IPO - At A Glance : Indian-commodity.com

Government Holds Oil India Postpones IPO To Next Fiscal - Dec 23, 2008

2008-12-23T10:33:00.002+05:30

Initial Public Offer of Oil India Ltd has been put off to the next fiscal on account of unstable market conditions. The nation's second biggest state-run oil and gas explorer was to launch its IPO of 2.64 crore equity shares on November 10 as per the earlier schedule. However, the turnaround of fortunes on the stock markets led to its deferment by a few weeks. It now has been put back for at least a couple of months.

According to the OIL Director (Finance) S Ananthkumar, Market is volatile and conditions bad for an IPO. We do not think we can go ahead with the plans under such a scenario. We are closely watching the market conditions. Whenever it appears that the market has stabilized, we will launch it. OIL has capital market regulator SEBI's approval, valid till September 10, 2009. IPO timing will have to be reworked in consultations with the government.

The government holds 98.13 per cent stake in OIL, which produces nearly four million tonnes of crude oil yearly. Together with the IPO, government is to sell 10 per cent of its current holdings in OIL to Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum.

IPO Activity In May Lose Steam Witnessed A Dramatic Fall In Volume - Dec 22, 2008

2008-12-22T13:37:00.001+05:30

New Delhi: Initial public offerings, which had been the stars in the bull market last year have lost their attraction this year and are likely to face bleak days ahead in 2009. Dalal Street, which saw a mega offering by Anil Ambani Group firm Reliance Power hitting the capital markets this year, fell prey to the bears with the benchmark index Sensex plunging by over 10,000 points from its peak in January. IPO activity in 2008 witnessed a dramatic fall in volume, which declined nearly 51 per cent to around Rs 19,360 crore this year as against nearly Rs 40,000 crore at the end of 2007, as per data compiled by NexGen Capitals, the merchant-banking arm of brokerage firm SMC Global Securities.

However, the decline in volume would have been sharper if Reliance Power's mega offering of close to Rs 12,000 crore is excluded from the IPOs in 2008 (till December 10).Analysing the sharp downturn in the primary markets due to the bearish trends in the secondary market, most experts believe 2009 would be a difficult year and prospects for new issues remain weak. Echoing the sentiment, global consultancy KPMG's head of the private equity department, Vikram Uttamsingh, said the meltdown in the stock markets has led to dwindling offers in the primary market, which would be more pronounced in the coming year.

Mandatory Ipo Grading Will Continue The Compulsory - Dec 18, 2008

2008-12-18T14:10:00.002+05:30

Security and Exchange Board of India (SEBI), has decided to continue the compulsory grading of IPOs. Earlier, it was determined that the decision would be reviewed as per the experience gained. There were doubts on the significance of the present system as the grading does not reflect in the performance of these issues in the markets.

According to a source, they have decided to maintain a status quo that is to continue to have a mandatory grading for IPOs. As per the members of the Primary Market Advisory Committee (PMAC), the decision is taken as it is too early to come to a conclusion on the effectiveness of the present policy of mandatory IPO grading.

However, many analysts believe that mandatory grading requires modification since grading does not reflect in the performance of issues in the market.SEBI had made grading mandatory for all IPOs where draft offer documents filed with the regulator on or after May 1, 2007, and made issuers accountable for the cost of grading. After that, about 100 IPOs have been graded by credit rating agencies.

Public Gain Loss Ratio Of Ipos In Last 5 Years At 1:4 - Dec 15, 2008

2008-12-15T15:36:00.001+05:30

Initial public offerings (IPOs) ratio of gain-loss stood at 1:4 in last 5 years as analysis of 257 IPOs, which were launched during the last five years, showed that investors have lost money in the 204, while in balance 53 investors are still in the profit. This is despite the current turmoil in the market, which has shaved about 55% off the BSE Sensex in the last 11 months.

The IPOs showing profit are Educomp Solutions and Indiabulls Financial Services, which have given over 1,000% return since their respective IPOs, after adjusting for bonus, split, demerger of businesses etc. Apart from these two, there are nine stocks, which have at least doubled investors' money since IPO.

Gemini Engi Fab Ltd Files Draft Red Prospectus For IPO - Dec 12, 2008

2008-12-12T13:32:00.002+05:30

Gemini Engi-Fab Ltd, a Mumbai based manufacturer of industrial fabrication related products has filed a draft red herring prospectus with SEBI for an initial public offering of 55 lacs equity shares of Rs 10 each. The price will be decided through 100 per cent book-building process. The shares will be listed on BSE and NSE.

The issue comprises of a net issue of 27.5 lacs shares of Rs 10 each to public, out of which 5 per cent that is 1,37,500 shares will be allocated to mutual funds and remaining will be allotted to qualified intuitional buyers. Almondz Global Securities is appointed as a book running lead manager and Karvy Computershare as registrar to the issue.

The company wants fund to set up a new manufacturing unit at Umbergaon, Gujarat. This facility would have better machinery like a plate bending machine, a tube sheet drilling machine, SAW machines with motorized rotators and electrically operated cranes which will not only help to handle larger material but also to work on it with better precision. This facility would also handle more equipment with a larger work space.

IPO Validity Extended From Three Months To One Year - Dec 11, 2008

2008-12-11T12:41:00.002+05:30

SEBI on December 04 granted bigger flexibility to corporates for their fund-raising plans and also outlined measures to prevent the panic redemptions. Market regulator has approved a proposal to extend the validity of an initial public offering (IPO) approval from three months to one year, on requests from issuers. According to the prior rule, companies had to launch their IPOs within three months of securing SEBI's approval. For any reason failure to complete the offering would have meant approaching the SEBI for a new approval.

For many companies the new rule brings great relief, who were earlier forced to defer their IPOs even after obtaining SEBI approval. Under the new rule, these companies can go public within one year of receiving the regulator's approval. However, SEBI has also specified that companies will have to update the document with fresh numbers and any other material changes whenever required.

Govt Wants To Complete Due Diligence For IPO Launch - Dec 11, 2008

2008-12-11T12:39:00.002+05:30

The Department of Disinvestment (DoD) has instructed public sector undertakings (PSUs), looking to raise funds from the capital market, to sort out administrative issues and complete their due diligence processes. In order to ensure that time structure to make offer in the capital market, will not clash with each other, the department will specify a time frame for each company.

According to a senior DoD official, "We're ready with IPOs of Oil India and National Hydroelectric Power (NHPC). The other PSUs have been directed to expedite their due diligence process so that they do not face any hitch while filing the red herring prospectus (RHP) with the Securities & Exchange Board of India (Sebi). This will help in streamlining the whole process and determining which PSU should be allowed to tap the market first.The government also wants PSUs and their administrative ministries to solve differences with employees to ensure that there is no difficulty during filing the prospectus.

Fortune Of Prospects Large Ipos Are Uncertain - Nov 27, 2008

2008-11-27T15:23:00.000+05:30

Fortune of large-sized initial public offerings (IPO) like Adani Power and Future Ventures, India hangs in balance due to the current market turmoil. The proposed IPOs by these companies to rise over Rs 8,000 crore are likely to be postponed, according to some merchant bankers, as the validity of Sebi's approval to the offers, would end in the next few weeks.According to Mr K Srinivas, MD Mumbai-based merchant banking firm Saffron Capital Advisors.

Conditions are extremely non-conducive for IPOs of any reasonable size. Only those companies, which cannot abandon their projects in the middle, will make IPOs in the current market. Primary market conditions will continue to be dull until there is some improvement in valuations in the secondary market.

In the recent past failures of a few high-profile offers are forcing prospective issuers to take a cautious approach on the primary market, according to the bankers. Even after receiving clearance from Sebi, most of them are unwilling to proceed with their offers due to fears that investors may not respond positively.

Exceedingly bearish secondary market conditions with no sign of recovery since January this year has caused a major hit for fund mobilization through equity public issues. Around Rs 17,000 crore (38 issues) has been raised between January and October 2008, compared with Rs 45,000 crore (106 issues) in 2007, according to Prime Database.

Previous Ipos To Still Showing Profits - Nov 27, 2008

2008-11-27T15:20:00.001+05:30

According to a study, initial public offers before 2005 still in green. However, IPOs made in the last four years are showing negative returns on an aggregate basis.The study, which calculated the returns of IPOs made in the last five years on the basis of mark-to-market (MTM) prices as of Tuesday, found that the 19 IPOs made in 2004, with a total investment of Rs 248 billion, have a MTM of Rs 339.7 billion, representing a return on investment of 36.92 per cent. Among those, 10 or 47 per cent are showing losses and only nine or 53 per cent are showing profits.

In 2005, there were 39 IPOs with a whole investment of Rs 90.48 billion. Their MTM is now Rs 70.12 billion, signifying a negative return of 22.52 per cent. Among those, 14 or 36 per cent are in the positive territory while 25 or 64 per cent are in the negative zone.In 2006, there were 79 IPOs with a total investment of Rs 176.84 billion. Their MTM is now Rs 114.96 billion, representing a negative return of 34.98 per cent. Among those, only nine or 11 per cent are in green, and as many as 70 or 89 per cent are in the red.

In 2007, there were 103 IPOs with a total investment of Rs.327.28 billion. Their MTM is now Rs 141.44 billion, representing a negative return of 56.79 per cent. Among those, only nine or 9 per cent are showing positive returns and as many as 94 or 91 per cent are in the red.

In 2008, there were 37 IPOs till date with a entire investment of Rs 161.84 billion. Their MTM is now Rs 56.12 billion, signifying a negative return of 65.32 per cent. Among those, only three or 8 per cent are showing profit and 34 or 92 per cent are showing negative returns.Within the five years a total of 277 IPOs were made by both private and public sector companies with a total investment of Rs 1.004 trillion. Their MTM is now Rs 722.4 billion, corresponding to a loss of 28.09 per cent.

Govt Shelves Rites Ipo Share Disinvestment - Nov 22, 2008

2008-11-22T13:12:00.000+05:30

Government deferred disinvestment in rail infrastructure company RITES Ltd, due to the current market situation. At the same time government has decided to offload its 10 per cent holding in upstream firm Oil India Ltd. At present, government holds 98.13 per cent stake in OIL, which produces around four million tons of crude oil a year.

Earlier, on January 10 the Cabinet Committee on Economic Affairs (CCEA) had approved RITES initial public offering (IPO) through fresh issue of one crore equity shares and a simultaneous divestment of government's 10 per cent shareholding. The IPO has been deferred until further notice because of existing market conditions and economic turmoil.

Avesthagen Ltd IPO Looking At Biotech Company - Nov 22, 2008

2008-11-22T13:09:00.001+05:30

Bangalore-based biotech company, Avesthagen Ltd, has shelved its plans to raise funds from the primary market due to the economic crises and downturn in the global market. According to the earlier schedule, the company was supposed to launch an IPO this year but now is looking to privet investors for rising money to tackle the crises.

According to Villoo Morawala Patell, chairperson & MD of Avesthagen, "We are looking at raising $30-50 million to ensure that our nine products, which are scheduled to be developed for the next two years, reach the market on time. We will be focusing on the immediate projects first and are in talks with people for that."

Indian Companies Allow IPO Shrinks Valuations - Nov 22, 2008

2008-11-22T13:06:00.001+05:30

The meltdown in the domestic stock market has led the shrunk the country's primary market by more than 10 times during April-August 2008 as against the corresponding period in 2007.According to the data released in the November bulletin of the Reserve Bank of India, only 25 non-government public limited companies. managed tap the capital market in the present market condition to mobilise, a diminutive Rs 2,661 crore between them.

This is more than 10 times lower than amount India Inc earned (Rs 26,957 crore) during April to August 2007.Due to the fear of economic crises, many companies have allowed their IPO clearances to lapse to avoid compromising on their valuations. The chances of drawing a good premium on face value become lower when the secondary market gets battered.

Mandatory IPO Rating To Continue - Nov 14, 2008

2008-11-14T13:52:00.001+05:30

Currently the mandatory grading of initial public offers (IPOs) in India by credit rating agencies will continue. SEBI's Primery Marekt Advisory Committee (PMAC), which had undertaken a review of the grading, has decided go with the process now.SEBI had asked PMAC to evaluate the grading of IPOs that was made mandatory in May, 2007. The industry is criticizing mandatory grading and wants the process to remain optional.

It has argued that the mandatory grading has increased the cost of raising funds along with delay in the IPO process which the market regulator was attempting to make faster and shorter. Grading expenses can be as high as one percent of the total issue size.

For getting rating from at least one agency, which is mandatory for an IPO, a company has to disclose all grades it obtains in the prospectus. Mandatory rating of debt offers has been in practice for sometime now.

Natural Gas Corp ONGC Is Looking At IPO Route - Nov 14, 2008

2008-11-14T13:49:00.001+05:30

Oil and Natural Gas Corp (ONGC) is eyeing at an initial public offering (IPO) of its subsidiary that is building a Rs 13,600 crore petrochemical plant at Dahej. The IPO is being considered around the time of project completion in 2012.According to a senior company official, ONGC is considering selling up to 25% of the equity shares in ONGC Petro-additions Ltd (OPaL), the special purpose vehicle formed for setting up the petrochemical complex at Dahej SEZ.

The company is planning to give 19% equity stake in OPaL to state-run gas utility GAIL India, while another 25% interest may be offered to Petronet LNG and Bharat Petroleum or a strategic partner. ONGC holds 26% stake in OPaL, while Gujarat State Petroleum Corp (GSPC) holds 5% stake.

BSNL IPO Proposal With Unions Govt Goyal - Nov 14, 2008

2008-11-14T13:46:00.002+05:30

Bharat Sanchar Nigam Ltd today informed that the proposal relating to its public offer through divesting 10 per cent of its stake is with the Centre and may get delayed due to the turmoil in capital market.According to BSNL Chairman and Managing Director Kuldeep Goyal, "The BSNL board had cleared the IPO plan of about 10 per cent and we have forwarded it to the government.

It is now with them to decide on the matter and under the present market conditions it was unlikely that government would take forward the issue now. The BSNL unions were also opposing the proposed IPO."

NHPC IPO Unlikely This Financial Year Offering - Nov 07, 2008

2008-11-07T14:58:00.001+05:30

NHPC, state-run hydroelectric power producer has deferred its initial public offering till next year due to weak market conditions.The company had planned to raise nearly Rs 1,670 crore by selling 167 crore equity shares of Rs 10 face-value each.The company's board had approved the IPO along with government's disinvestment of 5 per cent, and filed the Draft Red Herring Prospectus with SEBI for the same.

This deferment of IPO is the second time for the company. Earlier, it has postponed its listing plans last year as independent directors were not on the Board. NHPC proposes to come out with a public issue of about 1,11.82 crore fresh shares and 55.91 crore existing shares of Rs 10 each at a premium. The premium is expected to fetch about Rs 5,500 crore to the company and around Rs 2,800 crore to the government.

The IPO proceeds would be utilized to finance the seven hydro-electric projects of the company, including 44-MW project at Chutak in Jammu and Kashmir along with 2,000 MW Subansiri Lower project in Arunachal Pradesh and 160-MW Teesta Low Dam-IV in West Bengal. NHPC has outlined expansion plans worth Rs 28,000 crore by 2012 and also plans to double its power generating capacity from the present 5,200 MW.

Indian IPO Ratings System Under SEBI Scanner - Nov 06, 2008

2008-11-06T13:38:00.001+05:30

Last year in April, the rating system or grading of Indian initial public offers was made mandatory. Now IPO ratings system is under SEBI scanner. A ccommittee onsisting of 16 members headed by HDFC chairman Deepak Parekh in Mumbai on 4th November discussed on the efficacy of the IPO ratings system. More than 5% of the committee members feel that the present IPO grading by credit rating agencies do not take the price of the issue into account.

According to some members, a higher grade may be misleading. Those plumping for IPO ratings say that such rating is needed as it helps investors benchmark IPOs before investing. According to SEBI rules, IPO grading, is aimed to provide the investor with an informed and objective opinion. But at the same time, irrespective of the grade obtained by the issuer, investors needs to make an independent decision regarding the price before subscribing the shares offered through the public issue.

At present, registered rating agencies, such as Crisil, CARE, Icra and Fitch are doing the ratings. Grades between 1 to 5 are allotted according to the company fundamentals. Further, issuing companies pay Rs 5- 15 lakh to acquire rating from at least one credit rating agency.

Sebi Passed Disgorgement Orders In IPO Share Cases - Nov 05, 2008

2008-11-05T13:21:00.001+05:30

Markets regulator Sebi has passed disgorgement orders of total Rs 1.05 crore in IPO share cases. The order is against against Himani N Patel and Dhaval A Mehta for allegedly cornering shares marked for retail investors in the Suzlon and IDFC public issues. Ms Himani N Patel cornered 10,160 shares intended for retail investors through falsified means, and later sold those shares for a neat profit. She subscribed to the Suzlon public issue and also financed other investors.

Sebi has directed Ms Patel to disgorge the unlawful gain of Rs 33,52,636, within 45 days along with a 10% interest from the date of listing of Suzlon shares. Sebi has also asked Dhaval Mehta to disgorge the unlawful gain of Rs 72 lakh along with interest at 10% from the date of listing of IDFC shares, within 45 days.

Religare Is Planning To Raise Rs 1,000 Cr Through Right Issue - Nov 1, 2008

2008-11-01T13:06:00.000+05:30

Religare Enterprises, a financial services arm of Ranbaxy Group, is planning to rise more than Rs 1,000 through rights offering to its existing shareholders. The company's board is expected to meet on 30th October to consider rising of funds over Rs 1,000 crore at around current price level by further issue of equity shares on rights basis.

Public Offer For NTPC And NHPC Will Come Market - Oct 31, 2008

2008-10-31T18:06:00.002+05:30

Government had informed that public offer for the sale of shares in the power firms NTPC and NHPC will wait till market will become stable. It will come when market conditions will be appropriate as at present situation is not in favour. According to the Power Secretary Anil Razdan, "NTPC's Follow-on Public Offer and NHPC's Initial Public Offer will come when the market conditions are conducive.

CIL Will Come Out With Its Initial Offer Within Three Years - Oct 31, 2008

2008-10-31T13:55:00.000+05:30

Coal India Ltd (CIL), which is a state owned company and received Navratna status last week, is planning to come out with its initial offer within three years. According to Mr Partha S Bhattacharyya, chairman CIL, "The company has to get listed within a stipulated period of three years. We will try to do it well before time. Discussions would begin shortly with the government and other agencies for the initial offering.

Suspended $360 Mn Rights Issue Plan Due To Market - Oct 31, 2008

2008-10-31T13:52:00.001+05:30

Suzlon Energy, world's fourth-biggest wind turbine maker droped a $360 mn rights issue plan due to market condition. The company's other expansion plans will remain on track. The company had planned the rights issue to partly fund its acquisition of a further stake in Germany's REpower from Portugal's Martifer and other minority shareholders.

According to a statement of the company, "In the current global financial meltdown, the fundamentals of the wind industry remain largely unchanged and hence the company's business plans remain on track.

Public Offer For NTPC And NHPC Will Come When Market Ipo - Oct 23, 2008

2008-10-23T18:33:00.000+05:30

NHPC IPO Will Enter The Market When The Benchmark - Oct 21, 2008

2008-10-21T14:15:00.002+05:30

NHPC, earlier which had deferred its IPO due to the turmoil in the market, will try its luck once again when the benchmark BSE index will touch 14,000 mark. According to the earlier plan, it was expected to rise up to Rs 5,500 crore with face value of Rs 1,670 crore. NHPC Board had approved the IPO along with 5 per cent disinvestment of government stake in the first week of August. According to a top official of the power ministry, "NHPC will hit the market as and when it touches 14,000-mark.

Indian Companies Are Not Able Ipo To Raise Funds - Oct 21, 2008

2008-10-21T14:12:00.001+05:30

The global financial condition and liquidity meltdown along with significant drop in domestic stock market is fading hopes of Indian companies to raise funds. Companies don't want to compromise significantly on their valuations battered over the last couple of trading sessions.

According to a statistics available with Delhi-based research firm Prime Database, there are 28 companies against 22 in August, planning to collectively raise Rs 19,463.91 crore, and their IPOs will lapse as on October 17, 2008. This includes some big names like Reliance Infratel and Power Ventures.

According to Mr Prithvi Haldea, Prime Database MD, "The primary market is totally dependent on secondary market, which is in a terrible state. The demand for new paper is obviously very weak in a market like this. When there are no buyers for already listed stocks which have a proven track record in public domain, why would any one risk his money on new stocks.

Ipos Of Indian Public Sector Units Can Restore - Oct 21, 2008

2008-10-21T14:09:00.001+05:30

IPOs of Public Sector Units can restore investor's, which is down due to the current market situation and global financial crises. In an Assocham survey of 300 companies, majority of CFOs expressed their confidence in the Indian public sector units (PSUs) equities.

According to Assocham President Sajjan Jindal, "The government and RBI have been consistently announcing decisions to revive market sentiments to uplift capital market but these have yet to yield the required objectives and therefore the government ought to motivate PSUs to float IPOs.

Indian Oil IPO Deferred On Stock Market Fortune - Oct 17, 2008

2008-10-17T15:26:00.001+05:30

Government has put off the initial public offering (IPO) of oil producer Oil India Ltd (IOL) due to the adverse market condition. Government holds 98.13 per cent stake in OIL, which produces nearly four million tones of crude oil a year. After IPO government holding will come down to 78.43 per cent.

Company had received all approvals for the IPO of .64 crore equity shares from market regulator SEBI and the IPO was planned to enter the market on 10th November but now government is thinking about the timing.

According to R S Pandey , the Petroleum Secratery, "Situation is not very conducive to issue any IPO. One would like to wait for some time.

Indian IPO With High FII Holding Are In Trouble - Oct 17, 2008

2008-10-17T15:23:00.001+05:30

Indian IPO with high FII holding are in some trouble now, as most foreign investors are redusing their exposer to compensate their losses in the US and other Asian Market. Earlier, small investors were investing in the companies, in which the 'bigger bulls' were buying as they were considered to have lot of staying power. But the current market turmoil has proven all these wrong.

An ETIG analysis of all 126 IPOs since January '08 shows that FIIs have been selling hastily to save their capital. In fact in some IPOs, promoters and mutual funds are also offloading their positions and cutting losses. Reliance Power and Cairn India were one of the biggest IPOs in the recent past, which saw decline in promoter holding. Smaller companies even the publicly held companies, which recently approached the capital market, have seen the similar fate.

If things were to continue the same way, the time will come very soon when the small investor community would be wiped out from the Indian equity market.

Indian IPO With High FII Holding Are In Trouble - Oct 15, 208

2008-10-15T14:22:00.000+05:30

If things were to continue the same way, the time will come very soon when the small investor community would be wiped out from the Indian equity market.

Bsnl May Delay Its $10 Billion Ipo On Global - Oct 14, 2008

2008-10-14T14:45:00.001+05:30

BSNL may delay its proposed $10 billion public offer, line up to be the largest in the country, due to the global financial crises. The telecom company had revived its IPO plans in July, after the Left parties withdrew support to the UPA government. According to a top BSNL board member, "Yes, the market conditions are not conducive for a listing.

I do not agree that the IPO has been shelved. it has been delayed. The political establishment can push it through, but that is not happening either. It (the IPO) therefore cannot happen during the current government's tenure. We will wait and see what happens after March next year. I must add that the management continues to favor the IPO.

IPO Of Alkali Metals Subscribed 0.20 - Oct 13, 2008

2008-10-13T15:42:00.001+05:30

The Alkali Metals Ltd's initial public offer was subscribed 0.20 times on Friday, which was the last day of the issue. The IPO opened on 7th October and issue was in the price range of Rs 92-105 per share.

Government Of India Planning To Create IPO Pricing - Oct 13, 2008

2008-10-13T15:41:00.000+05:30

Government of India is planning to create ICAI-like institute for IPO pricing to make it mandatory for the companies to get their shares priced by authorized valuers before coming to the capital markets. Government is taking this step due to the allegations of overpricing of initial public offers.

According to Prem Chand Gupta, Minister of Corporate Affairs "Rather than imposing direct or indirect conditions (on IPO pricing), we are working on professional valuation. It will be a new law on Valuation Professionals. We are working on it to get a system where valuation is done."

Currently, merchant bankers, chartered accountants, company secretaries, cost and work accountants or any other professional possessing such qualification are doing such valuations.

Mahindra Holidays Has HSBC Underwrite IPO - Oct 10, 2008

2008-10-10T16:53:00.001+05:30

Mahindra Holidays & Resorts India (MHRIL), which is a part of the Mahindra Group and a hospitality provider, has hopes with State Bank of India, Kotak Mahindra Capital and Securities and Capital Markets to underwrite its primary market issue. Total 92,65,275 equity shares of Rs 10 each will be offered and the price will be decided through a 100% book-building process. The issue will comprise 11% of the company's fully diluted post-issue paid-up capital.

India Faces Refiling Of IPO Prospectus By 6 Companies - Oct 8, 2008

2008-10-08T15:50:00.001+05:30

6 companies refile IPO prospectuses with the regulator since June on expectation of turnaround in coming months. Companies like Alkali Metals, currently open for subscription. Apart from that, Persistent Systems is now willing to take a chance in an irregular market, which had earlier deferred their public issue plans after the market crash in January. Gini & Jony, Globus Spirits, Mahindra Holidays & Resorts, MBL Infrastructure and MCX are other companies that have re-filed draft red herring prospectuses with the regulator.

The volatility in the market has been putting off promoters looking to raise funds through IPOs. The downward journey in the market has forced several companies seeking to raise equity through the public issue.

According to S Subramaniam, merchant-banking head of Enam Financial Consultants, "There is no doubt, markets are very challenging in these times. We've considered a few possibilities; we'll come out with our issue at the appropriate time. If the market is not favourable for the issue, we might just drop the idea on the whole.

According to Ashutosh Maheshwari, Motilal Oswal Investment Advisors CEO "We filed for MBL Infrastructure IPO only in September. We expect the market to improve a bit by the time we get necessary Sebi approvals. We expect to launch the issue early next year, by which time the market should consolidate a bit. MBL is a very small-sized issue. I think we could sail through, even if market sentiment is not all that great.

NHPC Defers IPO Plan Till Improvement - Oct 8, 2008

2008-10-08T15:47:00.001+05:30

NHPC had planned earlier to come out with IPO to raise an estimated Rs 1,670 crore, but now will wait till market conditions improved as they are looking for the right time to enter to the market. According to earlier schedule, the company had planned to launch the offer between 13th to 17th October. The NHPC board had approved the offer.

The company has also proposed to come out with a public issue of around 111.82 crore fresh shares and 55.91 crore existing shares of Rs 10 each at a premium that is expected to generate about Rs 5,500 crore for the company and about Rs 2,800 crore for the government.

According to Anil Razdan, Power Secretary, "NHPC is ready to hit the capital market as all governmental approvals have been accorded. They are waiting for the right opportunity to enter the market (and) the company has told the ministry that as the market improves they will announce the IPO.

Indian IPO Market Saw Just One Initial - Oct 7, 2008

2008-10-07T15:38:00.000+05:30

The Indian IPO market saw just one initial public offering making the mark in September, by wilting under the global financial crisis.

In the past six years, this is the first time during the month of September when the world's largest economy and capital market saw not a single IPO.

The white mineral manufacturer 20 Microns was the only firm in the Indian primary market, which bring out its IPO in September, even as the global crisis continued to take a lead on the local bourses. Though the issue was small received good response from investors that subscribed over four times. The issue price has been fixed at Rs 55 per share, the upper end of the price band.

As per the experts the primary market is witnessing a lull because of the bearish conditions in the secondary market that discouraging the firms to enter the capital markets.

This year US has seen the highest volume ever of IPOs which were withdrawn or postponed. As per Dealogic data, the volume of withdrawn or postponed IPOs from US issuers aggregated to $13.1 billion via 71 deals till August in 2008.

The Dealogic report also stated the global IPO volume reported a fall of 49 per cent to $97.2 billion in the first eights months this year from $188.8 billion in the same period in 2007.

EXCO Partners' IPO is the largest US IPO withdrawn or postponed this year, which was planning to enter the market with a $1.7 billion IPO along with Tommy Hilfiger's $750 million IPO.

According to president of Religare Securities, Amitabh Chakraborty "Certainly primary market is seeing a lull as it is becoming more difficult for companies to raise money in recent times. Given the current uncertainty and volatility we expect that companies which plan to raise large amount of money have to wait for some more period of time till sanity returns to the markets.

Company Earlier Sold Around IPO Placement - Oct 3, 2008

2008-10-03T18:15:00.001+05:30

Mahindra Holidays & Resorts, part of Mahindra Group filed the draft red herring prospectus with SEBI. The company plans to sell 92,65,275 equity shares of Rs10 each for cash at a price to be decided through a book building process. The company earlier sold around 3% stakes as pre IPO placement at Rs478 a share to the State Bank of India (2%) and NYLIM Jacob Ballas India Fund III (1%).

The issue would consist of 11% of the fully diluted post issue paid up capital of the company. The shares are proposed to be listed on the National Stock Exchange and Bombay Stock Exchange. This is the second time that the company has filed a DRHP after it aborted a similar attempt last year due to unfavorable market conditions.

CARE Assigns Grade 2 For The IPO Of Gemini Engi-Fab Ltd - Sep 23, 2008

2008-09-23T16:20:00.001+05:30

The initial public offer of Gemini Engi-fab Ltd was assigned 'CARE IPO Grade 2' by CARE that represents below average fundamentals. The company is planning to come out with an IPO of 55,00,000 equity shares having face value of Rs10 each at a price to be determined through the book building process. The IPO proceeds are intended to be deployed for setting up a new manufacturing workshop at Umbergaon, to meet the working capital requirements, general corporate purposes and issue expenses.

The grading is confined by Gemini's relatively small size operations, dependence on IPO proceeds for the proposed project completion, unorganized and highly dependence on IPO proceeds for the completion of the proposed projects, moderate corporate governance practices, limited experience of management in executing large projects, low entry barriers and unorganized and highly competitive industry in which the company operates.

Gemini Engi-fab Ltd was incorporated as a private limited company "Gemini Engi-Fab Private Limited" on January 12, 1998. It engaged in manufacturing and salvaging of process equipments through fabrication for various process industries, namely, cement, dairy, refinery, pharmaceutical, petrochemical, power and chemical

Gspc Is Planning Ipo By End Of The Year - Sep 18, 2008

2008-09-18T15:54:00.001+05:30

Gujarat State Petroleum Corporation (GSPC) is planning an initial public offering by the end of the year. The company is planning a public offering of 10-20% of its equity shares to raise about $1 bn.

According to a company official, the company has mandated DSP Merrill Lynch, JM Financial, Kotak, SBI CAP and Citibank for doing dilution for the IPO. He also added that, "The IPO was proposed to hit the market in November, but I now think it will happen in December-January".

GSPC is an oil and gas producing company with a dominant presence in the Energy Sector of India, attracting interest from oil companies all over the world, and signing partnership agreements covering E & P activities, based on its remarkable discoveries in Gujarat. GSPC has grown from a small oil and gas producing company in Gujarat into a vertically integrated energy company across India and overseas within just a decade. Incorporated in 1979 as a petrochemical company, GSPC has today metamorphosed into a large-scale Rs. 3900 crore energy organization, excelling in a wide gamut of hydrocarbon activities

BSNL To Conduct Opinion Poll Regarding IPO Among Employees - Sep 16, 2008

2008-09-16T15:45:00.001+05:30

The state-owned Bharat Sanchar Nigam Ltd will shortly conduct an opinion poll among employees on the proposed IPO before calling the unions for nrgotiations.

According to CMD of BSNL, Mr. Kuldeep Goyal, "On the BSNL intranet sites, employees have overwhelmingly welcomed the IPO. They have also asked that an opinion poll should be conducted. Keeping in view the sentiments of the staff we will conduct an electronic poll,"

The poll would ask the employees whether or not they support the IPO and certain unions are opposing the proposed IPO.

Earlier, the BSNL Employees Union had warned the management against proceeding with the IPO and threatened to strike work, arguing that the proposal for 10 per cent equity dilution in BSNL was devoid of any merit

IPO Of 20 Microns Was Subscribed Only 0.36 Times On Second Day - Sep 10, 2008

2008-09-10T12:45:00.001+05:30

The initial public offering (IPO) of 20 Microns Ltd was subscribed 0.36 times at the end of the second day i.e. on Tuesday, as per the NSE website.

The company received bids for 15,60,400 shares out of of which 4,60,200 bids were received at the cut off price.

The issue consists of a fresh issue of 16,75,000 equity shares of Rs 10 each and offer for sale of 26,75,632 equity shares by Gujarat Venture Capital Fund. The issue will constitute 30.81 per cent of the post-issue paid up capital of the company. Credit Analysis and Research Limited (CARE) has been assigned the IPO Grade 3, indicating Average Fundamentals.

The company intends to utilize the IPO proceeds towards the current ongoing expansion plans of the manufacturing capacities at various locations, invest in the sub-micron particle sizes required by end-market and general corporate purposes

Chemcel Biotec To Hit The Capital Market - Sep 8, 2008

2008-09-08T18:20:00.001+05:30

Chemcel Biotec Ltd is entering the capital market with an initial public offering of 1,54,00,000 equity shares for cash at a premium of Rs6. The price band for the issue has been fixed at Rs16 for equity share of Rs10.

The issue will open on September 9, 2008 and will close on September 12, 2008. The shares are proposed to be listed on the Bombay stock exchange and National stock exchange.

AllBank Finance Ltd is the lead manager to the issue.

The purpose behind the issue is to raise capital to set up Bio-Diesel manufacturing unit, to meet the additional Working Capital requirement on account of increased operations for the Agrochemical & Bio Fertilizer division, to repay short term loan of Rs 120.00 Lakhs availed from Union Bank of India for meeting the project expenses, to partially repay the working capital loan facility availed from Union Bank of India, to meet the public issue expenses and to achieve the benefits of listing our Company's shares on Bombay Stock Exchange Limited (BSE).

Chemcel Biotech Limited is in the business of manufacturing of Agro Chemicals and its main products are in three forms i.e. liquids, granules and dusts

20 Micron Fixes IPO Price Band At Rs50-55 - Sep 6, 2008

2008-09-06T10:39:00.003+05:30

20 Microns Ltd (TML), has fixed price band of its initial public offer (IPO) at between Rs 50-55 per equity share. It is a pioneer and leader in the micronised minerals and trend setter in the market for usage of ultrafine minerals for the paints and plastic industries. The company filed a red herring prospectus (RHP) with the Registrar of Companies at Vadodara on August 19.

The company is making an IPO of 43,50,632 equity shares of Rs 10 each for cash at a price to be decided through a 100 per cent book-building process. The issue consists of a fresh issue of 16,75,000 equity shares of Rs 10 each and offer for sale of 26,75,632 equity shares by Gujarat Venture Capital Fund. The issue will constitute 30.81 per cent of the post-issue paid up capital of the company. Credit Analysis and Research Limited (CARE) has been assigned the IPO Grade 3, indicating Average Fundamentals.

Tata Motors Floats Two Simultaneous And Unlinked Rights Issues - Sep 5, 2008

2008-09-05T13:08:00.001+05:30

Tata Motors on Tuesday announced details of its plan to raise Rs 4,147 crore through two rights issues. The ordinary rights issue is priced at Rs 340 a share is itself at a discount of about 20 per cent from the closing price (Rs 429.85) of the company's shares on the BSE on Tuesday while the issue offering shares with lower voting rights is pegged at Rs 305 apiece, which is at a discount of 10 per cent from the price fixed for its offer of ordinary shares. The shareholders will get one share of both the issues for every six they hold. The rights issue would open by the end of this month and the purpose behind the issue is to part finance the bridge loan it had taken for the $ 2.3-billion acquisition of the iconic Jaguar and Land Rover brands from Ford Motor Co.

The company's committee of directors approved the issue of ordinary shares on a rights basis in the ratio of one share for every six held at a price of Rs 340 for a share to raise Rs 2,186 crore. In line with this, it will offer 'A' ordinary shares in the ratio of one share for every six held at Rs 305 for a share to raise Rs 1,961 crore.

Avesthagen, Bangalore-Based Biotech Company - 2 Sep 08

2008-09-02T13:45:00.000+05:30

Avesthagen, Bangalore-based Biotech Company has appointed five banks- DSP Merrill Lynch, Deutsche Bank, Morgan Stanley, UBS and ICICI Securities, as advisors to its upcoming initial public offering (IPO). DSP Merrill Lynch is the lead manager to the issue, for which the company will very soon file the draft red herring prospectus (DRHP) with Sebi. According to chairperson and managing director of Avesthagen Villoo Morawala Patell, "We have a strong product pipeline which we now need to take to the public and market. For this, we need a large amount of funds. We already have several private equity partners and don't want to divest any more stake to private investors."

The company plans to formally launch its first product in India by the end of 2009 and in other BRIC countries, around the same time. Ms Patell also added that "By 2013, we should launch it in Europe, since we already have a manufacturing facility there. The US might take a little time since the USFDA is of the opinion that biosimilars are not bioidenticals and hence, cannot be accepted,".

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

2008-08-29T14:32:00.002+05:30

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

2008-08-23T12:05:00.000+05:30

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

2008-08-20T11:30:00.000+05:30

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

2008-08-14T11:58:00.001+05:30

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

2008-08-14T11:52:00.001+05:30

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

2008-08-13T12:09:00.001+05:30

Resurgere Mines & Minerals India Ltd.

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

Ipo Open Today - Aug 11 , 2008

2008-08-11T11:45:00.003+05:30

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

2008-08-07T12:52:00.001+05:30

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

2008-08-07T12:50:00.000+05:30

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

2008-08-06T12:53:00.001+05:30

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

2008-08-05T15:03:00.000+05:30

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

2008-08-05T15:02:00.000+05:30

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

2008-08-04T12:39:00.000+05:30

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

2008-08-01T11:57:00.001+05:30

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.

Power Sector Ipos Seem To Be The Latest Buzz - July 31 , 2008

2008-07-31T13:07:00.001+05:30

NEW DELHI: Power sector IPOs seem to be the latest buzz in government corridors following the trust vote. The power ministry is planning to list at least three central power companies over the next few months. While hydel major NHPC will be the first to hit the market sometime later this year, Damodar Valley Corporation (DVC) and North Eastern Electric Power Corporation (Neepco) would also come with public issues soon. The ministry is also planning to revive the follow-on public offer (FPO) of NTPC.

According to highly placed government sources, the ministry has favoured DVC’s proposal for a public offer which may be launched after the company floats its subsidiary. The company has already appointed consulting firm KPMG for exploring the various options through which the company can tap the capital market.

“The consulting firm will submit its report in the next two days, after which the company’s board will take a decision. Since DVC is a statutory company, the need was felt to set up a subsidiary company, which in turn could be listed,” a senior government official told ET.

The ministry has proposed that Delhi government may pick up 20% stake in the proposed subsidiary as DVC is set to become a major power supplier to the state. DVC is targeting a generation capacity of 11,000 mw by 2012, and Delhi is to get almost 20% or over 2,000 mw.

The government has also started the process of coming out with a public offer of Neepco. The government will first upgrade the company from the list of Schedule-B to Schedule-A and then come with a public offer. “The ministry of heavy industries has agreed to facilitate the process of its upgradation that is essential for the public offering. A proposal in this regard is already with the Department of Public Enterprises (DPE),” the official said. Neepco proposes to raise around Rs 400 crore to fund its projects.

Besides, the FPO of NTPC could also be revived. The finance ministry had earlier turned down the PSU’s proposal to raise nearly Rs 6,000 crore through a follow-on public offering as the government’s disinvestment policy does not favour dilution of equity in navratna companies. As per government estimates, over Rs 10 lakh crore of investment is required in the power sector during the 11th Plan.

MCX May Submit Fresh IPO Draft - July 31 , 2008

2008-07-31T13:05:00.000+05:30

MUMBAI : The Multi Commodity Exchange (MCX) is expected to submit a fresh application to SEBI for its initial public offer as the validity period for its offering is set to end shortly.

“The Sebi approval for the IPO expires on August 11 and if the IPO is not listed then a fresh application has to be filed,” said a source close to the development on the sidelines of a conference.

The source said that the company can re-apply the very next day after the validity period of the earlier approval expires. But the fresh application has to be submitted within the current financial year. In case the company fails to do this, it would have to undertake a fresh audit, which would be a long-drawn process.

Companies that have received Sebi’s nod have to complete the process of listing within 90 days to avoid refiling their offer documents.

The other IPOs which Sebi had approved around the same time as MCX were that of UTI AMC and Reliance Infratel. While UTI AMC has decided to shelve its plans for now, there is no word on the IPO plans of Reliance Infratel.

In case MCX re-applies, it would be the only company in recent times to do so, an industry source said.

MCX expects to raise Rs 500-600 crore from the capital market, partly through issuing fresh equity and partly through dilution of the existing stake of shareholders. The issue price is expected to be close to Rs 600 per share.

According to the current draft prospectus, 60 lakh fresh shares would be issued, while existing equity holders would offload 40 lakh shares.

Of this, about 35 lakh shares of Financial Technologies (FTIL), one of the primary financiers of MCX, would be sold, bringing down its share in the company to 26% from the current 32%.

In February, FTIL had already sold 5% of its stake to New York Stock Exchange. At that time, the exchange was valued at $1.2 bn, or Rs 5,000 crore.

New Rules For IPO By SEBI - July 31, 2008

2008-07-31T11:33:00.000+05:30

SEBI has finalized the guidelines for retail investors for investing in IPO in which they only have to pay to the extent of shares allotted to them and not 100% upfront advance for shares.

The payment system known as Application Supported by Blocked Amount (ASBA) that will require retail investors to bid at a cut-off price and to apply through self-certified syndicate banks (SCSBs), in which they hold accounts.

SEBI on Wednesday issued a circular that highlighted the eligibility criteria for an investor and also identified the roles and responsibilities of other intermediaries, registrars, merchant bankers and stock exchanges in the ASBA process.

Nu Teck India IPO Got Subscribed 0.14 Times - July 30 , 2008

2008-07-30T12:37:00.000+05:30

Nu Teck India IPO got subscribed 0.14 times shares on the first day of offer on Tuesday. The offer would close on August 1.

The issue received bids over 6.07 lakh shares against 45 lakh shares on offer, as per the data available on the National Stock Exchange. The qualified institutional buyers got subscribed 27% while the non institutional portion did not receive any subscription and the retail portion was marginally subscribed.

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.

CRISIL has been assigned an IPO grade of 3 out of 5 for the issue.

The shares of the company would be listed on Bombay Stock Exchange and National Stock Exchange. The book running lead manager to the issue are SPA Merchant Bankers and India Info line.

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.

Serial Blasts Rock Bangalore

2008-07-25T17:16:00.000+05:30

A woman was killed and at least six people were injured in a series of six low-intensity blasts carried out in eastern parts of the information technology capital this afternoon.

The woman, who was waiting at a bus shelter in Madivala on the Bangalore-Hosur road, was killed in the blast and her husband and another person were seriously injured, police said.

Bangalore was rocked by a major terrorist attack in December, 2005 when extremists opened fire in the famous Indian Institute of Science complex in which a Delhi IIT professor lost his life.

There were also blasts in other areas like Panthrapalya, Audugodi and Vittal Mallya Road within minutes of each other from the first blast at around 1330 hours.

Police Commissioner Shankar Bidari appealed to the people of the city to maintain calm and carry on with their normal life as police have been put on alert throughout the city.

He said timer device has been used in some of the blasts and explosives in quantity equivalent to one or two hand grenades have been used in some others.

Bidari termed it as an "act of miscreants" trying to disturb peace in Bangalore and appeared pre-planned. "We will get to the criminals and arrest them," he said.

Bomb disposal squads and forensic experts have rushed to the spot for investigations.

Chronology of some recent major bomb blasts in the country:

May 13, 2008: Eight serial blasts rock Jaipur in a span of 12 minutes leaving 65 dead and over 150 injured.

January 2008: Terrorist attack on CRPF camp in Rampur kills eight.

October 2007: 2 killed in a blast inside Ajmer Sharif shrine during Ramadan, in Rajasthan.

August 2007: 30 dead, 60 hurt in Hyderabad 'terror' strike.

May 2007: A bomb at Mecca mosque in Hyderabad kills 11 people.

February 19, 2007: Two bombs explode aboard a train bound from India to Pakistan, burning to death at least 66 passengers, most of them Pakistanis.

September 2006: 30 dead and 100 hurt in twin blasts at a mosque in Malegaon.

July 2006: Seven bombs on Mumbai's trains kill over 200 and injure 700 others.

March 2006: Twin bombings at a train station and a temple in Varanasi kill 20 people.

October 2005: Three bombs placed in busy New Delhi markets a day before Diwali kill 62 people and injure hundreds.

Somi Conveyor Beltings Trades Discount Over IPO Price - July 24, 2008

2008-07-24T13:17:00.002+05:30

The stock debuted at Rs 37.65 which was also a high for the day so far during the day. At the debut price of Rs 37.65, the stock attracted 5% premium over the IPO price.

It hit a low of Rs 28.15. On BSE, 35.75 lakh shares changed hands in the counter.

The current price of Rs 28.50 discounts the company's nine months ended December 2007 annualised EPS of Rs 1.1 by a PE multiple of 25.90.

The fixed price IPO of Somi Conveyor Beltings was subscribed 1.92 times.

The company had entered the capital markets on 24 June 2008 with an issue of 62.27 lakh equity shares of Rs 10 each at a fixed price of Rs 35 (including a premium of Rs 25 per equity share) aggregating to Rs 21.79 crore.

The company is manufacturs rubber conveyor belts of various sizes used for industrial applications of material handling in various industries such as coal, lignite, iron ore, mining, cement, power, steel, fertilizer and sugar and it has also recently introduced food grade belts for tea gardens and salt industries.

The company proposes to utilize the net proceeds of the issue to part finance its Rs 35.09 crore project cost. The expansion and modernization project consists of setting up of new manufacturing unit, purchase of land and building for office use, meeting margin money requirement for enhanced working capital and meet the interest cost during the construction period.

The company, earning profits since last 5 years, had commenced production with an initial capacity of 36,000 meters per annum (MPA) and it has expanded to present operating capacity of 1,67,660 MPA.

Depending upon the width of the rubber conveyor belt the capacity utilization can be stretched up to 2,00,000 MPA.

The company reported a net profit of Rs 0.96 crore on sales of Rs 10.92 crore in nine months ended December 2007.

ARSS Infrastructure Projects IPO Rated CARE Grade 2 - July 23, 2008

2008-07-23T11:32:00.001+05:30

MUMBAI: ARSS Infrastructure Projects Ltd’s proposed Rs 120-crore initial public offering has been assigned ‘CARE IPO Grade 2’ by rating agency CARE.

Grade 2 indicates ‘below average fundamentals’. The grading factors in the experience of promoters and management team of the company, healthy and diversified order book position, impressive client portfolio, satisfactory project completion track record, improving financial position & profitability, favourable outlook for the sector and continuous thrust being given by the government for infrastructure development.

SBI, taking active interest in the company by virtue of acquiring an equity stake, also supports the grading. However, the grading is constrained by relatively smaller size of the company, few pending litigations against the company and/or the promoters, limited geographical diversification, high fragmentation in the domestic construction sector leading to intense competition thereby impairing profitability and relatively low level of automation in the sector resulting in labour intensiveness. While the company is, by and large, in compliance with the regulatory requirement pertaining to corporate governance practices, it may be too early to comment on the same in view of company taking major initiative in this regard only in the recent past.

ARSS was incorporated on May 17, 2000 as ARSS Stones Pvt. Ltd. by Subhash Agarwal of Bhubaneswar and his three brothers, for executing construction projects in the railway sector. In the initial years, ARSS operated mainly in Orissa. It gradually expanded operations to other states, but to a limited extent, and diversified its activities to other construction segments such as development and construction of roads, highways, bridges and irrigation projects. The company also has crusher plants at four locations in different districts of Orissa for quarrying and crushing stones to produce various sizes of rock products required for execution of contracts. In January, 2008, SBI took a 7.97 per cent stake in the company.

The company is, by and large, in compliance with the applicable provisions of the listing agreement and clause 49 pertaining to corporate governance, although the entire initiative to this effect has been taken by the company only recently. There are few pending litigations against the company and also a criminal case against one of the promoters.

Case Against Anagram Relating To IPO Scam, Settled - July 22 , 2008

2008-07-22T11:20:00.000+05:30

The Securities and Exchange Board Of India (SEBI) on Monday settled a case against Anagram Securities relating to alleged financing of key operators in IPO scam. Charge against Anagram Securities was that it acted as a financier to the key operators for making applications for public offers in fictitious and benami names during 2003-05.

The case has been settled through a consent order passed by the SEBI, but it does not restrict the market regulator from taking enforcement action. SEBI can reopen the pending case, if it finds any representation made by the firm in the consent proceedings are to be untrue or it has breached any of the clauses of undertakings during the proceedings.

The market regulator passed the order on the recommendations of its High Powered Advisory Committee.

IPO Opening Today - July 21, 2008

2008-07-21T10:27:00.001+05:30

Vishal Information Technologies Ltd.

1. Opening Date : 21/07/2008.
2. Closing Date : 24/07/2008.

GSPC To Invest $1bn In KG Basin, Plans IPO - July 19 , 2008

2008-07-19T11:25:00.000+05:30

NEW DELHI: Gujarat State Petroleum (GSPC) plans to invest $1 billion (about Rs 4,100 crore) to make its eastern offshore Krishna Godavari (KG) basin gas field operational by 2011. It is also contemplating an initial public offer (IPO) for funding part of the investment. The company may dilute up to 20% through the IPO.

The Gujarat government is, however, in no mood to sell 30% to a foreign strategic partner, as proposed earlier, Gujarat energy minister Saurabh Patel said. The state government owns 100% in GSPC. Gujarat chief minister Narendra Modi, meanwhile, denied any proposal to divest stake in the energy company through an IPO. “We are financially sound and do not need to go to the market,” Mr Modi said.

GSPC, which is about to receive government approvals for development plans for KG-8 gas field, has struck more gas in the block KG-OSN-2001/3. KG-22 holds three trillion cubic feet (Tcf) of gas, Mr Modi said, adding the entire block in his assessment holds more than 20 Tcf reserves. From 2011, GSPC will produce 8-10 million standard cubic meters per day of gas from the block. KG-8, according to the development plan submitted to oil regulator DGH, holds a minimum of 2.6 Tcf and a maximum of 5.6 Tcf recoverable reserves and can produce about 6 mmscmd gas.

Mr Patel said GSPC has taken 10 mmscmd capacity in Reliance Inds’ east-west pipeline to transport gas to consumers.
The government has also acquired 300 acres at Kakinada in Andhra Pradesh for on-shore gas processing plant.

Birla Cotsyn IPO Subscribed 1.11 Times On The Last Day - July 10, 2008

2008-07-10T12:28:00.000+05:30

The IPO of Birla Cotsyn was subscribed 1.11 times on the last day of its issue on Wednesday.

The issue received 9,96,82,450 bids, out of which around 2,53,94,600 were received at the cut off price. The qualified institutional buyers' portion was subscribed 0.01 times, non-institutional investor portion was subscribed 3.11 times, and the retail portion was subscribed 0.73 times. The employee's portion was subscribed 0.04 times.

The company has extended the closing date of its initial public offer to July 9. Also it has revised its price band downward from Rs 15-Rs 18 to Rs 12-Rs 14 per share.

The company plans to utilize the IPO proceeds to set up an integrated textile unit and a garment manufacturing plant at the facilities located at Khamgaon, Ghatanji and Makkapur in Maharashtra. Also to fund the company's foray into retail outlets.

IPO Closing Today - July 9, 2008

2008-07-09T12:08:00.003+05:30

1. Birla Cotsyn (India) Ltd.

Opening Date: 30/06/2008.

Closing Date: 09/07/2008.

IPO Of Birla Cotsyn Was Subscribed 0.44 Times - July 8, 2008

2008-07-08T10:27:00.001+05:30

The IPO of Birla Cotsyn was subscribed 0.44 times on Monday. The issue received 3,95,64,350 bids, out of which around 2,06,87,100 were at the cut off price. The qualified institutional buyers' portion was subscribed 0.01 times, non-institutional investor portion was subscribed 1.46 times, the retail portion was subscribed 0.90 times and the employee's portion was subscribed 0.02 times.

The company has extended the closing date of its initial public offer to July 9. Also it has revised its price band downward from Rs 15-Rs 18 to Rs 12-Rs 14 per share.

The company plans to utilize the IPO proceeds to set up an integrated textile unit and a garment manufacturing plant at the facilities located at Khamgaon, Ghatanji and Makkapur in Maharashtra. Also to fund the company's foray into retail outlets.

UTI Asset Management Defers IPO Plans - July 8, 2008

2008-07-08T10:25:00.000+05:30

Mumbai: UTI Asset Management Company has decided to defer its proposed initial public offer. The initial public offer was expected to hit the market this month.

The source said that with equity market in turmoil the sponsors of the AMC have decided to put off the IPO plan. SEBI had cleared UTI's draft red herring prospectus on April 22. The AMC was supposed to complete the IPO process with in three months, which will expire by July 21. Sources, said UTI AMC is going slow and it is unlikely that the process would be completed before the expiry date.

UTI AMC plans to offload 38.8 per cent or 48.5 million of outstanding shares of the company. The AMC had also planned a pre-IPO private placement of 16 million shares, which is also delayed. According to the SEBI regulations, UTI will have to restart the process by filing fresh application once the three-month period expires. Since the beginning of equity market meltdown, several IPOs including Wockhardt Hospital and the Dubai-based Emaar MGF had been called off mid-way following poor investor response.

UTI AMC has four sponsors: State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation of India, each holding 25 per cent stake. An analyst said the mutual fund had no dearth of funds and given the current market condition, the AMC would have decided not to go ahead with the IPO.

Birla Cotsyn Extended Its IPO - July 7, 2008

2008-07-07T15:13:00.002+05:30

Birla Cotsyn extended its IPO closing date to July 9, 2008 due to the poor sentiments in the market that forced the company to extend the closing date. Also, the price band for the issue was revised downward to Rs12-Rs14 per share from Rs15-Rs18 per share earlier. The issue received 3,31,80,350 bids, out of which 1,88,73,750 bids were received at the cut off price. The qualified institutional buyers' portion was subscribed 0.01 times, non-institutional investor portion was subscribed 1.16 times and the retail portion was subscribed 0.54 times.

Birla Cotsyn Extends IPO Closing Date - July 5, 2008

2008-07-05T11:21:00.000+05:30

MUMBAI: Birla Cotsyn has extended the closing date of its Rs 144.18-crore initial public offering to July 9, said an official with the lead manager of the issue. Further, the price band has been revised downward to Rs 12-Rs 14 per share from Rs 15-Rs 18 earlier, the official said.

The issue opened on June 30 and was to originally close on July 4.

Poor market sentiment has forced the company to extend the closing date. The issue was subscribed 0.46 times till 4 pm on Friday, as per the NSE website. The issue received 3,31,80,350 bids, of which around 1,88,73,750 were at the cut off price.
The qualified institutional buyers’ portion of 3,34,26,667 shares was subscribed 0.01 times, non-institutional investor portion of 1,00,28,000 shares was subscribed 1.16 times, and the retail portion of 2,33,98,667 shares was subscribed 0.54 times. While the employee’s portion of 48,33,333 hardly received any subscription.

The IPO proceeds would be utilised to set up an integrated textile unit and a garment manufacturing plant at the facilities located at Khamgaon, Ghatanji and Makkapur in Maharashtra. The investment would also fund the company's foray into retail outlets.

Ipo Closing Today - July 4, 2008

2008-07-04T10:57:00.001+05:30

1. Birla Cotsyn (India) Ltd.

Opening Date : 30/06/2008.

Closing Date : 04/07/2008.

ONGC JV Mulls IPO To Raise Rs 3,500Cr - July 4, 2008

2008-07-04T10:54:00.001+05:30

Ahmedabad: ONGC Petro additions (OPaL), an alliance between ONGC and Gujarat State Petroleum Corporation (GSPC), is mulling to hit the capital market to raise Rs 3,000-3,500 crore. ONGC are targeting to raise at least 20 per cent of the Dahej project cost via the offering.

OPaL is establishing a Rs 12,500-crore petrochemical complex at Dahej in Gujarat, proposed to be financed via a debt-equity ratio of Rs 8,700 crore and Rs 3,800 crore, respectively. ONGC holds 26 per cent controlling stake in OPaL, while GSPC holds 5 per cent.

Already, global companies such as Japan Polypropylene Corporation (JPP), an alliance between Chisso and Mitubishi Chemical Corporation; LyondellBasell Industries, which is one of the world's largest polymers, petrochemicals and fuel companies; Ineos group; Mitsubishi Chemicals and Mitsui are looking at a stake in the project. ONGC is also in negotiations with oil and gas PSUs like Indian Oil Corporation.

Meanwhile, OPaL has called a tender for its cracker unit, which comprises over 80 per cent of the project cost.

Birla Cotsyn IPO Subscribed 0.34 Times - July 3, 2008

2008-07-03T10:39:00.002+05:30

The IPO of Birla Cotsyn was subscribed 0.34 times till Wednesday as per the NSE website. The issue received 2,40,89,100 bids, out of which 1,18,15,300 were received at the cut off price.

The qualified institutional buyers portion of 3,34,26,667 shares was subscribed 0.01 times, non institutional investor portion of 1,00,28,000 shares was subscribed 0.71 times and the retail portion of 2,33,98,667 was subscribed 0.33 times. The price band for the issue is Rs15 to Rs18 per share. The issue will close on July 4.

The company plans to utilize the IPO proceeds for setting up an textile integrated tetile unit along with a garment manufacturing plant at Khamgaon, Ghatanji and Makkapur in Maharastra.

CARE Has Assign'care IPO Grade 4' - July 2, 2008

2008-07-02T15:09:00.003+05:30

MUMBAI: CARE has assigned 'CARE IPO Grade 4' to the proposed initial public offer of 1040 lakh equity shares of Jaiprakash Power Ventures Ltd. The grade indicates above average fundamentals.

The grading reflects the long track record of the promoters in hydro power sector, group support in terms of execution capabilities as well as resourcefulness and encouraging prospects of the power sector in the medium term. The grading also takes into account performance of the existing hydro power project in operation, project implementation status along with associated risk and financial tie up in respect of all envisaged projects under IPO.

Jaiprakash Power Ventures is a special purpose vehicle promoted by Jaiprakash Associates Ltd in December 1995 to build, own, operate and maintain the Vishnuprayag Hydel power project with an installed generation capacity of 4*100 MW. It is a run of the river hydro power project across the river Alaknanda, Uttarakhand.

The Vishnuprayag project has been fully commissioned in phases from June to Oct 2006. The approved cost of project by UPSERC is Rs 1682.72 crore, which has been funded with debt equity of 2.33.

Jaiprakash Power Ventures has executed a final power purchase agreement with the UPPCL dated January 16, 2007. The agreement is valid for a period of thirty years, which can be extended further for a period of twenty years upon mutually agreed terms.

In FY07, Jaiprakash Power Ventures earned total income of Rs 214 crore including net revenue from sale of energy and incentives. The profit after tax was Rs 72 crore after providing for depreciation of Rs 36 crore and payment of interest of Rs 91 crore.

During nine month period Apr-Dec 2007, Jaiprakash Power recorded total income of Rs 307 crore, operating profit of Rs 258 crore (84% margin) and net profit of Rs 149 crore (48% margin).

In December 2007, Jaiprakash Power Ventures undertook implementation of 1000 MW (2 x 500 MW), subsequently increased to 1320 MW(2x660 MW) coal based thermal power project at Nigrie, Madhya Pradesh which was earlier awarded to parent company Jaiprakash Associates. The project has been transferred to Jaiprakash Power.

Jaiprakash Power plans substantial investment in its group companies. It has proposed to invest in equity of the group company, Jaypee Karcham Hydro Corporation Ltd. to the extent of 55 per cent, which is currently implementing 1000 MW (4 X 250 MW) hydro-electric project at Kinnaur in Himachal Pradesh.

Further, Jaiprakash Power proposes to invest in equity of Jaypee Powergrid to the extent of 23 per cent, which is a joint venture company setup between Jaiprakash Hydro Power and Powergrid Corporation of India, to implement the transmission systems for evacuation of power from JKHCL’s hydro power project.

Birla Cotsyn IPO Subscribed 0.06 Times - July 1, 2008

2008-07-01T14:01:00.001+05:30

The IPO of Birla Cotsyn was subscribed 0.06 times on Monday i.e the first day of the issue. The issue received total of 4.31 million bids, while 410,900 bids were received at cut-off price. The issue will close on Jul. 04, 2008.

The price band for the issue was fixed at Rs 15 to Rs 18 a share of face value of Rs 10 each. The company intends to raise Rs 1,441.8 million at the cap price of the price band.

The company plans to utilize the proceeds to set up a integrated textile unit and a garment manufacturing plant at the facilities located at Khamgaon, Ghatanji & Makkapur in Maharashtra. It will also fund the company's foray into retail outlets. The company is setting up a readymade garment-manufacturing unit.Along with this it is entering the retail garment sector by establishing 20 retail outlets across the country. The company is setting up a garment manufacturing facility.

Central Bank Of India Is Planning To Raise Money - July 1, 2008

2008-07-01T13:59:00.000+05:30

Central Bank of India is looking at various options that also includes follow-on-public offer for raising funds, according to the Chairman and Managing Director H A Daruwala.

It also includes hybrid and subordinate bonds, which could be exercised to raise the required capital to meet the capital adequacy ratio (CAR) under the Basel-II norms.

Daruwala also added that the bank's capital adequacy ratio stood at 10.42 per cent in the last fiscal and targeted to raise the ratio to 11 per cent at the end of March, 2009.

The bank has entered the capital market in October 2007. As per the guidelines, it has to wait for one year before coming out with follow-on public offer.

IPO Opening Today - June 30, 2008

2008-06-30T10:41:00.002+05:30

1.Birla Cotsyn (India) Ltd.

Opening Date : 30/06/2008.

Closing Date : 04/07/2008.

Birla Cotsyn India Ipo Opens For Subscription - June 30, 2008

2008-06-30T10:38:00.002+05:30

Birla Cotsyn India, part of Yash Birla Group is open for subscription from today. The issue will close on July 04, 2008. The IPO is of Rs144.18 crore and the price band for the issue has fixed at Rs15 to Rs18 per equity share.

The proceeds from this issue will be utilized for setting up a integrated textile unit and a garment manufacturing plant at their facilities located at Khamgaon, ghatanji and Makkapur in Maharastra.

The company is undergoing a expansion of Rs 320 crore project for setting up of weaving, processing, garmenting units. It also plans to begin retail operations with 20 stores by financial year 2010.

The book running lead managers to the IPO is Allbank Finance and Saffron Capital Advisors, SMC NEXGEN Capitals and Chartered Capital Investment are the co-book running lead managers.

SRS Group Plans To Raise Rs 500 Crore Through IPO - June 28, 2008

2008-06-28T11:43:00.004+05:30

CHANDIGARH: Fardiabad based SRS Group is expecting to raise Rs 500 crore through an Initial Public Offer, slated to be launched by the end of this fiscal, to partly fund its Rs 1000 crore expansion programme.

"We are hoping to mobilise Rs 500 crore from our public issue which would be launched by the end of this financial year," SRS Group Chairman Anil Jindal said, adding that the remaining Rs 500 crore would be raised through other means.

The company has not decided on how much prompters' stake would be diluted for the proposed public issue.

"Things are at the preliminary stage and at this moment I cannot say how much stake would be diluted," he said.

The company is also looking at other options to fund the project which include internal accruals, private equity and debt.

"The balance Rs 500 crore out of Rs 1000 crore is expected to be raised from internal accruals, private equity placement and bank loans," he said.

The company had announced to invest Rs 1000 crore in next three years on retail, entertainment, food and beverage segment.

The company intends to increase the number of its retail outlets, branded as 'Value Bazaar' to 100 by the end of current fiscal. Besides, it has also proposed to increase the strength of SRS fashion wear and SRS jewels to 25 and 10 respectively by 2008.

By the end of this fiscal, the company is looking to touch turnover of Rs 1000 crore from Rs 700 crore in 2007-08, he said.

Birla Cotsyn's IPO Opens Next Week - June 28, 2008

2008-06-28T11:39:00.004+05:30

HYDERABAD: Birla Cotsyn (India) Ltd (BCIL), a Yash Birla Group company engaged in textile manufcturing, is entering the capital market with a Rs 144.18- crore initial public offering (IPO).

Proceeds from the issue would be used to fund two units that the company is setting up at its existing facilites in Maharashtra.

The company has fixed a price band of Rs 15 to Rs 18 per equity share of face value of Rs 10 each. The price band is 1.5 times of the face value and the cap price is 1.8 times of the face value.

The 100 pc book-build issue opens on June 30 and and closes on July 4.
Talking to mediapersons here today, Birla Group Finance Director P V R Murthy said said proceeds from the issue will be utilised to set up an integrated textile unit and a garment manufacturing plant.

The IPO would also fund the firm's foray into retail outlets which it plans to set up across the country, he said.

Murthy said the initial promoters of BCIL had entered in a 50:50 joint venture with the P B Bhardwaj Group.

The JV would enable both partners to combine their resources, expertise and carry on the business of manufacturing, marketing and distribution of the products.

It also aims to tap the domestic as well as international markets, he said.

IPO Closing Today - June 27, 2008

2008-06-27T11:06:00.003+05:30

1. Somi Conveyor Beltings Ltd.

Opening Date : 24/06/2008.
Closing Date : 27/06/2008.

KSK Energy subscribed Its IPO - June 26, 2008

2008-06-26T10:21:00.002+05:30

The IPO of KSK Energy Ventures was subscribed 1.50 times on Wednesday. The public issue of 3,46,11,000 received 5,19,68,500 bids. The qualified institutional buyers portions was subscribed 1.81 times, non institutional investors portion was subscribed 0.03 times and the retail portion of 1,03,83,300 did not received any subscription. Around 20,10,950 bids were received at the cut off price. The price band for the issue was Rs240-255 per share.

IPO Closing Today - June 25, 2008

2008-06-25T10:55:00.002+05:30

1. KSK Energy Ventures Ltd.

Opening Date : 23/06/2008.
Closing Date : 25/06/2008.

IPO Opening Today - June 24, 2008

2008-06-24T11:13:00.006+05:30

1.Somi Conveyor Beltings Ltd.

Opening Date : 24/06/2008.

Closing Date : 27/06/2008.

KSK Energy Ventures IPO Received Good Response - June24 , 2008

2008-06-24T11:02:00.004+05:30

The IPO of KSK Energy Ventures was subscribed 0.94 times on Monady i.e the on first day of the issue. The issue received 3,26,91,925 bids against the issue of 3,46,11,000. Out of this10,975 bids were received at the cut off price. The price band for the issue is Rs240-255 per share. This issue is the 10% of the post issue share capital.
The company will be investing part of the funds in Wardha Power Company to finance the equity component of the 1800 mw coal based thermal power plant at Chattisgarh.

Lotus Eye Care Hospitals IPO Bagged Good Response - Jun 23, 2008

2008-06-23T11:44:00.003+05:30

The IPO of Lotus Eye Care Hospitals on Friday has received bids for over 1.18 crore shares against one crore shares on offer.

The non institutional potion was subscribed 2.63 times along with the Qualified Institutional Buyers portion was subscribed 0.63 times while the Retail investors portion was fully subscribed.

The price band for the issue had been revised to Rs36-Rs38 from the earlier band of Rs38-42.

The company plans to utilize the proceeds for opening of new health care centers. It would partly finance its Rs 55-crore expansion through the proceeds of the IPO. The company would set up two primary eye care units in Bangalore and another in Chennai to focus on simple eye problems and optical sales. It also plans to open secondary eye care centre.

Birla Cotsyn Entering The Capital Market - Jun 23 , 2008

2008-06-23T11:35:00.006+05:30

Birla Cotsyn, a part of Birla Group is entering the capital market is entering the capital market with an initial public offering (IPO) of Rs144 crore through a 100% book building process. The issue will open on June 30, 2008 and will close on July 4, 2008.

According to sources, the price band for the issue is Rs15 to Rs18 per share. The book running lead managers to the IPO is Allbank Finance and Saffron Capital Advisors, SMC NEXGEN Capitals and Chartered Capital Investment are the co-book running lead managers.

The company is undergoing a expansion of Rs 320 crore project for setting up of weaving, processing, garmenting units. It also plans to begin retail operations with 20 stores by financial year 2010.

IPO Closing Today - Jun 20 , 2008

2008-06-20T11:21:00.002+05:30

1.Lotus Eye Care Hospital Ltd.

Opening Date : 12/6/2008.
Closing Date : 20/6/2008.

Lotus Eye Care Hospital Extend Its IPO - June 19 , 2008

2008-06-19T11:33:00.004+05:30

Lotus Eye Care Hospital has extended the closing date of the initial public offering to June 20, 2008 due to the poor response of the issue from the secondary market. The issue opened on June 12 and was scheduled to close on June 17.

The price band also revised down ward to Rs36-Rs38 per share from Rs38-42 earlier. The company despite of reducing the price band has received the poor response on Wednesday.

The issue received 61,42,800 bids out of which 23,44,950 bids were received at the cut off price. The retail portion was subscribed 0.70 times, qualified institutional buyers portion was subscribed 0.68 times, non institutional investor's portion was subscribed 0.13 times.

The IPO proceeds will be utilized to finance the expansion of existing facilities along with to establish new centers with latest technology and meet working capital requirement.

Keynote Corporate Services is the sole book running lead manager to IPO.

IPO Closing Today - June 17 , 2008

2008-06-17T11:34:00.006+05:30

1 .Archidply Industries Ltd.

Opening Date : 11/6/2008
Closing Date : 17/6/2008

2 .Lotus Eye Care Hospital Ltd.

Opening Date : 12/6/2008
Closing Date : 17/6/2008

Somi Conveyor Beltings Ltd Open Its IPO - June 17 , 2008

2008-06-17T10:57:00.012+05:30

Somi Conveyor beltings Ltd to enter the capital markets with its initial public offering (IPO) of 62,27,860 equity shares of Rs10 each through 100% book building process. The price for the issue has been fixed at Rs35 per share. The issue will open on June 24, 2008 and will close on June 27, 2008.

Ashika Capital is the lead manager and Mondkar Computers is the registrar to the issue.

The issue consists of contribution by promoters of 14,99,286 equity shares of Rs10 each at a price of Rs35 per equity share for cash aggregating to Rs5.25 crores. The net issue to the public consists of 47,28,574 equity shares of Rs10 each at a price of Rs35 per equity share for cash aggregating to Rs16.55 crores. This also includes an allocation of atleast 10% of the net issue to the qualified institutional investors.

Somi Conveyor beltings Ltd is a manufacturer and exporter of Rubber Conveyor Belts of all grades for material handling. Conveyor belts are used in a wide variety of material transport applications such as manufacturing, food processing, and heavy industries. Belt construction and belt materials are often application-specific.

First Winner Industries Extended Its IPO - June 16 , 2008

2008-06-16T11:16:00.010+05:30

The initial public offering of First Winner Industries has been extended to June 17 instead of June 12.

The date was extended by the book running lead manager of the company 'Almondz Global Securities'. The price band for the issue has also been reduced to Rs115-Rs125 from Rs120-130 per share.

Till the closing of the market on Friday, the script was subscribed 0.74 times and the total number of bids received were 40,54,300 shares and 11,85,450 bids were received at the cut off price.

Grey Market Writing Successful Scrips For Small-Sized IPOs - June 12, 2008

2008-06-12T11:10:00.001+05:30

MUMBAI: Small-sized public issues are increasingly becoming the punter’s favourite playing ground.

Given the small size of the issues, operators get into the act by cornering a significant chunk of shares, pumping up the price and volumes at the counter, and then dumping them on unsuspecting investors. Market watchers say that, often, the operators are in cahoots with the merchant bankers to the issue and, in some cases, with the promoters of the companies as well. The operation is usually completed in less than a month after the listing of shares.

According to market participants, trying market conditions make it difficult for most small-sized companies to raise money from genuine investors. Sensing the opportunity, promoters are approached by market operators and the entire issue management is said to be handed over to the dubious players after agreeing to terms and conditions.

Many operators are Ahmedabad-based and have the resources and network to subscribe to the entire issue, if required. They also control dummy companies overseas masquerading as institutional investors. Through various entities, the operators corner a substantial chunk of the public issue. This also ensures there is not much selling pressure on the day of listing.

Market watchers say that in some cases, the issue is subscribed by only a handful applicants. “One of the latest issue had only six qualified institutional investors, and 93% of the issue was subscribed by only nine investors. Now, you can image the control that the investors have on the listing price of the stock,” says a market analyst.

The operators also manipulate the ongoing premium on the stock price in the grey market prior to listing. In many cases, merchant bankers promise the moon to the promoters, and grey market manipulation is one of ensuring that the prices approach the promised levels.

On listing, the stock price shoots up and immediately attracts attention. Day traders jump into the fray, pushing up volumes further and improving liquidity. Some of the buyers include genuine investors who could not get the required IPO allocation and buy into the stock, and other fall prey to the rumours.

Once the share price starts shooting up, operators start spreading rumours about dizzying targets the stock is likely to touch. This triggers off a self-fulfilling prophecy with more investors jumping in for a piece of action. At the same time, there are some institutional investors who are ready to buy into these stocks, purely from a short-term perspective. Market participants say that stronger the operator, the more of number of days he can support the stock price.

In case of many new listings this year, the current ruling price of many small IPOs have gone down more than 50% from their recent highs. Part of the blame could be put on the bad market. But then, market conditions were not buoyant when the stocks listed, and yet they managed to post superb returns in the initial days.

Jinshan Gold Mulls HK IPO To Fund Acquisitions - June 11, 2008

2008-06-11T10:56:00.000+05:30

HONG KONG: Jinshan Gold Mines, a Toronto-listed company that is 42 per cent-owned by state-controlled China National Gold Corp, is considering listing shares in Hong Kong to fund an acquisition that could be worth more than $500 million, a company executive said on Wednesday.

Roger Walsh, vice president for corporate development at Jinshan Gold, told reporters that no final decision had been made on a possible listing, and that the company has no plan to delist its shares in Toronto.

He said Jinshan could receive an asset injection from China Gold, and that Jinshan's overseas investments may or may not be made jointly with China Gold.

Lalu’s Green Signal Puts Rites IPO Back On Track - June 10, 2008

2008-06-10T10:36:00.001+05:30

NEW DELHI: Railways minister Lalu Prasad, known for his staunch opposition to the disinvestment process, seems to have finally succumbed to government pressure for mobilising additional resources through a stake selloff. Railway PSU Rites is set to hit the market with its IPO in a few weeks to raise resources for its expansion programme.

The proposal is to offer 25% of the paid-up capital of the company through IPO. There are also plans to divest 10% government equity in the company. A group of ministers (GoM) is expected to meet this week to finalise the price band of the offer.

The divestment proposal has been on hold for 10 months. With the elections approaching, it seems the UPA government may finally go ahead with the proposal to reduce budgetary deficit of the railways. The funds raised through the market offering would be used by Railways’ consulting arm Rites to pursue its investment plans in overseas markets and participate in the domestic road sector projects, according to sources.

While last year the government was thinking of diluting its holding in the PSU by 20%, this year, it decided to increase its offer to 25%. With this, the government stake in the company would fall to 75%. The stake would come down further with the government selling its 10% equity in the company. The proceeds may be used by the government to finance social sector projects.

As per the plan, the IPO will follow a bonus share issue of Rs 36 crore that will be undertaken after a share split where the share valued at Rs 100 will be split into 10 shares of Rs 10 each. A Cabinet note in this respect was moved last year.

Rites filed a red herring prospectus with SEBI in April 2008 to enter the capital market with an initial public offering (IPO) of 1,40,00,000 equity shares of Rs 10 each. The price is to be decided through a 100% book-building process. The company’s net worth is Rs 400 crore and has been making profit for 32 years. The issue is expected to have a high premium, according to industry analysts.

Once approved, Rites would become the second PSU under the ministry of railways to get listed. The only railway PSU to have seen divestment is Container Corporation of India (Concor). The Rites issue is significant as a 2002 proposal by the disinvestment ministry to divest a majority stakes in Rites and Ircon was stalled by the then-railways minister Nitish Kumar.

Rites requires Rs 120 crore for forthcoming projects in the overseas markets and has proposed to invest Rs 50 crore for BOT projects in the highways sector.