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NHPC IPO ends with 23.74 times subscription

2009-08-13T22:15:00.000+05:30

Receives bids for more than 3900 crore shares

State-run hydropower generator NHPC's initial public offer (IPO) closed with a subscription of 23.74 times. The IPO received bids for 3981.26 crore shares
as against 168 crore shares offered by the company. More than 179.39 crore shares were bid at cut off price.

The qualified institutional buyers (QIBs) category was subscribed 29.16 times. Investors in this category put in bids for 2861.44 crore shares as against 98.12 crore shares reserved for this category.

The non institutional investor category, made up of high net worth individuals and corporate investors, was subscribed 56.70 times. The category mopped up bids for 927.41 crore shares as against 16.35 crore shares set aside by the company.

The retail investor category was subscribed 3.87 times. Total bids in this category were for 190.01 crore shares as against 49.06 crore shares assigned by the company.

NHPC had offered 168 crore shares comprising of 5% divestment of stake by the government and infusion of 10% fresh equity. The price band for the IPO was Rs 30 to Rs 36 per equity share. The issue constituted 13.64% of the post-issue capital of NHPC.

NHPC is the largest hydroelectric power generating company in the country. It has 13 operating hydro electric power (HEP) plants with an installed capacity of 5,175 megawatts (MW) including two power stations of total 1,520-MW capacity set up through its joint venture subsidiary Narmada Hydroelectric Development Corporation (NHDC). Current total generating capacity is 5,134.2 MW, taking into account the downgrade of the capacity ratings of Loktak and Tanakpur power stations by the Central Electricity Authority.

NHPC is constructing 11 additional hydroelectric projects, which are expected to increase the installed capacity by 4,622 MW. These plants, barring Teesta Low Dam IV, are mostly in the north and northeastern states and scheduled to be commissioned between December 2009 and March 2013. The Teesta Low Dam IV project is coming up in the Darjeeling district of West Bengal.

NHPC is also awaiting government sanction to build another five projects with an anticipated capacity of 4,565 MW on its own and another 2,166-MW capacity projects through certain JV projects. In addition, the company is surveying and investigating proposals for nine additional projects totaling 7,255 MW of anticipated capacity.

Apart from development and operation of HEP projects, NHPC also develops, designs, and delivers HEP station to clients. The company has executed two HEP projects, i.e. Kurichhu HEP in Bhutan and Devighat HEP in Nepal, on contract. Further, it also provides technical, management advisory and consultancy services to domestic and international clients.

NHPC's consolidated net profit rose 3% to Rs 1244.15 crore on 19.2% growth in sales to Rs 3493.71 crore in the year ended March 2009 (FY 2009) over the year ended March 2008.

On post-IPO equity of Rs 12300.74 crore, the EPS for FY 2009 works out to Rs 1 and the PE is 30-36 times at the offer price band of Rs 30-Rs 36.

Source: CapitalMarket.com

NHPC IPO: ASBA accounts 11.7% of total retail application

2009-08-13T21:07:00.000+05:30

Nearly 1.5 lakh retail investors applied via ASBA (Application Supported by Blocked Amount) in NHPC IPO, reports CNBC-TV18 quoting sources. NHPC IPO received over 13 lakh retail applications and ASBA accounted for 11.7% of total retail application. Nearly 1.27 lakh ASBA came via ICICI Bank’s online platform.

ASBA, or Application Supported by Blocked Amount, enables investors to apply for IPOs and rights issue without making a payment. Instead, the amount is blocked in their own account and only an amount proportionate to the shares allotted goes out.

Source: Moneycontrol.com

Adani IPO Allotment is out

2009-08-12T23:51:00.002+05:30

Adani IPO Allotment is out - please confirm your allotment here - http://mis.karvycomputershare.com/ipo/

Excel Infoways IPO to list on August 3

2009-08-02T14:36:00.001+05:30

Shares issued by Excel Infoways via IPO (initial public offering) will list on August 3, 2009 (Monday) on the bourses. The issue price has been fixed at Rs 85 a share. Its NSE ID is EXCELINFO and BSE ID is 533090.

Excel Infoways IPO had received mild response from investors and was subscribed 1.87 times.

Non-institutional investors and retail investors helped the issue to get subscribed; their portion subscribed 5.3 times and 2.64 times, respectively.

The Excel Infoways IPO had opened on July 14, 2009. The price band was fixed at Rs 80-85 per share.

The company raised over Rs 48 crore from this issue and the issue constituted 26.77% of the fully diluted post issue paid up capital of the company. The promoters hold 70.52% post the issue.

The company will utilise the money received from the issue for setting up new facilities and for strategic investment or joint ventures. And the rest of the money will be utilised for general corporate purpose and issue expenses.

Income from operations for the year ended March 31, 2009 stood at Rs 18.60 crore as against Rs 23.09 crore. The profit after tax for the same period was at 14.85 crore versus Rs 14.34 crore.

Excel Infoways is a BPO (Business Process Outsourcing) and Customer Contact Center based in India. It provides offshore BPO services to clients primarily in telecommunications and financial sector.

Source: Moneycontrol.com

Adani IPO closes; likely to list around Aug 20

2009-08-02T12:36:00.002+05:30

Adani Power IPO (initial public offering witnessed huge investors' interest and was subscribed 21.64 times. The issue received bids for more than 538 crore shares as against the issue size of 30,16,52,031 shares, as per the data available on the NSE website.

Qualified institutional investors have given strong response to the issue and their reserved portion was subscribed 39.5 times. Non-institutional and retail investors' portion subscribed 8.62 times and 2.97 times, respectively.

Amit Desai, Director of Adani Power said almost all bids were at upper end of the band, Rs 100 a share. The company, he said, was likely to list its shares around August 20, 2009

The price band was fixed between Rs 90 and Rs 100 per equity share. The net issue would constitute 13.47% of the post-issue paid-up equity share capital of the company.

The company intends to utilize the net proceeds of the issue to part finance the construction and development of Mundra Phase IV Power project for 1,980 MW and fund equity contribution in its subsidiary, Adani Power Maharashtra Limited, to part finance the construction and development cost of power project for 1,980 MW at Tiroda, Maharashtra.

Here is a verbatim transcript of the exclusive interview with Ameet Desai on CNBC-TV18. Also watch the accompanying video.

Q: Last we checked it was 14 times, what are your numbers suggesting?

A: As of 3 pm the overall number has gone close to 19 times – 18.85 times.

Q: How much of that is QIP? How much HNI and how much retail?

A: The QIP portion is oversubscribed by about 36 times. This is after the anchor investment allotment which has been done and HNI has gone past 4.5 times and retail is inching towards 2 times but of course I understand more bids will be uploaded between now and 5 pm for QIB and HNI and bankers are likely to seek little longer time for the retail bids update later in the evening.

Q: Where have most of the hits come at – the upper end of the band?

A: Almost 99% of the bids have come at Rs 100.

Q: So it seems likely that that is where you would choose to price the issue or because of this hefty subscription you will think of redoing it a little bit?

A: The bids have come at Rs 100 for most part of the issue and we would obviously now start discussing this issue with the investment banks but quite highly likely that we will go by where the bids flow has been.

Q: You placed two anchor investors at Rs 95, of course with the understanding that finally they would buy at the issue price but do you think it is likely that you may consider doing it at Rs 95 for goodwill – give Rs 5 to the investor or do you think you will make the anchor investors pay Rs 100?

A: All anchor investors have sent a separate communiqué to the banks through which they came in that they would fully desire to participate at the rate at which the issue gets done. As such the regulation is that if we price the issue at Rs 100 – they pay the difference. So the fact that they have given the confirmation of Rs 100, they are not really looking at Rs 95.

Q: While you won’t get into specifics, just give a sense of the kind of names that have come into this QIB slot?

A: Very encouraging. Obviously the names would come out later but we have got demand from some of the highly respected long only investors from different parts of the world – Asia, Europe, US and domestic. So it is an extremely healthy combination in the book that we have been able to get as demand which is actually very gratifying.

Q: Does August 20 remain the proposed listing date if all goes well?

A: Absolutely. We are working towards that. The registrars and banks have been gearing up on that ever since the issue opened. So we surely are looking forward to list this scrip on August 20.

Q: How will you choose the institutions to which you will allot because there has been some talk that may be some of the institutions have got in for that flipping game – to buy now and to sell on listing day, can make a quick 10-25%? In that, would you be stringent on who you allot the stock to, so that these are slightly longer-term investors and not out for a quick buck?

A: This is not a discretionary allotment. This is a book built and at the price at which we priced the issue at that level whatever are the bids they get allotted in proportion of their application. So this becomes quite a non discretionary and very objective process.

Q: While you did indicate in your interview with Udayan a couple of days back that you’re not looking at any other fund raising mechanism, because of the kind of oversubscription you’ve got, would you look at tapping the market again to raise some money via QIP once you’re listed?

A: For Adani Power no. We do not need equity is what we have stated earlier and I think our objective was to raise this money for largely completing the equity funding of 6,600 megawatts. Balance money beyond what we need for 6,600 – a small proportion from IPO will go towards kick starting 3,300 megawatts and then we will finish that 3,300 megawatts from internal accruals. So a short answer to your question is no, we won’t come back to the market for Adani Power’s equity requirements.

Source: Moneycontrol.com

Subscribe to Adani Power IPO: Nirmal Bang

2009-07-24T21:25:00.002+05:30

Nirmal Bang has come out with its research report on Adani Power IPO. Adani Power IPO will open for subscription with an initial public offering of 301,652,031 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process on July 28, 2009 and will close on July 31, 2009. The Adani Power IPO price band is fixed at Rs 90-100 per share.

The research firm has recommended investors to subscribe to the issue.

Nirmal Bang's report:
Adani Power Ltd. (APL) is a power project development company, which is developing, and will operate and maintain, power projects in India. The company has four thermal power projects under various stages of development, with a combined installed capacity of 6,600 MW.

We believe that Reliance Power is the best comparable company as both the companies are implementing large power plants and do not have any existing operational revenue generation. We tried to compare both the company on the basis of Enterprise Value(EV) per MW, Subscribe.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

Mahindra Holidays IPO ends with a modest premium

2009-07-16T19:47:00.001+05:30

Mahindra Holidays and Resorts India IPO (MHRIL IPO), ended its first trading session with a premium of 5.82% to its issue price of Rs 300. The share closed at Rs 317.45 on the NSE.

It touched an intraday high of Rs 374.50 and intraday low of Rs 311.35. The total traded quantity was 1,27,46,398 shares and turnover was at Rs 41452.56 lakh.

On the BSE, the share closed at Rs 317.10 at a premium of 5.57% to its issue price. It touched an intraday high of Rs 339.70 and intraday low of Rs 311.10.

Mahindra Holidays IPO had listed at Rs 370 on the NSE at a premium of 23.33% to its issue price. On the BSE, the share had opened at Rs 315, at a premium of 5% to its issue price.

Mahindra Holidays IPO was subscribed 9.8 times.The proceeds from MHRIL's issue are expected to be deployed in the setting up of new projects and expansion of some of the existing resorts.

Source: MoneyControl.com

Excel Infoways IPO subscribed 0.29 times on day 3

2009-07-16T19:41:00.002+05:30

Excel Infoways IPO receives bids for 16.68 lakh shares as against 56.67 lakh shares on offer.

Excel Infoways IPO (initial public offer) continued to see muted response from investors on day three. It received bids for 16.68 lakh shares on the third day (by 16:00 IST) as against 56.67 shares on offer.

The Excel Infoways IPO was subscribed 0.29 times, with retail investors portion getting subscribed 0.12 times. The portion reserved for non-institutional investors was subscribed 0.38 times. However no bids were received from the qualified institutional buyers (QIBs).

The price band for the Excel Infoways IPO, which closes on 17 July 2009, is set between Rs 80 to Rs 85 per share. The company will raise Rs 45.33 crore at the lower end of the price band and Rs 48.16 crore at the higher end of the price band.

The IPO will constitute 26.77% of the fully diluted post issue paid up capital of the company. The promoters holding will be 70.52% post the issue. The equity shares are proposed to be listed on Bombay Stock Exchange of India (BSE) and National Stock Exchange (NSE).

The proceeds from the issue will be utilied in setting up new facilities and for strategic investment or joint ventures. The company has planned an expansion plan entailing a total investment of Rs 77.27 crore.

Excel Infoways plans to utilise the IPO proceeds for setting up new facilities in Borivali and Kandivali in Mumbai, at a cost of Rs 47.27 crore. After the expansion, the company will have added another 300 seats to the existing 150. The company also proposes to allocate Rs 30 crore, either to make strategic investments or to enter into joint ventures, Khurana added.

Rating agency CARE had assigned a ‘CARE IPO Grade 1' to Excel Infoways IPO, which indicates poor fundamentals.

Excel Infoways is a BPO and customer contact center based in India. It provides offshore BPO services to clients primarily in telecommunications and financial sector. It mostly caters to clients in the US and UK. The company is registered member of National Association of Software and Services Companies (NASSCOM).

Source: CapitalMarket.com

Oil India IPO to open on Sept 7

2009-07-16T19:38:00.001+05:30

Government sources said Oil India IPO (initial public offering) open on September 7, 2009 and close on Setpember 11, 2009, reports CNBC-TV18 quoting NW18.

As per DRHP filed on December 14, 2007, the company was coming out with public issue of up to 26,449,982 equity shares of Rs 10 each. The issue comprised a net issue to the public of up to 24,045,438 equity shares and a reservation of up to 2,404,544 equity shares for subscription by eligible employees. The issue shall constitute 11% of the fully diluted post-issue capital of the company.

The objects of the issue were to fund requirements for fiscal 2009 and fiscal 2010 towards (a) exploration and appraisal activities; (b) development activities in producing fields; (c) purchase of capital equipments and contracts for facilities; and d) diversification of our existing business in downstream activities.

The company is engaged in the exploration, development, production and transportation of crude oil and natural gas onshore in India.

JM Financial Consultants Private Limited, Morgan Stanley India Company Private Limited, Citigroup Global Markets India Private Limited and HSBC Securities and Capital Markets (India) Private Limited were the book running lead managers to the issue. Karvy Computershare Private Limited was the registrar.

Source: Moneycontrol.com

NHPC IPO to hit market in August

2009-07-13T22:17:00.000+05:30

The Union Budget may not have had any divestment announcement but the government is serious about stake sale in public sector undertakings (PSUs). A year after NHPC had first filed its draft red herring prospectus, India's largest hydro power producer's IPO is set to hit markets next month. CNBC-TV18’s Mehak Kasbekar reports.

Here is a verbatim transcript of Mehak Kasbekar's comments on CNBC-TV18. Also watch the accompanying video.

Air India might not be ready but NHPC is and the IPO is set to hit next month. The road show for NHPC has already begun and it will be taken to Singapore next week. NHPC is going to issue about 167 crore shares, which will look to mopping up Rs 1,670 crore. Price discovery will be through book building process.

This money may be used for nine projects, which are commissioned by NHPC and will be finished by 2012, thereby taking the company’s capacity to 10,000MW, which right now is a little over 5,200MW.

For now, the government, which currently wholly owns the company, will divest 5% stake in it.

Source: Moneycontrol.com

Mahindra Holidays IPO to list on July 16

2009-07-13T22:14:00.001+05:30

Mahindra Holidays and Resorts India (MHRIL), a part of the Mahindra Group, will list its equity shares on the BSE and NSE on July 16 (Thursday). It has been fixed its issue price at Rs 300 a share. The price band was between Rs 275-325 a share.

The issue had opened for subscription between June 23 and June 26, 2009, with an initial public offering (IPO) of 92,65,275 equity shares.

The issue was subscribed 9.8 times. Qualified institutional buyers gave strong response to the issue, with their portion being subscribed 12.8 times followed by non institutional investors with 11 times subscription.

The size of the issue stood at Rs 277.95 crore at the issue price. M&M (Mahindra and Mahindra) raised over Rs 101 crore from the sale of 33,69,191 shares and it holds 83% of the Mahindra Holidays post the issue.

The proceeds from MHRIL’s proposed issue are expected to be deployed in the setting up of new projects and expansion of some of the existing resorts, to provide a larger range of resorts, and hence a wider choice of holiday destinations to members.

The global coordinator and book running lead manager (BRLM) was Kotak Mahindra Capital Company Limited. HSBC Securities & Capital Markets (India) Private Limited and SBI Capital Markets were the BRLMs. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited.

Source: Moneycontrol.com

Excel Infoway IPO to open on 14 July 2009

2009-07-09T19:57:00.000+05:30

The initial public offering (IPO) of Excel Infoway will open on 14 July 2009. The company proposes to approximately issue 5.7 crore equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process to finance its expansion plans. The issue will close on 17 July 2009.

The issue will constitute 26.93% of the fully diluted post issue paid-up capital of the company.

The equity shares are proposed to be listed on Bombay Stock Exchange of India (BSE) and National Stock Exchange (NSE).

Excel Infoway is a Mumbai-based business process outsourcing (BPO) and Customer contact centre and caters primarily to clients from telecommunication and financial sectors.

Source: CapitalMarket.com

Mahindra Holidays and Resorts IPO Allotment Status

2009-07-09T19:50:00.000+05:30

Mahindra Holidays and Resorts IPO Allotment status is out and can be seen at below link:

http://mis.karvycomputershare.com/ipo/

IPO scam: Jhaveri settles case with SEBI

2009-07-03T22:43:00.000+05:30

SEBI has agreed to dispose of pending proceedings against Mr Gautam Jhaveri for his involvement in the IPO scam of 2003-04, following settlement of the case through a consent order.

Mr Zhaveri who applied for the consent order, paid Rs 2.7 crore towards settlement, including a disgorgement amount of Rs 2.36 crore, settlement charges of Rs 23.6 lakh, compounding charges of Rs 9 lakh and legal charges of Rs 1 lakh.

The applicant (Zhaveri) had been proceeded against for irregular dealings in shares issued through IPOs, and for cornering shares meant for retail investors, making unlawful profits from the shares upon their listing.

SEBI had banned the applicant from dealing in the securities market; initiated adjudication proceedings against him, prosecution proceedings in the ACMM court in Mumbai under the Companies Act; and a protest petition before the CBI court for non-filing of chargesheet against the applicant.

SEBI’s consent order disposes of all these pending proceedings. SEBI will file an application for withdrawal of its protest application at the CBI special court, and shall not oppose compounding of prosecution in the ACMM court, the regulator said in its consent order.

SEBI said it would also drop proceedings against Pratik Stock Vision Pvt Ltd in the matter of carry forward transactions in the shares of Global Tele-systems Ltd in 2000-01. The applicant offered to settle the case, offering Rs 1.25 lakh towards settlement charges, reports The Hindu Business Line.

Source: Moneycontrol.com

Kabirdass Motor plans IPO to raise Rs 60 cr

2009-07-03T22:31:00.000+05:30

Chennai-based Kabirdass Motor Company, which sells Xite electric scooters, is planning to raise Rs 60 crore through an IPO.

The issue will be open in 45 to 60 days, said Mr Murali Kabirdass, Managing Director.

The fund-raising is primarily meant to set up a manufacturing facility with two-lakh-unit capacity at Sriperumbudur near Chennai. The project cost is Rs 102 crore. A Rs 20-crore loan from Union Bank and Rs 20 crore through equity funding will meet the rest of the project cost. The new facility is expected to be operational in eight to 10 months, said Mr Kabirdass.

The company – which makes four 250-watt scooters and one 1,500-watt scooter – has 33 dealers spread across Tamil Nadu, Karnataka and Andhra Pradesh. Kabirdass Motor plans to expand its dealership network to other States, including Kerala and Maharashtra.

Since its inception in February 2007, the company has sold around 2,000 electric scooters, of which 90 per cent were in rural Tamil Nadu. Mr Kabirdass said the target buyers of its 250-watt variants are teenagers who typically travel less than 20 km a day.

A driving licence is not required to ride this low-power scooter.

Mr Kabirdass said the company is in talks with a few European electric vehicle makers to acquire the licence to manufacture and market their products in India.

Source: Moneycontrol.com

Mahindra Holidays IPO receives solid response: subscribed 9.74 times

2009-06-27T23:14:00.002+05:30

Mahindra Holidays IPO receives bids for 9.02 crore shares as against 92.65 lakh shares on offer.

Mahindra Holidays & Resorts India initial public offer was subscribed 9.74 times on the last day of subscription today as per the data on NSE website at 17:00 IST. The issue which opened for subscription on 23 June 2009 got bids for 9.02 crore shares as against 92.65 lakh shares on offer.

The company's 92.65 lakh public issue represents 11% of the post-issue paid up capital. The Mahindra Holidays IPO price band is Rs 275-Rs 325.

Mahindra Holidays & Resorts India runs the shared vacation home business, Club Mahindra Holidays. India's largest tractor maker by sales Mahindra & Mahindra holds 93.64% in the company.

The Mahindra Holidays IPO proceeds will be utilised in expanding current properties and adding five new properties at Kumbalgarh in Rajasthan, Kadambakkam in Tamil Nadu, Binsar in Uttaranchal, Theog in Himachal Pradesh, and Tungi in Maharashtra.

Mahindra Holidays & Resorts India, a unit of Mahindra & Mahindra, had raised nearly Rs 120 crore by selling 2% stake to State Bank of India and 1% stake to Jacob Ballas India Fund in February 2008. The transaction had taken place at Rs 479 a share.

The company's net profit fell 5% to Rs 79.80 crore on 11% rise in sales to Rs 393.19 crore in the year ended March 2009 over the year ended March 2008.

Source: CapitalMarket.com

Adani Power IPO to hit markets on 20th July

2009-06-25T20:05:00.002+05:30

SEBI has given green signal to Adani Power Limited’s initial public offer (IPO). The company is expected to hit the capital market on 20th July. APL, which had postponed its IPO due to bad market condition in September 2008, is now planning to raise over Rs 3,000 crore for financing its 6600 MW power plants at Mundra and Tiroda in Gujarat and Maharashtra respectively.

As per the plan, Adani Power Limited is offering 33.77 crore equity shares through the IPO. The company is expected to charge a premium of around Rs 120 per share of Rs 10, sources familiar with the situation said.

At present, the promoters hold 87 per cent equity in the company. Post IPO, the promoters will have around 73.5 per cent holding as it is raising an additional 15 per cent equity through IPO. It may be pointed out that a UK based private equity fund has already picked up 8 per cent equity in the company.

Source: greymarket.in

Mahindra Holidays IPO subscribed 0.86 times

2009-06-25T20:00:00.002+05:30

Mahindra Holidays and Resorts India (MHRIL), a part of the Mahindra Group, opened for subscrption with an initial public offering (IPO) of 92,65,275 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process. The issue was subscribed 0.86 times, till 5 pm on June 25 - the third day - as per the data available on the NSE website.

Mahindra Holidays IPO has received bids for 79,58,540 shares as against issue size of 92,65,275 shares.

Qualified institutional investors gave good response to the issue compared to retail and domestic institutional investors; their portion subscribed 0.63 times, till June 24.

The bid/ issue will close on June 26, 2009. The Mahindra Holidays IPO price band has been fixed at Rs 275-325 per share. The size of the issue stands Rs 301 crore at the upper end of the price band and Rs 255 crore at the lower end of the band. M&M (Mahindra and Mahindra) will raise Rs 90.7-123 crore from the sale of 33 lakh shares and it will hold 83% of the Mahindra Holidays post issue.

The issue comprises a fresh issue of 58,96,084 equity shares and an offer for sale of 33,69,191 equity shares by Mahindra and Mahindra (the "selling shareholder"). The issue would constitute 11.0% of the fully diluted post-issue paid-up capital of the company.

The proceeds from MHRIL's proposed issue are expected to be deployed in the setting up of new projects and expansion of some of the existing resorts, to provide a larger range of resorts, and hence a wider choice of holiday destinations to members.

The global coordinator and book running lead manager (BRLM) is Kotak Mahindra Capital Company Limited. HSBC Securities & Capital Markets (India) Private Limited and SBI Capital Markets are the BRLMs. The equity shares are proposed to be listed on the Nationa

Source: MoneyControl.com

Rishabhdev Technocables IPO to list on June 29

2009-06-25T19:46:00.001+05:30

After receiving fabulous response to the follow-on public offer (FPO), Rishabhdev Technocables will list its equity shares on the BSE on June 29, 2009. It has been fixed its FPO issue price at Rs 33 a share (including Rs 23 premium) and raised over Rs 29.70 crore.

The Rishabhdev Technocables IPO had opened for subscription between June 4 and June 9, 2009. It was subscribed 7.76 times, as per data available on the NSE website.

Rishabhdev Technocables is specialized, controlled and power cables manufacturer promoted by Sunil Golchha. The funds are being raised to finance the setting up of a brand new, low voltage power cables plant at Silvassa. Machinery for this plant has been ordered and the plant is expected to go on stream by the end of the year.

The company currently has two units in Daman, one for specialized cables and the other for controlled cables and smaller size power cables. Additional facilities are being added to both units to make them more cost efficient. The Company has a blue-chip clientele which includes Tata Power, Grasim, Reliance, Essar, Siemens, Sanghi, Alok Industries and Welspun, among others.

Its shares are currently listed on the Pune and Jaipur stock exchanges and the company now proposed to list on Bombay Stock Exchange.

The book running lead managers were IDBI Capital Market Services and PL Capital Markets Pvt. Ltd. while the co-book running lead manager was Ashika Capital Ltd.

Source: MoneyControl.com

Subscribe to Mahindra Holidays IPO: Angel Broking

2009-06-24T21:15:00.001+05:30

Angel Broking has come out with its research report on Mahindra Holidays and Resorts India's initial public offering (IPO). Mahindra Holidays has opened for subscription with an IPO of 92,65,275 equity shares of Rs 10 each, at a price band of Rs 275-325 a share. The issue will close on June 26, 2009. The research firm has recommended investors to subscribe the issue albeit at the lower end of the price band.

Angel's report on Mahindra Holidays’ IPO:
Through this IPO, which also involves an offer for sale by the promoter company M&M, MHRIL intends to finance expansion of its resorts in Coorg, Ooty and Ashtamudi, and for setting up new ones in Tungi and Theog. However, MHRIL is being priced at a ‘considerable’ premium to the other listed hospitality players, who already have premium properties. Nonetheless, we believe that the good reputation enjoyed by the promoter group, justifies the premium valuation for the company to an extent, and hence we expect the IPO to be received well in the primary market. Also, in a pre-IPO placement that was done in February 2008, State Bank of India (SBI) and Jacob Ballas picked up 3% stake in the company at Rs 479 per share, which had valued MHRIL at USD1billion.

On the lower and upper end of the IPO price band, the stock would quote at 15.2x and 17.9x its post diluted FY2011E Earnings. On the basis of our workings on profits earned per member, we have arrived at a value of Rs 2,494 crore for the business, which translates into a per share value of Rs 296. Hence, we recommend a Subscribe on the IPO albeit at the lower end of the price band. Assumptions in our model: 1) Average revenue per member of Rs 2,25,000; 2) Estimated capex of Rs 34,200 to be made per member addition; 3) Marketing costs of Rs 75,000 per new member, and 4) Cost of providing service for the next 25 years Rs 63,925 per new member.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

Mahindra Holidays IPO subscribed 0.40 times by day two

2009-06-24T19:39:00.001+05:30

Receives bids for 36.93 lakh shares as against 92.65 lakh shares on offer

Mahindra Holidays & Resorts India initial public offer (IPO) saw modest response on day two. It was subscribed by 0.40 times (by 16:00 IST). The issue which opened for subscription on 23 June 2009 got bids for 36.93 lakh shares as against 92.65 lakh shares on offer.

The company's 92.65 lakh public issue representing 11% of the post-issue paid up capital will remain open till 26 June 2009.

The IPO proceeds will be utilised in expanding current properties and adding five new properties at Kumbalgarh in Rajasthan, Kadambakkam in Tamil Nadu, Binsar in Uttaranchal, Theog in Himachal Pradesh, and Tungi in Maharashtra.

Mahindra Holidays & Resorts India, a unit of Mahindra & Mahindra, had raised nearly Rs 120 crore by selling 2% stake to State Bank of India and 1% stake to Jacob Ballas India Fund in February 2008. The transaction had taken place at Rs 479 a share.

Mahindra Holidays & Resorts India runs the shared vacation home business, Club Mahindra Holidays. India's largest tractor maker by sales Mahindra & Mahindra holds 93.64% in the company.

Source: CapitalMarket.com

Mahindra Holidays IPO sees dismal response on day one

2009-06-23T19:30:00.002+05:30

Mahindra Holidays IPO receives bids for 4.11 lakh shares as against 92.65 lakh shares on offer.

Mahindra Holidays & Resorts India got poor response for its initial public offer (IPO) on day one. The issue which opened for subscription today, 23 June 2009 got bids for 4.11 lakh shares (by 16:00 IST) as against 92.65 lakh shares on offer.

The company's 92.65 lakh public issue representing 11% of the post-issue paid up capital will remain open till 26 June 2009.

The Mahindra Holidays IPO proceeds will be utilised in expanding current properties and adding five new properties at Kumbalgarh in Rajasthan, Kadambakkam in Tamil Nadu, Binsar in Uttaranchal, Theog in Himachal Pradesh, and Tungi in Maharashtra.

Mahindra Holidays & Resorts India, a unit of Mahindra & Mahindra, had raised nearly Rs 120 crore by selling 2% stake to State Bank of India and 1% stake to Jacob Ballas India Fund in February 2008. The transaction had taken place at Rs 479 a share.

Mahindra Holidays & Resorts India runs the shared vacation home business, Club Mahindra Holidays. India's largest tractor maker by sales Mahindra & Mahindra holds 93.64% in the company.

Source: CapitalMarket.com

Rishabhdev Technocable IPO Allotment Is Now Available

2009-06-23T19:22:00.001+05:30

Rishabhdev Technocable IPO Allotment is out now, please visit below link to check Allotment status - http://www.mondkarcomputers.com/ipo.asp

Rishabhdev Technocable IPO Grey Market Premium is Rs. 5/- to Rs. 7/-

Adani Power IPO Likely to Open in July 2009

2009-06-13T01:54:00.001+05:30

Adani Power's initial public offer (IPO) is likely to open in July, 2009, said the Group Executive. "The IPO is likely at about Rs 120 per share," reports CNBC-TV18.

Adani Power, a part of the the Adani Group, filed draft red herring prospectus (DRHP) with market regulator SEBI for IPO of 33.7 crore equity shares. The issue includes a reservation of up to 8,000,000 shares. Equity shares outstanding post issue would be 2,18,00,35,200.

It is a power project development company, which is developing, and will operate and maintain, power projects in India. It has four thermal power projects under various stages of development, with a combined installed capacity of 6,600 MW. In addition, it is also planning to develop two power projects with a combined installed capacity of 3,300 MW.

The company is going to utilize the issue proceeds - to part finance the construction and development of Mundra Phase IV Power Project, for 1,980 MW; funding equity contribution in subsidiary Adani Power Maharashtra Limited and to part finance the construction and development cost of power project for 1,980 MW at Tiroda, Maharashtra; and General corporate purposes.

The company has made preferential allotment to Ventura Power at Rs 70 a share. This placement price values the company at Rs 15,260 crore post IPO.

Adani Enterprise, promoter will hold 70.25% stake in the company post IPO.

Global coordinator and book running lead manager to the issue is DSP Merrill Lynch Limited and Registrar to the issue is Karvy Computershare Private Limited.

Source: Moneycontrol.com

Rishabhdev Technocables IPO receives poor response on day one

2009-06-04T22:17:00.001+05:30

Follow on public offer was subscribed meager 0.13 times on day one.

Rishabhdev Technocables' follow-on public offer aggregating around Rs 30 crore saw a poor response on day one. The issue got bids for just 9.11 lakh shares (at 16:00 IST). The issue was subscribed just 0.13% of the total issue size. The issue closes on 9 June 2009. This is the first public offer to hit the market in nearly three months and has a firm underwriting arrangement.

The company is issuing 90 lakh equity shares of Rs 10 each for cash at a price to be decided through 100% book building process. The net offer to the public will comprise of 68.54 lakh equity shares aggregating around Rs 23 crore. The promoters are subscribing to 21.45 lakh equity shares at the issue price.

The price band is fixed between Rs 29 and Rs 33 a share.

Rishabhdev Technocables is specialized, controlled and power cables manufacturer promoted by Sunil Golchha. The funds are being raised to finance the setting up of a brand new, low voltage power cables plant at Silvassa. Machinery for this plant has been ordered and the plant is expected to go on stream by the end of the year.

Rishabhdev Technocables currently has two units in Daman, one for specialized cables and the other for controlled cables and smaller size power cables. Additional facilities are being added to both units to make them more cost efficient. The Company has a blue-chip clientele which includes Tata Power, Grasim, Reliance, Essar, Siemens, Sanghi, Alok Industries and Welspun, among others.

Its shares are currently listed on the Pune and Jaipur stock exchanges and the company now proposes to list on Bombay Stock Exchange.

Source: CapitalMarket.com

Rishabhdev Technocable IPO to open on June 4

2009-05-31T18:19:00.003+05:30

Rishabhdev Technocable, a cable manufacturing and trading company is entering the capital market with its initial public offer of 90,00,000 equity shares of Rs 10 each. The issue will open on June 4, 2009 and close on June 9, 2009. The price band is fixed at Rs 29-33 per share.

The issue comprises a promoters contribution of 21,45,500 equity shares and a net issue to the public of 68,54,500 equity shares. The net issue to the public would constitute 46.66% of the fully diluted post-issue equity share capital of the company.

The existing equity shares of the company are listed for trading on the Pune Stock Exchange (PSE) and the Jaipur Stock Exchange (JSE). The fresh issue of shares of the company are also proposed to be listed on the Bombay Stock Exchange.

The company is expanding into manufacturing of Power and Control Cables on a major level. The objects of the issue include amongst others, expansion cum modernization of existing manufacturing facilities at Daman and setting up new facilities for manufacturing of Control and Power Cables at Daman and Silvassa respectively.

The book running lead managers to the Issue are IDBI Capital Market Services Limited and PL Capital Markets Private Limited.

Source: moneycontrol.com

Pranab Mukherjee is New Finance Minister: Key Portfolios Announced

2009-05-23T22:45:00.003+05:30

Dr Manmohan Singh took over as the twenty-first Prime Minister of India on May 22, 2009. Today, it was announced that Pranab Mukherjee was elected as the Finance Minister, while P Chidambaram would retain his position as the Home Minister. AK Antony has been appointed as the Defence Minister and Mamata Banerjee will take over as the Railway Minister. Sharad Pawar has been given the position of the Agriculture Minister, Food and Civil Supplies. SM Krishna is the new External Affairs Minister.

Finance Minister Pranab Mukherjee said his task is to encourage the economy. "We will address all economic issues. Efforts will be made to return to high growth as soon as possible." He said the government will present the Budget in due course to remove uncertainty. Mukherjee will assume charge on May 25.

Other Cabinet members sworn in on May 22 include: Ghulam Nabi Azad
Sushil Kumar Shinde
Veerappa Moily
Jaipal Reddy
Kamal Nath
Vayalar Ravi
Meira Kumar
Murli Deora
Kapil Sibal
Ambika Soni
BK Handique
Anand Sharma
CP Joshi

Source: Moneycontrol.com

Buy largecaps, midcaps on dips; sell on every rise: Experts

2009-05-21T20:03:00.002+05:30

It was a day of stark contrasts on Dalal Street. The frontline indices faced substantial selling pressure and continued to slide lower, while broader indices were in an orbit of their own, clocking stupendous gains The Nifty closed at 4,270, down 48 points, while the Sensex shut shop at 14,060, down 241 points.

Deven Choksey of KR Choksey Securities sees the Nifty trading between 4,150 and 4,500 in the short-term.

Anu Jain, Vice-President - IIFL Private Wealth Management, India Infoline, said the Nifty needs to consolidate at current levels. "The last 200 point consolidation on the Nifty happened between 3400 and 3600. Post that, it rallied further on. This is the same phase which is coming again."

Speaking on the rally in midcaps, Choksey said topline stocks have started becoming expensive and valuations are getting stretched, so investors have started catching up with some of the neglected midcap stocks at this point in time.

However, he was quick to caution that investors may fall into a trap because in many midcap stocks, fundamentals are not supporting these companies immediately. "It might take at least six-nine months before we could see the first results coming out from some of these companies. Some midcaps would be moving up and may discount the future in advance. That is where some investors may lose out on money."

Choksey advises investors to retain at least 70% portfolio and book profits in around 25-30% of the portfolio when the markets are rallying on the upside. "Investors should buy on dips and sell on rises. One will have to continue this activity for 25-30% part of the portfolio." Investors need not rush to make fresh investments in markets, he added.

Jain too advises investors to buy largecaps and midcaps on dips.

Source: Moneycontrol.com

Don't get carried away with euphoria in markets: Experts

2009-05-20T19:22:00.004+05:30

Yesterday, the benchmark indices closed on a flat note today amid huge volatility and also reported the highest ever turnover of Rs 157877.29 crore after seeing two upper circuits on Monday.

Commenting on the market's move, Dipan Mehta, Member of the BSE and NSE, said there was a massive buy order in the futures segment in the first few minutes of trade and because of the sharp rise in the implied volatility, there have been huge increases in the margins. "In some instances the margins have gone up anywhere from 4–5 times from what was there on Friday. That is causing a bit of a concern on the liquidity of the brokers." He added there may be some pressure on the clients or at least on traders who are in the futures market to try and unwind their short positions.

Mehta expects the market to get into a healthy trading range––maybe 200 points for the Nifty and about 600 points for the Sensex with today’s close being the midpoint.

On the whole, Mehta feels, the market will get into a nice rhythm and will see increased participation in terms of players as well as in terms of stocks. However he cautioned, it is important not to get carried away by the euphoria but still look for opportunities to increase exposure to equities.

While Amitabh Chakraborty, CFA, FRM President (Equites), Religare Capital Market, said one should be cautious at this point of time. He added though that there is a lot of optimism getting built-up on what the government will do in the budget or the next 100 days. Given the bureaucratic situation, he said, the new government may not be able to deliver in the next 100 days as the market is expecting.

However, Chakraborty added that with a stable government in place a lot of things would be happened––India would be re-rated from the S&P or Moody's point of view, the investment climate will improve and India would be a capital investment story. He added if India’s growth rate improves to 6–6.5% that will account to about 20%–22% of the global growth. According to him, a country that gives such kind of growth cannot be ignored. "So I expect USD 4–5 billion investments coming in the full year from the FII side." However, Chakraborty, like Mehta, added a cautious note saying, "I think retail investors should be cautious at this point in time."

Rajat Bose of rajatkbose.com expects a further upside on the Nifty. He said that 4,327 mark for the Nifty is a very crucial level. "If Nifty were to stay above that on a closing basis on a persistent basis then we can expect further upside."

According to him, between 4,450 and 4,469 is another resistance level. He feels now this band would be 4,300 to 4,475, or 4,500 at best.

Bose expects some kind of consolidation, especially after a vertical move of about 700 points. "So we require some kind of consolidation, and possibly, in that consolidation unless we see 4,549 not being crossed decisively by the spot Nifty, then maybe that support at 4,327 might be broken."

Source: Moneycontrol.com

How votes will be counted on Saturday

2009-05-15T19:35:00.004+05:30

All eyes are on Saturday's vote count. A glance at the arrangements the Election Commission has made for the mammoth exercise across the country:

* Total counting centres: 1,080
* Total counting halls: 4,260
* Counting staff deployed: approximately 60,000
Secure arrangements for counting agents of candidates to witness the counting procedure.
* A micro-observer at every table
Random checking of electronic voting machines (EVMs) by recounting of two counted machines after every round by micro-observers.
* Proceedings in the counting hall shall be video-graphed.
* Tabulated data to be verified by observers.
* Each counting centre has one counting hall for every segment of the constituency, one data centre and one media centre.
* The result sheet from each counting hall after the end of every round shall be sent to data centre and the media centre simultaneously.

Source: Moneycontrol.com

World's 8 Biggest Stock Exchanges

2009-05-10T17:48:00.010+05:30

You either make or break your fortune in stock markets, it is said. And rightly so. While we often get to hear of men turning paupers overnight when the stock markets crash, tales of people like Warren Buffett and Rakesh Jhunjhunwala inspire us to dream big.

Here we present information about the world's eight biggest stock markets. They have not been ranked. Read on...

1. New York Stock Exchange: $21.79 trillion share trades
The New York Stock Exchange (NYSE) is nicknamed the 'Big Board'. This is the largest stock exchange in the world by dollar volume with 2,764 listed securities. It has the second most securities of all stock exchanges.

The NYSE originated on May 17, 1792. On that day, the Buttonwood Agreement was signed by 24 stock brokers outside New York's 68 Wall Street under a buttonwood tree.

The first office of NYSE was a room at 40 Wall Street rented for $200 a month. NYSE was gutted in the Great Fire of New York in 1835 and reconstructed soon after. In 1865, it moved to 10-12 Broad Street.

2. NASDAQ: $11.81 trillion share trades
The NASDAQ is the acronym for National Association of Securities Dealers Automated Quotation System. An American stock exchange, NASDAQ is the largest electronic screen-based equity securities trading market in the US.

It is owned and operated by the NASDAQ OMX Group.

With about 3,200 companies in its ambit, NASDAQ has more trading volume per day than any other stock exchange.

NASDAQ came into being in 1971 by the National Association of Securities Dealers. The latter divested themselves of it in a series of sales in 2000 and 2001.

NASDAQ was the successor to the over-the-counter (OTC) and the 'Curb Exchange' systems of trading. As late as 1987, the NASDAQ exchange was commonly referred to as the OTC.

3. The London Stock Exchange: $7.57 trillion share trades
London Stock Exchange, or LSE, is located in London, England. It is part of the London Stock Exchange Group plc.

At present, it is situated in Paternoster Square close to St Paul's Cathedral in the City of London. One of the largest stock exchanges in the world, LSE was founded in 1801.

The trade in shares in London began with the need to finance two voyages: The Muscovy Company's attempt to reach China via the White Sea north of Russia, and the East India Company voyage to India and the east.

Unable to finance these costly journeys, the companies raised the money by selling shares to merchants, giving them a right to a portion of any profits eventually made.

4. Tokyo Stock Exchange: $5.82 trillion share trades
The Tokyo Stock Exchange, or TSE, located in Tokyo, Japan, is the second largest stock exchange in the world by market value, second to the New York Stock Exchange, but 4th in terms of worth of shares traded.

It currently lists 2,271 domestic companies and 31 foreign companies.

The Tokyo Stock Exchange was established on May 15, 1878, as the Tokyo Kabushiki Torihikijo under the direction of then Finance Minister Okuma Shigenobu and capitalist advocate Shibusawa Eiichi. Trading began on June 1, 1878.

In 1943, the exchange was combined with 10 other stock exchanges in major Japanese cities to form a single Japanese Stock Exchange. The combined exchange was shut down and reorganised shortly after the bombing of Nagasaki.

5. Euronext: $3.85 trillion share trades
Euronext N.V. is a pan-European stock exchange based in Paris with subsidiaries in Belgium, France, Netherlands, Luxembourg, Portugal and the United Kingdom.

In addition to equities and derivatives markets, the Euronext group provides clearing and information services.

Not too long ago, Euronext merged with NYSE Group to form NYSE Euronext, the 'first global stock exchange'.

Euronext was formed on September 22, 2000 in a merger of the Amsterdam Stock Exchange, Brussels Stock Exchange, and Paris Bourse.

In December 2001, Euronext acquired the shares of the London International Financial Futures and Options Exchange, which continues to operate under its own governance.

6. Deutsche Borse: $2.74 trillion share trades
Deutsche Borse AG is a marketplace organiser for the trading of shares and other securities. It also is a transaction services provider. It gives companies and investors access to global capital markets.
Deutsche Borse was founded in 1992. The headquarters are in Frankfurt, Germany.

More than 3,200 employees of the exchange serve customers in Europe, the US and Asia. Deutsche Borse has locations in Germany, Luxembourg, Switzerland, Czech Republic and Spain, as well as representative offices in London, Paris, Chicago, New York, Hong Kong, and Dubai.

FWB Frankfurter Wertpapierborse (Frankfurt Stock Exchange), is one of the world's largest trading centers for securities. With a share in turnover of around 90 per cent, it is the largest of the German stock exchanges.

Deutsche Borse AG operates the Frankfurt Stock Exchange.

In 2001, Deutsche B�rse tried to merge with the London Stock Exchange, followed in 2006 by a takeover bid, both rejected by LSE.

7. Borsa Italiana: $1.59 trillion share trades
The Borsa Italiana S.p. A., based in Milan, is Italy's main stock exchange. It was privatised in 1997, and was acquired by the London Stock Exchange in October 2007.

Borsa Italiana has managing responsibility for Italy's derivatives markets and its fixed income market.

Milan's Borsa di Commercio (Commodities Exchange) opened under a vice-royal decree on 16 January 1808 and it operated under public ownership until 1998.

It was sold to a consortium of banks, and operated under a S.p. A. holding company between January 2, 1998 and an all-share takeover by the London Stock Exchange on October 1, 2007.

8. SWX Swiss Exchange: $1.40 trillion share trades
SWX Swiss Exchange is Switzerland's stock exchange, based in Zurich.

The main stock market index for the SWX Swiss Exchange is the SMI. The index consists of the 20 most significant equity-securities based on the free float market capitalisation.

The exchange also trades other securities such as Swiss government bonds and derivatives such as stock options.

The SWX is the first stock exchange in the world to incorporate a fully automated tradingsystem in 1995..

The SWX is the joint owners of the Eurex, world's largest futures and derivatives exchange along with their German partners Deutsche Borse. In July 2004, the Swiss Stock Exchange rejected a proposal of merger from the German company.

In September 2006, the Swiss Market Index crossed its previous all time high set nearly eight years ago.

Source: specials.rediff.com

EdServ IPO subscribed 1.30 times

2009-02-11T20:00:00.000+05:30

The IPO of EdServ Softsystems has received 51,49,000 bids as against issue size of 39,73,908 shares and got subscribed 1.30 times, as per NSE website data.

Qualified institutional, non-institutional and retail investors have helped the issue to get subscribed fully.

EdServ Softsystems, an e-learning company, had opened for subscription on February 5, 2009 with an initial public offering of 39.7 lakh equity shares of Rs 10 each. The shares are proposed to be listed on the BSE and NSE.

The price band for the issue is fixed between Rs 55 and Rs 60.

Source: Moneycontrol.com

Gemini Engi Fab withdraws IPO

2009-02-11T19:55:00.002+05:30

Mumbai-based Gemini Engi Fab has called off its initial public offer on Monday, a day before its scheduled opening.

The Rs 44-crore issue was slated to open on Tuesday and close on Friday.

Poor response from qualified institutional buyers (QIB) is the main reason cited by he merchant banker for the cancellation of the issue.

Even a week ago, company officials and merchant bankers to the issue were confident that the issue would go through smoothly despite current dull market conditions. "It looks like as if the markets have stabilised at the moment and we have also priced the issue at a very decent level," Mr Sharad Rathi, Head-Marketing and Origination (Investment Banking), Almondz Global Securities (BRLM to the issue), had said at a press conference announcing the details of the issue last week.

The company had earlier postponed the issue by a month and a half and the price band was reduced substantially. "In the initial stages, QIBs showed interest in the IPO but now with the market tanking again they have backed out and they expect the markets to sink further," said an official with the merchant banker. He said that the company will enter the market at a later stage when things look better.

The company planned to issue 55 lakh equity shares at a price between Rs 75 and Rs 80.

The proceeds from the issue were to be used to part-finance the company's expansion plan of setting up a manufacturing workshop at Umbergaon in Gujarat. The proceeds were also to be utilised for the company's general corporate and issue expenses.

Up to 50 per cent of the issue was reserved for qualified institutional buyers, 35 per cent for retail investors and 15 per cent for non-institutional investors.

EdServ on
Meanwhile, EdServ another company which announced its IPO said that it would go ahead with its issue which is scheduled to open on Friday. The company has good QIB support and the retail interest is also good. As of now the IPO is on, said an official with the merchant banker to the issue.

Market conditions have not changed, they are the same what they were a few months ago. Investors are still wary about investing in the primary market, said Mr Prithvi Haldea, Managing Director of Prime Database.

There has not been an IPO since last October. Gemini Engi-Fab would have been the first issue to hit the market in four months, reports The Hindu Business Line.

Source: Moneycontrol.com

Ambanis up on Forbes' richest CEO list, Mittal slips

2009-02-04T21:55:00.000+05:30

They have lost more than USD 13 billion from their combined wealth, but still the two Ambani brothers have moved higher on Forbes' latest list of the world's ten richest CEOs, while Sunil Mittal has joined the league and Lakshmi Mittal has slipped two places.

Legendary American investor Warren Buffett has retained his top position on the annual list, but Indian-born steel tycoon Lakshmi Mittal has been toppled from his last year's second position by software major Oracle chief Larry Ellison.

Mittal has moved down to fourth position, while Mukesh Ambani, the elder of the two warring brothers, has jumped three positions to grab third rank this year.

The younger Ambani, Anil, has also moved up one place to sixth rank on this year's 'Forbes list of ten wealthiest CEOs'.

While another Indian business chief, Azim Premji, has moved out of the top-ten list, compatriot Sunil Mittal of Bharti Airtel has joined the league at ninth position.

IT major Wipro Chairman Premji was ranked ninth on the previous year's list. The total number of Indians on the list has remained unchanged at four on this year's list.

"Being a CEO isn't what it used to be. Crackdowns on corporate frills like private jets and over-the-top offices have become the norm, taking some of the fun -- but none of the stress -- out of running billion-dollar businesses," Forbes said.

Source: Yahoo.com

Gemini Engi-Fab IPO opens on Feb 3

2009-02-01T20:42:00.001+05:30

Gemini Engi-Fab is engaged in manufacturing and salvaging of process equipments through fabrication for various process industries namely, cement, dairy, refinery, pharmaceutical, petrochemical, power and chemical. Fabrication is building of machines, structures, or process equipment as required, by cutting, shaping and assembling components made from raw materials.

The company is an ISO 9001: 2000 certified company. In the year 2003, this certificate was awarded to design, manufacture and supply fabricated process equipments for food, dairy, cement, refinery, nuclear power projects, power projects & chemical projects on turnkey & salvaging basis.

The company proposes a public issue of 55 lakh equity shares of Rs 10 each for cash, which would constitute 46.40% of the fully diluted post issue paid-up capital of the company.

The issue will open on February 3, 2009 and close on February 6, 2009, with a price band of Rs 75 to Rs 80 per equity share.

The company will be raising around Rs 41.25-44 crore from this issue and will be using for setting up of a manufacturing workshop a Umbergaon, Gujarat.

CARE has assigned IPO grade 2 to this issue. Equity shares will be listed on the BSE and NSE.

Book running lead manager to the issue is Almondz Global Securities Limited and Karvy Computershare Private Limited is the registrar to the issue.

Courtesy: Moneycontrol.com

EdServ Softsystems plans IPO

2009-02-01T20:36:00.002+05:30

EdServ Softsystems, an e-learning company, would be tapping the capital market with an initial public offering of 39.7 lakh equity shares of Rs 10 each. The shares are proposed to be listed on the BSE and NSE. The price will be decided through 100 per cent book-building process.

The price band for the issue is fixed between Rs 55 and Rs 60. Issue will open on February 5 and will close on February 9. The company plans to raise between Rs 23.8 crore and Rs 21.8 crore.

Post issue, the founder stake would come down to 29.5 per cent from 44.06 per cent, while Kalpathi Investments Pvt Ltd’s stake would be reduced to 31.08 per cent stake (46.46 per cent).

The earnings from the issue will be used for developing the copyrighted D2j content by HEADS Learning (HEAL) architecture, financing the cost for establishing the HEAL Lab to develop, test install, connect and implement D2J across all its HEAD offices and also to expand their HEADS offices across the country.

It will use the proceeds to fund its other expansion plans as well.

Qualified institutional buyers will be allotted 50 per cent of the issue, 15 per cent to non-institutional investors and the remaining 35 per cent will be allocated to retail investors. The company has reserved 2 lakh shares for employees.

The book running lead managers for the issue are Keynote Corporate Services and Ashika Capital, reports The Hindu Business Line.

Courtesy: Moneycontrol.com

Investing in 2009: ALL your questions answered

2008-12-27T20:52:00.004+05:30

It's been a bad year across asset classes, whether one bought into a commodity or a stock or the stock market.

It was one where the Sensex started off with the market close to 21,000 and before closing, crashed almost 50%. Global markets came off a whole lot as well — which can be a little comforting.

It also came off very sharply for the big stars of 2007. Real estate is one of the biggest losers this time around. Metals, infrastructure, everything that had the sheen of gold to it in 2007 has come off this time around, which is why we are doing it a bit differently towards the end of the year.

Here's a guide on what you should prepare yourself for in 2009, whatever be the space you want to look for. If you want to look at a mutual fund or you want to look at the equity market or with commodities or a call on home loans or any kind of loan next year, what should you expect from rates? CNBC-TV18’s Managing Editor Udayan Mukherjee answers.

Here is a verbatim transcript of Udayan Mukherjee's exclusive interview on CNBC-TV18's show Classroom. Also watch the accompanying video.

Q: This has really been a full-blown bear market that many young people including myself have not seen in the past. The question is: what does one expect going into 2009?
Mukherjee: It is a difficult question to answer because at the start of the year a lot of people put forward a lot of opinions. Twelve months is almost like an eternity in the kind of world that we live in. So, the one caveat before I answer that to the best of my ability is: you must at every point reassess the situation. So, whoever you follow in the market, you cannot get stuck to one piece of opinion, which was given on December 31 or thereabouts and say that was the call for the entire full year because the best of analysts will go wrong. There will be twists and turns along the way and the thing about equities is that people change their opinions as they should at every interval depending on how the world is evolving and so should you as an investor.

You cannot be stuck with a predisposition of being bullish or bearish that you took at the start of this year. Having said that, you've put 12 months of utter bearishness behind you in 2008. Therefore to go into 2009, you’ve got to keep the history in mind that. Yes, you may be in a bear market but you've already put behind 12 months of it into stock prices.

So, there could be wild fluctuations and the one thing that could actually play out at some point or starting some point in 2009 is the market gets into some kind of a trading range, which we haven’t seen in 2008. It has been one big drift down.

So, in 2009, if history is any indication you could start to get into some kind of a trading range. I have no idea, not the foggiest notion of what that trading range could be. It could be 7,000-12,000; it could be 10,000-15,000. So, there is no saying what that range will be. But as an investor, what pays if you look back into the couple of times I have seen these ranges play out is: you approach some kind of a trading attitude or disposition to the market, which is you don’t want to get wedded into stocks. You say every time there is panic and the market goes down to maybe those sub-10,000 levels then you buy and play for those rallies because at some point you get those bear market rallies maybe to 11,000-13,000. At that point you take your profits once again.

So, my approach in 2009 till the market tells you that it has begun trending once again, which it has not at the end of 2008, is to try and take away 15-20% whenever the market is giving you and then preserve your gunpowder for a better day.

Q: What about the less active investors? The problem with this year is not the fact that people who invested or got into the market this year were suffering. It is the people who have been holding for many years via mutual funds also came out with very deep cuts. What happens to those kinds of longer-term investors?
Mukherjee: If you are a mutual fund investor and you have that predisposition that you would buy when the markets are down and you would hold for two-five years and make a lot of money. The prudent approach from an equity mutual fund investor's point of view, then, would be to buy at low levels for the market.

So, the one thing that you have to tell yourself is: you cannot time the market perfectly, but you know that the market in 2008 had gone and visited 7,500. So, you keep that as a ballpark figure saying those are the lows. I will buy close to the lows.

The risk for that kind of assessment is that the market runs away from you and does not get back to sub-10,000 levels. So, I may start at 9,000 and buy all the way till 7,000 or below wherever the market goes. But at least I have that cushion of safety at around those kinds of levels and I do not chase prices above 11,000-12,000 and then commit money. So, as a mutual fund investor — not a trader — buy low should be the mantra of 2009. Every three or six months you get those periodic dips and that is the time to deploy money and wait for a couple of years after that.

Q: One thing that worked for the better part of this year was playing it through the fixed income route. Because of what's been happening in the macro-environment though, is that a good plan for 2009?
Mukherjee: The interesting thing is that people did well to hide in the fixed deposit or fixed income in 2008. 2009 will be not such an easy decision for two reasons. One is that fixed deposits will start getting you less and less. The tax rates will probably remain the same but those days of 10.5-11% fixed deposit are probably not going to exist in 2009. Now fixed deposit rates will keep coming down in 2009. My own assessment is that by the time we are done with the year, one is probably talking 8% FD or something like that. It could be 50-75 basis points here or there but if it is indeed 8% then you’re talking three percentage points lower on FD — 8% FD return meaning post tax one is talking closer to may be 5.5-6%. Now you are already at 6% virtually, how much lower will the benchmark yield go — 5-5%? But you will probably in the last bit of that government security rally with maybe not too much to go. The easy money has been made in that fall of the yield from 10% to 6%. So you would want to reassess how you’d want to structure yourself. You could still get reasonable returns from fixed income mutual funds but the party to a large extent has played itself out and may be the end of the party gong is about to go.

Here are expert opinions on 2009 and what you should be prepared for:
Atul Suri, Trader: Identify a trend from a good 50-day moving average. Identify the weak sector, very often the most fancied sector becomes the weakest. We’ve seen it in the 2000 slump and we see it now. In that, look for those restless losses that are tending to fall or go down much before the market goes into things. That helps you to really identify stocks and that is really what you can go out and short.

Jyotivardhan Jaipuria, Head of Research, DSP Merrill Lynch: Ultimately what as an investor you are bothered about is the profit growth rather than the sales growth because you don’t want somebody to keep having huge sales growth, which is very unprofitable.

Dr. CK Narayan, ICICI Securities: This is more from a money management perspective; you can have any kind of stop. But then it should be meaningful to the amount of money that you have. There is no point in having a 5-15% stop because it will blow you out in three trades and all your money is gone. So, have it realistic aligned to the capital, make it 1-2% at the most, so that you will be alive to take more trades and hopefully make more profits.

Nilesh Shah, MD & CEO, Envision Capital: What we have seen over the last few weeks is that the commodity cycle seems to have got busted. Commodity prices across the board are virtually at a four- to six-year lows. I This really bodes well for India because India is a net consumer and a net importer of commodities. What this will do is it will reduce input costs for companies, it will therefore improve their profitability and inevitably lead to lower prices for the consumer, which in turn would lead to increased demand over a period of time. So, I think commodity prices have significant implications and the recent correction in commodity prices really augurs very well for an economy like India.

Here's is a CNBC-TV18's Anichya Shah on bear market lessons to be learned from 2008. And before.

We have seen about 25 bear markets including this one since the 1870s. [US Federal Reserve Chairman] Ben Bernanke's predecessor Alan Greenspan has called this the worst financial crisis in the last 50 years. So what are the key takeaways from this entire global meltdown?

The biggest mistake investors made was saying that this time it is different. It usually never is. Remember Benjamin Graham once said that Wall Street is a place where people learn nothing and forget everything. Make sure that does not happen because the villains change but the outcome remains the same.

Leverage is okay but only to the amount and the extent that one can afford to lose completely because the risk reward ratio does act as a double-edged sword.

Avoid catching a falling knife. That was the biggest mistake a lot of investors made after the January sell-off. To quote trading great Jesse Livermore, he said: never add onto a losing bet.

Bear markets like bull markets are cyclical. They do take their time but patience is a virtue in such markets.

To quote Warren Buffet on the next one: look at market fluctuations as your friend rather than your enemy. Profit from the folly rather than participate in it.

Do not fear this 50% sell-off and look for opportunities. Having said that, traditional valuation tools like price-to-earnings, price/earnings-to-growth or PEG, EV/EBIDTA may not work effectively in a bear market when the earnings component is not known. Core balance sheet stripping is the only way to go.

New stars and sectors emerge from each bear market going into a new bull market. So don't fall in love with your old investment ideas. Remember to narrow your portfolio down to few core and key stocks because it is very difficult to track a very large falling portfolio.

Wall Street is always right and it usually always does lead to the Main Street. Lastly, use this time of the bear market to update your skills, go back to school, read a few books, do some bottom-up analysis so that you profit from the next bull market.

Here is an interview with CNBC-TV18’s Associate Editor - Financial Markets Latha Venkatesh on macro trends to watch out for in 2009.
Q: We saw this trend developing towards the end of the year. Can one expect significantly lower rates and also yields going into 2009? What is your sense?

Latha: Inflation can dip fairly sharply. Remember in August 2008, inflation was as high as 12.6% largely because crude was at USD 147 per barrel. When you do year-on-year comparisons, chances are next year we will not only get down to 1% but perhaps even get a couple of negative numbers. That cannot be ruled out. So, inflation pushing down interest rates is always there.

The other factor will be risk aversion. One should see banks continuing to be a little wary of lending to corporates liberally because the downturn is still playing out. There are still people who are using capacity less than they did in the previous few months and that will not go away in a hurry. We will see that pain getting extended into the first quarter of 2009. So, when there is risk aversion, where will people put money? They will put their money into government bonds.

Also the government and the RBI will perhaps have to take a couple of more steps. They have the headroom in terms of inflation; they can take a couple of steps in terms of cutting down the reverse repo rates. The call is already getting louder. So, to expect the reverse repo to go to 4.5% in January and perhaps to 4% in April looks like a given.

There are some who will expect it to come down even earlier. If that is the case then how do bonds react? You are going to see a goodish amount of money going into bonds. The 10-year yield, which is now at 6% or thereabouts, can easily go towards the 5% mark. If the repo rate goes to 4%, then actually piercing the 5% is also not ruled out and all this could happen even as early as in the first quarter.

Thereafter there could be some pressure because in the first quarter of FY10, there will be a huge amount of bond announcements by the government. We know that the government’s revenues will not pick up in the first quarter of next year. Revenues will still continue to be under pressure. But expenditure will be big. Fiscal expansion is very much on the cards. So, you are going to see a huge amount of government borrowing. With that kind of bonds coming into the market, perhaps the fall in bond yields will be arrested.

What could also arrest the fall in bond yields is later on in the year, if corporate borrowing picks up, which it will at least for AAA companies and then for AA companies, borrowing can pick up. Then there is definitely tightness in the money. You can therefore see the 10-year yield perhaps falling to 5%, maybe even lower some people think. But by the end of 2009, you will perhaps see it climbing back towards the 5.5% or maybe even the 6% mark.

So, basically that is the kind of curve that you can expect in the bond markets.

Here, now, is CNBC-TV18’s Commodities Editor Manisha Gupta on what to expect from that space.

If there is anything that has looked as dramatic as the fall in our market, it has been the way crude has performed. Everybody was a bull on crude going into this year. Till the middle of the year, it looked like crude could touch completely phenomenal levels. But that has come off, and it has come off for many other commodities as well.

Commodities have taken a hit, but they have not died because all commodity bull runs have an average life of 15-18 years. The latest bull run that we have seen starting from 2001 really may have many more years to go.

Specifically on crude, it may have seen a bottom for now – USD 40 per barrel has held – and maybe you might see USD 40 breaching for the time being. But for most part of 2009, USD 40-USD 75 per barrel is where you might see crude prices trading within, because we have seen supplies cut down quite drastically. Most of the oil refineries and oil rigs also have cut down their production. So, you might be in for a supply shock for most part of 2009, the second half for sure, and that is when you would see support coming for prices. USD 40 per barrel or below should be a good strategy to start accumulating in crude.

The best commodity or the performer for 2009 really is gold because we have seen inflation concerns already starting to build-up. The various bailouts that we have seen from various central governments may lead to inflation and also to huge fiscal deficits and that would support buying in gold.

Also the US dollar weakness translates into buying in gold. Apart from that, lower interest rates from various central banks would give really less competition to gold. The immediate support for gold is at USD 750 per ounce on the lower side. USD 1,000 may easily be breached, which is the high that we saw in 2008. This is one area where your portfolio diversification really needs some judgement.

Base metals is another sector that has seen record highs in 2008. But at this point most of them are trading below their cost of production. This is one sector that may take longer time to come around. I think by mid-2009, you would be looking at selling in this sector because supplies are at multi-year highs, and demand is still not coming in, whether it is the industrial, manufacturing, auto, housing. All these sectors have done very badly in most of the developing countries, and demand is still nowhere to be seen.

So, it would be only by August or September 2009 where you would see some recovery in demand and some turnaround in prices. Till then, it is not such a good idea to buy base metals. So, shorting is the strategy that you can go ahead with in base metals.

Vivek Law, National Editor, CNBC-TV18 on personal finance cues for 2009.

2008 was a forgettable year for most people when it comes to their savings and investments. Is 2009 going to be better? What does every individual need to do as far as 2009 is concerned? There are two-three points here. The two silver linings that I see happening is that inflation seems to have been tamed. We are already in single-digit now for quite a few weeks. That trend is expected to continue. So, yes, that much less being eaten out of your savings/investment gives you a little more breathing space to an investor.

The second point is, we are likely to see far better returns on debt instruments both from the mutual fund route or directly and that is largely because we are going to see interest rates coming down. As you know, it is inversely proportional. The kind of returns that you get when interest rates fall, your returns go up. In 2008, we did see interest rates go up and therefore even the debt funds or the debt schemes were not able to deliver as much as they would have normally. We’ve already seen the cycle turning. A lot of debt funds are giving fairly decent returns at this point.

One of the instruments that a lot of the people park their money in, which was the Fixed Maturity Plan or FMP, till October happened, huge redemptions happened, Sebi tightened norms. My sense is 2009 is not going to be the year for FMPs. We are unlikely to see too many of them even being launched.

As far as debt mutual funds are concerned, it may be one good place to look at because over the next year, chances are that you are going to get pretty decent returns there. A fair amount of security because if you are looking at a gilt fund or a good balanced fund, that could perhaps also be a strong kicker.

I would imagine that there would be need for looking at some more asset classes in your portfolio. Property could be another good bet because over the last year or so, most investors have been sitting on the fence in anticipation of prices falling. The general sense is that there has already been 15-25% correction in certain markets; certain others are likely to see a correction in the first quarter perhaps of the coming year. Therefore property may be one more place, which you had actually put on hold, with interest rates going down as well, maybe one more area to look at.

So, while 2008 hasn’t been a great year, 2009 holds a lot of promise. But of course it is going to be even more imperative from hereon, as 2008 has taught us that you cannot just sit on your money, you just can not expend any energy in looking at it. It is imperative because in times such as this, you really not to be actively relooking at your portfolio, at your asset allocation, and that is going to be the way forward in 2009.

Source: Moneycontrol.com

Mkts may be hit in January

2008-12-25T14:00:00.002+05:30

The benchmark indices witnessed selling pressure throughout the session amid volatility. The Nifty went closer to the 2,900 mark but did not break that level. It closed with a loss of 51.80 points or 1.74% at 2916.85 after touching an intraday low of 2,900.45. The Sensex hovered around the 9,600 level for a major part of the day; it hit a low of 9,502.53 before ending the day at 9,568.72 down 118.03 points or 1.22% from previous close.

Even as trade continues to be volatile, experts are mixed on the forecast for the market’s short- and long-term courses. However, one thing is unanimous - the January results would be bad but they might have been priced in till now. Pressure on the markets, the experts added, would be seen once the results actually come out.

Pullback rally over?

Nitin Raheja, CIO, Rada Advisors, says the maximum the Nifty could have gone on the upside was 3,200. "Post that, it was always very difficult to justify valuations. As we get into January, one might see a pullback again broadly back to 3,000 levels in the short term depending on the new stimulus package," he said, adding, "However, once the [January quarter] results start pouring in, the markets will come under pressure again."

Impact of January earnings

Portfolio Manager PN Vijay feels any positive surprises — if there are any in the first place — could come from the construction companies and PSU banks. "Many of them have nice contracts and the market generally feels all construction companies are in trouble," he said. "PSU banks don’t have any great non-performing assets (NPAs) to worry about."

Vijay added that generally the earnings would be bad but the market might have discounted those. "Having said that, when the results do actually come out, there could be a bit of a jolt."

Short-term market course

On how could the market pan out over the next couple of trading sessions, Gaurav Ranade of Edelweiss Securities, said, "2,860 for me is a good technical level and the Nifty is still in an intermediate bull trend. The likelihood of seeing a pullback rally from this point onwards especially above 2,960 levels is good." He said the Nifty reached an overbought state at 3,110 — which it reached in the recent rally — "and we also saw a double top being formed. So on the upside, I would say that 3,110 levels would be a very strong resistance."

Talking about the January course, Nitin Raheja feels the Nifty would find support at its October low and sees it trade ranged between 2,500 and 3,200. "However, having said that, it would depend on fund flows — [if the flow is outward] we could even breach the lows."

PN Vijay is, however, more optimistic on the next two months. "I think we will have tremendous momentum coming into the next two weeks because the sense is that India is slowly coming out of the woods," he said. "Increasingly, there is good news on the macro economic front. If the stimulus packages start kicking into the system — even as it will take a bit of time — we should be seeing firm trading." Vijay, though, said the market course in the short term could also boil down to foreign institutional investor (FII) selling. "Throughout December, FII selling has been rather muted, which is why we had a very strong rally."

Forecast for 2009

Vijay said the Nifty would not retest the lows of 2,600–2,700 and would start consolidating first. He added that how far the Nifty goes up after consolidation would depend on how US’s economy pans out and how effective its President-elect Barack Obama is in stemming the rot. "Going forward though, I feel we should build from this Nifty 3,000 level quite nicely."

Source: Moneycontrol.com

GPSC defers IPO plan (Gujarat State Petroleum Corporation)

2008-12-23T22:08:00.001+05:30

Gujarat State Petroleum Corporation (GSPC) has put on hold its proposed initial public offer due to choppy market conditions, and will instead raise debt to part finance the gas development plan of its deepwater Krishna-Godavari block, Managing Director D.J. Pandian said today.

"We are not looking at the IPO right now. It may come at a later stage, probably closer to gas production from our KG Basin block. We will now raise the money through debt to part fund our investments," Pandian said.

GSPC was planning to mop up around $1 bln through its proposed IPO, in which the Gujarat government would have divested 10-15% of its holding in the company.

GSPC had already appointed five merchant bankers--DSP Merill Lynch, JM Financial, Citibank, Kotak Mahindra Capital Co. and SBI Caps--as advisors to the proposed public offer.

Pandian said the company will invest over 50 bln rupees more in developing the gas field in KG-OSN-2001/3 block in the KG Basin.

"We have already invested 20 bln rupees in the block and will invest at least another 50 bln rupees for beginning gas production," he said, reports Newswire 18.

Source: Moneycontrol.com

Sebi extends IPO validity period to 1 year

2008-12-23T22:06:00.000+05:30

Market regulator Sebi (Securities and Exchange Board of India) has extended the IPO validity period to one year in its board meeting. Sebi Chairman CB Bhave said companies can use IPO funds only after allotment of shares. There will be no exits provided in debt funds. Shareholders with demat will get rights share in demat form. There will also be no early exit on close-ended MF schemes.

Source: Moneycontrol.com

SBI Life to list in 18-24 months

2008-12-07T21:51:00.001+05:30

State Bank of India, or SBI, is concerned about the bank's asset quality, reports CNBC-TV18, quoting Newswire18. “There is no concentration of risk on the bank's books.“

SBI said it is not shying from lending, but wants proper risk assessment. It needs long-term funds to lend to infrastructure.

The bank said it plans to list SBI Life in 18-24 months, and will sell 5-10% of the same. "Shareholder bonus is not an issue, and the bank will do so if permitted."

SBI said it will decide on further mergers and acquisitions once the merger with State Bank of Saurashtra is completed.

The public sector bank said it sees more bad loans from small and medium enterprises.

Meanwhile, Reserve Bank of India or RBI said the banks' safety and health is of utmost importance. Its risk-weight cuts will release 70 bps capital to SBI.

Source: Moneycontrol.com

SEBI serves notices to 2 for IPO allotment manipulation

2008-11-12T21:05:00.001+05:30

Two persons accused of manipulating allotment of IPO shares meant for retail investors have been directed to disgorge more than Rs 1 crore, and have also been barred from accessing the securities market for a certain period of time.

Both these persons had been restrained from accessing the markets by an ad interim ex-parte order of SEBI in April 2006. SEBI had issued show cause notices to them.

SEBI’s order on Monday directed Mr Dhaval Mehta described as a key operator who engineered multiple IPO applications and retail category shares in the IPO of Suzlon Energy Ltd and IDFC Ltd has been asked to disgorge Rs 72 lakh; he has also been barred from transacting in the securities market for another five years.

Ms Himani Patel a key operator and financier in the IPO of Suzlon Energy, has been asked to disgorge Rs 33.5 lakh and barred from accessing the securities market for an additional period of four years, reports The Hindu Business Line.

Source: Moneycontrol.com

Alkali Metals - Mysterious Bounce

2008-11-06T22:28:00.001+05:30

The games never end on small cap IPOs and this is not different. This could be called a mockery of public issue as only 19 shareholders were allotted 75% of the total equity size of Alkali Metals, and only 1 among them was allotted 35% of the total equity size. Closer look at the allotment details will reveal that Mavi Investment Fund was the only QIB applied for the issue and was allotted 35% of the issue. Important to mention that there is no lock-in period for Mavi Investment, Investors should remember that Mavi Investment has been active in small-cap IPOs in the past as well.

It was not a smooth sailing for Alkali Metal to gets its IPO through as the co has to extend dates and lower price band. Also, ICRA rated IPO grade 2 which suggest below average fundamentals. All these leaves bad taste in the mouth for most of the investors. Retail investors should remain away from these kind of IPOs as the gains could fizzle out with the blink of an eyes as seen in the past.

19 shareholders hold 75% of total equity issue

Mavi Investment: 9.12 lakh shares

Bodies Corporate: 10 hold 6.8 lakh shares

Individual shareholders holding shares capital excess of Rs 1 lakh shares: 8 hold 2.8 lakh shares

About Alkali Metals issue and allotment

Issue size: 25.5 lakh shares

Issue received 1,315 applications resulting in 1.02 times subscription

1 application was allotted 35% of total equity issue (hold 9% stake)

Mavi Investment Fund was allotted 35% of total equity issue

Mavi Investment Fund shares are not locked in

Mavi Investment Fund is a sub-account of M.M. Warburg Bank (SCHWEIZ) AG and has been active in small-cap IPOs

MM Warburg & CO KGaA is the 2nd largest independent private bank in Germany. The equity capital of the bank is entirely owned by private individuals.

Subscription

QIB: 1 application, subscribed 0.72 times

Non Institutional Investors: 57 applications, subscribed 3 times

Retail: 1257 applications, subscribed 0.55 times

No application from MFs

Other details of IPO

Company extended last date of issue by 5 days and reduced price band from Rs 90-105 to Rs 86-103

ICRA had assigned IPO grade 2 indicating below average fundamentals

Raised Rs 26.26 crore

By: By Varinder Bansal, CNBC-TV18

Alkali Metals: Ends with 68.35% premium

2008-11-06T22:23:00.000+05:30

Alkali Metals closed at Rs 173. 4 on the NSE, at a huge premium of 68.35% to its issue price of Rs 103.

On the NSE, the share touched an intraday high of Rs 179 and intraday low of Rs 99. The total traded quantity was 1,06,70,652 shares and turnover was Rs 16855.36 lakh.

On the BSE, the share closed at Rs 173.15 at a premium of 68.11%. On BSE its intraday high was at Rs 179.3 and intraday low was at Rs 90. The total traded quantity was 1,03,16,125 shares

The share had listed at Rs 99 on the NSE against the issue price of Rs 103 at a discount of 3.88% whereas on the BSE the share had opened at Rs 90 at a discount of 12.62% to its issue price.

The company is in the business of manufacturing a range of fine chemicals, based on related chemistry.

The company had come out with a public issue of 25,50,000 equity shares of Rs 10 each, which was subscribed 1.03 times.

Source: Moneycontrol.com

Mkts bounce back on Samvat 2065; Nifty above 2650

2008-10-28T18:31:00.001+05:30

The market has snapped four-day losing streak and has bounced back sharply on the day of Samvat 2065. Pullback rally is seen in realty, metal, capital goods, power, banking and oil stocks. Midcap and small cap stocks are following the same trend.

At 6:15 pm, the Sensex rose 545 points to 9,054 and the Nifty gained 159 points to 2,684. CNX Midcap jumped 176 points to 3,436.

Reliance Industries, Bharti, SBI, L&T, Unitech, Hindalco, Suzlon Energy and Reliance Infrastructure were major gainers.

European markets are trading higher. FTSE Index rose 4.03% to 4,010. CAC and DAX gained 2.93% and 8.99% to 3,157 and 4,724, respectively.

The Dow Jones Futures surged 4.58% to 8,378 and the Nasdaq Futures gained 4.17% at 1,210.

Asian markets ended sharply higher. Hang Seng was up by 14.35%. Nikkei surged 6.41%. Straits Times and Kospi rose 4.14% and 5.57%, respectively. Shanghai jumped 2.81% and Taiwan was up 0.76%. However, Jakarta lost 4.72%.

Crude is trading around USD 64.69 to a barrel on the NYMEX.

Source: Moneycontrol.com

Power PSU issues only after markets stabilise

2008-10-28T17:57:00.001+05:30

The Government will consider the follow-on public issue for thermal power major NTPC Ltd and the proposed initial public offering for state-owned hydro power firm NHPC Ltd as and when the market conditions improve.

“There’s no cash crunch now, once the market conditions are conducive they will (NTPC) go for the follow-on public issue.

“NTPC’s follow-on public offer and NHPC’s initial public offer will come when the market conditions are conducive,” Power Secretary, Mr Anil Razdan, told reporters here on the sidelines of the India Energy Congress 2008.

NHPC had earlier scheduled the launch of its proposed public float during mid-October to raise fresh equity to the tune of over Rs 1,600 crore, besides premium.

Last year, the company was forced to shelve its IPO plans as the requisite number of independent directors had not been appointed on its Board.

Funds for Expansion
Meanwhile, NTPC has said it plans to raise up to Rs 4,500 crore from domestic as well as international markets for meeting its expansion plans in the current financial year.

“We plan to raise about Rs 2,000 crore in FY09 through private placement of bonds, and, up to $500 million (about Rs 2,450 crore) through overseas loans,” NTPC Chairman and Managing Director, Mr R.S. Sharma, said at the sidelines of the same conference.

The company also plans to raise Rs 2,000 crore from the domestic market through private placement of bonds.

The company aims to increase its capacity to 31,000 MW in 2008-09, from 29,000 MW currently, Mr Sharma said. He also said the company is looking to acquire coal mines in South Africa, Mozambique and Australia.

Speaking earlier at the event, the Power Secretary said the Centre will set up a target for speedy implementation of hydro power projects.

“The target will have special focus on the North-Eastern (NE) region as it has 40 per cent of India’s total hydro potential,” Mr Razdan said. Coal Secretary, Mr H.C. Gupta, who was also present at the event, said the Coal Ministry is looking at step up domestic coal production before the end of the current Five Year Plan period (2007-2012).

The Coal Ministry’s decision is in response to the its receiving frequent requests for supply of coal for thermal power plants which has resulted in the need for upward revision of domestic coal production, Mr Gupta added, reports The Hindu Business Line.

Source: Moneycontrol.com

Syngene listing not now

2008-10-28T17:55:00.000+05:30

The market meltdown has put paid to one more listing plan for now: that of Biocon’s custom research subsidiary, Syngene International.

“We will not list Syngene this fiscal. It would be suicidal,” Biocon’s CMD, Ms Kiran Mazumdar-Shaw, emphatically told a news conference on Thursday. Biocon had planned to tap the capital market for Syngene during this fiscal.

Syngene’s numbers, she said, caused concern last quarter but it has now bounced back with 21 per cent growth over the last quarter and nine per cent year on year. The company has a cash reserve of Rs 355 crore from the sale of its enzymes business last year, reports The Hindu Business Line.

Source: Moneycontrol.com

Alkali Metals IPO subscribed fully

2008-10-28T17:53:00.000+05:30

The IPO of Alkali Metals has received bids for 26,24,700 shares as against issue size of 25,50,000 shares and is subscribed 1.03 times, as per NSE website. The issue had opened on October 7, 2008.

The company’s public issue of 25,50,000 equity shares in the price band of Rs 90 to Rs 105 per equity share was scheduled to close on October 10, 2008 but was extended to October 15, 2008 due to adverse market conditions. The price band was also revised to 86 to Rs 103 per equity share.

The IPO had received bids for 8,63,070 shares as against issue size of 25,50,000 shares and got subscribed 0.34 times, as per NSE website, till October 10.

The company is in the business of manufacturing a range of fine chemicals, based on related chemistry.

It proposes to utilize the net proceeds of the issue to part finance its expansion plan involving setting up of an Active Pharmaceutical Ingredients (API) plant at Jawaharlal Nehru Pharma City at Parawada, located 25 kms from Visakhapatnam, with an installed capacity of 672 MTPA.

The Pharma City is being developed by Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) in joint venture with M/s.Ramky Group (the developer) through a SPV called Ramky Pharma City (India) Limited, from whom Alkali Metals has acquired 16.42 acres of land.

Source: Moneycontrol.com

20 Microns to list on Oct 6

2008-10-02T19:16:00.000+05:30

20 Microns will list on the bourses with its equity shares on October 6, 2008. The isssue price has been fixed at Rs 55 per share. The public issue of 43,50,632 equity shares of Rs 10 each was subscribed 4.29 times.

The company intended to utilize the proceeds of the fresh issue in the IPO 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.

Source: Moneycontrol.com

Lehman bond holders may lose $100 bn

2008-09-23T22:27:00.000+05:30

Bondholders of the beleaguered Lehman Brothers may lose USD 110 billion (about Rs five lakh crore) on account of decline in the asset-value of the fourth-largest investment bank in the US, media reports say.

The value of the bonds of Lehman Brothers witnessed a major fall after the investment bank filed for bankruptcy protection, the Financial Times report said adding, "further losses on its derivatives positions, which are still being unwound, could leave even less on the table for bond investors."

According to the ‘FT’ report, Loomis Sayles Vice-Chairman Dan Fuss has said, "I don't know how this will play out for bondholders, but I doubt if its going to be good."

Loomis Sayles has a small holding in Lehman bonds.

The losses would have a far-reaching effect on ordinary investors, ‘FT’ said as Lehman bonds were widely held by investors such as pension funds and mutual funds. Meanwhile, those who sold protection against a default or Lehman bankruptcy will possibly recover 18 cents on the dollar when the contracts settle in a complicated auction October 10, the report added.

Before Lehman filed for bankruptcy, its 110 billion- dollar of senior bonds were quoted around 95 cents on the dollar. Bond prices then plunged to 35 cents a week ago. They are now trading at about 18 cents to the dollar. Quoting Kathleen Shanley of Gimme Credit, an analyst from a credit research firm, ‘FT’ said, "Lehman bonds are trading in the high teens, which reflects the bankruptcy filing, in which a large number of creditors are competing for a shrinking pool of assets of uncertain value".

Last week, Lehman inked a deal to sell the North American investment banking business to Barclays for 1.75 billion dollar. "Even though approval of the deal was rushed through court, lawyers for Lehman Brothers said asset values then dropped to 47.4 billion dollar from about 70 billion dollar," the report said.

In its bankruptcy filing, Lehman listed total debts of USD 613 billion, making it the largest ever US bankruptcy with USD 128 billion in debt securities, including USD 110.69 billion unsecured debt, USD 17.6 billion in unsecured, subordinated obligations, the media report said. Further, FT quoted creditors as saying that Lehman can be involved in the government's plan to set up a 700 billion-dollar fund to buy distressed mortgage assets.

So far, there had been no formal discussions among the creditors about this, said a person involved in the bankruptcy case.

Source: financialexpress.com

BSNL union feedback positive on IPO: Telecom Min

2008-09-23T22:23:00.000+05:30

Telecom Ministry says that BSNL union feedback is positive on IPO, but has some reservations, reports CNBC-TV18

Source: Moneycontrol.com

Without an IPO, it would not be a growth story: Avesthagen

2008-09-22T22:20:00.001+05:30

Dr Villoo Morawala-Patell, plant biologist and PhD from the University of Louis Pasteur, set out to harvest her science at the marketplace on an unusual platter of agriculture, nutrition and medicine.

Her Bangalore-based company, Avesthagen Ltd, is singly or jointly developing unique, scientifically proven, plant products for modern malaises: cancer and metabolic disorders; crackers and bars to ward off diabetes, heart diseases and obesity; TB-detecting biochips, even bioplastic. Some global who’s-who keep it company; $40 million worth funds have come in from private equities – the Tata and Godrej groups. As infrastructure, production and market demands soar, the 600-people-strong Avesthagen has felt the need for fresh capital – hazarded at Rs 200-250 crore – and is on the verge of going public. Dr Patell, its Chairperson and Managing Director, speaks about her IPO, business strategy and a grand health plan. Excerpts:

You are about to tap the capital market. What could you tell us about it at this stage? You are said to hold around 35 per cent stake.

The public issue is in aggressive movement. My stake is something like 32 per cent. Of course, there will be equal dilution across the board. I cannot discuss more than that.

Why a public issue?

I have to brave the IPO or I can’t reach the market!

[Without an IPO,] It would not be a growth story. I don’t want to wait 20-25 years for the company to become big. By 2015, we have to establish as a sizeable company that is playing globally from here. I want to compete with the best in the world. Amgen and Genentech were great science-led biotech companies and took on big pharma. That is how we need to do it.

[The IPO] is for infrastructure, manufacturing and people. If an acquisition comes up and accelerates our product and market development, we would look at it. Primarily it is to finish off the manufacturing, start global marketing; for our new [Rs 160-crore] campus; for the second phase of biopharma manufacturing and expansion of the seeds business. The market looks bleak. Public issues have been pulled back. Aren’t you apprehensive?

I’m excited by today’s market, which is the market for Avesthagen to enter. Whether I fail or win is not [the issue]. We have designed the model for the new world. I’m not afraid, I’m prepared for the consequences.

Food, farming, pharmaceuticals: which is the real Avesthagen?

Life sciences conglomerates like Johnson & Johnson, Novartis, Pfizer also have a whole play into agriculture, pharma and nutrition. If in the ’60s and the ‘70s chemistry was in all these areas, Avesthagen is attempting a biology model.

Actually ours a holistic model taking care of the entire spectrum of human life and health. Our Science and Innovation group works on medicinal plants, food plants, bacteria, mammalian cell lines and human biodiversity. There is a big area of creativity that will result in different types of products for today, tomorrow and the day after. In biopharma. we are looking at [proteins to fight] cancer, autoimmune disorders and ageing. The ultimate goal of our two main projects [Biopharma and Bionutrition] is to integrate agriculture with health.

How close to the market are the products?

The first [pharma] pipeline is of biosimilars. With Cipla, we have created a pipeline of eight. Four molecules have been cleared by the RPGM [the regulatory panel for genetically modified products] and two will be entering pre-clinical trials shortly.

The first product will be out by the end of 2009 and two a year will follow. The second pipeline is AvesthaGenome [a Rs 120-crore project on the Parsi community’s genealogy] which will have new proteins, with new entities feeding it. We are partnering with French company ShigaMediX on [a vaccine for] TB and the human papilloma virus [that causes cervical cancer.]

What would be your manufacturing strategy?

We have positioned ourselves for the global biosimilars market by buying a German company [contract manufacturer Siegfried Biologics] and by building a 200-litre cGMP facility here.

We will make the manufacturing happen in areas where we will buy out or lease out. Except for the biopharma facility which we are building, because there aren’t such facilities in the world. Where is the missing link?

We need marketing muscle. We will have to build it ourselves except where we are partners – as with Cipla or Danone. All our products are sitting in fancy stores. I was thinking of the kirana store and the masses.

We may also look at totally novel ways of marketing. To be sitting on mainstream shelves, you have to create a niche or advertise like mad. There may be smarter ways of doing it, like Hutch or Google did.

If I brand and market them properly, each of my ingredients will potentially become a $200-300-million product in the next five years. We should have a way of taking technology quickly to the consumer. We recently launched avesthawellbeing.com. You can order online for [herbal ingredient] TeeStar; or for Amlapure . I want to integrate the whole predictive-preventive-personalised range online.

You have around a dozen collaborations. Have you found the right fit?

We are looking for new alliances. In each category, we will build newer collaborations at different levels.

The coming in of big partners like Nestle and Danone validated our model. . Most of these companies wanted to attach to us pretty early-for access to new products, ; technology, lab, ideas. Where the products would be ready in 3-5 years, we are with Danone, Vilmorin & Cie, Biomerieux, Godrej and Cipla.

With Danone, we are doing two products including R&D, clinicals and co-branding; and in yoghurt. We delivered eight molecules for diabetes to Nestle.

All the [nutritional] actives are ready to be licensed. It’s to be worked out [among] three to four big international companies, reports The Hindu Business Line.

Source: Moneycontrol.com

CARE assigns IPO Grade 2/5 to Gemini Engi-Fab

2008-09-22T22:18:00.000+05:30

CARE has come out with a research report on Gemini Engi-Fab. It has assigned IPO Grade 2/5 to the company's IPO. GEFL proposes an IPO of 55,00,000 equity shares of face value of Rs 10 each, at a price which will be determined through the book building process.

CARE's report on Gemini Engi-Fab's IPO:

CARE has assigned ‘CARE IPO Grade 2’ to the proposed (Initial Public Offer) IPO of Gemini Engi–Fab Limited (GEFL). CARE IPO Grade 2 indicates below average fundamentals. CARE assigns IPO grades on a scale of Grade 5 to Grade 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. CARE’s IPO grading is an opinion on the relative assessment of the fundamentals of that issuer. GEFL proposes an IPO of 55,00,000 equity shares of face value of Rs 10 each, at a price which will be determined through the book building process.

The grading factors in promoters’ experience in fabrication and engineering industry, long track record in operations, favourable industry scenario for fabrication and salvaging of equipment, multi-product capability of company, strong growth in order book, good profitability margins in past financial years, sanctioning of term loan by the bankers for the proposed expansion project and expected improvement in technical capabilities of the company post expansion .

However, the grading is constrained by GEFL’s relatively small size of operations, dependence on IPO proceeds for the proposed project completion, unorganized and highly competitive industry in which the company operates, moderate corporate governance practices, low entry barriers, dependence on few customers and limited experience of management in executing large projects. The grading is also constrained by risks associated with proposed deployment of funds from the IPO in setting up new manufacturing units.

“Gemini Engi-Fab Private Limited” was incorporated as a private limited company on January 12, 1998 and later converted into a public limited company “Gemini Engi-Fab Limited” (GEFL) in January 2007. Promoted by the members of the Panchal family, the company is in the business of manufacturing and salvaging of process equipment through fabrication for various process industries. GEFL manufactures spares, channel heads, tube sheets and tube bundles for refineries. It also manufactures heat exchangers for refineries and dairy plants, pressure vessels, storage vessels, tanks, heat exchangers, distillation and absorption columns. The company has also entered into salvaging of equipment in 2006-07.

The company currently has a weight handling capacity of 27 tonnes. The existing workshop of the company is located at Umbergaon in Valsad and it proposes to build a new workshop near its existing facilities with higher technical capabilities so as to move up the value chain.

The proceeds from the proposed issue of shares are intended to be deployed for setting up a new manufacturing workshop at Umbergaon, meeting working capital requirements, general corporate purposes and issue expenses. As per the organizational structure of GEFL, Mr. Dalpatram J. Panchal, Chairman & Executive Director, is supported by a team of senior executives headed by Mr. Rakesh Panchal, Managing Director of GEFL.

The company has three legal cases pending against it as on July 07, 2008. They include a case in relation to payment of back wages of Rs.1.84 lakh, another case in relation to transfer of duty paid goods from one industrial plot to another owned by GEFL without the permission of Central Excise Authorities and the third case of compounding applications filed by GEFL with the Company Law Board (CLB) in relation to non increment of paid-up capital upto one lakh and non appointment of company secretary during the period October 2007 to February 2008.

With an increase in the manufacturing facility and due to manufacturing of specialized equipment, salvaging and trading operations during the period FY 2005-08, the company has reported a CAGR of 74.21% for the above period. In future, the demand for the fabrication and salvaging from various sectors is likely to provide good growth opportunities to the company therefore, the growth projected and the margins expected appear reasonable considering the track record of the company. Post IPO, the company will be moving up the value chain and competing against established players.

Source: Moneycontrol.com

Softline mulls IPO to fund expansion

2008-09-18T23:50:00.003+05:30

Softline Software Services is set to expand its operations in India and some markets overseas. Engaged in sale of software products for the last 17 years, Softline last year forayed into software services. The company is considering an IPO to partly fund its expansion.

The founder, Chairman and Chief Technology Officer, Softline, Mr Hasnain Ali Khan, told Business Line that the company is also in the process of launching some more products later this year in the accounting, enterprise resource planning and warehouse management areas. Last fiscal, the company closed with revenues of Rs 40 crore and expects a growth of over 50 per cent this fiscal. “To part fund the company expansion plan, we are in the process of finalising plans to raise about Rs 100 crore through an IPO by June 2009,” Mr Khan said.

The proceeds of the IPO are aimed at creating a larger campus in Hyderabad and also meet the company expansion plans in new overseas markets and for marketing requirements. The company operates out of 18 centres, of them 4 are located in India at Hyderabad, Mumbai, Delhi and Bangalore. It has 500 employees, of whom 200 are overseas , especially West Asia.

Last year, the company entered Singapore and Malaysia and added a US centre, with the objective of providing services to compliment the company products designed mainly for small and medium enterprises, reports The Hindu Business Line.

Source: Moneycontrol.com

GSPC IPO likely by Jan; plans to raise $1 Bn

2008-09-18T23:50:00.002+05:30

GSPC is likely to come out with an IPO by January 2009 and is planning to raise USD 1 billion through this IPO, reports CNBC-TV18 quoting NewsWire18.

The company may divest up to 15% stake in IPO.

GSPC is a parent company of listed Gujarat State Petronet.

Source: Moneycontrol.com

Oil India public offer plans on track

2008-09-18T23:50:00.001+05:30

The stock market volatility is unlikely to defer public sector undertaking Oil India Ltd’s (OIL) initial public offer (IPO) schedule of November. Sources said while the price band for the proposed IPO is expected to be in place by third week of October, the company’s IPO is likely to hit the market on November 10.

However, an eye is being kept on the market, industry sources told Business Line adding that "OIL has strong fundamentals and we don’t expect any change in IPO plans."

STAKE SALE

OIL has already filed its draft prospectus with SEBI for an IPO of up to 2.64 crore equity shares to raise over Rs 1,500 crore. Besides, the company has also entered into an understanding with PSU oil marketing companies – Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation – for selling 10 per cent equity stake in the ratio of 2:1:1, respectively.

The OMCs will acquire the stake at a price equivalent to the issue price of the equity shares that are proposed to be offered by OIL to the public in accordance with the book building method.

OIL had got the Cabinet nod for fresh equity of 10 per cent of its paid-up capital through IPO along with a proposal of issuing additional one per cent of its paid-up capital to the employees of the company. Disinvestment of 10 per cent in favour of State-owned OMCs, coupled with an IPO is expected to reduce the effective Government stake in the company to about 78 per cent from the existing 98.13 per cent.

DOWNSTREAM ACTIVITIES

The IPO proceeds are expected to be used for exploration and development activities and diversification of existing business to downstream. However, it will not be used to fund existing or future participation, investment activities in Iran, Sudan, Myanmar or any other countries or persons that are subject to economic sanctions imposed by the US Government and administered by the US Export Administration Regulation and Office of Foreign Assets Control of the US Treasury Department.

This is mainly due to advice from the lead bankers JM Financial Consultants, Morgan Stanley India Company, Citigroup Global Markets and HSBC Securities and Capital Markets, sources said.

The company's current annual crude oil production is 3.5 million tonne showing a growth of 13 per cent, and natural gas production is 6.80 mmscmd. The production amounted to approximately 10 per cent and seven per cent of India’s total production of crude oil and natural gas respectively, reports The Hindu Business Line.

Source: Moneycontrol.com

S Kumar's retail arm to list by Sept-end

2008-09-12T23:53:00.001+05:30

Brandhouse Retail, the retail division of S Kumar's is likely to be listed by September end or early October. Shareholders will receive one share of Brandhouse Retail for five shares of S Kumar's. At a conservative PE of 15-18 times, the price would work out to Rs 75-80 per share. S Kumar's has fallen from Rs 105 to Rs 65 after the demerger of S Kumar's. Earnings do not include Brandhouse Retail's numbers.

Promoters hold less than 50% in the company.

The shares have already been transferred to shareholders' account. This delay in listing is because FII holding has reached 30%. FIIs are allowed to hold 24% in multi-brand retailing. The company has deducted 6% proportional holding from FIIs and shifted it to a trust. About 6% will be held by an appointed trustee and will be sold in the open market within six months of listing.

Source: Moneycontrol.com

SEBI Interim Order in IPO scam

2008-09-12T23:52:00.000+05:30

SEBI has confirmed the directions in the interim order passed in 2006 against Mr Dushyant Natwarlal Dalal and Puloma Dushyant Dalal in the matter of irregularity in IPOs in 2003-05. No direction was issued against Rasila Natwarlal and Natwarlal Thakordas as they were no longer alive and in respect of the demat account of the two deceased persons it was directed they would remain frozen till the passing of the final order in this case, since the said account were found to b e jointly held with Mr Dushyant Dalal, reports The Hindu Business Line.

Source: Moneycontrol.com

20 Microns IPO ends with 4.29 times subscription

2008-09-12T23:51:00.000+05:30

Receives bids for 1.86 crore shares

The initial public offer of 20 Microns ended with 4.29 times subscription. The issue received bids for 1.86 crore shares, in which 1.33 crore bids were at the cut off price.

The qualified institutional buyers (QIBs) category was subscribed 0.90 times, The non institutional investors category was subscribed 1.97 times and the retail portion was subscribed 10.58 times.

The public issue of 43,50,632 equity shares of Rs 10 each, was in the price band of Rs 50-55 per share.

Through this IPO, the company plans to raise around Rs 9 crore to fund its expansion. Meanwhile, Gujarat Venture Capital Fund, which currently holds 43% stake in the company, will offload a part of its holding, reducing it to 19% of the post-issue equity.

The company intends to utilise the proceeds of the issue 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.

The issue had been graded by the Credit Analysis and Research Limited (CARE) and has been assigned the IPO Grade 3, indicating Average Fundamentals. The equity shares are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE).

Source: CapitalMarket.com

Avoid Chemcel Biotech IPO: SPA Securities

2008-09-11T20:30:00.001+05:30

SPA Securities has come out with a research report on Chemcel Biotech's IPO. It has recommended investors to ignore the issue.

Chemcel Biotech has opened for subscription with its initial public offering (IPO) of 1,54,00,000 equity shares of Rs 10 each. The issue will close on September 12, 2008. The issue price is Rs 16.

SPA Securities' report on Chemcel Biotech's IPO:

Investment Positives:

Foray into bio-diesel industry: The current business of the company is cyclical in nature & the management feels that the growth in the next few years in the agrochemical business will be ~3-5% only. Also to mitigate the impact of the cyclical nature of the business, CBL intends to foray into bio-diesel industry which has good growth potential going forward. AP is the largest pesticide market: Andhra Pradesh is the largest pesticide market in India. CBL has a strong network of 18 distributors, 350 direct dealers & 550 retailers.

Investment Concerns:

Revenues from bio-diesel will come in FY 11: Though the sale of bio-diesel will start by Sept’09, but the total revenue contribution will be seen in FY11. Seasonality of the business: CBL currently records 70% of their revenues during Oct-Mar. Low capacity utilization: CBL’s capacity utilization stood at 30% for FY08. This is quite low given the fact that they have been in the industry for over a decade. CBL believes that post the IPO when once the working capital requirement is met; this shall go up to 70-75%.

Valuation:-

The stock is available at a P/E of 34x on its FY08 EPS of Re.0.47. Even on the EPS of FY11E, the stock is priced at a P/E of 12x. This appears to be very expensive in comparison to the peer group which is available at a P/E range of 4-7x based on FY08 EPS. The low capacity utilization is mainly due to high working capital required by the company and CBL being a small company is looking for funds in order to enhance their capacity utilization. The growth rate in the agrochemical business is expected to be low. The expensive valuation makes the issue less attractive for investment even though the fact that CBL is planning for diversification in the business in order to maintain its growth rate. Hence, we recommend to ignore the issue.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

20 Microns IPO subscribed 0.82 times on day 3

2008-09-11T20:27:00.000+05:30

Receives bids for 35.51 lakh shares

The initial public offer of 20 Microns was subscribed 0.82 times on the third day of its opening. The issue received bids for 35.51 lakh shares, in which 11.79 lakh bids were at the cut off price.

The public issue of 43,50,632 equity shares of Rs 10 each, is in the price band of Rs 50-55 per share. The issue closes 11 September 2008.

Through this IPO, the company plans to raise around Rs 9 crore to fund its expansion. Meanwhile, Gujarat Venture Capital Fund, which currently holds 43% stake in the company, will offload a part of its holding, reducing it to 19% of the post-issue equity.

The company intends to utilise the proceeds of the issue 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.

The issue had been graded by the Credit Analysis and Research Limited (CARE) and has been assigned the IPO Grade 3, indicating Average Fundamentals. The equity shares are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE).

Source: CapitalMarket.com

Avoid Chemcel Biotech IPO: Hem

2008-09-09T22:10:00.001+05:30

Hem Securities has come out with a research report on Chemcel Biotech's IPO. It has recommended investors to ignore the issue.

Chemcel Biotech has opened for subscription with its initial public offering (IPO) of 1,54,00,000 million equity shares of Rs 10 each. The issue will close on September 12, 2008. The issue price is Rs 16.

Hem Securities' report on Chemcel Biotech's IPO:
Company’s distribution network consists of distributors and dealers through out the coastal region of Andhra Pradesh. Company has more than 18 distributors who help it in selling its products to end users through the chain of more than 350 dealers and 550 retailers. Company hold regular farmers meets at different places to educate and disseminate new methods of the plant protection with the help of its techno commercial marketing sales staff, dealers and distributors. With the help company’s distribution network & marketing team, company keep itself updated about the occurrence of a particular pest. Based on this information and experience, company reschedules its production and distribution. Company has established 24 depots wherein it maintain adequate stocks to make its products available at short notices. This strategy helps company in selling its products effectively.

Company has 34 products in its product portfolio which consists of different kind of insecticides and pesticides. Company manufactures various formulations comprising of liquids, granules and powder formulations. Company’s products are available in various sizes of packaging catering to the needs of small, marginal and large farmers. Company’s product range covers most of the crops and majority of plant infections that are grown in this region. Company provides end to end plant protection solutions to farmers through its distributors. Company’s product range helps it in attracting large distributors of agrochemicals to become its distributors.

Company faces substantial competition due to technological advances by competitors, such as other pesticide companies, agro-chemical and biotechnology companies. Also, if a competitor introduces a successful product, it could take years for company to develop a product, which could have a material adverse effect on company’s business, results of operations and financial condition as some of company’s competitors are large Indian companies or subsidiaries of multi-national companies that have, significantly greater resources than those available with company.

Agro chemical industry requires high working capital due to its seasonal nature and long credit period given to dealers and farmers. Thus, high inventories during off-season period and high receivables during poor monsoon put further pressure on working capital requirement.

Valuation:-
The company at a price of Rs 16 per share will have the p/e multiple of 33.85 on post issue eps of 0.47(Basis PAT FY’08). The company being the small player in agrochemical industry is exposed to the risk of heavy competition from other players in the same industry. The company on the one hand, is posting lower profit margins in comparison to its peers while on the other hand the high receivables of the company are detrimental to the financial performance of the company. The company’s higher equity base also lead to lower earning per share post issue and thus makes the issue expensive at present level. Hence, we recommend investor to ignore the issue.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

20 Microns IPO subscribed 0.36 times on day 2

2008-09-09T22:08:00.000+05:30

Receives bids for 5.60 lakh shares

The initial public offer of 20 Microns was subscribed 0.36 times on the second day of its opening. The issue received bids for 15.60 lakh shares, in which 4.60 lakh bids were at the cut off price.

The public issue of 43,50,632 equity shares of Rs 10 each, is in the price band of Rs 50-55 per share. The issue closes 11 September 2008.

Through this IPO, the company plans to raise around Rs 9 crore to fund its expansion. Meanwhile, Gujarat Venture Capital Fund, which currently holds 43% stake in the company, will offload a part of its holding, reducing it to 19% of the post-issue equity.

The company intends to utilise the proceeds of the issue 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.

The issue had been graded by the Credit Analysis and Research Limited (CARE) and has been assigned the IPO Grade 3, indicating Average Fundamentals. The equity shares are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE).

Source: Capitalmarket.com

Neutral report on 20 Microns IPO: Anand Rathi

2008-09-07T11:32:00.001+05:30

Anand Rathi Securities has come out with a research report on 20 Microns' IPO. It has given a neutral rating to the issue.

20 Microns will open for subscription on September 8, 2008 with its public issue of 43,50,632 Equity shares of Rs 10. The price band has been fixed at Rs 50-55. The issue will close on September 11, 2008.

Anand Rathi Securities' report on 20 Microns' IPO:

20ML is a multi-product company which helps to protect it from reductions in demand for any one product type.

20ML’s mining resources and plants are strategically located in the states of Rajasthan, Gujarat, and Tamil Nadu. The manufacturing units of the company are well connected with national - highways and railways which helps the company in reaching to its customers economically.

20ML’s implementation of business planning tools, focus on technical support, field coaching and constant evaluation of product knowledge and training has helped in improving effectiveness and field force productivity. Customer segmentation has also helped to sharpen the focus on its key customers.

A demand under the Central Excise Act to the tune of Rs 107.29 million if decided against the company will adversely affect the financial conditions and the business of operations of the company.

Out of the total issue proceeds (at higher end of price band) of Rs 239.28 million, the offer for sale is Rs 147.16 million and thus the company will be receiving only Rs 92.12 million.

20ML faces competition from unorganized sector whose costs are lower due to exemption from excise duty. The players in the unorganized sector change their formulations to absorb some of the cheaper ground material to lower their cost of production and in turn reducing their pricing. Thus 20ML may be forced to reduce the prices of its offerings and services, which may reduce its revenues and margins and/or decrease its market share, which would adversely affect the business operations of the company.

Valuation:-

At the price of Rs50-55, the issue is priced at 13.6x-15x its FY08 EPS of Rs3.68 and at 15.4x-17.0x its FY08 FDEPS of Rs3.2. On comparison with its established peers which are comparatively larger in size, 20ML appears expensive. Taking into account the valuation and considering the risks associated with the investment concerns cited above, We are NEUTRAL to the issue

Banks gear up for new IPO payment facility

2008-09-07T11:28:00.000+05:30

Eleven banks participated in the mock test carried out by the Bombay Stock Exchange (BSE) for the new IPO payment facility recently permitted by SEBI.

The first IPO in which the facility will be used is that of 20 Microns, which opens on Monday.

This facility, called the Application Supported by Blocked Amounts (ASBA), allows banks to block IPO application money in the applicant’s bank account till the time of allotment of shares. Only that amount proportionate to the share allotment will be transferred from the account.

The markets regulator has said that ASBA will be operationalised from Monday. . This coincides with the opening of the IPO of 20 Microns, the first issue in which the ASBA process will be used by investors.

Interface tested

“BSE has successfully tested its interface with 11 banks for participation in the ASBA (Application Supported by Blocked Amounts) process,” said a BSE news release.

The 11 banks that participated in the mock test were Bank of Baroda, Corporation Bank, HDFC Bank, ICICI Bank, IDBI Bank, Indus Ind Bank, Kotak Bank, Punjab National Bank, State Bank of India, SBBJ and Union Bank.

The exchange is in the process of testing the interface with other banks that have evinced interest in participating in the ASBA process, BSE said. Using this interface, the banks participating in the IPO process would be able to upload the bids with respect to their customers, into the electronic book of the BSE, reports The Hindu Business Line.

Source: Moneycontrol.com

IPO market may witness slowdown

2008-09-07T11:25:00.000+05:30

Uncertain market conditions may dampen the growth of domestic IPO market as increasing number of foreign funds are shying away from investing here and companies are postponing their fund raising plans through primary market, says a study.

FIIs and other relevant financial institutions, including retail investors, are gradually withdrawing their subscription from IPOs, given the current situation and are exploring other options such as bonds and mutual funds, a study by industry chamber Assocham said.

"FIIs are pulling out of IPOs because of high inflation, debt and bond market is growing for them phenomenally. The price band of IPO is also no longer attractive for retail investors," Assocham President Sajjan Jindal said.

The domestic stock market barometer Sensex, which touched a high of 21,077.53 points in January, has been witnessing a slump ever since and had plunged the year's low of 12,514.02 points in July.

"Under such circumstances, being optimistic about IPO market would not be realistic as fear factor is becoming more visible and pronounced against the primary market," Jindal added.

Domestic IPO market, which grew consistently at 20 per cent during 2003 to 2007, may expand 8-10 per cent in remaining period of the current fiscal despite vigorous efforts put in by merchant bankers as adverse market sentiments have gained grounds, the study said.

At least 74 companies, who were close to coming out with an IPO and collectively raising about Rs 44,000 crore are now awaiting better times, Assocham said.

Source: Financialexpress.com

RIL in world's 100 most respected cos list

2008-09-07T11:22:00.000+05:30

Billionaire Mukesh Ambani-led Reliance Industries has made it to the annual list of world's 100 most respected companies compiled by the Wall Street Journal, topped by US-based healthcare products major Johnson & Johnson.

Ranked 83rd, RIL is the only Indian company on the list, although there are three more companies led by persons of Indian origin -- PepsiCo, ArcelorMittal and Citigroup.

J&J is followed by FMCG giant Procter & Gamble, Japanese auto maker Toyota Motor, legendary investor Warren Buffett-led Berkshire Hathaway and technology giant Apple in the top five positions.

While Berkshire has slipped from its first position last year, J&J has moved up from its second place in 2007 list.

Toyota has retained its third place, while Apple and P&G have improved on their previous year rankings.

Besides, Google (6th), Wal-Mart (7th), Coca-Cola (8th), PepsiCo (9th) and Nestle (10th) also figure among the top-ranked companies.

As part of the fourth annual survey, Wall Street Journal asked money managers to indicate the degree to which they respect or don't the 100 largest publicly traded companies, as measured by total market value.

According to the survey, 74 per cent respondents said they 'highly respect' J&J, 23 per cent said they 'respect', 3 per cent said 'respect somewhat' but none said they 'don't respect' the company making it top-ranked company.

About RIL, 4 per cent considered the company as highly respected, 17 per cent said they 'respect' it, 46 per cent responded saying they 'respect somewhat', while 11 per cent said they 'don't respect' the firm.

Source: Financialexpress.com

Austral Coke & Projects settles with 15% premium

2008-09-07T11:20:00.001+05:30

At Rs 225.20 over issue price

Austral Coke and Projects ended at Rs 225.20 on BSE, a 14.89% premium over issue price of Rs 196

The counter saw volumes of 1.88 crore shares on BSE. The stock hit a high of 308.80 and a low of Rs Rs 206.

Austral Coke and Projects debuted today on BSE at Rs 206, a 5.10% premium over its issue price of Rs 196.

The company fixed the issue price at the top end of price band of Rs 164 to Rs 196. The IPO was subscribed 1.65 times. The issue opened on 7 August 2008 and closed on 13 August 2008.

Austral Coke 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 1,50,000 tonne per annum LAM coke unit and a 8 megawatt 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 had concluded pre-IPO placement of 27.4 lakh shares to Somerset India Fund at Rs 196 per share, aggregating to Rs 53.70 crore.

The company reported net profit of Rs 35.17 crore on sales of Rs 226.66 crore in eleven months period ended February 2008.

Source: Capitalmarket.com

20 Microns Ltd IPO gets 3/5 Grade by CARE

2008-09-01T18:38:00.002+05:30

CARE has come out with a research report on 20 Microns. It has assigned IPO Grade 3/5 to the company's IPO. TML proposes an initial public offering of 43,50,632 equity shares (approximately Rs 26.10 crore).

CARE's report on 20 Microns' IPO:

CARE has assigned a ‘CARE IPO Grade 3’ to the proposed IPO of 20 Microns Ltd. (TML). ‘CARE IPO Grade 3’ indicates Average Fundamentals. CARE assigns IPO grades on a scale of Grade 5 to Grade 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. CARE’s IPO grading is an opinion on the fundamentals of the issuer. The grade assigned to any individual issue represents a relative assessment of the ‘fundamentals’ of the issuer. TML proposes an initial public offering of 43,50,632 equity shares (approximately Rs 26.10 crore). The objective of the proposed IPO is to partly fund its ongoing expansion projects as well as provide an exit opportunity to Venture Fund, GVFL (Gujarat Venture Capital Fund 1995) which would be offloading 50% of its existing stake in TML.

The grading takes into account TML’s long and established track record in the micronised minerals industry, operating captive mines and geographical spread of its manufacturing facilities in a logistics intensive industry, diversified clientele and voluntary compliance with some of the provisions of clause 49 of the listing agreement since last five years. The grading is constrained by unsatisfactory financial performance in the recent past including availing of CDR (Corporate Debt Restructuring) package, competition from players in the organised as well as unorganised sector, increasing cost of fuel, IPO linked project and modest financial profile as reflected by high overall gearing and moderate profit margins, especially in a rising interest rate scenario. The grading is further constrained by subdued return on net worth and moderate level of EPS.

Baroda-based TML, incorporated in 1987, is one of the largest players in the organised sector of the white minerals industry in India. The micronised minerals produced by TML are used as functional fillers and extenders in paints (43% of sales for FY08 for TML), plastics (27%), paper & ceramics (11%) and other products (19%). The top three products viz. GCC (41%), china clay (24%) and talc (15%) contributed approximately 80% of total sales. Its clientele includes Asian Paints, Akzo Nobel Coatings, ICI Paints, Berger Paints, Pidilite, Finolex Cables, etc.

TML incurred losses in three consecutive years from FY03 to FY05 mainly on account of non-functioning of a major equipment at Bhuj due to earthquake in Gujarat in 2001 and high contracted rates of interest. Consequently, it had to avail CDR package. TML made a formal exit from the CDR in early 2008 by paying re-compensation amount.

TML proposes to expand capacities at its existing four locations and setup a new unit at Haldwani and manufacture higher value-added products at these facilities with particle size upto 0.7 micron. Total cost of project of approximately Rs 20 cr is proposed to be financed by way of project debt-equity ratio of 1:1. Disbursement of project term loan of Rs 10 cr is linked to successful completion of IPO.

The weighted average ROCE and RONW for the last three years were 13.18% and 15.69% respectively. Its EPS has increased gradually to a moderate level of Rs 3.64 per share in FY08. Also, the company has not paid any dividend to its shareholders during the past five years.

Total income of TML grew by 22.74% in FY08 compared to FY07 on account of a growth in manufacturing sales as well as trading sales by 17.5% and 34.1% respectively in value terms. PBILDT and PAT margin were comfortable at 14.08% and 4.22% respectively in FY08. TML’s long-term debt equity ratio remained moderate at 1.06 times. The overall gearing level, despite showing marginal improvement, was high at 1.85 times as on Mar.31, 2008.

Source: Moneycontrol.com

Resurgere Mines & Minerals spurts on debut

2008-09-01T18:37:00.000+05:30

Settles at Rs 524.35 on BSE, a 94.20% premium over IPO price of Rs 270

Resurgere Mines & Minerals settled at Rs 524.35 on BSE, a 94.20% premium over initial public offer price of Rs 270. The counter clocked huge volumes of 3.31 crore shares on BSE.

Resurgere Mines & Minerals India debuted at Rs 272.05 on BSE, a marginal premium of 0.75% over its issue price of Rs 270. The stock hit a high and low of Rs 562.80 and Rs 272.05.

The current price of Rs 524.35 discounts its FY 2008 EPS of Rs 23.32, by a PE multiple of 22.48.

The company raised Rs 120 crore rupees through its 44.5 lakh share initial public offer (IPO) in a price band of Rs 263 and Rs 272 a share. The IPO was oversubscribed 1.16 times. The issue price was later fixed at Rs 270 per share. The issue opened for subscription on 11 August 2008 and closed on 13 August 2008.

Resurgere Mines & Minerals India is in the business of extraction, processing and sale of mineral products and exploration and development of mining assets. The product range includes various forms of iron ore such as Lump ore, Size ore, Calibrated Lump ore (CLO) and iron ore fines etc. and bauxite. The company sells all these products domestically except iron ore fines, which the company exports to China.

The company will utilise the proceeds of the initial pubilc offer for purchasing plant and machinery and purchase railway rakes to set up own logistics infrastructure facilities and funding working capital requirements.

The company reported 110.4% spurt in net profit to Rs 66.56 crore on 154.80% surge in net sales to Rs 418.57 crore in the year ended March 2008 over the year ended March 2007.

Source: Capitalmarket.com

Resurgere Mines & Minerals to list on Sept 1

2008-08-29T21:16:00.000+05:30

Resurgere Mines & Minerals India, a company engaged in the business of extraction, processing and sale of mineral products and exploration and development of mining assets, will list on the bourses with its equity shares on September 1, 2008. The issue price is Rs 270 per share.

The public issue of 4,450,000 Equity shares of Rs 10 each was subscribed 1.16 times.

Motilal Oswal Investment Advisors Pvt. Ltd was the BRLM for the Issue and PL Capital Markets Pvt. Ltd and Ashika Capital Ltd were the Co-BRLMs for the Issue. The Equity shares are proposed to be listed on BSE and NSE.

The Company proposes to utilize the net proceeds of the Issue to part finance its plan for purchase of Plant and Machinery valued at Rs 1,285.64 million for setting up of its own extraction and crushing facilities at the mines and purchase of six railway rakes worth Rs 1,163.60 million to set up own logistics infrastructure facilities, besides meeting margin money requirement for working capital.

The Company proposes to part finance the cost through term loans of Rs 860 million to be raised from banks, Rs 430 million through Private Equity funding from Merrill Lynch International and Rs 137.30 million through Pre-IPO allotment. Merrill Lynch International holds 3,000,000 Equity shares, India Business Excellence Fund-I holds 910,000 Equity shares, IL&FS Trust Co. Ltd ( Trustees of Business Excellence Trust-India Business Excellence Fund ) hold 402,500 Equity shares, Mr Motilal Oswal hold 250,000 Equity shares and Mr. Raamdeo Agarwal holds 200,000 Equity Shares in the Company.

Source: Moneycontrol.com

3 banks get SEBI nod for IPO money

2008-08-29T21:07:00.000+05:30

Three banks - Corporation bank, Union Bank of India and HDFC bank - have received SEBI nod for offering the new payment facility for IPOs under SEBI’s new scheme where investor application money will not be blocked with the IPO issuer till allotment. It also does away with the refund process.

These three banks can now be part of the Applications Supported by Blocked Amount (ASBA) process.

This process allows for a new mode of payment in IPOs wherein the application money of an investor will remain in an account until the allotment process. After the shares are allotted, only the amount of money required for payment for the allotted number of shares will be debited from the applicants’ accounts. These three banks are eligible to act as Self Certified Syndicate Banks (SCBS) in public issues which open on or after September 1, said a release issued by SEBI today. The respective banks have also announced the select bank branches where this facility will be available from September 1, 2008, reports The Hindu Business Line.

Source: Moneycontrol.com

BSNL IPO issue dropped from board meeting agenda

2008-08-28T23:43:00.000+05:30

The Board of state-run BSNL today skipped discussion on its proposed public offer as the company is still trying to make the employees union agree to dilution of equity. However, the ITI-BSNL merger issue, which is also opposed by the union, came up for discussion.

Source: Congoo.com

20 Microns fixes IPO price band at Rs 50-55

2008-08-28T23:41:00.000+05:30

20 Microns, a pioneer and leader in the micronised minerals and trend setter in the market for usage of ultrafine minerals for the Paints & Plastic Industries, has fixed the price band between Rs 50 and Rs 55 per equity share for its initial public offering of 43,50,632 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process. The company filed a red herring prospectus with the Registrar of Companies, Gujarat, at Vadodara, on August 19, 2008.

The issue consists of a fresh issue of 16,75,000 equity shares of Rs 10 each and an offer for sale of 26,75,632 equity shares by Gujarat Venture Capital fund 1995. Up to 2,17,532 equity shares will be reserved for subscription by eligible employees. The issue will constitute 30.81% of the post issue paid up capital of the company. The ussue has been graded by the Credit Analysis & Research (CARE) and has been assigned the IPO Grade 3 indicating Average Fundamentals.

The company intends to utilize the proceeds of the fresh issue in the IPO 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.

The equity shares are proposed to be listed on Bombay Stock Exchange Ltd. and National Stock Exchange of India Ltd.

The book running lead manager is Keynote Corporate Services Limited.

Source: Moneycontrol.com

Nu Tek India attracts 4% premium on debut

2008-08-28T23:38:00.000+05:30

Settles at Rs 199.30 on BSE compared to IPO price of Rs 192

Nu Tek India settled at Rs 199.30 on BSE, a premium of 3.80% over the IPO price of Rs 192.

On BSE, 1.30 crore shares were traded on the Nu Tek India counter. The stock hit a high of Rs 225 and a low of Rs 194. The stock debuted at Rs 201.10, a premium of 4.73% over the IPO price.

The current price Rs 199.30 discounts, the company's year ended March 2008 EPS of Rs 12.30, by a price earning (PE) multiple of 16.20.

Nu Tek, a telecom infrastructure services provider, had fixed the issue price the top end of the Rs 170 - Rs 192 IPO price band.

Nu Tek India IPO ended on 1 August 2008 with 1.63 times subscription. The issue received bids for 73.49 lakh shares as against 45 lakh shares on offer. The qualified institutional buyers (QIBs) category was subscribed 2 times, the non-institutional investors portion was subscribed 1.78 times and the retail portion was fully subscribed.

Nu Tek India intends to utilise proceeds to meet the cost of capital expenditure, overseas acquisition and augmenting the long term working capital.

The company operates in states like Jharkhand, Orissa, West Bengal, Uttar Pradesh, Punjab, Jammu & Kashmir, and Uttarakhand. It has already started operations in Mumbai, Maharashtra and Goa.

The company provides services pertaining to technical support, operational & maintenance and telecom implementations. It undertakes turn-key projects which constitutes 57% of their business activities.

Nu Tek India reported a net profit of Rs 21.27 crore on revenue of Rs 95.16 crore in year ended March 2008.

Source: CapitalMarket.com

SVPCL to refund IPO application money to investors

2008-08-25T23:21:00.000+05:30

SC has rejected SVPCL petition that challenges BSE turning down its IPO. SVPCL will refund application money to investors, reports CNBC-TV18.

The company had entered capital market with a public issue of Rs 34.50 crore through a 100 per cent book-building process between October 22-26, 2007. The price band was at Rs 40-45 per equity share. Its issue just subscribed 1.09 times, as per NSE website data.

BOB Capital Markets Ltd was the book running lead manager for the issue and UTI Securities Ltd is the co-BRLM.

Source: Moneycontrol.com

NHPC IPO to hit market in October

2008-08-21T22:58:00.001+05:30

The state-run NHPC's initial public offering of 167 crore equity shares, the largest in Indian history, is likely to open on October 13.

According to the draft schedule drawn for the IPO that may raise around Rs 1,670 crore, the company would list on the Bombay Stock Exchange and National Stock Exchange on November 6.

The IPO would be closed on October 17. NHPC Board had earlier this month approved the IPO together with five per cent disinvestment of government stake and may become the first PSU to go public after Left parties withdrew support from the UPA government.

The Board of the company, which on August 6 filed a revised draft red herring prospectus (DRHP) with SEBI, is likely to decide on a price band for the IPO on September 16 and an Empowered Group of Ministers would approve it on September 19.

NHPC would file the prospectus with SEBI quoting the price band on September 22 and the same would be filed with Registrar of Companies on September 25.

NHPC, which accounts for 3.7 per cent of country's total power generation capacity, targets to double its power generation capacity by 2012 from the present 5,200 MW and has outlined expansion plans worth Rs 28,000 crore.

The IPO would comprise sale of 10 per cent of fresh equity shares and five per cent disinvestment of government equity.

According to the scheme, domestic roadshows for the public offering would begin on September 29, while international roadshows would commence on October 6.

The company board is likely to meet on October 18 to fix an issue price and within two days the EGOM would ratify that.

Source: Financialexpress.com

General insurers may be allowed to tap capital market

2008-08-21T22:56:00.001+05:30

The Initial Public Offering (IPO) of Bharat Sanchar Nigam Ltd (BSNL) is expected to take precedence over the capital raising proposals of the public sector general insurance companies.

Sources said that the Government was not opposed to the capital raising plans of the four general insurance companies — New India Assurance Company Ltd, National Insurance Company Ltd, Oriental Insurance Company Ltd and United India Insurance Company Ltd.

The plans are now awaiting amendments to the General Insurance Business (Nationalisation) Act of 1972 and the Insurance Act of 1938.

But clearance for the capital raising efforts is likely only after completion of the Rs 42,000-crore BSNL’s mega IPO. The sources said that the Government’s efforts were to push through with the 10 per cent divestment in BSNL. The BSNL focus was largely driven by the ticket size, the sources said.

The large ticket size would help the Government raise large resources and partly help in complying with the fiscal deficit targets for the current year, estimated at 2.5 per cent of the Gross Domestic Product.

Of smaller size
Raising of resources by general insurers through a combination of capital restructuring and IPOs would, however, be of far smaller magnitude.

The smaller ticket size notwithstanding, the sources said, indications are that the insurers would be permitted to access the domestic capital markets this financial year itself. This was particularly in view of general insurers’ urgency in capital requirements for growing their business.

Besides, general insurers also have pressed the need to reduce reliance on cross border risk capacities for conforming to regulatory solvency margins.

Solvency margin
At present, the regulator’s prescribed solvency margin is 150 per cent. Solvency margin implies the excess of capital and value of assets over the insured liabilities. At present, the PSU general insurers have solvency ratios in excess of two times over their insured liabilities.

However, this was largely in view of the low insurance penetration. The general insurance market is currently about Rs 35,000 crore or about 0.65 per cent of the Gross Domestic Product.

The Asian average is about 3 per cent of the GDP. Stepping it up to Asian levels, the sources said, would require capital infusion.

The combined net worth (paid-up equity + general reserves) of the four PSU insurers is currently about Rs 13,000 crore.

Besides, the sources said, valuation exercises for the four companies are yet to begin. New India Assurance, Oriental Insurance and United India Insurance have hired the Boston Consulting Group as external consultants. National Insurance has appointed PwC as its consultant.

The sources said that the consultants would not be valuing the companies.

But the process for beginning a valuation would be in place even as the amendments to the statutes are completed over the next few months, the sources added, reports The Hindu Business Line.

Source: Moneycontrol.com

SVPCL to refund IPO application money to investors

2008-08-21T22:53:00.000+05:30

Reliance Infratel IPO deadline lapses

2008-08-16T12:14:00.000+05:30

Reliance Infratel, the telecom infrastructure unit of Reliance Communications, is learnt to have deferred its plans for an initial public offering (IPO) because of the current volatility in the stock markets.

The outer deadline for completion of its IPO was August 11. A company has to complete the IPO process within 90 days after obtaining SEBI’s observations on its draft red herring prospectus.

Reliance Infratel had got the regulator’s approval for its proposed IPO on May 12. The prospectus was filed with SEBI on February 4.

The deadline, after which the regulator’s approval lapses, has passed without any announcement of an initial public offering by the company.

A spokesperson for Reliance Communications declined to comment on this development. It could not be ascertained whether the company would revive its IPO plans in the immediate future.

This is the third major IPO that is being deferred in recent times after that of commodity exchange MCX and mutual fund company UTI AMC. This clearly reflects the falling level of confidence among corporations and investors in the Indian financial markets, analysts said.

Moreover, all the Anil Dhirubhai Ambani Group stocks have been losing ground on the bourses. Analysts feel that the poor performance of the Reliance Power scrip, post its listing, could have also prompted the company to go cautious with the Infratel IPO. On the very day the RPower issue was listed, the scrip slipped below its offer price of Rs 450.

Reliance Infratel intended to issue 8.91 crore shares constituting 10.05 per cent of the post-issue paid-up equity capital of the company. Through this IPO, the company was expected to mop up about Rs 6,000 crore from the capital markets.

Source: thehindubusinessline.com

Gujarat NRE files case against Austral Coke

2008-08-14T22:15:00.000+05:30

Gujarat NRE Coke Ltd filed a civil suit in the Calcutta High Court against Austral Coke and Projects Ltd, its directors, auditors, merchant bankers and others associated with Austral Coke’s IPO seeking financial compensation for misusing the Gujarat NRE Coke name in a “distorted and misleading” way with a view to selling its issue to public investors.

Gujarat NRE Coke has taken serious objection to Austral Coke’s use of the Gujarat NRE Coke name “in a distorted and misleading way to sell its issue to public investors”. Gujarat NRE Coke has prayed that, by using its name, Austral Coke has severely damaged the reputation of Gujarat NRE Coke leading to loss of market capitalisation and shareholder interest, and for this it has sought compensation.

Among other things, Gujarat NRE Coke has also sought an injunction restraining Austral Coke, or any of its associates, from making and publicising any sort of comparison between Gujarat NRE Coke and Austral Coke, reports The Hindu Business Line.

Source: Moneycontrol.com

Resurgere Mines & Minerals India IPO subscribed 1.16 times

2008-08-14T22:12:00.000+05:30

Receives bids for 51.40 lakh shares as against 44.50 lakh on offer

The Resurgere Mines & Minerals India IPO was oversubscribed 1.16 times on its final day. The IPO received bids for 51.40 lakh shares as against 44.50 lakh on offer.

The qualified institutional buyers (QIB)’s portion was subscribed 1.34 times, non-institutional investors portion was subscribed 2.41 times and retail individual investor portion was subscribed 1 time.

The price band of the issue has been fixed between Rs 263 to Rs 272. The issue opened for subscription on 11 August 2008 and closed on 13 August 2008. At the upper end of the price band the company would raise up to Rs 121.04 crore, while at the lower level it would raise about Rs 117.04 crore.

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

Resurgere Mines & Minerals India is in the business of extraction, processing and sale of mineral products and exploration and development of mining assets. The product range includes various forms of iron ore such as Lump ore, Size ore, Calibrated Lump ore (CLO) and iron ore fines etc. and bauxite. The company sells all these products domestically except iron ore fines, which the company exports to China.

The company reported 110.4% spurt in net profit to Rs 66.56 crore on 154.80% surge in net sales to Rs 418.57 crore in the year ended March 2008 over the year ended March 2007.

Source: Capitalmarket.com

Oil India public offer likely in October

2008-08-13T22:17:00.000+05:30

The Oil India Ltd IPO is likely to open in October.

The tentative decision on IPO timing follows the recent approval by the Centre for appointing six new independent directors on board and conform to clause 49 of the listing agreement.

This has cleared the last hurdle before the company can go ahead with the IPO.

According to sources, the OIL board will meet on Tuesday to approve inclusion of the new directors and discuss pending issues regarding the proposed Rs 1,400-crore IPO.

It may be mentioned that the IPO was originally scheduled to hit the capital market in February-March this year. However, the opening was delayed due to non-availability of due approval for expansion of the board which was considered a pre-requisite.

“The Centre recently cleared appointment of six new directors on our board. We are holding discussions relating to the IPO with our issue managers. The issue is expected to open in October, most preferably in the third week of October,” an OIL source told Business Line.

On the uncertainties in the capital market and its impact on the proposed IPO, the source said the issue managers do not foresee any problem in going ahead with the issue.

“As on date we are decided to go ahead with the issue,” he added.

Issue details:
OIL proposed fresh issue of 10 per cent of the company’s paid up capital through IPO. An additional one per cent capital will be issued to the employees.

The issue will coincide with the proposed disinvestment of 10 per cent of OIL’s paid up capital by the Government in favour of three downstream PSU oil companies – Indian Oil, Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL). The disinvestment will take place at a price discovered through the IPO.

Post disinvestmnent, IOC will pick up five per cent stake in OIL. BPCL and HPCL will get 2.5 per cent stake each.

HSBC, Morgan Stanley and Citibank are the lead managers to the issue, reports The Hindu Business Line.

Source: Moneycontrol.com

Resurgere Mines IPO subscribed fully

2008-08-13T22:15:00.000+05:30

The IPO of Resurgere Mines & Minerals India has received total bids for 49,44,840 equity shares as against the total issue size of 44,50,000 equity shares. The Issue has been subscribed 1.11 times as per NSE website. The issue had opened on 11th August 2008.

The price band has been fixed at Rs 263 to Rs 272 per Equity share of Rs 10 each. The Issue comprised of reservation of 250,000 Equity shares for eligible employees, leaving the net issue to the public of 4,200,000 Equity shares. The net issue would constitute 14.72% of the post issue paid-up capital of the Company.

Motilal Oswal Investment Advisors Pvt. Ltd is the BRLM for the Issue and PL Capital Markets Pvt. Ltd and Ashika Capital Ltd are the Co-BRLMs for the Issue. The Equity shares are proposed to be listed on BSE and NSE.

The Company proposes to utilize the net proceeds of the Issue to part finance its plan for purchase of Plant and Machinery valued at Rs 1,285.64 million for setting up of its own extraction and crushing facilities at the mines and purchase of six railway rakes worth Rs 1,163.60 million to set up own logistics infrastructure facilities, besides meeting margin money requirement for working capital.

The Company proposes to part finance the cost through term loans of Rs 860 million to be raised from banks, Rs 430 million through Private Equity funding from Merrill Lynch International and Rs 137.30 million through Pre-IPO allotment. Merrill Lynch International holds 3,000,000 Equity shares, India Business Excellence Fund-I holds 910,000 Equity shares, IL&FS Trust Co. Ltd ( Trustees of Business Excellence Trust-India Business Excellence Fund ) hold 402,500 Equity shares, Mr Motilal Oswal hold 250,000 Equity shares and Mr. Raamdeo Agarwal holds 200,000 Equity Shares in the Company.

Presently, the extraction and processing activities of Resurgere Mines & Minerals India Ltd at existing operational mining locations are outsourced to various service providers. In order to reduce its operational costs and to increase its volumes the Company intends to deploy own machinery, labour and other material resources at its existing mining locations as well as at newer mining locations that it purport to undertake.

Further, to facilitate easy movement of its products, the Company proposes to acquire six railway rakes for providing the same to railway authorities under the Wagon Investment Scheme. Under the Scheme, on handing over the purchased rakes to the railways, the Company would be provided with an assured supply of 4 rakes per month against each rake. Additionally, the Company will be entitled to a freight rebate of 10%. Furthermore, it will also be eligible to get additional 2 rakes per month against each rake given by it without freight rebate.

Resurgere Mines & Minerals India Ltd has a diverse product range which includes various forms of iron ore such as Lump ore, Size ore, Calibrated Lump ore (CLO) and iron ore fine etc. and bauxite.

Source: Moneycontrol.com

Austral Coke IPO subscribed 1.65 times

2008-08-13T22:01:00.001+05:30

Initial public offering of Austral Coke and Projects has received bids for 1,19,77,384 shares as against issue size of 72,60,000 shares. It got subscribed 1.65 times, as per NSE website.

The company is mainly engaged in manufacture of low ash metallurgical coke (LAM Coke). It is also in the business of equipment rental, refractory and textile trading.

The issue will have additionally “Green Shoe Option” comprising 10,89,000 equity shares. The issue will close on August 13, 2008. Price band of Rs 164 to Rs 196 per share has been fixed.

The issue will constitute 27.72% of the fully diluted post issue capital of the company if the Green Shoe option is exercised and will constitute 25% if the Green Shoe option is not exercised.

Allbank Finance Limited is BRLM for the issue, whereas Saffron Capital Advisors Pvt Ltd, PL Capital Markets Pvt Ltd and Elara Capital (India) Pvt Ltd are the co-BRLMs for the issue. The equity shares are proposed to be listed on the BSE and the NSE.

The object of issue is to part finance its expansion plan involving setting up of 1,50,000 tpa of LAM Coke and setting up 8 MW Captive Power Plant (CPP) through waste heat recovery. The project is coming up at Sindhudurga in Maharashtra. Besides the project, company may utilize residual funds raised for acquiring coal mines either in India or abroad and may retire high cost debt. Availability of quality coal on regular basis will be always critical for running the operations successfully. Company has successfully concluded pre-IPO placement of 27,40,000 equity shares to Somerset India Fund at Rs 196 per share (at upper price band) aggregating to Rs.53.70 crores.

AUSTRAL setting up in house refractory unit so as to improve quality of operations goes well with similar practices followed major corporate in India like TISCO and ACC. End use industries for LAM Coke will be Foundries, Blast Furnaces, Zinc Smelters, Cement manufactures, Ferro Alloy industry and so on and advantage being consistency in quality, sizing and uniform temperature thereby reducing cold spots and metal wastage. The metallurgical coke division continues to be optimistic about the future with increasing demand for pig iron in the steel and automobile sectors and growth in Ferro alloys, cast iron castings and cement industries.

Source: Moneycontrol.com

Latest Grey Maket Rates - Listing/ Refund Date - Forthcoming IPO List

2008-08-11T19:59:00.002+05:30

Grey Market Premium Rates

Company	Open/Close	Offer Price	Premium	Kostak Rates
Resurgere Mines & Minerals Limited	11 August - 13 August	263 to 272	17 to 18	-------
Austral Coke And Projects Ltd	07 August - 13 August	164 to 196	04 to 05	-------
NuTek India Limited	29 July - 01 August	170 to 192	06 to 07	-------
Vishal Information Technologies Limited	21 July - 24 July	140 to 155	03 to 04.50	-------

Listing/Refund Board

Company	Expected Allotment Date	Expected Refund Date	Listing Date
Austral Coke And Projects Ltd	27 August	28 August	-------
Nu Tek India Limited	14 August	18 August	-------
Vishal Information Technologies Ltd	07 August	08 August	11 August

ICRA/CRISIL/CARE Grading

Company	Grading
Resurgere Mines & Minerals Limited	Grade 1
Vishal Information Technologies Ltd IPO	Grade 3
ARSS Infrastructure Projects Ltd	Grade 2
Neoteric Infomatique Ltd	Grade 2
Nu Tek India Ltd	Grade 3
Microsec Fiancial Services Ltd	Grade 2
RITES Ltd	Grade 3

Forthcoming IPO'S

List of forthcoming IPO'S..Dates yet to be announced.

Multi Commodity Exchange of India Ltd
Jaiprakash Power Venture Ltd
Godrej Sara Lee Ltd
Ways India Ltd
Elysium Pharmaceuticals Ltd
GE Capital Transportation Financial Services Ltd
Parabolic Drugs Ltd
Quantum Build-Tech Ltd
Terranova Technologies Ltd
Special Blasts Ltd
San Media Ltd
Pride Hotels Ltd

Austral Coke IPO subscribed fully

2008-08-11T19:44:00.003+05:30

Initial public offering of Austral Coke and Projects has received bids for 84,05,276 shares as against issue size of 72,60,000 shares. It got subscribed 1.16 times, as per NSE website.

The company is mainly engaged in manufacture of low ash metallurgical coke (LAM Coke). It is also in the business of equipment rental, refractory and textile trading.

The issue will have additionally “Green Shoe Option” comprising 10,89,000 equity shares. The issue will close on August 13, 2008. Price band of Rs 164 to Rs 196 per share has been fixed.

The issue will constitute 27.72% of the fully diluted post issue capital of the company if the Green Shoe option is exercised and will constitute 25% if the Green Shoe option is not exercised.

Allbank Finance Limited is BRLM for the issue, whereas Saffron Capital Advisors Pvt Ltd, PL Capital Markets Pvt Ltd and Elara Capital (India) Pvt Ltd are the co-BRLMs for the issue. The equity shares are proposed to be listed on the BSE and the NSE.

The object of issue is to part finance its expansion plan involving setting up of 1,50,000 tpa of LAM Coke and setting up 8 MW Captive Power Plant (CPP) through waste heat recovery. The project is coming up at Sindhudurga in Maharashtra. Besides the project, company may utilize residual funds raised for acquiring coal mines either in India or abroad and may retire high cost debt. Availability of quality coal on regular basis will be always critical for running the operations successfully. Company has successfully concluded pre-IPO placement of 27,40,000 equity shares to Somerset India Fund at Rs 196 per share (at upper price band) aggregating to Rs.53.70 crores.

AUSTRAL setting up in house refractory unit so as to improve quality of operations goes well with similar practices followed major corporate in India like TISCO and ACC. End use industries for LAM Coke will be Foundries, Blast Furnaces, Zinc Smelters, Cement manufactures, Ferro Alloy industry and so on and advantage being consistency in quality, sizing and uniform temperature thereby reducing cold spots and metal wastage. The metallurgical coke division continues to be optimistic about the future with increasing demand for pig iron in the steel and automobile sectors and growth in Ferro alloys, cast iron castings and cement industries.

Source: Moneycontrol.com

Vishal Information Technologies surges on debut

2008-08-11T19:36:00.000+05:30

Attracts 29.43% premium over IPO price

Vishal Information Technologies settled at Rs 194.15 on BSE, a premium of 29.43% over the initial pubilc offer (IPO) price of Rs 150 on its debut today.

The stock debuted at Rs 150, at the same price as the initial public offer price (IPO). The stock hit a high of Rs 197.20 and a low of Rs 145.

On BSE, 1.17 crore shares were traded on the counter.

The current price of Rs 194.15 discounts the company's year ended March 2008 EPS of Rs 11.6, by a PE multiple of 16.73.

The Vishal Information Technologies IPO which closed on 24 July 2008 was subscribed 1.19 times. The IPO received bids for 33.28 lakh shares as compared to 27.90 lakh shares on offer.

Vishal Information Technologies provides IT-enabled services (ITeS) in the areas of data digitisation, e-publishing and digital library.

The company came out with IPO to fund its expansion plans including setting up a bigger campus and marketing offices in the US and UK.

The company reported a net profit of Rs 12.36 crore on sales of Rs 40.87 crore in the year ended March 2008.

Source: Capitalmarket.com

KSK Energy Ventures ends with 20% discount

2008-07-16T09:24:00.000+05:30

KSK Energy Ventures, a company with experience in developing and operating power plants, ended at Rs 191.75 on the NSE, at a discount of 20.10% to its issue price of Rs 240.

On the NSE, the share touched an intraday high of Rs 234.80 and intraday low of Rs 176.56. The total traded quantity was 1,20,94,707 shares and turnover was Rs 23394.79 lakh.

On the BSE, the share closed at Rs 190.50. On BSE its intraday high was at Rs 234.80 and intraday low was at Rs 176. The total traded quantity was 9926869 shares.

The share had listed at Rs 210.05 on the NSE against the issue price of Rs 240 at a discount of 12.48% whereas on the BSE the share had opened at Rs 220 at a discount of 8.33% to its issue price.

KSK Energy Ventures had entered capital market with a public issue of 3,46,11,000 shares and was subscribed 1.5 times.

Source: Moneycontrol.com

Latest IPO Grey Market Premium Rates

2008-06-26T20:15:00.001+05:30

Grey Market Premium Rates

Company	Open/Close	Offer Price	Premium	Kostak Rates
Birla Cotsyn	30 June - 04 July	15 to 18	02 to 03	-------
KSK Energy Venture Limited	24 June - 27 June	240 to 255	Discount	-------
Somi Conveyor Beltings Limited	24 June - 27 June	35	04 to 06	-------
Lotus Eye Care	12 June - 20 June	38 - 42	Discount	-------
Archidply Industries Limited	11 June - 17 June	70 - 80	03 to 05	-------
First Winner Industries Limited	09 June - 17 June	115 - 125	Discount	-------
Sejal Architectural Glass Ltd	09 June - 12 June	105 - 115	15 to 16	-------
Avon Weighing Systems Limited	09 June - 12 June	10	06 to 07	-------
Bafna Pharmaceuticals Limited	27 May - 30 May	40	07 to 09	-------

Listing/Refund Board

Company	Expected Allotment Date	Expected Refund Date	Listing Date
KSK Energy Ventures Limited	09 July	10 July	-------
Somi Conveyor Beltings Limited	14 July	15 July	-------
Lotus Eye Care Limited	04 July	07 July	-------
Archidply Industries Limited	01 July	02 July	-------
First Winner Industries Limited	26 June	27 June	-------
Avon Weighing Systems Limited	30 June	02 July	-------
Sejal Architectural Glass Ltd	26 June	27 June	-------

Bafna Pharmaceuticals to list on June 27

2008-06-26T19:54:00.000+05:30

Bafna Pharmaceuticals will list on the bourses with its public issue of 64,00,000 equity shares of Rs 10 each on June 27, 2008. The issue price was Rs 40 per equity share (including share premium of Rs 30 per equity share).

The issue will constitute 40.05% of the post issue paid-up capital of the company. The issue price is 4 times of the face value. The shares are proposed to be listed on the BSE.

Objects of the issue were as follows:
* Brand building in domestic markets Rs 10.44 crore.
* Part payment of loan from SBI Rs 4 crore.
* Brand building in international markets Rs 3.03 crore.
* Setting up R&D facilities Rs 3 crore.
* MHRA Accrediation Rs 1.08 crore.
* Public Issue expenses Rs 2.05 crore.
* Cameo Corporate Services is the Registrar to the Issue.

Ashika Capital and Keynote Corporate Services were the Lead Managers to the Issue

Source: Moneycontrol.com

KSK Energy Ventures subscribed 0.94 times

2008-06-23T23:48:00.000+05:30

Receives bids for 3.26 crore shares

The initial public issue of KSK Energy Ventures on Monday, 23 June 2008 got subscribed 0.94 times. The issue received bids for 3.26 crore shares as against 3.46 crore shares on offer. (As at 16:00 IST)

The price band for the IPO has been fixed between Rs 240 - Rs 255 per share. The issue will close on 25 June 2008.

The company had successfully completed the pre-IPO placement of 1.73 crore equity shares at a price of Rs 240 per share, thus raising over Rs 415 crore.

KSK Energy was established in 2001 to capitalise on emerging opportunities in the Indian power sector and focus on developing, operating and maintaining power projects.

It has operational power plants capable of generating 144 megawatts (MW) of power, and it is currently constructing, developing or planning power projects capable of generating an aggregate of 8,993 MW of power.

The Hyderabad-based firm plans to raise up to Rs 882 crore to part finance its investment in the SPV Wardha Power Company for the 1,800 MW coal-based thermal power plant in Chattisgarh.

Source: Capitalmarket.com

Lotus Eye Care extends IPO to June 20, price band Rs 36-38

2008-06-17T20:10:00.000+05:30

Lotus Eye Care Hospital has revised its IPO price band to Rs 36-38 from Rs 38-42 per share and extended by three days on the back of poor subscription. Now the issue will close on June 20, 2008 instead of today, June 17.

It has subscribed only 0.54 times as per the NSE web site. It has received total bids for 54,26,700 shares as against issue size of 1,00,00,000 shares.

The issue had opened for subscription on June 12, 2008 with a public issue of 1,00,00,000 equity shares of Rs 10 each through 100% book building process. The price band is between Rs 38 to Rs 42 per equity share of Rs 10 each.

The issue will constitute 48.09% of the fully diluted post issue paid-up equity share capital of the company.

Keynote Corporate Services Ltd is the BRLM and Canara Bank Merchant Banking Division is the co-lead manager for the issue and S.K.D.C. Consultants Ltd is the registrar to the issue.

The company proposes to utilise the net proceeds of the issue to part finance its Rs 5500 lacs expansion plan. The plan covers expansion of existing facilities and establishment of new centers with latest technology. To fund this plan, Lotus expects to raise Rs 4200 lakh through the public issue, it has tied up Rs 999.54 lakh of term loans from banks and raises remaining Rs 300.46 lakh through internal accruals.

Source: Moneycontrol.com

Archidply Industries IPO oversubscribed

2008-06-17T20:09:00.000+05:30

Receives bids for 97.64 lakh shares as against 66.15 lakh shares on offer

The IPO of Archidply Industries received decent response for its initial public offer (IPO). The IPO which closed today 17 June 2008, was subscribed 1.48 times by 17:00 IST on NSE. The IPO received bids for 97.64 lakh shares, as against 66.15 lakh shares on offer.

Archidply Industries had set Rs 70 to Rs 80 per share price band for its IPO.

Archidply Industries manufactures comprehensive engineered interior products which include plywood, block board, plain and pre laminated particle board, decorative laminates and decorative veneers.

The capital raised from the issue will be deployed to set up a new manufacturing facility of plain particle board, pre laminated board and decorative plywood at Karnataka. The capital will also be deployed to set up a new manufacturing capacity for medium density fibreboard (MDF) at Rudrapur in Uttarakhand. Also the proceeds will be deployed towards margin money for working capital.

The company reported 157.26% jump in net profit to Rs 14.87 crore on 52.68% rise in net sales to Rs 143.55 crore in the year ended March 2008 over the year ended March 2007.

Source: CapitalMarket.com

First Winner Industries IPO subscribed 1.26 times

2008-06-17T20:06:00.000+05:30

Receives bids for 69.2 lakh shares as against 55 lakh shares on offer

The IPO of First Winner Industries received bids for 69.2 lakh shares, as against 55 lakh shares on offer till 17:30 IST on the last day of issue today. The issue was subscribed 1.26 times. The First Winner Industries IPO had opened on 9 June 2008.

The First Winner Industries IPO, which was originally scheduled to close on 12 June 2008, closed today 17 June 2008, as the company had extended the IPO closing date due to poor responce to the issue. Further the price band was revised downwards from the earlier Rs 120 to Rs 130 per share to Rs 115 to Rs 125 per share.

First Winner Industries is engaged in the manufacture of grey fabrics and in trading of textile fabrics which are supplied to various wholesalers, apparel and garment manufacturers. The company has two subsidiaries, Ramshyam Textile Industries and First Winner Lifestyle (formerly Realgold Exports), which are engaged in same businesses. Ramshyam Textile Industries has 48 looms with total installed capacity of 42.24 lakh meter fabrics per annum. First Winner Lifestyle has a weaving unit with 48 looms and total installed capacity of 62 lakh meters per annum.

First Winner Industries plans to utilise the proceeds of the IPO to set up a new apparel manufacturing facility with a production capacity of 5,000 pieces of men’s wear shirts per day at an estimated cost of Rs 12.03 crore and setting up of a new weaving unit to increase its existing production capacity to 170 lakh meter per annum at an estimated cost of Rs 21.63 crore. The company also intends to make prepayment of term loan amounting to Rs 18 crore.

The company reported 4150% spurt in net profit to Rs 2.55 crore on 45.20% rise in net sales to Rs 55.50 crore in the year ended March 2007 over the year ended March 2006.

Source: CapitalMarket.com

Somi Conveyor Beltings IPO opens on June 24

2008-06-16T21:29:00.002+05:30

Somi Conveyor Beltings will enter the capital market with an initial public offering, IPO of 62,27,860 equity shares of Rs 10 each through 100% book building process on June 24, 2008. The price has been fixed at Rs 35 per equity share. The issue will close for subscription on June 27, 2008.

The issue comprises of contribution by promoters, of 14,99,286 equity shares of Rs 10 each at a price of Rs 35 per equity share for cash aggregating to Rs 5.25 crores, and the net issue to the public of 47,28,574 equity shares of Rs 10 each at a price of Rs 35 per equity share for cash aggregating to Rs 16.55 crores including an allocation of atleast 10% of the net issue to the public to Aualified Institutional Buyers. The net issue to public would constitute 40% of the fully diluted post issue paid up capital of the company. The issue price is 3.5 times of the face value of the equity share.

The shares are proposed to be listed on the BSE.

Ashika Capital is the Lead manager to the issue.

Mondkar Computers is the Registrar to the issue.

Source: Moneycontrol.com

CARE assigns IPO grade 3/5 to Lotus Eye Care Hospital

2008-06-16T21:29:00.001+05:30

CARE has come out with a research report on Lotus Eye Care Hospital. It has assigned IPO Grade 3/5 to the company's IPO. The company proposes an initial public offering of about one crore equity share of face value of Rs 10 each. The issue will close today.

CARE report on Lotus Eye Care Hospital's IPO:
CARE has assigned a ‘CARE IPO Grade 3’ to the proposed IPO (initial public offer) of Lotus Eye Care Hospital (LECHL). ‘CARE IPO Grade 3’ indicates Average Fundamentals. CARE assigns IPO grades on a scale of Grade 5 to Grade 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. CARE’s IPO grading is an opinion on the relative fundamentals of the issuer. LECHL proposes an initial public offering of about one crore equity share of face value of Rs.10 each.

The grading factors in the vast experience of the promoter in the field of eye surgery, supported by qualified and experienced team of doctors, availability of latest sophisticated technology and medical equipment providing comprehensive eye care services and high profit margins of the company. The grading is however constrained by company’s small size of operation, regional presence, project implementation risk, uncertainty associated with the proposed revenue streams in light of competition from established players and moderate corporate governance practices which presents scope for improvement LECHL is a leading super-specialty eye care company, originally incorporated as “Kalaivani Health Centre Pvt Limited” in March, 1997. The name of the company was subsequently changed to “Lotus Eye Care Hospital Limited” upon conversion into Public Limited Company in October, 2007. The company was promoted by Dr.S.K.Sundaramoorthy and his family members Dr.Sundaramoorthy is a renowned eye surgeon and has more than 25 years of experience in the field of eye surgery. He is the Chairman and Managing Director (CMD) of LECHL and looks after the day to day affairs of the company.

LECHL runs a leading super-specialty eye care hospital and is headquartered in Coimbatore. LECHL offers advanced treatment for cataract, diabetic related eye diseases and refractive errors besides regular eye care services. LECHL has a team of qualified and experienced doctors in different specialties using the latest technology medical equipments and backed by well-trained paramedical and administrative team. Currently, LECHL has four eye care centers in Coimbatore, Salem and Tirupur and the total bed strength of all the centers is 120.

LECHL has structured its business activities in the form of a “hub and spokes” network under which its centers are organized into primary, secondary and tertiary eye care centers. The tertiary eye care centre functions as a hub, which is surrounded by secondary eye care centers, which are in turn served by the outermost layer of primary eye care units. This model results in increased reach and quality of service to patients and enhanced market visibility.

Gross sales of LECHL increased from Rs.221 lakh in FY05 to Rs.695 lakh in FY07 due to the acquisition of the optical business of Dr. Sundaramoorthy and merger of Dr.S.K.S. Eye Care Centre Pvt Ltd, a company promoted by Dr. Sundaramoorthy, with LECHL. Substantial portion of LECHL’s revenue is from cataract department, which accounts for around 30- 35% of the total revenue. For FY07, PBIDT and PAT margin was high as 41% and 18% respectively. ROCE and RONW were moderate at 12.8% and 14% respectively in FY07.

LECHL has planned various expansion projects which include establishing new secondary and primary centers with latest technology and expanding their existing facilities. The total estimated project cost is Rs.55 cr which will be funded by IPO issue proceeds of Rs 42 crore and debt of Rs 10 crore from various banks and balance (Rs.3cr) by internal accruals.

With the emergence of India as a destination for medical tourism, private hospitals like LECHL which provide high quality healthcare facilities at competitive costs and coupled with high success rate and growing credibility, can capitalize on the increasing health care needs of the western world. Healthcare industry is expected to get further boost with the opening up of the insurance sector to private players which will make healthcare affordable to a large number of people. Though there is an increasing preference for private medical care amongst the urban population due to the world class facilities offered by them, LECHL, with its limited presence may face tough competition from other established and bigger charitable institutions and private eye hospitals.

Source: Moneycontrol.com

Avon Weighing IPO Subscribed 45 Times

2008-06-16T21:27:00.000+05:30

The fixed price at par IPO by Avon Weighing Systems received an overwhelming response from investors and it was subscribed 45 times, according to the data available. Keynote Corporate Services Limited is the Lead Manager for the Issue and Datamatics Financial Services Limited is the Registrar to the Issue.

The company engaged in the business of selling weighing systems in India had entered the capital markets on 9th June 2008 with a public issue of 1,37,33,033 Equity Shares of Rs 10 each at par aggregating to Rs 1373.30 lacs. This comprises of promoters’ contribution of 38,96,633 Equity Shares aggregating to Rs 389.66 lacs, leaving a net offer to the public of 98,36,400 Equity Shares aggregating Rs 983.64 lacs constituting 59.33% of the post issue paid-up capital of the Company. The Equity Shares are proposed to be listed on BSE.

Avon proposes to part finance its Rs 17.30 crore plan through the net proceeds of the Issue. The plan include setting up of facility for manufacturing of a range of weighing systems, open four showrooms for display and sale of its weighing systems in Mumbai, Delhi, Chennai and Hyderabad, and purchase of additional office premises in Mumbai. The project is proposed to be funded through IPO of Rs 9.83 crores, promoters contribution of Rs 4.36 crores, internal accruals of Rs. 0.50 crore and a term loan of Rs.2.60 crores from Bank of India.

The proposed manufacturing plant will be set up at Baddi in Himachal Pradesh with technical assistance from Tanita Corporation of Japan. Avon will be able to enjoy fiscal incentives provided by the Himachal Pradesh government for setting up plant at Baddi.

Source: Moneycontrol.com

First Winner revises IPO price band to Rs 115-125

2008-06-13T20:01:00.000+05:30

First Winner Industries presently engaged in the manufacture of grey fabrics and in trading of textile fabrics which are supplied to various wholesalers, apparel and garment manufacturers, announced that its public issue, which was initially slated to close on June 12, will now close on June 17. The price band has been revised downwards from Rs 120-130 to Rs 115-125. As on June 12 the issue had received bids for 40.69 lakh shares as against issue size of 55,00,000 shares and was subscribed only 0.74 times.

The issue had opened for subscription on June 9, 2008 with an Initial Public Offering (IPO) of 55,00,000 Equity Shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.

The Equity Shares are proposed to be listed on Bombay Stock Exchange Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”). Almondz Global Securities Limited is the sole Book Running Lead Manager (“BRLM”) to the Issue.

Source: Moneycontrol.com

Archidply Industries IPO sees poor response on day three

2008-06-13T19:43:00.000+05:30

Receives bids for 6.17 lakh shares as against 66.15 lakh shares on offer

The IPO of Archidply Industries continued to see muted response on day three. As per NSE data, the IPO received bids for just 6.17 lakh shares, as against 66.15 lakh shares on offer. The issue was subscribed 0.09 times.

Archidply Industries has set Rs 70 to Rs 80 per share price band for its IPO. The issue will close on 17 June 2008.

Archidply Industries manufactures comprehensive engineered interior products which include plywood, block board, plain and pre laminated particle board, decorative laminates and decorative veneers.

The capital raised from the issue will be deployed to set up a new manufacturing facility of plain particle board, pre laminated board and decorative plywood at Karnataka. The capital will also be deployed to set up a new manufacturing capacity for medium density fibreboard (MDF) at Rudrapur in Uttarakhand. Also the proceeds will be deployed towards margin money for working capital.

The company reported 157.26% jump in net profit to Rs 14.87 crore on 52.68% rise in net sales to Rs 143.55 crore in the year ended March 2008 over the year ended March 2007.

Source: Capitalmarket.com