Power Finance कारपोरेशन

Power Finance Corporation to pick 7% stake in PXI State-run Power Finance Corporation has informed that the Board of Directors of the Company at its meeting has given approval to participate in the equity of Power Exchange India Ltd (PXI) up to 7% share capital of PXI not exceeding Rs 1.75 crore. PXI is a company promoted by NSE and National Commodity and Derivatives Exchange (NCDEX), for setting up power exchange to provide electronic, transparent and neutral platform for trading of electricity.

IFC Commits $30M To India Buyout Fund

IFC Commits $30M To India Buyout Fund The International Finance Corp. has committed as much as $30 million to a private equity fund investing in high-growth small- and medium-sized enterprises in India. Avigo SME Fund III, a $300 million, eight-year closed-end fund, is a follow-on offering to Avigo SME Fund II, a $125 million fund managed by Avigo Capital Partners, a private equity group formed in 2004 by Achal Ghai.

YES Bank to add buyout fund to PE portfolio

YES Bank Ltd, a recent entrant into the private equity space in India, is planning to expand its portfolio by launching a buyout fund in the near future. Though the value of the fund has not been decided as yet, the bank plans to launch it in three years’ time. The bank has already announced four sector specific funds in the first phase, in the form of a $300-million cleantech fund, a $500-million infrastructure fund, a Rs 200-crore food and agriculture fund and a $250-million lifesciences fund. Other funds such as a buyout fund, a VC fund and a real estate fund will be launched post-2010.

Too Late to End the Debt Crisis

Too Little, Too Late to End the Debt Crisis. Congress should 1. Disregard data based on the list of troubled banks maintained by the Federal Deposit Insurance Corporation (FDIC). The FDIC’s list currently has 117 institutions with $78 billion in assets. However, based on a broader analysis of recent FDIC call report data, we find that institutions at risk of failure include 1,479 FDIC member banks and 158 thrifts with total assets of $3.2 trillion, or 41 times the assets of banks on the FDIC’s list. 2. Think twice before providing a broad bailout for U.S. debts given the wide diversity of mortgage holders and the great magnitude of the total debts outstanding in the United States. Just-released Federal Reserve Flow of Funds data show that, beyond mortgages, there are another $20.4 trillion in privatesector consumer and corporate debts, plus $2.7 trillion in municipal securities outstanding. 3. Recognize that, among banks and thrifts with $5 billion or more in assets, there are 61 banks and 25 thrifts that are heavily exposed to nonperforming mortgages. 4. Get a better handle on the enormous build-up of derivatives held by U.S. commercial banks. 5. Base any legislation on (a) realistic estimates of the loan amounts already delinquent or in default, and (b) reasonable forecasts of how many more are likely to go bad in a continuing recession. 6. Recognize the inadequacies in already-established safety nets, such as the FDIC for bank depositors, Securities Investor Protection Corporation (SIPC) for brokerage customers, and state guarantee associations for insurance policyholders. There should be no illusion that the $700 billion estimate proposed by the Administration will be enough to end the debt crisis. It could very well be just a drop in the bucket. source:Weiss Research, Inc.

Maestros Mediline Board approves Buy-back of Shares

Announcement: Maestros Mediline Systems Ltd has informed BSE that the Board of Directors of the Company at its meeting held on September 20, 2008, inter alia, has approved the offer of Buy Back of Shares to the extent of 10% of Paid-up Equity Capital and free reserves of the Company. The Buy Back shall be carried out from the open market through the Bombay Stock Exchange at a maximum price of 75/- per share.

ख़बर हे कि ........

* Hindustan Sanitaryware is trading at a multiyear low level. Long-term investors should grab this opportunity to buy and hold for two years for handsome returns. * The share price of transformer companies like Accurate Transformer, Bharat Bijlee, Emco, Diamond Power, IMP Power, Alfa Transformer are hitting new lows. Grab them as they will rebound on the back of massive investments in the power sector. * Gujarat Alkalies has tumbled down to attractive levels. At the current market cap of Rs.900 cr., it is available cheap with a minimal downward risk. * Century Textiles is good for the medium-term given its composite business and massive real estate plans in heart of Mumbai. * Ranbaxy is witnessing a sell off because US FDA has banned some Ranbaxy drugs. The stock is valued high by the promoters and is available below half the acquisition price. A buy for the medium-term. * Oracle Financial Services & Software (formerly I-flex) is one of the very few subsidiaries of Oracle, which is listed. The stock can be considered for investment with a two year perspective. * Elgi Equipments is considered a decent buy with good growth prospects in the core capital goods industry. * Visaka Industries has posted Q1FY09 EPS of Rs.9 and an EPS of Rs.28 for FY09 is expected. The share is poised to touch Rs.100. * Supreme Infrastructure is doing well with Q1FY09 EPS of Rs.7. Company circles expect an EPS of Rs.30 in FY09 and the share can easily touch Rs.100. * With 7% equity stake by Patel Engineering, KNR Constructions is all set to garner an EPS of Rs.18 in FY09 and Rs.26 in FY10. Some analysts recommend the share with a target price of Rs.120 in the long-term. * Mazda Industries is likely to post an EPS of Rs.22 on a small equity of Rs.4.3 cr. The share is heading towards the 3-digit mark. * Hariyana Ship Breaking, which registered Q1EPS of Rs.8, is all set to register an EPS of Rs.18 in FY09. The share may cross the Rs.60 mark.

IFC to acquire 12% in Polycab for Rs 552 cr

In one of its largest equity deals in the country, International Finance Corporation (IFC), the private sector investment arm of the World Bank, is picking around 12% stake in Polycab Wires for Rs 551.5 crore ($120 million). The deal values the flagship cable manufacturing business of Mumbai-based Jaisinghani family at Rs 4,600 crore ($1 billion). The deal involves a mix of fresh shares and warrants. According to sources, IFC is picking a 10% stake for around Rs 450 crore besides picking warrants which would give it an additional 2% equity stake for around Rs 100 crore. These warrants will be fully paid and will be convertible based on achievement of certain financial milestones. Polycab is one of the largest domestic players in the market for cables. It is the flagship company of the Polycab group, which has eight cable manufacturing companies and is the leading manufacturer of power cables and light duty cables in India.

सांवरिया एग्रो

Sanwaria Agro to raise Rs 200 cr in 2 yrs for expansion Looking at expansion, Sanwaria Agro Oils Ltd is all set to explore avenues to raise funds. “We plan to raise Rs 2 billion in the next 2 years for our expansion / diversification projects. However, due to market volatility, we are a bit cautious in fund raising,” said Anil Agrawal, whole-time director, Sanwaria Agro Oils. “We will be setting up factories at our existing locations in Madhya Pradesh. We will also focus on our captive power plants with the pace of capacity expansion,” Agrawal added. The company plans to raise funds through a combination of QIB, ECBs, GDR or private placement. In the first phase, it will raise Rs 50 crore. The expansion will increase its current capacity of 2,650 mtn of soy seeds crushing to 4,000 mtn.

WL Ross pitches merger with SpiceJet to rival airlines

New York-based private equity fund WL Ross and Co. Llc., which in August agreed to invest $80 million (about Rs370 crore at the current exchange rate) in low-fare airline SpiceJet Ltd, has, on its own, started talks with Jet Airways India Ltd and Kingfisher Airlines Ltd for a possible merger with the Delhi-based carrier. Ross, part of investment management firm Invesco Ltd, has also started discussions with other low-fare carriers for a possible merger in an attempt to create a larger airline, said a person familiar with the development. “The idea is to increase the valuation of SpiceJet or the money invested by WL Ross before the firm exits,” this person added, asking not to be named. WL Ross has also suggested strict cost controls and tighter management to turn around SpiceJet, he added.

डिविडेंड दावा....

NEW DELHI: The new company law proposes to remove the time limit for claiming dividend. The Companies Bill 2008 –– recently cleared by the Cabinet and to be placed before Parliament soon –– has removed the seven-year ceiling up to which unclaimed dividend remains safe in the government’s kitty. This means investors can claim their dividend even 10 years after declaration of dividend once the new Bill gets the approval of Parliament. Unclaimed dividend of investors is transferred to the Investor Education and Protection Fund (IEPF). The fund, which is maintained by the ministry of corporate affairs, allows claims only for seven years from the date of declaration of dividend. Officials in the ministry of corporate affairs say that the new law proposes to remove the time limit. This would mean that the rights of the investors to claim their unpaid dividend amounts credited to IEPF do not pass away. “The existing provisions on investor education and protection have been recast to ensure that the claim of an investor over a dividend not claimed for more than seven years is not extinguished,” an official in the ministry said. The idea, aimed at a safeguarding the interests of minority shareholders, would require the government to make statutory changes in the administration of IEPF. The new company law puts premium on the protection of investors rights. The ministry of corporate affairs is also known to have opposed the finance ministry’s stand that investor protection being the primary responsibility of market regulator Sebi, the investor protection fund should reside with the latter. Rejecting the finance ministry stand, the corporate affairs ministry had contended that investor protection was related to the corporate governance initiatives of the government and was necessary for safeguarding the interests of investors.

South Africa's Sanlam to invest $50 mln in SMC

Indian brokerage SMC said on Monday Sanlam Ltd, a South African financial services group, will invest $50 million and form joint ventures to offer wealth and asset management services. The investment will be in two firms of the Indian group - SMC Global Securities Ltd and SAM Global Securities Ltd., the Indian firm said. The money will be used to pick up 5 percent stake each in the companies and subscription to warrants, SMC added.(Reuters)

खबरे काम की .....

* Reliance industries stock dipping below Rs.2000 and expected to even touch Rs.1880 in a hit-and-run fear driven market may be the ultimate turning point of the market sentiment.

* Suzlon’s buying 22.5% in RE Power Systems makes it a strong global player in wind power generation industry.

Bilpower has bagged an EPC contract for transmission & distribution in Ghana worth Rs.125 cr. for rural electrification in Brong Ahafo and Ashanti regions of Ghana. Keep a close track of this scrip

* EPIC Energy has successfully commissioned a 140 kVA energy saving project for BEST, Mumbai, which will lead to a minimum saving of 25% of energy costs of the transport terminal. Scrip may see some action in the near future.

* SAAG RR is sitting on a huge order book position to be executed in coming years. At the current market cap of merely Rs.60 cr., it is worth a punt.

* ANG Auto has initiated a buy-back of shares through market purchases. The rising dollar would also contribute to the bottom line of the company. A value buy.

* With the nuclear deal getting sealed companies in capital goods like BHEL, L&T could benefit.

* Rolta could be one of the beneficiaries of the nuclear deal since it has software catering to nuclear applications.

Providence, ICICI arm in joint bid for Firstsource

The country’s largest private equity fund, ICICI Venture, is teaming up with US-based PE fund Providence to put in a joint bid for BPO firm Firstsource Solutions. ICICI Venture is also wooing Kohlberg Kravis Roberts & Co (KKR), one of the world’s biggest buyout funds, to join the consortium, said a banker. If the funds eventually join hands to bid for Firstsource, it would be the first time in India that three large PE players come together for an acquisition. Both Firstsource and I-Venture are promoted by the ICICI group. It’s perceived that any deal could be partly driven by ICICI Bank, the biggest shareholders in Firstsource. The bank is under pressure to shore up its earnings, and a deal in the next few months would result in higher profits for the December quarter. Sources said while KKR has shown some interest, it’s yet confirm its participation in the proposed joint bid. The I-Venture spokesperson declined to comment. Source: Economic Times

Buzz on the street

Reliance Power may be allowed to use surplus coal from mines allotted to Sasan UMPP for its other power projects

GSPC hopes to get nod for commerciality of KG-8 discovery soon.

The Government may raise Rs7bn from stake sale in two fertiliser PSUs - Hindustan Fertiliser Corp and Fertiliser Corporation of India.

Listed Indian companies

MUMBAI: Listed Indian companies with a relatively low public float may soon have to work on plans to increase their public shareholding by at least 3-5% annually to ensure that they fulfil the minimum threshold level of 25%. Early this year, the government had put out a draft proposal, asking all listed companies to ensure a minimum public holding of 25% while listing and subsequently, on a continuous basis. The norms relating to public holding are specified under the Securities Contract (Regulation) Act, which is administered by the finance ministry. The government move is aimed at boosting liquidity in the markets, better price discovery and to discourage possible efforts at manipulating stock prices. After obtaining feedback from the industry and other agencies, the government is now set to firm up the new norms. As per the proposal under consideration, listed firms which do not have a public shareholding of 25% will have to ensure this by increasing their public shareholding annually by anywhere between 3 and 5%, according to a person close to the development. Public shareholding is now taken as inclusive of the shares held not just by individuals but by financial institutions, foreign portfolio investors, mutual funds and non-resident Indians, employees and others. The government will take a call soon on whether this categorisation should be changed or tightened. Listing rules now state that at least 25% of the equity shares on offer should be offered to the public. Within the 25% public category, a dominant share is allocated to institutional investors with individuals accounting for a relatively small percentage. There are over 230 listed companies in which the non-promoter holding is well below 25%. By having a higher public holding or control of shares with investors other than promoters, it has been argued that ramping up stock prices would be difficult. According to the government, going by the data provided by the National Stock Exchange, the average public holding in listed companies in India is only 13%. Holding of Indian promoters, in contrast, is on an average as high as 48%, the data show. Efforts in the past including one mounted by the stock market watchdog Sebi to force companies to comply with these rules failed to yield results, given the stiff resistance put up mainly by promoter-led firms. Among those companies which could be impacted by the proposal are information technology major Wipro, in which the non-promoter holding is 18.99% — the promoter controls 79.42% — and Videocon Industries where the non-promoter holding is a tad above 18 %. Several state-owned companies may also be hit. The list includes NMDC in which the government has a stake of over 99% and the public holding is just 0.13% and MMTC with a meagre public holding of 0.02%. Index heavyweight ONGC has an individual shareholding base of just 1.82 %, SAIL 2.08%, BHEL 2.23% and NTPC 2.57%. These state-owned companies were able to list earlier with just a minor dilution, thanks to a special dispensation by the government. All those companies with a low public float will have to approach the capital markets with follow-on offers to comply with the rules once they are finalised and notified. The Left parties had earlier criticised the proposal, saying this was privatisation through the backdoor. The government seems to be settling for an incremental approach of raising the shareholding annually by a certain percentage as it will not rock the market. Besides, this approach does not discriminate between a private corporate and a state-owned company. The finance ministry’s draft proposal had earlier said the threshold public holding should be calculated without taking into account the stakes of non-promoters such as foreign portfolio investors, institutional investors and mutual funds. A key factor in the changes to the rules on listing now under way would be the definition of public holding or that of a promoter. A view will also have to be taken on how to categorise the holdings of those holding shares under an employee stock option plan or sweat equity and also high net worth individuals. There is also a debate on as to whether the threshold public holding of 25% proposed now should be reduced to 20%. To conform to the new norms being finalised, the holdings of promoter groups would have to be diluted through public offerings. The lobbying arms of Indian industry had said the move could lead to a flurry of equity issuance by many companies and in turn, dampen sentiment in the secondary market. Along with the change in rules by the government, Sebi will have to amend its regulations to ensure that companies comply with this norm and also specify the punishment for non-compliance. In 2005, the capital markets regulator had directed Indian corporates with low public holdings to improve the free float or the percentage of shares which are available for trading. Sebi told all listed companies to maintain at least 25% shareholding with the public. However, Sebi’s efforts did not succeed. The regulator has the powers to ease the listing norms for companies. The finance ministry has, however, indicated that it proposed to withdraw these powers. In an interview with this newspaper a few months ago, SEBI chairman CB Bhave had said that the difficulty was that a lot of companies had been allowed to come into the market with even 10% public holding. “If you say that these companies can automatically delist, then you must worry about the rights of investors who are being denied a market. When the issue was being made, the company promised people that with this 10% there will be a listing in the exchanges. It means that the shareholder has come in with the knowledge and a promise from the company that the shares will be listed. Now, if you say that this company can be automatically delisted because it has only 10% issued capital, then you have a difficulty.” Mr Bhave also highlighted then another dimension to the issue: some state-owned companies have less than 25% holding in the hands of the public. “If you delist them, then one is being unfair to the non-government shareholders who don’t have a market at all,” he had said.

Firstsource स्टाक सेल

Metavante Hires Goldman Sachs To Sell Its Firstsource Stake

Metavante Corporation is looking to sell its 20% stake in Mumbai-based Firstsource Solutions and has appointed Goldman Sachs to look for a buyer. The first-round bids are expected this month, reports Financial Times. This news comes as the markets have been buzzing with speculations about ICICI Bank planning to sell its 27% stake in Firstsource. Also the other major shareholder in the BPO, Singapore's Temasek may also look to sell its 21% stake. Interestingly, Warburg Pincus has a 25% stake in Metavante and may look to buy latters stake in Firstsource. Warburg Pincus controls WNS Holdings, which is the second largest BPO in India.

गरमा-गर्म

Bharat Forge leads gainers in 'A' group ONGC orders fuel Dolphin Offshore Austral Coke tops volumes on BSE ICSA India strengthens on new order win Bilpower shines on overseas order Tata Motors speeds up as Singur row resolved Valiant Communications rings on buyback plan Large order boosts Patels Airtemp Aurobindo Pharma inches ahead on UA FDA nod for new drug Pratibha Industries builds on new order win Cambridge Technology reboots on US acquisition Power stocks in focus after NSG nod for nuclear commerce with India Bonus record date charges Amara Raja Batteries New initiative powers NTPC Hotel Leela Venture gains on expansion buzz Essel Propack surges on overseas acquisition

Hotel Leela

Hotel Leela Buy in dips CMP: 33.75 Tgt: 36-37 The daily candlestick chart of Hotel Leela shows a bullish candle on decent volumes. After a vertical decline from Rs.52 it is consolidating around Rs.30 for a couple of weeks. If it sustains above Rs.36 we could see some more recovery. One can buy preferably in declines around Rs.32 with a strict stop loss below Rs.29.80 in close for a pullback up to Rs.36-37 in the coming 7-8 days and Rs.40-42 in the medium term. A breach of Rs.28 would negate the up move.

Andhra Petrochemicals, Tanfac Industries

Andhra Petrochemicals (17.00) is the only producer of Oxo- Alcohols in India with a production capacity of 42,000 MTPA. To secure a greater share of the market and meet the growing demand, company is in undergoing expansion and modernization programme to increase its production capacity to 73,000 MTPA. However, the enhanced capacity is expected to be operational only by Sept 2009. Incredibly, company has been able to save a massive Rs 12 cr per annum only on power cost as it has installed and commissioned 2400 KVA uninterrupted power supply system and discontinued the operation of D.G.Sets from last fiscal. Despite considerable rise in input cost company was able to maintain its bottomline for FY08 on reported sales of Rs 281 cr. On the optimistic front, it may clock a turnover of more than Rs 300 and PAT of Rs 35 cr posting an EPS of Rs 4 for FY09. Can be bought at sharp declines

.

Tanfac Industries (55.00) Belonging to diversified Aditya Birla group, is one of the largest suppliers of fluorine chemicals in India. Besides it also produces organic fluorides & speciality fine chemicals which are used as intermediates in the manufacture of pharmaceuticals and agrochemicals. For June’08 quarter it reported excellent result as sales jumped up 50% to Rs 47 cr whereas PBT more than tripled to Rs 5.20 cr. But due to high tax provisioning its net profit zoomed up by 150% to Rs 3.30 cr. Company is estimated to perform better in FY09 as it has undertaken new market initiatives, new products launch, capacity expansion of existing production and cost savings from process improvement schemes. Moreover, company has also got its CDM project approved and is expected to generate additional revenue from carbon credits this fiscal. Accordingly for FY09 it may clock sales of Rs 200 cr and profit of Rs 13.50 cr i.e. EPS of Rs 14 on equity of Rs 9.98 cr. Scrip can shoot up 50% as and when market sentiment improves.

कही-सुनी............

Confidence Petroleum (Rs. 11.00) (Code: 526829) :- Counter has witnessed huge volumes in recent past, which indicates big buying from a big broker group. Current market price of the stock is at lowest level after movement in the scrip. Investors fancy is expected to move up in the scrip. Ceekay Diakin (Rs. 52.00) (Code: 505923) :- Company manufacturing Automobile equipments has bagged a big order in recent past. Even company had made some announcement about it new venture of coming up with project of two wheelers in the market. But Mamta Banerjee has put a big question mark on the project of Nano Car. Investors having investment in the company should book profit at higher price level and get out. Karuna Cables (Rs. 1.92) (Code: 531904) :- All speculative forces have become active on the counter. Investors with good risk appetite may invest in the scrip at current level, as the brokers are once again eyeing on the scrip. Lok Housing (Rs. 51.00) (Code: 500256) :- Investors wants to earn 10 to 15 per cent returns on the investment may plan investment in the scrip at current price. DCB (Rs. 52.00) (Code: 532772) :- Informed sources of the market says that well known brokers have turned buyers in the scrip, which may lift the stock price to the high level of Rs. 60 in days to come. Visa Steel (Rs. 48.00) (Code: 532721) :- Quarterly results of the pig iron manufacturing company is good. Mumbai based mutual fund managers are on the verge of becoming active on the counter. Ferro alloys (Rs. 21.00) (Code: 500141) :- An analyst, who have started taking interest in the sector, has recommended investors to invest in the scrip. Company has announced 25 per cent interim dividend and paid 50 per cent dividend earlier to the share holders. Investors should grab an opportunity to invest in the scrip for medium term.

Corporate News

DIAL receives prestigious Greentech gold award Minda Industries receives gold trophy for excellence in technology Vishal Retail opens three new showrooms India Foils to hold board meeting Essel Propack acquires Medical Engineering & Design, Inc. in USA Phoenix International appoints additional director Pearl Polymers commences commercial production at its new plant Indoco Remedies recommends dividend Rain Commodities to hold board meeting Gujarat Cotex to hold EGM Jay Shree Tea & Industries to hold board meeting Panoramic Universal signs agreement with a leading software solution provider Geometric to showcase CAMWorks 2009 at IMTS Show Rohit Ferro Tech to convene board meeting

मोदी अल्कलिएस एंड केमिकाल्स

Lords Chloro Alkali Limited (Formerly known as Modi Alkalies and Chemicals Limited) are listed on the Exchange with effect from Monday, September 08, 2008.

ट्रेडिंग समय परिवर्तन सूचना

Session Timings Changed from *September 24, 2008* to *October 08, 2008* (both days inclusive). Time From *9:55 a.m.*To *11:25 a.m *and From *12:10 p.m *To* **4:15 p.m*.

Follow up एक्सिस IT&T

Axis IT&T - The Future Aerospace Services' Sector Leader BSE Code - 532395 NSE Code – AXIS-IT&T Current Market Price - Rs. 23 Target Price - Rs. 75 Investment Rationale : Correct Assessment of {Past + Present + Future} = Correct Investment Decision. To simplify, if we deeply dig into the ‘past’ of a company, have a sense of what is the ‘present’ of the company and can imagine perfectly the ‘future’ of a company based on past and present then we can arrive at the right investment decision. Hence, lets analyze Axis IT&T’s past, present and future and then arrive at a decision as to whether our decision to put a price target of Rs. 75 on this stock even in the current weak and uncertain market is valid or not. Past : Axis IT&T is a company which can be best described as a direction-less company wherein first it tried its hands on the booming BPO market. When that segment failed to produce desired results it tried to tap the booming Engineering Services space by acquiring Axis Inc and bringing its management under its fold. However, the acquisition of Axis Inc also failed to bring positive results as its top manager was busy in many other activities other than the pure business. But still, the things Axis Inc brought to IT&T's fold were the expert middle- level and junior-level personnel who were very talented in engineering services space as also the engineering services-infrastructure and set- up which takes many years to build. Present : No company can survive with only good infrastructure and good personnel unless it has the proper top management which can effectively utilize the resources the company has. The inefficiency of the top management of Axis IT&T came as a blessing in disguise for the shareholders of Axis IT&T as Mr. Rajeev Chandrashekhar who was sitting pretty with the Rs. 1500 cr. + cash from BPL-sale was on the look-out for a company with engineering services expertise which can serve his Jupiter group's aggressive aviation-sector plans. He saw Axis IT&T a perfect fit and so he acquired it immediately via Tayana Software - a subsidiary of Rajeev's tech-firm Jupiter Strategic Technologies. It is worthwhile to note here Mr. Rajeev Chandrashekhar’s seriousness regarding acquiring Axis IT&T by the fact that he didn't acquire a 20, 30 or 40 % share but a hefty 60.83 % share of Axis IT&T which itself shows the big plans he has for this only listed entity of his group. Future : Now, with all the acquisition formalities completed in July 2008 and 61 % stake of Axis IT&T under his belt, top honchos of Rajeev Chandrashekhar group are busy charting out strategies regarding the group's aviation plans. Although the slowdown in aviation sector has made the strategists cautious than before but Mr. Chadrashekhar is quite clear in his intentions and has reportedly sent a strong message across his group to tap aggressively the aviation sector especially the aviation-support-hub-plans. Under this plan, Mr. Chandrashekhar plans to build a vertically integrated support-system wherein the client approaching him gets all the services starting from design, repair, overhaul, consultancy, etc. except manufacturing. The acquired Axis IT&T is likely to cater to design, MRO-consultancy & MRO- optimization. The strategists are also considering the possibility of starting new services and bringing innovative solutions pertaining to Aircraft signaling, Anti-collision-methodologies and sensor-based aircraft-fault-reporting-technology under Axis IT&T's umbrella. Talks are going on with EADS (European Aeronautic Defence and Space Company ) to supply their expertise on bringing out these innovative solutions. The blueprint regarding the final plan for Axis IT&T is deadlined to be ready by November 2008 and Mr. Chandrashekhar will approve the plan by January 2009. Starting from January 2009, a recruitment-drive will start and the real mega-operation is likely to start from April 2009. In FY10, strategists want Axis IT&t to reach an average quarterly run rate of Rs. 35-45 cr. which is likely to scale up in FY11 to Rs. 100 cr. per quarter. ? A Price Target of Rs. 75 easily achievable by March 2009 - WHY ? At the current market price of Rs. 23, Axis IT&T is trading at approximately Rs. 50 cr. market cap. Normally, the companies where a strong group is involved discount the future well in advance. A typical case in point is Fortis Financial Services (now called Religare Technova) which surrendered its NBFC license and has charted out plans to focus on technology sector recently. Inspite of the heavy losses under which Fortis is reeling at present, it is trading at a market cap of Rs. 250+ cr. which is purely a case of discounting the future. Although such a hefty market cap is looking rosy at present but once the financial results will be out for FY10 it will look really cheap. Similarly, Axis IT&T is available at a market cap of just Rs. 50 cr. only because of the uncertain market conditions and the blueprint of the plan for Axis IT&T still not ready. Once the blueprint is out and is in the hands of Mr. Chandrashekhar and the recruitment-drive starts in January 2009 it is likely to trade at a minimum market cap of Rs. 150 cr. which translates into the market price of approximately Rs. 75. The risk of not achieving this target is minimum because Mr. Chandrashekhar holds 61 % of Axis IT&T and Axis IT&T is the only listed entity of his group. Hence, evenif due to tough credit-market, Mr. Chandrashekhar wants to tap the equity route, he will first look at reverse merger of any of his group entity into Axis IT&T which will be hugely beneficial for Axis IT&T's shareholders. The downside is minimal as Mr, Chandrashekhar will not at all like to trade his only listed venture at below Rs. 10. After successfully exiting BPL, Mr. Chandrashekhar is also said to have hit success in his media venture Asianet with Murdoch getting interested in it. Hence, now he is focusing on two fronts – first his Private Equity plans and second his Aviation-sector-plans. Both the focuses will be beneficial for Axis IT&T as via PE it can get more funds and via Aviation-sector-plans it can get more revenues, profits and tie-ups. Hence, to conclude, you look at any of the angle, Axis IT&T is a very safe bet in current uncertain market as the downside is limited while upside is unlimited.