New IPO Payment Norms By SEBI - Aug 06 , 2008

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

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

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

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

Anu's Laboratories Subscribed 2.77 Times

The IPO of Anu's Laboratories got subscribed 2.77 times on Thursday as per the NSE website. The issue has received 1,05,70,470 bids against the offering of 38,20,000 equity shares. The price band for the issue was Rs200-210 per share. The issue has received around 48,21,060 bids at the cut off price.

Reliance Power Lists At Rs 530 On NSE

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

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

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

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

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