Indiabulls Power lists at Rs.45 and then loses 16% in early trade

Indiabulls Power listed at Rs 45.05 on the NSE today, near its issue price of Rs 45. However, the share fell sharply and at 9.56 am, it was trading at Rs 37.70, at a huge discount of 16.22% to its issue price.

The share touched an intraday high of Rs 45.05 and an intraday low of Rs 35.35 in the early trade. The total traded quantity was 1,54,44,101 shares and turnover was at Rs 5,895.01 lakh.

On the BSE, the share opened at Rs 44.95, around its issue price. It touched an intraday high of Rs 45.50 and intraday low of Rs 35.

The issue had opened for subcription during October 12-15 with 39.07 crore equity shares shares, including a green shoe option of retaining 5.09 crore equity shares.

It received an overwhelming response from investors, especially QIBs (qualified institutional investors) and was subscribed 21.84 times.

Indiabulls Power intends to use the IPO proceeds to part finance the construction and development of the 1,320 MW Amravati Power Project Phase-I, fund equity contribution in the company?s wholly owned subsidiary, IRL to part finance the construction and development of the 1,335 MW Nashik Power Project, apart from general corporate purposes.

Den Networks IPO opens for Subscription

The initial public offering (IPO) of Den Networks has opened for subscription today. The issue is of up to 20,000,000 equity shares of Rs 10 each. The issue will close on October 30, 2009. The company has fixed price band between Rs 195-205/share.

The issue comprises a net issue to the public of up to 19,750,000 equity shares and a reservation of up to 250,000 equity shares for subscription by eligible employees. The issue would constitute up to 15.16% of the post-issue paid-up equity share capital of the company. The net issue would constitute 14.97% of the post-issue paid-up equity share capital of the Company.

At least 60% of the net issue will be allocated on a proportionate basis to qualified institutional buyers (QIB). The company may allocate up to 30% of the QIB Portion, to anchor investors on a discretionary basis. Further 5% of the QIB portion less anchor investor portion shall be available for allocation on a proportionate basis to mutual funds only.

Also, not less than 10% of the net issue will be available for allocation on a proportionate basis to non-institutional bidders and not less than 30% of the net issue will be available for allocation on a proportionate basis to retail individual bidders, subject to valid bids being received at or above the issue price.

Promoted by Mr Sameer Manchanda and Lucid Systems Private Limited, Den Networks is one of the largest national cable television companies in India engaged in the distribution of analog and digital cable television services (Source: MPA Report 2009). Since incorporation in July 2007, it has expanded analog cable services to 77 cities across India.

It currently provides cable television services in the National Capital Region of Delhi and the states of Uttar Pradesh, Rajasthan, Maharashtra, Gujarat, Karnataka, Haryana, Madhya Pradesh and Kerala. It has obtained an all-India ISP license and has recently commenced a limited roll out of broadband internet services in select areas, which it intends to expand in all the other cities where it operates.

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.

The equity shares offered through the RHP of the Company are proposed to be listed on Bombay Stock Exchange and National Stock Exchange of India.

The global coordinator and book running lead manager for the issue is Deutsche Equities India Private Limited. The co-book running lead manager for the issue is Antique Capital Markets Private Limited. Karvy Computershare Pvt Ltd is the registrar.

For the year ended March 31, 2009, it has reported loss of Rs 13.8 crore and total income of 271.11 crore.

Thinksoft Global lists at Rs 126 on the NSE

Thinksoft Global Services listed at Rs 126 on the NSE today, at a marginal premium of 0.8% to its issue price of Rs 125 a share. However, the stock gained momentum and at 9.56 am, the share was trading at Rs 133, at a premium of 6.40% to its issue price.

The share touched an intraday high of Rs 134.80 and an intraday low of Rs 126 in the early trade. The total traded quantity was 6,06,972 shares and turnover was at Rs 796.53 lakh.

On the BSE, the share opened at Rs 100, at a discount of 20% to its issue price. It touched an intraday high of Rs 136.80 and intraday low of Rs 100.

The issue was of 36,46,000 equity shares and was subscribed 2.57 times. (Read the IPO Subscription details here) The issue was scheduled to close on September 24 but was extended due to lukewarm response from investors.

The company had also reduced its IPO price band to Rs 115-125 from Rs 120-130 per share. The issue had opened for subscription on September 22, 2009 and closed on October 1.

The IPO consisted a fresh issue of 13.5 lakh shares and an offer for sale of 22.96 lakh shares by Gibraltar-based fund, Euro Indo Investments.

Karvy Investor Services was the book running lead manager to the issue.

Why Should I buy Gold?

All of us find reasons before making any kind of investments. A couple of days ago, I was in the same dilemma and I was asking myself the reasons why I should buy Gold. Here, I am listing a few of them that I had in my mind to justify my thought of investing in gold and also, while browsing on the internet, I came across some interesting reasons behind why at all should one invest in gold. However, let me warn you that I do not have any trading interest in gold, but do have an investment interest in a company called Deccan Gold which is the only gold company listed in India. Here are the reasons:
1. According to experts, the total world gold production is decreasing. I was surprised ? increasing selling prices make it attractive to search so production should increase. This is what happens in theory, but it is getting to be more difficult to prospect, mine and produce gold.

2. The gestation period even for gold which is spotted is quite long. According to some experts it is as high as 10 years. Hence gold mining companies? prices go up over long periods and in a lumpy kind of a fashion. If gold is found it goes up, if mining starts prices go up, if production starts ? prices go up. So be careful while buying a gold mining company.

3. Chinese demand is likely to go through the roof. Very few people understand the Chinese economy. If the population does not trust its currency, they are likely to keep their money in gold! The Chinese government had banned the population from owning gold for a very long time. Obviously once the ban gets lifted buying will start (it happened in US if you remember). It may take 2-4 years by which time the retail network to sell gold to the whole Chinese population is set up. Once it is set up, prices will boom.
4. Indian demand is difficult to predict. However, there is some talk of Jewelers suicide in Kerala (with prices rising, consumption is going down, so shopkeepers are dying). However, there is a huge ?wannabe? population which will keep buying and chase prices! Be that as it may, selling may not be enough to exceed demand ? another cause for prices to go up.

5. Investment demand is high: All fresh bankers are busy selling gold mutual funds. This is a funny situation where the price is going up because the fund is buying. People are buying gold ETF/regular funds which is causing gold prices to go up! Case of tiger chasing its tail.

6. Governments attitude towards gold can be foolish and slow. The rich countries which have a lot of gold (including IMF) have a pact wherein they will not sell more than 400 Tonnes a year (not sure about the figure). This will restrict supply on the one hand, but mutual fund demand will drive the prices.

7. Bank relationship managers are pushing gold mutual funds, websites are screaming that gold is a good buy, people without understanding of interest, compounding, etc. think this is a great ideal This almost blind and noisy screaming will push prices high. Most fund managers are buying with a vengeance!

So, what is your view on investing in Gold? Your feedback is always appreciated. Do give your views in the Comments Section below.

Pipavav Shipyard lists at Rs 61.10 on the NSE

Pipavav Shipyard listed at Rs 61.10 on the NSE today, at a premium of 5.34% to its issue price of Rs 58 a share. At 9.56 am, the share was trading at Rs 60.30.

The share touched an intraday high of Rs 61.10 and an intraday low of Rs 59.90 in the early trade. The total traded quantity was 539611 shares and turnover was at Rs 324.9 lakh.

On the BSE, the share opened at Rs 60.05, at a premium of 3.53% to its issue price. It touched an intraday high of Rs 64.70 and intraday low of Rs 58.80.

The IPO was subscribed almost 9 times. The company raised over Rs 495 crore with the issue of over 85.45 million equity shares of Rs 10 each. The company intends to use the IPO proceeds for Construction of facilities for shipbuilding, ship repair and the Offshore Business among other things.

The company enjoys a strong order book position of 34 ships ? 22 Panamax size huge dry bulk carriers for 3 European shipping companies and 12 OSVs for ONGC. It has also bid for 7 naval vessels.

Pipavav Shipyard intends to utilize its shipbuilding facilities to repair a wide range of vessels, including VLCCs and OSVs, and other specialty vessels such as LNG carriers.

Its dry dock, measuring 662 meters in length and 65 meters in width, is capable of accommodating ships of up to 400,000 DWT and/or multiple combinations of smaller vessels including vessels catering to offshore activities such as offshore supply vessels (OSV), anchor handling tug supply vessels and multi-purpose support vessels. Installation of two Goliath cranes, each having a lifting capacity of up to 600 tonnes, is also in progress.

Pipavav Shipyard issue priced at Rs 58/sh; listing on Oct 9

India?s largest dockyard Pipavav Shipyard will list its equity shares issued via public issue on October 9, 2009. It has fixed its issue price at Rs 58.

The IPO was subscribed almost 9 times. Building India?s largest dry dock and world class multi-sector fabrication facility, Pipavav Shipyard hit the capital market on September 16 and closed on September 18.

The company raised over Rs 495 crore with the issue of over 85.45 million equity shares of Rs 10 each and the issue came with a price band of Rs 55-Rs 60. The company intends to use the IPO proceeds for Construction of facilities for shipbuilding, ship repair and the Offshore Business among other things.

The company enjoys a strong order book position of 34 ships ? 22 Panamax size huge dry bulk carriers for 3 European shipping companies and 12 OSVs for ONGC. It has also bid for 7 naval vessels.

Pipavav Shipyard intends to utilize its shipbuilding facilities to repair a wide range of vessels, including VLCCs and OSVs, and other specialty vessels such as LNG carriers.

Its dry dock, measuring 662 meters in length and 65 meters in width, is capable of accommodating ships of up to 400,000 DWT and/or multiple combinations of smaller vessels including vessels catering to offshore activities such as offshore supply vessels (OSV), anchor handling tug supply vessels and multi-purpose support vessels. Installation of two Goliath cranes, each having a lifting capacity of up to 600 tonnes, is also in progress.

RIL Rewards 1:1 bonus to Shareholders

Mukesh Ambani group firm Reliance Industries on Wednesday said it will issue one bonus share for every share held in the company.

The board of directors of the company at its meeting held today, recommended issuance of bonus shares in the ratio of one equity share of Rs 10 each for each share held, RIL said in a filing to the Bombay Stock Exchange.

The issue of bonus shares is subject to the shareholders' approval, it added. The board has also declared a dividend of Rs 13 per fully paid-up equity share of Rs 10 of the company to the shareholders, the company said.

We had committed to reward our shareholders on successful completion of our two world-class projects. I am really delighted to share with you the excitement we all have in flawless execution of the upstream project which has been recognised globally as a defining accomplishment, said RIL's chairman, Mukesh Ambani.

Our refinery project has also set new benchmarks and made Reliance the operator of the largest refinery site anywhere in the world. These are achievements that we should all have pride in and are milestones in our journey of creating value for our shareholders, he added.

Big surprise
Investors' darling Reliance announced issue of bonus shares after a 12 year-hiatus, a move that analysts expect would flare up the markets on the eve of Diwali.

The company founded by Dhirubhai Ambani, credited for drawing retail investors to stock markets in the 1970s, recommended an issue of one bonus share for every share held by shareholders and would help unlock value.

Analysts said that the surprise announcement of a bonus issue by RIL, will definitely act as trigger for the market.

Thinksoft Global IPO subscribed 2.57 times

The initial public offering (IPO) of Thinksoft Global Services was subscribed 2.57 times as per the NSE website. The issue received total bids for 93,70,900 shares against its issue size of 36,46,000. The issue was scheduled to close on September 24 but was extended due to lukewarm response from investors. The company had also reduced its IPO price band to Rs 115-125 from Rs 120-130 per share.

Read Full Article Here: Thinksoft IPO Price band reduced

The issue had opened for subscription on September 22, 2009.

The IPO consisted a fresh issue of 13.5 lakh shares and an offer for sale of 22.96 lakh shares by Gibraltar-based fund, Euro Indo Investments.

Karvy Investor Services was the book running lead manager to the issue.

Indiabulls Power IPO to open on Oct 12

According to the sources, the initial public offering (IPO) of Indiabulls Power, a subsidiary of Indiabulls Realty will open for subscription on October 12, 2009 and will close on October 15, 2009.

From this issue, the company is expected to raise around Rs 2,000 crore.

The proceeds of the issue will be used to part finance the construction and development of the 1,320 MW Amravati Power Project Phase ? I (Rs 775 crore from the issue) and for funding equity contribution in the company?s wholly owned subsidiary, IRL, to part finance the construction and development of the 1,335 MW Nashik Power Project (Rs 660 crore from the issue).

Read: Indiabulls Power prices pre-IPO placement around Rs 44/sh

Indiabulls Power will offer 33.98 crore equity shares via this IPO. There will also be a green shoe option of up to 50,900,000 equity shares, which will take the issue size to 39.07 crore shares. Before the green shoe option, the issue will constitute 16.98% of the fully diluted post issue paid-up capital of the company and post the green shoe option - 19.06%.

The company has five thermal power projects under development, which will have a combined installed capacity of 6,615 MW. The Projects include -:

1 - Amravati Phase I Power Project will have two super-critical units of 660 MW each, with combined capacity of 1,320 MW.

2 - Nashik Power Project will consist of five units of 135 MW each and two units of 330 MW each, with a combined capacity of 1,335 MW.

3 - Bhaiyathan Power Project will have two super-critical units of 660 MW each, with combined capacity of 1,320 MW.

4 - Amravati Phase II Power Project will have two super-critical units of 660 MW each, with combined capacity of 1,320 MW.

5 - Chhattisgarh Power Project is expected to have two super-critical units of 660 MW each, with combined capacity of 1,320 MW.

Apart from these projects, the Company is developing four medium sized hydro-power projects of 60 MW, 30 MW, 46 MW and 31 MW in Arunachal Pradesh.

For the year ended March 31, 2009, it has reported profit of Rs 82.96 crore on total income of Rs 141.34 crore on the consolidated basis.

Morgan Stanley India Company Pvt Ltd is the book running lead manager and Karvy Computershare Pvt Ltd is the registrar to the issue.

Glenmark to raise Rs 575cr: Sources

Glenmark Generics filed a draft red herring prospectus (DRHP) yesterday, according to the sources. Glenmark Pharma would raise Rs 575 crore via Glenmark Generics initial public offer (IPO). The issue values Glenmark Generics at Rs 5,000 crore.

This is sourced based information and we get to hear that, the company will raise Rs 575 crore through the IPO in Glenmark Generics. This values Glenmark Generics at about USD 1 billion or Rs 5,000 crore, the equity dilution in Glenmark Pharma is expected to be between 10-15%.

Glenmark Generics had sales of about Rs 985 crore in financial year 2009 and 70% of that business came from the US geography and other 20% from API part of the business. In terms of how the structure is going to look like is that Glenmark Generics will be having its generic business which is having main presence in the US and the other business which is a specialty business of R&D and branded generics will remain with erstwhile Glenmark Pharma. So, this is how the whole structure is and Rs 575 crore is what they are planning to raise from Glenmark Generics IPO.

Source: Moneycontrol

Bharti-MTN deal failed :: The Inside Story

According to the sources, the fate of the unsuccessful Bharti-MTN deal was sealed by the South African government?s treasury as much as three weeks back. The treasury wrote to MTN Phuthuma Nhleko on September 11 insisting that for the deal to go through, the potential merged company should remain domiciled in South Africa and should be listed in both companies, something that was not a possibility under existing Indian laws.

MTN, South Africa?s largest telecom company, and India?s Bharti were exploring a deal that could lead to a merger between the two companies resulting in a USD 23 billion entity. This was the second failed attempt between the two companies to strike a deal. Earlier in May 2008, the two companies had initiated talks to explore the possibility of a similar deal.

The South African government?s pension fund, Public Investment Corp, holds 21% stake in MTN and the government was under intense pressure to not give a go-ahead to the deal on concerns that MTN?s South African identity, post the deal, would be lost. Members of the treasury had, in fact, travelled to India on September 24 to understand the regulatory and legal framework of Indian laws and deliberate upon hurdles to the deal.

Sources say the treasury had raised the dual listing issue as early as mid August and had made it clear that it would be a no-deal in case India declined the request for an okay to the dual listing structure.

Why India said no to dual listing?
A dual listing structure would have rendered India?s foreign direct investment policy ?infructuous? and would have led to huge tax losses to the government, sources said.

Sources said a dual listed company (DLC) would have weakened the oversight of market regulator Securities and Exchange Board of India (SEBI) as it would not be able to monitor overseas stock exchanges ? MTN is currently listed on the Johannesburg Securities Exchange (JSE).

Not only would have a potential deal carried out under the DLC structure led to an export of capital market, it also had risks of multi-currency settlement infrastructure, sources said.

Source: Moneycontrol.com