July 2011 - Indian IPO Blog

Indian IPO Blog

Insights into investing world in India

Thursday, July 21, 2011

L&T Finance Holdings IPO Price Band set

July 21, 2011 0
L&T Finance Holdings IPO Price Band set
L&T Finance Holdings IPO Price Band has been fixed at Rs.51/- to Rs.59/- per equity share. The issue opens for subscription from Wednesday, July 27, 2011

JM Financial Consultants Private Limited, Citigroup Global Markets India Private Limited and HSBC Securities and Capital Markets (India) Private Limited are the joint global co-ordinators as well as Book Running Lead Managers to the Issue. Barclays Securities (India) Private Limited and Credit Suisse Securities (India) Private Limited too are book running lead managers. Equirus Capital Private Limited is the co-book running lead manager

L&T Finance Holdings is a subsidiary of engineering and construction giant Larsen and Toubro Limited

Wednesday, July 20, 2011

Inventure Growth IPO opens from today

July 20, 2011 0
Inventure Growth IPO opens from today
Inventure Growth and Securities, a broking firm, has launched its Initial Public Offer (IPO) of 70 lakh Equity Shares from today. The IPO would remain open for subscription till Friday, July 22, 2011

The Equity Shares are offered in a Price Band of Rs.100/- to Rs.117/- per equity share. Stay tuned to Indian IPO Blog for the latest updates on Inventure Growth and Securities IPO!

Monday, July 18, 2011

L&T Finance Holdings IPO gets CARE IPO Grade 5

July 18, 2011 0
L&T Finance Holdings IPO gets CARE IPO Grade 5
L&T Finance Holdings IPO has received an IPO Grade 5/5 (Five out of Five Rating) from credit rating agency CARE. CARE assigns IPO grading on a scale of IPO Grade 1 to IPO Grade 5, with IPO Grade 5 indicating strong fundamentals and IPO Grade 1 indicating poor fundamentals. An IPO Grade 5/5 from CARE indicates "Strong Fundamentals"

The grading reflects strong consolidated financial position, comfortable liquidity position with strong resource raising ability and good asset quality of its subsidiaries. L&T Finance is a financial holding company offering a diverse range of financial products and services across the corporate, retail and infrastructure finance sectors, as well as mutual fund products and investment management services, through its direct and indirect wholly-owned subsidiaries.

The company intends to use the proceeds of the issue to augment the capital base of L&T Finance and L&T Infra to meet the capital requirements arising out of expected growth in their assets, primarily the loan portfolio, and for other general corporate purposes. JM Financial, Citigroup and HSBC are among the book running lead manager to the issue

Inventure Growth and Securities IPO Price Band fixed

July 18, 2011 0
Inventure Growth and Securities IPO Price Band fixed
The price band for the upcoming IPO of Inventure Growth and Securities Limited is fixed at Rs.100/- to Rs.117/- per equity share, for each share having a Face Value of Rs.10/- each. The issue opens for subscription for all bidders on July 20, 2011 and closes on July 22, 2011

Inventure Growth and Securities Limited offers a host of services under one roof such as trading services in equity-cash and derivatives market, PMS, debt market and currency futures segment. The company has membership in the cash and derivatives segment of both BSE and NSE, currency futures segment of NSE, MCX-SX and wholesale debt market segment of BSE and NSE

Stay tuned for the latest updates on Inventure Growth and Securities Limited IPO!

L&T Finance IPO opens from Wednesday, July 27, 2011

July 18, 2011 0
L&T Finance IPO opens from Wednesday, July 27, 2011
The Initial Public Offer (IPO) of L&T Finance Holdings Limited would open for subscription from Wednesday, July 27, 2011. The offer will be open for anchor investors on Tuesday, July 26, 2011

L&T Finance is the holding company for the financial services business of the group and operates through four units that manage the mutual fund, asset financing, infrastructure financing and working capital funding businesses

Stay tuned to Indian IPO Blog for the latest updates on L&T Finance IPO!

Friday, July 15, 2011

Bharatiya Global IPO gets no response from QIBs, subscribed 2.06 times

July 15, 2011 0
Bharatiya Global IPO gets no response from QIBs, subscribed 2.06 times
Bharatiya Global IPO, which closed for subscription yesterday on Thursday, July 14, 2011, has received no subscription from the QIB Investors, although the IPO did manage to scrape through and got subscribed 2.06 times on an overall basis

The category of HNI was subscribed 1.94 times, but it was the Retail Category that dragged the IPO through, the IPO garnering 5.06 times subscription in the Retail Category. The IPO was rated with an IPO Grade 2/5 by credit rating agency CARE

Bharatiya Global Infomedia Ltd (BGIL) is a technology based company engaged in the business of Information Technology Based Solutions-RFID & Smart Card and Digital Post Production Studio

Inventure Growth and Securities IPO Details

July 15, 2011 0
Inventure Growth and Securities IPO Details
Issue Size: 7,000,000 Equity Shares of Rs.10/- each
Issue opens from: Wednesday, July 20, 2011
Issue closes on: Friday, July 22, 2011
Price Band: Rs.100/- to Rs.117/- per equity share
Bid Lot: 50 Equity Shares and in multiples thereof
Lead Manager: Intensive Fiscal Services Pvt. Ltd.
Registrar: Link Intime India Pvt. Ltd.

Tuesday, July 12, 2011

Vaswani Industries IPO - SEBI directs for withdrawal option

July 12, 2011 0
Vaswani Industries IPO - SEBI directs for withdrawal option
The Securities and Exchange Board of India (SEBI) has issued a Press Release in the matter of Vaswani Industries IPO. The following are significant directions given in the order:

  1. Vaswani Industries Limited shall give withdrawal option to all the investors who have been allotted shares in the non-institutional investors’ category and the retail individual investors’ category for such number of shares by which the allotment ratio was impacted due to withdrawals/rejections in the aforesaid categories.
  2. The withdrawal option shall be kept open for a period of ten days
  3. In the event of refund/withdrawal on the exercise of the withdrawal option by an investor, the Company may deduct the expenses incurred in connection with its IPO
  4. On closure of the withdrawal option, if the subscription level after such withdrawals falls below the minimum level of subscription as required by law, the BRLM, Ashika Capital Limited, may purchase or arrange purchase through any investor(s) identified by it of such number of shares so as to ensure that the subscription does not fall below the minimum level of subscription. Non-compliance of such condition shall result in refund of entire subscription money to the investors and cancellation of all the shares so allotted by the Company
Moreover, the order also stated that if the company fails to provide withdrawal option within given timeframe, the BRLM shall take necessary steps to ensure that allotment of shares is cancelled and money is refunded to investors within seven days of such failure

Bharatiya Global Infomedia IPO - Bidding Status on Day 1

July 12, 2011 0
Bharatiya Global Infomedia IPO - Bidding Status on Day 1

Bharatiya Global Infomedia IPO Details

July 12, 2011 0
Bharatiya Global Infomedia IPO Details
Issue Size: 6,720,000 Equity Shares of Rs.10/- each
Issue Opens from: Monday, July 11, 2011
Issue closes on: Wednesday, July 14, 2011
Price Band: Rs.75/- to Rs.82/- per equity share
Bid Lot: 75 Equity Shares and in multiples thereof
Lead Manager: Almondz Global Securities Limited
Registrar: Karvy Computershare Private Limited

Saturday, July 9, 2011

Investing in IPOs? Better do your homework first!

July 09, 2011 0
Investing in IPOs? Better do your homework first!
The IPO market in India has become quite active in recent years. In a scenario where newer and newer companies are coming up with an IPO, it becomes really crucial to analyze the fundamentals and other factors of the IPO before jumping into the ship!

IPOs generally tend to be glamorous! "Put in your money in that ‘hot’ new offer for fifteen days and enjoy an unmatched ROI upon listing!" is a common brag from many ‘IPO freaks’ and brokers alike in booming IPO times. While we can’t ignore the robust returns that Coal Indias and Jubilant Foodworks of the world have generated, one has to look at the other side of the story as well. Consider this: out of companies listed during the period from April 2010 to March 2011 investors have seen the red roughly in 3 out of every 5 offers! To put it the other way, atleast 60% of IPOs and FPOs listed during the year have left investors with burnt fingers – and badly burnt ones as well in some cases! Now, this article isn’t intended to turn you off from investing in IPOs and FPOs. There are certainly some really good companies out there that have solid potentials to grow as well as create wealth for shareholders. But, before you go around chasing that ‘hot’ new offer, bear some things in mind:


Get the basics right! Look at Fundamentals!

Overlooking fundamentals of the company is quite common in a haste to make a quick buck from the market. Many IPO freaks are so busy riding on the Grey Market Premiums that they hardly bother to get an idea even about what the company is and what it is doing, let alone the balance sheet position or profitability! Investors should make it a point to read the IPO Grading Document from credit rating agencies on fundamentals of the company. Credit Rating Agencies in India assign IPO Grades on a scale of IPO Grade 1 to IPO Grade 5 with IPO Grade 1 indicating relatively poor fundamentals and IPO Grade 5 indicating that the company has strong fundamentals compared to other listed entities


Avoid the ‘Halo’ effect

Well, just because your buddy, broker, butler or barber says that the company is going to be the next Infy, it isn’t going to make it so. Remember that it is the job of investment bankers and managers of the issue to secure maximum subscription and so they may create a lot of hype around it. Avoid the herd instinct and take some time out to refer to the Red Herring Prospectus – this is the single most important document offering a wide range of details and disclosures about the company and its business. Have a look at the promoters’ standing by going through their background, the experience in the industry, the performance of the other companies promoted by them. Check to see whether there are major litigations or other risk factors against the promoters or the company. A quick look at these things would make sure that you do not invest purely on hunches, rumours, or 'hot' tips


Evaluate company performance

At the end of the day, share prices are a reflection of how good the company is performing and how good it is expected to. Grabbing a copy of the financial statements of the company for previous few years and going through them patiently will certainly do justice to your time spent on it. Look at the balance sheet position and profitability ratios of the company and compare them with similar companies within the industry. Bear in mind that if a business does well, the stock would eventually follow. Watch out for window dressing of financial statements Check if the figures in line, above or below par with the similar companies in the industry. It is amazing how some loss making companies suddenly turn profitable exactly a quarter or two before the IPO! See to it whether there is a sudden improvement in the numbers just before the issue without any justifiable reasons.

Check out the Price to Earnings (P/E) Ratio considering the price band and compare the same with peers of the company. P/E Ratio is an indicator of the number of multiples that the market price would be over its current profit levels. The general rule of the thumb for P/E is that the lower the P/E, the better it is for the investor, because a lower P/E multiple essentially means that you are getting to buy something at a price which can be considered cheaper keeping the earnings of the company in perspective. Bear in mind, though, that during booming times it is easy to get carried away on this front since the prices of P/E of peers are also at elevated levels.


Glance over the objects and future prospects

Check whether the objects of the issue seem to be line with the business of the company and congruent with its future prospects. See to it whether there are companies within the group doing the same business and whether company intends to utilize the proceeds in a way that would be in the interest of itself or would rather benefit other companies in the group. Also, have a look what would be the promoters’ holding after the issue. A smaller post-issue stake may indicate the reduced promoters’ confidence in the future prospects of the company



Cheap, yet so expensive!

Legendary Investor Warren Buffett once said “It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price!” Now, whether the quote goes down well with you or not depends on how you look at some of those low priced stocks. Many Investors often get lured by the low tick size of IPOs as they think that would buy them more number of shares. They tend to buy cheap stocks, which are not that valuable, only to repent the decision later. At the same time, watch out for extraordinarily high-priced IPOs as well. Keep in mind that however good a company’s future prospects are, a high price set at the IPO stage itself would eat into the prospect of an appreciation later. Comparing the company’s EPS with the average P/E Ratio for peer companies would give a good idea on what is a fair price for the IPO. If the price band seems far stretched from the fair price, you may be better off buying from secondary market instead


All in all, the time and effort you spent in taking some of these basic precautions before hopping in is likely to keep your money a lot safer! Do not invest if you think that price is not right or you aren’t convinced about the company’s business and do not invest just because your buddy, broker, butler or barber does so!

Thursday, July 7, 2011

Rushil Decor lists at Rs.81.25 on BSE

July 07, 2011 0
Rushil Decor lists at Rs.81.25 on BSE
The Equity Shares of Rushil Decor Limited, which listed on the exchanges today, opened at Rs.81.25 on the BSE as against an Issue Price of Rs.72 per equity share

Rushil Decor Ltd., a flagship company of the Rushil Group, is a leading Indian manufacturer of decorative high pressure laminates and plain particle boards

Stay tuned to Indian IPO Blog for more updates on Rushil Decor Ltd. IPO!

Saturday, July 2, 2011

Bharatiya Global Infomedia IPO Rating

July 02, 2011 0
Bharatiya Global Infomedia IPO Rating
Bharatiya Global Infomedia Limited IPO has been assigned an IPO Grade 2 by credit rating agency CARE. This implies that as per CARE, the company has 'Below Average Fundamentals'. CARE assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals

Bharatiya Global Infomedia Limited is a technology based company focusing on the sectors such as Information Technology security and compliance automation software solutions and technology related to media & entertainment industry with focus on Research & Development

Current business operations of the company consist of Information Technology Based Solutions-RFID & Smart Card and Digital Post Production Studio. The company has an in-house developed software ERP product, customized software development, training, consultancy, trading, animation and RFID based solution. The company develops small animated capsules for various projects of the clients. It also designs & develops WAP enabled products for clients and mainly focus on building RFID technology

Bharatiya Global Infomedia IPO Details

July 02, 2011 0
Bharatiya Global Infomedia IPO Details
Issue Size: 6,720,000 Equity Shares of Rs.10/- each
Issue Opens from: Monday, July 11, 2011
Issue closes on: Thursday, July 14, 2011
Price Band: Rs.75/- to Rs.82/- per equity share
Bid Lot: 75 Equity Shares and in multiples thereof
Lead Manager: Almondz Global Securities Limited
Registrar: Karvy Computershare Private Limited

Bharatiya Global Infomedia IPO opens from July 11, 2011

July 02, 2011 0
Bharatiya Global Infomedia IPO opens from July 11, 2011
Bharatiya Global Infomedia Limited is entering the capital market with an Initial Public Offer (IPO), having a Face Value of Rs.10 each, which would open for subscription from July 11, 2011.

Bharatiya Global Infomedia Limited is engaged in many sectors such as information technology security and compliance automation software solutions and technology related to media & entertainment industry with focus on research & development

Stay tuned for the latest updates on Bharatiya Global Infomedia Limited IPO!

Endurance Technologies OFS oversubscribed, cut off price fixed at Rs.1135

Endurance Technologies Offer for Sale was open for Non Retail category on 6-Mar-2019 and for Retail category on 7-Mar-2019 at a floor price ...