Indiabulls Housing Finance Limited (IHFL) 9.15% NCDs – Basis of Allotment & Allotment Status

This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at skukreja@investitude.co.in

Indiabulls Housing Finance Limited (IHFL) has announced the basis of allotment for its non-convertible debentures (NCDs), which opened on September 15th and closed on the second day itself on September 16th.

Here is the Basis of Allotment among all categories of investors:

picture1

Category IV (Retail Individual Investors Portion) – In the case of allotment in Category IV, 12,569 valid applications for 51,18,857 NCDs received on September 15, 2016 and September 16, 2016 have been allotted 51,18,857 NCDs (100%), against the allocated bucket of 2.10 crore NCDs as per the prospectus. The unsubscribed portion of 1,58,81,143 NCDs spilled over to Category I.

Category III (High Net Worth Individual Investors Portion) – In the case of allotment in Category III, 78 valid applications for 2,08,08,700 NCDs received on September 15, 2016 and September 16, 2016 have been allotted 2,08,08,700 NCDs (100%), against the allocated bucket of 2.10 crore NCDs as per the prospectus. The unsubscribed portion of 1,91,300 NCDs spilled over to Category I.

Category II (Corporates Portion) – In the case of allotment in Category II, 16 valid applications for 47,800 NCDs received on September 15, 2016 and September 16, 2016 have been allotted 47,800 NCDs (100%), against the allocated bucket of 1.40 crore NCDs as per the prospectus. The unsubscribed portion of 1,39,52,200 NCDs spilled over to Category I.

Category I (Qualified Institutional Investors Portion) – In the case of allotment in Category I, 14 valid applications for 4,56,50,000 NCDs received on September 15, 2016 have been allotted 4,40,24,643 NCDs (96.44%), against the allocated bucket of 1.40 crore NCDs as per the prospectus. Excess demand for 3,00,24,643 NCDs has been satisfied with unsubscribed portions from Category II, III and IV.

If you want to check the allotment status, here is the link of Link Intime – http://linkintime.co.in/bonds/SelectClient.aspx?mode=allot

Link Intime is the Registrar for this issue and if you have any query related to your application, allotment process or refund of application money, you can contact them at 022 – 2594 6970 or write a mail at bonds.helpdesk@linkintime.co.in

HPL Electric & Power Limited IPO @ Rs. 175-202 – Subscribe or Not?

This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at skukreja@investitude.co.in

Despite being a big issue, ICICI Prudential Life IPO sailed through quite comfortably yesterday. Post this IPO, ICICI Bank has been able to successfully raise Rs. 6,057 crore from its stake sale in ICICI Pru Life. Not only it got subscribed comfortably, the issue got oversubscription to the tune of 10.48 times its issue size. That is the kind of liquidity the equity and debt markets are dealing with these days.

Spotting such an opportunity to comfortably raise money from the investors, HPL Electric & Power Limited is launching its IPO for subscription from today. The company plans to raise Rs. 310 crore from its share sale to the prospective investors. The issue would remain open for three working days and you will have time till 5 p.m. on 26th of September to invest in this IPO.

Price Band & Size of the Issue –  HPL Electric has fixed its price band to be between Rs. 175-202 per share and no discount will be given to the retail investors. With this price band, HPL targets to raise Rs. 361 crore in this issue and the stake to be offloaded would depend on the allotment price fixed by the management after the issue gets closed.

If the issue gets a good response from the investors and the company fixes its allotment price to be Rs. 202 a share, the company will issue 1,78,71,287 shares to the investors. However, if the company decides to fix the allotment price at Rs. 175 due to a poor response or any other reason, in that case it will have to issue 2,06,28,571 shares to raise Rs. 361 crore.

Objective of the Issue – HPL currently carries an outstanding debt of around Rs. 590 crore and it plans to pay off around Rs. 130 crore debt out of the issue proceeds. A further Rs. 180 crore HPL plans to use for the working capital purposes.

Retail Allocation – 35% of the issue size has been reserved for the retail individual investors (RIIs) i.e. 62.55 lakh shares out of 1.79 crore shares or 72.2 lakh shares out of 2.06 crore shares. 15% of the issue is reserved for the non-institutional investors and the remaining 50% shares will be allocated to the qualified institutional buyers (QIBs).

Bid Lot Size & Minimum Investment – Minimum bid quantity of this issue has been fixed at 70 shares and in the multiples of 70 shares thereafter. That would result in a minimum investment of Rs. 12,250 at the lower end of the price band and Rs. 14,140 at the upper end of the price band.

Maximum Investment – Individual investors investing up to Rs. 2 lakh are categorised as retail individual investors (RIIs). So, to be categorised as a retail investor, you can apply for a maximum of 14 lots of 70 shares @ Rs. 202 i.e. a maximum investment of Rs. 1,97,960. However, at Rs. 175 per share, you can apply for 16 lots of 70 shares, thus making it Rs. 1,96,000. Investors opting for the “Cut-Off Price” option would be able to apply for a maximum of 14 lots of 70 shares.

Listing – HPL will get its shares listed on both the stock exchanges i.e. National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) within 6 working days after the issue gets closed on 26th September. October 4th is the tentative date for its listing.

Here is the list of all the important dates relevant for this issue:

Issue Opening Date – September 22, 2016

Issue Closing Date – September 26, 2016

Finalisation of Basis of Allotment – On or about September 29, 2016

Initiation of Refunds – On or about September 30, 2016

Credit of equity shares to investors’ demat accounts – On or about October 3, 2016

Commencement of Trading on the NSE/BSE – On or about October 4, 2016

Financials of HPL Electric & Power Limited

picture2

Note: Figures are in Rs. Crore, except per share data & percentage figures

Should you subscribe to HPL Electric & Power IPO?

HPL reported a growth of 6.60% in its revenues during FY 2015-16, up from Rs. 1,051.85 crore to 1,121.25 crore. It recorded a 12.24% jump in its EBITDA, from Rs. 130.08 crore to Rs. 146 crore and 5.78% growth in its profit after tax (net profit), from Rs. 34.62 crore to Rs. 36.62 crore. Looking at the kind of growth it has been reporting in the past few years, it is not up to my satisfaction and doesn’t push me to invest in this company.

Moreover, HPL recorded an EPS of Rs. 7.89 during the last financial year. At Rs. 202, the company would trade at a P/E ratio of 25.60 its trailing 12 month earnings. However, in a falling interest rate environment, with a reduced outstanding debt, and its 97.15% subsidiary, Himachal Energy’s financials getting incorporated, HPL should be able to generate an EPS in the range of Rs. 9.5-10. This would make HPL trade at a slightly comfortable P/E ratio of around 20-21 times its FY17 EPS.

Moreover, this industry in which HPL is operating is getting extremely competitive and requires a dynamic management to take on some of the disruptive forces and take care of the technological changes. Considering its financials and other valuation parameters, the issue seems expensive and unattractive to me in the present scenario.

However, post this IPO and incorporating Himachal Energy’s financials with itself, HPL will have an opportunity to make its balance sheet look less stretched and also turn around the business dynamics in its favour. How efficiently it is implemented would be worth a wait before one should make an investment with the company.

Despite its estimated valuations to be slightly reasonable, I would recommend the investors to avoid this IPO at this point in time and wait for at least 2-3 quarters more for the company to deliver an improved financial performance.

ICICI Prudential Life Insurance IPO @ Rs. 300-334 – Subscribe or Not?

This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at skukreja@investitude.co.in

As the sentiment in the stock market has improved considerably, we are seeing a flood of new initial public offers (IPOs) getting launched. These issues, big or small, are getting lapped up in huge numbers. No IPO has been able to satisfy the appetite of retail investors fully and they are getting left disappointed with no allotment or only one lot getting allotted.

To tap these favourable market conditions, ICICI Bank has decided to sell its 12.63% stake in ICICI Prudential Life Insurance Co. Ltd. and get it listed on the stock exchanges. ICICI Bank will sell around 18.13 crore shares in ICICI Pru Life through its initial public offer (IPO) at an expected price of Rs. 334, thus amounting to Rs. 6,057 crore. This will be the biggest IPO since Coal India’s Rs. 15,200 crore IPO in October 2010 and as it is a big issue, one can expect a better allotment this time around.

But, how good is the company, how is it valued and if it is worth investing in this big IPO either for long term wealth creation or short term quick gains? Before we come to any conclusions, let us quickly take a look at its salient features first.

Price Band – ICICI Life has fixed its price band to be between Rs. 300-334 per share and no discount will be given to the retail investors or ICICI Bank’s existing shareholders.

Size & Objective of the Issue – As mentioned above, ICICI Bank will sell its 12.63% stake in ICICI Life i.e. 18,13,41,058 shares at a price between Rs. 300 to 334 a share. At the upper cap of this price band, ICICI Life will be able to raise Rs. 6,057  crore from this issue. As it is an OFS and no fresh shares will be issued, ICICI Life will not get any proceeds from this IPO.

Retail Allocation – 35% of the issue size, after 10% reservation for ICICI Bank shareholders, is reserved for the retail individual investors (RIIs) i.e. 5.71 crore shares out of 16.32 crore shares, 15% is reserved for the non-institutional investors and the remaining 50% shares will be allocated to the qualified institutional buyers (QIBs).

Reservations for ICICI Bank’s Shareholders – ICICI Life has reserved 10% of its shares on offer i.e. approximately 1.81 crore shares for the existing shareholders of ICICI Bank. Such shareholders will be allotted ICICI Life shares out of such reserved 1.81 crore shares.

No Discount for Retail Investors or ICICI Bank Shareholders – Though there is 35% and 10% reservation for the retail investors and ICICI Bank shareholders respectively, no discount will be given to any of such categories of investors.

Anchor Investors – Out of 16.32 crore net issue size, ICICI Life has already roped in some big anchor investors for 30% of its net issue size i.e. 48.96 lakh shares. These investors have agreed to pay Rs. 334 for their subscription, thus amounting to Rs. 1,635 crore. Some big anchor investors include Morgan Stanley Mauritius, Government of Singapore, UTI Trustee Co., SBI Trustee Co., Birla Sun Life Trustee Co., L&T Mutual Fund, Nomura India Investment Fund and Goldman Sachs (Singapore).

Bid Lot Size & Minimum Investment – Investors need to bid for a minimum of 44 shares and in multiples of 44 shares thereafter. So, a retail investor would be required to invest a minimum of Rs. 14,696 at the upper end of the price band and Rs. 13,200 at the lower end of the price band.

Maximum Investment – Individual investors investing up to Rs. 2 lakh are categorised as retail individual investors (RIIs). As a retail investor, you can apply for a maximum of 13 lots of 44 shares @ Rs. 334 i.e. a maximum investment of Rs. 1,91,048. However, at Rs. 300 per share, you can apply for 15 lots of 44 shares, thus making it Rs. 1,98,000. Investors opting for the “Cut-Off Price” option can apply for a maximum of 13 lots of 44 shares.

Listing – The shares of the company will get listed on both the stock exchanges i.e. National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) within 6 working days after the issue gets closed on 21st September. September 29th is the tentative date for such listing.

Here are some of the important dates to consider for this IPO:

Issue Opening Date – September 19, 2016

Issue Closing Date – September 21, 2016

Finalisation of Basis of Allotment – On or about September 26, 2016

Initiation of Refunds – On or about September 27, 2016

Credit of equity shares to investors’ demat accounts – On or about September 28, 2016

Commencement of Trading on the NSE/BSE – On or about September 29, 2016

Financials of ICICI Prudential Life Insurance

picture1

Note: Figures are in Rs. Crore, except per share data, figures in billions & percentage figures

Comparison of the five largest private sector life insurers

picture2

Should you invest in ICICI Prudential Life IPO @ Rs. 334 a share?

This IPO doesn’t excite me at all. First of all, I am not a great fan of the way life insurance companies carry out their businesses here in India and probably outside India as well. I think life insurance business should have nothing to do with one’s investments and insurance & investments should strictly be carried out separately.

Investors have hardly made any money with life insurance companies in the first 5 years of their investments. High commissions, high operating expenses and complicated fee & expense structures have always resulted in relatively lower returns for insurance plans. Also, there is no clarity how life insurance companies will expand their reach and operations going forward.

Moreover, this IPO seems steeply overpriced to me. Presently, it is valuing ICICI Life at 29 times based on its FY 2016 earnings. With ICICI Life showing a very dismal growth in its profits in the last 4-5 years, buying its shares at 29 times would be highly unjustifiable.

ICICI Life is a JV between ICICI Bank, holding 67.52% stake and Prudential Corp. Holdings Ltd. (PCHL), holding 25.83% stake. ICICI Bank sold its 4% stake in ICICI Life to Wipro Chairman Azim Premji’s Hasham Traders on November 27, 2015 at Rs. 226.34 per share. Can anybody explain me what has changed in the last 9-10 months to make ICICI Bank seek a 47.57% premium from the general public and other investors?

ICICI Bank reported a profit after tax (PAT) of Rs. 101.80 billion in FY 2015-16 and Rs. 122.47 billion in FY 2014-15. On the other hand, ICICI Life reported PAT of 16.53 billion in FY 2015-16 and Rs. 16.40 billion in FY 2014-15, which is less than 20% of ICICI Bank’s PAT in both these financial years.

At Rs. 334 a share, ICICI Life would be valued at Rs. 47,957 crore and that makes ICICI Bank’s 67.52% stake worth Rs. 32,381 crore. However, at Rs. 267.35 a share, ICICI Bank itself is valued at Rs. 1,55,533 crore. Interestingly, ICICI Bank had a market cap of Rs. 1,05,153 crore when it made its 52-week low early this year on February 26. It clearly shows it is just a turnaround in the investors’ sentiment which has made ICICI Bank seek higher valuations for ICICI Life. Its fundamentals remain intact based on which it doesn’t make any sense for me to invest in ICICI Life at 29 times its FY 2015-16 EPS.

Comparing these financials and giving it a consideration that ICICI Bank is a much bigger company having many other profitable subsidiaries other than ICICI Life, I find no justification for me to assign such a steep valuation to ICICI Life. I would give this issue a miss and advise my clients as well to avoid it.

L&T Technology Services IPO Review – Subscribe or Not?

This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at skukreja@investitude.co.in

A couple of years ago when the US economy was not doing well, Indian IT sector was booming. Brokerage houses and IT analysts were upgrading IT companies like HCL Technologies, Tech Mahindra, TCS etc. and raising their price targets after every review of quarterly results. But, as the US economy has started to recover, the fortunes of these companies have taken a complete U-turn.

Most of these companies are seeing a cut in the spending budgets of their clients and slower ramp-ups in few of their clients across different verticals. Uncertainty due to Brexit is also a cause of worry for these companies.

Amid these uncertainties and a worrisome slowdown, L&T Limited, the parent company of L&T Technology Services (L&T Tech), has decided to sell its 10.2% stake in L&T Tech and get it listed on the stock exchanges. This offer for sale (OFS) has already started and will get closed on September 15.

This initial public offer (IPO) comprises of an offer for sale of 1.04 crore shares of Rs. 2 each to the investors. L&T Limited, holding 100% stake in L&T Tech, will be selling all of these 1.04 crore shares in this IPO. This constitutes 10.2% of L&T Tech’s post-offer paid-up equity share capital.

Here are some of the salient features of this IPO:

Retail Allocation – 35% of the issue size is reserved for the retail individual investors (RIIs) i.e. 36.4 lakh shares out of 1.04 crore shares on offer, 15% is reserved for the non-institutional investors and the remaining 50% shares will be allocated to the qualified institutional buyers (QIBs).

Price Band – L&T Tech has fixed its price band to be between Rs. 850-860 per share and no discount will be there for the retail investors.

Anchor Investors – L&T has already sold 30% of its shares on offer i.e. 31.2 lakh shares, to 19 Anchor Investors at Rs. 860 per share. This amounts to Rs. 268.32 crore in the offer. These investors include Sundaram Mutual Fund, Copthall Mauritius Investment, DSP BlackRock, HDFC Trustee Company, Canara Robeco Mutual Fund and ICICI Prudential Life Insurance, FIL Investments (Mauritius), BlackRock India Equities (Mauritius) and Parvest Equity World Emerging among others.

Bid Lot Size & Minimum Investment – Investors need to bid for a minimum of 16 shares and in multiples of 16 shares thereafter. So, a retail investor would be required to invest a minimum of Rs. 13,760 at the upper end of the price band and Rs. 13,600 at the lower end of the price band.

Maximum Investment – Individual investors investing up to Rs. 2 lakh are categorised as retail individual investors (RIIs). As a retail investor, you can apply for a maximum of 14 lots of 16 shares in this IPO i.e. a maximum investment of Rs. 1,92,640.

Objective of the Issue – At the upper range of its price band, L&T will be able to raise Rs. 894.40 crore from this issue. As it is an OFS and no fresh shares will be issued, L&T Tech will not get any proceeds from this IPO.

Listing – The shares of the company will get listed on both the stock exchanges i.e. National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) within 6 working days after the issue gets closed on 15th September.

Here are some other important dates after the issue gets closed:

Finalisation of Basis of Allotment – On or about September 20, 2016

Initiation of Refunds – On or about September 21, 2016

Credit of equity shares to investors’ demat accounts – On or about September 22, 2016

Commencement of Trading on the NSE/BSE – On or about September 23, 2016

Financial of L&T Technology Services

Picture5

Note: Figures are in Rs. Crore, except per share data & percentage figures

Peer Comparison

Picture6

Key Customers – BMW, Calsonic Kansai, Caterpillar, Danaher, Eaton, Intel, John Deere, P&G, Rockwell Automation, Scania, Shell and UTC are L&T Tech’s key customers and partners across different segments.

Should you invest in L&T Tech IPO?

Poor listing of L&T Infotech and a subdued sentiment prevailing in the IT sector have made analysts and investors cautious about this IPO. L&T Tech’s offer price band seems to be stretched when you compare its valuations with some of its listed peers and L&T Infotech as well. But, you need to give it a consideration that L&T Tech is a younger player of the niche segment it is operating in, with an experienced management.

L&T’s management has a deep understanding of the businesses it is servicing through L&T Tech. That is what makes this company command a premium over L&T Infotech and other peers in this segment. The only concern I have is the valuation L&T is demanding for its stake sale. At Rs. 850-860 a share, I think it is slightly on a higher side. However, you should expect this company to perform well going forward and also consider investing in it once listed.

Indiabulls Housing Finance Limited (IHFL) 9.15% Non-Convertible Debentures (NCDs) – September 2016 Issue

This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at skukreja@investitude.co.in

Stock markets are trading expensive as there is a liquidity gush right now. However, no bad news is good news for the stock markets these days. Investors have no option but to take risks and invest in stock markets as all other asset classes seem unattractive at this point in time. But, is the future as bright as it seems to be? That is something nobody knows with certainty.

US markets celebrate every bad news for their economy these days as they want US Fed to stretch its rate hike trajectory as much as possible. They fear that a faster pace of rate hikes would make people to shift their money from stocks to bonds. But, I think bad macroeconomic scenario presents a gloomy picture for the stock markets in the medium to long term and it is not something which should be celebrated. If the current economic environment demands a rate hike, then it is better to do it sooner than postpone it due to some political compulsions.

However, to avoid risks and have a consistent stream of cash flows, investors prefer safer options like fixed deposits, post office schemes, bonds or non-convertible debentures (NCDs) and one such issue will be available for subscription from 15th September. Indiabulls Housing Finance Limited (IHFL) is launching its NCDs issue of Rs. 7,000 crore which carries interest rate in the range of 8.65% to 9.15%.

You will have the option to invest for an investment horizon of 3 years, 5 years and 10 years and it will carry monthly interest option as well if you keep money with them for the next 10 years.

Here are some of the salient features of this issue:

Size & Objective of the Issue – The company plans to raise Rs. 7,000 crore from this issue, including the green shoe option of Rs. 3,500 crore. The company plans to use at least 75% of the issue proceeds for its lending and financing activities and to repay interest and principal of its existing borrowings and a maximum of 25% of the issue proceeds for other general corporate purposes.

Coupon Rate & Tenor of the Issue – The issue will carry coupon rate of 9.20% p.a. for a period of 3 years (36 months), 9.25% p.a. for 5 years (60 months) and 9.30% p.a. for 10 years (120 months). Investors will have the option to receive interest on a monthly, annual or cumulative basis.

Picture2

Additional 0.10% for Senior Citizens – IHFL will credit an additional 0.10% per annum to senior citizens who fall in Category IV i.e. who invest Rs. 10 lakh or less. This additional interest will be paid to those senior citizens whose name appear in the books as the bondholders on the Record Date. Such investors need to submit their self-attested copy of PAN as an additional KYC document irrespective of the mode of application, demat as well as physical.

Categories of Investors & Allocation Ratio – The investors have been classified in the following four categories and each category will have the below mentioned percentage fixed in the allotment:

Category I – Qualified Institutional Bidders (QIBs) – 20% of the issue i.e. Rs. 1,400 crore

Category II – Non-Institutional Investors (NIIs) – 20% of the issue i.e. Rs. 1,400 crore

Category III – High Net Worth Individuals (HNIs) including HUFs – 30% of the issue is reserved i.e. Rs. 2,100 crore

Category IV – Resident Indian Individuals including HUFs – 30% of the issue is reserved i.e. Rs. 2,100 crore

Allotment on First-Come First-Served (FCFS) and Basis – Subject to the allocation ratio, allotment will be made on a first-come first-served basis, as well as on a date priority basis i.e. on the date of oversubscription, the allotment will be made on a proportionate basis to all the applicants of that day on which it gets oversubscribed.

NRIs Not Allowed – Non-Resident Indians (NRIs), foreign nationals and qualified foreign investors (QFIs) among others are not eligible to invest in this issue.

Credit Rating & Nature of NCDs – CARE and Brickwork Ratings have rated this issue as ‘AAA’ with a ‘Stable’ outlook. ‘AAA’ rated debt instruments are considered to be the safest from credit default point of view. Series I-VII NCDs are ‘Secured’ in nature for which the investors have the right on certain assets of IHFL in case of any financial trouble. However, Series VIII-X NCDs are ‘Unsecured’ in nature and carry a marginally higher rate of interest with a difference of 0.15%.

Listing, Premature Withdrawal & Put/Call Option – IHFL NCDs will be listed on both the stock exchanges i.e. Bombay Stock Exchange (BSE) as well as National Stock Exchange (NSE). The listing will take place within 12 working days from the date the issue gets closed. There is no option to surrender these bonds back to the company for premature redemption as there is no ‘Put’ option embedded in the offer. However, if taken in demat form, the investors can always sell these bonds on the BSE or NSE.

Demat, Physical Application – Investors can apply for these NCDs either in demat form or physical or certificate form as it is not mandatory have a demat account to invest in these NCDs.

TDS – Interest income earned is taxable with these NCDs and the investors are required to pay tax on the interest income as per their respective tax slabs. TDS @ 10% will be deducted if these NCDs are held in physical/certificate form and annual interest income is more than Rs. 5,000. NCDs held in demat mode will not attract any TDS.

Should you invest in Indiabulls Housing Finance Limited (IHFL) NCDs?

With interest rates falling and demand for such NCDs rising, issuers are leaving no opportunities to trim down the interest rates on offer. Indiabulls Housing is offering interest rates which are lower than the rates DHFL offered last month. However, I think it is justified for IHFL to offer lower rates than DHFL as it is a bigger company with sound fundamentals and carries a better brand name as well.

But, that doesn’t make these NCDs attractive to me. I think these coupon rates are lower for me to invest with a private company and I would rather invest in tax-free bonds or debt mutual funds. However, the investors, who are not liable to pay any tax on their annual income or who fall in the 10% tax bracket, can consider investing in these NCDs. Also, if you think interest rates will fall further from here, even then it makes sense to invest in such NCDs as it will result in a capital appreciation of these NCDs.

Application Form – IHFL NCDs

Note: As per SEBI guidelines, ‘Bidding’ is mandatory before banking the application form, else the application is liable to get rejected. For bidding of your application, any further info or to invest in Indiabulls Housing Finance Limited (IHFL) NCDs, you can reach us at +91-9811797407

DHFL NCDs Tranche II – Basis of Allotment & Allotment Status

This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at skukreja@investitude.co.in

DHFL has announced the basis of allotment for the second tranche of its non-convertible debentures (NCDs), which opened on August 29 and closed on the second day itself on August 30.

Here you have the Basis of Allotment among all categories of investors:

Picture1

Category IV (Retail Individual Investors Portion) – In the case of allotment in Category IV, 48,588 valid applications for 2,03,65,989 NCDs received on August 29, 2016 and August 30, 2016 have been allotted 2,03,65,989 NCDs (100%), against the allocated bucket of 3 crore NCDs as per the prospectus. The unsubscribed portion of 96,34,011 NCDs spilled over to Category III and Category I, as per the prospectus.

Category III (High Net Worth Individual Investors Portion) – In the case of allotment in Category III, 189 valid applications for 3,39,56,790 NCDs received on August 29, 2016 and August 30, 2016 have been allotted 3,39,56,790 NCDs (100%), against the allocated bucket of 3 crore NCDs as per the prospectus. Excess demand for 39,56,790 NCDs has been satisfied with unsubscribed portions from Category IV and Category II, as per the prospectus.

Category II (Corporates Portion) – In the case of allotment in Category II, 69 valid applications for 99,57,240 NCDs received on August 29, 2016 and August 30, 2016 have been allotted 99,57,240 NCDs (100%), against the allocated bucket of 1 crore NCDs as per the prospectus. The unsubscribed portion of 42,760 NCDs spilled over to Category III and Category I, as per the prospectus.

Category I (Qualified Institutional Investors Portion) – In the case of allotment in Category I, 28 valid applications for 3,39,56,790 NCDs received on August 29, 2016 and August 30, 2016 have been allotted 3,39,56,790 NCDs (100%), against the allocated bucket of 3 crore NCDs as per the prospectus. Excess demand for 39,56,790 NCDs has been satisfied with unsubscribed portions from Category IV and Category II, as per the prospectus.

Allotment Status – If you want to check the allotment status, here is the link of Karvy Computershare –http://karisma.karvy.com/investor/jsp/IDFC-APP.jsp

Karvy Computershare is the Registrar for the issue and if you have any query related to your application, allotment process or refund of application money, you can contact Karvy at its toll free number 1800 3454 001 or write a mail at einward.ris@karvy.com

RBI’s Sovereign Gold Bonds 5th Tranche – Series II – FY 2016-17 – September 2016 Issue

This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at skukreja@investitude.co.in

As gold prices go up, more and more people start investing in gold in the hope of prices going up further. This has always been the case and seems this trend will continue in future as well. To cash it on this trend and cap purchase of physical gold, the government has launched its 5th tranche of Sovereign Gold Bonds (SGBs) from September 1, 2016. This will be the second such issue in the current financial year and fifth overall since it was first introduced in November 2015.

Notified as Series II of the current financial year, this issue is open till September 9th. Below are the salient features of this bond issue:

Salient Features of Sovereign Gold Bonds – Series I of FY 2016-17

Picture1

Issue Price – As the price of gold in the international market has risen after Brexit, price for this tranche has been fixed at its highest level of Rs. 3,150 per gram of gold. Issue price for the first tranche was fixed at Rs. 2,684 per gram of gold, that of the second tranche was Rs. 2,600 per gram of gold, it was Rs. 2,916 per gram of gold in the third tranche and Rs. 3,116 per gram of gold in the fourth tranche.

The government could raise only Rs. 246 crore from its first issue in November issuing bonds with around 916 kg of gold, Rs. 798 crore from the second issue in January with around 3,071 kg gold, Rs. 329 crore from the third issue in March with around 1,128 kg gold and Rs. 919 crore from the fourth issue in July.

Issue Price Methodology – The issue price of Rs. 3,150 per gram of gold has been fixed on the basis of simple average of the closing prices of gold with 999 purity of the previous week (August 22, 2016 to August 26, 2016) published by the India Bullion and Jewellers Association Ltd. (IBJA).

Coupon Rate @ 2.75% p.a. –  As always, interest rate has been fixed at 2.75% p.a. to be paid twice in a year. Apart from this fixed rate of 2.75%, there is a potential of capital appreciation with these bonds and also a risk of decline in gold prices. Fall in gold prices would result in a negative yield from capital gains point of view, but 2.75% p.a. interest would remain fixed throughout its tenor of 8 years.

Allotment Date & Tenor of Investment – As per the RBI, these bonds would get allotted on 23rd of September and carry a maturity period of 8 years from the allotment date. However, there is an option to surrender these bonds from the 5th year onwards. Option to redeem will be there in the 5th, 6th and 7th year of investment only on the interest payment dates.

Delay in Allotment & Listing – Investors should have low expectations from the RBI to get these gold bonds allotted in a timely manner on September 23rd. No issue in the past got allotted on time as promised. There is no grievance redressal mechanism in place to help you either. So, if you apply for these bonds now, you might again be required to have a lot of patience in getting them allotted and see their listing in a timely manner.

Demat Option Available – Like its fourth tranche, you have the option to get these bonds allotted in demat form as well. Introduction of demat facility should bring down the time taken to allot these bonds and get them listed on the stock exchanges for trading.

Tradability, ISIN & Exit Option Before 5 years – As mentioned above, these bonds are redeemable from the 5th year onwards. However, in order to provide liquidity to its investors before 5th year, the government and RBI have made provisions for these bonds to list on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). These exchanges have allotted ISIN as well to these bonds, which is IN0020160043. You can sell your gold bonds on these stock exchanges after they get allotted on or after September 23rd.

In order to carry out premature redemption after 5 years, investors would be required to approach the concerned intermediary 30 days before the coupon payment date. This request for premature redemption would only be entertained if the investor approaches the concerned intermediary at least one day before the coupon payment date. Redemption proceeds will be credited to the customer’s bank account.

Online Bidding Platforms Launched – During its last issue, RBI introduced online bidding platforms for these gold bonds with BSE and NSE. Applying for these bonds has become a lot easier now with these platforms in place. These platforms will remain open till 12 a.m. on September 9th. There is a cooling off period of 30 minutes from 5:30 p.m. to 6 p.m. everyday.

Taxation in case of Redemption/Sale – Sovereign gold bonds are subject to capital gains tax treatment from FY 2016-17 onwards and gains are tax exempt if these bonds are redeemed after 5 years. Moreover, if these bonds are sold on the stock exchanges after 3 years from the allotment date, indexation benefits can be availed to calculate your capital gain or loss.

As per the Budget speech “It is proposed to provide that redemption by an individual of Sovereign Gold Bond issued by Reserve Bank of India under Sovereign Gold Bond Scheme, 2015 shall not be charged to capital gains tax. It is also proposed to provide that long terms capital gains arising to any person on transfer of Sovereign Gold Bond shall be eligible for indexation benefits”.

So, as an individual, whenever you redeem these gold bonds after holding them for 5 years, you are not liable to pay any capital gains tax. Indexation benefit will also result in a substantial tax saving.

No TDS, Interest @ 2.75% is Taxable – Interest income earned every year @ 2.75% p.a. is taxable and it is the responsibility of the investors to show it as an income from other sources in their income tax returns (ITRs). No TDS (tax deducted at source) will be deducted by the RBI while making interest payments.

Minimum and Maximum Investment – Like its last issue, investors are required to buy a minimum of 1 unit of these bonds i.e. 1 gram of gold or a minimum investment of Rs. 3,150. However, you can buy a maximum of 500 units of these bonds or 500 grams of gold, which works out to be Rs. 15,75,000.

NRI/QFI Investment Not Allowed – Non-Resident Indians (NRIs) and Qualified Foreign Investors (QFIs) are not eligible to invest in these bonds. Only resident Indian entities, including individuals, trusts, universities and charitable institutions are eligible to invest in these bonds.

Transferability – These bonds can also be transferred by execution of an instrument of transfer, in accordance with the provisions of the Government Securities Act.

Collateral for Loans – If required, these bonds can be used as collateral for seeking loans from various lending institutions.

Sovereign Gold Bonds vs. Gold ETF vs. Physical Gold – A Comparative Chart

Picture3

Should you invest in Sovereign Gold Bonds – Series I, FY 2016-17?

Gold is considered to be a hedge against inflation, recession and other times of uncertainties. It is also considered to be a safe haven for investors, that is why investors put more money in gold during volatile economic conditions. Moreover, when the global economies get stronger and the US dollar strengthens, investors move their investments away from gold.

As the US Federal Reserve is set to raise its policy rates sooner or later due to a stronger than expected jobs market, I think the gold prices should weaken going forward. However, investors with a bullish stance on gold prices and a medium to long-term investment horizon can consider investing in these bonds. As it is the cheapest, most tax efficient, risk-free way of investing in gold, I think this way of investing in gold is the best way. If your portfolio does not have gold as an investment, then you should definitely go for it, albeit in a staggered way.

SREI Infra 10% Non-Convertible Debentures (NCDs) – September 2016 Issue

This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at skukreja@investitude.co.in

Markets are often driven by sentiment and there is a slump in the real estate market these days due to negative sentiment. There is a drastic fall in the number of sale-purchase transactions which has resulted in an overdue price correction and squeezed the liquidity from this market. The same liquidity seems to be flowing now to equity and debt markets. Such high levels of liquidity flows have resulted in stock markets and bond prices to touch their 52-week highs.

Encouraged by super demand for two back to back NCD issues of DHFL, SREI Infrastructure Finance Limited is coming out with its issue of non-convertible debentures (NCDs) from this Wednesday, September 7. The issue is scheduled to remain open for three weeks to get closed on September 28.

Size & Objective of the Issue – Base size of this issue is Rs. 250 crore, with the green-shoe option to retain an additional Rs. 750 crore, making it a Rs. 1,000 crore issue. The company plans to use at least 75% of the issue proceeds for its lending activities and to repay its existing loans and up to 25% of the proceeds for general corporate purposes.

Coupon Rate & Tenor of the Issue – The issue will carry coupon rate of 9.35% p.a. payable monthly and 9.75% p.a. payable annually or cumulative for a period of 3 years (36 months) and 9.60% p.a. payable monthly and 10% p.a. payable annually or cumulative for a period of 5 years (60 months). There is one more option of 400 days which offers an effective annual yield of 9.08%.

Picture6

Minimum Investment – Investors need to apply for a minimum of ten bonds in this issue with face value Rs. 1,000 each i.e. a minimum investment of Rs. 10,000.

Categories of Investors & Allocation Ratio – The investors have been classified in the following three categories and each category will have the below mentioned percentage fixed in the allotment:

Category I – Institutional Investors – 20% of the issue i.e. Rs. 200 crore

Category II – Non-Institutional Investors – 20% of the issue i.e. Rs. 200 crore

Category III – Individual & HUF Investors – 60% of the issue i.e. Rs. 600 crore

Allotment will be made on a first-come first-served basis, as well as on a date priority basis i.e. on the date of oversubscription, the allotment will be made on a proportionate basis to all the applicants of that day on which it gets oversubscribed.

NRIs Not Allowed – Non-Resident Indians (NRIs), foreign nationals and qualified foreign investors (QFIs) among others are not eligible to invest in this issue.

Credit Rating & Nature of NCDs – Brickwork Ratings has rated this issue as ‘AA+’. Debt instruments with such a rating are considered to have high degree of safety regarding timely payment of interest and principal. Moreover, these NCDs are ‘Secured’ in nature i.e. in case of any default on its payment of interest or principal, the bondholders will have the right on certain secured assets of SREI Infra.

Listing, Premature Withdrawal & Put/Call Option – These NCDs will be listed on both the stock exchanges i.e. Bombay Stock Exchange (BSE) as well as National Stock Exchange (NSE). The listing will take place within 12 working days after the issue gets closed. Though there is no option of a premature redemption, the investors can sell these bonds on the stock exchanges if NCDs are held in demat form.

Demat Not Mandatory – Demat account is not mandatory to invest in these NCDs as the investors have the option to apply for these NCDs in physical or certificate form as well.

TDS – Interest income earned is taxable with these NCDs and the investors are required to pay tax on the interest income as per their respective tax slabs. TDS @ 10% will be deducted if these NCDs are held in physical/certificate form and annual interest income is more than Rs. 5,000. NCDs held in demat mode will not attract any TDS.

Should you invest in these NCDs?

SREI Infra had its last NCD issue in July 2015. Below pasted is the table having issue details, BSE scrip codes and last traded prices of those NCDs.

Picture8

SREI Infra NCDs always carry low volumes and that is why it is very difficult to calculate its relevant yield to maturity (YTM) for the interested investors. But, If I were to invest in SREI Infra’s NCDs, I would have bought them from the secondary markets as I think it is possible to invest in these NCDs at a YTM between 10.50% and 11.50%. Its current issue offers coupon rates between 9.35% and 10% which are not attractive for me to invest. However, conservative investors, who are not liable to pay any tax or fall in the 10% tax bracket or who trust SREI Infra’s management, can consider investing in these NCDs.

Application Form – SREI Infra NCDs

Note: As per SEBI guidelines, ‘Bidding’ is mandatory before banking the application form, else the application is liable to get rejected. For bidding of your application, any further info or to invest in SREI Infra NCDs, you can reach us at +91-9811797407

Reliance Jio 4G Data @ Rs. 50/GB – Comparison with Airtel, Vodafone, Idea Plans

This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at skukreja@investitude.co.in

Reliance Jio has generated a lot of curiosity among the telecom users here in India. Almost everybody wants to have at least one Reliance Jio connection for its free calling and data services as soon as it launches its commercial operations. Reliance Jio is launching its nationwide telecom services from the coming Monday – September 5th. Rs. 50 per GB of 4G data with free voice calling, free unlimited SMS, free night data usage and free Jio App subscription is what Mukesh Ambani has promised to offer Jio subscribers.

I think this is the biggest gamble Reliance has played in recent times. Entering an already established, already struggling industry and challenging its biggest and experienced players is not an easy task. But, Reliance Industries, with its deep pockets, long-term vision and disruptive strategy in place, is ready to take a plunge in this already crowded market. But, will it able to succeed in its strategy to give a jolt to the incumbent players like Airtel, Vodafone & Idea by offering free calling and low cost data services? Let’s first check what their tariff plans are and then we would analyse them further.

Postpaid Tariff Plans

Picture2

Prepaid Tariff Plans

Picture1

Reliance Jio Terms & Conditions

  1. Voice calls are truly free – you need not pay any charges for voice calls or the data used to make 4G voice calls. However, video calls will be charged.
  2. “Unlimited Free Night Data” will be available between 2 a.m. and 5 a.m.
  3. Free Wi-Fi data will be available at Jio’s Wi-Fi hotspots only.
  4. All Jio services are free till December 31, 2016, including voice calls and 4G data usage. The plans above are applicable w.e.f. January 1, 2017.
  5. Unutilized free benefits will be forfeited at the end of validity period and not be carried forward to the next billing cycle for postpaid customers.
  6. Prepaid packs of Rs. 19, 129 and 299 cannot be availed as a first recharge.
  7. Students will be provided 25% additional 4G Wi-Fi data on providing valid identity card.
  8. Prepaid tariffs are inclusive of all applicable taxes.
  9. Applicable taxes will be extra for postpaid tariffs. 15% discount will be given to subscribers opting for e-bill and auto-debit option for their monthly bill payments.
  10. These plans can only be availed by customers possessing a LTE compatible handset.

Reliance Jio Store Locator – Here is the link to locate and visit a Reliance Jio store to get a new Jio connection – Link.

You can search your nearest Reliance Jio store by entering your pincode, area or location.

Is Reliance Jio 4G data @ Rs. 50/GB for real?

While Reliance is claiming that it is going to offer 4G Wi-Fi data at Rs. 50 per GB, it doesn’t seem to be the case even with its costliest plan of Rs. 4,999 per month. With Rs. 4,999 per month plan, it is costing Rs. 66.65 per GB of 4G data, which is the cheapest of all the plans on offer. However, with its other reasonable plans, it is costing around Rs. 125 per GB of 4G data (Rs. 499 plan), Rs. 100 per GB of 4G data (Rs. 999 plan) and Rs. 75 per GB of 4G data (Rs. 1,499 plan).

Best Plan for Voice Calls – It seems Rs. 149 p.m. plan is the best plan if you want to make unlimited free calls from Jio and your 4G data usage is limited up to 300 MB. In this plan, you’ll get unlimited free voice calls, 100 free SMS and Jio Apps subscription worth Rs. 1,250 for free. But, you won’t get any free unlimited night data or any JioNet HotSpot 4G data. In this plan, 4G data will effectively cost you Rs. 509 per GB as against Rs. 50 per GB claimed by Reliance. If you want more 4G data, you’ll have to opt for other plans with higher rentals or higher commitment of Rs. 499 or above.

Comparison between Reliance Jio, Airtel, Vodafone and Idea 4G Data Plans

Picture5

If you check the table above, it is costing Rs. 499 for 4 GB of Jio’s 4G data. 4 GB 4G data from Airtel and Vodafone costs Rs. 559, while 5 GB 4G data from Idea costs Rs. 655, which shows it is not amazingly cheap with Jio. It is just 5-10% cheaper with Jio as far as data charges are concerned. Moreover, when it comes to 10 GB data, there is no difference at all between what Jio will offer and what Airtel, Vodafone and Idea already have on table.

However, it makes material difference with Jio’s plan of Rs. 1,499. While it costs Rs. 1,499 for 20 GB of Jio’s 4G data, the same data costs Rs. 1,999 with Airtel, Vodafone and Idea. This is 25% cheaper with Jio. Airtel, Vodafone and Idea are yet to offer mobile prepaid data of more than 20 GB, so we cannot make a comparison for those data plans here.

Voice Calls Truly Free – This is something what has been making people call Reliance Jio’s entry to be disruptive for the telecom industry and its existing players. India is a country where telecom players make more than 70% of their revenues through voice calling services. By making voice calling absolutely free and promising to keep it free forever, Jio has made the incumbent players rethink their future strategy. Jio’s data plans are cheaper than Airtel, Vodafone and Idea without even considering that its voice calls are absolutely free. With free voice calling and free unlimited SMS, Jio is going to hit these existing players where it hurts the most.

However, we will still have to wait & watch several things before taking our guns out and start shooting in air. There is no doubt that Reliance is offering very cheap 4G data and absolutely free voice calls, but I think we need to first test Reliance services and its LYF smartphones before dumping our existing connections. Consumers who are already using Jio services are fairly satisfied with its 4G data speed, but as far as voice calls are concerned, there are issues, probably due to interconnection issues.

LYF Smartphones – I have also been told that LYF smartphones, though cheaper, are not up to the mark and I think these days it is really important for a high end customer that his/her sim works in all the best selling smartphones, especially that phone which he/she currently carries or wants to purchase. At present, Jio sim works only with 4G LTE compatible smartphones and not even 10% of Indian consumers have such smartphones. With an ambitious target to have 90% of Indian consumers use Jio services by March 2017, Reliance is required to do everything to make its sims work in all kind of 4G compatible smartphones and also make LYF smartphones the best and the cheapest of the lot.

These are testing times, for Reliance it is testing time for its services and for incumbent players, these are testing times w.r.t. to the competition they are facing from Jio. One thing is certain that the next 6-12 months would be the most interesting period for the Indian telecom industry. How Reliance and other players act or react would set the future course for this industry. Keep your seat belts tight, this plane is surely going to give a lot of blows during this journey.

Reliance Jio 4G Plan Tariffs – How disruptive would it be for Airtel & Idea?

Reliance Industries today announced the tariffs of its 4G services during its Annual General Meeting (AGM) in Mumbai. The services, which are to be carried out in the name of Reliance Jio, would be commercially launched on September 5th. Whatever got announced today during this AGM with respect to Reliance Jio, its tariffs and the company’s plans to carry out its operations was extremely exciting for the Indian consumers.

But, it was a very bad day as far as the stock prices of Airtel, Idea, Reliance Communications and even Reliance Industries itself are concerned. Idea stock suffered the most of the brunt and closed down 10.49% at Rs. 83.65. Anil Ambani’s Reliance Communications was next in line with a fall of 8.99% at Rs. 49.10. While Bharti Airtel, the largest telecom service provider in India, suffered 6.27% fall in its share price to Rs. 310.85, Reliance itself got hammered by 2.91% to close the day at Rs. 1029.20.

So, what made these big companies fall so much in a single day of trading? The answer is – all Reliance Jio services, including voice calling, 4G data usage, SMS services etc. will be absolutely free for all its subscribers for almost four months before they get paid w.e.f. January 1, 2017. Even when these services become paid from January 1, voice calling would remain free across all its plans and there would be disruptive 4G tariffs, which are termed by Mukesh Ambani as the World’s cheapest data tariffs at Rs. 50 per GB of data.

Reliance Jio’s tariffs are termed as disruptive and on the face of it they are truly intimidating for the incumbent telecom players. So, what are the Reliance Jio 4G plan tariffs which have made the existing players to rework their future strategies? Here you have the tariffs the consumers will have to pay to avail Reliance Jio services:

Postpaid Tariff Plans

Picture2

Prepaid Tariff Plans

Picture1

Base plan of Rs. 149

A consumer will get:

1) 300 MB 4G data

2) Free Unlimited local/ISD voice calls

3) Free Jio app subscription worth Rs. 1,250

4) Free 100 local/STD SMS

Effective cost per GB of data – Rs. 508

Rs. 499 Pack

A consumer will get:

1) 4 GB 4G data + Unlimited 4G data during night

2) Free Unlimited local/ISD voice calls

3) Free Jio app subscription worth Rs. 1,250

4) Free unlimited local/STD SMS

5) 8 GB JioNet WiFi Hotspot access

Effective cost per GB of data – Rs. 124.75

Rs. 999 Pack

A consumer will get:

1) 10 GB 4G data + Unlimited 4G data during night

2) Free Unlimited local/ISD voice calls

3) Free Jio app subscription worth Rs. 1,250

4) Free unlimited local/STD SMS

5) 20 GB JioNet WiFi Hotspot access

Effective cost per GB of data – Rs. 99.9

Rs. 1,499 Pack

A consumer will get:

1) 20 GB 4G data + Unlimited 4G data during night

2) Free Unlimited local/ISD voice calls

3) Free Jio app subscription worth Rs. 1,250

4) Free unlimited local/STD SMS

5) 40 GB JioNet WiFi Hotspot access

Effective cost per GB of data – Rs. 75

Rs. 2,499 Pack

A consumer will get:

1) 35 GB 4G data + Unlimited 4G data during night

2) Free Unlimited local/ISD voice calls

3) Free Jio app subscription worth Rs. 1,250

4) Free unlimited local/STD SMS

5) 70 GB JioNet WiFi Hotspot access

Effective cost per GB of data – Rs. 71.4

Rs. 3,999 Pack

A consumer will get:

1) 60 GB 4G data + Unlimited 4G data during night

2) Free Unlimited local/ISD voice calls

3) Free Jio app subscription worth Rs. 1,250

4) Free unlimited local/STD SMS

5) 120 GB JioNet WiFi Hotspot access

Effective cost per GB of data – Rs. 66.65

Rs. 4,999 Pack

A consumer will get:

1) 75 GB 4G data + Unlimited 4G data during night

2) Free Unlimited local/ISD voice calls

3) Free Jio app subscription worth Rs. 1,250

4) Free unlimited local/STD SMS

5) 150 GB JioNet WiFi Hotspot access

Effective cost per GB of data – Rs. 66.65

Is it really disruptive and will it affect you?

I think an average Indian telecom consumer does not want to spend more than Rs. 300 for its monthly voice calling and data usage. Airtel reported its average revenue per user (ARPU) to be Rs. 196 during its first quarter results in July 2016. As against Rs. 50/GB of data as announced by Jio, the cheapest Rs. 149 data pack would effectively cost you Rs. 508 per GB of data, but also provides you free unlimited voice calling.

As you can check from the plans above, even a Rs. 4,999 plan does not bring down cost per GB of data to Rs. 50. So, tariffs here are presented in a manner which sound music to your ears, but eventually they could end up higher. Incumbent players Airtel, Idea, Vodafone and RCom have sufficient time to act or react to these tariffs. Whether these tariffs would add to the overall growth of the telecom sector or to the woes of its existing players, that is something only time will tell. But, one thing is certain, the consumers here in India are going to enjoy some highly competitive data tariffs in the months to come.