Showing posts with label IPO. Show all posts
Showing posts with label IPO. Show all posts

Feb 15, 2008

SBI advice: Stronger domestic players

State-owned financial institutions, which played a key role in bringing sanity back to the markets after the January bloodbath, have now suggested that the government create an alternate investors' group such as pension funds and enhance the capabilities of existing domestic investors like insurance firms and banks.

In a presentation to Parliament's standing committee on finance on February 12, the State Bank of India has suggested that rating agencies that currently rate initial public offers (IPOs) should also give an independent view on the pricing of these IPOs.

The financial behemoth also suggested that the minimum float size should be increased to 25 per cent from 10 per cent currently of enhanced paid up capital in an effort to help curb the volatility.

During the crisis between January 18–23, the three leading financial firms made combined net purchases of Rs 4,521 crore -- Life Insurance Corporation of India (Rs 3,045 crore) SBI (Rs 921 crore) and UTI Mutual Fund (Rs 555 crore).

Admitting that these were trying times in the wake of the global meltdown, the National Stock exchange (NSE) in its presentation argued that the two IPOs of Future Capital Holdings and Reliance Power had created a liquidity crunch in the system. The Rs 491-crore IPO of Future Capital was over subscribed 131 times and Reliance Power’s Rs 10,260 crore IPO was over subscribed by 62 times. As a result, the working capital difficulties faced by brokers and investors could not move funds, resulting in closures of broker terminals, the NSE said.

The Association of National Exchange Member of India said the stock exchange must provide pre-opening and post-closing sessions in their trading systems. “These sessions play an extremely important role in proper price discoveries of the securities,” it added.

Feb 10, 2008

Upcoming IPO- V Guard Industries Ltd

V Guard Industries Ltd.

44/1037, Little Flower Church Road, Kaloor, Cochin, Kerala - 682017
Phone: 2539911, 2530912 Fax: 2539958


Public Issue of 80,00,000 equity shares
of Rs 10 each for cash at a premium of Rs 75 per share.

Issue open

Issue close

18 Feb, 2008

21 Feb, 2008

Issue price (Rs)

Total size (Rs)

85

68.00 Crores

QIB

Non-Institutional

Retail

Employee

38,00,000

11,40,000

26,60,000

4,00,000

Reliance Infratel to mop up Rs 6,000 cr via IPO

Reliance Infratel to mop up Rs 6,000 cr via IPO
February, 2008

Mumbai: Reliance Infratel, the tower subsidiary of Reliance Communications, is mulling to mop up Rs 6,000 crore via an Initial Public Offering (IPO). The company has filed the Draft Red Herring Prospectus with the Securities and Exchange Board of India (SEBI).

The Anil Ambani group company has proposed to offload 10.05 per cent stake to the public, which puts the valuation of the company at around Rs 60,000 crore. The IPO follows that of another group company, Reliance Power, which is to be listed on February 11. According to the DRHP, Reliance Infratel has proposed to offload 8,91,64,100 equity shares of Rs 5 each at a price that will be decided through the book building process. Around 60 per cent of the issue will be allocated to Qualified Institutional Buyers (QIBs), with 5 per cent for mutual funds, and 30 per cent to be allocated on a proportionate basis to retail individual bidders.

Wockhardt Hospitals scraps IPO

Wockhardt Hospitals scraps IPO
February 08, 2008

Wockhardt Hospitals have withdrawn their IPO due to poor response form the investors. The authority of the hospital said that they would refund the IPO money in 15 days.Sources said that the IPO has been withdrawn in the larger interest of investors and will be taken up again at an appropriate time.

Reliance Power IPO under pressure

Reliance Power IPO under pressure
February 09, 2008

Anil Ambani's mega Reliance Power IPO is geared to be listed on Monday and the Emaar MGF IPO withdrawal might cast its shadow on the listing. Though the grey market premium has failed sharply over the past few weeks because of the volatility, analysts still expect it to list at least Rs 150 above the offer price. All eyes are now on Monday when Reliance Power is expected to list around Rs 600 per share as against the IPO offer price of Rs 450 per share. The Grey market premium, which has fallen sharply in the last two weeks, is still ruling between Rs 120 - 140 per share. But if Reliance Power lists below Rs 550, HNIs may have little option to sell as it will barely cover their cost per share, given the high interest charges. Reliance Power's IPO may have been oversubscribed a record 73 times but the one uncanny similarity with Emaar MGF is that both companies are yet to show any real profits.