NBCC Grey Market Premiums

Company Name	Offer Price (Rs.)	Premium (Rs.)	Kostak (Rs. 1 Lac Application)	Kostak (Rs. 2 Lac Application)	Kostak (Rs. 5 Lac Application)
REC	1000	1 to 1.50 (Seller)	--	--	--
Olympic Cards Ltd.	30 (Flore Price)	0.50 to 1 (Seller)	--	--	--
NBCC	90 to 106	15 to 16 (Buyer)	--	--	--

Muthoot Finance welcomes measures taken by RBI

Reserve Bank of India has issued Circular No.RBI/2011-12/467 DNBS.CC.PD.No.265/03.10.01/2011-12 dated March 21, 2012 to all NBFCs titled “Lending Against Security Of Single Product - Gold Jewellery”.
This circular is applicable to Muthoot Finance Ltd. On account of this, Company wish to make the following clarifications:
It is stipulated that NBFCs primarily engaged in lending against gold jewellery (such loans comprising 50 percent or more of their financial assets) shall maintain a minimum Tier l capital of 12 percent by April 01, 2014. Muthoot Finance Ltd as on December 31, 2011 had a Tier 1 capital of 13.37%. Moreover, the amended regulation provides time till April 01, 2014 to achieve the level of 12%.

Market may open lower

The market may open lower as most Asian stocks edged lower triggered after data showed weaker-than-expected ‘flash' China manufacturing purchasing managers index (PMI). Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 22.50 points at the opening bell.

Non banking financial companies (NBFCs) offering loan against gold will be in focus as the Reserve Bank of India (RBI) directed all NBFCs not to sanction loan beyond 60% of the value of gold jewellery. The RBI further said that the NBFCs whose financial assets consist of loans against gold jewellery to the tune of 50% or more, will have to maintain 12% tier-I capital by April 1, 2014. RBI said NBFCs should not grant any advance against bullion / primary gold and gold coins and they have to disclose the percentage of gold loans to their total assets in balance sheet. Incidentally the directive follows government proposing a hike in import duty on the precious metal and imposition of excise duty on unbranded-jewellery. Finance Minister Pranab Mukherjee in the Budget proposed raising custom duty on gold from 2% to 4%.

NBCC IPO Analysis

National Building Construction Corporation, a public sector undertaking under the Ministry of Urban Development (MoUD), Government of India, is engaged in the business of (i) project management consultancy (PMC) services for civil construction projects, (ii) civil infrastructure for power sector, and (iii) real estate development.

PMC for civil construction projects is the major business of the company, accounting about 90.8% and 97.4% of the total revenue in H1 of FY 2012 and FY 2011. On the other hand, the share of civil infrastructure for the power sector stood at 3.3% and 2.1%, respectively. The share of realty was at 6% and 0.5% in H1 of FY 2012 and FY 2011.

Gold loan finance companies tumble

Key benchmark indices edged lower in early trade as most Asian stocks declined triggered after data showed weaker-than-expected ‘flash' China manufacturing purchasing managers index (PMI). The market breadth was positive. Index heavyweight Reliance Industries (RIL) edged lower. The barometer index, BSE Sensex, was down 32.54 points or 0.19%. Non banking financial companies (NBFCs) offering loan against gold slumped as the Reserve Bank of India (RBI) directed all NBFCs not to sanction loan beyond 60% of the value of gold jewellery.

At 09:30 IST, the BSE Sensex was down 32.54 points or 0.19% to 17,568.17. The index fell 4.77 points at the day's high of 17,596.94 in early trade. The index declined 51.93 points at the day's low of 17,549.78 in early trade.