Piramal Life Sciences, the demerged research and development unit of Nicholas Piramal, is likely to be listed by June.
Ajay Piramal, chairman, Piramal Group, said: "The promoters might dilute 10% stake in Piramal Life Sciences to private equity, strategic or international firms over the next 12 months. Lehman Brothers, Kotak and Enam Securities have independently valued the R&D pipeline in the range of $480-540 million (Rs 1,920-2,160 crore)."
The group today also announced the launch of its new corporate identity. While Nicholas Piramal will now be known as Piramal Helathcare, Gujarat Glass and NPIL Laboratories and Diagnostics have been renamed as Piramal Glass and Piramal Diagnostic Services, respectively.
Explaining the rationale behind re-branding, Piramal said: "There was a need for change as it has been 20 years since we entered the pharmaceuticals business. The group needs to have common values as we are entering new businesses and expanding internationally."
The group's new logo is the Gyan Mudra - an aesthetic hand posture practised in yoga, meditation and dance over the past 3,000 years. The three fingers in the logo symbolise the mind, the body and the intellect mirroring the group's core values: knowledge, action care.
Piramal said: "The Gyan Mudra epitomises the core values of the group - knowledge, action and care. It is said to focus the mind, body and heart to give the light of knowledge, encourage dynamic action and deep compassion bringing health, prosperity and peace to all."
Piramal also indicated that Nicholas Piramal may explore new avenues in the healthcare space. "We aspire to democratise the healthcare services as merely 30% of the population has access to modern medicine. The market is growing at 12% while the company is expected to grow at 16-17%," said Piramal.
Nicholas Piramal has developed a hub-and-spoke model to offer medicines in rural areas. The company will train nurses in rural areas for diagnosis who, in turn, will communicate with doctors based in cities for prescriptions.
Piramal said: "Most villages do not have access to modern medicines, and neither can doctors physically visit all the villages. This activity will provide timely medicine to patients."
The company has started implementing the project on an experimental basis in Rajasthan, and plans to cover one lakh villages in the next five years. Piramal hinted that the company will tie-up with a software company to provide proactive software for mobile connectivity.
Indiareit Fund Advisors, the real estate venture capital fund promoted by the group, will raise $700-800 million through an offshore fund to invest in the domestic market. Piramal said: "The company will launch its second international fund of $700-800 million (Rs 2,800- 3,200 crore) approvals of which are expected by April. UK-based 3i Plc has committed $250 million (Rs 1,000 crore) for the fund that will invest in FDI-approved projects in India."
Indiareit currently manages a corpus of $ 450 million raised through two domestic and an offshore fund.
Understanding Short Term Trading
Before I begin, this blog is not for intraday traders. My definition of short term implies duration of around 2 to 3 months.
Short Term stock picking is no rocket science, but rather a visual interpretation of technical charts. A basic moving average on a time frame chart will show the direction of the securities movement.
Moving averages is a mathematical results calculated by averaging a number of past data points. Moving averages (MA) in it's basic form is calculated by taking the arithmetic mean of a given set of values on a rolling window of timeframe. Once the value of MA has been calculated, they are plotted onto a chart and then connected to create a moving average line. Typical moving averages used for short term trading are 50 MA and 100 MA.
Types of Moving Averages
1) Simple Moving Average (SMA)
SMA is calculated by taking the arithmetic mean of a given set of values on a rolling window of timeframe. The usefulness of the SMA is limited because each point in the data series is weighted the same, regardless of where it occurs in the sequence. Critics argue that the most recent data is more significant than the older data and should have a greater influence on the final result.
2) Exponential Moving Average (EMA)
EMA overcomes the limits of SMA, where more weight is given to the recent prices in an attempt to make it more responsive to new information. When calculating the first point of the EMA, we may notice that there is no value available to use as the previous EMA. This small problem can be solved by starting the calculation with a simple moving average and continuing on with calculating the EMA.
The primary functions of a moving average is to identify trends and reversals, measure the strength of an asset's momentum and determine potential areas where an asset will find support or resistance. Moving averages are lagging indicator, which means they do not predict new trend, but confirm trends once they have been established.
A stock is deemed to be in an uptrend when the price is above a moving average and the average is sloping upward. Conversely, a trader will use a price below a downward sloping average to confirm a downtrend. Many traders will only consider holding a long position in an asset when the price is trading above a moving average.
In general, short-term momentum can be gauged by looking at moving averages that focus on time periods of 50 days or less. Looking at moving averages that are created with a period of 50 to 100 days is generally regarded as a good measure of medium-term momentum. Finally, any moving average that uses 100 days or more in the calculation can be used as a measure of long-term momentum.
Support, resistence and stoploss can be infered by referring the closet MA below or above the market price. The other factor that is used in short term momentum is the trading volume. The moving averages along with the trading volume can provide a better insight to short term movement.
Markets are moved by their largest participants - I believe this is the single most important principle in short-term trading. Accordingly, I track the presence of large traders by determining how much volume is in the market and how that compares to average. Because volume correlates very highly with volatility, the market's relative volume helps you determine the amount of movement likely at any given time frame--and it helps you handicap the odds of trending vs. remaining slow and range bound.
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