.300 Crores

Face Value                        :        Rs.1000/-

Minimum Application Size        :        5 Bonds and multiples of 1 Bond

Maturity Period                :        10 Years from the date of Allotment

Lock in period                :        5 years from the Date of Allotment

Buy Back Option                :        Available at the end of 5 year & 7 years

Interest Rate                        :        8.20% p.a. (Option -1) & 8.30%  p.a. Compounded Annually (Option-II)

Issuance                        :        In Dematerialised  Form(*)

Trading                        :        In Demat Form post Lock-in periond

Listing                                :        NSE

Ratings                        :        CARE AA+ by CARE and LAA+ by ICRA

Lead Managers                :        ICICI Securities Limited, HDFC Bank Limited, SBI Capital Markets Limited and Karvy Investor        
                                        Services Limited

(*) As per 80CCF Notification, the Yield of the Bond (to be paid by the Issuer) shall not exceed the yield on government securities of corresponding residual maturity as reported by the Fixed Income Money Market and Derivatives Association of India (FIMMDA), as on the last working day of the month immediately preceding the month of the issue of the Bond.)

For holding the Bonds in physical form:

(i) Please select the option for holding the Bonds in physical form in the Application Form;
(ii) please provide full details under "Applicants Details", the bank account details in the Application Form; and
(iii) provide self attested copies of the KYC Documents along with the Application Form.

KYC Documents

Self-attested copies of the following documents are required to be submitted by the Applicants as KYC
Documents:

1. Proof of identification for individuals; the following documents are accepted as proof for individuals:
• Passport
• Voter's ID
• Driving Licence
• Government ID Card
• Defence ID Card
• Photo PAN Card
• Photo Ration Card

2. Proof of residential address; the following documents are accepted as proof of residential address:
• Passport
• Voter's ID
• Driving Licence
• Ration Card
• Society Outgoing Bill
• Life Insurance Policy
• Electricity Bill
• Telephone (Land/Mobile) Bill

3. Copy of the PAN card

For more information write to us at 
    Please mention your complete address along with PIN number and phone numbers.

For collection of Bulk Application Call us at 0-991-000-9312 in Delhi-NCR Region

Wednesday, February 2, 2011

Tata Steel Ltd FPO shares will list on Wednesday

Tata Steel Ltd FPO shares will list on Wednesday, February 02, 2011. Issue price of this FPO has been fixed at Rs 610/- per share. FPO was oversubscribed by 6.03 times (1.60 times in retail).

FPO Listing Detail

Listing Date: Wednesday, February 02, 2011
BSE Scrip Code: 500470
NSE Symbol: TATASTEEL
Sector: Steel
ISIN: INE081A01012
Issue Price: Rs. 610.00 Per Equity Share
Face Value: Rs. 10.00 Per Equity Share

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