Posts Tagged ‘initial public offer’


PNC Infratech files DRHP, to raise Rs 175 cr via IPO

Delhi based engineering and infrastructure company, PNC Infratech is planning to raise Rs 175 crore (excluding issue related expenses) via initial public offering (IPO).The company refiled a draft red herring prospectus (DRHP) with SEBI after its initial filing on January 17, 2008 .The company intends to utilize the issue proceeds for investment in capital equipment; working capital requirements and prepayment/repayment of loans & advances.

Kumar Urban Development to raise Rs 450cr via IPO

Pune-based real estate firm Kumar Urban Development Ltd plans to raise Rs 450 Cr through an initial public offering (IPO) to retire high cost debts and for new projects. According to the Chairman and Managing Director Lalit Kumar Jain about Rs 200 Cr. would be used to retire high cost debt, while the rest would be for new development and existing projects.

Den Networks to list on Nov 24, issue price at Rs 195/sh

Den Networks, a cable distribution entity with a pan-Indian footprint, will list its equity shares on the exchanges on November 24, 2009 (Tuesday). It has fixed its issue price at Rs 195 per share. The company had entered the capital market on October 28, 2009, with an initial public offering (IPO) of up to 2 crore equity shares and the price band was at Rs 195-205/share. The IPO Proceeds will partly fund the company’s plans to invest in the development of cable television infrastructure and services; the development of cable broadband infrastructure and services; and acquisition of content and broadcasting rights amongst others.

Companies may have to list within 7 days of IPO’s

The Securities and Exchange Board of India (SEBI) plans to reduce the time taken to process initial public offers (IPO) applications to seven days from the existing 20 days. Further, the capital market regulator intends to extend the Application Supported by Blocked Amount (ASBA) system to non-retail investor categories, to reduce the overall time for the IPO process. In ASBA, an IPO applicant’s money does not leave his bank account till shares are allotted to him. At present, this facility is available only to retail investors.

Ashoka Buildcon plans IPO to raise Rs 225-cr

Ashoka Buildcon Ltd, the flagship company of the Ashoka Group, which operates many roads and bridges in India on build, operate and transfer basis (BOT), plans to raise Rs 225 crore through an Initial Public Offer (IPO). The amount raised from the IPO will be used to repay debt and to meet working capital requirements. The company has so far built a road network totaling approximately 2,523 kilometers of lanes in the country. The company also has 13 ready-mix concrete plants which have a capacity of 590 cubic meters per hour.

SEBI Asked BSE to Set its House in Order before Planning a Listing !!

Sebi has asked BSE to set its house in order before planning a listing :)

Sebi has asked BSE to set its house in order before planning a listing 🙂

The Securities and Exchange Board of India (Sebi) asked BSE to set its house in order before planning a listing.

Of late, BSE has planned to list on the exchange for sometime and had approached Sebi for permission to list without an initial public offer.


Sebi, however, also has to formalize norms for regulating self-listed companies while in order to sell their shares, some BSE members were eager on the listing of the exchange.


Moreover, the market regulator communicated its position to the stock exchange informally and BSE started steps to develop its technology platform.

In addition, BSE acquired Marketplace Technology (MT) in order to offer back-office solutions for brokers estimated at Rs 43 crore.

On the other hand, BSE, over the years has regularly lost out to NSE on the technology front and new players like Financial Technologies are trying to ride the technology path setting up exchanges such as Multi-Commodity Exchange (MCX) and MCX Stock Exchange.


Further, BSE has lost the top slot in terms of turnover even though it has more companies listed on it .

It will also be re-launching its derivatives trading and a new marketing campaign which is likely to help it popularize the product.

The move comes at a time when others such as MCX-SX are trying to enter the space.


Did IPO Grading Fail to Catch the Fancy of Investors??

ipo grade system

The grading system of initial public offers (IPO) is in need of an upgrade, say market participants.


Two years after it was first introduced by market regulator SEBI, the system has failed to catch the fancy of investors as share price trends of newly listed companies have shown little or no correlation to the grading given by rating agencies.


“IPOs with grading 4 have shown returns that are much lower than IPOs with grades 1 and 2.
So, this is raising the question whether it is time to look at amendments to the existing structure or maybe SEBI can think of completely scrapping the system,” said Jagannadham T, equity head of SMC Capitals.


However, one can’t deny the importance of the IPO grading system not only is it beneficial for retail investors who don’t have the time or skills to go through an entire prospectus but it also acts as a deterrent for fly by night promoters who wish to access the primary market solely for their gains.


Not only financials of a company is looked at but also people at the business head level are contacted to see what the company is up to.


As per few experts, IPO grading doesn’t have anything to do with the price post listing. A lot of things apart from fundamentals drive the stock.

The reservation of comment on pricing is a sore point, but even more, is the grading of a SEBI barred company like Austral Coke at Grade 2 by CARE above Orbit Corporation at 1 by the same rating agency.

:O 😦

And this makes one wonder if a thorough due diligence is done by all rating agencies that’s ground enough for a review.


NHPC IPO subscribed over 16 times :)


The issue received bids for over 2,762.99 crore shares against 167.73 crore shares on offer, as per the data available on the National Stock Exchange.


The initial public offer of hydro power producer NHPC got subscribed over 16 times with most of the bids coming in from institutional investors.


The offer, which is expected to mobilize up to Rs6,000 crore making it the second largest IPO in the country till date after Reliance Power’s, will close on Wednesday.


Marketmen said the portion reserved for qualified institutional investors and high networth individuals got subscribed nearly 20 times each, while the retail investors portion was subscribed over three times the shares on offer.


“The subscription by institutional investors is likely to go up further and the retail participation would also increase towards the end of bid timing,” SMC Capitals equity head Jagannadham Thunuguntla said.


Analysts said being a public sector firm, NHPC is getting attention from various categories of investors.


This is the first stake sale by a state-run company in the last one and a half years, after REC raised over Rs 1,600 crore in February.


The  of the issue has been fixed between Rs 30 -36.