The stock surges to Rs 140 in the early trade

At 11.30 am, it was at Rs 112.70, up Rs 32.7 or 40.87 per cent on the index. A total of 1.28 crore shares were traded in the counter so far.

The total number of shares traded so far stood at 23137174.

The scrip has touched an intraday low of Rs 108.10 so far.

DQ Entertainment is one of the producers in animation as well as game art and entertainment content, in Indian as well as global media industry. The company has forayed in production and distribution of live action television and feature films and also creates game art for mobile, online portals and next generation consoles. The company has 10 production facilities in India and worldwide third party sales representatives.

He also said that his ministry is examining the report of the expert group in order to suggest steps for monitoring the end use of the IPO funds.

The expert group set up in August 2008 was to analyse the loopholes in the mechanism used to scrutinise how the money is utilized, which was raised through IPOs. The group includes ministry officials as well as representatives from Sebi and BSE and NSE.

Moreover, the expert group was also to suggest steps in order to prevent manipulation of price by promoters, besides also recommending measures related to various investor complaints.

However, the minister added that the initial public offers are primary responsibility of the Sebi and the government would coordinate whenever necessary. The MCA has reportedly asked Sebi to devise ways of monitoring the end utilization of money collected through IPOs to keep a check on vanishing companies.

The ministry currently through technical scrutiny of balancesheets, keeps a check if companies are using IPO proceedings as promised in the prospectus.

India Inc in the current financial year has raised Rs 46,778 crore through the IPOs.

Moreover, various companies have already filed papers with Sebi for the nod for raising a funds through public offers.

Meanwhile, in the first 3 months of current calendar year, 3 companies in jewellery and allied businesses forayed into the capital market with their initial public offers (IPO).

Thangamayil Jewellery was the first company in the sector to go through the primary market route in order to raise funds and it gathered Rs 10.5 crore through its IPO.

The company had entered with an issue size of 14.07 lakh shares in the price range of Rs 70-75 per piece, as per the data available with the National Stock Exchange (NSE).

Moreover, the issue was open between January 27 to January 29.

The Rs 371-cr public offer of Shree Ganesh Jewellery House that hit the capital market in the current month was subscribed nearly two times.

The initial share sale offer of Goenka Diamond and Jewels was the latest issue to tap the capital markets for fund raising.

The Rs 145-crore IPO was subscribed 1.07 times.

About 22 companies have made public offers, which include the follow-on public offering of NMDC and NTPC in this year.

On the other hand, India Inc raised a whopping Rs 23,730 crore through IPOs between April 2009 to January this year.

It is nearly 10 times higher than the fund mobilized during the corresponding period last fiscal.

As many as 28 companies came out with IPOs during April-January 2009-10 raising a total of Rs 23,731.88 crore.

This is with the stock market re-emerging as the preferred place for fund raising.

Previously, the Indian diamond processing industry was caught with another problem of rough stone shortage by 25-30 per cent, after struggling to overcome the weak sales in the last year

Many jewellery makers were planning to showcase innovative designs and cuts in one of the largest jewellery shows in Asia, which is scheduled to commence from March 5-9 in Hong Kong.

But the roughs stone shortage has limited their scope. There is a fear among the participants that their overall sales would be hit badly.

However, earlier, the exports of India’s gem and jewellery during April-January surged 14.30 per cent on year at Rs 1.07 lakh crore, according to provisional data by Gems and Jewellery Export Promotion Council (GJEPC).

The exports of gem and jewellery in the same period, in dollar terms, surged only 7.42 per cent on year at $22.54 billion, the council said.

The council said tat the data does not include figures from Vishakhapatnam SEZ.

Meanwhile, GJEPC said that the exports of cut and polished diamonds have grown 18.46 per cent on year to Rs 65,693 crore during the period under review.

The gold jewellery exports from the domestic tariff area surged 0.49 per cent to Rs 7,958 crore, while the exports from the special economic zones grew by 11.28 per cent at Rs 28,513 crore, it said.

The total exports of gold jewellery surged by 8.73 per cent on year to stood at Rs 36,471 crore, the data showed.

On the other hand, the apex body set up by the Union ministry of commerce to monitor the jewellery business overseas, Gems & Jewellery Export Promotion Council (GJEPC), says it is planning to pull out of the diamond cutting and polishing business in China.

The company will utilise the funds in order to set up a Greenfield unit at Ghaziabad for manufacturing specialty inks such as – digital ink, ultra-violet ink, offset printing ink and ink concentrates to expand and support its existing product line.

The FPO which is likely to float next month will comprise equity shares with face value of Rs. 10 each aggregating Rs. 51.5 crore to be decided through 100 % book building process.

The company has already filed a draft prospectus with the Securities and Exchange Board of India’s (SEBI).

Mr. Sanjiv Agarwal, Chairman of Tirupati Inks Ltd. said part of the proceeds from FPO, around Rs. 15 crore would be advanced towards the working capital needs of the proposed plant, which will start functioning by the end of the current calendar year.

The company already has 2 plants in Kanpur and Jammu, and eyes to list its stocks on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) following the FPO.

Mr. Agarwal said since the stock markets are on the surge, the company is quite positive of the capital market response to its FPO and also on the domestic ink industry was growing at over 15 % per annum.

50 % of the net issue would be allocated on a proportionate basis to Qualified Institutional Buyers (QIB), of which 5 % will be available to mutual fund. 35 % of the net issue will be reserved for retail investors and the remaining 15 % is available to non-institutional bidders.

The company has appointed Ashika Capital Ltd. as the book running lead manager for the FPO.

The company has posted a turnover of Rs. 51 crore in last financial year, is eyeing a turnover of Rs. 65 crore this financial year (2009-10). The company has presence in the export market also.

As per the details available on the National Stock Exchange (NSE) website, the FPO was subscribed only 0.17 times with bids received for 57.12 million shares.

The bids were at the lower end of the price band (Rs 300), suggesting that the investors prefers to stay away owing to concerns over high valuations.

The FPO includes 332.24 million shares in the price band of Rs 300 to Rs 350.

The entire issue is being made through the book-building route after the failing of the French auction system, which was used for REC and NTPC FPO in order to attract institutional investors.

The FPO opens yesterday and will close on March 12.

Meanwhile, the shares of NMDC, which remained on the sellers’ radar for the past few days rose marginally on Wednesday.

On the Bombay Stock Exchange, it closed at Rs 379.85, up 1.1 per cent. On NSE, it closed at Rs 380, up Rs 2.35. NMDC’s day one performance, however, was similar to that of other FPOs from state-owned companies.

On the other hand, NTPC’s FPO was subscribed 0.77 times on its opening day and only 1.2 times on the final day.

While Rural Electrification Corporation FPO was subscribed 0.2 times on the first day and finally subscribed 3.14 times.

In both cases, institutional investors like state-owned Life Insurance Corporation stepped in to take up the slack from retail investors.

Meanwhile, NMDC is currently trading at Rs.368.35, down by 3.02% at 9.58 AM.

The stock hit an intraday high of Rs.372 till now, as against the 52-week high of Rs.571.8.The stock hit a low of Rs.367.3 during the day. The stock had hit a 52-week low of Rs.141 on March 16, 2009.

The stock opens at Rs.371 at BSE. The total traded volume of the scrip on BSE till now stood at 162854.

Meanwhile today, the BSE Sensex is trading down by -19.26 points, or -0.11% , at 17079.07 on 9:58 AM.

The NSE Nifty is trading down by -7.70 points, or -0.15% , at 5108.55.

NMDC has an equity capital of Rs 396.47 crore as of 2009 Dec. The face value per share is Rs 1. At the current price of Rs 368.35, the P/E multiple stood at 33.4596761030812 with book Value of 29.35 and P/BV at 12.55.

The total shareholding pattern of the company as on Dec 2009 stood at Promoters- 98.38%, Institutional Investors- 1.38%, General Public- 0.15% and other investors- 0.09%.

Considering the current price of Rs. 368.35 at 9:58:00 AM , the stock had underperformed the market over the past one month till 11/03/2010 declined -24.93% as compared to the Sensex’s return of 6.46% and NSE Nifty’s 6.46 % returns.

Considering the current price of Rs. 368.35 at 9:58:00 AM , the stock had underperformed the market over the past one quarter till 11/03/2010 fell -11.99% as compared to the Sensex’s return of -0.11% and NSE Nifty’s -0.11 % returns.

Meanwhile, NMDC is eyeing to increase its production capacity to 50 mn tonnes (mt) by 2013-2014 from the current capacity of 30 mt. The company also plans to introduce a new pricing mechanism from 1st April 2010.

NMDC will also issue its Follow-on Public Offer (FPO) which would open tomorrow, offering 330.5 mn equity shares. Due to the growth in domestic and international demand, the company is expecting increase in prices

Moreover, the company is eyeing to establish 3 functional divisions in order to diversify into the energy, infrastructure and fertiliser sectors.

A government official said that the company plans to set up a conventional and non-conventional power projects, steel manufacturing facilities and fertiliser plants under different joint ventures with prospective partners.

He said that the company plans to form 3 separate divisions, each will be headed by expert CEOs. Respective divisions will create alliances with private and public sector companies specialising in respective fields.

Mr. Kabul Chawla, Managing Director of BPTP said the company has applied for the approval from Securities and Exchange Board of India (SEBI) for its IPO.

Currently, the company has a networth of Rs. 1,600 crore and is likely to register a topline of R. 1,000 crore and Profit After Tax (PAT) of Rs. 200 crore in the current financial year.

Mr. Chawla said the proceeds from the issue would be utilised to pre-pay Rs. 325 crore of its debt while Rs. 500 crore has been set aside for government use.

Currently, the company has a combined debt of Rs. 900 crore.

Mr. Chawla also said that in 2011, Rs. 150 crore will come up for repayment and in 2012, Rs. 600 crore. He said the company is not stressed in terms of debt and planned to pre-pay Rs. 325 crore out of the issue proceeds.

JP Morgan and SSKI are the Book-Running Lead Managers (BRLMs) for this issue.

The company which is mainly into mid-housing development business also has 4 SEZ projects but is presently going slow on them.

He said seeing the current market conditions, the company has postponed the activity on its SEZs project so as not to over-leverage its balance-sheet.

He also said that the company has the option of converting its 4 IT SEZs at – Noida, Greater Noida, Gurgaon and Faridabad for residential purposes.

On its focus on the National Capital Region (NCR) market he said that there is a great potential here and the company intends to focus on this region.

The company has 1 project in Hyderabad spread over 10 acres, which it plans to take up at an appropriate time.

BPTP has a land in reserve of around 1,860 acres. It also has 37 mn sq ft of ongoing projects and has already sold 31 mn sq ft worth Rs. 5,500 crore so far. Its receivables stand at Rs. 2,500 crore.

JP Morgan and Citi currently hold 12 % stake in the company while Merrill Lynch has 49 % stake in one of its Special Purpose Vehicle – Vital.

At present, Citi Properties holds 50 % stake in its Faridabad SEZ SPV, 17 % in its Noida SEZ SPV and 43 % in its Greater Noida SEZ SPV.

BPTP Ltd. is a real estate development company and is undertaking a wide-range of projects including – integrated townships, residential & commercial complexes, retail spaces, IT parks and SEZs.