Market has not been showing any signs of recovery yet. It has been reacting to weak global cues like subprime crisis, Yen carry trade, slowdown in US etc since second half of January. Due to this heavy selling pressure from FIIs, market sentiment has worsened; retail investors have not been showing any confidence. Due to this Sensex slipped below 15000 mark in the last week.
Stocks and sectors have collapsed like pack of card. Real estate sector is one of them, which was the worst hit; BSE Realty Index crashed 52% from its all time high of 13848.09. It has touched a low of 6,625.23 in today’s trade.
There is a big news, which impacted the Mumbai based realty players that Bombay HC dismissed petitions of developers on 'Declared Forest Land' in Mumbai. This Bombay HC Verdict is going to impact construction on 1000 acres land in Suburban Mumbai, Thane. The court has declared Kandivali, Mulund, Thane and Ghatkopar stretches as Forest land.
Pure real estate stocks, which got listed in the last two years, have been getting closer to its issue price or some are trading below issue price. There are nine pure real estate stocks, out of which 2/3 stocks have slipped nearly 40-50% below issue price. In the last bull run till January first half stocks were available at 52-week highs. But now the same stocks are cheaper by 50-70% from that 52-week high.
Omaxe has hit 52-week high of Rs 613 as against its issue price of Rs 310 and now it is trading at around Rs 182, down more than 70% from that high. Similar is the case with Parsvnath, Kolte Patil, Puravankara and many more…
Source: Moneycontrol.com
Showing posts with label IPO News India. Show all posts
Showing posts with label IPO News India. Show all posts
Monday, March 24, 2008
Saturday, January 19, 2008
Good IPOs will continue to get good response
USD 190 billion is the demand for the USD 2.5 billion Reliance Power IPO and it is a record for the Indian markets.
The issue, which closed today, has attracted a whopping USD 190 billion. It has been subscribed 72.5 times, with the QIB portion being subscribed 80 times. The HNI portion has been subscribed 200 times and the retail portion has been subscribed 15 times.
The issue has broken the record set when Mukesh Ambani's Reliance Petroleum tapped the capital markets. The retail portion of the IPO has seen 45 lakh applications, more than double the 21 lakh applications garnered by the Reliance Petroleum IPO’s retail portion.
Speaking to CNBC-TV18, Vallabh Bhansali, Chairman, Enam said that they were slightly surprised by the overwhelming response. He added that the response has come on the face of some of the worst markets seen in recent times. According to Bhansali, good IPOs are priced well and will continue to receive good response.
Excerpts from CNBC-TV18’s exclusive interview with Vallabh Bhansali:
Q: Were you slightly surprised, especially by the kind of response seen from HNI?
A: We were all surprised by the overwhelming response in each of the categories. We were absolutely overwhelmed.
Q: Where has the demand come from? Could you give us a slightly more detailed breakdown?
A: It has come from every nook and corner, from institutional investor of every shade. It has come from every investor around the country. It has come from HNIs and corporates and every kind of investor one could think of. This has come very significantly on the face of some of the worst markets that we have seen in recent times.
Q: Around USD 1.5 billion was withdrawn, by foreign investors, in the last three days. That is USD 133 billion in market cap wiped out in a week, not quite the best conditions for this and many more IPOs that are lined up. What is your thought on the environment?
A: We have to reckon with this environment. I think people are conscious that the US is going through a difficult phase and it has to have an effect on global markets. But one does not know on what week, day and hour, when this trouble strikes. I think it just so happened that it has been striking this week.
I do think that India is a very good story, wherever these stocks had run-up. So, maybe there is a correction. But the good IPOs priced well and will continue to receive good response.
Q: We have seen foreign institutional investors withdrawing large sums of money in the last three trading sessions. Now we know what is going on in the US. But how optimistic are you that this is just a correction and we will see money coming back into India?
A: The result season is still not over; it has just started. I think the results, starting with the technology results, have been good and will continue to be the main plank, which will attract money. We are seeing some slowdown in some areas of the economy, but the services sector continues to be very strong.
The market has been very intelligent, in terms of punishing stocks, wherever the rally was unsustainable. Therefore, for the last several days, we have seen some categories of stocks go down continuously, even when the broader market was rallying.
So, you are seeing intelligence at play. You are not seeing extraordinary panic or hurt behaviour beyond a point. This is a market, which is driven largely by retail. That is a cause of worry, but it also corrects itself as it has.
So, all in all, the fundamentals of India continue to remain strong, even if industrial production seems to be slowing down for a while. It is the relative attractiveness of India, compared to lot of other markets in the world and that will continue to be the theme.
Q: Were there any anxious moments? We saw the markets correcting and correcting so sharply just when the IPO opened?
A: I think we had some anxious moments, at some point of time, whether the panic will reach to the FIIs particularly and would there be any withdrawals. But that was only internal because over the last night, when the global markets were not really giving great comfort, we saw continuous and sustained interest of FIIs.
On January 18, as soon as the day opened, we were able to get large orders into the book. I believe other lead managers do the same thing. So, the anxious moments were really more in our mind. There was no evidence of any withdrawal, at any point of time, in any segment. So, this has been an extraordinary overwhelming experience.
Q: Initially you talked about the impact of the global market meltdown on the IPO pipeline. Do you actually see the IPO pipeline drying up for the moment, if the situation does not improve?
A: Some times what happens is that if you see quality companies come to the market, people reserve the money for the IPO market, rather than put it in the secondary market. Sometimes they withdraw that money because in the IPO market, particularly in QIPs, people see good prospects of getting the allocation that they want.
So, there is difficulty in the market and the pricing has to be attractive for the IPOs to succeed. But we have seen the demand for Future Capital and we have seen extraordinary demand for Reliance Power, in the face of these markets.
Therefore, one likes to think that there is a discerning decision or discerning mechanism in play and people are trying to buy good companies for the long-term and withdraw from segments and stocks, that they see as overpriced in this market.
Q: Are you are expecting a record breaking opening as well?
A: Why not.
Source: Moneycontrol.com
The issue, which closed today, has attracted a whopping USD 190 billion. It has been subscribed 72.5 times, with the QIB portion being subscribed 80 times. The HNI portion has been subscribed 200 times and the retail portion has been subscribed 15 times.
The issue has broken the record set when Mukesh Ambani's Reliance Petroleum tapped the capital markets. The retail portion of the IPO has seen 45 lakh applications, more than double the 21 lakh applications garnered by the Reliance Petroleum IPO’s retail portion.
Speaking to CNBC-TV18, Vallabh Bhansali, Chairman, Enam said that they were slightly surprised by the overwhelming response. He added that the response has come on the face of some of the worst markets seen in recent times. According to Bhansali, good IPOs are priced well and will continue to receive good response.
Excerpts from CNBC-TV18’s exclusive interview with Vallabh Bhansali:
Q: Were you slightly surprised, especially by the kind of response seen from HNI?
A: We were all surprised by the overwhelming response in each of the categories. We were absolutely overwhelmed.
Q: Where has the demand come from? Could you give us a slightly more detailed breakdown?
A: It has come from every nook and corner, from institutional investor of every shade. It has come from every investor around the country. It has come from HNIs and corporates and every kind of investor one could think of. This has come very significantly on the face of some of the worst markets that we have seen in recent times.
Q: Around USD 1.5 billion was withdrawn, by foreign investors, in the last three days. That is USD 133 billion in market cap wiped out in a week, not quite the best conditions for this and many more IPOs that are lined up. What is your thought on the environment?
A: We have to reckon with this environment. I think people are conscious that the US is going through a difficult phase and it has to have an effect on global markets. But one does not know on what week, day and hour, when this trouble strikes. I think it just so happened that it has been striking this week.
I do think that India is a very good story, wherever these stocks had run-up. So, maybe there is a correction. But the good IPOs priced well and will continue to receive good response.
Q: We have seen foreign institutional investors withdrawing large sums of money in the last three trading sessions. Now we know what is going on in the US. But how optimistic are you that this is just a correction and we will see money coming back into India?
A: The result season is still not over; it has just started. I think the results, starting with the technology results, have been good and will continue to be the main plank, which will attract money. We are seeing some slowdown in some areas of the economy, but the services sector continues to be very strong.
The market has been very intelligent, in terms of punishing stocks, wherever the rally was unsustainable. Therefore, for the last several days, we have seen some categories of stocks go down continuously, even when the broader market was rallying.
So, you are seeing intelligence at play. You are not seeing extraordinary panic or hurt behaviour beyond a point. This is a market, which is driven largely by retail. That is a cause of worry, but it also corrects itself as it has.
So, all in all, the fundamentals of India continue to remain strong, even if industrial production seems to be slowing down for a while. It is the relative attractiveness of India, compared to lot of other markets in the world and that will continue to be the theme.
Q: Were there any anxious moments? We saw the markets correcting and correcting so sharply just when the IPO opened?
A: I think we had some anxious moments, at some point of time, whether the panic will reach to the FIIs particularly and would there be any withdrawals. But that was only internal because over the last night, when the global markets were not really giving great comfort, we saw continuous and sustained interest of FIIs.
On January 18, as soon as the day opened, we were able to get large orders into the book. I believe other lead managers do the same thing. So, the anxious moments were really more in our mind. There was no evidence of any withdrawal, at any point of time, in any segment. So, this has been an extraordinary overwhelming experience.
Q: Initially you talked about the impact of the global market meltdown on the IPO pipeline. Do you actually see the IPO pipeline drying up for the moment, if the situation does not improve?
A: Some times what happens is that if you see quality companies come to the market, people reserve the money for the IPO market, rather than put it in the secondary market. Sometimes they withdraw that money because in the IPO market, particularly in QIPs, people see good prospects of getting the allocation that they want.
So, there is difficulty in the market and the pricing has to be attractive for the IPOs to succeed. But we have seen the demand for Future Capital and we have seen extraordinary demand for Reliance Power, in the face of these markets.
Therefore, one likes to think that there is a discerning decision or discerning mechanism in play and people are trying to buy good companies for the long-term and withdraw from segments and stocks, that they see as overpriced in this market.
Q: Are you are expecting a record breaking opening as well?
A: Why not.
Source: Moneycontrol.com
Thursday, November 29, 2007
Minimum appl value for IDR issue cut to Rs 20k
Sebi has issued guidelines on Indian Depositary Receipts, or IDR, and fast track issues, reports CNBC-TV18.
It has amended DIP norms and issued eligibility norms for fast track issues. The minimum application value for IDR issue has been cut to Rs 20,000 from Rs 2 lakh. All categories of investors can apply for IDR issues and 50% is reserved for QIBs.
The reservation for existing shareholders is limited to individual retail shareholders. Listed firms meeting specified requirements can make FPO and rights issues.
Sebi has discarded special dispensation to DFIs and said that it has outlived its utility. The issue of proceeds report is not required for issues by financial institutions.
With regard to fast track issue, companies must be listed for at least three years. The average market capital of companies must be at least Rs 10,000 crore. Annualised trading turnover in the last six months must be 2% of listed shares
Source: Moneycontrol.com
It has amended DIP norms and issued eligibility norms for fast track issues. The minimum application value for IDR issue has been cut to Rs 20,000 from Rs 2 lakh. All categories of investors can apply for IDR issues and 50% is reserved for QIBs.
The reservation for existing shareholders is limited to individual retail shareholders. Listed firms meeting specified requirements can make FPO and rights issues.
Sebi has discarded special dispensation to DFIs and said that it has outlived its utility. The issue of proceeds report is not required for issues by financial institutions.
With regard to fast track issue, companies must be listed for at least three years. The average market capital of companies must be at least Rs 10,000 crore. Annualised trading turnover in the last six months must be 2% of listed shares
Source: Moneycontrol.com
Wednesday, November 28, 2007
Issues Open Now
Below are the current issue open:-
Burnpur Cement:
Offer Price: Rs. 12/-
Issue Open date: 28-11-2007
Issue Close date: 03-12-2007
eClerx Services:
Offer Price: Rs. 270 - Rs. 315
Issue Open date: 04-12-2007
Issue Close date: 07-12-2007
BGR Energy:
Offer Price: Rs. 425 - Rs. 480
Issue Open date: 05-12-2007
Issue Close date: 12-12-2007
Burnpur Cement:
Offer Price: Rs. 12/-
Issue Open date: 28-11-2007
Issue Close date: 03-12-2007
eClerx Services:
Offer Price: Rs. 270 - Rs. 315
Issue Open date: 04-12-2007
Issue Close date: 07-12-2007
BGR Energy:
Offer Price: Rs. 425 - Rs. 480
Issue Open date: 05-12-2007
Issue Close date: 12-12-2007
Friday, November 23, 2007
Jyothy Labs well placed for healthy growth
India Infoline has come out with research report on Jyothy Laboratories IPO. The firm has recommended subscribing to the issue.
Jyothy Laboratories has opened for subscription with an initial public offering (IPO) of 44.30 lakh shares of Rs 5 each at a price band between Rs 620 and Rs 690 per equity share.
The company will raise Rs 274 at lower price band and Rs 305.6 crore at higher end of price band. The issue will close on November 27, 2007.
India Infoline report on Jyothy Laboratories IPO
Jyothy Laboratories (JLL) is an FMCG company making a range of branded products, including fabric whiteners, mosquito repellents, dish-washing soaps, soaps and incense. Its key brands are Ujala, Maxo, Exo, Jeeva and Maya.
Investment summary
* Ujala is a well-known brand of fabric whitener, with dominant market share of approximately 72% in the category
* Local presence and wide distribution reach
* Targets the rural market
* Entering into new joint-venture initiatives
Risks and concerns
* Heavily depend on two biggest brands, Ujala and Maxo which contribute 43.6% and 35.4% of its total sales respectively (as on 30 June 2007).
* Dependence on outsourced production through third parties. Any disputes or disagreements may affect their business.
* The company is susceptible to seasonal variations in demand for its products.
Valuations attractive in comparison to the peer group
At the issue price of Rs 620-690, JLL commands an inexpensive P/E (on relative basis) of 18.6x-20.7x based on FY07 EPS of Rs 33.3. The price/book ratio of 3.4x at Rs 690 is also at steep discount to peers. The company is well-placed for healthy growth, given its well-established brand equity, leadership in the fabric whitener segment and strategic alliances. We recommend to Subscribe in the issue.
Source: Moneycontrol.com
Jyothy Laboratories has opened for subscription with an initial public offering (IPO) of 44.30 lakh shares of Rs 5 each at a price band between Rs 620 and Rs 690 per equity share.
The company will raise Rs 274 at lower price band and Rs 305.6 crore at higher end of price band. The issue will close on November 27, 2007.
India Infoline report on Jyothy Laboratories IPO
Jyothy Laboratories (JLL) is an FMCG company making a range of branded products, including fabric whiteners, mosquito repellents, dish-washing soaps, soaps and incense. Its key brands are Ujala, Maxo, Exo, Jeeva and Maya.
Investment summary
* Ujala is a well-known brand of fabric whitener, with dominant market share of approximately 72% in the category
* Local presence and wide distribution reach
* Targets the rural market
* Entering into new joint-venture initiatives
Risks and concerns
* Heavily depend on two biggest brands, Ujala and Maxo which contribute 43.6% and 35.4% of its total sales respectively (as on 30 June 2007).
* Dependence on outsourced production through third parties. Any disputes or disagreements may affect their business.
* The company is susceptible to seasonal variations in demand for its products.
Valuations attractive in comparison to the peer group
At the issue price of Rs 620-690, JLL commands an inexpensive P/E (on relative basis) of 18.6x-20.7x based on FY07 EPS of Rs 33.3. The price/book ratio of 3.4x at Rs 690 is also at steep discount to peers. The company is well-placed for healthy growth, given its well-established brand equity, leadership in the fabric whitener segment and strategic alliances. We recommend to Subscribe in the issue.
Source: Moneycontrol.com
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