Sahara Banking & Financial Services Fund Announces Dividend

Sahara Mutual Fund has approved the declaration of dividend under dividend option of Sahara Banking & Financial Services Fund. The quantum of declaration will be Rs 2.50 per unit. The record date is April 29, 2011.
Sahara Banking and Financial Services Fund launched in August 2008, is an Equity- Banking Fund. This is the 4th dividend declared by the fund. Prior to this, it declared a 40 per cent dividend in September 2010.


Source: www.valueresearchonline.com


Thanks & Regards,
MAulik Doshi
DENIP Consultants Pvt. Ltd.

Brief views on RBI Monetary policy april 2011

Dear All,

The RBI has prioritized anchoring inflationary expectations by increasing the Repo rate by 50 bps. RBI has acknowledged the fact that the genie is out of bottle and they need to be bold in words as well as action. Given that inflation has consistently been above their target and the tolerance level while inflationary expectations are becoming quite entrenched with a serious risk of persistent wage-price spiral, a strong action even at the cost of sacrificing growth became inevitable. The policy actions recognize the importance of price stability to maintain long term economic growth. The RBI has guided for a higher inflation in the first half while indicating that the yearend inflation for Mar 12 is likely to be 6% with an upwards bias. These policy actions are expected to reinforce the RBI’s inflation fighting credibility and ensure that the monetary policy objectives are realized in a non disruptive manner considering the current inflation- growth dynamics.

Among other significant steps, the RBI has changed the operating procedure of monetary policy by making the weighted average overnight rate as the operating target and moving to a single operating rate i.e the Repo rate. Moving towards a single operative rate would enhance the effectiveness of policy transmission. The savings rate too has been increased by 50 bps and investment restrictions have been imposed on Bank investment in debt oriented Mutual funds.

The lagged effect of monetary tightening coupled with uncertainties on global front would increase the downward risk for growth prospects in FY 2012.

In this environment, asset prices are likely to remain under pressure for some time. In equity markets, investors would favour companies which have the ability to pass on higher costs.

Thanks & Regards ,

Priyanka Kothari ,

Client Service Associate .

BASIS OF ALLOTMENT FOR Muthoot Finance Limited IPO

Dear All,

The issue price of Muthoot Finance Limited IPO is Rs 175/- per equity share.

MUTHOOT FINANCE LIMITED IPO Final Collection Figures

Category Over Subscription

QIB 25.01

HNI 60.94

RET 8.50


Total 24.55

Thanks & Regards ,

Priyanka Kothari ,

Clinent Service Associate .

PwC in $25.5 m settlement over Satyam audit

PricewaterhouseCoopers affiliates agreed to pay USD 25.5 million to former Satyam Computer Services investors to settle US litigation over the audit of the Indian outsourcing company.

The settlement came four weeks after PwC agreed to pay a record USD 7.5 million US penalty over its auditing work for Satyam.

In papers filed late Friday in the US District Court in Manhattan, lawyers for the investors wrote that the accord followed mediation and was an "excellent result" for their clients.

Satyam's founder and former chairman Ramalinga Raju had in January 2009 revealed that what was once India's fourth-largest outsourcing company had fraudulently inflated revenue, income and cash balances by more than USD 1 billion over five years.

The fraud is sometimes known as "India's Enron," referring to the US energy company that collapsed in 2001.

The PwC settlement with investors requires court approvalSatyam agreed in February to pay USD 125 million to settle litigation with the investors and USD 10 million to settle a separate US Securities and Exchange Commission lawsuit.

PwC spokeswoman Caroline Nolan confirmed the auditor's settlement with the investors.

On April 5, the SEC and the Public Company Accounting Oversight Board fined various PwC affiliates in India USD 7.5 million over their work on Satyam.

The SEC accused PwC of "failing to comply with some of the most elementary auditing standards and procedures."

It called its USD 6 million accord its largest with a foreign-based accounting firm. The PCAOB called its USD 1.5 million accord its largest civil money fine.

Satyam has overhauled management and is now known as Mahindra Satyam.

Friday's accord covers PricewaterhouseCoopers International Ltd, PricewaterhouseCoopers LLP, Price Waterhouse (Bangalore), PricewaterhouseCoopers Private Ltd and Lovelock & Lewes.

Lead plaintiffs are the Public Employees' Retirement System of Mississippi, Britain's Mineworkers' Pension Scheme, Norway's Skagen AS, and Denmark's Sampension KP Livsforsikring A/S.

Thanks & Regards ,

Priyanka Kothari,

Client Service Associate .

Birla Power Solutions to raise $100 million; stock up

MUMBAI: Portable generator-maker Birla Power Solutions is looking at raising up to $100 million in the current financial year from private equity players to part finance its diversification plans, the company's managing director told ET. The Yash Birla-led company has planned an investment of 10,000 crore over the next five years to foray into thermal and solar power .

At 9:50 am, shares of Birla Power Solutions were trading 2.70% up at Rs 1.14 on the Bombay Stock Exchange.

For this, Birla Power Solutions may sell up to 15% stake in itself or up to 26% in its subsidiary, Birla Urja, to a private equity player, PVR Murthy said.

"We are talking to 3-4 global private equity investors. Traditionally, we have not had institutional investors but if we are growing big, we need to have them," Murthy said. The company could induct a representative of the PE fund on the board of the company.

"We would rope in their professional practices. We have no issue if they come in at parent company level or at subsidiary level," Murthy said.

The company has a market capitalisation of 239 crore. For expansion into the power sector, Birla Power Solutions will need an equity investment of 2,000 crore, while the balance 8,000 crore would be funded through debt.

Birla Power will also undertake a global depository receipt issue and promoters will infuse funds via warrant conversion to boost the company's equity base. Promoters currently hold 4.04% in the company. They also hold warrants, which on conversion would raise the holding to around 13%, Murthy said.

Thanks & Regards ,

Priyanka Kothari ,

Clinet Service Associate.

NFO - "Sundaram Equity Plus"

Dear Associates,

“Sundaram Equity plus” – Open-end Equity Schemes, Details of the launch are given below:

Name of the Fund – Sundaram Equity Plus

NFO Opens on – 4^th May 2011

NFO Closes on – 16^th May 2011

Fund Facts:

Investment Objective: To seek capital appreciation by investing in equity and equity-related instruments listed in India and in gold-ETF.

Indicative Asset Allocation: Equity and equity related instruments: 65% - 85% • Gold ETF: 15% - 35% • Fixed Income and Money market instruments: 0%-20% • Derivative Exposure: 0%-50%. Overseas Securities Investments: 0%-35%.

Entry Load: Nil.

Exit Load: 1% if redeemed within 12 months from date of allotment.

Options: Growth, Dividend (payout & reinvestment). Default Option will be Growth, If the investor does not clearly specify the choice of option at the time of investing.

Benchmark: The performance of the scheme shall be benchmarked to S&P CNX Nifty index for the equity and equity- related investments (65% of the portfolio) and to the price of Gold in INR terms for the rest of the portfolio i.e. 35%.

Minimum investment Amount: Rs. 5,000.

Fund Manager: Srividhya Rajesh

Reasons to own the Fund:

The fund seeks to invest in a combination of large cap stocks & domestic gold-ETFs.

• The emphasis will be on large-cap stocks.
• Addition of gold-ETF to the portfolio provides diversification and an investment in an alternate asset class.
• Gold acts as an effective hedge against inflation. Historically, higher inflation has led to higher gold price.
• Investment demand in Gold is exploding – Large institutional investors - hedge funds and pension funds - are making large allocations to gold, as are individual investors.
• The scheme is treated as a regular equity fund (investments equity investments of at least 65%) from a taxation perspective.
• Given the relatively fragile economic outlook for developed nations, Gold can serve as a store of value.

Please find attached KIM & One Pager for the Fund and Presentation followed by next mail.

Thanks & Regards ,

Priyanka Kothari .

Client Service Associate.

Useful information

With aggressive expansion plans ahead of them and a vibrant domestic market to cater to, most non-banking finance companies (NBFCs) are taking the retail debenture issue route to scale up their business. At least Rs 5,000 crore worth retail non-convertible debenture (NCD) issue is likely to hit the market in the next six months, going by announcements made by NBFCs.

Gold loans major Manappuram General Finance is planning to raise about Rs 1,000 crore this year through the issue, according to a senior company official.

The largest asset financing company in the country, Shriram Transport Finance, has also announced its plans to raise up to Rs 2,000 crore through an NCD issue, while group company, Shriram City Union Finance, which is into gold and SME lending, plans to mop up Rs 750 crore through the same route. Another major gold loans firm Muthoot Fincorp also plans to raise about Rs 100 crore through a retail NCD issue.Considering that the new financial year has just begun and companies are still charting their fund raising plans for the year, the sum is only expected to be higher.

For NBFC in the gold, vehicle and housing finance business, the going has been good for the past few years. Fund raising through equity is possible only once in a year or two and bank loans too can be raised only up to a certain extent. Beyond that, to meet the growing needs, raising resources through an NCD is the best option, according to experts.“

Apart from being one of the few funding sources to meet the high growth rate and requirement of funds, an NCD issue also increases the visibility and awareness of the company among the public,” Thomas John Muthoot, chairman of Muthoot Pappachan group, told Financial Chronicle.

With interest rates going upwards, retail investors could also see higher interest rates from the forthcoming NCD issues against the 9-11 per cent seen earlier, according to experts.“

Most of these NBFCs have a good track record, so fund raising through a retail issue of NCDs should not be a problem. For customers too, these debt products give a reasonable rate of interest and good option to diversify their investment basket,” said Kamal Bansal, head, investment banking, Bonanza Portfolio.

Thanks & Regards,
Priyanka Kothari
Client Service Executive

Monthly Equity Fund Analysis

Please click on the image for a larger image .

Thanks & regards,

Priyanka Kothari

Client Service Associate

Power Finance Corporation Limited -FPO Details

Please find below mentioned details of Power Finance Corporation Limited FPO.

BOOKS Open : May 10, 2011 (Tuesday)

QIB Bid Closes : May 12, 2011 (Thursday) Retail/HNI Book Closes : May 13, 2011 (Friday)

Price Band : Will be announce one day prior to the issue opens

Lot Size : Will be announce one day prior to the issue opens

Retail Discount : Will be announce one day prior to the issue opens

Employee Discount : Will be announce one day prior to the issue opens

Issue Size : 22,95,53,340 Equity shares of Rs.10/- each

Fresh Issue : 17,21,65,005 Equity Shares

Offer for Sale : 2,73,88,335 Equity Shares

By Government of India Employee Reservation : 2,75,464 Equity Share

Net Issue : 22,92,77,876 Equity Share

QIB Book : 11,46,38,938 Equity shares (50% of the Net issue size)

HNI Book : 3,43,91,681 Equity shares (15% of Net issue size)

Retail Book : 8,02,47,257 Equity shares (35% of Net issue size)

BRLMs : JM Financial Consultants P. Ltd,ICICI Securities Ltd, DSP Merrill Lynch Ltd, Goldman Sachs (India) Securities Private Limited

Registrar to the Issue - Karvy Computershare Private Limited

Thanks & regards,
Priyanka Kothari
Client Service Associate

NFO : Kotak FMP Series 46

The New Fund Offer of the scheme opens on May 09, 2011 (Monday) and closes on May 19, 2011 (Thursday).

MINIMUM INVESTMENT during NFO:
Rs. 5,000/- and in multiples of Rs 10 for purchase and switch-ins.

OPTIONS:
Growth and Dividend Payout.

INVESTMENT OBJECTIVE:
The investment objective of the Scheme is to generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk. The Scheme will invest in debt and money market securities, maturing on or before maturity of the scheme.

LISTING:
The units of the scheme will be listed on NSE on allotment. The units of the scheme may also be listed on the other stock exchanges.

BENCHMARK:
CRISIL Short Term Bond Index.

LIQUIDITY:
Units of this scheme will be listed on National Stock Exchange. Investors may sell their units in the stock exchange(s) on which these units are listed on all the trading days of the stock exchange. The units cannot be redeemed with KMMF until the maturity of the scheme.

MATURITY:
370 Days after the date of allotment of units.