Oil India IPO OIL IPO: Review Analysis & Details

So finally, the government has given the nod for the OIL India IPO. We have been tracking this issue since August 2008, when there were strong news that Sooner or later, it has arrived. The news is that it may open on September 7, 2009, so investors, keep your money ready by that time.
In this article, we will look at the review, analysis and fine details of the Oil India IPO and try to do the Review and analysis of Oil India IPO.
Some basic details first, as per DRHP filed by the company on December 14, 2007:
What is the issue size of the Oil India IPO?
The issue size is not known currently. But it is learnt that the public issue will be for selling around 26,449,982 (26 million) equity shares

What is the face value or nominal value of Oil india IPO?
The face value is the standard Rs 10 each.

How is the share distribution done?
Public sale portion is of up to 24,045,438 equity shares & there are some 2,404,544 equity shares reserved for employees.

The issue will be around 11% of the fully diluted post-issue capital of the company.

How will the capital raised by OIL India IPO be used?
The use of capital will be as follows:
1. exploration and appraisal activities;
2. development activities in producing fields
3. purchase of capital equipments and contracts for facilities
4. diversification of existing business in downstream activities

What is the price band of the Oil India IPO
The price band for shares of Oil India IPO is not yet decided.

What is the trading symbol & exchange for the Oil India IPO
No info is available about the trading symbol, but the listing will be on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE)

What are the IPO dates for Oil India IPO
The IPO for OIL India is expected to come out on September 7th, 2009.

Who are the underwriters of the Oil India IPO?
JM Financial Consultants, Morgan Stanley, Citigroup and HSBC Securities are the book running lead managers to the issue. Karvy is the registrar.

What are the analysts recommendations for this IPO?
The demand for Oil & Enrgy is going to increase leaps and bounds. With the scarcity of Alternative Energy sources being identified and implemented in countries like India, the Oil companies are expected to be benefitting if they can generate good business. Moreover, the government has recently given open freedom to companies to decide the prices. Hence, you can expect some better business prospects for OIL India

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Reliance Infrastructure Fund Debuts By The Initial Public Offering

Reliance Mutual Fund's Reliance Infrastructure Fund, whose initial public offering closed on 23 June 2009, has debuted at Rs 10.0704 per unit as against a face value of Rs 10 per unit on 20 July 2009. Reliance Mutual Fund has collected about Rs 2350 crore during NFO period of Reliance Infrastructure Fund launched on 25 May 2009.

Reliance Infrastructure Fund is an open-ended equity fund. The primary investment objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related instruments of companies engaged in infrastructure and infrastructure related sectors and which are incorporated or have their area of primary activity, in India and the secondary objective is to generate consistent returns by investing in debt and money market securities.

The scheme may invest up to 65%-100% in equities and equity related securities including derivatives engaged in infrastructure sectors and infrastructure related sectors.

At least 65% of investment would be made in equity/equity related securities of companies engaged in infrastructure sectors and infrastructure related sectors.

The scheme will have investment exposure up to 35% in debt and money market securities including investments in securitised debt. Investment in securitised debt should be up to 30%.

The fund manager for the scheme is Sunil Singhania. The performance of the scheme will be benchmarked against BSE 100.

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UTI Equity Fund Outperforms The One Year Time Periods

Background: UTI Mutual Fund is managed by UTI Assets Management Company Private Limited has come into existence with effect from 1st Feb.2003 who has been appointed by the UTI Trustee Company Pvt. Ltd. for managing the scheme of UTI Mutual and the scheme transferred from UTI Mutual Fund.

Three leading public sector banks-Bank of Baroda, Punjab National Bank and life Insurance Corporation of India are sponsors of the UTI Mutual Fund. The fund house manages assets worth Rs 67978.19 crore at the end of June 2009.

UTI Equity Fund (G) is an open-ended scheme launched in April 1992. The scheme aims at investing at least 80% of its funds in equity and equity related instrument with medium to high risk profile and up to 20% in debt and money market instruments with low to medium risk profile.

The minimum investment amount is Rs 5000 and in multiples of Rs 1000 thereafter. The unit NAV of the scheme was Rs 38.45 per unit as on 20 July 2009.

Portfolio: The total net assets of the scheme increased by Rs 0.83 crore to Rs 1455.62 crore in June 2009.

UTI Equity Fund (G) took fresh exposure to seven stocks in June 2009. The scheme has purchased 8.77 lakh units (1.18%) of NTPC, 10.00 lakh units (0.59%) Hindalco Industries, 1.87 lakh units (0.50%) of MphasiS and 2.50 lakh units (0.37%) of Sintex Industries among others.

The scheme exited completely from Divis Laboratories by selling 1.09 lakh units (0.86%), Dr Reddys Laboratories by selling 16693 units (0.07%), Bajaj Holdings & Investment by selling 20519 units (0.05%) and Gujarat Industries Power Company by selling 46873 units (0.03%) in June 2009.

Sector-wise, the scheme took fresh exposures Aluminium and Aluminium Products at 0.59%, Diversified-Large at 0.37% and Automobiles-LCVs/HCVs at 0.23% in June 2009. Sector-wise, the scheme did exit completely from Domestic Appliances at 0.01% in June 2009.

The scheme had highest exposure to Reliance Industries with 3.81 lakh units (5.30% of portfolio size) followed by Infosys Technologies with 3.36 lakh units (4.11%), Nestle India with 2.42 lakh units (3.34%) and Shree Renuka Sugars with 33.74 lakh units (3.27%) among others in June 2009.

It reduced its exposure from State Bank of India by selling 2.55 lakh units to 2.58 lakh units (by 3.50%), Balrampur Chini Mills by selling 20.74 lakh units to 2.75 lakh units (1.21%), Punjab National Bank by selling units 1.17 lakh units to 2.65 lakh units (0.53%) and India Cements by selling 2.80 lakh units to 11.94 lakh units (0.48%) among others in June 2009.

Sector-wise, the scheme had highest exposure to Banks-Private Sector at 9.63% (from 10.27% in May 2009), followed by Refineries at 8.31% (7.32%), Computers-Software-Large at 7.47% (3.06%) and Food-Processing-MNC at 5.50% (4.77%) among others in June 2009.

Sector wise, the scheme had reduced exposure from Banks-Public Sector to 4.33% (by 4.03%), Pharmaceuticals-Indian-Bulk Drugs to 1.30% (by 0.77%), Banks-Private Sector to 9.63% (by 0.64%) and Cement-South India to 1.42% (by 0.52%) among others in June 2009.

Performance: The performance of scheme is benchmarked against BSE 100. The scheme has outperformed the benchmark index over one month and one year time period while it underperformed the benchmark index over three months and six months time period.

The scheme has posted returns of 8.07% outperformed the BSE 100 that increased by 4.77% over 1 month period ended 20 July 2009.

However, over 3 month's period, the scheme advanced by 33.41% underperforming the BSE 100 that gained 40.45%. It rose 14.91% outperforming the benchmark index that was up by 12.37% over 1year period.

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LIC Mutual Fund Announced LIC Equity Underperformed Fund

Background: Life Insurance Corporation of India set up LIC Mutual Fund in June 1989. LIC Mutual Fund was constituted as a Trust in accordance with the provisions the Indian Trust Act, 1882. This trust has appointed Jeevan Bima Sahayog Assets Management Company Ltd. as the Investment Managers for LIC Mutual Fund in April 1994. The fund house manages assets worth Rs 32414.92 crore at the end of June 2009.

LIC Mutual Fund Equity Fund (G) is an open-ended equity diversified scheme launched in January 1993. The objective of the scheme is to obtain maximum possible capital growth consistent with reasonable level of safety and security by investing mainly in equity.

The minimum investment amount is Rs.2000 and in multiples of Rs.1000 thereafter. The unit NAV of the scheme was Rs 22.21 per unit as on 21 July 2009.

Portfolio: The total net assets of the scheme increased by Rs 1.88 crore to Rs 98.26 crore in June 2009.

LIC Mutual Fund Equity Fund (G) took fresh exposure to seventeen stocks in June 2009. The scheme has purchased 2.50 lakh units (3.84%) of Steel Authority of India, 59126 units (2.86%) Tata Communications, 10000 units (1.52%) of HDFC Bank and 30000 units (1.44%) of Siemens among others.

The scheme did not exit completely from any stock in June 2009.

Sector-wise, the scheme took fresh exposures in Steel-Large at 3.84%, Pharmaceuticals-Indian-Bulk Drugs & Formulation at 2.32%, Electronics-Components at 1.44% and Trading 0.94% among other in June 2009. Sector-wise, the scheme did not exit completely from any sector in June 2009.

The scheme had highest exposure to Larsen & Toubro with 41486 units (6.62% of portfolio size) followed by Housing Development Finance Corporation with 25000 units (5.97%), Bharat Heavy Electricals with 25000 units (5.61%) and Reliance Industries with 25000 units (5.15%) among others in June 2009.

It reduced its exposure from Reliance Petroleum by selling 3 units to 1.50 lakh units (by 0.32%), Reliance Infrastructure to 29301 units (0.31%), Religare Enterprises to 24999 units (0.24%) and Provogue (India) by selling 6 units to 1.02 lakh units (0.23%) among others in June 2009.

Sector-wise, the scheme had highest exposure to Power Generation and Supply at 13.73% (from 10.06% in May 2009), followed by Banks-Public Sector at 8.72% (5.78%), Banks-Private Sector at 8.35% (6.70%) and Refineries at 7.88% (6.73%) among others in June 2009.

Sector wise, the scheme had reduced exposure from Textiles-Products to 0.51% (by 0.23%), Finance & Investments to 1.64% (by 0.20%), Construction to 4.49% (by 0.14%) and Chlor Alkali/Soda Ash to 0.89% (by 0.06%) among others in June 2009.

Performance: The performance of scheme is benchmarked against BSE Sensex. The scheme has underperformed the benchmark index over most of the time periods.

The scheme has posted returns of 3.46% underperformed the BSE Sensex that grew 3.72% over 1 month period ended 21 July 2009.

Over 3 months period, the scheme advanced by 37.98% underperformed the BSE Sensex that gained 38.21%. It rose by 10.80% outperformed the benchmark index that was up by 8.75% over 1 year period.

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Birla Sun Life Mutual Fund Appoints A Balasubramanian As CEO

The Birla Sun Life Asset Management Company has appointed A. Balasubramanian as new Chief Executive Officer. Balasubramanian is currently the Chief Investment Officer at Birla Sun Life Mutual Fund and will continue to handle this portfolio.

He will report on key governance issues to the Board and on business and operating matters to Pankaj Razdan, Deputy Chief Executive – Financial services, Aditya Birla Group.

Balasubramanian has been with the Fund House since January 1995. Under his leadership as the CIO, over the years, Birla Sun Life Mutual Fund has gained recognition as a consistent performer, across asset classes.

Earlier this year the mutual fund created history by becoming the only fund house to have won, in 2 consecutive years, the coveted “Mutual Fund House of the Year” award from CNBC TV 18-CRISIL.

This recognition came on the heels of Birla Sun Life Mutual Fund being declared the Debt Fund House of the year at this forum.

And prestigious wins at the ICRA and Lipper awards, both of which are considered benchmarks within the industry.

Commenting on his new designation, Balasubramanian said, “Birla Sun Life Mutual Fund has gained strong momentum in recent years, with a strong foundation for future growth.

Backed by an enviable brand and our committed team, I am confident that we will now take our success to even newer highs.”

On the appointment Ajay Srinivasan, Chief Executive-Financial Services, Aditya Birla Group, said, “Birla Sun Life Mutual Fund is a top 5 player, recognized for its customer focus and consistent performance.

Balasubramanian's appointment is an endorsement of our strong talent base and the valuable role he has played over the last 14 years, in our mutual fund's success.”

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Reliance Mutual Fund Introduction By Infrastructure Fund

The initial public offering of Reliance Mutual Fund's Reliance Infrastructure Fund (RIF), which closed on 23 June 2009, has debuted at Rs 10.0704 per unit as against a face value of Rs 10 per unit on 20 July 2009. Dring new fund offer (NFO) period of RIF, which is an open-ended equity fund, Reliance Mutual Fund has collected about Rs 2350 crore.

The prime investment aim of the scheme is to create long-term capital appreciation by investing mainly in equity, equity related instruments of companies engaged in infrastructure and infrastructure related sectors.

These companies should be incorporated or have their area of primary activity in India and their secondary purpose is to generate steady returns by investing in debt and money market securities.

However, this scheme might invest up to 65%-100% in equities and equity related securities as well as derivatives engaged in infrastructure sectors and infrastructure related sectors.

This scheme is said to have investment coverage up to 35% in debt and money market securities together with investments in securitized debt, where investment should be up to 30%.

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Franklin Templeton Mutual Fund Offer India Flexi Cap Fund

Franklin Templeton Investments (India) Mutual Fund has announced dividend under the dividend option of Franklin India Flexi Cap Fund, an open-ended diversified equity fund. The dividend declared is Rs. 1.50 per unit on the face value of Rs. 10. All investors registered in the dividend plan as on 29 July 2009 will receive this tax-free dividend.

The record date for the dividend is 29 July 2009 and any purchases on or before this date will be eligible for the dividend Under the dividend reinvestment plan, the dividend declared will be reinvested in the Fund at the NAV of 31 July 2009 and unit holders will be allotted additional units for the dividend amount.

Franklin India Flexi Cap Fund was launched in March 2005 and currently manages above Rs. 2158 crore of assets for over 3.91 lakh investors.

Franklin India Flexi Cap Fund seeks to provide medium to long-term capital appreciation by investing in stocks across the entire market capitalization range.

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HDFC Mutual Fund Change Consignment Structure

HDFC Mutual Fund has decided to revise the entry and exit load structure wherever applicable for all schemes of the fund house with effect from 1 August 2009. Entry Load: Accordingly, no entry load will be charged for purchase/additional purchase/switch-in accepted by the fund.

Similarly, no entry load will be charged with respect to applications for registrations under Systematic Investment Plan/Systematic Transfer Plan/HDFC Flexi NDEX Plan accepted by the fund.

Exit Load: The scheme will charge an exit load up to 1% of the redemption value charged to the unitholder by the fund on redemption of units shall be retained by each of the schemes in a separate account and will be utilized for payment of commissions to the ARN holders and meet other marketing and selling expenses.

Any amount in excess of 1% of the redemption value charged to the unitholder as exit load shall be credited to the respective Scheme immediately.

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UTI Mutual Fund Announces Various Changes

UTI Mutual Fund has announced changes in features for institutional plan under UTI Floating Rate Fund Short Term Plan, with effect from 20 July 2009. Revised Features, Minimum Amount of Initial Investment: Minimum investment under the institutional plan is Rs 50 lakh and in multiples of Rs 1 thereafter or such amount as may be decided from time to time.

Options & Sub-option offered under Weekly Dividend Option of Institutional Plan: Weekly dividend option will have two sub options namely dividend payout and dividend reinvestment.

Under the dividend reinvestment sub option, dividend declared would be re-invested in the fund by way of allotment of additional units at the prevailing ex-dividend NAV per unit.

Existing Features: Minimum Amount of Initial Investment: Minimum investment under the institutional plan is Rs 1 crore and in multiples of Rs 1 thereafter or such amount as may be decided from time to time.

Options & Sub-option offered under Weekly Dividend Option of Institutional Plan: The dividend under the weekly dividend option would be compulsorily re-invested in the fund by way of allotment of additional units at the prevailing ex-dividend NAV per unit.

UTI Floating Rate Fund is an open-ended income scheme, which has the objective to generate regular income through investment in a portfolio comprising substantially of floating rate debt/money market instruments, fixed rate debt/money market instruments swapped for floating rate returns.

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