Mumbai-based fragrance and flavour maker SH Kelkar & Company is aiming at raising Rs 510 crore through an initial public offering (IPO).

Mumbai-based fragrance and flavour maker SH Kelkar & Company is aiming at raising Rs 510 crore through an initial public offering (IPO). The company has fixed a price band of Rs 173-180 per share. The three-day public issue will open on October 28, the company announced on Tuesday.

The IPO consists of a fresh issue of Rs 210 crore, and an offer for sale (OFS) worth R298 crore (at the upper price band) by existing shareholders, including Blackstone Capital Partners and SH Kelkar’s non-executive director Prabha Ramesh Vaze. In 2010, Blackstone had bought a 33% stake in the company for Rs 243 crore.

SH Kelkar & Company plans to use the proceeds from the issue for repayment of existing corporate debt, to infuse fresh funds into subsidiary company KV Arochem, and for general corporate purposes.

Keynote Corporate Services, Kotak Investment Banking and JM Financial are the financial advisors to the issue.

This will be the 17th IPO during the calendar year 2015. So far, 16 companies have tapped the primary markets to raise a little more than Rs 7,500 crore, Prime Database showed.

The primary markets have witnessed a sharp uptick in the last six months. During the last week, Cafe Coffee Day enterprises successfully raised Rs 1,150 crore through an IPO. InterGlobe Aviation, the company operating India’s largest and most profitable airline company, Indigo Airlines, has already announced its plans to raise up to Rs 3,269 crore through the primary markets.

Numerous companies, including e-commerce player Infibeam, have already received approvals from the

Securities and Exchanges Board of India to tap the primary markets and are expected to hit the markets by the end of this calendar year.

The BSE IT index jumped 4.19 per cent to 11,125.58 on October 19 from 10,678 on July 17.

Information technology shares outperformed benchmark indices in the past three months. The BSE IT index jumped 4.19 per cent to 11,125.58 on October 19 from 10,678 on July 17. The BSE Sensex slid 3.86 per cent during the same period.

During July 17 and October 19, share price of Vakrangee slid the most — 17.10 per cent, followed by HCL Technologies (10.32 per cent) and Tata Consultancy Services (2.83 per cent). On the other hand, share price price of Mindtree and Infosys surged 14.28 per cent and 11 per cent, respectively. As of now, IT majors like Infosys, HCL Technologies, Tata Consultancy Services and Mindtree have announced their earnings for the quarter ended September 30, 2015.

Various brokerage houses are bullish on Infosys, HCL Tech, TCS and Mindtree. We take a look at why these analysts are betting upon the shares of these 4 IT majors.

HCL Technologies: For the quarter ended September 2015, the IT major posted consolidated net profit of Rs 1,823 crore, down 2.67 per cent, against Rs 1,873 crore in the corresponding quarter a year ago.

Sharekhan in a research note said, “On account of weak Q1 and currency reset to Rs 65-64, we have revised our earnings estimates marginally for 2015-16 and 2016-17.”

In the past one month the share price of HCL Technologies has corrected around 10 per cent. Sharekhan said, “At the current level of 13.7x its FY2017E, the stock looks attractive (lowest among top-five IT companies). We expect revenues and margins to recover in the coming quarters, with the execution of large integrated deals in the IMS space. We maintain our ‘Buy’ rating on the stock with a revised price target of Rs 980.”

Infosys: Infosys, India’s second-biggest software exporter, on October 12 reported a 9.8 per cent rise in September quarter consolidated net profit, but gave a lower dollar revenue guidance for the current fiscal.

According to Prabhudas Lilladher, Infosys’ Q2FY16 performance was comprehensively ahead of expectation with solid revenue and margin beat. Growth has been strong across verticals and geographies. Infosys’ initiatives in automation/innovation etc. are showing signs of early success. Healthy deal win (US$ 980mn), new client additions and improvement in client matrix indicate improvement in overall performance. However, despite a solid Q2, company has maintained its FY16 CC guidance (10‐12% YoY) and lowered USD guidance (6.4‐8.4%). Company has attributed lower number of working days and furloughs for the cautious 2HFY16 outlook. Based on the underlying business momentum and past impact of seasonality, the brokerage house believes that Infosys has been conservative in guidance and expect company to beat 2015-16 revenue guidance. Prabhudas Lilladher expects the share price of the company can touch Rs 1440 in the next few quarters.

Tata Consultancy Services: TCS on October 13 met market expectations with an over 16 per cent rise in net profit at Rs 6,084.66 crore for the quarter to September, backed by strong performance of its digital platform and recovery in Latin America and the home market. Tata Consultancy Services’ (TCS) order book grew 30 per cent in the quarter, the highest ever for the company, giving the indication that things are looking good, managing director and chief executive N Chandrasekaran told reporters.

Angel Broking in a research note said, “For 2QFY2016, TCS’ results have come in slightly below our expectations on the sales and net profit fronts, while EBIT margins have come in in line with our expectations. We maintain our ‘Buy’ rating on the stock with a target price of Rs 3,165.”

Mindtree: IT firm Mindtree posted 15.1 per cent rise in net profit at Rs 158.2 crore for the second quarter ended September 30, 2015-16. The mid-sized firm had posted net profit of Rs 137.4 crore in the July-September quarter of the 2014-15 fiscal. Its revenue increased 31.6 per cent to Rs 1,169.3 crore for the second quarter, from Rs 888.6 crore in the year-ago period.

Prabhudas Lillaher in a research report said, “Mindtree is ahead of the peer group in investing in digital business and this we believe will sustain higher revenue growth. The share price of the company can touch Rs 1,540 going forward.”

(Disclaimer: The stocks are recommended by the respective brokerage houses and not a recommendation from Financial Express online)

Shares of SKS Microfinance on Tuesday surged nearly 6 per cent after the company posted 37.2 per cent increase in net profit for the second quarter of the current financial year.
(PTI)

Shares of SKS Microfinance on Tuesday surged nearly 6 per cent after the company posted 37.2 per cent increase in net profit for the second quarter of the current financial year.

The stock jumped 5.2 per cent to Rs 472.30 at BSE. At NSE, it climbed 5.65 per cent to Rs 474.

SKS Microfinance on Monday posted a 37.2 per cent increase in net profit at Rs 77.86 crore for the second quarter ended September 30, 2015-16. Its net profit stood at Rs 56.75 crore in the same period of the previous financial year.

“Total income has increased to Rs 324.29 crore for the quarter ended September 30, 2015 from Rs 201.02 crore for the quarter ended September 30, 2014,” SKS had said in a filing to BSE.

In the broader market the BSE index, Sensex, was trading with a gain of 31.78 points at 27,395.81.

Nestle share price climbed over 2 per cent on BSE in the early trade on Tuesday after Karnataka and Gujarat lifted ban on manufacturing and sale of Nestle India’s popular instant food brand Maggi noodles.

Nestle share price climbed over 2 per cent on BSE in the early trade on Tuesday after Karnataka and Gujarat lifted ban on manufacturing and sale of Nestle India’s popular instant food brand Maggi noodles. According to an Indian Express report, the company is planning to relaunch Maggi noodles on this Diwali.

At 9.32 am, Nestle India shares were up 1.76 per cent at Rs 6,590. The scrip opened at Rs 6595 and had touched a high and low of Rs 6648 and Rs 6560, respecively in trade.

In a recent filing with stock exchanges, the company has reported that the test results from all three laboratories mandated by the Bombay High Court to test Maggi noodles samples are clear, with lead much below the permissible limits. The company further mentioned that it has conducted 3,500 tests representing 200mn packs in both national and international laboratories, and all their tests have been cleared.

Nomura is looking bullish on the further movement of Nestle India shares. The Japanese brokerage firm in a research report said, “This is a positive development towards the re-launch of the noodles, as Maggi can now commence manufacturing and selling its products after the newly manufactured products are cleared by the designated three laboratories. We maintain a ‘buy’ rating on the stock and believe that Maggi noodles should be seen on the shelves soon. The share price of Nestle India can touch Rs 6,950 in the next few quarters.”

The size of Maggi brand is around Rs 25,00 crore in sales, and contributes to around 25 per cent of the company’s total portfolio in terms of revenues.

In August 2015, the court had asked that Maggi noodles be newly tested in three independent labs in Hyderabad, Mohali and Jaipur. If the lead content would be within permissible limits, then Nestle would be free to manufacture and sell the noodles.

For the quarter ended June 2015, the company posted net loss of Rs 64.40, down 122.37 per cent, against net profit of Rs 287.86 crore in the corresponding quarter a year ago.

In the past one year, Nestle India share price jumped 12.27 per cent to Rs 6476.15 on October 19. The share price of the company was at Rs 5,768.15 on October 20 last year. Sensex jumped 3.54 per cent during the same period.

Nestle India stocks will also be in focus after Karnataka and Gujarat lifted ban on manufacturing and sale of Nestle India’s popular instant food brand ‘Maggi noodles. (Reuters)

The BSE Sensex and NSE Nifty opened flat on Tuesday tracking mixed Asian markets. At 9.24 am, Sensex was down 8.89 points at 27,356.03. Nifty was down 3.90 points at 8,271.15.

BPCL will also be in focus on Tuesday after Barclays cuts the oil marketing company’s stocks to “underweight’ from “overweight” citing re-rating may have gone too far.

Nestle India stocks will also be in focus after Karnataka and Gujarat lifted ban on manufacturing and sale of Nestle India’s popular instant food brand Maggi noodles.

Mahindra & Mahindra agri business division has forayed into branded pulses space with NuPro brand.

Hindustan Zinc Ltd (HZL) on Monday reported a 5 per cent growth in its net profit at Rs 2,285.26 crore for the quarter ended September 30, 2015 helped by volume growth and cost optimisation.

Lupin Ltd will be in focus as the government on Monday cleared 14 foreign investment proposals, including that of the drug major.

Hero MotoCorp will announce its second quarter results today.

Barclays upgrades Indian Oil Corp to “overweight” from “equal weight” and Gail (India) to “equal weight” from “underweight” citing stock underperformance vs rivals

ACC, Bajaj Finserv, Bajaj Finance, Biocon, Can Fin Homes, DHFL and Everest Industries are some of the companies which may announce their September quarter earnings on Tuesday.