Three Banks Received SEBI's Approval For IPO Money - 29 Aug 08

Under SEBI's new scheme, the three banks - Corporation bank, Union Bank of India and HDFC bank have received SEBI nod for offering the new payment facility for IPOs. As per the new scheme, the investor's application money will not be blocked with the issuer of IPO till allotment is done. These three banks can now be part of the Applications Supported by Blocked Amount (ASBA) process.

This will enable the applicants to keep money in the banks till allotment of shares. The application money to remain in the applicant's bank account till the allotment of the shares rather than waiting for the refunds by the companies to the applicants in case of non-allotment of shares. After the allotment of the shares, only the required amount of money will be debited from the applicants' accounts. According to the release issued by SEBI, these three banks are eligible to act as Self Certified Syndicate Banks (SCBS) in public issues which open on or after September 1.

Supreme Court Told SVPCL To Refund IPO Money - Aug 23 , 2008

The Supreme Court has asked Hyderabad-based SVPCL to refund the application money along with interest to the investors who had applied for the company's initial public offer.

The IPO was floated in October last year. Though the issue was fully subscribed, BSE denied permission for the listing of the shares on the exchange as the company had inevidently mentioned on the cover page of its red hearing prospectus that at least 50% of the net issue to the public shall be allocated on proportionate basis to QIB, whereas legally it should be "up to" instead of "at least".

The company than approached SEBI as well as BSE but in the mean time an investor had filed a complaint with Sebi against the company for allegedly wrongdoing.

The company approached BSE to list the shares on January 7, but this was turned down by it as the 10-week period from the date of closing of the IPO has lapsed, which was required under Section 73.

Sebi on the other side told the company to let BSE to decide on the matter. The BSE asked UTI Securities to provide an undertaking, certifying that Section 73 has been complied with. But UTI Securities did not oblige as the 10-week period had lapsed. Consequently, BSE refused permission to the company to list. Against this the company challenged BSE in Andhra Pradesh High court by stating that the delay was on account of pending complaint with SEBI

However, the decision by Supreme court will provide relief to nearly 10,000 investors, who are expected to get a refund in eight days along with 15% interest once SVPCL receives the copy of the order.

Oil India Plans IPO In November - Aug 20, 2008

Oil India Ltd, state run explorer, plans an initial public offering of 2.64 crore shares shares in November and would file a revised DRHP next month after updating information up to June 30, 2008, according to company official on Tuesday.

"We are in touch with our bankers for exact timing of the IPO. Hopefully market conditions will improve by November and the IPO is likely to open in the first half of November," company sources said.

Mines & Minerals India's IPO Subscribed 1.15 Times - Aug 14 , 2008

Resurgere Mines & Minerals India's IPO was subscribed 1.15 times on the last day of the offer i.e. on Wednesday, as per the NSE website.

The company received 51,25,020 bids, out of which around 3,94,380 bids were received at the cut-off price.

The qualified institutional buyer's portion got subscribed 0.98 times, the non-institutional investors was subscribed 0.70 times, retail investors portion subscribed 0.02 times and the employee portion was subscribed 0.10 times.

The price band of the issue has been fixed between Rs 263 to Rs 272, and it closes on August 13.

The company plans to utilize the IPO proceeds for purchasing plant and machinery and purchase railway rakes to set up own logistics infrastructure facilities and funding working capital requirements.

IPO Of PSU Insurers - Aug 14 , 2008

The General Insurance Officers All India Association has refused the Union Government''s move to introduce an initial public offer (IPO) in the four public sector general insurance companies. Mr P. P. Mohanan, General Secretary of the Association, Kerala, said that the projected amendment in the General Insurance Business (Nationalisation) Act of 1972 to mop up capital from the markets via an IPO is against the assurance given by the Union Government while moving the Insurance Regulatory and Development Authority (IRDA) Bill in 1999. In order to raise the equity base of the four PSU general insurance companies, he advised that the government should think of other alternatives.

Ipo Closing Today - Aug 13 , 2008

Resurgere Mines & Minerals India Ltd.

Opening Date : 11/08/2008.
Closing Date : 13/08/2008.

Ipo Open Today - Aug 11 , 2008

Resurgere Mines & Minerals India Ltd

1. Opening Date : 11/08/2008.
2. Closing Date : 13/08/2008.

Austral Coke IPO Opens For Subscription - Aug 07 , 2008

MUMBAI: The initial public offering of Austral Coke & Projects Ltd opens Thursday for subscription. The issue is for 72,60,000 equity shares (excluding green shoe option of 10,89,000 shares). The IPO closes on Aug 13.

The company has priced the Rs 10 face value share in the band of Rs 164 to Rs 196. The issue is lead managed by Allbank Finance

Austral Coke mainly manufactures low ash metallurgical coke. It is also in the business of equipment rental, refractory and textile trading.

The company plans to use the IPO proceeds to finance its expansion. It is planning a 150,000 tonne per annum LAM coke unit and an 8 mw captive power plant through waste heat recovery. The project is coming up at Sindhudurg in Maharashtra.

The company also plans to utilize the funds for acquiring coal mines either in Indian or abroad and retire high cost debt.

Austral Coke has concluded pre-IPO placement of 27,40,000 shares to Somerset India Fund at Rs 196 per share, aggregating to Rs 53.70 crore.

CARE has assigned IPO Grade 2 to the issue, which is being lead managed by Allbank Finance.

Resurgere Mines & Minerals India Ltd’s Public Issue Of Equity Shares - Aug 07 , 2008

MUMBAI: Resurgere Mines & Minerals India Ltd’s public issue of 4,450,000 equity shares opens on Aug 11. The price band has been fixed at Rs 263 to Rs 272 per share of Rs 10 each. The 100% book built issue closes on Aug 13.

The issue comprises of reservation of 250,000 shares for employees, leaving the net issue to the public at 4,200,000 shares. The net issue would constitute 14.72 per cent of the post issue paid-up capital.

Motilal Oswal Investment Advisors is the book running lead manager and PL Capital Markets and Ashika Capital are the Co-BRLMs. The shares are proposed to be listed on BSE and NSE.

Resurgere is engaged in the business of extraction, processing and sale of mineral products and exploration and development of mining assets.

The company proposes to utilise the net proceeds to part finance the purchase of plant and machinery valued at Rs 128.56 crore for setting up its own extraction and crushing facilities at the mines and purchase of six railway rakes worth Rs 116.36 crore to set up own logistics infrastructure facilities, besides meeting working capital needs.

Resurgere proposes to part finance the cost through term loans of Rs 86 crore to be raised from banks, Rs 43 crore through private equity funding from Merrill Lynch International and Rs 13.73 crore through Pre-IPO allotment.

Merrill Lynch International holds 3,000,000 shares, India Business Excellence Fund-I holds 910,000 equity shares, IL&FS Trust Co. holds 402,500 shares, Motilal Oswal holds 250,000 shares and Raamdeo Agarwal holds 200,000 Shares in the company.

New IPO Payment Norms By SEBI - Aug 06 , 2008

Sebi on Tuesday announced an alternate payment system for public issues to ensure the process works smoothly. In this the retail investors will not have to deposit money upfront while applying for shares. This will be launched by August-end as a pilot project. While both the current system of payment through cheques and alternate system would co-exist, as per the Sebi chairman.

The new payment system called additional mode of payment through Applications Supported by Blocked Amount, will exempt retail investors from making full advance fees and the amount to be retained in bank accounts till the completion of allotment.

The alternate payment system is dependent on 'Self-Certified Syndicate Banks', which would accept the application of retail investors.

Under the scheme, the money an investor pays while applying for an IPO will remain in his bank and earns interest till the allotment is made. These banks will block the fund to the extent of bid amount, upload the details in the electronic bidding system of BASE or NSE and then unblock once the basis of allotment is finalized and transfer the amount for allotted shares to the issuer.

MCX Postponed Its IPO - Aug 05 , 2008

Multi Commodity Exchange of India Ltd (MCX) has postponed its initial public offering (IPO) for the time being. MCX, a unit of Financial Technologies India Ltd, had filed an offer document with SEBI in February.

According to Joseph Massey, managing director "Taking into consideration the market scenario and the advice of the merchant bankers to defer the issue, MCX has decided to postpone its IPO for the present".

Nu Tek India IPO Fully Subscribed On The Last Day - Aug 05 , 2008

Nu Tek India's IPO got fully subscribed till the final day of offer on Friday. It plans to raise about Rs 86.4 crore through its initial public offer,

The issue received demand of 1.63 times the shares on offer, receiving bids for over 73.49 lakh shares as against on offer of 45 lakh shares, as per the NSE data. The The qualified institutional buyers got subscribed 2.05 times, while the non-institutional investor portion subscribed 1.78 times. The retail investor portion got fully subscribed on the final day. The public issue of 45 lakh shares of Rs 10 each, comprised of fresh issue of 3.5 lakh equity shares and an offer for sale of 10 lakh shares.

The price band of the issue has been fixed between Rs 170 and Rs 192.

The company intends to utilize the IPO proceeds to meet capital expenditure cost along with overseas acquisitions and augmenting the long term working capital requirement. CRISIL has been assigned an IPO-grade of three out of five to the issue.

The company would list its shares on Bombay Stock Exchange and National Stock Exchange. The book running lead manager to the issue are SPA Merchant Bankers and India Infoline.

China Rongsheng Plans $2 Bn-Plus IPO Abroad - Aug 04 , 2008

SHANGHAI: Chinese shipbuilder Jiangsu Rongsheng Heavy Industries Co Ltd aims to raise more than $2 bn through an initial public offering overseas, a company source familiar with the matter said on Monday.

The timing of the listing will depend on market conditions but the company is proceeding quickly with preparations, the source added.

Goldman Sachs Group Inc is helping the private-sector Chinese firm with the share offering, the source said. The company is considering the Hong Kong stock market as one option for its IPO, sources familiar with the situation have said.

An investment unit of Goldman Sachs, private investment fund DE Shaw and another Chinese private equity fund paid $250 mn for a minority stake in Rongsheng last year, the source said.

Nu Tek India IPO Subscribed 0.54 Times - Aug 01, 2008

The initial public offering of Nu Tek India was subscribed 0.54 times on Thursday, as per the NSE website. The issue will close on August 1. The issue has a price band of Rs 170 to Rs 192 per share.

The public issue portion received 24,28,830 bids whereas around 79,050 bids were received at the cut off price. The qualified institutional buyers' portion was subscribed 0.67 times, non-institutional investor portion was subscribed 0.32 times, retail portion was subscribed 0.01 times and the employee portion did not receive any subscription.

The price band of the issue has been fixed between Rs 170 and 192. The public issue of 45 lakh shares of Rs 10 each, comprises of fresh issue of 3.5 lakh equity shares and an offer for sale of 10 lakh shares.

The company intends to utilize the IPO proceeds to meet capital expenditure cost along with overseas acquisitions and augmenting the long term working capital requirement.