02 Jan 08 UCO Bank IPO / FPO denied
UCO Bank IPO / FPO will not take place. UCO Bank clarified today that it never had any intentions of raising funds through a follow on public issue (FPO). A few weeks back moneycontrol carried a news item mentioning that UCO Bank has plans for an FPO through which it was planning to raise Rs. 450 crores. This news got republished in various leading web portals like livemint and others. With the BoD denying any plans of UCO Bank IPO, I’m suprised as to where moneycontrol got the information that UCO Bank FPO plans were awaiting the Cabinet nod.
24 Dec 07 Manjushree Extrusions FPO Subscription Details
Manjushree Extrusions FPO Subscription will open for subscription on 31 January 2008. Manjushree Extrusions Limited will raise about 25 crores through the follow on public issue (FPO). Manjushree Extrusions FPO will be a fixed price offer and hence there would be no price band for the FPO. The price fixed for the FPO is Rs. 45 per share of which Rs. 10 would go towards paid up capital and Rs. 35 will go to the share premium account. Manjushree Extrusions FPO closes for subscription on February 06, 2008. Updates on Manjushree Extrusions FPO Subscription Details and Manjushree Extrusions FPO allotment will be posted here frequently.
02 Dec 07 LIC Housing Finance FPO likely in Jan 2008
LIC Housing Finance FPO is likely to get the company funds to the tune of 500-600 crores. With the IPO market doing so well, who wouldn’t want to raise capital! LIC Housing Finance announced its intention to raise funds from the capital market recently when it announed its quaterly results for the previous quarter. The directors of LIC Housing Finance announced their intention to go in for a pre IPO private placement prior to the FPO. LIC Housing Finance IPO details including the subscription details, allotment status and listing date will be updated here as and when more information is available on the same.
07 Oct 07 Bank of India FPO (BOI FPO)
Bank of India (BOI) is likely to come out with a follow-on public issue (FPO) early next year. At present the government of India owns about 70% stake in Bank of India (BOI). After the BOI FPO, the government’s stake in Bank of India is expected to be diluted by about 5%. IPO’s are a cheap source of funds for banks. At a time when interest rates are at their peak, it makes sense for banks to come out with IPO’s which will give them access to cheap funds and thus giving them a better Net Interest Margin (NIM). Bank of India FPO, if successful, will encourage other banks to follow suit.
04 Sep 07 State Bank (SBI) FPO likely to be postponed
State Bank of India’s (SBI) follow-on public offer (FPO) is likely to be postponed to next year. RBI has asked State Bank of India (SBI) to postpone its FPO till the merger of its associate banks with itself is completed. This merger is likely to take atleast 1 more year and hence the state ban of India SBI FPO is effectively off for the next one year atleast.
03 Sep 07 Ansal Properties and Infrastructure FPO
Delhi based real estate company Ansal Properties and Infrastructure is planning to come out with a follow on public offer (FPO) to fund its real projects. Ansal Properties and Infrastructure has a huge land bank of about 7500 acres and has received private equity funding from leading real estate focussed private equity funds like Noor Capital, HDFC Realty Fund, IL&FS investment managers (IIML) and Citigroup. The Ansal Properties and Infrastructure FPO issue size is likely to be around Rs. 1000 crores.
03 Sep 07 NTPC FPO Buzz
There are rumours floating around in the stock market that NTPC is planning to come out with a Follow-on Public Issue (FPO) in the near future. The issue size of the FPO is said to be around Rs. 6000 crores. Following these rumours hitting the stock markets the share prices of NTPC, which is a low beta stock, today zoomed by about 8%. Government of India which is the largest shareholder of NTPC would be diluting about 5% of its stake through the FPO.
30 Aug 07 IT People FPO Cancelled : IPO Undersubscribed and Withdrawn
IT People FPO has been officially withdrawn. Its been a terrible misfortune for IT People. The IPO got fully subscribed and at one point of time was subscribed by about 1.15 times. However, in the last few hours a lot of institutional investors seem to have withdrawn their bids and the FPO was finally subscribed only 0.97 times (agonisingly short by 0.03 times). If they had know well before the close that the IPO was undersubscribed they could have revised their price band and increased the subscription period. However since the bids were withdrawn at the last moment they seem to have lost the opportunity to act. Its really sad from the company’s perspective. Terrible loss of face for the company as well as loss of money in advertsing and marketing the FPO. However, its good for investors since the IPO, if it was fully subscribed would have most likely listed below the IPO issue price and hence would have given listing losses to IPO investors.
23 Aug 07 Dagger Forst Tools Limited IPO opens for subscription on 27th
The IPO of Dagger Forst Tools Limited, a Yashovardhan Birla Group, will open for subscription on Monday, 27 August 2007 and will close for subscription on Monday, 03 September 2007. The Dagger Forst Tools IPO is a fixed price IPO. The price fixed for the IPO is Rs. 45 per share. As per the Draft Prospectus, Dagger Forst Tools Limited will use the proceeds of the IPO for setting up additional facilities for manufacturing Mechanical tubes and for working capital requirements. The shares of Dagger Forst Tools Limited are already listed on the Bombay Stock Exchange (BSE). The lead manager for the Dagger Forst Tools Limited IPO is Centrum Capital Ltd. The registrar for the Dagger Forst Tools Limited IPO is Intime Spectrum Registry Limited. For updates on the subscription / oversubscription ratio of Dagger Forst Tools Ltd IPO and to know the IPO allotment status, refund details and listing date of Dagger Forst Tools Ltd. IPO, do check this blog regularly.
Dagger Forst Tools Limited IPO Prospectus
For more information, read the Draft Red Herring Prospectus of the Dagger Forst Tools Limited Limited IPO Issue.
08 Aug 07 ICICI Bank – Listing of Partly Paid Shares
ICICI Bank limited has informed the stock exchanges that the partly paid shares of ICICI Bank Limited will be listed on the stock exchanges tomorrow, Thursday, August 9, 2007. Finally investors who invested in the ICICI Bank FPO using the part payment option are being offered an exit opportunity. The fully paid shares of ICICI Bank ended the day at Rs. 884. Since the supply of shares will increase tomorrow, there might be a pressure on the ICICI Bank share prices. After crossing the Rs. 1000 mark a few weeks back, ICICI Bank shares have been steadily falling. ICICI Bank has been one of the worst affected counters in the recent market meltdown. The BSE code for ICICI Bank’s partly paid shares is 532174. A special thanks to Alam for letting me know the listing date of ICICI Bank partly paid shares.
Update : There seems to have been an error regarding the Listing Date. The shares being listed are not partly paid shares but full paid shares of ICICI Bank which have probably been issued due to ESOP’s of ICICI Bank being exercised. I deeply regret inconviniences caused to investors as a result of the wrong information being published. The actual listing date of ICICI Bank’s partly paid shares will be announced here as and when it is available.
22 Jun 07 ICICI Bank IPO allotment status and listing details for Part Payment Option users
ICICI Bank IPO has closed for subscription today. The ICICI IPO has performed very well and has received excellent response from institutional investors. Overall the ICICI Bank FPO has been subscribed by 11.5 times (oversubscribed 10.5 times). However the retail investor category has been subscribed only about 1.1 times the IPO issue size. Hence retail investors who applied using the part payment option will get partly paid shares and will have to pay the balance amount in 2 installments. The first installment needs to be paid on allotment and the second installment needs to be paid on call (within six months from allotment date). Only after both the installments are paid the partly paid shares alloted during the ICICI IPO allotment process would be converted into fully paid shares. Even after reading the red herring prospectus a couple of times, I’m still quite confused as to how exactly this process will work. From whatI understand from reading the RHP, ICICI Bank is likely to list its partly paid shares only 1 month after the allotment status is known and the shares are received in the demat account. So, those with partly paid shares cannot sell those shares on allotment. Regarding payment of installments there have been a few queries regarding how investors will be expected to pay the installments. I doubt ICICI bank will offer online funds transfer facility. The most likely option that would be offered by ICICI Bank is to ask investors to deposit cash in designated ICICI bank branches. If investors do not deposit the funds within the period mentioned, then the shares will be forfeited and the entire investment made in the IPO will be lost. Hence keep an eye for announcements regarding the dates on which the balance amount needs to be paid. You can subscribe to our mailing list (link available in the top right corner of this page) to get alerts intimating you these dates and also receive other alerts regarding the ICICI Bank IPO.
22 Jun 07 ICICI FPO retail investor category oversubscribed?
The retal investor category in the ICICI Bank FPO seems to be close to being oversubscribed. Only after the final subscription figures are out, we could know whether its is oversubscribed or undersubscribed. The situation is similar to that of DLF IPO where the retail category came close to being oversubscribed but was subscribed 0.975% only. As of 6 PM data I feel retail category could be subscribed 0.95% to 1.05%. Anyway, full allotment seems to be likely to all retail investors. This is an excellent arbitrage opportuinty since we would know exactly how many shares will be allotted as soon as the final subscription figures are out and tomorrow (on Monday) we can sell futures and book our profit. However an exact hedge is not possible since the lot size of ICICI Bank in futures is fixed at 350 shares. So three applications of 102 or 108 per application in the ICICI IPO is necessary to get a good hedge, but still it won’t be perfect.
Update : Retail investor category in the ICICI FPO has been oversubscribed as of 9.15 PM. Retail subscription is likely to be between 1.05 to 1.10 times the FPO issue size.
Final Update : The retail category in the ICICI Bank FPO has been subscribed about 1.04 times. However, since the eligible shareholders category has been undersubscribed, the unsubscribed portion in that category will be added to the retail category and hence retail investors will get full subscription in the ICICI FPO.
How arbitrage works : Since there have been lot of enquiries through emails and comments on how arbitrage process mentioned above would work, I’ll try to explain it in a more detailed way here.
Lets assume Mr. X applies in the ICICI FPO in 3 applications of 108 shares each. Total shares alloted to Mr. X will be 324. Since the FPO issue price of ICICI Bank is likely to be around Rs. 930, if you sell a futures contract of ICICI Bank of lot size 350 shares at 960, then you are booking a profit of Rs. 30 + Rs. 50 discount = Rs. 80 per share. So, no matter what price ICICI Bank is tradng when you get your allotment of 324  ICICI Bank shares, you have already booked your profit of Rs. 80 per share at Rs. 960. Hence you just need to reverse your positions by buying futures and selling the 324 shares.
To use the arbitrage strategy one will need to use the July ICICI Bank futures contract and not the june contract. The limitation of using this stragetgy is, you won’t get a perfect hedge since the lot size is 350 and you will be allotted only 328 shares in the FPO. If you have applied for less than 3 applications of 108 shares each you will need to team up with other investors. Do keep transaction costs in mind. Returns won’t be huge and hence this strategy is only for those with a low risk low return strategy.
20 Jun 07 BEML FPO : Public Issue opens for Subscription on June 27
The BEML FPO opens for subscription on June 27 2007 and closes for subscription on July 03 2007. The FPO price band has not yet been fixed by BEML. Looking at the response to ICICI Bank’s FPO, I’m sure BEML will be tempted to fix the price band for its FPO near the current market price of BEML. BEML shares ended the day at Rs. 1140 on the NSE. If the price band for the BEML FPO is fixed near the current market price, then the market price of BEML might increase. Time to buy BEML shares in the secondary market ahead of its FPO?
15 Jun 07 ICICI Bank Public Issue : Use the Part Payment Option
ICICI Bank will be offering part payment option for retail investors applying in its follow on public issue (FPO). Unlike the DLF IPO, ICICI Bank will be listing its partly paid shares along with the fully paid shares (which are already listed and traded on NSE and BSE). This sounds interesting to me. So unlike the DLF IPO retail investors don’t have to think twice before going for the part payment option in the ICICI Bank public issue. During a coversation with a friend, I was told that there is a catch in using the part payment option. According to him, since only retail investors would have partly paid shares and most of them would like to sell them on listing, there would be higher selling pressure here than in the fully paid up category. However there is a flaw in this logic. If the same asset class trades at two different valuations, then there is an arbitrage opportunity and hence arbitrageurs will enter the picture. This will make sure that the price difference between the partly paid ICICI Bank shares and the fully paid ICICI Bank shares is negligible. Hence retail investors can safely use the part payment option for applying in ICICI’s public issue. This is the third time ICICI Bank is raising funds through a public issue. Given below are a list of features which make the ICICI Bank public issue very attractive.
- Upto 5% discount to the FPO issue price (only for retail investors)
- Part Payment Option (only for retail investors)
- Green Shoe Option
- 5% Reservation to existing shareholders (record date June 13th)
ICICI Bank Public Issue Price Band : ICICI Bank has fixed the price band for its public issue between Rs. 885 and Rs. 950 which I must admit is on the higher side. But the good news is that Retail Investors will get a discount of Rs. 50 per share on the Issue Price fixed by ICICI Bank.
ICICI Bank Public Issue Payment Options : ICICI Bank is offering two payment options for retail investors investing in its Public Issue. Under the first option retail investors need to pay Rs. 250 per share on application, Rs. 250 per share on allotment and the remaining amount on call. ICICI Bank reserves the right to call the balance amout any time within 6 months from the date of allotment. Under option 2 Retail investors should pay the full amount less the Rs. 50 discount offered to retail investors. Under the first option, I wonder if the ICICI public issue gets oversubscribed, ICICI Bank will adjust the application money and the call money and give us fully paid up shares. Any clarifications? Anyone?
14 Jun 07 ICICI Bank FPO : Retail Investors to get 5% discount
ICICI Bank seems to be highly retail investor friendly and seems to have a soft corner for small investors. Just like the discount offered in its previous FPO (Follow on public issue), ICICI Bank will be offering retail investors a similar 5 % discount in the present FPO. This makes the ICICI Bank FPO very attractive to small investors since they already have a 5% upside potential on the table. This discount and the Green shoe option (if exercised) will make the FPO very safe for retail investors. The price band for the ICICI Bank FPO has not been fixed yet. ICICI Bank prefers to wait and look at the response the DLF IPO gets before deciding on the price band for their FPO. So, if DLF IPO does well, ICICI Bank will fix a higher price band for their FPO. On the other hand if the DLF IPO does not do well, ICICI Bank might be a bit more conservative in fixing the price band for the FPO issue. The ICICI Bank FPO’s price band will be made public on Monday June 18th which is just one day prior to the ICICI Bank FPO opening for subscription.
