Gammon Infrastructure Files IPO Papers

MUMBAI: Gammon Infrastructure Projects, a subsidiary of Gammon India has filed papers for the initial public offer of 1,65,50,000 equity shares of face value Rs 10 each.

The issue comprises 1,48,95,000 shares to the public and a reservation of 16,55,000 shares to eligible employees.

The IPO is being made on 100 per cent book building proces, with the price band of Rs 167- 200. The issue will remain open from March 10, 2008 to March 13, 2008.

On Thursday, Gammon India shares closed down 0.17 per cent at Rs 504.75

SEBI Seeks Clarification From Reliance Infratel, 24 Others

MUMBAI: The Securities and Exchange Board of India has sought clarifications from lead managers of proposed IPOs of 25 firms, including Reliance Infratel, JSW Energy and Oil India, that plan to raise money through share sale.

According to the latest processing status of draft offer documents filed with SEBI on or after April 1, 2007, clarifications are awaited from lead managers in relation to the draft offer document of 25 firms.

These 25 firms include Reliance Infratel, Cox and Kings (India), JSW Energy, Oil India Ltd, Mahindra Holidays & Resorts and National Hydroelectric Power Corporation.

In terms of the Disclosure and Investor Protection Guidelines, 2000, SEBI may issue observations on a draft offer document filed with it within 30 days from the date of receipt of such draft offer document.

But it may seek any additional information or clarification in relation to the draft offer document from the merchant bankers and issue such observations within 15 days from the date of receipt of satisfactory reply.

Anil Ambani group's tower business subsidiary Reliance Infratel had filed the draft prospectus with SEBI on February 4 for entering the capital market with a public issue of 8.91 crore equity shares.

JSW Energy, part of the Sajjan Jindal-led JSW group, also filed draft documents with the regulator for its maiden public issue of over 6.32 crore shares of Rs 10 each.

Think Twice Before Investing In IPOs

MUMBAI: Ten out of 16 initial public offerings (IPOs) that made their debut on the bourses this calendar year are quoting below their issue prices, a statistic that is likely to make investors think twice before rushing to पुट money into the next ‘hot IPO’. But merchant bankers are not to be dissuaded so easily. They feel the primary market is showing signs of a revival, only that investors have become a bit more finicky about the price they are willing to shell out.

“People are coming back but at a price,” said an investment banker with a leading domestic brokerage. “Unlike the earlier trend of where any issue was oversubscribed, there is an element of caution today. In a highly volatile market, most investors prefer secondary market trade rather than primary market trade,” he added.

Industry experts aver the new issuances and their performance on the bourses in the recent past also need to be judged against the backdrop of whether the deal was announced before the market crash (January 21) or after the market crash. Most importantly, if the crash was taken into account in the IPO pricing.

“Most IPOs are priced to their peer groups. In the instance of Emaar and Wockhardt, their valuations were compared to their peers in a bear market,” said an industry source.


The meltdown in share prices mid-January adversely impacted the performance of many stocks on listing. “New issuances once listed, are but a subset of the secondary market. As such they will be impacted by all developments of the secondary market, be it industry as a whole or company related news,” said Prime Database MD Prithvi Haldea.

BGR Energy, Burnpur Cement, Manaksia, Precision Pipes & Profiles Company, Aries Agro, Porwal Auto Components, Future Capital Holdings, Reliance Power, J Kumar Infraprojects, Cords Cable Industries, KNR Construction, On Mobile Global, Shriram EPC, Bang Overseas, IRB Infrastructure Developers and Tulsi Extrusions are the 16 issues that debuted in the calendar year 2008.

“Post-listing, primary and secondary markets catch up with each other. The valuation of companies in the secondary market has corrected, as a result some of the companies listed in this period were also impacted. However, there is no denying that for quality issuances there is appetite at every level from investors. Hence if two-three issues are quoting above their offer price it is a function of quality,“ said an i-banker with a leading foreign brokerage.

The partial revival in sentiment notwithstanding, there is no denying that confidence levels are at an all-time low. And for the retail investor given a choice between an already listed stock and a new listing, there is but one way to go.

“A volatile market is detrimental to IPOs. It has left the retail investor jittery about taking positions in already listed stocks, so they are bound to be cautious about investing in new listings,” said Mr. Haldea. He expects the primary market to go through a lull phase till post budget.

L&T Drops Plan For Infotech IPO

MUMBAI: Larsen and Toubro on Monday said it is not going ahead with its IPO plan for its IT company, L&T Infotech, because of the volatile global market condition.

"We are dropping plans of an IPO for Infotech in 2008 because the markets are volatile," L&T CMD A M Naik told reporters.

Earlier, L&T officials had said Infotech would be listed in 2008. However, the heavy engineering major would look for an Infotech IPO in 2009, he said. "If we go now for an IPO, we won't get better valuation," Naik said.

Two major companies have withdrawn their IPOs earlier this month because of undersubscription. They are Emaar MGF and Wockhardt Hospitals. Emaar planned to raise Rs 6,400 crore and Wockhardt Hospitals Rs 640 crore.

Rural Electrification Corp Prices IPO At Rs 105 A Share

MUMBAI: State-run lender Rural Electrification Corp has priced its initial public offer at Rs 105 a share, at the top end of its indicated price band, a senior official said on Monday.

"The board has approved 105 rupees. The group of minister’s has also concluded their meeting. Although we don't have official word, it is likely to be the same price," Finance Director HD Khunteta told reporters.

REC's 156-million share offer attracted applications for 27.91 times the share on offer. While the qualified institutional buyers segment was subscribed 39.3 times, retail portion was subscribed 7.7 times.

"We expect to list the shares around 13th-14th of March," Khunteta said. The company had indicated a price band between 85 rupees and 105 rupees per share for the sale.

At 105 rupees a share, the offer will raise 16.4 billion rupees. The issue comprises of equal parts of fresh shares and a stake sale by the federal government, bringing its holding down to 81.8 percent from 100 percent now.

REC's share offer is the first share sale in a state-run power firm since the government divested 13.6 percent in transmission utility Power Grid Corp in October 2007, raising 29.8 billion rupees.

Govt Asks ICAI To Prepare Report On IPO Valuation

New Delhi: In the wake of controversy relating to valuation of public issues, the government has directed the apex body of chartered accountants, ICAI, to conduct a study on the initial public offer pricing and suggest ways for protecting the interest of investors. Run-up to Budget 2008-09

"The government has asked the Institute of Chartered Accountants of India (ICAI) to study the issue of IPO valuation and system of stock movements. The ICAI will submit a report on the valuation of IPO in due course," Corporate Affairs Minister Prem Chand Gupta told reporters.

"The ICAI study would take into account the practice followed in other countries as well as India and suggest ways for dealing with it," he said, adding that the apex body would also advise the government on making the whole process of IPO valuation more transparent.

When contacted, the ICAI President Ved Jain said that the institute has constituted a group of technical experts to study the issue of IPO valuation.

The institute, he said, would compare the Indian practices with the best in the world and also study how the other countries have dealt with the problems concerning IPO valuation.

The problem of the IPO valuation came to fore with public issue of some companies plunging below the issue price even on the listing day or afterwards, leaving investors high and dry.

"... the tactical fight for market share (in the industry) is not likely to engage her for long. At some point, that role in government will beckon," the Fortune report had said.

It further added that "Nooyi is an entirely different kind of CEO, a product of her native India as well as of PepsiCo's family-values approach to grooming CEOs."

"... She is not hung up on pay... She is 52 years old and does not plan for this job to be her last. Her friend Henry Kissinger predicts that it is only a matter of time before she is plucked for a big Washington post, possibly a cabinet job, and Nooyi acknowledges that at some point, she'd like that."

The report quoted Kissinger, who consults PepsiCo and other companies on international matters, as saying: "If you look at the job entirely from the American perspective, then it becomes impossible to run a global business."

Fortune said that Nooyi was a "cosmopolitan, rigorously educated, and a strategic thinker" and her background of Boston Consulting Group makes her fit for "burgeoning markets in Russia and China than in the noisy US cola wars."

"A dinner gathering at her house is as likely to include Tony Blair and government ministers from India or Mexico as traditional pinstriped business types," it noted.

The top place on the Forbes list has been grabbed by Catherine Burzik of medical technology company Kinetics Concept, followed by Meg Whitman of internet auction giant eBay and Linda Lang of Jack in the Box, a US fast food chain.

Other names in the list are Susan Ivey of Reynolds American (4th), Anne Stevens of speciality alloy manufacturer Carpenter Technology (5th), Andrea Jung of Avon Products (6th) and Western Union's Christina Gold at the seventh position.

Nooyi was named among the top ten most powerful women in the world in a list prepared by Forbes late last year, which included people from areas of business, politics and entertainment among others.

IPO Closing Today

1) Rural Electrification Corporation Ltd.

Opening Date: 19/02/2008
Closing Date : 22/02/2008

Rural Electrification Corporation (REC) IPO Subscribed 4.67 Times

The initial public offer of Rural Electrification Corporation (REC), a state-run power sector lender, got subscribed 4.67 times at 11:00 IST on last day of its issue today, 22 February 2008. The price band for the IPO is Rs 90 to Rs 105. The book building process, which opened on February 19, is scheduled to close on February 22. The issue would constitute about 18.18% of the fully diluted post-issue capital of REC. It is looking to raise about Rs 16.40 billion through sale of 156 million equity shares in a price band of Rs 90-105 in the IPO.

Most of the bids today came from the institutional investors that made the portion reserved for Qualified Institutional Buyers (QIBs) getting subscribed 4.52 times.

Rural Electrification is offering shares in a price band of 90 rupees to 105 rupees. The 156.1 million shares on offer will account for 18.2% of the lender's post-issue capital. The holding of the government, which fully owns the company, will be reduced to about 81.8%. IL&FS Investsmart Ltd., ICICI Securities Ltd. and SBI Capital Markets Ltd. are managing the share sale.

Rural Electrification Corporation is a public sector enterprise and is engaged in financing and promoting transmission, distribution and generation projects across the country. The company provides financial assistance to public sector power utilities at the central and state levels, private sector power utilities, and joint sector clients. Its financial products include long-term loans, short-term loans, bridge loans and debt refinancing provided through its corporate office in New Delhi and 17 field units across India.

IPO Closing Today

1) V-Guard Industries Ltd.

Opening Date: 18/02/2008
Closing Date : 21/02/2008

IPO Opening Today

1) Globus Spirits Ltd.

Opening Date: 19/02/2008
Closing Date : 22/02/2008

2) Rural Electrification Corporation Ltd.

Opening Date: 19/02/2008
Closing Date : 22/02/2008

IPO Opening Today

1) V-Guard Industries Ltd.

Opening Date: 18/02/2008
Closing Date : 21/02/2008

IPO Closing Today

1) GSS America Infotech Ltd.

Opening Date: 11/02/2008
Closing Date : 15/02/2008

CARE Assigns 'IPO Grade 3' To Surya Food & Agro

MUMBAI: CARE has assigned ‘CARE IPO Grade 3’ to the proposed initial public offer of Surya Food & Agro Ltd, which indicates ‘Average Fundamentals’.

CARE assigns IPO grades on a scale of Grade 5 to 1, with Grade 5 indicating strong fundamentals. CARE’s grading is an opinion on the relative fundamentals of the issuer.

Surya Food & Agro is planning an IPO aggregating Rs 135.90 crore for which the price band is yet to be fixed.

The grading takes into account the strong brand image and market position of the company in the biscuit segment, especially in the North Indian market, brand recognition in juices segment, experience of Surya Food’s promoters, moderate level of corporate governance and low leverage ratios.

The key grading constraints are relatively smaller size of operations compared to company’s competitors, low profitability and projects under implementation.

Surya Food has three wholly owned subsidiaries, namely; Surya Fresh Foods which manufactures fruit juices under the brand name of ‘Fresh Gold’ and aerated fruit drinks called ‘Treat’; Devika Food Products which has biscuit manufacturing facility at Surat; and Surya Processed Food which proposes to enter into diary products and chocolates.

The company is promoted by Ballabh Prasad Agarwala, chairman cum managing director, and his three sons, Manoj Kumar Agarwal, Navin Kumar Agarwal and Shekhar Agarwal, the whole time directors of the company.

Surya Food and Surya Fresh Foods currently have installed capacity to manufacture 85,000 mtpa of biscuits and 130 kilolitre per day of juices.

IPO Closing Today

1) SVEC Constructions Ltd.

Opening Date: 04/02/2008
Closing Date : 13/02/2008

Reliance Power Hovers Below IPO Price

The Reliance Power (RPower) counter saw high volume of 38.61 lakh shares shares in opening trade on BSE. Reliance Power had priced IPO at the top end of the Rs 405-450 price band. Retail investors were offered shares at Rs 430 i.e. at a discount of Rs 20 per share.

Reliance Power will also be simultaneously listed on the futures and options segments of BSE and NSE. Lot size of Reliance Power on NSE''s futures and options segment is set at 450. Reliance Energy (REL) and closely held promoter group company, AAA Projects hold equal 45% stake in Reliance Power. Reliance Power IPO had got overwhelming investor response. The issue had got an aggregate commitment of over Rs 7.50 lakh crore, as against the issue size of Rs 11,560 crore. With around 42 lakh shareholders, Reliance Power will be the largest shareholder base company among the companies listed on the stock exchanges. The qualified institutional buyers (QIBs) category was subscribed 82.61 times, the non institutional investors portion was subscribed 190.02 times and the retail portion was subscribed 14.87 times.

Reliance Power is developing 13 power generation projects with a capacity of 28,200 megawatt (MW). These 13 projects are to be executed over the next eight years. All power projects, except one at Dadri in Uttar Pradesh are to be executed through various subsidiaries of the company and are currently under various stages of development. The company plans to use the IPO proceeds to fund subsidiaries to part-finance the construction and development costs of its projects under development and for general corporate purposes.

Gammon Infra To Go Ahead With IPO Plans

MUMBAI: Unfazed by two major companies, Emaar and Wockhardt Hospitals, withdrawing their initial public offers, Gammon Infrastructure Projects today said it will go ahead with its plans to tap the capital market.

"Yes, we are going ahead with the IPO. Our merchant bankers have advised us to go ahead with the issue," Gammon Infrastructure Managing Director Parvez Umrigar told reporters.

Though the company has not revealed how much it will raise, according to indications in the market it would be around Rs 300-500 crore.

Emaar and Wockhardt Hospitals withdrew their IPOs earlier this week. Emaar planned to raise Rs 6,400 crore while Wockhardt Hospitals was planning to mop up Rs 650 crore.

"Infrastructure continues to be the favoured sector for investment. We are raising a small amount. So we should not face any problems," Umrigar said.

On Monday, Gammon Infrastructure would file with the Registrar of Companies and once it gets the nod it would announce the price-band of the IPO.

At present, promoters hold 90.5 per cent in Gammon Infrastructure. The current share capital of 12.8 crore would increase by 1.65 crore after IPO, taking the total share capital to 14.45 crore.

Reliance Power Lists At Rs 530 On NSE

MUMBAI: Shares of Reliance Power Monday listed at Rs 530 on the NSE, higher by Rs 80 compared with the issue price of Rs 450 per share. Retail investors, who got a discount of Rs 20 on the issue price, stand to gain Rs 100. The stock touched low of Rs 401.10.

On the BSE, the stock listed at Rs 547.80. The stock touched a high of Rs 599.90 and low of Rs 420.05. The listing of Anil Dhirubhai Ambani group's first IPO after the demerger has been through troubled waters, with analysts casting doubts over valuation given that the company was yet to being operations.

This saw the grey market premium for the stock fall to Rs 150-155 from Rs 450 before and on the opening day of the issue on Jan 15. The withdrawal of Wockhardt Hospitals and Emaar MGF IPOs last week also cast a shadow over the companys listing, in an already volatile market.

People looking at just grey market premiums are taking a coloured view, chairman Anil Ambani said in an interview to The Economic Times. He also brushed aside questions over valuation, saying the IPO receiving commitments of nearly Rs 7,50,000 crore was the greatest testimony that the IPO was attractively priced.

Meanwhile, Bombay Stock Exchange's Sensex was at 17,464.89, down 1.44 per cent or 252.19 points from Friday's close. National Stock Exchange's Nifty was down 2.09 per cent or 106 points lower at 5013.45.

IPO Opening Today

1) GSS America Infotech Ltd.

Opening Date: 11/02/2008
Closing Date : 15/02/2008

Reliance Power IPO Under Pressure

Anil Ambani's mega Reliance Power IPO is geared to be listed on Monday and the Emaar MGF IPO withdrawal might cast its shadow on the listing. Though the grey market premium has failed sharply over the past few weeks because of the volatility, analysts still expect it to list at least Rs 150 above the offer price. All eyes are now on Monday when Reliance Power is expected to list around Rs 600 per share as against the IPO offer price of Rs 450 per share. The Grey market premium, which has fallen sharply in the last two weeks, is still ruling between Rs 120 - 140 per share. But if Reliance Power lists below Rs 550, HNIs may have little option to sell as it will barely cover their cost per share, given the high interest charges. Reliance Power's IPO may have been oversubscribed a record 73 times but the one uncanny similarity with Emaar MGF is that both companies are yet to show any real profits.

GSS America Infotech 34.97 Lakh Share IPO To Open On Monday

MUMBAI: GSS America Infotech will hit the capital market on Monday with a public issue of 34,97,495 equity shares of Rs 10 each through 100 per cent book building process. The company has fixed the price band at Rs 400-440 per share. The issue closes on Friday.

The issue comprises of 1,57,495 equity shares for employees and 33,40,000 share net issue to the public, constituting 25.11 per cent of the post issue paid up capital.

GSS America Infotech, a total IT solution provider, plans to utilize the funds for setting up art of global delivery centre at Hyderabad, overseas offices, meeting the working capital requirements, and for acquisitions. Presently the company has two Global Delivery Centers at Jubliee Hills and Hitech City.

It also plans to acquire facilities in Europe, Middle East and Far East. These will look after implementation and marketing functions in their respective regions. These offices are expected to stabilize their functions and establish themselves in 2 years from start-up, spanning fiscal 2008, 2009 and 2010.

The company has acquired an office in Dubai. It is a key component of its strategy to grow through acquisitions and strategic parternerships

Wockhardt Hospitals Scraps IPO

Wockhardt Hospitals have withdrawn their IPO due to poor response form the investors. The authority of the hospital said that they would refund the IPO money in 15 days.Sources said that the IPO has been withdrawn in the larger interest of investors and will be taken up again at an appropriate time.

Indian IPO Market Seen In Better Shapea

MUMBAI: It is a paradox. While initial public offerings (IPOs) are evoking frosty responses from investors at the moment, India is being lauded as the saviour of the ailing global IPO market with $3.3 billion worth of proceeds from eight deals. This makes India the largest IPO market in the world so far this year.

According to Thomson Financial, the bulk of the volumes came from the biggest IPO deal so far this year — Reliance Power's $3 billion IPO on January 21.

Meanwhile, Emaar MGF yet again lowered its price band as the bidding process has been extended by three days to February 11. The revised price band stands at Rs 530-630, against Rs 540-630 earlier. Emaar MGF’s IPO, at $1.6 billion is estimated to be the second largest IPO in the world so far this year, behind Reliance Power's $3 billion IPO.

The price band has been revised considering the prevailing market sentiments and the developments in the financial markets in India and globally, sources close to the development told ET. The company had started off with a price band of Rs 610-690 for its initial public offering of 10.25-crore equity shares of Rs 10 face value.

As per NSE data on February 6, Emaar MGF’s QIB portion was subscribed 0.87 times, the non-institutional investors category, 0.98 times and retail, 0.41 times.

IPO Closing Today

1) Emaar MGF Land Ltd.

Opening Date: 01/02/2008
Closing Date : 06/02/2008

2) Manjushree Extrusions Ltd.

Opening Date: 31/01/2008
Closing Date : 06/02/2008

Reliance Infratel To Mop Up Rs 6,000 Cr Via IPO

Mumbai: Reliance Infratel, the tower subsidiary of Reliance Communications, is mulling to mop up Rs 6,000 crore via an Initial Public Offering (IPO). The company has filed the Draft Red Herring Prospectus with the Securities and Exchange Board of India (SEBI). The Anil Ambani group company has proposed to offload 10.05 per cent stake to the public, which puts the valuation of the company at around Rs 60,000 crore. The IPO follows that of another group company, Reliance Power, which is to be listed on February 11. According to the DRHP, Reliance Infratel has proposed to offload 8,91,64,100 equity shares of Rs 5 each at a price that will be decided through the book building process. Around 60 per cent of the issue will be allocated to Qualified Institutional Buyers (QIBs), with 5 per cent for mutual funds, and 30 per cent to be allocated on a proportionate basis to retail individual bidders.

IPO Closing Today

1) Tulsi Extrusions Ltd.

Opening Date: 01/02/2008
Closing Date : 05/02/2008

2) IRB Infrastructure Developers Ltd.

Opening Date: 31/01/2008
Closing Date : 05/02/2008

V-Guard sets IPO price band at Rs 80-85/share

MUMBAI: V-Guard Industries has fixed the price band of its initial public offering of 80 lakh equity shares, of Rs 10 each, in the range of Rs 80-85 share. The net issue to the public comprises 76 lakh equity shares. The issue will constitute 26.80 per cent of the fully diluted post issue capital. CRISIL has assigned IPO grade "3/5".

At the lower end of the price band, the company would raise Rs 64 crore, and at the upper, Rs 68 crore.

The Kerala-based company is engaged in the manufacturing and marketing of electronic voltage stabilizers, monobloc, jet, submersible, compressor pumps and electric motors, insulated electrical cables (house wiring, industrial), electric storage & instant water heaters, solar water heaters, ups, electric fans and is also in generation of power in a small way.

V-Guard is present in 16 states with eighteen branches including head office located in Cochin. Products are sold through a network of over 7,000 retail dealers and 105 distributors pan-India.

Capital raised from the issue will be deployed to set up cable manufacturing facilities in Coimbatore and Uttaranchal, enameling plant at Coimbatore, development and pilot production plants for water heaters, fans and pumps in Himachal Pradesh and Coimbatore, and service and distribution centers at Bangalore, Hubli and Vijaywada.


V-Guard has been making profit and paying dividends consistently since the last five years. The company achieved turnover of Rs 222.27 crore in 2006-07, a CAGR of 19.06 per cent over 2002-03. Profit after tax grew at CAGR of 28.83 per cent to Rs 13.49 crore in 2006-07 from Rs 4.899 crore in 2002-03.

Rel Tower Plans IPO To Raise Rs 6K cr

MUMBAI: Anil Ambani’s appetite for raising funds from the primary market seems to be insatiable. Barely a fortnight after his Reliance Power completed the country’s biggest public issue, another company from the group Reliance Telecom Infrastructure (RTIL) is gearing up to raise nearly Rs 5,000-6,000 crore through an initial public offering.

The company has decided to file the draft red herring prospectus with the market regulator Sebi this week, it is learnt. The list of merchant bankers appointed for the IPO includes J P Morgan, Enam, UBS and ABN Amro.

Bankers close to the development said RTIL will sell nearly 10% of its post-issue share capital through the IPO which will put its valuation more than double of what it achieved in July when it privately placed 5% stake to a group of institutional investors. RTIL, a 95% subsidiary of Reliance Communications (RCOM), sold the stake for Rs 1,400 crore to a host of investors including George Soros, HSBC, Fortress Capital, New Silk, Galleon, DA Capital and GLG Capital in a deal which had put its valuation at Rs 27,000 crore.

Going by the IPO size, the equity valuation of RTIL, a company engaged in the business of building, owning and operating communications towers, will be around Rs 50,000-60,000 crore. This will translate into nearly Rs 250-300 per RCOM share. The RCOM stock closed at Rs 612.15 on Friday on the BSE. When contacted, a spokesperson for the group declined to comment.

RCOM demerged its tower assets in RTIL last year in a move which was followed by most telecom companies in India. RTIL has a presence in all 23 telecom circles in the country. It has a 10-year master services agreement to provide passive telecom infrastructure to RCOM. Additional tenants in the form of external wireless operators on RTIL's towers will provide incremental growth for it.

Bankers found the increase in number of towers responsible for the possible increase in valuation. “RTIL had 14,000 towers across the country when the first stake sale happened in July. Now, it will end up this financial year with 40,000 towers. Also, it plans to add another 20,000 towers next year. With new players getting into the 2G and 3G spaces, the tenancy ratio for every tower is expected to go up to four. In short, the business proposition of the company looks more bright than what it was in July,” said a person related to the developments.

RTIL is putting in an investment of Rs 16,000 crore this year and is expected to pump in Rs 8,000 crore more next year. It has a minimum of four tenancy slots and it is in the process of upgrading this to host seven tenants by 2009. It expects to reach the one lakh tenancy figure this week.

Reliance Power, another R-ADAG group company, last week completed the allotment of shares of its Rs 11,560-crore IPO. The issue helped Reliance Power to became India’s biggest company in terms of the number of shareholders (42 lakh). RNRL had close to 22.3 lakh shareholders at the end of December 2007, followed by the Mukesh Ambani-led Reliance Industries with close to 20.6 lakh shareholders. Reliance Communications is the fourth-largest in this list with around 19.8 lakh shareholders. Reliance Petroleum has close to 16.9 lakh shareholders.

Emaar MGF Reduced Its Price Band

Emaar MGF, a real estate firm, which is entering the capital market on Feb 01 with a public issue of 10.25 crore equity shares of Rs 10 each through a 100 per cent book building cuts its price band to Rs540-630 per share from the earlier Rs610-690. The price band was reduced with an aim to attract more investors to its issue by considering the prevailing market conditions and developments in the domestic and global finance markets. At the upper end of the band, the company would be able to raise about Rs 6,457 crore while at the lower end, it would mop up around Rs 5,535 crore.

Emaar MGF, which is a joint venture between Dubai-based Emaar Properties and India's MGF Development. . In the Emmar MGF JV, Emaar has 41.9 per cent stake while MGF Development has 53.3 per cent share.

JSW Energy Filed Papers For IPO

JSW Energy has filed its papers with SEBI for its proposed initial public offering of 6,32,25,000 shares of Rs10 each. JSW Energy plans to raise over Rs 3,500 crore from the issue, to finance construction and development of identified projects aggregating to 3,410 MW in capacity and to repay debt. It has 3,670 MW of generating capacity in the operational, construction or implementation phase as well as has power generation projects at early stages of development with a combined installed capacity of 9,600 MW.

JSW Energy is part of the Sajjan Jindal-led JSW group, which has presence in steel, power, cement, aluminium, software, and infrastructure sectors. JM Financial, Kotak Mahindra Capital and ICICI Securities are book running lead managers to the issue.

Wockhardt Hospital IPO Opens For Subscription

Wockhardt hospitals' initial public offering opens for subscription on February 1 instead of January 31. The hospitality major's IPO that opened on Thursday did not register even a single bid on the first day due to technical glitch that followed its revised price band. Wockhardt Hospitals had lowered its price band to Rs225-260 on Wednesday from its earlier Rs280-310. This late development needed to be incorporated into the 'systemic configuration' at the stock exchanges and this is what led to the confusion on day one. Bids that were made on Thursday were not reflected on the system because of the revision in the price band that required the system to be reconfigured. The bids would get reflected only after they are entered in the system, a process that was kept on hold on Thursday.

The SEBI approval was pending given that the company had issued a statement late in the evening on January 30, revising the price band. Wockhardt is the first company to revise its issue size and price band post the recent plunge in equity markets.

Future Capital Holdings Ltd IPO Listed At Rs1,044 On BSE With A Premium Of 36.47%

Future Capital Holdings Ltd (FCHL) the financial arm of Future group got listed on Friday with a premium of 36.47% at Rs1044 at the BSE against the issue price of Rs765. After touching the high of 1100, the scrips fell heavily to touch a low of Rs845 on the back of heavy profit booking across the counters. While in NSE, the scrip opened at Rs1081 and touched a low of Rs825.

The issue opened on January 11 2008 and closed on January 16 2008. The company has fixed the issue price of Rs765 per share for the IPO of 6,422,800 equity shares for Rs10 each. The issue was subscribed around 133 times. The qualified institutional bidders` portion was subscribed to approximately around 180 times; the non institutional investors` portion was subscribed to approximately around 84 times; and the retail portion was subscribed to approximately around 55 times.

Future Capital To List Amid Choppy Markets

Kishore Biyani's Future Capital, the first IPO of 2008, is all set to list on Feb 1, amidst choppy markets. Management, however, is focusing more on executing its new business plans than worry about the fate at the markets. The company has raised a $350 million logistics fund in partnership with the US based logistics company Aeroterm. The logistics fund will primarily focus on building warehouses and operate it on a rental model. The idea is to cater to the growing supply chain demand in India. The fund will also look at investing in transportation business. Logistics as an asset class has huge developmental need. Warehouse aren't pretty but its a pretty business to be in. As retail being at the core of the company there will be a retail fund sooner or later. Future capital has already committed Kshijij fund entirely and expects to deploy horizon fund in next 60 days. Their hospitality fund is also active given the first movers advantage in the real estate fund category.

IPO Closing Today

1) Shriram EPC Ltd.

Opening Date: 29/01/2008
Closing Date : 01/02/2008

Raj Television - Utilisation Of IPO Proceeds

Raj Television Network Ltd has informed about the following:

Against the total projected utilization of Rs 41.55 Crores upto December 31, 2007 from the IPO funds, an amount of Rs 21.30 Crores has been utilized towards Acquisition of contents and strengthening facilities, purchase of new equipment and up gradation of existing equipment, general corporate purpose and the balance proceeds from IPO after meeting the IPO expenses, pending utilization have been invested in Fixed Deposits with Banks.

IPO Opening Today

1) Emaar MGF Land Ltd.

Opening Date: 01/02/2008
Closing Date : 06/02/२००८

2) Tulsi Extrusions Ltd.

Opening Date: 01/02/2008
Closing Date : 05/02/2008