IPO Of Alkali Metals Subscribed 0.20 - Oct 13, 2008

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

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

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

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

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

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

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.