Kalamandir Sai Silk IPO

Kalamandir is coming up with IPO. This is first from any saree retailer.

Issue Open: Feb 11, 2013 - Feb 13, 2013
Issue Type: 100% Book Built Issue IPO
Issue Size: Equity Shares of Rs. 10
Issue Size: Rs. 89.00 Crore
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 70 - Rs. 75 Per Equity Share
Market Lot: 200 Shares
Minimum Order Quantity: 200 Shares
Listing At: BSE, NSE

This is the first IPO with the 'safety net' scheme introduced by SEBI, the investor is safe. 
 Kalamandir's has goodwill and impresive credential.

Very good analysis by Dilip Davda

http://www.chittorgarh.com/ipo/ipo_review.asp?a=110

Futures OR Options

Futures:
ReCap from previous posts.
In the First Episode :
A Futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price.An Option is a contract, which gives the buyer the right, but not the obligation to buy or sell shares of the underlying security at a specific price on or before a specific date.
The primary Difference between options and futures is that options give the holder the right to buy or sell the underlying asset at expiration, while the holder of a futures contract is obligated to fulfill the terms of his/her contract.
Underlying: A stock (Say RPL) or Index (Say Nifty)
Certain Date: Settlement Date of the Month for which Position is taken. Generally we trade in Current Month and Settlement Date is last Thursday of the Month.
Interpretation ...
Say Today I buy RPL future For Rs 230 when current market Price for RPL in cash market is 225.
This means on Settlement date:(31 jan for this month) if RPL is @ Rs 230(future price) its no Profit no Loss for me, and if its 250(settlement price) I gain Rs 20 but I loose Rs 20 if its 210.

So same way, seller of the future contract gains the amount I loose or looses the Amount I gain.

Benefit: Unlimited Profits Posssible, Leverage I get....
Drawback: Unlimted Loss Possible

Now Lets Talk about Options:
An Option is a contract, which gives the buyer the right, but not the obligation to buy or sell shares of the underlying security at a specific price on or before a specific date.

Options can be call option or put option where you get the right to buy or sell specified quantity of the underlying security.

Buyer has to pay a premium to get the rights to buy or sell. Seller of options is also called writer who is obliged to perform according to option terms.

There are many factors which affects the price of an option.
1. Underlying value of the security.
2. Time remaining till the expiry. Options generally decay near the expiry because price of the underlying becomes more predictable and less probabilistic and volatile.
3. All the other information which affects the underlying security like interest rates, divident payouts, liquidity, historical prices, support zones etc.

Underlying : Lets say Nifty Index
You bought a Nifty call option for the strike price of 2800. On expiration the Nifty is at 2850. You will recieve 50*50 which is the lot size for Nifty = Rs 2500. If you have already paid a premium of Rs 20 then you profit remains 30*50 which is Rs 1500. Also you have to factor in the brokerage both for buy and sell. There is mini nifty available with lot size of 20. If the Nifty at expiry is below 2800 you dont get any thing and you loose premium + brokerage.

Other articles on derivatives.
Derivatives Basics

Y Derivatives?

V-mart Retail IPO Analysis

V-mart retail IPO is open for subscription. Link to the company website. www.vmart.co.in/

This article on money control gives a good analysis for V-mart IPO.

http://www.moneycontrol.com/news/ipo-issues-open/will-v-mart-retail-be-differentv2-(vishal)-retail_816663.html#toptag

Hindu business line has a little different take.

http://www.thehindubusinessline.com/features/investment-world/stock-insight/vmart-retail-ipo-invest-at-cutoff/article4372731.ece?homepage=true

Affordable housing in Bangalore - II

Many affordable housing projects are recently launched

1. Provident Sunworth

This is a 59 acres project off Mysore road, near NICE junction. Close to esteemed educational institutions, hospitals, industrial hubs, entertainment zones and tech parks. Sunworth, through NICE road, is well connected to Electronic City, Bannerghatta Road and Tumkur Road. Sunworth is located just 19 kms from City Railway Station. Sunworth offers optimally designed apartments: 2 BHK of 883 sqft and 3 BHK of 1082 sqft. It has multiple clubhouses, swimming pools, children’s play area and many more life style amenities.

2. SJR Primecorp Parkway Homes

Parkway Homes' 9.5 acre enclave (further extendable) is  G+15 floor towers with 1, 2, and 3 BHK apartments.

Location quoted as Off Sarjapur road is almost in close proximity to Electronic City just close to HSR and Mico Bosch where other projects like SJR trillium is launched.

Amenities>  Indoor Badminton Court, Basketball Half Court, Swimming Pool, Paddle Pool, Convenience Store, Children's Play Area, Cycles, Cycling Track, Squash Court, Tennis Court, Gym, Billiards, Library.

Features>
•  9.5 acres (further extendable) of serene tranquility
•  Horizontal distance between blocks as much as building height

3. Brigade Value Housing
Properties are going to launched in 4 locations

 4 locations—in the North, East, West and South of Bangalore:
North : Devanahalli
East : KR Puram (Whitefield belt)
West : Mysore Road, near Kengeri
South : Kanakapura Road, near Art of Living

These will be launched in 6-12 months

4. Bhartiya City
They have lauched Nikoo homes near Hebbal on Thanisandra main road . First phase is sold our and second phase is launched
This is a 125 acres  township.
The integrated township will host a high end hotel, hospital, school, entertainment & shopping facilities apart from offices.