D-Mart and Idea-Vodafone Merger

D-Mart Listing

This month was full of action and twists. D-Mart IPO finally get listed on NSE and BSE with premium of almost 100 percent. FED raises interest rates by 0.25 percent. Hindustan Zinc declares especial dividend of Rs.13,985 crore. Idea cellular finally agreed and approves the merger with Vodafone India, after which both companies would likely to have equal holding in new entity.

Today, we will briefly examine the few highlights of our market. First probably would be D-Mart IPO. After which we will go further to topic of Idea-Vodafone Merger.

As everybody was expecting, D-Mart IPO got listing on NSE and BSE of above Rs.570. On same day, stock further reaches level of Rs.630. That heavy premium listing was probably because of Good Management and market presence. Company has total of 118 stores, and have presence in 126 locations across Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh and NCR. As per my previous advice on D-Mart, I would advice to partially book half of your profit from stock by selling your half number of shares. However,if you want you can hold your remaining half position with long-term view.

Idea-Vodafone Merger

Idea Cellular is the third biggest player of Indian telecom industry. But as idea will merge with Vodafone, it will become the biggest telecom player with subcriber base crossing 40 crore. According to Idea, both companies will likely to have equal holding in new Idea-Vodafone entity. And the chairman of all new board of Management will be chairman of Idea i.e Kumar Mangalam Birla.

After this announcement, Idea stock saw sharp rise making this deal more valuable and benificial for Idea investors. But when the update came on same day that the deal has been locked at Rs.72 per share, all the rise in stock got loose and stock suddenly breakdown as much 10 percent making this deal against investors rumour. This update was really unexpected which resulted in break of levels Rs.100. Small investors those bought a few number of shares of Idea at high peak after Vodafone merger announcement really got discouraged and only made huge loss in just one day.

But at this time, one can surely invest in telecom sector without any risk with long term view. Many of Telecom stocks are available for investors at very low price which was seen last time in 2014. All big investors and investment institution are waiting for upcoming reforms in telecom industry after which they may start investing in telecom sector.

Change in nature of Competition

Biggest reform which can be seen easily is of changing revenue source of telecom companies. Now, the calling revenue for companies has been left with little future and earning. However, all telecom companies are aiming to capture as much as market share by Internet offer fulfill by unlimited talktime. And really this is the new future of Telecom industry on which all have to work even more harder to retain their presence. Future of telecom industry is really great but only Jio welcome offer was the main reason for depression time in telecom sector. After which, all are been forced to revise their plans and services.

With long-term view of nearly 2 years, one can expect returns from telecom stocks of almost 70 percent.

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