For a Detailed Report please reach out to us ... - arc-fs.com this week (25 jan'10).pdf ·...

Strategies for your Success

For a Detailed Report please reach out to us at [email protected] or at +91 11 4562 2128

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© 2010 ARC Financial Services Private Limited, All rights reserved. Sameer Agarwal: [email protected] I www.arc-fs.com


Stock Markets: A sell-off in global stocks and disappointing earnings numbers from a

few big corporates pulled down the key indices during 4 out of 5 trading sessions in the

week. The BSE Sensex fell below the 17,000 mark and ended the week down 695 points

or 4% to 16,860. The Nifty tumbled 216 points or 4.1% to 5,036

Biggest loser and Gainer:

Maruti was the top gainer for the week with a gain of 1.64%

While L&T was the top loser for the week with a loss of 10.83%

Foreign Exchange Reserves: India's foreign exchange reserves rose $899M to touch

$285.1B during the week ended 15th Jan’10, largely on account of revaluation of non-

dollar assets in reserves

Inflation: Annual food inflation based on the WPI eased marginally to 16.8% for the week

ended 9th Jan’10, even as price rise in many items continued to remain high. Food

inflation for the previous reported week was recorded at 17.3% on a YoY basis

Crude oil: The crude oil declined to a one-month low in New York after equities dropped

on the US President's proposed restrictions to rise-taking at financial institutions and on

speculation China will raise interest rates. Crude oil for Mar’10 delivery declined $1.17

(1.5%) to $74.91 per barrel on the New York Mercantile Exchange on 22nd Jan’10

Gold: Gold for February delivery ended lower at $1,090.7 an ounce at the Comex

division of the New York Mercantile Exchange on 22nd Jan’10 despite a weaker US dollar

17,554

17,64117,486

17,474

17,05116,860

15 Jan 18 Jan 19 Jan 20 Jan 21 Jan 22 Jan

BSE Sensex

10,610 10,61010,725

10,603

10,390

10,173


Dow Jones

21,654

21,460

21,678

21,286

20,86320,726


Hang Seng

BSE Sensex P/E

BUSINESS THIS WEEK - India

18 Jan 19 Jan 20 Jan 21 Jan 22 Jan

22.6022.39 22.21

21.8221.31

25 January 2010

1

Index Closing

22 Jan’10

Absolute

Change%

Change

BSE Sensex 16,860 (694) (4.0%)

NSE Nifty 5,036 (216) (4.1%)

Dow Jones 10,173 (437) (4.1%)

S&P 500 1,092 (44) (3.9%)

NASDAQ 2,205 (83) (3.6%)

FTSE 100 5,303 (152) (2.8%)

Nikkei 10,591 (391) (3.6%)

Hang Seng 20,726 (928) (4.3%)



Mergers, Acquisitions and Joint Ventures

BUSINESS THIS WEEK - India

2

TMT:

Tata Communications acquires Digital Media

Management Co

Tata Communications, acquired BT group`s (BT) Mosaic

business, which offers an on demand digital media

management platform that manages content and

workflow from production to distribution across

collaborative market ecosystems

The amount of acquisition remains undisclosed

Global Cricket Ventures Acquires Willow TV

Global Cricket Ventures Ltd acquired the US based

Willow TV Inc. which runs the portal (www.willow.tv) for

live internet streaming of cricket matches from across the

world

GCV has bought out the total share capital of the

California-based company

The size of the deal was not disclosed

GTL Infra buys Aircel's tower biz for INR 84B

In the largest M&A transaction in India in the last 14

months, GTL Infrastructure Ltd will acquire telecom tower

assets of Aircel Ltd for INR 84B ($1.84B) through a

Special Purpose Vehicle (SPV)

The deal, which will make GTL Infra the world’s largest

independent telecom tower firm, will give the company an

additional 17,500 telecom towers taking its total portfolio

to 32,500

25 January 2010

Healthcare:

Ranbaxy Laboratories acquired angalore-based

BiovelLifesciencesPvt Ltd.

Ranbaxy Laboratories signed an agreement to acquire

product rights and manufacturing facility of Bangalore-

based BiovelLifesciencesPvtLtd., for an undisclosed sum

This will provide an entry platform to manufacture

vaccines as well as biotherapeutics

Biovel’s development pipeline comprises of vaccines and

biotherapeutics


Strategies for your SuccessBUSINESS THIS WEEK - India

Capital Raising (PE, VC, Right Issue)

2

Real Estate & Infrastructure:

IL&FS Investment Managers invests INR 670M in

Emerald Lands

IL&FS Investment Managers (IIML) is investing INR 670M

in Emerald Lands Pvt Ltd, which is part of Delhi-based

realty developer Silverglades Group

IIML, which manages two real estate funds worth over

$1.4B, is picking up a 28% stake in Emerald Lands Pvt Ltd

Banking & Financial Services:

GrameenKoota raises INR 200M from MicroVest

Bangalore-bsed microfinance entity Grameen Financial

Services Pvt Ltd (GrameenKoota) has raised INR 200M

from MicroVest I, a US based PE fund

With this deal, Microvest has made its debut investment in

India

25 January 2010

TMT:

Mumbai Angels invests in a market research co

Mumbai Angels has made an investment in AIOCD

Pharmasofttech AWACS Pvt Ltd, which is engaged in

creating an electronic infrastructure for pharmaceutical

retailers & wholesalers across the country

The deal is the 1st investment from Mumbai Angels this

year

The valuation and size of investment is not disclosed



3

IPO Scan

Listings Last Week:

No listing last week

IPOs Closed Last Week:

No IPOs closed last week

Year IPOs*

2010 4

2009 17

2008 37

2007 103

2006 75

2005 39

Future Plans:

Aqua Logistics, a logistics and supply-chain

company

Issue Size: INR 1.5B

Price Range: INR 220 – 230

Discount: 5% to Retail Bidders

Issue Opens: 25 Jan’10

Issue Closing Date: 28 Jan’10

BhartiInfratel and Indus Towers

Issue Size; NA

Proposed Date: FY’11

Orient Green Power, renewable energy

company

Issue Size: NA

Stake: ~20%

Proposes Date: Q2 CY’10

Oberoi Realty Ltd

Issue Size: INR 10B – 12B ($2.2B)

Stake: ~12.1%

Proposes Date: Q2 CY’10

DHRP Filed This Week With SEBI

Date of Filling Company Name Industry

20 Jan’10 Oberoi Realty Limited Real Estate

22 Jan’10 Technofab Engineering Limited Industrials

*IPO’s on the basis of listing

25 January 2010



4

In Focus

Banks may shed PE assets in Obama plan

President BarackObama's plan to limit financial risk-taking could force banks, such as Goldman Sachs or JPMorgan, to shed parts of their

private equity operations

Among the proposals, which require congressional approval, is that banks or financial institutions that own banks would not be able to

own, invest in or sponsor private equity funds unrelated to serving customers

25 January 2010



4

Company Net sales (INR M) Net profit (INR M)

Q3 Dec’08 Q3 Dec’09 Change Q3 Dec’08 Q3 Dec’09 Change

Maruti Suzuki’s 45,130 73,340 63% 2,140 6,880 221%

Essar Oil* 84,050 99,580 18% (12,300) (2,260) NM

McleodRussel 2,481 3,473 40% 486 1,379 184%

NMDC Ltd 23,353 15,880 (32%) 14,250 8,600 (40%)

Bharat Forge 4,531 5,078 12% 43.5 380 774%

NIIT Ltd 2,789 2,836 2% 55 95 73%

Noida Toll Bridge 200 224 12% 83 86 4%

BhartiAirtel 96,754 97,722 1% 21,667 22,100 2%

Zee News 1,430 1,700 19% 130 192 27%

Dish TV 1,928 2,772 44% (1,181) (762) (35%)

ITC 39,562 47,393 20% 9,032 11,442 27%

Tech Mahindra 11,320 11,870 5% 2,220 1,720 (23%)

Reliance Industries 1,157,650 1,348,910 17% 34,620 40,080 16%

BHEL 63,285 74,225 17% 7,886 10,725 36%

L&T 85,930 80,710 (6%) 6,040 7,590 26%

ICICI Bank 103,500 77,600 (25%) 12,700 11,000 (13%)

ONGC 124,364 153,145 23% 24,800 30,500 23%

HDFC Bank 44,685 40,348 (10%) 6,217 8,185 32%

Results Updates

25 January 2010

*The results for the period ended 31 Dec’09 are not comparable with the previous period ending on 31 Dec’08, in view of the start of commercial production of refinery with

effect from 1 May’08



Training the Capital Markets AspirantsandParticipants

“I think its a unique path which helps

us to bridge the gap between our

theories and their application. The

best thing about ARC is their

knowledgeable & experienced

people.”

Analyst, Solitaire Capital

“The Research and Valuation

Programme helped me in cracking

the interview with a leading research

house.”

Sr. Analyst, Copal Research

“Applicability of DCF valuation is

totally different from what I learnt

during my studies. Now, I can say

with confidence that I know how to

value a company with DCF”

Past Delegate, JK Business School

“Theoretical topics explained with

practical application and real life

capital markets experience”

Past Delegate, ARC Academia Batch

www.arc-academia.com

Programmes Duration Starts on Days

Research & Valuation 14 Days 20 Feb’10 Saturdays & Sundays

Corporate Valuation & Financial Modeling 3 Days 12th Feb’10 Friday,Saturday &Sunday

12th, 13th 14th Feb’10

Dynamic, highly practical & interactive training programmes with real life case studies

Bridge the gap between academic theory and on-the-job application

Telephone:

+91 11 4562 2127Email:

[email protected]

http://www.arc-academia.com/in-house-training.html



ARC Financial Services Private Limited

311, Ansals Majestic Tower

PVR Complex, Block G, VikasPuri

New Delhi – 110018

India

Tel: +91 11 4560 1622

Tel: +91 11 4562 2127

Website: www.arc-fs.com

Email: [email protected]

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