Posts in category All News
No rise in petrol, diesel prices this time (16-09-2015)
Cabinet nod to negotiable instruments ordinance (16-09-2015)
Hiccups in NDA after BJP’s first list for Bihar polls (16-09-2015)
Bihar polls: Grand alliance’s struggle to project united front (16-09-2015)
Market volatility no bar as IPO rush continues (16-09-2015)
Volatility in the equity market has not deterred companies from raising funds from the primary market. Since the beginning of August, four companies have filed their draft prospectus with Securities and Exchange Board of India (Sebi). Participants expect more activity on the primary market front in the months to come as they believe that the India growth story has not derailed.
Matrimonial.com, Teamlease Services, Alkem Labs and Dr Lal Path Labs have filed draft prospectus and plan to raise over Rs 1,000 crore via IPOs.
“These filings signify the positive view among investors about the long-term prospects of our markets despite the recent turbulence. The filings will stop as and when investors take a bearish view of the Indian markets. Filing draft documents doesn’t essentially mean the IPO is happening immediately. I am sure the companies will wait for the secondary markets to stabilise before actually going for the public issue,” said Prithvi Haldea, chairman, Prime database.
As per Sebi regulations, companies can go for the initial public offering (IPO) anytime within a year from the date of approval for the issue.
“When the markets were bullish, retail investors subscribed to primary issues, which were priced as high as 10-12 times the earnings of the respective companies. But during volatile times, retail investors become cautious. Given that they are crucial for the success of any public issue, companies would be forced to bring some sanity to the pricing. This was already evident in the issues that happened during the last week of August,” said B Madhuprasad, chairman, Keynote Corporate Services.
The impact of the stock market slump in the last week of August was felt on the public issue of Prabhat Dairy — the last company to tap the primary market — as it failed to get fully subscribed in the first three days of the issue. The company had to lower its price band and extend the issue by three days.
During the current calender year, companies have raised nearly Rs 6,000 crore from the primary markets — a three-year high.
Sadbhav Infra ends over 3% higher on market debut (16-09-2015)
Shares of Sadbhav Infrastructure Projects made a positive debut on the stock markets, closing more than 3% higher.
On the listing day, shares of the Ahmedabad-based infrastructure company closed at Rs 106.2 on NSE, up 3.1% from the issue price of Rs 103 per share.
Sadbhav’s shares opened at Rs 110 and touched the high of Rs 112.45 in the first couple of hours of trading. More than 1.6 crore shares of the company changed hands on the BSE and the NSE.
The company at present commands a market valuation of Rs 3,738.87 crore.
Sadbhav Infrastructure had raised Rs 425 crore through the IPO in the first week of September by issuing 2.858 crore shares to the investors. The issue was subscribed nearly 2.2 times despite volatile market conditions.
The company’s shares in grey market quoted R5-15 premium per share on the final day of the IPO. Grey market is a pseudo over the counter market where IPO shares are bought and sold before officially listing on a stock exchange.
The company had raised R210 crore by issuing a little more than 2 crore shares to anchor investors, including Nomura, Morgan Stanley, HDFC Mutual Fund, Tata Mutual Fund,Amansa and Tata AIA Life.
Sadbhav Infrastructure was incorporated in 2007 as a developer and operator for highways, road and related projects on a BOT basis. It owns 10 road BOT projects, six of which are operational & one partially operational while three are expected to be operational starting October 2015 to June 2016.
Yepme raises $75 million (16-09-2015)
Varun 2020 portfolio – 2 strategies (16-09-2015)
Varun reasons for you exiting Syngene please.Whats your take on kaveri after recent downfall n reasons behind it?Why are you liking tat Elxsi.It listed way back in 1991 .why the price rise now?