Indian IPO Blog: Safety Net Mechanism
Showing posts with label Safety Net Mechanism. Show all posts
Showing posts with label Safety Net Mechanism. Show all posts

Monday, May 20, 2013

Just Dial IPO opens for subscription today

May 20, 2013 0
Just Dial IPO opens for subscription today
Justdial Limited (Just Dial), the popular local search service provider in India, is coming up with an Initial Public Offering which opens for subscription today from May 20, 2013.

Just dial is a 24/7 Free Search service operating on a single national number 08888888888 that receives over 130 Million Calls every year. It provides information about local businesses, products and services to the users in over 2000 cities in India. The company has more than 300 million customers using JustDial Services. 


Just Dial’s search services are available to users through Internet, mobile Internet, telephone and text (SMS). Just Dial's website http://www.justdial.com/ provides information on movies, restaurants, hotels, travels, etc.

The IPO which would remain open till May 22, 2013, consists of 17,497,458 Equity Shares of Rs. 10 each to be offered in a price band of Rs.470/- to Rs.543/- per share with a bid lot of 25 Equity Shares and in multiples thereof. The shares will be listed on BSE, NSE and MCX-SX

The IPO has been graded with a CRISIL IPO Grade 5/5 which indicates that the fundamentals of the company are strong in relation to other listed equity securities in India.

Just Dial has declared a Retail Discount and Safety Net Mechanism on the IPO as well. Click here to read more on Retail Discount and Safety Net Mechanism in Just Dial IPO

Sunday, January 13, 2013

SEBI may come up with a milder Safety Net Mechanism

January 13, 2013 0
SEBI may come up with a milder Safety Net Mechanism
Market regulator SEBI plans to introduce the safety net mechanism in the form proposed by it in the discussion paper. SEBI Chairman U K Sinha had said a few days ago “Our discussion paper is in the public domain. My personal sense is that we must introduce safety net mechanism, may be in milder form, primarily to give a signal not about returning money but that the pricing has been right,”

According to the discussion paper, the safety net mechanism would be triggered in the case of those IPOs whose price has fallen by more than 20 per cent from the issue price. This new safety net mechanism would be a mandatory one.

Market regulator SEBI's board will discuss this week safeguarding a part of funds invested by small investors in IPOs, as also the steps required for dealing with the promoters failing to comply with minimum public shareholding in listed companies. The board of Sebi (Securities and Exchange Board of India) is scheduled to meet on January 18, 2013.

While it may be uncertain as to when SEBI introduces mandatory safety net, it may be a milder form of mandatory safety net that may be introduced. There is already a voluntary safety net mechanism available for IPO investors