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IPO, New Issues
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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
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Tracked by: 755 Boarders
hi ramesh how are u doing???? sensex ka to bura hal hua hua hai.... good that u are not trading... their is so much uncertainity....seems like the markets are in no hurry to start its up move....
In reply to:
Its time to prepare shopping list guys !
Posted by :
ultima23
hi renu,
LTNS! How is your trading now a days??
I have not traded at all. Its only getting worse. Seems like sensex will touch 12k today. 
Tracked by: 755 Boarders
hi renu,
LTNS! How is your trading now a days??
I have not traded at all. Its only getting worse. Seems like sensex will touch 12k today. ...
In reply to:
Its time to prepare shopping list guys !
Posted by : REJIPETER
hi dalip, browsing in our office is almost banned.. so not able to come on MMB.. Infact as i had declared earlier my porfolio is almost zero .. i am investing in real estate for now. ofcourse FDs are also good in current mkt scenario..
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The department of disinvestment in the finance ministry is watching developments in the Indian stock market closely and may decide to defer the initial public offers of state-run power generation firm NHPC Ltd and the country’s second-largest oil explorer Oil India if the volatility continues.
Disinvestment had come back on the government’s agenda after the four Left parties, which had staunchly opposed it, withdrew support to the United Progressive Alliance (UPA) in July over the Indo-US civil nuclear deal.
“The government, and the companies concerned have time till early November to take a final call on the public issues. It is too early at this stage to say anything more than that,” a senior finance ministry official said today.
“The government and the companies may rethink the timeline of the IPO plan if the stock market does not stabilise,” the official said, adding that it will be difficult to get a good price in an unstable market.
The stock market volatility has already seen Rites, the Indian Railways consultancy arm, defer its IPO to early next year from this November.
Under the government’s proposed share sale programme of state-owned firms, the NHPC and Oil India issues are slated for early November. The government proposes to piggyback the issues and divest 5 per cent in NHPC and 10 per cent in Oil India.
The sales were expected to raise around Rs 2,000 crore, money that would go to the National Investment Fund, that has been set up by the UPA government to park PSU sale proceeds.
The latest round of trouble in global financial markets has impacted the Indian stock market. Experts say the worst is not over yet and believe that valuations would be further hit. Since January this year, the Sensex has lost 6,500 points, falling from an all time high of over 21,000.
Both companies have filed the draft red herring prospectus with the market regulator Sebi for approval of public issues. The issues are likely to be approved by the month end, the official added.
Once that happens, the companies in consultation with managers to the issue will fix the price band for allotment under the book-built issue.
BS.............................................
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Gujarat State Petro Official Says Plans Ipo In Nov-Jan To Raise About $1 Bln...
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hi ankur, how are u doing???? i had offloaded some shares at good profit in the last couple of weeks (at ur reco.) and now sitting in cash..is it time to start buying or shd wait for some more time.... i bought some relcap and unitech. u think the market will have a short rally before it again heads down. pls give ur inputs. thanks bhavna...
In reply to:
Its time to prepare shopping list guys !
Posted by : librankur
Dear Guest,
Yes, people are preferring not to be part of this thread.
Lovely email by you, i have replied to the same.
Great days for shopping ahead, keep your guard up.
:-)
Tracked by: 0 Boarder
Great insight into the market. Mr. Tulsian\\\\`s feelings about resurgere have really come about with stock closing at lower circuit at178.90 and stilllooking down... He clearly indicated that the stock does not deserve valuation of more than Rs. 200.00 on the day when the stock surged over 100% with a volume of 23 mn. shares soon after listing.
I am looking forward to his analysis for all IPOsin future... good going Mr. Tulsian.....
In reply to:
See sharp fall in Resurgere Mines in 2-3 weeks: Tulsian
Posted by : MMB Messenger
SP Tulsian of sptulsian.com feels the huge run up in Resurgere Mines is due to momentum or operator play. He feels prices won’t sustain and expects a sharp fall in prices in 2-3 weeks.
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Great insight into the market. Mr. Tulsian\\\\`s feelings about resurgere have really come about with stock closing at lower circuit at178.90 and stilllooking down... He clearly indicated that the stock does not deserve valuation of more than Rs. 200.00 on the day when the stock surged over 100% with a volume of 23 mn. shares soon after listing.
I am looking forward to his analysis for all IPOsin future... good going Mr. Tulsian.....
In reply to:
See sharp fall in Resurgere Mines in 2-3 weeks: Tulsian
Posted by : MMB Messenger
SP Tulsian of sptulsian.com feels the huge run up in Resurgere Mines is due to momentum or operator play. He feels prices won’t sustain and expects a sharp fall in prices in 2-3 weeks.
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SP Tulsian of sptulsian.com feels the huge run up in Resurgere Mines is due to momentum or operator play. He feels prices won’t sustain and expects a sharp fall in prices in 2-3 weeks.
...
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Hi Ankur,
What do u suggest can be bought at this level for medium to long term?
Thanks,
Vishal...
In reply to:
Its time to prepare shopping list guys !
Posted by : librankur
Dear Guest,
Yes, people are preferring not to be part of this thread.
Lovely email by you, i have replied to the same.
Great days for shopping ahead, keep your guard up.
:-)
Tracked by: 755 Boarders
Ritesh bhai, Now the price of TELCO is coming near to rights price!!
...
In reply to:
Its time to prepare shopping list guys !
Posted by : Ritesh_kg
Nice to hear that u r also interested for TELCO .. right now i m hving 100 (Avr. Price is 515) :-)
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Ahmedabad, Sep 15 (PTI) IPO Investors from 18 districts of Gujarat can now avail the advantage of Application Supported by Blocked Amount(ASBA) facility from today, thereby ensuring transfer of funds from the bank account only on allotment of shares in public issue.
"Five banks namely-IDBI, Axis Bank, State Bank of Bikaner and Jaipur, Bank of Baroda and Kotak Mahindra Bank- having branches in Gujarat will become eligible to act as self certified syndicate banks (SCSB) from September 15 for the purpose of ASBA. Post a mock trial run of their systems with stock exchange and registrar." order of Securities and Exchange Board of India (SEBI), said.
SEBI had introduced a new mode of payment for retail individuals investors in public issue vide its July 30 and August 29 circulars, where in the application money remains in the bank account of the investor till the allotment in public issue.
During the launch of first public issue on September 9 covered under ASBA, just five lead banks offered the facility for transfer of money only on allotment of shares in the public issue, out of the total 57 banks registered with SEBI as bankers to public issues.
Out of which three banks -HDFC, SBI and ICICI- were the first ones to offer this facility to investors of the state in some cities.
Now another five banks covering 18 prominent districts of Gujarat inlcuding Ahmedabad, Gandhinagar, Jamnagar, Rajkot, Surat, Kutch and Vadodra are scheduled to become eligible as SCSB for the purpose of ASBA from September 15, taking the total number of banks offering this new facility to 10.
OutLooK................
Tracked by: 755 Boarders
Dear Guest,
Yes, people are preferring not to be part of this thread.
Lovely email by you, i have replied to the same.
Great days for shopping ahead, keep your guard up.
:-)...
In reply to:
Its time to prepare shopping list guys !
Posted by : Guest
ankurji......... many thanks for your reply .........not many people on this board these days........ i have sent you an email kindly reply..........you talk long term and also act in the same way.............cheers
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Investors in IPOs lost over Rs 5,000 cr in 2008 so far------------------------------New Delhi: Primary market investors have lost more than Rs5,000 crore with shares of most of companies, which came out with initial public issue since January, trading at a discount.
“Out of 34 IPOs issued this calendar year, 26 of them closed below their issue price last week. These IPOs have raised Rs16,920 crore but the current value stands at Rs11,562 crore. So they are suffering a loss of 31.67%,” said Jagannadham Thunuguntla, Equity Head, NEXGEN Capitals Limited.
He said five companies which include JSW Energy, RNS Infrastructure, Ybrant Technologies, Elysium Pharma and Kamayani Patients Care, with the proposed issue of more than Rs 4,000 crore, withdrew their IPOs prior to Sebi approval.
In 2008, 20 companies did not tap the primary market despite approval from Sebi due to uncertainty in the markets.
Shares of eight out of ten companies which got listed on stock markets during second quarter of the current fiscal (July-September) following the IPO are trading below the issue price.
According to NSE data, the shares of only Vishal Information Technologies and Austral Coke and Projects are at 100% and 30% premium respectively, while the equity of remaining companies are being traded at discount.
The shares of companies (listed during second quarter) which are trading below the issue prices include Resurgere Mines and Minerals, Nu Tek India, Birla Cotsyn India, KSK Energy, Lotus Eye Care, First Winner Industries, Archidply Industries and Sejal Architectural Glass.
Vishal Information Technologies closed at Rs306 week, an over 100% premium to its issue price of Rs150. It was listed on 11 August with the issue size of 27.9 lakh shares on the NSE at a discount of 13.33%. The company is a IT-enabled services and solutions firm and its IPO received subscription by 1.2 times.
Similarly, Austral Coke and Projects Limited (IPO subscribed by 1.65 times on the whole), was listed on 4 September with a 5% premium to its issue price of Rs196. While, the scrip settled with a premium of 30% at Rs252 on the NSE last week.
Analysts believe that these two IPOs were listed underpriced as the markets were in the bear grip since the beginning of the calendar year 2008. So after their listing, price appreciation was witnessed in these stocks. But stock speculation cannot be completely denied.
“These IPOs were offered at lower prices. So, they have managed to gain the investors’ confidence as they are available at attractive valuations. But the possibility of stock manipulation cannot be ruled out,” said Prithvi Haldea, Managing Director of Prime Database.
PTI................
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Yes sure.
santosh gawade...
In reply to:
10% of 20 Microns IPO subscription through ASBA process
Posted by : MMB Messenger
Close to 10 per cent of the retail applications received in the initial public offering of 20 Microns were received through the Applications Supported by Block Amount (ASBA) process, reports The Hindu Business Line.
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