IIFL Nifty ETF NFO: Review Analysis & Details

Details about IIFL Nifty ETF: Review, Analysis, Details & Investment Opinion. We've been giving a lot of advice about investing in ETF or Exchange Traded Funds. Here is an Example of Nifty based ETF.
Adding to the list of existing Nifty based ETF's, the

India Infoline Asset Management Company Ltd (IIFL AMC) has come out with its own Nifty based ETF called the IIFL Nifty ETF

The IIFL Mutual Fund House is launching their IIFL Nifty ETF. In this article, we will analyze how good is this IIFL Nifty ETF NFO, whether this IIFL Nifty ETF offers anything new or unique for the investors and whether the investors should invest in

IIFL Nifty ETF.

IIFL Nifty ETF NFO: Review Analysis & Details

Let's begin with some basic details about IIFL Nifty ETF.

What are the NFO dates for IIFL Nifty ETF? The NFO period for IIFL Nifty ETF is from 28 September and will close on 12 October 2011. After the NFO period, the regular buying and redemption of fund units will start, but the precise date is not known.

What is so unique about this IIFL Nifty ETF? All funds- whether they are ETF or Mutual Funds have a cost attached to it - it can be in the form of fund management charges, fund adminsitration charges and so on. What appears to be unique about this IIFL Nifty ETF is that it claims to be the lowest on cost structure for fund management. As per the details available, this IIFL Nifty ETF will have only 0.25% fees and expenses for fund management charges - claimed to be the lowest in the MF industry. Other than that this is another Nifty based Exchange Traded Fund or ETF with the usual ETF benefits of low cost, precise tracking of the underlying index with minimal tracking error, benefit of intra day price movements to take advantage of trading on an index with the flexibility of stock trading and so on. See all advantages here Advantages of Nifty based ETF

What are the other competitor products available in comparison to IIFL Nifty ETF? Apart from that, there are many other Nifty or Sensex based ETF's or Index funds which are available for investments as well as intraday trading for betting your money on the movements of Nifty and Sensex: 1. Religare Nifty ETF Exchange Traded Fund
2. Sahara Sensex ETF
3. Quantum Index Fund (Nifty) ETF
4. Nifty Benchmark ETF
5. Birla SunLife Nifty ETF
6. Motilal Oswal MOSt Shares M50 ETF and many more

What are the risks of investing and trading IIFL Nifty ETF? The benchmark for IIFL Nifty ETF Fund is the S&P Nifty 50 Index. By investing in such a fund, you are taking the risk on overall Indian Markets, as included the 50 shares of Nifty 50. If the Nifty fluctuates, so will the returns generated from this fund will keep fluctuating in either direction. But overall, the index based index funds and ETF's are learnt to have outperformed the rest of the mutual funds in better probability.

Final Thoughts about IIFL Nifty ETF? Another Nifty based ETF adding to the list of Nifty (and Sensex) based index funds and ETFs already available in the Indian markets. You can look for investing in this if you believe the Nifty index will generate better returns and this ETF will closely match the performance of Nifty, with minimal tracking error.

See List of All Mutual Fund and NFO Articles here

During NFO period each unit cost Rs. 10 per unit

Minimum investment Rs 5,000 and in multiples of Re 1 afterwards.

No tax benefit will be available in IIFL Nifty ETF

Mr. Manish Bandi will be the fund manager for IIFL Nifty ETF

ICICI Gold Savings Fund NFO: Review Analysis & Details

Details about ICICI Prudential Regular Gold Savings Fund: Review, Analysis, Details & Investment Opinion. Gold, Silver, Precious metals are appearing to be the most sought after commodities. With the high volatility in the USD exchagne rates as well as that in the crude oil prices, the investors, traders as well as the big institutions like the central banks of the world are running for gold to be in their reserves. Right from common man to big central banks, everyone has been dancing to the tunes of Gold investments, and so the prices have gold have shot up the roof in last 5 years. However, one must not forget what happened in last 2 days. Gold prices have tanked down with the biggest intra day fall again raising the speculation that is going on in gold and silver.
India, being one of the biggest consumers of gold, has a big festive season ahead and asset management companies are trying to attract the investors to get into gold products with an assurance that gold prices have given good returns in the past so investors must invest in gold products. Already, there were lot of gold products in the market, the most recent one was SBI Gold Fund and now ICICI Prudential MF AMC has come out with so called

ICICI Prudential Regular Gold Savings Fund. I still have objection to the use of word "Savings" because there is no guarantee of positive returns, but that's something the investors should note and be careful about.
The ICICI Mutual Fund House is launching their ICICI Gold Savings Fund. In this article, we will analyze how good is this ICICI Gold Savings Fund NFO, whether this ICICI Gold Savings Fund offers anything new or unique for the investors and whether the investors should invest in

ICICI Gold Savings Fund.

ICICI Prudential Regular Gold Savings Fund NFO: Review Analysis & Details

Let's begin with some basic details about ICICI Gold Savings Fund.

What are the NFO dates for ICICI Prudential Regular Gold Savings Fund? The NFO period for ICICI Gold Savings Fund is currently open and will close on 4 October 2011. After the NFO period, the regular buying and redemption of fund units will start, but the precise date is not known.

What is so unique about this ICICI Gold Savings Fund? Investors and traders would know that there is a Gold ETF already available in the market from ICICI MF, it is

ICICI Prudential Gold Exchange Traded Fund (IPru Gold ETF). What this

ICICI Gold Savings Fund will do is collect money from investors (either one time or multiple times through SIP or Systematic Investment Plan) and invest that money in ICICI Prudential Gold Exchange Traded Fund - the Gold ETF from ICICI MF.
So, this new Gold Fund from ICICI will work exactly the way the Reliance Gold Savings Fund (See Review & Details), SBI Gold Fund and Kotak Gold Savings Fund works. They too pool in money from investors, and invest in their own respective Gold ETF's.
In my honest opinion, I dont see any special benefits of such Gold Funds or Gold Savings Funds - (SBI has been good atleast not to use the word SAVINGS in their product, which I was not happy about with Reliance, Kotak and now with ICICI). My take is that it is much easier for investors to directly invest in Gold ETF's rather than going through the Fund route.
However, there are a few advantages of these so called Gold (Savings) Fund. They allow you to invest in small amounts. You dont need to worry about the intra-day high low prices of Gold ETF or similar products with intra day trading. One does not need to have demat account which is mandatory in case of Gold ETF.
At the same time, the above advantages come with disadvantages - you cannot benefit from intra-day price movements (but is that required? you are inevsting in this gold fund for long term saving purpose), you pay fund management charges (you pay brokerage to broker for Gold ETF trading) and son on.
Although the investment objective of the ICICI Gold Savings Fund is to generate returns similar to ICICI Gold ETF, I wonder what actually this fund is going to really do instead of just being a channel to route investor's money into their own Gold ETF.

What are the other competitor products available in comparison to ICICI Gold Savings Fund? The recently lauched SBI Gold Fund and Reliance Gold Savings Fund (See Review & Details) are the biggest and direct competitor to ICICI Gold Savings Fund - the two products from Kotak and Reliance Fund houses work in almost the same way.
Other than that, there are a lot of Gold based ETF's and Gold based Mutual Funds available: List of Gold ETF India available for trading on NSE Recently, HDFC came out with HDFC Gold ETF NFO: Review Analysis & Details
Then there is the good old Quantum Gold Fund (Gold ETF)
and ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme
Other Gold Schemes: Quantum Gold Fund
Want to know how Gold prices have performed historically, see Gold ETF: Historical Performace of Gold ETF


What are the risks of investing and trading ICICI Gold Savings Fund? The benchmark for this Gold Savings Fund from ICICI is the domestic prices of gold. By investing in such a fund, you are taking the risk on overall Gold price movements. If the Gold prices start going down after you invest in this fund, so will the price of ICICI Gold ETF and hence this ICICI Gold Savings Fund investments values will also go down.

Final Thoughts about ICICI Gold Savings Fund? Nothing special, just another gold based fund adding to the long list of Gold based funds already available in the Indian markets. If you are reading this article, that means you are aware about the computer and demat and things like that (no paper based application), so my advise will be to directly invest in ICICI Gold ETF (or any other Gold ETF) instead of this fund. Let the ICICI Gold Savings Fund be for those who dont want to get into the hassles of demat and such things or for those who are really looking for very small SIP investments like Rs. 100 and so on.
See List of All Mutual Fund and NFO Articles here During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5,000 and in multiples of Re 1 afterwards.
No tax benefit will be available in ICICI Gold Savings Fund
Mr. Chaitanya Pande will be the fund manager for ICICI Gold Savings Fund.
Multiple options available for investments in ICICI Gold Savings Fund :
Growth Option
Dividend Option - Payout, Reinvestment facilities
ICICI Gold Savings Fund Entry Load: Nil
ICICI Gold Savings Fund Exit Load: 2% if exit within 1 year - this is much higher compared to what SBI Godl Fund and Reliance Gold Savings Fund is charging (they have it at 1%)
NIL beyond 1 year.
SIP or systematic investment plan? Yes with minimum 1000 Rs. - That's again much higher minimum SIP amount requried. Reliance and SBI are offering minimum SIP at 100 Rs.

Domestic Price of physical gold will be the benchmark for tracking the performance of ICICI Gold Savings Fund

Flexituff IPO: Review Analysis & Details of Flexituff IPO

In this article we'll talk about the Review, analysis, details and information about Flexituff IPO.

Flexituff international Ltd. which manufactures

flexible intermediate bulk containers (FIBCs) is about to come up with its

Initial Public Offering (IPO) in the month of September. First let's start with the

review analysis and details of the

Flexituff IPO.

Flexituff IPO: Review, Analysis and Details

The size of the IPO is 67.5 lakh of equity shares. This comprises of a sale of 22.5 lakh shares by Clearwater Capital Partners (Cyprus) Limited. The rest 45 lakh equity shares will be as fresh issue. Company is planning to raise about 100 crore from this IPO. IPO will contribute about 25.97% of its total income and Clearwater Capital Partners (Cyprus) will add about 15.77% to there total income.

What are the primary reasons for Flexituff International Ltd. to come out with the Flexituff IPO? The primary reason behind this IPO is to collect money from public and use it in expansion of the manufacturing capacity of its present industries. Another reason is that, the company wants to improve manufacturing facilities by implementing latest technologies in its present industries.

So what is the needs of Flexituff International Ltd. to come out with the Flexituff IPO? The company officials mentioned that the amount contributed by this IPO will be used for the following causes: 1) Expansion of facilities at SEZ and DTA units at Pithampur. 2) Company wants to set up Dripper project at Kashipur. 3) To meet the working capital requirements.

What is the issue size of the Flexituff IPO? The issue size of the IPO is 67.5 lakh equity shares. This is distributed in two parts: 1) 45 lakh of equity shares for fresh issue. 2) 22.5 lakh of equity shares for Clearwater Capital Partners (Cyprus) Limited.

What is the price band of Flexituff IPO? The price band of this IPO is fixed between Rs 145 to Rs 155.

How many shares will be sold in the Flexituff IPO? 45 lakh of equity shares will be sold under Flexituff IPO.

What are the IPO dates for Flexituff IPO? The issue date for the Flexituff IPO will be from 29th September till 4th October.

How will the capital raised by L&T Finance IPO be used? The company officials mentioned that the amount contributed by this IPO will be used for the following causes: 1) Expansion of facilities at SEZ and DTA units at Pithampur. 2) Company wants to set up Dripper project at Kashipur. 3) To meet the working capital requirements.

Any ratings given to Flexituff IPO? No information about that as of now.

What are the analysts' recommendations and business results for Flexituff IPO? At the end of 31st march, 2011, the net profit reported by the company was Rs 30.97 crore. Whereas the total income was 618.39 crore, which is very good as compared to other companies.

Plastene India IPO: Review Analysis & Details of PIL IPO

Plastene India IPO Details, Review, Analysis, Opinion and information on Plastene India IPO
In this article we will look upon the Details, Review, Analysis of the Plastene India IPO.

Plastene India IPO: Review Analysis & Details

Let's start with some basic details first:
- The size of Plastene India Limited (PIL) is 105,00,000 shares.
- The capital collected through these shares will constitute about 29.34% of the total income.
- This amount will be utilized in the vast spread business of manufacturing flexible intermediate
bulk containers, woven sacks, fillers, granules, tarpaulin, flexible packaging, woven fabric, master-batches, multi-filament yarns and webbings.

What are the primary reasons for PIL to come out with the PIL IPO?
Plastene India is planning to expand its manufacturing capacity to 69,000 MTPA and for this
the estimate cost calculated is Rs 55 crore. This expansion will help in fulfilling the growing demands of Jumbo Bags and BOPP woven sacks.

So what is the need of PIL to come out with the PIL IPO?
Plastene India is planning to purchase plant and machinery for its latest product Block Bottom Valve Bag.
And the place chosen by company is at NaniChirai, Gandhidam.
The second motive of this IPO is to expand its existing manufacturing facilities at Rajpur, Gujarat.

What is the issue size of the PIL IPO?
The PIL IPO size is of 105,00,000 shares.

What is the price band of PIL IPO?
The Face Value of each Equity Share is Rs. 10 each.
The price band and the minimum bid lot will be decided by the Company in consultation with the book
running Lead Manager and advertised at least two working days prior the BID/ISSUE opening date.

How many shares will be sold in the PIL IPO?
The total no. of shares to be sold through this IPO is not known precisely. However, it is known that there will be 25% stake dilution.

What are the IPO dates for PIL IPO?
The final bidding dates have not came yet. Opening dates will be in September.

How will the capital raised by PIL IPO be used?
The capital raised will be used in:
1) Purchase of plant and machinery for its Block Bottom Valve Bag.
2) For the expansion of its existing manufacturing facilities.

Any ratings given to PIL IPO?
ICRA assigns grade 3 to PIL IPO.

What are the analysts recommendations and business results for PIL IPO?
Plastene India Limited was initially called as Oswal Agloimpex Limited. Earlier owners were
Mr. Prakash H. Parekh and Mr. Champalal G. Parekh. Year of incorporation of PIL was 2004.
At that time it started at Gandhidham, Gujarat. Initially its capacity was 21,000 tpa for polywoven
sacks and flexible packaging products. The current capacity is now increased to 55,000 tpa at
Gandhidham and Rajpur in Gujarat. Overall this IPO is given an average rating.

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LIC Endowment Plus Policy: Review Analysis & Details

This article contains LIC Endowment Plus Policy Review Analysis & details.
You must have seen the ad on TV about a kid asking his young elder brother about the kind of girl he wants to marry, and he replies that he wants to marry a girl who is in government job (with job security), so that atleast one person keeps earning forever. The kid then replies that instead of looking for such secure job girl, its better to take LIC Endowment Plus Policy. Let us see whether this Endowment Plus policy really helps to achieve the kind of financial security which the ad claims to offer or is there something better to do.

MCX IPO: Review Analysis & Details of Multi Commodity Exchange (MCX) IPO

MCX IPO Details, Review, Analysis, Opinion and information on MCX IPO
The MCX or Multi Commodity Exchange of India which is the leading commodity exchanges of India, has received approval from SEBI for it IPO and is now planning to come out with its Initial Public Offering or IPO. Once listed, MCX will be the first stock exchange in India which will have the prriviledge of being a listed stock exchange company. The approval from SEBI for the MCX IPO was received on date 9th September 2011.
In this article, we will look at the Review, Analysis and Details of the MCX IPO.

MCX IPO: Review Analysis & Details

Some basic details first about the MCX IPO, which are available as of now: Image sourced as screenshot from official website of MCX
- The size of MCX IPO is Rs. 661 Crores at the top end of the price band.

- Being a stock exchange, it derives its income from transaction fee, subscription fee, brokerage fee and similar related modes of a typical stock exchange.

- It is learnt to be the largest commodity exchange in India and sixth largest commodity exchange in the world

What is the issue size of the MCX IPO?
The issue size of MCX IPO is Rs. 661 Crores.

What is the price band of MCX IPO?
The price band for MCX IPO is Rs. 860 to Rs. 1032. Final price will be decided through 100% book building process. Face value of each share will be at the standard INR Rs. 10 per share

How many shares will be sold in the MCX IPO?
The total no. of shares to be sold through this IPO is around 64.3 lakh equity shares - that 6.43 million shares. That makes around 12.6% of the total equity of the company.

What are the IPO dates for MCX IPO
The IPO dates for MCX IPO are from February 22, 2012 to 24 February 2012.

How will the capital raised by MCX IPO be used?
MCX is currently held by many financial institutions. Among them, some like FTIL or Financial Technologies, GLG Financials Fund, State Bank of India, Alexandra Mauritius, Corporation Bank, ICICI Lombard General Insurance and Bank of Baroda are selling a part of their shares through this IPO.
FTIL which is the largest stockholder currently holding 31% shares will sell out a large portion of its holding and post IPO its share will come down to 26%.

How the capital raised through this IPO will be used is not known as of now - will be updated as soon as the details are available:

See List of All IPO Articles here

Any ratings given to MCX IPO?
Yes - CRISIL, the rating agency, has assigned a grade of 5 out of 5 to the MCX IPO, which indicates the best possible rating any company can get.

What are the analysts recommendations and business results for MCX IPO?
Stock exchange business is known to be profitable - they make money even if the market participants trading on their markets loose. So it is considered to be a very safe business. However, one must not forget the intense competition that is going on even in the stock exchange space. There are lots and lots of stock exchanges coming up in India, that too in the space of commodity trading.
A stock exchange can continue to be in business only if it provides a reliable platform for trading and manages to capture bulk of trading activities onto it. MCX curently has the lead position in commodity trading in India. Backed by the largest shareholder, Financial Technologies, it is well placed to scale upon the high volume of trading that is expected to expand in near future.
Apart from that, there are other requirements like lauchning of innovative products like e-gold, e-silver, etc. which any stock exchange will have to continously come up with. Same goes with launching of various indices, like sector specific, country-region specific indices, which form the basis of other financial products like ETF's and the exchange derives licence fee from the asset management companies which launch such products.
It is also learnt to have global as well as domestic alliances with other stock exchanges like London Metal Exchange, TAIFEX - Taiwan Futures Exchange, Baltic Exchange, New York Merchantile Exchange, etc.
Currently as well, MCX is the known to be the largest stock exchange for silver contracts trading in the world. For gold contract trading, it is the second largest stock exchange in the world.
Not all countries in the world have stock exchanges listed as companies. USA, UK, HongKong, Singapore, Australia and Japan are the only countries at present which have allowed stock exchanges as listed entities. India will soon join the league once the MCX IPO opens and MCX shares start trading.

See Latest Update: MCX IPO Grey Market Premium at 30% - February 18, 2012

Edelweiss Capital, Citigroup Global Markets India and Morgan Stanley India are the BRLM or Book Running Lead Manager to the MCX IPO

Tax Benefits on Home Improvement Loans: Home Renovation Loan Tax Benefits

Continuing our series of articles on Home Loan Tax Benefits, here are some important details about another important aspect of home loans - the Home Loans taken for Home Renovation or Home Improvements. This is a common scenario in case you buy some old resale property (see related Advantages Of Buying Resale Property, Disadvantages Of Buying Resale Property & Checklist for Resale Property Purchase), OR you inherit some property from your parents or family OR you get some old property as a gift from any of your relatives or friends. Being an old property, it needs some furbishing, some repair work, etc. but that cost is high for you to afford. So you decide to take a Home Improvement Loan or Home Loan for Renovation . The question is - is the home loan taken for Improvement or renovation eligible for any tax benefits? Who all can avail the home improvement loan tax benefit? Let's see some of these cases in this article

Home Improvement Loan Tax Benefit: Home Renovation Loan Details

What is home improvement loan or Home renovation loan?
The home loan which is taken for carrying on repair, renewal, reconstruction or renovation in any old house or residential property is called home improvement loan.

Who is eligbile for home improvement loan or Home renovation loan?
Any individual who is the owner or joint owner of the property can apply for home improvement loan or Home renovation loan. The bank providing the loan will decide the eligibility criteria for the individual.

Is Tax benefit available for the borrowers on home improvement loan or Home renovation loan?
Yes, you can get tax deduction benefit in respect of the interest payable on the loan taken for repair, renewal, reconstruction or renovation to the extent of Rs 1.50 lakh under section 24 of the Income-tax Act, provided the house is self-occupied. There is no limit on the tax benefit on interest if the house is on rent.
However, there are 2 limitations -
1) Only the interest portion of the Home Improvement Loan qualifies for tax benefit. The principle portion repayment amount does not provide any tax saving benefit.
2) Tax benefit can be availed only by the owners or co-owners (joint home owners)

Please note that this tax benefit is available on ALL investments and expenses you make under section 80C, and although the SUM TOTAL of all these can exceed 1.5 lakhs, the tax benefit can ONLY be availed on 1.5 lakhs maximum. See Tax Savings Section 80C: List of Qualifying Investments and Expenses

To see more on Home Loan related Tax Benefits, please check Home Loan Tax Benefits and All Home Loan Articles

Is Tax benefit available to co-applicants also for home improvement loan or Home renovation loan?
There is this new term called "co-applicants" which has been devised by many banks. This term basically refers to a person whose name banks take as co-applicants along with the actual home loan borrowers. Usually, Home loan provider banks take a name of co-applicant for 2 reasons

1) Security : In case the primary loan seeker defaults, the co-applicant can be approached
2) Nominee: In case of death of the primary loan seeker, the co-applicant is approached

However, Home loan co-applicants are usually NOT eligible for tax benefits on any kind of home loans. Only the owners & joint owners whose names appear on the property documents are eligible for home loan tax benefits. However, the definition of co-applicants may differ from one bank to the other. Please check with your home loan bank's legal department on the tax benefit eligibility for any kind of home loan. They should be courteous enough to provide that advice free of cost

Prakash Constrowell IPO: Review Analysis & Details of Prakash Constrowell IPO

Prakash Constrowell IPO Details, Review, Analysis, Opinion and information on Prakash Constrowell IPO
The Prakash Constrowell Company which is in the construction business of infrastructure development and civil construction in India, is now coming out with its Initial Public Offering or IPO. The IPO size is not that large, its a 60 Crore Rs. IPO.
In this article, we will look at the Review, Analysis and Details of the Prakash Constrowell IPO.

Prakash Constrowell IPO: Review Analysis & Details

Some basic details first about the Prakash Constrowell IPO, which are available as of now: Image sourced as screenshot from official website of Prakash Constrowell

- The size of Prakash Constrowell IPO is around Rs 60 crore INR
- It is primarily a construction company based in Nashik Maharashtra and has multiple streams of construction business - civil, infrastructure development, residential as well as commercial real estate development
- It has worked for many Government and semi-government projects
- Also worked on lots of projects on BOT - Build, Operate & Transfer basis using the PPP - Public-Provate Partnership model

What is the issue size of the Prakash Constrowell IPO?
Around 60 Crore Rs is the estimated size of the Prakash Constrowell IPO

What is the price band of Prakash Constrowell IPO?
The price band for Prakash Constrowell IPO is not yet decided, it will be available just prior to the IPO opening dates. Final price will be decided through 100% book building process.

How many shares will be sold in the Prakash Constrowell IPO?
The total no. of shares to be sold through this IPO is not known as of now

What are the IPO dates for Prakash Constrowell IPO
The IPO dates for Prakash Constrowell IPO are from September 19, 2011 to September 21, 2011.

How will the capital raised by Prakash Constrowell IPO be used?
The capital raised through this IPO will be used for the following:
- Investment in subsidiaries
- Purchase of construction related equipments
- Rest will be for working capital requirements

See List of All IPO Articles here

Any ratings given to Prakash Constrowell IPO?
No info about that as of now.

What are the analysts recommendations and business results for Prakash Constrowell IPO?
The company is in the real estate business in multiple streams - Government/Civil projects, residential and commercial real estate space. Overall, the development of business and related companies within this sector is heavily dependent on the economic conditions and these businesses are highly rate sensistive (as listed in the Interest Rate Sensitive Stocks & Sectors List). With the current scenario of high interest rates and unclear economic situation both at the domestic as well as international markets, the work and business growth in this sector is difficult to predict.
Although the company is reporting to have robust growth - around 69% of annual growth rate from 2007 to 2011 - the income from operations has grown from Rs. 26.4 Crores to 126.9 Crores in the same period.
Profit after tax or PAT has increased from 3.06 to 10.65 in the same period, which indicates the annual growth rate of around 51.47%.

All nos. look good, but as investors are aware that past performances are no guarantee for future returns. Many IPO's are coming out even in these volatile times - some are taking big hits (like the Brooks IPO), while some are generating mediocre profits.
Ultimately investors need to take the call as per their risk appetite. Real estate sector has its own ups and downs.
Other market expert opinions will be updated here as and when the details are available, as the IPO dates come to close.
Intensive Fiscal Services is the BRLM or Book Running Lead Manager to the IPO

Online Motor Insurance Renewal: High Cost Low Value: Beware & Check

It was somewhere around this time last year (2010) when we had written about this business of Online Renewal of Motor Insurance Policy in our article ICICI Lombard Motor Insurance: Online Renewal: High Cost, Low Value, where I ended up renewing the policy from ICICILombard at the click of a button, just to later realize that I have paid a high price compared to what was available elsewhere.
So this year again, my motor insurance policy was about to expire, and I got to check it online for renewal. And here are the findings. In summary, the last year trend continued - the cost of motor insurance renewal was still higher than that of a new insurance policy, that too with a low Insurance Value (IDV).

Online Motor Insurance Renewal: Cost Comparison

Then, I also compared the online quotes from other insurance companies and found that their IDV value higher and their premium is lower, which clearly indicates that blindly Renewing your Motor Insurance Policy Online may not be the best bet. Although it may differ from one insurance company to the other, but this is the case which I've observed with ICICI Lombard for 2 consecutive years.
Here are the findings:
First something about the terms used:
IDV - Insurance Declared Value - This is the amount of money you will receive in case something happens (theft, fire, accidental damage) to your vehicle during the insurance period - subject to pro-rata basis.
Premium - this is the charge you pay for buying your motor insurance policy
In essence, one should look for Policies with less Premium and high IDV values.

Online Renewal of Old Motor Insurance Policy from ICICILombard website:
So when I generate the quote for renewing my insurance policy online, like last year (See those details here ICICI Lombard Motor Insurance: Online Renewal: High Cost, Low Value), I again saw a low IDV and a high premium (something not desirable). Going by last year's experience, I was not surprised. Here is the screenshot of what came up on the renewal for motor insurance - IDV of just 20707-00 and a insurance premium of 876-00. What I was also surprised at that this amount of low IDV and high premium was despite they offering the so-called No Claim Bonus or NCB. This is the bonus you are eligible for in case you have not made any claims in your old policies. Since I have a no-claim record for last 4 years, I was eligible for a whooping 45% NCB . But even after that discounted bonus amount factored in, the IDV value was only 20707 and net insurance premium was high - 876.

Online New Motor Insurance Policy from ICICI Lombard for same vehicle:
So, to make a compare of Renewal v/s New Policy purchase, I generated a new policy quote for the same vehicle from ICICILombard.com website. Like last year, it was showing HIGHER IDV 20757 and LOWER premium charge of only 721-00 compared to those for the renewal policy option, for the same old vehicle.
I was mentally prepared for this as this was what I observed last year as well. But again, the question is if a loyal customer is renewing his policy with the insurance company that too on his own through internet (with no effort from the insurance company agents), should he be charged a higher amount or should he be given some discount??
May be I am missing something here as I am not an insurance expert, but I do understand things from a customers' perspective.
If I go for online renewal from ICICILombard, I am being charged higher insurance premium and get a low value IDV.
If I go for new online policy, I am charged a compartively less insurance premium and get a slightly better IDV.
What do we call this - easy insurance renewal at the click of button, or fooling around with loyal customers?

Anyways, I decided to check on some other insurers. Here is what I got on other insurance websites:

Online Motor Insurance Quote from IFFCO-Tokio general Insurance company:
I generated the quote for the same vehicle from IFFCO-Tokio insurance website. And here is what I got:
For the same vehicle, IFFCO-Tokio provided an IDV value of 27,400-00 and the net premium was 806 Rs.
I then added the No Claim Bonus (NCB) of 45%, since there was no claims made by me in my previous ICICILombard Policy in last 4 years, and with the same IDV value of 27400-00, the net insurance premium came down to just 632 Rs.

Online Motor Insurance Quote from Bajaj Allianz Insurance:
Here is what I got from Bajaj Allianz Insurance website for my vehicle insurance policy:
IDV value: 23171, Insurance Premium: only 624 Rs. with 45% No Claim Bonus (NCB).

If you have any questions/queries/concerns regarding this article, FT Times team will be happy to address them. Please post your questions in the comments section by clicking on the link "Post a Comment" at the end of this page

Conclusion about renewing your insurance policies online:
In essence, it all looks sweet and easy to use - Just login to the insurance website, click a few buttons, make payment and there you have your policy to print. But the fact is that being a customer, you need to look for better value (High IDV amount) with less money (low premium amount). To reiterate again, I'm not an insurance expert but I am surely an insurance policy customer. My experience with ICICILombard for their online renewal mechanism has not been positive one - as a customer, I want to pay less and get more. Online Renewal isn't allowing that to happen. It's a kind of surprise that from the same insurance company, the renewal charges are higher with less IDV as compared to buying a new policy. That is not what a loyal customer would like.
So finally I settled for one of the other insurance provider - one that was providing me higher IDV with low Insurance Premium. I dont know how will they treat me next year and quite possible that I might again get into the same situation with them as I have observed with ICICILombard in this and previous year. But that's something which will come up next year.
So One thing is certain - I will definitely check and shop around for a better deal - Always! And that too can be done online, no need to run around with you vehicle from one insurance company office to the the other. Hope the readers also do the same.

PG Electroplast IPO: Review Analysis & Details of PG Electroplast IPO

PG Electroplast IPO Details, Review, Analysis, Opinion and information on PG Electroplast IPO
The PG Electroplast Company which is in the business of Electronic Manufacturing Services (EMS) provider for Original Equipment Manufacturers (OEMs) of consumer electronic products in India, is now coming out with its Initial Public Offering or IPO.
In this article, we will look at the Review, Analysis and Details of the PG Electroplast IPO.

PG Electroplast IPO: Review Analysis & Details

Some basic details first about the PG Electroplast IPO, which are available as of now: Image sourced as screenshot from official website of PG Electroplast

- The size of PG Electroplast IPO is around Rs 120 crore INR
- It is primarily a EMS provider, i.e. Electronic Manufacturing Services (EMS) provider for Original Equipment Manufacturers (OEMs) of consumer electronic products
- Post IPO, the promoters shares in the company will come down to 65%

What is the issue size of the PG Electroplast IPO?
Around 120 Crore Rs is the estimated size of the PG Electroplast IPO, taken at the upper price band of the IPO issue

What is the price band of PG Electroplast IPO?
The price band for PG Electroplast IPO is INR 190 to 210 Rs. per share.

How many shares will be sold in the PG Electroplast IPO?
The total no. of shares to be sold through this IPO is 57.45 lakh or 5.745 million equity shares.

What are the IPO dates for PG Electroplast IPO
The IPO dates for PG Electroplast IPO are from September 7 2011 to September 12, 2011.

How will the capital raised by PG Electroplast IPO be used?
The capital raised through this IPO will be used for the following:
- Repayment of Loans and Debt
- Fund expansion plans for their manufacturing plant in Ahmednagar and Greater Noida
- Rest will be for working capital requirements

See List of All IPO Articles here

Any ratings given to PG Electroplast IPO?
No info about that as of now.

What are the analysts recommendations and business results for PG Electroplast IPO?
The company operates across multiple products - right from plastic moulding to electronic items like DVD Players, CTV assembly, CFL manufacturing, PCB Assembly and even Water Purifier Assemblers, they are diversified across the product lines.
Manufacturing facilities are spread across multiple states - from Maharashtra to Uttarakhand to Uttar Pradesh.
This being a small IPO there is not much of expert advice available. The stock markets across the globe are reeling under the pressure. Yesterdays listing of Brook's Lab IPO was a big setback for its investors where the stock fell around 40% from its issue price. Taking a call on IPO's in these times with accurate prediction is not possible for anyone. One must look for a long term investment horizon.

Although some expert advices have started popping in since this IPO is now open. There are some concerns raised with regard to the product diversification and the corresponding profit share this company has from each of those product segment. For e.g., it is learnt that around 77% of company's income is from color TV. Which means a big dependency on this particular segment. The color television market is shrinking continously because of LCD/LED/Plasma televisions.
Valuation wise, this company looks a bit costly compared to its competitor like MIRC Elctronics, which is trading at 11 time the PE multiple, while PG Electroplast is reported to be 17 to 19 times of its FY11 earnings.
CFL business is reported to be used less than 45% of its full capacity, and water purifier segment there have been hardly any sales.
The company has a small client base and the contracts are reported to be short term rather than long term. Margins are also reported to be on the weaker side.
Almondz Global Securities is the BRLM or Book Running Lead Manager to the IPO and Karvy Computershare is the Registrar to the issue