16th

June 2018 Issue - 304

સેન્સેક્સ-નિફ્ટીમ ાં િજીો સધુ રો, હલે્થકેર અિે ટેકિોલોજી વેસસ પણ સધુyi< ળૈશ્વિક ેરફજારોમ ાં શ્વમક્સ ટે્રન્ડ, એપઆઇઆઇન ાં ઓપોડડિંગ અને નફલ તેજીળ લ ન ાં પ્રોપીટ બ ડકિંગ રહતે ાં સેન્સેક્સ ઇન્ટ્ર -ડે 255 ોઇન્ટની ળધઘટન અંતે 22.32 ોઇન્ટન નોશ્વમન સ ધ ર સ થે 35622.14 ોઇન્ટ ફાંધ રહ્યો હતો. આજનો ડદળસ મ ત્ર આઇટી, ટેકનોોજી અને હલે્થકેર ેસસનો રહ્યો હોળ ન ાં જોળ મળ્ ાં હત ાં. ફ કીન ક ઉન્ટસસ ઉર ળણ સ સ્ત રહ્ ાં હત ાં. શ્વનફ્ટી-50 ણ 10817.70 ોઇન્ટન મથ લે 9.65 ોઇન્ટ સ ધરી ફાંધ રહ્યો હતો.

અન્ય મેજર કરન્સી ૈકી ઉન્ડ, ્ રો અને યેન ણ રૂશ્વય સ મે મજબતૂ રહ્ય હત . અમેરીક એ ચીન ઉર 50 અફજ ડોરન નળ ટેડરફ્સ ચ ઇનીસ આય ત ઉર ઝીંક્ય છે. ફીજીતરપ ્ રોશ્વયન સેન્ટ્ર ફેન્કે વ્ય જદરમ ાં ળધ રો કયો છે. તો ફેન્ક ઓપ જા ને ળધ એકળ ર વ્ય જદર યથ ળત જાલળી ર ખ્યો છે. તેન

ક રણે ્ રો અને એશ્વય ઇ ેરફજારોમ ાં શ્વમક્સ ટે્રન્ડ રહ્યો છે. તેની ણ મ કેટ સેન્ન્ટમેન્ટ ઉર નક ર ત્મક અસર રહી હતી.

TCS 2.75% અિે IT ઇન્ડેક્સ 2.24% ઊછળી ટોચ

ટીસીએસન ફોડે ેરદીઠ રૂ. 2100ની ડકિંમતે 7.61 કરોડ ેસસ ફ યફેક કરળ ની માંજૂરી આળ ન ગે ટીસીએસનો ેર આજે રૂ. 49.20 (2.75 ટક ) ઊછલી રૂ. 1841.45ની સ ટીએ ફાંધ રહ્યો તે ળેૂ ઇન્ટ્ર -ડે રૂ. 1849ની ઐશ્વતહ શ્વસક ટોચે આંફી ગયો હતો. આજન ઉછ લ ન ગે કાંનીન ાં મ કેટકે રૂ. 18836.98 કરોડની વદૃ્ધિ સ થે રૂ. 7.05 ખ કરોડની સ ટીએ હોંચ્ ાં છે. આ સ થે રૂ. 7 ખ કરોડથી ળધ મ કેટકે ધર ળતી દેની પ્રથમ કાંની ણ ફની છે. ફીજી તરપ પોરેક્સ મ કેટમ ાં ડોર સ મે રૂશ્વયો 39 ૈસ ન કડ ક સ થે રૂ. 68ની સ યકોોજજક સ ટી ક્રોસ કરી રૂ. 68.01 ફાંધ રહ્યો હતો.

gyi s¼tihmi> Nifty Api[T :-

uprmi> 10893.25 an[ n)cimi> 10755.40 ni[ Biv ji[vi mÇyi[ hti[.

aigli s¼tihmi> Nifty Api[T:

jyi> s&F) 10,695 n)c[ close nh)> aip[ Ryi> s&F) GTiD[ Kr)d) ji[vi mL[ an[ uprmi> 10,900 upr close aipti 11,111 s&F) ni[ Biv aiv) Sk[. ji[

10,695 n)c[ close aip[ ti[ 10,540 Y) 10,400 s&F) ni[ Biv aiv) Sk[.

aigli s¼tihmi> Banknifty Api[T:

n)cimi> 26,200 ni[ mjb&t support C[. ji[ ai l[vl n)c[ close aipti 26,000 Y) 25,750 s&F) ni[ Biv aiv) Sk[, uprmi> 26,750 n&> mjb&t

resistance C[ ai l[vl pr close nh) aip[ Ryi> s&F) uCiL[ v[cvil) ji[vi mL[ an[ 26,750 upr close aipti 27200 s&F) ni[ Biv aiv) Sk[.

NIFTY WEEKLY CHART BANKNIFTY WEEKLY CHART

COPPER WEEKLY CHART

COPPER:- :- jyi> s&F) 469 upr close C[ Ryi> s&F) GTiD[ Kr)d) j ji[vi mL[ uprmi> 500 Y) 513 ni[ Biv aiv)

Sk[.

CRUDE OIL :- uCiL[ 4565 Y) 4600 n) r[ºjmi> v[ciN krv&> 4636 ni[ sl riKvi[ an[ n)cimi>

4385 Y) 4225 ni[ Biv ji[vi mL[.

CRUDE OILWEEKLY CHART

SILVER:- GTiD[ 39,000 ni sl Y) j Kr)d) kr)

Skiy an[ uprmi> 41,370 upr close aipti

42,300 Y) 44,000 s&F) ni[ Biv aiv) Sk[.

GOLD:- uprmi> 31,550 n&> mjb&t

resistance C[. jyi> s&F) ai l[vl pr

close nh) aip[ Ryi> s&F) v[cvil) ji[vi

mL[ an[ ji[ 31,550 upr close aip[

ti[ 32,000 s&F) ni[ Biv aiv) Sk[.

NATURALGAS:- 205 n&> mjb&t

resistance C[. ji[ ai l[vl cross nh)

kr[ ti[ profit booking ji[vi mL[ an[

n)cimi> GTiD[ 187 ni sl Y) Kr)d) krv);

uprmi> uCiLi[ ji[vi mL[.ji[ 205 cross

kr[ ti[ Kr)d) kr) Skiy uprmi> 215 Y)

223 s&F) ni[ Biv ji[vi mL[.

GOLD WEEKLY CHART

SILVER WEEKLY CHART

NATURALGAS WEEKLY CHART

USDINR: : uCiL[ 68.33 Y) 68.50 n) r[ºjmi> v[ciN kr) Skiy 68.60 ni[

sl riKvi[. n)cimi> 67.69 Y) 67.17 ni[ Biv aiv) Sk[, ji[ 68.60 pr close

aip[ ti[ 69.40 Y) 70.50 s&F) ni[ Biv aiv) Sk[.

GBPINR: : GTiD[ 88.80 ni sl Y) Kr)d) kr) Skiy an[ uprmi> 91.32 Y) 91.70 ni[ Biv aiv) Sk[, 91.70 n) r[ºjmi> v[ciN kr) Skiy 92.05 ni[ sl

riKvi[ n)cimi> 90.00 ni[ Biv ji[vi mL>[

USDINR CHART

GBPINR CHART

EURINR: : uCiL[ 80.50 n) r[ºjmi> v[ciN krv& 81.24 ni sl Y) v[ciN kr) Skiy n)cimi> 78.50 Y) 77.50 ni[ Biv ji[vi mL[.

EURINR CHART

JPYINR: 60.73 ni[ mjb&t support C.[ ji[ ai l[vl n)c[ close aip[ ti[ 60.00 ni[ Biv aiv) Sk[ an[ GTiD[ 60.73 ni sl Y) Kr)d) krv) uprmi>

61.50 s&F) ni[ Biv aiv) Sk[.

JPYINR CHART

DB Corp Buy-back

DB Corp Ltd is a leading media conglomerate with strong focus on the fast growing tier II and III

cities. It publishes 7 newspapers with Dainik Bhaskar 40 editions, Divya Bhaskar 7 editions, & Dainik

Divya Marathi 7 editions, ~208 sub editions in 4 languages (Hindi, Gujarati, Marathi and English), 3

magazines, 30 radio stations and 4 online properties.

Apart from print segment, the company is also present in radio and digital segments. In radio, it

operates through its brand „MY FM 94.3‟. DBCL also has presence in the online news portal ‐

dainikbhaskar.com, divyabhaskar.com and dailybhaskar.com.

The stock is currently trading around (CMP 260) 14.7 times trailing twelve months earnings. The

brokerages have revised their target price of the stock in the range of 280-360.

DB Corp’s proposed buy-back offer

The Board of Directors of the Company at their meeting held on 26th May‟18 approved the proposal

of buyback for an aggregate amount not exceeding Rs. 312.80 crore at maximum price of Rs.340 per equity

share from all existing shareholders of the Company on the record date to be determined by Board, on a

proportionate basis through “Tender Offer” route.

At the maximum Buyback Price of Rs. 340/- per equity share and for the Buyback Size not exceeding

Rs. 312.80 crore, the indicative number of Equity Shares that can be bought back would be 92,00,000 shares

representing 5% of the total issued and paid up equity capital of the Company.

The above proposed buy-back is subject to approval of the shareholders of the company.

Rationale behind this opportunity

It is important to note here that Buy-Back through tender offer route is similar to Open Offer in many

respects as against Buy-back through open market purchases.

In buy-back through tender offer route all the shareholders can participate (including the promoters)

and the buy-back is on proportionate basis from all the shareholders of the company.

So, in the above case, theoretically only 5 shares out of 100 shares shall be accepted at 340/- per share

if all the shareholders participate in the tender offer and 95 shares will be returned back.

However, there are a few important regulations regarding buy-back through tender offer route which

increases the acceptance ratio to ~50% + in the case of DB Corp. They are:

15% of the number of Equity Shares which the Company proposes to buyback or number of Equity

Shares entitled as per the shareholding of small shareholders, whichever is higher, shall be reserved for the

small shareholders as part of this Buyback.

Small Shareholder is a shareholder who holds equity shares having market value, on the basis of

closing price on recognized exchanges as on Record Date of buy-back, of not more than Rs 200,000 (2

lakhs).

Applying above regulations in the case of DB Corp

As the company has proposed to buy-back 92 lakh shares, 15% of the same will be reserved for small

shareholders i.e. 13.8 lakh shares.

In case of DB Corp, shareholders with less than 5000 shares held about ~12.83 lakh shares in the

company (based on 31st Mar‟17 figure of Annual Report), so theoretically the acceptance in small

shareholder category should be ~100% as the small shareholder will be the one with less than ~800 shares

(based on CMP).

However, between Mar‟16 and Mar‟17, the total number of shares below 5000 almost doubled and

assuming that something similar happened between Mar‟17 and Mar‟18, even then the acceptance ration

will be more than 50%.

Some conservative estimates

As mentioned above, technically there should be 100% acceptance (assuming no major change in

shareholding pattern since 31st Mar‟17) in small shareholders category; however let‟s work with some

conservative estimates:

Cost of 700 shares – 260 * 700 = 182,000

Different scenarios

Cost of remaining 420 shares on 40% acceptance @ 340 – Rs 207

Cost of remaining 350 shares on 50% acceptance @ 340 – Rs 180

Cost of remaining 280 shares on 60% acceptance @ 340 – Rs 140

So, as we can see above, even assuming conservative acceptance ratio of 40-50%, the cost for

remaining shares will be in the range of Rs 180-210 which is 20-30% lower than CMP.

Thus, the downside seems limited at conservative 50% acceptance while there‟s high probability of

acceptance being greater than 50%.

The time line for this opportunity is around 3-4 months and therefore in the interim if the market

corrects in major way the exit price for unaccepted shares will get impacted.

All the LOVING wishes for you to bring

Much HAPPINESS your way. EID greetings

To you & your Family