Stocks to watch: Rel Comm, Bharti

Investment Advisor, PN Vijay is of the view that buy Bharti Airtel, Reliance Communications on declines.
Vijay told CNBC-TV18, "Bharti Airtel and Reliance Communications are buyers at every decline and the type of growth rates and the product offerings there and gelling out continuously, I think they are very great stories. The others I am not so sure because there are many issues that are involved in MTNL, VSNL, surely and the Tata Tele ofcourse it has a nice run which is nice but not enough to go buy, I would really stick to the good old Bharti and Reliance Communications and buy them on every decline."
RCOM : Trend & Volume
Source : moneycontrol

IFCI likely to induct strategic investor

The IFCI stock has been buzzing on the back of reports of the likely induction of a strategic investor and speculation over the value of its investment book, reports CNBC-TV18.

FCI stock is up 200% in 2 months. Analysts observe that it is driven by speculation on value of investment book. IFCI has a negative net worth of around Rs 3,200 cr.

Government is proposing to induct a strategic investor. It could be a foreign or a local bank.

A change in strategy is under way after failed merger attempts.

The book value of IFCI’s quoted investments is Rs 697 cr as of March 2006. The market value of quoted investments is estimated at Rs 2,800-3,500 cr. The book value of unquoted investments is Rs 2,311.36 cr.

IFCI has holdings in SHCIL, DFHI, NSE, OTCEI & LIC Housing Finance. It is to sell its 21% holding in ICRA through IPO.

IFCI’s incremental lending is at Rs 1000 cr and its only to blue chips. Its net NPA is down to Rs 66 cr (0.9%). IFCI is to improve balance sheet then look at further lending.

IFCI’s cost of funds is at 6% and its rise in NIMs is by 50 bps (around 3%).

Techanical Chart
Source : moneycontrol

Apply for Firstsource IPO

Firstsource (formerly ICICI OneSource) is a leading Indian BPO company providing customized business process transformation in the Banking & Financial Services, Telecom & Media and Healthcare sectors. The company currently employs over 10,717 employees across 20 delivery centres in India, the UK, the US and Argentina. The company has over 74 leading organisations as customers, including six “Fortune Global 500” banks, two “Fortune Global 500” telecommunications companies and three “Fortune 100” healthcare companies.

Firstsource Solutions is open for subscription with its initial public offering, IPO of 69.30 million equity shares of Rs 10 each for cash at a premium to be decided through a 100% book-building process.

The price band for the issue has been fixed between Rs 54 and Rs 64 per share. The issue closes for subscription on February 2, 2007

The issue of 69,300,000 equity shares comprises a fresh issue of 60,000,000 equity shares by the company and an offer for sale of 9,300,000 equity shares by the ICICI Group, including a reservation for certain eligible employees of upto 1,200,000 equity shares of Rs 10 each. The issue will constitute 16.65% of the fully diluted post-Issue equity share capital of the company.

The company intends to use the net proceeds of the issue to make acquisitions, set up new facilities, repay a loan and for general corporate purposes. Firstsource will be listing its shares on both the National Stock Exchange & the Bombay Stock Exchange.

Subscribe to Firstsource with high risk appetite: Networth
Experts say apply for Firstsource IPO