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Monthly Archives: June 2011

25 Paise Coin Out Of Circulation : Char Aana Ka Gaya Zamana

Today, 29-June, is the last day that ayone will accept the 25 paise coin. The mint has not produced this coin since 2002, and since 2005 no shopkeeper accepted this coin. But today, officially, this coin will be out of circulation.

If at all you have amassed lose change over a period of time, then rush to the nearest public sector bank and redeem it. I am highly doubtful about a private sector banking accepting this coin, else it will be their headache to return the same to RBI and get crisp notes in exchange.

The iconic 25 paise, that once used to bring joy to my face about as many years ago, is of no worth today. The jingling of coins in the pocket has become out of fashion in this day of plastic money. Anyways, a final adieu to the char aana.

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Posted by on June 29, 2011 in general

 

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Shriram Transport Finance NCD 2011

The liquidity in the market is decreasing quarter after quarter. Hence, companies are coming up with bonds and non-convertible debentures(NCD) to raise money. After applying for SBI bonds and PFC Infrastructure bonds, I am again contemplating investing in this. Here I present more details as per my research:

  1. Two options to begin with : Option 1 –> 3 years & Option 2 –> 5 years
  2. For Option 1 : Investment below 5 lakhs, Interest = 11.35%
  3. For Option 2 : Investment below 5 lakhs, Interest = 11.60%
  4. For Option 1 : Investment above 5 lakhs, Interest = 11.10%
  5. e. For Option 2 : Investment above 5 lakhs, Interest = 11.30%

Some important things to note:

a. If the NCD is in demat form then no TDS is deducted, else TDS will be deducted at the time of encashing/redemption

b. Each NCD is valued at Rs.1000/-

c. Minimum invetsment amount is Rs.10000/- (10 NCDs will be issued)

d. Put and call options available. And NCDs can be traded using demat and trading account

e. NRI’s cannot apply

Considering the above, and the good interest rate in the offering, an amount of Rs.25000/- and above would be a good investment option. And this can be a route preferred over traditional FDs.

Issue opens on 27th June and closes on 9th July. Since its first-come-first-serve basis, better earlier than later. If interest rates fall further, the value of the NCD will rise further.

Update-1: Indiabulls has the option of applying for this NCD online. Maybe other demat/trading accounts also have this facility. Plz check once before running after the paper based form.

Update-2: TODAY IS THE LAST DAY TO APPLY. DUE TO OVERSUBSCRIPTION, LAST DATE HAS BEEN PREPONED TO 29-June.

Update-3: My amount was refunded although I had applied on the first day. I guess retail investors were not given much consideration.

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TGIF in Cinepolis [Bannerghatta], Bangalore

 
Couple of weeks back we ventured into Meenaxi Mall in Bannerghatta to watch Kungfu Panda 2 in Cinepolis. After the movie got over, we ambled into TGIF. The ambience was beautifully vibrant. At the entrance was a model of Harley-Davidson, the American synbol of a good life. The walls of the restaurant was covered with posters of Marilyn Monroe, Beatles, Elvis and other hollywood figures. Then there were some sporting paraphernalia, out on display.  

Here are more details:

Location : On Bannerghatta Road, a little ahead of IIM – Bangalore.

Ambience: Most tables were 2 or 4 seaters, just as they are in the US. And just a few tables of 6/8 that are dedicated to friends and family. All seating in red, typical TGIF.

Cuisine : American/Mexican

Menu : While I cannot list the entire menu, all I can say is that the menu is very identical to the one in US. They have the same potato skins, chicken ranchero, chicken fajita, quesedilia, chicken wings, etc. The drinks are different, where we have good options of wine, scotch, rum, gin etc. Any imported beer costs Rs.350+

Cost : A meal for two will cost about Rs.900/- [minus drinks].

We ordered fish and chips, chicken fajita and baked beans and a chicken ranchero. The grilled fish was mouth-watering and the fajita was very tasty. Adding coke to the food is always a good idea, helps digest faster.

Waiting time is a little high as the staff is inexperienced. Also, you cannot have such unhealthy food frequently; just binge once in a while.

The multiplex has a lot of options like Oye Amritsar and the huge food court which houses cuisines of all sorts. TGIF will have to work on their price if they wish to make a dent in the sales of othet eat-outs. All said and done, I will definitely visit them every now and then.

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Posted by on June 17, 2011 in lifestyle

 

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My Own ‘Capital Protection Oriented Fund’

Last year, in March’ 2010, I made the mistake of creating a FD for Rs.100000/-. I did not have time to look into other investment options and blindly went for this option through my ICICI a/c. What was worse is that, the interest rate offered, back then, was 7%. The only clever thing I did was that, I made the FD for 390 days only. So, at the end of the term, sometime in April’ 2011, an amount of Rs.106500/- was credited to my a/c, after deducting TDS etc.

This time around, I had the same option of renewing that FD at about 9.25%; but I decided against it. I made up my mind to create a ‘Capital Protection Oriented Fund’ of my own and test its performance for a period of 1 year. I know it sounds silly, but I did. Its a bit experimental, but all I wish to achieve from it is growth at 12-14%. Here’s what my fund now consists of:

a. I made a FD of Rs.40000/- at 8.5% for 390 days only. The interest generated is Rs.3400/-. I could have got a higher interest, but I would have to go for a longer term.

b. I put another Rs.10000/- in a NFO called ‘Sundaram Equity Plus’, so I now have 1000 units of it. The reason for investing in this NFO was that, it balanced out the equities with gold; 5 – 35% to be placed in gold and 65 – 95% in equity.

c. The remaining Rs.50000/- I put it in the stock market in the following scrips in a balanced portfolio:

i. Jaypee Infratech – 100 nos @ 52.15

ii. Punj Lloyd – 75 nos @ 56.5

iii. IRB Infra – 50 nos @ 158.38

iv. Next Mediaworks(Mid-day Multimedia) – 50 nos @ 5.75 [penny stock purchased so I don’t leave out a single paisa]

v. Zee News – 25 nos @ 11.05 [penny stock purchased so I don’t leave out a single paisa]

vi. Rajesh Exports – 50 nos @ 86.7

vii. Reliance Com – 50 nos @ 82

viii. Vijaya Bank – 50 nos @ 69.6

ix. Manappuram – 75 nos @ 57.5

x. IPO Muthoot Finance – 40 nos @ 175 [had applied for more, allotted 40]

xi. FPO Power Finance – 43 @ 192.85 [5% discount to retail investor]

I shall keep updating this as and when I do a buy/sell. Suggestions/comments welcome!

This post was also published on Yahoo Network

Update 1 in Feb-2012: I sold Rajesh Exports @ 136.15, giving me a profit of 2472.05.  I should have sold it earlier, when it had touched a high of 145, but I missed the opportunity as I wasn’t able to track my portfolio during that period. Anyways, I re-invested the amount in buying the following:

i. Manappuram – 45 nos @ 45.15

ii. Jp Power – 45 nos @ 45.35

iii. Vijaya Bank – 50 nos @ 57.75

Update 2 in May-2012: The FD of Rs.40000/- matured and I decided that this time around I would not renew the FD for that high a value. Too much money in debt instrument isn’t a good idea. So, I created a new FD for Rs.30000/- at 9.25% interest. This FD matures in June’13 and the maturity amount is Rs32974/- . The remaining proceed of Rs13400/-, I re-invested it in the following:

i. Adani Power – 50 nos @ 50.75

ii. IRB Infra – 25 nos @ 111.15

iii. JP Associates – 45 nos @ 59.4

iv. Manappuram Fin – 25 nos @ 23.65

v. Muthoot Fin – 20 nos @ 131.5

vi. Power Fin – 17 nos @ 140.25

 

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Ramdev’s Babagiri : Mahabharat at Ramlila Maidan

The pubs and bars in Delhi have added a new cocktail in their menu, its called the Midnight Swoop or Late-night Swoop. As the name suggests, its for people who love to party out late in the night, maybe to see a new dawn the next morning. The drink is pretty effective and as you gulp it down the kick you get out of it is just like being ‘lathi charged‘. If thats not enough, after downing 2-3 of these drinks, you may be left crying as tears roll down your eyes and everything seems hazy; as if you have been tear-gassed. The effect of the drink stays with your for long and the hangover can be damaging. You maybe found in women’s garment the next morning; so be very careful before you binge on this Midnight Swoop. The best person to review the above new cocktail would be Baba Ramdev.

Jokes aside, what happened at wee hours of 5th June should not be happening in a mature democracy as ours. If we claim to be the largest democracy but the state police behaves in an autocratic fashion then how are we different from Egypt and Yemen! Is this the kind of image that we would like to send out to other countries who are fighting for democracy!

Having said the above, let me quickly add that Ramdev is at as much fault as the Govt is. He was playing hardball with the Govt and he paid for that. He stayed in a star hotel, then tried to strike a deal with the Govt, then backed out and tried to arm-twist the Govt. What the Govt did was even more juvenile. They threw 8 tear-gas bombs to disperse the crowd and then took away Ramdev to an undisclosed location; dropped him at Haridwar. I am not sure about the veracity of the statements like people were beaten up and other instances of brute force being used on civilians. But yet, the very nature of the act puts the Govt in the dock.

We have many burning issues in the country, but that does not mean we hold the Govt to ransom. Naxalism is a big problem, but where was Ramdev’s babagiri when 78 crpf men were blown away in Dantewada? Did he go on a fast and urge the Govt to take action. No! Were was he when Mumbai attacks took place? Did he request the PM and Home Ministry to take action.

Corruption has just become a propaganda to launch himself into the political arena. Its a tool that he is leveraging for political gains. In the heat of all this, Baba has forgotten that the main issue is corruption and not Ramdev. Being a TV celebrity does not give anyone the license to run amok holding a black flag. The credibility of the flag bearer decides the criticality of the issue. If NRN or Hazare speak out against corruption then it makes sense and drives civil society to join the movement. But if ‘dhongi’ babas like Ramdev or Reddy brothers or Kalmadi/Raja take up the issue of corruption, then its farcical. Laughable at best, detestable at worst. Ramdev must first clear the skeletons in his cupboard, before taking up the issue of corruption. He should account for the private choppers that he possesses, the ownership of the lands where he has his ashrams, the island that was gifted to him and all the wealth that be gets by way of charity.

On the other hand, Govt must explain their action against Ramdev. I am sure the issue could have been handled in a better way and a more humane manner. If at all the Govt had any proofs about Ramdev’s illegal activities, they should have brought that out and embarrassed him. Instead, they took direct action and made a hero out of Ramdev. It has galvanised the opposition and the Ramdev followers.

Ramdev maybe forgotten in the long run, but Govt’s actions will neither be forgiven nor forgotten. A political ‘mahabharat’ is inevitable at this point. But there are learnings for all of us: Govt, Baba and us. The learning for Govt is not to act in a hostile manner; swift action is not always the correct thing to do. Ramdev’s learning must be to try and understand that bringing black money back to India and eradicating corruption is not a 7 day task and cannot be done by the Govt alone. And the lesson for us is that corruption breeds because some of us are ready to pay a price for getting things done on priority. But the bigger lesson is, when we stand up for a cause we should know behind whom we are standing.

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Posted by on June 6, 2011 in indian politics