A week in the markets is a very long time and when there is a mid-week trading holiday the week looks even longer. The last week was no exception with Wednesday the 28th of November being a holiday. The markets turned buoyant and we had three great days of rallies on Tuesday, Thursday and Friday which saw the benchmark indices like the BSESENSEX and NIFTY gain 4.5% each. The SENSEX gained 833.33 points to close at 19,339.90 points while the NIFTY gained 253.25 points to close at 5,879.85 points. This week has been the best weekly gain in the year so far in terms of points gained, beating the one in the first week of June when the markets rose 754 points on the SENSEX. The corresponding number on the NIFTY was 227 points. In terms of percentage gain the week ended 8th June saw the SENSEX gain 4.72% while the NIFTY gained 4.69%. With these sharp gains the benchmark indices are trading at new highs for the year having gained 25.14% and 27.15% respectively. These levels were last seen in April 2011.
The calendar year 2012 has had its impact on the primary markets as well and so far there have been nine issues which have tapped the capital markets. Of these 6 have been listed, 2 issues were withdrawn and the last one Tara Jewels would be listing later this week. The buoyancy in the secondary market has certainly rubbed off on the primary market and it appears to be party time in the primary market as well. There will be three issues opening in the next five days and would be accompanied by a Tax free bond issue. If all goes well by the end of the year assuming all issues sail through the number of 6 listings would almost double to 10. These issues of course do not include the OFS (offer for sale) method of dilution allowed by SEBI and being used by companies.
The issues tapping the markets are as follows:
CARE (Credit Analysis and Research Limited) would be offering 71,99,700 shares by way of offer for sale by existing shareholders in a price band of Rs 700-750. The issue would garner Rs 504crs at the lower end and Rs 540 crs at the upper end of the price band. The issue opens on Friday the 7th of December and closes on Tuesday the 11th of December.
P C Jewellers is tapping the capital markets with its public issue for 4,51,33,500 equity shares. The issue would remain open between Monday the 10th of December and Wednesday the 12th of December. The company is yet to announce the price band but the same would be available by way of release of statutory advertisement in the financial newspapers on Monday the 3rd of December. It is expected that the companies price band would be in the region of Rs 120 or thereabouts with the price band being plus or minus of this price. The company would garner anywhere between Rs 500 and Rs 600 crs.
BhartiInfratel would be the mother of all issues and the company would be raising through a fresh issue and an offer for sale between Rs 3,901 crs at the lower end of the price band of Rs 210 and Rs 4,467 crs at the upper end of the price band of Rs 240. There would be a discount of Rs 10 available to retail investors. The issue would open on Tuesday the 11th of December and close for institutional investors on Thursday the 13th of December and for retail investors on Friday the 14th of December.
The tax free bond issue from REC opens on Monday the 3rd of December and closes on Monday the 10th of December. The issue size is upto Rs 4,500 crs and has a first come first served formula in case of oversubscription. The bonds are offered in two periods of maturity of 10 years and 15 years. There is a coupon rate of 7.22% for non-retail clients for 10 year duration and 7.38% for 15 year duration. The similar rates for retail client who can this year apply for upto Rs 10 lakhs would be 7.72% for 10 years and 7.88% for 15 years.
