L&T Infotech IPO to open on July 11: 10 things you should know

Mumbai-based IT services provider Larsen & Toubro Infotech, the subsidiary of engineering and construction major L&T , will open its 1.75 crore shares initial public offer on July 11. The price band is fixed at Rs 705-710 per share.

It is an offer for sale issue, so the promoter and founder L&T will receive entire IPO proceeds of around Rs 1,200 crore. Post IPO, L&T's stake will be reduced to 84.7 percent from currently around 94.94 percent.

Retail investors will get a discount of Rs 10 per share on IPO price. The issue will close on July 13.

Here are 10 things you should know before subscribing for the IPO: Incorporated in 1996, L&T Infotech with revenue of USD 887 million is the sixth largest IT services company in India. It has strong brand name of L&T, the parent company. It benefits from the expertise and experience of the L&T group in verticals such as hydrocarbons, heavy engineering, oil and gas and automotive and aerospace. This assists the company in developing and delivering IT services and solutions that benefit its clients in these verticals and differentiates L&T Infotech from its competitors.

L&T Infotech's substantial business comes from the US region that contributed 69 percent to revenue (followed by Europe with 17 percent). It has only 2 percent exposure to UK, hence analysts see minimal impact of volatility caused by Brexit.

Top client contributed nearly 15 percent to revenue and top 10 clients contributed 50 percent of revenue reported in the financial year gone by. It's client retention is high as it has 96.9 percent of revenue from repeat business in FY16 against 98.1 percent in FY15 and 96.9 percent in FY14.

It operates in diverse industries such as banking and financial services (26.3 percent to total revenue), insurance (20.7 percent), energy and process (12.7 percent), consumer packaged foods, retail and pharma (9.3 percent), media and entertainment (6.2 percent), hi tech and consumer electronics (5.2 percent), automotive and aerospace (6.8 percent). It has presence in fast growing areas like digital, IMS and testing which contributed over 30 percent to total revenue in FY16.

It has high dividend payout policy, with payout of over 75 percent in the last three years.

The company earned profit of Rs 922.2 crore (up nearly 20 percent over FY15) on revenue of Rs 5,847.1 crore (up over 17.5 percent over FY15) in FY16. Its dollar revenue stood at USD 887 million during the year.

It has reported CAGR (compounded annual growth rate) of 9 percent in USD revenue over FY14-FY16 despite a weakness in energy vertical (that contributed 12 percent to revenue). Constant currency dollar revenue growth in FY16 stood at 13.8 percent. Digital revenue reported more than 30 percent CAGR in FY13-16. Operating profit margin contracted sharply from 28.1 percent in FY14 to 17.7 percent in FY16 on account of steep fall in gross margin, which is materially lower than closest peers like Infosys (27.2 percent), TCS (28.2 percent) and HCL Tech & Wipro (21 percent each).

Key management personnel: CEO and Managing Director Sanjay Jalona has over 25 years of experience in the IT industry. Chief financial officer AK Sonthalia is a chartered Accountant with over 24 years of experience. Chief operating officer Aftab Ullah has over 20 years of experience in the IT industry. 

Top 6 Forex Trading Strategies for Beginners

To be a successful forex trader, you will need to have different trading strategies that can be applied in different situations. One of the trading strategy you will need to have as a beginner is pricing. Even though profits and losses are mostly affected by indicators, price also affects them. Using pricing patterns will help you determine when to enter or exit a trade. There are some price patterns that usually repeat themselves due to repeated human behavior. If there is anything that hinders the view of the price itself during trades, it is detrimental to your trading.

Another strategy that will be of great benefit in forex trading is trend trading. Its basis is that price moves in a trend, either in an uptrend, downtrend, or a sideways trend. It is therefore important to watch out for the trends and take advantage of them when the price is in your favor. The problem with trend trading is that you will not have much to do when the price consolidates or stagnates. You will need to be highly looking after the trends that usually cover the actual price and only give its general direction.

You can also use breakout, demand and volume trading to maximize your profits. The basis of this strategy is that the price of trades usually bounces out of certain levels or breaks out of a consolidation period. You will therefore need to take advantage of the periods when the price is favorable to you when making the trades. You will need to understand the demand, supply, volume as well as what causes the price levels to fluctuate as well as the indications when the bounce or breakout is about to happen. You also need to understand which direction the bounce or breakout will go to.

Diverge trading is another strategy you can use in the forex trading market. It is based on the fact that movement of oscillating indicators does not follow the real price movement. There are times when the price can make higher peaks while the indicators are recording lower peaks. Even though these might seem like inconsistencies, they might be good trade signals. You will need to understand the indicators since they are the ones that will help you determine whether to enter or exit a trade.

Another trading strategy that you can use it basket trading which relies on the tradable relations between currency pairs. Even though the correlations may not be 100 percent consistent, when certain pairs move in a particular direction, the associated pairs will generally follow the trend. You will need to know how to see multiple charts at the same time when using this strategy and then make your decisions basing on multiple inputs. You will need to know how to trade a single currency or multiple currencies simultaneously.

Last but not least, there is the combo trading strategy. Here, you can combine anything that you find to be working. The only problem is that you may suffer from information overload as well as analysis paralysis due to different signals you will be getting from different trading methods.

Lupin Gets Establishment Inspection Report For Goa Unit, Shares Jump 6%

Pharma firm Lupin has received Establishment Inspection Report (EIR) from the US health regulator for its Goa facility regarding a inspection done by the USFDA in July last year.

The company "has received notification that the inspection carried out by the United States Food and Drug Administration (USFDA) in July 2015 at its Goa facility is now closed and the agency has now issued an EIR," Lupin said in a filing to BSE.

However the responses from March's USFDA inspection and updates thereafter are still under the review of the agency, it added.

The company's Goa facility supplies over 100 products to various regulated markets including the US and EU. The plant has filed more than 115 abbreviated new drug applications (ANDA's) in the US market.

Lupin has also filed for ANDAs for markets like the EU, Japan and Brazil from the facility.

Shares of Lupin today closed at Rs 1,657.30 on BSE, up 6.25 per cent from the previous close.

Gold Prices Fall Off 28-Month High As Demand Falters

Slipping from a 28-month high, gold prices fell by Rs 150 to Rs 30,900 per 10 grams in the bullion market on Thursday, with demand from jewellers softening, even as the metal rose overseas.

However, silver weekly-based delivery continued to climb as speculators mounted fresh bets on hopes of a further rise in its prices.

Traders said the fall in gold demand from jewellers at the existing higher levels mainly contributed to the decline.

They said, however, a firming trend overseas capped the losses as investors looking for asset haven following market instability in the wake of UK's vote to leave the European Union lapped up gold.

Globally, gold traded higher by 0.3 per cent to $1,367.45 an ounce in Singapore. The prices have gone up by 29 per cent in 2016 so far.

Silver, too, inched up 0.02 per cent to $20.06 an ounce.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell Rs 150 each to Rs 30,900 and Rs 30,750 per 10 grams respectively. It had risen by Rs 400 in Wednesday's trade.

Sovereign, however, saw scattered buying from retailers and traded higher by Rs 100 at Rs 23,500 per piece of 8 grams.

On the other hand, silver weekly-based delivery spurted by Rs 1,325 to Rs 47,840 per kg, but silver ready saw some pressure and plunged by Rs 1,300 to Rs 46,100 due to reduced offtake by consuming industries.

Silver coins surged by Rs 3,000 to Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.

72 Stock Market Investing Tips

72 Stock Market Investing Tips

Why do so many investments fall through cracks? Experts blame everything from lack of information to wrong strategy and over-confidence about the swings in the market. Here, thereby, are 72 tips that may get you find the tracks of investments.

1.            Determine your objectives in terms of short and long term.

2.            Once the objectives are finalized, seek towards the type on investments to buy.

3.            Calculate the level of risk to withstand it.

4.            Determine where you stand in terms of needs and goals.

5.            Make sure you have time to follow through your commitments.

6.            Be consistent and organized. Make thorough efforts in whatever you do.

7.            Be open to all the new thoughts and get out the myths of your bag.

8.            Develop your own plans and play your own games.

9.            Access quality investment information available at internet.

10.          Diversify your knowledge and investments plans to various channels.

11.          Making decision to buy or sell, stock, futures or options under pressure may turn out to be disasters. Never feel pressurized at any time.

12.          Try to reduce risks, as far as possible.

13.          Follow the 2% rule, i.e. never risk more that 2% of your trading capital on a single trade.

14.          Always use stop loss orders to protect capital whenever you make trade.

15.          Never overtrade with under-capitalized accounts.

16.          Move your stop loss to lock the profit in as soon as the deal gets profitable.

17.          Be a tail to the trade trend. Trading against trend without reasonable stops may harm a lot.

18.          When you are unsure of the fluctuations of the market, it is useless to trade. Rather quitting is a smart move at that time.

19.          Avoid stagnant and volatile markets.

20.          It is beneficial to trade in a market that is trending with a volume of more than 100,000 daily.

21.          Do not put all your profits in re-investments. Rather it is highly recommended to save profits and have a surplus account.

22.          Develop strategies and financial plans and work on other alternatives of investments.

23.          Always be well informed through the sources available.

24.          Watch financial market news to help you to get through the moods of market.

25.          Never run after tips. Refer them and use your own brains.

26.          Invest in long-term investments, as there are greater chances of getting better returns in long term.

27.          Short-term market being too fluctuating may cause severe problems to the one.

28.          Evaluate your investments well.

29.          State those in objective terms hat are easy to use for future reference.

30.          A well-researched and well-done valuation is timeless.

31.          Ask for help of your broker or a fundamental analyst.

32.          Always go for a thorough research work before getting into the investment world.

33.          Evaluate and analyze your decisions well in future to avoid repetition of same mistakes.

34.          Select an intelligent broker and use his experience to fetch better returns.

35.          Always seek for cheap brokerage firm but do not compromise on the quality of services provided by them.

36.          Grab the opportunities of discount brokers.

37.          When investing online, remember that online bets are not always instant.

38.          It may get delayed due to heavy traffic on net or so.

39.          Other technological faults like modem, computer and service provider may also act as a hindrance to your investment.

40.          While investing in share market always set your price limits on fast moving stocks.

41.          Market order vs. limit orders rule must be followed.

42.          In case you are not able to access your online account get alternative for placing trade in advance.

43.          Take time and do not assume that your order has not been placed. It may cause repetition of your order and hence, may fetch you losses.

44.          Make sure the cancellation of order has worked before ordering another trade.

45.          If you purchase a security in cash account, you must pay for it before you can sell it.

46.          Reread your margin agreement, as if you trade on margin, your broker can sell your securities without giving a margin call.

47.          Get to know about the legal terms.

48.          Talk to your broker and online firm in case of some misunderstanding in investing.

49.          Know what you are buying and risking in the market.

50.          Bernard Baruch once said that "If you want to make money, big money, buy that which is being thrown away."

51.          Do your research before making investment.

52.          Be alert for any alarms of losses.

53.          Do not expect your broker to recommend the stock that may double your money in few months itself.

54.          Don't be greedy and sell the stock that goes up considerably i.e. 50% or more.

55.          Don't be impulsive and take calculated risks.

56.          Don't buy a stock on a hot rumor; you'll get burned 90% of the time.

57.          Consider tax-planning and income-splitting techniques.

58.          Go for values of stocks.

59.          Maintain a well-evaluated portfolio.

60.          Keep an eye everywhere. Look for bonds of the companies that are out of favor too.

61.          Be an above average trader.

62.          Prepare a checklist for investment.

63.          Make sure that the money you are investing is vital to your financial survival.

64.          Beware of the internet stock fraud.

65.          Verify your investment i.e. do not just rely on your broker, ask other advices too.

66.          Every time you invest, assess the risk/return profile of your investment before actually committing to it.

67.          Also, pay attention to how easily the investment can be turned back into cash, just in case.

68.          Compare and contrast stock trading options available with other options.

69.          It is also important to ascertain one's risk appetite.

70.          Make sure you follow some precautions before investing, like make sure that your broker is registered and not a fraud.

71.          Make sure stock trading documentation is in order.

72.          Remember the stock investment can be risky like any other investment; thus, evaluate the risks associated to a particular move.

Share Market Intraday Tips and Their Importance

Every now and then such an aspect is being observed when we come across the facet of gaining more in less time devoted. This is because; every individual has somehow kept their whims and desires go strong no matter in what time slot but to lead a life embedded with comforts and luxury. In reaching to such healthy and delicate dreams of a million individuals; people have started showing their insatiable curiosities to invest in share markets. The honest reason behind such strives is to incur more profit either in cash or in some financial securities after putting less amount in comparison to the mentioned one. In view to keep such aspects running bold; the share market intraday tips have distinguishably helped the investors to cut down the rate of loss or any unavoidable discrepancies.

As we all know that the stock market is so volatile and unpredictable; so even a single stock market tip can yield great deal of guidance for the novices interested in investing on the mentioned field. There are many private as well as semi-government organizations as well as companies that offer priceless information ad guiding tips on shares and stock exchanges to their highly esteemed clients. Such suggestive approaches in touch with the share market intraday tips have undoubtedly boosted the moral confidence of many investors that can boldly go for a profit behind their cash or other financial securities. Such factors and services in touch with the stock markets can never fade with time or tide.

There are many individuals who by and large have shown their keen dedication behind an investment and in covering all the chances of extracting a loss can be ignored if at all they care to follow a stock market tip quite carefully. The need to stand tall on a risk factor and also diminish the occurrence of any hard earned cash into the loop hole of negative investment can be best sought through the guidelines of share market intraday tips. So it is almost next to a necessary condition for a valid survival that every beginner who is still on the brink of a downfall in the stock market should at least take profitable suggestion form experts as well as investors before putting cash in any stock commodities or shares.

Stock And Share Trading Tips

Thinking of making provision for future financial growth does not have to mean that you are busting your chops today, as you can simply start dealing with stock and share trading. This is a fast and very stable way to invest money provided you take the time to research what is being offered for the money.

You may find in time that there will be a few trades that you would like to have back or forget about, yet for the most part the trading field will be relatively calm and stable. More and more people today are actually seeing the benefits to online stock and share trading.

Knowing what it is that you want to see from your account, will allow you the understanding of what it is that you should be looking for in trade. The more trades you are confronted with, the more likely you are to see growth in your portfolio.

Finding The Right Niche

One of the first things that you will want to do when you start off stock and share trading, is to find the right market for you or niche. There are so many different markets available to traders, that it can easily become overwhelming or confusing. Knowing what you are trying to accomplish, will be the first step in many to financial success through trading. Whether you have decided to go through financial trading or even commodities, you are going to need to pick something that you can understand and move forward with. If you do not understand the market at all, you will find that whatever you are trying to trade for might not really fit into the plans that you had for your profile going forward. If you have a plan that you are confident with, you will know exactly which trades are going to fit into the spectrum of sensible dealings.

Stock and share trading really does not have to be a complicated process. You have something that you bought into and it may not meet your needs. You can find a trader that has what you are actually looking for in regards to your profile needs and from there you can manage a swap of assets.

Knowing Where To Trade

While the trading account or profile that you have for stock and share trading is important, it is actually moot if you do not know where to actually trade your assets. There are countless websites available today for people just like you that are looking to unload stocks and or shares of company and product that they do not want. This is not to say that the product or share is not worth the money, it could be as simple as not fitting into a personal plan. You too have a plan and if you do not, you would be best served to develop one for the sake of your portfolio.