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Fundamentals - 26.12.12


Nik's Diary:
Nifty and Sensex were slightly up from the previous closing during first hour of trade today. Trade activity was slow due to a holiday yesterday. IT sector was performing sluggishly whereas Metal sector stood steady. FII's movement has also been inactive due to the festive mode. It is expected that next trigger in volatility or market movement would be in the third quarter of this financial year. Resolution to 'fIscal cliff' and an increased fund inflows and outflows by the FIIs, would determine the market trend.

CARE (Credit Analysis and Research Ltd)
CARE (Credit Analysis and Research Ltd) is promoted by major banks and financial institutions and the three largest shareholders are IDBI Bank with 26 per cent, Canara Bank at 23 per cent and State Bank of India holds 9 per cent. Care Ratings, was expected to list at Rs 900 today, a 20 per cent premium to its issue price of Rs 750 per share. It listed at Rs 940. Care Ratings’ hefty premium has been driven by huge demand for its Rs 540-crore initial public offering ( IPO ). The offering was subscribed 41 times, with categories meant for institutions, high net worth investors ( HNI ) and retail getting covered 46, 111 and six times , respectively. Due to huge demand, a lot of investors, who did not get allotments in the IPO, will now look at buying in the grey market. Analysts said the stellar performances of its peers Crisil and Icra on the high in the recent years had also boosted Care’s popularity among investors.


TCS inks deal with Russia's Navigation Information Systems
Russian and Indian companies including TCS and JSC Helicopters signed three different agreements to set up joint ventures and strengthen technology partnerships. These agreements were inked on the occasion of the visit of Russian President Putin to India. Tata Consultancy Services and Russian firm Navigation Information Systems (NIS) signed a strategic cooperation agreement to establish and strengthen technology partner relations between the two enterprises in software development, systems integration, professional services for and marketing of NIS products. Target Price: Rs 1400.

Union Bank and Bank of Maharashtra to raise money via Bonds.
Union Bank of India would raise up to Rs 1,500 crore from bonds over the next three months. The decision to raise funds was taken at the Board meeting held on December 22. The Board approved raising of additional capital funds not exceeding Rs 1,500 crore during the year 2012-13 by way of issue of Tier-I and Tier-II capital bonds as per eligibility. 
Bank of Maharashtra (BoM) too has cleared raising up to Rs 1,350 crore from various bonds. BoM plans to raise up to Rs 350 crore from Tier-I unsecured, non convertible, subordinated, perpetual bonds (Innovative Perpetual Debt Instruments). Besides, it intends to raise up to Rs 1,000 crore from lower Tier-II bonds in the nature of promissory notes. The bonds would have maturity period of 10 years. The issue opens on December 26, 2012, closes on December 29, 2012 and the deemed date of allotment is December 31, 2012.


Target Price: Union Bank @ 282 and Bank Of Maharashtra @ 63.

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