Monday, September 19, 2011

Buzzingstock

Buzzingstock


Life Cycle (Process Flow) of an IPO

Posted: 19 Sep 2011 08:15 AM PDT

IPO - Initial Public Offer

Please find below a detailed process flow of a 100% Book Building Initial Public Offer (IPO).

The steps provided below are most general steps involve in the life cycle of an IPO, provided here for easy understanding of an retail investor who is willing to participate in an IPO. Real processing steps are more complicated and may be different.

1. Issuer Company – IPO Process Initialization

  • Appointment of lead manager as book runner.
  • Appointment of registrar of the issue.
  • Appointment of syndicate members.

2. Lead Manager’s – Pre Issue Role – Part 1

  • Prepare draft offer prospectus document for IPO.
  • File draft offer prospectus with SEBI.
  • Road shows for the IPO.

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3. SEBI – Prospectus Review

  • SEBI review’s draft offer prospectus.
  • Revert it back to Lead Manager if need clarification or changes (Step 2).
  • SEBI approves the draft offer prospectus, and it then become Offer Prospectus.

4. Lead Manager – Pre Issue Role – Part 2

  • Submit the Offer Prospectus to Stock Exchanges, registrar of the issue and get it approved.
  • Decide the issue date & issue price band with the help of Issuer Company.
  • Modify Offer Prospectus with date and price band. Document is now called Red Herring Prospectus.
  • Red Herring Prospectus & IPO Application Forms are printed and posted to syndicate members; through which they are distributed to investors.

5. Investor – Bidding for the public issue

  • Public Issue Open for investors bidding.
  • Investors fill the application forms and place orders to the syndicate members (syndicate member list is published on the application form).
  • Syndicate members provide the bidding information to BSE/NSE electronically and bidding status gets updated on BSE/NSE websites.
  • Syndicate members send all the physically filled forms and cheques to the registrar of the issue.
  • Investor can revise the bidding by filling a form and submitting it to Syndicate member.
  • Syndicate members keep updating stock exchange with the latest data.
  • Public Issue Closes for investors bidding.

6. Lead Manager – Price Fixing

  • Based on the bids received, lead managers evaluate the final issue price.
  • Lead managers update the ‘Red Herring Prospectus’ with the final issue price and send it to SEBI and Stock Exchanges.

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7. Registrar – Processing IPO Applications

  • Registrar receives all application forms & cheques from Syndicate members.
  • They feed applicant data & additional bidding information on computer systems.
  • Send the cheques for clearance.
  • Find all bogus application.
  • Finalize the pattern for share allotment based on all valid bid received.
  • Prepare ‘Basis of Allotment’.
  • Transfer shares in the demat account of investors.
  • Refund the remaining money though ECS or Cheques.

8. Lead manager – Stock Listing

  • Once all allocated shares are transferred in investors dp accounts, Lead Manager with the help of Stock Exchange decides Issue Listing Date.
  • Finally share of the issuer company gets listed in Stock Market.


What is an Initial Public Offer (IPO)

Posted: 19 Sep 2011 07:52 AM PDT

IPO - Initial Public Offer

Initial Public Offer (IPO) also known as Public Issue is a way for a company to raise money from investors for its future projects and get listed to Stock Exchange. In other words, an Initial Public Offer (IPO) is the selling of securities to the public in the primary stock market.

From an investor prospective, IPO gives a chance to buy shares of a company, directly from the company at the price of their choice (In book build IPO’s). Many a times there is a big difference between the price at which companies decides for its shares and the price on which investor are willing to buy share and that gives a good listing gain for shares allocated to the investor in IPO.

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From a company prospective, IPO help them to identify their real value which is decided by millions of investor once their shares are listed in stock exchanges. IPO’s also provide funds for their future growth or for paying their previous borrowings.

To Know the Detailed Process Flow of an IPO – Public Issue Click Here


Diwali Muhurat Trading 2011 : 26 October

Posted: 19 Sep 2011 07:42 AM PDT

Diwali Muhurat Trading / Deepavali 2011 Muhurat Trading will be held on Wednesday, 26th October, 2011 (Diwali Amavasya – Laxmi Puja).

Mahurat trading is held every year in evening around 6.30 pm for a duration of 1 hour.

Further details will be available soon.

For BSE – NSE 2011 Holidays List Click Here


BSE – NSE 2011 Holidays List

Posted: 19 Sep 2011 07:40 AM PDT

The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) of India remain close for trading on following days:

BSE Holidays 2011 / NSE Holidays 2011

Day Date Holiday
Wednesday 26th January, 2011 Republic Day
Wednesday 2nd March, 2011 Mahashivratri
Tuesday 12th April, 2011 Ram Navmi
Thursday 14th April, 2011 Dr. Babasaheb Ambedkar Jayanti
Friday 22nd April, 2011 Good Friday
Monday 15th August, 2011 Independence Day
Wednesday 31st August, 2011 Ramzan Id
Thursday 1st September, 2011 Shri Ganesh Chaturthi
Thursday 6th October, 2011 Dassera
Wednesday 26th October, 2011 Diwali Amavasya (Laxmi Pujan)
Thursday 27th October, 2011 Diwali Balipratipada
Monday 7th November 2011 Bakri-Id
Thursday 10th November, 2011 Gurunanak Jayanti
Tuesday 6th December 2011 Moharum


Tijaria Polypipes IPO Details

Posted: 19 Sep 2011 07:31 AM PDT

Tijaria Polypipes Logo

About Tijaria Polypipes :

Tijaria Polypipes Ltd is an ISO 9001:2000 Certified company engaged in the business of plastic pipes. Tijaria is manufacturing of HDPE pipes, PVC pipes, LLDPE pipes, HDPE DWC pipes, PLB HDPE Ducts, MDPE pipes, uPVC RIGID & BLUE CASING pipes, Pet Granules, MICRO/DRIP Irrigation System, SWR PIPES & FITTINGS, PPR Pipes & Fittings, HDPE Sprinkler System under the registered brand name of Tijaria and Vikas. The company produces a big product range in the field of plastics, HDPE sprinkler, drip irrigation, micro irrigation, telecommunications etc.

Tijaria Polypipes Ltd is entering in the capital markets with an initial public offering, IPO of 1,00,00,000 equity shares of face value Rs 10/- each aggregating Rs 60 crore through the fixed price IPO.

Tijaria Polypipes Issue Detail:

Issue Open: Sep 27, 2011 – Sep 29, 2011
Issue Type: Fixed Price Issue IPO
Issue Size: Equity Shares of Rs. 10
Issue Size: Rs. 60.00 Crore
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 60 Per Equity Share
Market Lot: 100 Shares
Minimum Order Quantity: 100 Shares
Listing At: BSE, NSE

Tijaria Polypipes IPO Grading :

ICRA has assigned an IPO Grade 2 to Tijaria Polypipes IPO.

Tijaria Polypipes Registrar : Sharex Dynamic (India) Pvt Ltd
Tijaria Polypipes Lead Manager(s) : Hem Securities Limited


RDB Rasayans Ltd IPO Details

Posted: 18 Sep 2011 11:07 PM PDT

RDB Rasayans logo

About RDB Rasayans Ltd :

RDB Rasayans Ltd, an ISO 9001:2008 certified organization, engaged in manufacture and sale of FIBC (Jumbo Bags) and Woven Sacks and various woven polymer based products like Container Liners, Protective irrigation system, Canal Liners, etc. PP sacks are mainly used for packing the different products in the fertilizers, cement, polymers, chemicals, textiles, machinery, automobiles and steel industry etc.

RDB Rasayans is entering in the capital markets with an initial public offering, IPO of 45,00,000 Equity Shares of Rs 10 each. The price band for the issue has been fixed at Rs 72/- at lower level and Rs 79/- at upper level.

RDB Rasayans Ltd Issue Detail:

Issue Open: Sep 21, 2011 – Sep 23, 2011
Issue Type: 100% Book Built Issue IPO
Issue Size: 4,500,000 Equity Shares of Rs. 10
Issue Size: Rs. 32.40 – 35.55 Crore
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 72 – Rs. 79 Per Equity Share
Market Lot: 80 Shares
Minimum Order Quantity: 80 Shares
Listing At: BSE, NSE

Draft Prospectus with SEBI

RDB Rasayans Ltd IPO Grading : Not Yet Available

RDB Rasayans Ltd IPO Registrar : Link Intime India Private Ltd
RDB Rasayans Ltd IPO Lead Manager(s) : Chartered Capital and Investment


Prakash Constrowell Ltd IPO Details

Posted: 18 Sep 2011 10:55 PM PDT

Prakash constrowell logo

About Prakash Constrowell Ltd :

Prakash Constrowell Ltd is entering in the capital markets with an initial public offering, IPO of 60 crores. The price band for the issue has been fixed at Rs 130/- at lower level and Rs 138/- at upper level.

Prakash Constrowell Ltd is a construction company engaged in the business of infrastructure development and civil construction. Company is headquartered at Nasik, Maharashtra. Prakash Constrowell has successfully execute a range of construction projects in the state of Maharashtra awarded by government and semi-government bodies, Operate & Transfer (BOT) project by way of Public-Private Partnership (PPP) model.

Prakash Constrowell Ltd Issue Detail:

Issue Open: Sep 19, 2011 – Sep 21, 2011
Issue Type: 100% Book Built Issue IPO
Issue Size: Equity Shares of Rs. 10
Issue Size: Rs. 60.00 Crore
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 130 – Rs. 138 Per Equity Share
Market Lot: 50 Shares
Minimum Order Quantity: 50 Shares
Listing At: BSE, NSE

Prakash Constrowell Ltd IPO Grading :

CARE has assigned an IPO Grade 2 to Prakash Constrowell IPO.

›  Draft Prospectus with SEBI
›  Red Herring Prospectus
›  Download IPO Application Form

Prakash Constrowell IPO Registrar : Bigshare Services Pvt Ltd
Prakash Constrowell IPO Lead Manager(s) : Intensive Fiscal Services Private Limited


New LIC chairman to be appointed in 10 days: Says Finance Ministry

Posted: 18 Sep 2011 10:33 PM PDT

Since May this year, Life Insurance Corporation (LIC) has been without a full-time chairman after then chairman TS Vijayan’s five-year term ended.

Ending months of indecision, the government is set to appoint a full-time chairman for insurance giant Life Insurance Corporation (LIC) in the next 10 days, a top Finance Ministry official has said.

Since May this year, LIC has been without a full-time chairman after then chairman TS Vijayan’s five-year term ended.

As an interim arrangement, the Additional Secretary in the Finance Ministry, Rakesh Singh, was appointed as the Chairman of LIC. Subsequently, DK Mehrotra, the incumbent Managing Director, was asked to officiate as the chairman of the country’s largest financial institution.

A selection panel headed by Economic Affairs Secretary R Gopalan had invited four probable candidates for the post in June. But the panel could not come to a decision, as two of the contenders did not have central vigilance clearance.

When asked about the names being discussed, Mittal said, “That’s for the selection committee to decide. What I am saying is that this process is on and very shortly, you will get a final [decision].”

According to earlier reports, the shortlisted candidates — all from within LIC’s ranks — include current Acting Chairman DK Mehrotra, Managing Director Thomas Mathew and Executive Directors AK Sahoo, TT Mathew and KB Saha.

Several questions have been raised about the government’s inability to find a full-time leader for LIC, which has assets more than Rs 10 lakh crore, especially at a time when it faces competition from over 23 aggressive private players following the opening up of the sector a decade ago.


RBI hikes Repo Rate and Reverse Repo Rate : Sept 2011

Posted: 18 Sep 2011 10:05 PM PDT

RBI Repo - Reverse Repo Rate

On Friday, September 16, India’s Central Bank, the Reserve Bank of India [RBI] increased its repo rate by 25 basis points to 8.25% from 8.00% and raised the reverse repo rate to 7.25% from 7.00%.

This is the 12th rate hike in last 19 months.

The RBI said: "The monetary tightening effected so far by the Reserve Bank has helped in containing inflation and anchoring inflationary expectations, though both remain at levels beyond the Reserve Bank's comfort zone. As monetary policy operates with a lag, the cumulative impact of policy actions should now be increasingly felt in further moderation in demand and reversal of the inflation trajectory towards the later part of 2011-12.  As such, a premature change in the policy stance could harden inflationary expectations, thereby diluting the impact of past policy actions. It is, therefore, imperative to persist with the current anti-inflationary stance. Going forward, the stance will be influenced by signs of downward movement in the inflation trajectory, to which the moderation in demand is expected to contribute, and the implications of global developments."

About Repo Rate :

Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is the rate at which our banks borrow rupees from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more expensive.

About Reverse Repo Rate :

Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from banks. Banks are always happy to lend money to RBI since their money are in safe hands with a good interest. An increase in Reverse repo rate can cause the banks to transfer more funds to RBI due to this attractive interest rates. It can cause the money to be drawn out of the banking system.


India’s GVK pays $1.26 billion for stake in Australia’s Hancock

Posted: 18 Sep 2011 09:53 PM PDT

GVK Power & Infrastructure

On Friday, 16th September 2011, GVK Group announced that GVK Power & Infrastructure has acquired a majority stake in the Hancock coal project in Queensland, Australia, for $1.26 billion to secure thermal coal supplies for its planned power plants in India.

As per the deal, GVK Power will acquire a 79 percent stake in the Alpha and Alpha West coal mines in the Galilee Basin, and will buy Kevin’s Corner coal mine and the rail and port project connecting the coal mines outright, the company said in a statement on Friday.

GVK will pay $500 million initially to Hancock, $200 million after one year, and the remainder on financial close of the project, which is expected to be in 2012. The company will be funding the deal by bank loans.

The first phase of production, scheduled to start in 2014, is expected bring in more than 30 million tons per year of thermal coal.

Since last few years Indian energy firms have been acquiring overseas coal assets, typically in Australia, Indonesia and Africa, to feed power plants at home.

Earlier last year, India’s Lanco Infratech bought coal mines from Australia’s Griffin Coal for an undisclosed sum, while Adani Enterprises agreed to buy Galilee coal project from Australia’s Linc Energy for $2.7 billion.

In May this year, Adani unit Mundra Port and Special Economic Zone agreed to buy Abbot Point Coal Terminal in Australia for $2 billion in an all-cash deal to tap into growing coal traffic in overseas markets.


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