Corporate Sector News

[Pintu]

http://www.ptinews.com/news/303780_RIL-diverting-crores-of-govt-revenue-from-mktg-margin--ADAG

RIL diverting crores of govt revenue from mktg margin: ADAG

STAFF WRITER 13:27 HRS IST

New Delhi, Sep 28 (PTI) An Anil Ambani group company has asked the oil ministry to stop RIL from charging marketing margin on gas, alleging that the Mukesh Ambani-led firm was not sharing the revenue and "diverting" crores of rupees of the government's share.

In a letter to Petroleum Secretary R S Pandey, Reliance Infrastructure also sought to know whether RIL was entitled to charge the marketing margin despite the fact that "RIL is not sharing this part of sales consideration with the government.

"Thus, several crores of rupees that would belong to the government are being diverted by RIL".

 

[Pintu]

The Telegraph - Calcutta (Kolkata) | Business | Realty quartet in cash rush

Realty quartet in cash rush

OUR SPECIAL CORRESPONDENT

Calcutta, Sept. 29: The primary market is poised for action with four real estate firms today approaching market regulator Sebi to raise Rs 11,093 crore through initial public offering (IPO).

At the top of the heap is Delhi-based Emaar MGF, which plans to mop up Rs 3,850 crore, followed by Subrata Roy’s Sahara City Homes, which hopes to raise up to Rs 3,450 crore.

The two other firms are Mumbai-based Lodha Developers and Delhi firm Ambience.

The development comes on a day when the BSE sensex touched 16852 after dipping to a low of 7697 in October last year.

The sensex had touched 21206 on January 10, 2008 but went into a downswing soon after, sucking many IPOs, including Emaar MGF’s, into its vortex.

Emaar MGF, where Dubai-based Emaar is the largest shareholder, had to scrap its Rs 7,000-crore IPO in February 2008 as investors found the issue expensive. Though the company subsequently lowered the offer price, it failed to get subscription and the IPO was finally abandoned.

Following the revival of the secondary market after the UPA-led coalition came back to power in May, many firms are making a beeline to raise funds through public issues.

Sahara, Lodha and Ambience are hitting the market for the first time, while developers such as DLF, Unitech and Omaxe have raised equity through qualified institutional placements (QIPs).

The issues of Adani Power and public sector NHPC Ltd were hugely oversubscribed in recent times, but investors did not warm up to them. The scrips gave marginal gains to investors after listing,raising serious questions about the aggressive pricing of the issues.

NHPC is now trading below its issue price and so are most of the real estate firms, including DLF, that had hit the market before the bear phase started in January 2008.

It remains to be seen how the four real estates firms price their issues. Experts say the housing market has revived — sales are buoyant though the profit margins have come down.

While most of the QIPs were done to retire debt and de-stress the balance sheet by reducing interest costs, IPOs are mostly to fund expansion.

Sahara said it would use the funds raised from the IPO to develop residential and commercial projects in 99 cities. The company claims to have a land bank of over 8,000 acres with a saleable area of 419 million sq feet.

Lodha Developers is working on about 40 projects, mostly residential properties, and has a land bank of 200 million square feet.

Ambience claims to have a land bank of 800 acres, of which about 100 acres are under development.

However, the claims of real estate firms about their land holdings have been a point of dispute in the past.

 

[NSG_Blackcats]

MTN-Bharti deal, worth 24 billion dollars, collapses​

After four months of negotiations, the multi-billion deal between India's Bharti Airtel and South Africa's MTN has been called off. It was expected to create the world’s third-largest telecom company. The deal-breaker was reportedly the demand for a dual listing, along with South Africa’s insistence that it wanted MTN to be a South African firm. At the recent G-20 summit in Pittsburg, Prime Minister Manmohan Singh had assured South African President Zuma of his support for the merger.

Bharti issued this statement: “Bharti and MTN have decided to disengage from their discussions for a merger; the South African government has expressed its inability to accept the deal in its current form. We hope the South African government will review its position in the future.” Bharti's exclusivity period with MTN Group ended today.

Link

 

[ajay_ijn]

MTN-Bharti deal, worth 24 billion dollars, collapses​

After four months of negotiations, the multi-billion deal between India's Bharti Airtel and South Africa's MTN has been called off. It was expected to create the world’s third-largest telecom company. The deal-breaker was reportedly the demand for a dual listing, along with South Africa’s insistence that it wanted MTN to be a South African firm. At the recent G-20 summit in Pittsburg, Prime Minister Manmohan Singh had assured South African President Zuma of his support for the merger.

Bharti issued this statement: “Bharti and MTN have decided to disengage from their discussions for a merger; the South African government has expressed its inability to accept the deal in its current form. We hope the South African government will review its position in the future.” Bharti's exclusivity period with MTN Group ended today.

Link

really disappointing news. Its the third time merger attempt with MTN failed. I am not sure if Indian telecos would any better chance to go global. much of the other global markets reached saturation point, only place to expand is India & Africa.

 

[NSG_Blackcats]

Hyundai’s Sept sale highest in 11 years​

Full Story

 

[NSG_Blackcats]

Hero Honda sales cross 4-lakh mark​

Mumbai, Oct. 1: Hero Honda continued its good run in September with sales of 4,01,290 two-wheelers, of which motorcycles led by the Splendor and Passion brands accounted for a lion’s share. The company’s gearless scooter, Pleasure, makes up less than five per cent of total sales.

This was higher than the 3,85,262 units sold in September last year though a tad lower than the preceding month’s level of 4.15 lakh units. Sources said Hero Honda’s numbers had been impacted by the labour strife at some of its suppliers’ plants in the Gurgaon belt.

Full Story

 

[Pintu]

UltraTech may set in motion search for a new leader soon- Corporate Announcement-News By Company-News-The Economic Times

UltraTech may set in motion search for a new leader soon
3 Oct 2009, 0127 hrs IST, MV Ramsurya & Sabarinath M, ET Bureau

MUMBAI: The impending sale of Grasim’s cement business to UltraTech has again brought to the fore the issue of leadership at the country’s largest cement group.

Saurabh Mishra, the current chief executive officer of UltraTech, and one who is also expected to see the cement business through the ongoing restructuring, is scheduled to retire soon, prompting the group to actively scout for a new leader for the cement business. With a capacity of 43 million tonne, UltraTech would be the single-largest player in the world’s second-largest cement market after China.

According to people with direct knowledge of such matters, Essel Mining managing director Ravi Kastia and KK Maheswari, head of global chemical business, are the two names doing the rounds. Both declined to comment. An Aditya Birla Group spokesperson declined to comment on the leadership issue.

The group is scheduled to announce details of the restructuring, post a board meeting on Saturday. ET on Friday has already reported that Grasim will likely to sell its cement business to UltraTech in a deal estimated to gross $2 billion. UltraTech, 55% owned by Grasim and its promoters, could buy the latter’s cement plants and issue shares worth more than Rs 9,500 crore to its parent in the deal.

Mr Kastia has been associated with the group for the past 18 years and has held senior management positions within the conglomerate, before being made MD of the unlisted Essel Mining.

Mr Maheshwari, who has been with the group for 23 years and was responsible for setting up the first corporate finance division in the erstwhile Indian Rayon and Industries (now renamed as Aditya Birla Nuvo), is one of the senior-most group executives. He has played key roles in most group’s businesses and has also been active in all of the group’s acquisitions.

Although the Birlas acquired UltraTech in 2003, a single entity for cement within the group had been put off till now mainly due to tax issues and also due to lack of a clear agreement on the leadership of the consolidated cement business, said people with knowledge of the development.

While the general retirement age in the Aditya Birla Group is 60 years, the directors have more flexibility. Mr Mishra is 62 years old now. However, people within the conglomerate, said that it is likely that Mr Mishra would continue for at least six months to ensure that the restructuring process is completed.

“The entire restructuring exercise is complex and will take time. The group won’t think of doing two things at a time and will look at the leadership issue after the process is over,” said one person involved in the development.

 

[RPK]

It's destination Lanka for Indian cos - India Business - Business - NEWS - The Times of India

CHENNAI: With the end of the ethnic war in Sri Lanka, the Rajapakse government is dovetailing its policies to become a near shoring destination of
India. The idea is to move into business spheres other than just tea and hospitality. As a first step in attracting investments in the former war zones of eastern and northern Sri Lanka, the Lankan government recently announced a 15-year tax holiday for companies setting up operations in these regions.

Among those who are queuing up with their investment bags are NTPC, Cairn, L&T, Purvankara and a host of IT companies.

NTPC is expected to sign an agreement in the next few days for setting up a 1,000 Mw coal based power plant in Trincomalee with an investment of $500 million, while Cairn India has got approvals for oil exploration projects at a cost of $400 million. Infrastructure companies Larsen & Toubro and Puravankara are also headed to the island nation for setting up shopping complexes and housing projects. BSNL recently bid for the Sri Lankan operations of Luxembourg-based mobile service provider, Millicom International.

Lanka is seeking tech investments too. Meetings with IT majors like mPhasis, HCL and Accenture to set up their delivery centres in Sri Lanka have just concluded. “We have met IT companies like HCL, Mphasis and Accenture for setting up delivery centres and BPOs in Sri Lanka. They have shown interest,” C Ignatius, director, Board of Investment, the Sri Lankan government’s investment promotion agency said.

 

[RPK]

L N Mittal set to exit $20bn Indian steel project - India Business - Business - NEWS - The Times of India

LONDON: World's largest steelmaker ArcelorMittal may pull out of its USD 20-billion plan to build steel plants in Jharkhand and Orissa, due to
delays in land acquisition process, and look elsewhere in the country for the projects, its chief Lakshmi Mittal has said. ( Watch Video )

"If we cannot make progress in these two sites we will have to abandon the idea of starting the projects there and look for other places in India for our expansion," ArcelorMittal chairman and CEO Mittal told British daily Financial Times.

The newspaper quoted Mittal as saying that the delays in persuading farmers and others to sell the land required for building the plants were "unacceptable" to the company.

Though the preparatory work has been under way for two years, the financial effect of abandoning the plants would be "negligible" since no land had so far been acquired and no building work has been done, Mittal added.

ArcelorMiital, which last month striked a deal to acquire 35 percent stake in Indian steel firm Uttam Galva as a co-promoter, had proposed to set up two large steel plants with capacity of 12 million tonnes a year in Jharkhand and Orissa.

"Lakshmi Mittal is close to pulling out of a USD 20 billion plan to build two large steel plants in India - the centrepiece of efforts by one of the world's most prominent industrialists to expand in the country of his birth," the Financial Times said.

Mittal told FT that the people in India had to be "educated" into supporting gradual industrialisation, including the need to build new steel plants on agricultural land.

"Although Mittal said he was still committed to building at least one steel plant in India, abandoning his plan to have two sites producing between them about 24 million tonnes of steel a year by around 2015 would be a big blow," the newspaper said.

The decision to abandon the said plants would delay by several years Mittal's plans to have a sizeable presence in India.

Mittal, whose company has been working on its planned Indian plants for more than two years, thinks that by 2020 India will be making four times as much steel as it does now.

An ArcelorMittal spokesperson, last week, said that the company would look out for opportunities to expand its operational presence in India.

At the same time, the steel giant, which has been created through a slew of takeovers, is also gearing up to re-examine selected M&A opportunities.

 

[RPK]

fullstory


Suzlon to supply wind turbines to Turkish firm

Mumbai, Oct 6 (PTI) Wind turbine manufacturer Suzlon Energy today said it has bagged an order from Turkey-based Ayen Enerji to supply and install 27 units of turbines to generate 57 MW of energy, in a filing to the Bombay Stock Exchange.

The turbines would be installed at the Seferihisar and Mordogan projects in east Turkey, the filing added.

In 2007, Suzlon had forayed into the Turkish wind energy market with an order from Ayen Enerji for supplying turbines.

Shares of Suzlon Energy were trading at Rs 86.50 on the BSE, down 0.69 per cent from previous close.

 

[Pintu]

Reliance Capital sees govt waiver for life insurance co IPO by Nov 15

Reliance Capital sees govt waiver for life insurance co IPO by Nov 15
Newswire18 / Mumbai October 8, 2009, 0:36 IST

Reliance Capital expects a government waiver for floating its life insurance venture’s initial public offering (IPO) by November 15, Chief Executive Officer Sam Ghosh said.

“Insurance Regulatory and Development Authority (Irda) disclosure norms are likely to come by October 31. Considering that, we expect the government’s response (to the waiver) by November 15,” said Ghosh.

Irda is in the process of drafting listing norms for insurance companies and is currently talking to the Securities and Exchange Board of India about disclosures that are to be made mandatory for these companies when they tap the equity market.

Reliance Life Insurance Co, which was launched four years ago, has applied for the waiver due to the Irda directive that specifies insurance companies that have Indian promoters with more than 26 per cent stake, can float an IPO only after 10 years of operations.

Reliance Capital acquired AMP Sanmar Life Insurance Co in 2005, which started operations in 2002. So, the two companies together have been in business for seven years.

According to Ghosh, the company is likely to file draft red herring prospectus for the IPO in the first week of January, depending on governmental and regulatory approvals.

The company plans to divest up to 20 per cent stake — 10 per cent via pre-IPO placement and a further 10 per cent by public issue. The company would also consider a strategic sale of up to 20 per cent.

“Strategic sale will not be to more than three partners, including a foreign player,” Ghosh said. In July, Reliance Capital had said it plans to sell partial stake in Reliance Life Insurance “later this year”, subject to regulatory approvals.

Reliance Life Insurance aims to manage assets worth Rs RS 40,000 crore by March 2013, versus Rs 10,000 crore as on September 30, which would make it among the top three private insurance companies in the country. Currently, it is placed sixth among private sector insurers. Its assets are likely to be Rs 15,000 crore by the end of 2009-10 (April-March) and the company expects to double it by March 2012.

From 2005 until September, the company clocked a 240 per cent growth in assets.

“Most of the growth happens in the third and fourth quarters,” Ghosh said.

Reliance Life hopes to break even by 2010-2011, Ghosh said, adding total premiums are expected to be Rs 20,000 crore by March 2012 compared with the Rs 10,000 crore target for the current financial year. The insurer plans to grow organically by floating nine products by March and would focus on health insurance products, he said.

Ghosh expects the insurance industry to grow 15-20 per cent this year and by over 25 per cent in 2010-2011.

Reliance Capital shares ended at Rs 908.90 on Wednesday on the National Stock Exchange, up nearly 1 per cent from Tuesday.

 

[Pintu]

domain-b.com : Tata Motors set to launch Rs5.5-lakh 'Manza'

Tata Motors set to launch Rs5.5-lakh 'Manza'

08 October 2009

Tata Motors Ltd, the maker of the world's cheapest car, `the Nano,' is all set to launch the cheapest luxury car - the Tata Manza. A re-designed version of the company's Indica Vista, it will be launched on 14 October, just ahead of the Diwali buying season.

Despite its high-profile launch, the unrealistically priced Nano is hardly visible on the road - although the company has garnered a good amount of money from advance bookings for its 'magic car'.

The Manza carries a more honest price tag of Rs5.5 lakh to Rs7.5 lakh, depending on the model and trimmings. In order to ensure an exciting launch, the company has initiated a contest, which would give the participants an opportunity to own a Manza for a day - not self-driven, of course, but with a company provided 'chauffeur'. Lesser winners will be given gift vouchers.

The Manza is touted as a 'luxurious, comfortable car' with a spacious cabin, alloy wheels and steering-mounted audio controls similar to the Vista. The ****ey or 'boot' is merged in the overall shape, rather than as a standout space as in the Vista model. The car will also feature alloy wheels, adding to rider comfort.

The engine is sourced from Italy's Fiat, and will come in two options -1.4L petrol engine capable of delivering 95PS and a 1.3L multi-jet engine that pumps out 90PS, according to a company release. Projector headlamps will help differentiate it from the Vista.

The car is expected to compete with Maruti Suzuki's Swift Dzire, Ford's Ikon and Fiesta, and Mahindra Renault's Logan.

 

[ajay_ijn]

SAIL emerges as most profitable steel company in the world
SAIL 'steels' the show, tops world in profit stakes

Government-owned Steel Authority of India Ltd (SAIL), the country’s largest steel producer, has emerged as the top profit-making steel company in the first six months of the calendar year, leaving behind global majors like ArcelorMittal, Posco, Bao Steel and Nippon. Sector analysts expect this trend to continue at least for the next two-three quarters.

An analysis of the financial performance of nine leading global companies during January-June 2009 showed that only three of them registered profits, with SAIL’s profit being the highest.

SAIL reported a net profit of $571 million in the January-June period of 2009, while other steel companies reported huge losses. Only Korean steel producer Posco managed to come close to SAIL by reporting a net profit of $564 million in the first half of the current calendar year. Tata Steel, another major Indian producer, also managed to do reasonably well, with a net profit of $458 million in the said period.

SAIL, with a 14-million-tonne (mt) capacity, is the world’s 21st steel company in terms of manufacturing capacity — much behind sector leader ArcelorMittal, which has a capacity of 103 mt. The L N Mittal-owned company reported a net loss of $1,855 million during January-June 2009, while Nippon reported a loss of $1,043 million, Severstal a loss of $944 million and US Steel a loss of $831 million. However, Bao Steel managed a profit of $98 million.

SAIL has improved its operational efficiencies on account of various measures, like rationalisation of manpower and enhancement in techno-economic and operational parameters, including coke rate, energy consumption, blast furnace productivity, etc. SAIL is also a zero-debt company and, therefore, there is no interest cost pressure on its balance sheet.

“For the next two-three quarters, SAIL is poised to perform better than other global players. This is mainly due to the robust domestic consumption growth that is being witnessed month after month. Moreover, domestic prices have remained stable. While SAIL is operating at full capacity, the capacity utilisation among other global biggies is just 50-60 per cent. Global giants are likely to see a recovery only after two-three quarters,” an analyst said.

According to a SAIL executive, new initiatives to achieve a better product mix and increase production of value-added steel have resulted in better realisation. Adoption of innovative practices suggested by employees across SAIL plants resulting in substantial savings, the executive added.

again it reinforces the stereotype that State owned cos perform best during economic downturn.

 

[Pintu]

L&T raises $600 mn for infra play- Stocks in News-Stocks-Markets-The Economic Times

L&T raises $600 mn for infra play
9 Oct 2009, 0315 hrs IST, ET Bureau

MUMBAI: Larsen & Toubro (L&T), the country’s largest engineering company, has raised $600 million (about Rs 2,800 crore at current exchange rate) through sale of shares and bonds to institutional investors, as it gets set to cash in on a government drive to build infrastructure.

The company expects to land contracts worth Rs 30,000 crore in the next three years as part of the government’s plan to spend $500 billion in infrastructure projects, and the new funds will cushion it from any market fluctuation for the next 15 months, said executive vice-president for finance R Shankar Raman.

“If something unfavourable happens to the market like last year, our fund requirement is taken well care of,” he said.

L&T raised $400 million (Rs 1,867 crore) selling shares to qualified institutional buyers at a 1% discount to the stock’s closing on Wednesday at Rs 1,660, and $200 million (Rs 934 crore) through foreign currency convertible debentures at a 15% premium.

The fund raising will dilute equity by 1.9%, Mr Raman said. Citigroup was the advisor to the fund-raising exercise.

According to Mehraboon Irani, senior VP (equity), FCH Centrum Wealth Managers, the equity dilution will not be matter of concern for a company of L&T’s size.

“The L&T stock is the best option for exposure to infrastructure. However, in the short term, the stock may tend to underperform, considering that it has more than doubled over the past six months.”

The L&T stock slipped 1.65% to close at Rs 1,649.80 in a flat Mumbai market on Thursday. The stock has more than doubled this year, compared with a 76% rise in the bellwether BSE Sensex.

The latest round of FCCBs — the third such issue by L&T in past four years — will carry a coupon rate of 3.5% and a tenor of five years. The holders reserve the right to convert the bonds into equity before five years. Since the instrument is priced at a 15% premium, or at Rs 1,909, it is expected that the bond holders will convert the bonds into equity only if the L&T stock goes beyond the price level. Otherwise, L&T will redeem the bonds.

L&T had raised $400 million by selling FCCBs in 2005 and 2006.

Domestic companies have so far raised $6 billion through QIPs and have plans to raise another $8 billion. FCCBs, which lost their shine last year because of the market crash, are making a comeback. Two weeks ago, Sesa Goa, an iron ore exporter, and Welspun Gujarat Stahl Rohren, a line pipe maker, raised $630 million through FCCBs.

Indian corporates have raised $15 billion through largely unsecured FCCBs in the past five years. Of this, bonds worth $4 billion have either matured or have been bought back by promoters, leaving $11 billion of outstanding papers. About 400 such issues are set to mature in the next 24 months.

 

[NSG_Blackcats]

Fortis opens Rs 997-cr rights issue​

New Delhi: Hospital chain Fortis Healthcare's rights issue, through which the company intends to raise up to Rs 997 crore, opened on Friday. Fortis Healthcare will allot two shares for every five equity shares held by existing shareholders on rights basis at a price of Rs 110 a piece. The company will issue over 9.06 crore shares under the rights offering to its existing shareholders. The offer closes on October 15, Fortis said in a public announcement today.

The rights issue has been on the anvil since last year but unfavourable market conditions had prevented the company from hitting the market. The company will use the proceeding from rights issue for funding some of its greenfield projects, besides redemption of preference shares, repayment of short term debt, upgrade existing facilities and part funding for acquisition of 10 hospitals from Wockhardt Hospitals, Fortis had earlier said.

Link

 

[Pintu]

Indiabulls' IPO a risky bet for investors- Investor's Guide-Features-The Economic Times

Indiabulls' IPO a risky bet for investors
12 Oct 2009, 0457 hrs IST, ET Bureau

Indiabulls power (IPL) has come out with its initial public offering (IPO), with an issue of 39.07 crore equity shares, which includes 5.09
crore of green shoes option. At the offer price of Rs 40-45 per share with face value of Rs 10 each, the issue would mop up Rs 1,560-1 ,760 crore, and would represent 19% of post dilution equity capital. The proceeds would go for power projects at Amravati, Phase I and at Nashik.

The two projects would require a total of Rs 3,200 crore of equity funding, and the company would need to put in additional funds in these projects. Considering the status of its projects, projected timelines and funding plans, the stock does not look attractive enough. Investors may wait for the listing, and can consider the stock in the secondary market.

COMPANY’S BUSINESS

Amravati, Phase I project has two units with a total capacity of 1,320 MW, and would require an investment of Rs 6,900 crore, of which only Rs 156 crore has been spent so far as per the prospectus. The company plans to fund the project with Rs 5,166 crore of debt, which is 75% of total cost. While it has received final sanction from the lenders, it is still to enter into formal financing agreement. The company has received assurance for fuel linkage and has also awarded EPC contract for the project.

The expected commissioning of the two units in this phase is June ’12 and Sept ’12. Nashik project has 7 units with total capacity of 1,335 MW, requiring an investment of Rs 6,048 crore. While the company has received the fuel linkage for this project, it has not yet awarded the EPC contract for this project.

Company has another project at Bhaiyathan, with a capacity of 1,320 MW where it has awarded the EPC contract. The company has received captive coal blocks for this project, which is estimated to have reserve of 350 mn tonnes, enough for the life of this project. The estimated investment for the project is Rs 6,796 crore and expects to commission the two units in Dec’ 12 and March’ 13. However, progress related to mining of coal from the block is still awaited.

Apart from these projects, it is developing Amravati Phase II, another project in Chhattisgarh, both having a capacity of 1,320 mw, which are at initial stage, and would require about Rs 5,600 crore each. It also plans to develop 4 hydel units in Arunachal Pradesh totaling 167 mw.

VALUATION AND OUTLOOK:

Since the company is still to begin its operations, it has no income from operations and earned Rs 141 crore as other income in FY09. As such, it cannot be evaluated based on price-earnings model. Further, the lackluster response of the market , after the listing, to the previous two IPOs from power generation companies in the last few months, means the market is not ready to buy the power generation stocks based on the future expectation.


The uncertainty is higher in this case as the first commissioning is almost 3 years away. Further, the progress in each project is still limited, which may get further delayed, as there is no formal agreement for debt financing so far. Further, it will require a total of Rs 7,800 crore of equity for its announced projects, at 75:25 debt-equity ratio.
With a current net worth of Rs 2,400 crore, and the first commissioning expected only by June ’12, there may be more equity dilution at a later stage. As a result, the stock does not seem to have enough attractiveness currently, from an investment perspective. Investors may wait for it to list and find its level, before taking exposure.

IPO Details

Price Band: Rs 40-45

Net issue size: Rs 1,563-1 ,758 crore

Date: October 12 - 15

 

[Pintu]

Axis Bank , South Indian Bank result declared

South India Bank's profit up by 40% , Business Standard Link:

South Indian Bank net profit up by 40%

and

Axis bank growth slowed down , Business Standard Link :

http://www.business-standard.com/india/storypage.php?autono=373041

Regards

 

[Pintu]

http://www.ptinews.com/news/327885_Indiabulls-Power-IPO-subscribed-6-times-on-1st-day

Indiabulls Power IPO subscribed 6 times on 1st day

STAFF WRITER 19:54 HRS IST

Mumbai, Oct 12 (PTI) The initial public offering of Indiabulls Power got subscribed nearly six times on the first day of issue today as institutional investors flooded the counter with maximum number of bids.

The issue received bids for 165.67 crore shares against 27.86 crore shares on offer, thereby garnering a demand of 5.95 times the shares on offer, as per data available on the National Stock Exchange.

The share sale has attracted five anchor investors who subscribed to 18 per cent of the issue. The company raised over Rs 316.46 crore from these strategic investors.

The portion reserved for qualified institutional buyers got subscribed 10.86 times, while the non-institutional investors bid for over two times shares reserved for them , NSE data shows. The issue will close on October 15.

 

[Pintu]

Indiabulls Power issue price seems little stretched: IFCI Financial- Views/Recommendations-Stocks-Markets-The Economic Times

Indiabulls Power issue price seems little stretched: IFCI Financial
12 Oct 2009, 1109 hrs IST, ET Bureau

MUMBAI: IFCI Financial Services in its IPO update has remarked that the issue price of Indiabulls Power seems to have been little stretched.

“Since Indiabulls Power (IBPL) has no operating track record of setting up power projects or in the business of power, we are of the opinion that IBPL valuation prima facie cannot be compared with peer group companies with established track record.

On comparing IBPL with peer groups, the EV/MW looks to be on the higher side. While others are trading at a multiple of 45x – 57x EV/MW, IBPL would be available at a multiple of 133x EV/MW at lower price band and a multiple of 140x EV/MW at upper price band. However, if we take the 2,655 MW capacity in respect of which IPO is being raised, we derive EV/MW multiple of 67x at lower price band and at 70x at upper price band.

Although on a Price / Book Value (P/BV) basis and post IPO subscription; IBPL looks relatively cheaper on this account, we are however of the opinion that the P/BV does not include the inherent project risk and accordingly we have assigned a risk premium of 40% (related to project and execution risk) to P/BV derived above and accordingly the revised P/BV works out to be at 2.8x at lower price band and 3.2x at upper price band.

Accordingly, the issue price seems a little stretched, given the fact that established companies like NTPC and Tata Power are available at a fairly cheaper value than what IBPL is offering through its IPO,” the note said.

 

[ajay_ijn]

StanChart seeks local listing
The Telegraph - Calcutta (Kolkata) | Business | StanChart seeks local listing
probably for the first time a foreign company is seeking to raise money in Indian capital markets.

till now it was the other day, ADRs, GDRs.