REC Long Term Infrastructure Bonds Issue - Januray 2011

The REC Long Term Infrastructure Bonds Issue is  opening today i.e., 12th January 2011 and will be closing on 31st March 2011. 

Below are the Issue Highlights:

Issuer	Rural Electrification Corporation Limited (“the Issuer”)
Offering	100000 Unsecured, Redeemable, Non-Convertible, Taxable Bonds of Rs. 5,000/- each aggregating to Rs. 50 Crore with a green-shoe option to retain over-subscription for issuance of additional Infrastructure Bonds
Type	Private Placement basis
Instrument	Unsecured, Redeemable, Non-Convertible, Taxable Bonds having benefits under section 80CCF of the Income Tax, 1961 for long term Infrastructure Bonds
Rating	‘AAA /Stable’ by CRISIL, ‘CARE AAA’ by CARE ,’LAAA’ by ICRA, ‘AAA(IND) by Fitch
Eligible Investors	Resident Indian Individual (Major) and HUF through Karta of the HUF
Security	Unsecured
Face Value	Rs. 5,000/- per bond
Issue Price	At par (Rs. 5,000/- per bond)
Minimum Subscription	2 Bonds of Rs. 5,000/- each and in multiples of 1 Bond thereafter,
Tenure	10 years, with or without buyback option after five years
Options for Subscription	The Bonds are proposed to provide the following options- Option I - Annual Coupon and Buyback after 5 years Option II - Annual Coupon and No Buyback Option
Redemption/Maturity	At par at the end of 10th year from the deemed date of allotment.
Coupon rate	Option I (Annual Coupon and Buyback after 5 years) – 8.00% p.a. Option II (Annual Coupon and No Buyback) – 8.1 % p.a.
Listing	Proposed to be listed on BSE/NSE or Both
Trustee	IDBI Trusteeship Services Limited
Depository	National Securities Depository Ltd. and Central Depository Services (India) Ltd.
Registrars	Beetal Financial & Computer Services (P) Ltd.
Mode of Payment	Interest payment will be made through ECS/At Par Cheques/Demand Drafts
Issuance	Demat and Physical Form
Trading	Demat mode only
Issue Open Date	January 12 ,2011
Issue Close Date	March 28, 2011 . There is  an option to issuer would have pre-close the issue by giving 1 day notice to the Arrangers
Deemed Date of Allotment	31st March, 2011
Annual Interest Payment and interest on Application money	The first annual interest shall be paid on 31 March 2012.Interest on application money at the prescribed rate from the date of credit in REC Bank Account to the date of allotment shall be paid with first annual interest payment

   

For Corporate Bookings of Infra Bonds in Delhi - NCR Region Call @ 0-9910009312

For more information write to us at info@safeinvestindia.com

REC LONG TERM INFRASTRUCTURE BONDS January 2011

The REC Long Term Infrastructure Bonds Issue is  opening today i.e., 12th January 2011 and will be closing on 31st March 2011. 

Below are the Issue Highlights:

Issuer	Rural Electrification Corporation Limited ("the Issuer")
Offering	100000 Unsecured, Redeemable, Non-Convertible, Taxable Bonds of Rs. 5,000/- each aggregating to Rs. 50 Crore with a green-shoe option to retain over-subscription for issuance of additional Infrastructure Bonds
Type	Private Placement basis
Instrument	Unsecured, Redeemable, Non-Convertible, Taxable Bonds having benefits under section 80CCF of the Income Tax, 1961 for long term Infrastructure Bonds
Rating	'AAA /Stable' by CRISIL, 'CARE AAA' by CARE ,'LAAA' by ICRA, 'AAA(IND) by Fitch
Eligible Investors	Resident Indian Individual (Major) and HUF through Karta of the HUF
Security	Unsecured
Face Value	Rs. 5,000/- per bond
Issue Price	At par (Rs. 5,000/- per bond)
Minimum Subscription	2 Bonds of Rs. 5,000/- each and in multiples of 1 Bond thereafter,
Tenure	10 years, with or without buyback option after five years
Options for Subscription	The Bonds are proposed to provide the following options- Option I - Annual Coupon and Buyback after 5 years Option II - Annual Coupon and No Buyback Option
Redemption/Maturity	At par at the end of 10th year from the deemed date of allotment.
Coupon rate	Option I (Annual Coupon and Buyback after 5 years) – 8.00% p.a. Option II (Annual Coupon and No Buyback) – 8.1 % p.a.
Listing	Proposed to be listed on BSE/NSE or Both
Trustee	IDBI Trusteeship Services Limited
Depository	National Securities Depository Ltd. and Central Depository Services (India) Ltd.
Registrars	Beetal Financial & Computer Services (P) Ltd.
Mode of Payment	Interest payment will be made through ECS/At Par Cheques/Demand Drafts
Issuance	Demat and Physical Form
Trading	Demat mode only
Issue Open Date	January 12 ,2011
Issue Close Date	March 28, 2011 . There is  an option to issuer would have pre-close the issue by giving 1 day notice to the Arrangers
Deemed Date of Allotment	31st March, 2011
Annual Interest Payment and interest on Application money	The first annual interest shall be paid on 31 March 2012.Interest on application money at the prescribed rate from the date of credit in REC Bank Account to the date of allotment shall be paid with first annual interest payment

 
    To Apply write to us at info@safeinvestindia.com

     Please mention your complete address along with PIN number and phone numbers.

5 interesting IPOs to watch in 2011

Let's take a look at five of the most lucrative public offers in 2011.

Micromax IPO
India's biggest domestic mobile handset seller Micromax Informatics is expected to go public early in 2011. The company filed its prospectus late last month. The company is expecting to raise 426 crore through the offer. The company will use 50 percent of the IPO proceeds to set up a handset manufacturing plant in India while the rest would be spent in areas such as marketing and expansion. Micromax, according to IDC, has a 4.1 percent market share in India and is now valued at over $1 billion. M Financial, Citigroup, Edelweiss and Nomura are the book running lead managers to the issue. For the year ended March 2010, Micromax had sales of 1,600 crore on selling over 70 lakh handsets, with a net profit of 200 crore, as against revenue and profit of 350 crore and 35 crore respectively for the previous year.

Tata Autocomp Systems IPO
Auto parts maker Tata Autocomp Systems is to enter capital markets so as to raise 750 crore through an Initial IPO which include equity shares of 10 each. As per the prospectus, shareholders including Tata Motors, Tata Sons, Tata Capital and Tata Industries will together sell nearly 35.63 million shares in the company. The Book Running Lead Managers to the offer are JM Financial Consultants, Tata Capital Markets and JP Morgan India. The issue will dilute the company's post-issue equity capital by at least 25 percent. The company reported 41.77 crore net profit for the year ended March 31, 2010. For the half year ended September 30, 2010, profit stood at 35.62 crore.

IOT Infrastructure and Energy Services IPO
Indian Oil Corporation (IOC) co-promoted oil EPC firm, IOT Infrastructure and Energy Services is all set to hit the capital market with an IPO of 800 crore before March. The company had filed its Draft Red Herring Prospectus with SEBI for the IPO in September which entails marginal divestment by its existing owners and issue of fresh shares. Proceeds of the IPO are to be used for a capital expenditure of 1,920 crore for setting up a facility in Paradip and 350 crore outlay planned for a unit in Raipur. The public issue involves sale of 58.19 million fresh shares and offer for sale (divesment) of 14.59 million shares by the promoters. The company posted consolidated revenues of 15.2 billion with an EBITDA margin of 18.5 percent and net margin of 8.8 percent during FY10. The sole Book running lead manager to the issue is Enam Securities.

L&T Finance IPO
L&T Finance, the financial arm of Larsen and Toubro (L&T) has filed for an IPO to raise 1.500 crore, which is expected to hit the capital market in the fourth quarter of FY2011. The dilution for L&T Finance IPO will be around 10-12 percent. The company intends to utilize the proceeds from the issue to meet the capital adequacy requirements to support the future growth in their business. The book running lead managers to the issue are HSBC, Citigroup, JM Financial, Barclays Capital, and Credit Suisse. The company's market capitalization stands at 120,193.44 crore. L&T announced a 32 percent rise in net profit for the quarter ended September 2010 at 765 crore on an 18 percent revenue growth.

HPCL-Mittal Energy (HMEL) IPO
The joint venture between Hindustan Petroleum Corporation and Singapore-based Mittal Energy Investment, HPCL-Mittal Energy (HMEL) is going to sell 10 percent stake each in the Bathinda refinery in a public offering in Q4 of 2011. The IPO is expected to raise 1,000-1,500 crore. Both HPCL and Mittal Energy hold stake of 49 percent each in the company, while the financial institutions hold the rest 2 percent. HPCL reported a net profit of 2,089.61 crores for the second quarter ended September 30, 2010 compared with a loss of 136.68 crores in the same period last year.

Natural Gas Sector; The stage is set, let the flow begin

Natural Gas Sector

The stage is set, let the flow begin

The natural gas transmission sector is gearing up for a long and sustained growth trajectory as impediments/roadblocks hampering its growth in the past are cleared. Increased natural gas supply from the KG D6 basin, higher supply of RLNG at reasonable rates, infrastructure in place to ensure seamless supply, emerging clarity on transmission tariff and strong demand from user industries (power, fertilizer, CGD etc) create a conducive environment for transmission and distribution players to clock steady growth.

We initiate coverage on the Natural Gas sector- specifically transmission and distribution companies with a long term bullish view. With most of the concerns on the sector being addressed, we expect a sharp improvement in the fundamentals of companies under our coverage. We expect our natural gas universe to register revenue, EBIDTA and PAT CAGR of 17.4%, 13.3% and 11.1% over FY10-FY12E respectively. We initiate coverage on GSPL, GGCL and Petronet LNG with a BUY rating and GAIL and IGL with an ACCUMULATE rating. While we prefer the business model of GAIL and IGL, the sharp run up in its prices offer limited scope for upsides from current levels.

Company	Rating	CMP (Rs)	Target (Rs)
GAIL	Accumulate	505	565
GSPL	Buy	116	151
Indraprastha Gas	Accumulate	338	382
Gujarat Gas	Buy	398	481
Petronet LNG	Buy	128	156

 

 

Mid-Quarter Monetary Policy Review: December 2010

Monetary Measures
It has been decided to:

• retain the repo rate at 6.25 per cent and the reverse repo rate at 5.25 per cent under the Reserve Bank's liquidity adjustment facility (LAF);

• retain the cash reserve ratio (CRR) at 6.0 per cent of net demand and time liabilities (NDTL) of scheduled banks.
  

Liquidity Measures
It has been decided to:

• Firstly, reduce the statutory liquidity ratio (SLR) of scheduled commercial banks (SCBs) from 25 per cent of their NDTL to 24 per cent with effect from December 18, 2010;
  

• Secondly, conduct open market operation (OMO) auctions for purchase of government securities for an aggregate amount of 48,000 crore in the next one month, the schedule for which is being issued separately.
  

The above two measures are expected to inject liquidity on an enduring basis of the order of ` 48,000 crore.

Given the permanent reduction in the SLR by one per cent of NDTL, the additional liquidity support under the LAF announced by the Reserve Bank on November 29, 2010 will now be available up to the extent of 1.0 per cent (instead of 2.0 per cent) of the NDTL of SCBs from December 18, 2010 to January 28, 2011.