SolarEdge IPO SolarEdge deals in the solar electronics industry. It is a solar microinverter company, that optimizes the power from solar panels. The company designs inverters that maximize power generation at the individual PV module level, while lowering the cost of energy. The company has presence in residential, commercial and utility markets. SolarEdge occupies an [...]
Tax Free Bonds The primary equity market in India is pretty much dead, despite the stock market indices touching new all time highs. The reason is that the Sensex and Nifty are being driven by a few sectors which are seeing sky high valuation, while the rest of the economy continues to remain in the [...]
Note blatant pump and dump IPO’s have made the Indian market a heaven for stock market operators.Despite this going on for years,only recently SEBI has taken some steps against the manipulartion of the primary market.Now SEBI has taken some steps in the Insider Trading case as well by fining executives of JP Associates and Ranbaxy both of which are constituents of the Indian main stock market index. However a mere fine will not do to deter insider traders.A big jail term for a insider trader will make white collar criminals think more in indulging in criminal activity rather than small fines .
SEBI has been strangely and inexplicably absent from its role of supervising the primary market in India despite a stream of pump and dump IPO by small disreputable promoters and investment bankers.Most of these IPOs have no fundamentals to justify lofty valuations and without the role of market operators and investment bankers have no hope in hell of getting subscribed.Its a scary gambling scheme in which retail investors put money only with the hope of getting out on the first day with probably listing gains.There is no way that an investor can make money in these issues in the long term.However the shenanigans of the promoters and bankers have gone unpunished leading to more and more of these junk IPOs getting into the stock market everyday.This only brings a bad name to Indian stock markets where manipulation can happen so brazenly and openly and pushes away genuine investors away from equities.SEBI has been recently been trying to get more retail investors into the stock market however it seems mere words as it does not take action on open corruption.
Future Ventures is a VC/Private Equity Company that has invested in a number of small Indian companies and startups mainly focused on the consumption industry in India.With India growing at around 8-9% in the last few years and expectations of strong future growth driven by consumption,Future Ventures seems a good investment considering the portfolio of companies that it owns (analyzed below).Future Ventures is a part of the Future Group run by Kishore Biyani who started India’s most famous retail company Pantaloons.The Company has set a price band of 10-11 rupees a share with a target of raising around Rs. 750crore though the IPO.This would represent around 40% of the equity which would give it a post IPO market capitalization of around $375 million.Note the company had tried to come with an IPO 2 years ago but it was deemed to expensive at that time.
PTC India Financial Services has substantial advantages of growth,a good business model in India’s booming Energy Sector.However the valuation of the company has been kept too high for essentially what is a financial intermediary.The growth of the company has been compensated by the high valuation making it not such a good buy especially in the context of the current stock market and economic conditions.It might be better to look at cheaper alternatives in the Indian Infra Sector.