August 2012 - Indian IPO Blog

Indian IPO Blog

Insights into investing world in India

Monday, August 20, 2012

SEBI IPO Reforms: Price Band to be announced early

August 20, 2012 0
SEBI IPO Reforms: Price Band to be announced early

The market regulator SEBI has said that the company issuing IPOs must announce the price band of the issue at least five working days before the issue opens

Currently, the price band could be announced two working days before the IPO opened. This often left very less time in the hands of investor to analyse and arrive at an informed decision. The move by SEBI is aimed at enabling the investor to take an informed call on whether the price is fair and improve the quality of investor decision making

The price band is the price range within which the company will offer the shares under the IPO. Under the regulations, the spread or the difference between the floor and the cap of the price band cannot be more than 20%. In other words, it means that the cap should not be more than 120% of the floor price

Sunday, August 19, 2012

SRG Housing Finance Limited IPO Information

August 19, 2012 0
SRG Housing Finance Limited IPO Information
Issue Size: 3,504,000 Equity Shares of Rs.10/- each 

Issue Type: Fixed Price Issue IPO 

Issue opens on: August 22, 2012
Issue closes on: August 24, 2012 


Face Value: Rs.10/- per equity share Issue Price: Rs.20/- per equity share
Bid Lot: 6000 Equity Shares

Listing At: BSE SME

SEBI IPO Reforms: e-IPOs

August 19, 2012 0
SEBI IPO Reforms: e-IPOs
The Securities and Exchange Board of India (SEBI) has introduced a number of sweeping changes by way of reforms that promise to revive primary markets and boost investor interest. Here's an insight into e-IPOs


Currently, IPOs are marketed through merchant bankers or syndicate members. Applications can be made only through these syndicate members. An ASBA Investor can visit an ASBA Bank branch and deposit IPO application under the current system.

To enhance retail participation in IPOs, SEBI plans to introduce electronic IPOs by utilizing broker terminal networks. The idea under e-IPO is to enable every single terminal of every registered broker of BSE and NSE to be able to accept application.

“We are talking to the RBI and Indian Banks’ Association to make ASBA available in all bank branches under the core banking system,” U. K. Sinha, Chairman, SEBI has said. Moreover, Brokers will be remunerated by issuer companies for using this mode

If gone as planned, electronic IPOs or e-IPOs can prove to be a real boon particularly in terms of accessibility as it has the potential take IPOs even to smaller towns and cities - wherever a terminal exists. Plus, if ASBA is made compulsory for all branches, then it can further enhance the reach of IPOs since in such case, the investor will only have to walk in to the nearest bank branch and deposit his IPO application

Saturday, August 18, 2012

SEBI IPO Reforms: Safety net under consideration

August 18, 2012 0
SEBI IPO Reforms: Safety net under consideration
The Securities Exchange Board of India (SEBI) had earlier announced a list of reforms aimed at boosting primary market, the mutual fund industry and retail participation in the market. Of all the items on the agenda, the market regulator has not yet approved the issue of a safety net for retail participants in an IPO.

Under a safety net mechanism, certain portion of the investment made by retail shareholders could be guaranteed for a fixed period against market volatility. This concept was introduced to encourage more retail participation on initial public offers, especially at a time when investment sentiment is low in the country.

As per the proposed mechanism, a certain portion of the investment made by retail shareholders in the IPOs could be guaranteed for a fixed period, which could of six months, even if the shares' value plunge below the IPO allotment price during this time.

 This 'safety net' mechanism is being considered only for the small retail investors, who would be compensated by the promoters and other entities selling shares through IPOs in the event of the company's shares plunging below a certain threshold limit within six months of listing or the time frame set by Sebi,


Chairman UK Sinha today said that this concept required more consultation, and has therefore invited the public to voice their views on the idea of a safety net.

SEBI expected to introduce more reforms: FM

August 18, 2012 0
SEBI expected to introduce more reforms: FM
Finance Minister P Chidambaram has said regulator SEBI is expected to announce fresh market reform measures next month

Expressing satisfaction over wide-ranging reforms announced by Securities and Exchange Board of India (Sebi) yesterday for mutual funds and other segments, Chidambaram said he has requested SEBI Chairman U K Sinha to look into a number of other suggestions for the benefit of investors.

'The examination by the Government and Sebi is likely to be completed in the next two weeks. I have requested Sebi Chairman to schedule another meeting of the (Sebi) Board in early September when some more decisions can be taken on the suggestions that are under examination,' he said.

The Finance Minister said the measures announced by SEBI yesterday 'will stimulate financial savings among households as well as give a fillip to the mutual fund industry. More and more households should be encouraged to save in financial instruments rather than in gold'.

In wide-ranging changes to its various regulations, SEBI made it easier and more cost effective to invest and raise funds through IPOs, while allowing the Mutual Funds ( MFs) flexibility in using their fund expense charges and proposing a national mutual fund policy.

Besides, SEBI has also made provisions for retail investors getting an assured minimum lot of shares in IPOs (Initial Public Offers) and asked the companies to announce their price band at least five days in advance of the issue

Thursday, August 16, 2012

SEBI's New IPO Norms at a glance

August 16, 2012 0
SEBI's New IPO Norms at a glance
SEBI has been up in the arms to boost investor interest and revive the Indian primary markets. With the said view, it has come up with a number of reforms in the IPO market, following being the key regulations introduced:

  • e-IPO facility to be available at 1,000 points initially 
  • All IPO applicants must get minimum allocation of shares 
  • Price band to be disclosed 5 days before IPO opens
  • Minimum IPO application limit band hiked to Rs.10,000-15,000
  • No need to file new DRHP if issue size changes up to 20%
  • Compulsory book build issue to have 75% for QIBs
  • Non-retail investors cannot cut, withdraw IPO bid, but can enhance IPO bid price, size
  • Funds raised for General Corporate purpose to be capped at 25% of IPO
  • Minimum profit norm for IPOs pegged at Rs.15 crore

SEBI approves norms for e-IPOs

August 16, 2012 0
SEBI approves norms for e-IPOs
The Securities and Exchange Board of India (Sebi) board has approved a wide range of comprehensive reforms to revamp the primary markets. The reforms include norms for e-IPOs as well

Addressing the press, Sebi Chairman UK Sinha said that the market regulator will ensure a minimum lot of shares for retail investors in IPOs and approves e-IPO procedure for electronic bidding in public offers.

SEBI has been quite active, of late, as far as the reforms in primary market is concerned and e-IPOs is one more step in that direction. It is hoped that the steps would revive the poor interest of investors in the Indian primary markets

Wednesday, August 15, 2012

SEBI to hold discussions on e-IPOs

August 15, 2012 0
SEBI to hold discussions on e-IPOs
The Securities Exchange Board of India will meet on Thursday to decide on a wide range of reforms for the primary market including e-IPOs.

The arrangement under the proposal for electronic initial public offers that would save investors the trouble of bothering with paperwork. Some other changes are also anticipated to streamline the eligibility criteria for companies coming up with an IPO

The Security and Exchange Board of India (SEBI) would soon initiate actions for reforms in IPO market, SEBI Member Rajeev Agrawal had said earlier according to Moneycontrol.com. "Our objective is to ensure good quality of IPOs as well as rational pricing of the IPOs. For this purpose, we are going to introduce several actions in coming days," he had said.

"It is important to take actions to create awareness among people about the market as well as risk involved in the market simultaneously. We have good resources in persons in the country to create awareness programmes," he added

Jointeca Education Solutions IPO opens for subscription

August 15, 2012 0
Jointeca Education Solutions IPO opens for subscription
Jointeca Education Solutions Ltd is an ISO 9001:2008 certified company and provides a range of IT solutions for business in areas of Enterprise Application Solutions and Integrated IT Solutions. Jointeca Education Solutions Ltd's products as GuruSeva in education, Restro in restaurant and Prosav in investment field are designed according to the global market. Jointeca offers educational ERP solutions through its product GuruSeva and its business is concentrated mainly in the Northern Region of India.

The company is coming up with an IPO of 3,568,700 Equity Shares of Rs.10/- each. The shares will be offered at a Fixed Issue Price of Rs.15/- per share. The IPO would remain open for subscription between August 16, 2012 and August 21, 2012

The objects of the issue are:
1. To expand product Guruseva (Educational ERP solution) under BOOT Model through cloud computing solutions;
2. To establish and expand infrastructure for B2B educational portal www.shiklo.in;
3. To meet the promotion and branding expenses for setting up robust sales network for products

Stay tuned for more on Jointeca Education Solutions IPO

Tuesday, August 7, 2012

SEBI to initiate IPO reforms to ensure good quality

August 07, 2012 0
SEBI to initiate IPO reforms to ensure good quality
The Security and Exchange Board of India (SEBI) would soon initiate actions for reforms in IPO market, SEBI Member Rajeev Agrawal said according to Moneycontrol.com. "Our objective is to ensure good quality of IPOs as well as rational pricing of the IPOs. For this purpose, we are going to introduce several actions in coming days," he said.

"It is important to take actions to create awareness among people about the market as well as risk involved in the market simultaneously. We have good resources in persons in the country to create awareness programmes," he added

Friday, August 3, 2012

SEBI restricts selling ESOP shares for ex-staff till one year after IPO

August 03, 2012 0
SEBI restricts selling ESOP shares for ex-staff till one year after IPO
The Securities and Exchange Board of India (SEBI) today said that shares owned by ex-employees, allotted through ESOPs (Employee Stock Options), cannot be sold for a period of one year pursuant to an IPO by the company.

SEBI said that if someone ceases to be an employee of a company on the date of allotment of shares pursuant to the IPO, the shares held by such a person cannot be exempted from the one year lock-in provision. SEBI said “In other words, such shares held by ex-employees have to be locked in...”

Wednesday, August 1, 2012

V-Mart Retail files DRHP with SEBI

August 01, 2012 0
V-Mart Retail files DRHP with SEBI
New Delhi based retail departmental store chain V-Mart Retail proposes to tap capital market with a public issue of 57.46 lakh equity shares of face value of Rs.10 each. The issue comprised of a fresh issue of 40.11 lakh equity shares by the company and an offer for sale of 17.35 shares by Naman Finance and Investment Private Limited

V-Mart operates in Tier-II and Tier-III cities, with a chain of value retail departmental stores that offering apparels, general merchandise and kirana. Currently it owns and operates 59 stores spread across 51 cities and 10 states and union territories, with a total area of 4.82 lakh sq ft.

Check back Indian IPO Blog for more on the IPO!

Tamilnad Mercantile Bank to come up with an IPO

August 01, 2012 0
Tamilnad Mercantile Bank to come up with an IPO
Tamilnad Mercantile Bank (TMB) is soon going to the tap the capital markets with an Initial Public Offering (IPO) of Equity shares. The Chief Executive Nagendra Murthy said, "The paperwork and ground work is almost done. We are ready. But the timing can be decided only after the court sets the date for the AGM’

The history of Tamilnad Mercantile Bank Ltd., the then Nadar Bank Ltd., dates back to 1921. The bank which had a deposit base of Rs. 21,010.00 in the year 1921 increased it to Rs. 27 Lakhs during 1946 and to Rs. 182 Lakhs during 1971. Deposit level of the bank as on Mar 31, 2011 is Rs. 13,809 Crores. The bank, which had a Net Profit of Rs. 6,984.00 in the year 1921 had spurted its profit to Rs. 5.05 Lakhs in the year 1971 and Rs. 250.90 Crores for the year ended March 2011

Check back Indian IPO Blog for more on the IPO!

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