GauravBlog Logo

A Lion’s eye on the Bulls and Bears

“In India, companies may fall sick, but promoters rarely do!”

Gaurav's Blog


November 2012

FCH now Capital First zooms to Rs 225 + with Warburg Pincus Group as new controlling shareholders at Rs 162 and Biyani out !

FCH  now Capital First zooms to Rs 225 + with Warburg Pincus Group as new controlling shareholders at Rs 162 and Biyani out!

Had hinted just ten days ago on the blog to keep a watch

Future Capital Holdings is now Capital First and it zooms to Rs 190 today as Warburg Pincus & Group acquire it from the Biyani Group and other Shareholders at Rs 162!

Monday, November 19th, 2012

Now don’t ask me “Now What!?

2013 should be a good year

Cheers !

Re-Glimpsed Jain Seer Srimad Rajchandra’s Life through a wonderful Gujarati play ‘Apurva Avsar’

Finally caught up this evening, after five years since it was first staged,with the wonderful Gujarati Play ‘Apurva Avsar’~Re-Glimpsed the Jain Seer’s Life Srimad Rajchandra’s Life through this ~he was an evolved soul born in November 1867 and passed away in April 1901 at the  young age of 33~even was a great influence on Mahatma Gandhi and is widely believed to be his spiritual mentor who guided him to the concept of Ahimsa or Non Violence

My late mother had accepted him as her ‘Guru’ and we have been raised on the beautiful expressions of this great seer ~ He wrote the famous verses of ‘Atma Siddhi’ in one straight inspired stretch of  just one and a half hour in a small room in Nadiad with a lamp being held up for him  ~ I have been fortunate to visit this room more than once and actually recite the full ‘Atma Siddhi’ for 45 minutes to an hour there~ the positive vibrations are simply heavenly ~ every evening the diyas and agarbatti incense sticks are lit at our House and Prayers  are offered in Dev Vandan

Apurva Avsar  is directed by Manoj Shah with Dharmendra Gohil portraying Srimad Rajchandra really well and Pulkit Solanki and  Pratik Gandhi essaying multiple characters in Srimadji’s Life ,some of them brilliantly

'Apurva Avsar' ~ A Play on the Life of Jain Seer Srimad Rajchandra ~ Scene depicts him writing his famous 'Atmasiddhi'A wonderful Play 'Apurva Avsar' on the Life of Jain Seer Srimad Rajchandra enacted by three passionate Actors


A wonderful Play 'Apurva Avsar' on the Life of Jain Seer Srimad Rajchandra enacted by three passionate Actors


Shrimad Rajchandra was never lost for an answer to Life’s searching Questions,though he searched  deep within for answers to Self and Reason for Existence

Some of his expressions,beliefs and momentous events …..

  • He believed that one could do both ~ lead a Life of a Businessman as well as adopt the Spiritual Path of  ‘Atma Gyan’ 
  • Scriptures can only be your teacher and companion for part of the way beyond which only your own experience will guide you
  • If your Mind is Restless,read noble books,think noble thoughts or simply count Prayer Beads Mala 
  • Sometimes we ourselves do not realize what we’re wearing ~ when Gandhiji asked him why his topi was laced with leather inside when he preached that one should definitely never wear Leather on person
  • Gave up Practicing Astrology and showing off his Pnuemonic Powers as it was not of any use and energy and time consuming and  could even be misused for commercial gains and also distracted away from the spiritual path of meditation and self realisation ~ This was after December 1886 when Srimad Rajchandraji was invited and showed of his pnuemonic powers in a public display at Framjee Cawasji Hall in Mumbai ~ he subsequently received invitations to travel overseas,which he never even considered, to show of these incredible powers there and many wondered and wanted to initiate sponsored research on why only a Hindu was able to do this and not a Parsi,Christian or a Muslim !
  • He was able to see into the Future and the Past
  • He advocated accepting the Hindu Gods Noble Messages without analysing them too much to be happy
  • “It’s only a Rat not a Snake !” he laughed at Gandhiji when the latter jumped from where he was sitting ~ “So if it was a Snake,Should I have killed it lest it bit me !” asked Gandhiji ~ Srimad Rajchandraji replied ”  This would be Hinsa and you would be committing a Crime by Killing ~ let it bite ~ it’s only the Body ~ your soul can never be bitten !”
  • Believed that being a Brahmachari was more conducive to following a spiritual discovery path but was forced by family into marrying
  • He once went to collect a debt from a business client along with a copy of the debtors accounts to show that his firm was owed Rs 60000  ~ The Client was deeply worried as he had suffered a huge business loss but showed honest intent to repay  even if he had to sell all his assets including property but begged for more time ~ Srimad Rajchandra told him ” Is this Piece of Accounts Paper worrying you so much  ? ”  and then he tears it up implying that the Debt is forgiven and he owes nothing !
  • Once a business associate inquires of Srimad Rajchandraji whether he could obtain ‘Moksh’ ~ In a jocular mood,Srimad Rajchandraji says he can show him the path to instant ‘Moksh’ and asks him to hold his breath till he attains it ! ~ Needless to say the  rather naive associate after a few seconds gaspingly gives up even trying and realises that ‘Moksh’ was not that easy to obtain !
  • Once a Friend asks Srimadji to come along to watch a Play ~ Instead Srimadji asks him to open the Window and he would show him a Play !~ he keeps asking his friend what does he see outside ~ Friend’s initial excitement turns to agony as he relays what he sees
  • Srimad Rajchandra  believed we are living in a bad age and he could only see ‘Pain & Death’ all around him ~ when he was very young and a village elderly had just passed away,he questioned his grandfather relentlessly as to what is Death and what happens to the Body ~ his grandfather thought he was too young to understand ‘Death’ and tried to feign an answer
  • He never believed he was a  ‘Guru’ to many and said he will never be so ~ though in reality he was a Guru and yet is to many
  • read more

    Research Reveals that Almonds Boost Men’s Sex Lives…..Wife’s Laughing & I’m Lost & Livid !

    Wife’s Laughing  😆 and I’m lost ! 😐 and a little livid too !

    That’s because when she accused me of eating a lot of Almonds that she had stocked for making her Chocolates and  I showed her this Times coverage that Almonds Boost Men’s Sex Lives !

    She thinks it’s all “Bull!” & only “Bull Markets can Boost……!”

    ” And I dont think we’re in a Bull Market !’ she adds !

    No Responses Please !

    Mumbai 26/11 ~ A Humble Homage to those who lost their Lives and a Salute to the Spirit of my Great City Mumbai

    Mumbai 26/11 ~ A Humble Homage to those who lost their Lives ,many innocent and many while defending us on those fateful three days of November 2008 when Terror was exported by Sea to Mumbai’s South Shores ~ and a Salute to the Spirit of my Great City Mumbai

    Mumbai 26/11~ Humble Homage & Salute to those who died Defending Us so we could live !

    This early morning at 6.30  am  passed Marine Drive and was inspired to a see a Lovely Tribute Wall at the Police Gymkhana and all in readiness for a Homage Function to start soon

    A Special Prayer goes out to the Hundreds who lost their Lives to the Bullets of the Coward Terrorists ~ No Religion or Holy Cause prescribes Terror and taking of Innocent Lives or Preaches Hatred & Violence ~ These are the evil eruptions of Unholy Minds and Causes  ~ and sadly young minds are brainwashed and indoctrinated with such inhuman thinking

    Do we Preach Gandhi or do we Defend Bose when we face such Evil ! ~ India’s Young Generation wants to know !

    I want to know !

    Hindustan Copper Disinvestment by the Government~ A Farce of an Exercise ! ~ Hey Mr Chidambaram Call of the Issue !

    This Hindustan Copper Disinvestment by the Government~ A Farce of an Exercise !

    The Government is Desperate to Save Face after announcing to appease in September the Disinvestment in 4 Listed PSUs and one unlisted PSU ~ Hindustan Copper was at Rs 269 at the time ~ Yesterday the Floor Price for Part Offer for Sale was decided at Rs 155! causing the Share Price to drop dramatically  by 20% to Rs 213 from an earlier day closing of Rs 266 !

    Congress led UPA plays their Final Ace ! ~ Announces at one Shot pending FDI reforms !

    Friday, September 14th, 2012

    Earlier in March 2012 too the Government had forced LIC and other PSU Banks to bid for ONGC at over Rs 300 ! to bail out that offer  ~ Today ONGC is at Rs 251 !

    ONGC 5% Stake Disinvestment ~ Government’s ‘On The Road’ Campaign with LIC the Sole Listener !

    Saturday, March 3rd, 2012

    This is a Classic Illustration that our Markets remain Inefficient and Share Prices can be controlled and manipulated at will in illiquid Stocks where Floating stock is marginal and insignificant ~ by those who  hold Controlling Equity ~ in this case the Government !

    Valuation Has to be a Fair Guiding Criteria when Pricing any Issue ~ Any Premium or Discount can then be deliberated based on Market Sentiment and Momentum

    So when the Government sets Rs 155 as the Floor Price for Hindustan Copper which is at a steep 42% discount to the Market Price before the announcement  it is confessing to two real issues

    1. It is Desperate to kickstart the Disinvestment Exercise announced in September at any Price !
    2. It is sending out a strong and rather amusing message that the Value of Hindustan Copper is much much less than the Traded Share Price before the Announcement !

    I honestly don’t know whether to cry or laugh here at the Government’s Folly !

    Also for Years I have been staunchly against such a Mode for Disinvestment where the Government is desperate for Funds and is adopting,and at times even boasting of the Disinvestment Route, and selling Family Silver ~ but it’s only going from their One PSU Hand to their Other PSU Hand ! when they direct their controlled PSUs to participate in the Offer For Sale at particular Pricing ! ~ at the same time they keep preaching for Investor Security & Protection in IPO Pricing but when it comes to a PSU IPO they too get greedy for Premium Pricing ~ NHPC  IPO at Rs 36 in August 2009 being a case in Point !

    NHPC IPO at Top End of Rs 36…It’s a tradeoff of your Greed and that of the Government !

    Friday, August 7th, 2009

    So what is the Real Value of Hindustan Copper !? ~ Clearly not Rs 250+ ! ~ Can we be be guided by the Floor Price of Rs 155 then ! ?

    Is the Issue Under Priced or Over Priced !? ~ Why is our Regulator SEBI a mute Spectator on the Pricing Controversy !?

    What’s the Point of even attempting to gauge when even after this Disinvestment exercise the Government will continue to hold 95.59% of the Equity   !  ~ It holds 99.59% currently and is offering 4% or 3.7 cr shares in this frivolous exercise ! ~ it has planned to offer a total of  9.59% to bring down stake to 90-% finally ~ clearly it has not been able to offer the full lot of  8.87 cr shares at the market price of Rs 250+ !  indicating that it was a contrived price on the bourses ! read more

    “Should City Union Bank be retained for 3 Months ex Rights ?” asks Rahul ~ Just became ex rights yesterday and is @ Rs 50 now

    Hi Rahul ~ Your Question is quite interesting and I’m sure over 80000 shareholders of City Union Bank would like to know too !

    On November 12,2012 I had blogged on a surging L & T Finance and it’s stake in CUB

    Yo! L & T Finance Holdings Zooms 12.7 % To Close At Rs 72.40 Today ~ It Holds 4.68% Of City Union Bank (CUB) Which Is Cum Rights Rs 59.75

    “Should you retain CUB ex rights for 3 months?”  is what you ask

    The Answer depends on the Shareholder’s Risk Profile and whether the shareholder is comfortable with a Long Term Outlook on CUB

    Of Course your Question is specific on the time Period ~ 3 Months

    There are  Two Approaches to Consider here and assess their weightage in your decision making to immediately sell or hold CUB ex rights

    1. Immediate to two to three  months ex rights Impact on  Share Price  and  Traded Volumes because of the Rights Issue  ~ There will be some price pressure ex rights
    2. Assets and Earnings Valuation of  CUB and Interesting Shareholding Developments  going into 2013 ~ I will give more weightage to this  

    Rational Thinking  and Maintaining Same Scrip Weightage Exposure in the Portfolio would guide you to adopt a strategy of  replacing existing original CUB holdings with  Cheaper Rights at Rs 20 ~ However the Rights Ratio is only  1: 4 and the Rights Pricing is attractive at Rs 20 and therefore it will not be possible to replace entire original holding as you may not get more shares than entitled even if you do apply for them ~ so you could adopt the strategy of selling 25% of your original holding now ex rights @ Rs 50 knowing you will be getting the same quantity in the Rights at Rs 20 ~ this will serve two objectives ~ Reduce your Holding Cost while maintaining  CUB weightage in your Portfolio 

    The Risk you take here is that the Share Price of CUB actually will move up in 2013 from ex rights Rs 50 levels ~ This brings us to the Assets and Earnings Valuation  Assessment of CUB ~ Ex Right the Book Value drops to Rs 30 +and the FY 13 Projected EPS to Rs 5+ giving us relatives of P/BV of 1.6 and P/E of 10 ~Despite the Pressures on Margins and rising NPAs with such a huge FII Shareholding of over 21% of the Equity as well as L & T Finance  being the largest shareholder holding just under 5% in CUB,my sense is that 2013 will be a very interesting year

    I would take a longer term view and give more weightage to continuing and sustainable valuations and the  interesting  shareholding developments that may take place in 2013 and beyond in CUB and would not sell CUB ex rights ~ Of course this would mean I’m increasing my shareholding in CUB through subscribing for the Rights and therefore also increasing the CUB weightage in my Portfolio

    I suspect what most will do is to sell 1/4 th original holding right away ex rights at Rs 50 and replace these with the Rights Shares at Rs 20 ~ I also noticed heavy buying cum Rights at Rs 60 by those who are playing the Rights Game with  a  Financing and Fixed Return and Stag Mindset !  Their holding cost  will be Rs 52 /share => 4* 60 + 1*20 => 260/5=> Rs 52 ~ Therefore they may sell  when CUB moves to just Rs 55 and beyond to capture their  5 % absolute Interest Returns in the next  two to three months ~ Therefore in the Short Term there will be some Pressure on the CUB  Share Price ~ but will it drop towards Rs 40 ! ? I think one should take the risk it will not given the Valuations and Shareholding Situations that I’ve specified above read more

    Scroll to Top