Subscribe to Religare Enterprises Public Issue
Monday, October 29, 2007
Religare enterprises Ltd is promoted promoted by Mr. Shivinder Singh and Mr. Malvinder Singh of the Ranbaxy Group. It is a financial services company offering financial products to retail, HNI, corporate and institutional clients.REL's business is divided into 3 broad spectrums - Retail, Wealth and Institutional. A pan India presence - 1,217 business locations, 392 towns - give it advantage to scale up operations, explore new distribution opportunities and increase client reach. In order to support its increased network REL has aggressively ramped up employee strength from 4,500 in FY07 to 6,500 currently.
The company plans to be in every business where Reliance Capital and ultimately wants to compete with ADAG group. Religare has been profitable and is expected to report a PAT of Rs 98 crore for FY08. Fully diluted EPS [Post-IPO] for FY08 is expected to be around Rs 12.80. At 14.4x FY08 earnings and 2.2x its book value of Rs 83.8, the issue is priced moderately.
The company has done preferential allotment to institutional investors at Rs 160 / share in Jan and Oct-2007. So investing at Rs 185 is not a bad option. Apply only if you are lucky because allotment will be by Lottery.
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Published by DalalStreet Business @ 7:21 PM IST.
Edelweiss Capital - 4/5 Rating from CRISIL
Tuesday, October 23, 2007
India's leading credit rating agency, CRISIL has assigned a CRISIL IPO Grade "4/5" (pronounced 'four on five') to the proposed initial public offer of Edelweiss Capital Ltd. This grade indicates that the fundamentals of the issue are above average, relative to other listed equity securities in India.Proposed public issue of 8,386,147 equity shares of face value Rs 5 at a targeted price of Rs **** per share [Amount to be decided by Book Building, price Discovery]
For the year ended March 2007, the ECL's consolidated total income and net profits were Rs 3,712.53 million and Rs 1,090.08 million, respectively. Stay Tuned for the Complete in-depth analysis of this IPO.
Maytas Infra Limited IPO listing will be on Thursday, the 25th of October 2007.
Issue Price : Rs 370/- Per Equity Share
Face Value : Rs 10/- Per Equity Share
BSE Script Code: 532907
NSE Symbol: MAYTASINFR
Grey Market premium Rs 100+
Labels: Maytas-Infra-Listing
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Published by DalalStreet Business @ 6:11 AM IST.
Supreme Infra Lists with 70% premium
Thursday, October 18, 2007
Supreme Infrastructure India, an infrastructure development company primarily engaged in civil construction activities, has listed at Rs 187.50, a premium of 73.61% premium over its offer price of Rs 108 on the NSE.
You can now check the allotment status of Maytas Infra IPO.
You can also read about the Reliance Power IPO ir-regularities by promoter family, Anil Ambani.
Labels: Maytas-Infra-Allotment
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Published by DalalStreet Business @ 12:51 PM IST.
Forthcoming IPOs in India
Monday, October 08, 2007
With the primary market extremely vibrant and encouraging, 100s of companies have lined up in front of the SEBI for approval to raise money.Some of the forthcoming big ticket IPOs include Afcons Infrastructure, Emmar MGF Land Ltd, BGR Energy Systems, Edelweiss Capital Ltd, Essel Shyam Telecommunications, IRB Infrastructure, Kolte Patil Developers, MCX India - Multi Commodity Exchange, Mudra Port SEZ, National Hydro Electric Power Corporation, Reliance Power Ltd, Rural Electrification Corporation and SRS Entertainment Ltd. You can download the entire list [PDF].
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Published by DalalStreet Business @ 3:48 PM IST.
Most Powerful Debut for Power Grid
Friday, October 05, 2007
Power Grid India which created history for generating the highest demand during its IPO in the history of Indian Capital market had a very electrifying debut on the bourses today. The stock listed at a premium of 70% and is currently traded at Rs 106 or up by 104%.Power Grid Corporation of India owns and operates most of India's interstate and inter-regional electric power transmission system. In that capacity, as at June 30, 2007 the company owned and operated 61,875 circuit kilometres of electrical transmission lines and 106 electrical substations. In fiscal 2007, it transmitted approximately 298 billion units of electricity, representing approximately 45% of all the power generated in India.
Congratulations to all the retail investors. The Power sector has been re-rated along with Energy stocks. Book Partial profits and hold this stock for Long Term.
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Published by DalalStreet Business @ 12:03 PM IST.
SEBI considering Dutch Auction for IPO
Thursday, October 04, 2007
Our IPO analyst has learnt that SEBI has recommended a Dutch Auction process for IPOs. Google went IPO in this route. The move is to discourage small investors to make a profit on listing.
The government had discussed the proposal with SEBI after which the panel was entrusted with the task. According to one model being considered by the committee, qualified institutional buyers will be told to bid for shares in an open auction. The lowest bid will then become the fixed price for retail investors.
Generally, in an open auction, investors are asked to indicate the price and number of shares they wish to buy. The issuer then allocates certain shares in a descending order of prices till the amount of shares to be issued is exhausted. The lowest bid price is accepted as the deemed price and all investors pay this price. In case of oversubscription, allocation is done on a pro-rata basis.
Consider a situation where a company wants to sell one million shares. The underwriters rank the demand for shares in descending order of prices till one million shares are reached. If the total demand is for two million shares, then the highest price bids adding up to one million shares is considered. The lowest price becomes the price at which shares will be allocated.
Open auction has become the preferred way to discover the price in Japan and France, among other countries. In the US, the concept was pioneered by venture capitalist Bill Hambrecht and was used in the Google IPO, although the concept is yet to gain popularity in that country.
The government's move to look at alternatives to book-building method for price discovery comes against the backdrop of an increase in pre-IPO share placements. In last few years, most companies hitting the capital market have opted for a private placement just ahead of the IPO. In most such deals, while institutional investors managed to bag shares at a lower price, retail investors, who bought shares through the IPO, had to pay a higher price.
Also, there is a strong view that book-building, which was introduced in India in 1999 as an alternative to fixed prices, did not lead to any real price discovery, since a price band is already prescribed. Experts feel underpricing is rampant, as the listing price in case of most IPOs is much higher than the issue price.
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Published by DalalStreet Business @ 11:49 AM IST.