Joy Alukkas Traders which is the Indian arm of Multinational Jwellery retailer JoyAlukkas will be coming out with an IPO in the near future. In a press release made by Joy Alukkas Traders (India) Limited earlier this week, the Chairman of the company Mr. Joy Alukkas said that the size of the IPO was likely to be about Rs. 400 crores. More details about the Joy Alukkas Traders IPO will be posted here soon.
ACME TelePower IPO has managed to get a CRISIL IPO grade 5. This comes as a suprise since the highly successful future capital IPO as well as Reliance Power IPO did not manage to get such high IPO grades. What CRISIL IPO grade 5 implies is that ACME TelePower Limited is fundamentally much stronger than most of the listed companies. I don’t remember any CRISIL Grade 5 IPO hitting the markets in the recent past. Looks like ACME TelePower IPO will get an excellent response from investors. ACME TelePower IPO Subscription details as well as information on ACME TelePower IPO Allotment chances will be updated here.
Manaksia IPO Allotment for retail investors looks attractive. Retail investor category in the Manaksia IPO has managed a subscription of only 5 times. Hence all investors who have applied in the retail category for more than 5 lots will get a firm allotment in Manaksia IPO. Manaksia IPO is expected to have a very good listing since the QIB category has seen a good subscription. Manaksia IPO Allotment Status will be updated here when its is announced by the company. For Manaksia IPO Allotment Details, do check this space often. Allotment Status of Manaksia IPO is expected to be published in the second week of Jan 2008. Manaksia IPO is likely to have a mid-Jan Listing on the Indian stock markets.
Precision Pipes IPO Subscription Dates have been fixed by the company. Precision Pipes and Profiles IPO will open for subscription on December 17, 2007. The IPO will close for subscription on December 20, 2007. Precision Pipes IPO price band has been fixed between Rs. 140 and Rs. 150 per share. Precision Pipes and Profiles Company Limited will raise about 75 crores through the IPO. As per the DRHP, Precision Pipes and Profiles Company Limited will use the proceeds of the IPO to part fund the setting up of 2 new manufacturing plants. The first plant will be used for manufacturing auto components. The other plant will be used for manufacturing electrical outlet system products. Post IPO the shares of Precision Pipes and Profiles Company Limited will be listed on the NSE. Precision Pipes IPO Subscription details and Precision Pipes IPO Allotment details will be updated here frequently.
There is some good news for investors looking to invest in the Reliance Power IPO. Reliance Power has bagged the Krishnapatnam ultra mega power project and this is likely to make the Reliance Power IPO more attractive to investors. Reliance Power’s bid of Rs. 2.33 per unit was by far the lowest in the auction and hence Reliance Power Limited would be awarded the contract for the Krishnapatnam ultra mega power project, as per sources in the Power Ministry. Apart from the Krishnapatnam ultra mega power project, Reliance Power has also bagged the Sasan and Mundra mega power projects.
In a few months time, the Indian stock markets are likely to receive lots of attention, with the high profile listing of various Indian Premier League (IPL) T20 (20-20) Cricket Teams. Unlike regular cricket matches, in the Indian Premier League, Cricket Teams will not be sponsored by companies, but rather owned by them. This is a very interesting concepet where all the stakeholders incluing cricketers, companies, fans, BCCI, investors etc are all set to benefit. The biggest winners will be cricket players since their earnings are likely to soar. Fans are also excited sine the T20 format is much more interesting than the regular ODI format. I was just wondering the fanfare which will ensue when some of these teams get listed on the Indian stock exchanges. How will their IPO’s be greated. What valuations will these teams command? How will valuation for these cricket teams be done? I guess time will answer these questions. This is going to get very exciting if this proposal to list the cricket teams in the stock exchanges, takes effect in reality without much hurdles.
After the market turmoil that it caused, it is appropriate that the term P-Notes, which is an abbrevation for Participatory Notes, be renamed as Panic Notes. Participatory Notes have caused so much Panic even though no drastic action was taken by SEBI yesterday against P-Notes. After all, P-Notes have not been banned by SEBI. P-Notes, which are offshore derivative instruments issued by FII’s or FII sub accounts which are registered with SEBI, have certain inherent benefits attached with them. The primary benefit of using P-Note is that, the entity or organisation using P-Note need not get registered with SEBI. The only necessity for using a PNote is that the entity should be registered with the registrar of companies or an equivalent body / organisation in the country of its orgin. The second advantage of using Participatory Notes lies in the tax front. Presently, the tax authorities can open the files of FII’s even after a period of 5 years after the date on which the actual transaction took place and penalise them. However, in the case of P-Notes, this is not possible. Also, registering as an FII is a tedious and time consuming process. Getting approval is very tough. Hence many foreign institutions take the PNote route to invest in India. The only argument going in favour of the Government and SEBI in particular, in regulating P-Notes is that it can potentially prove to be a serious threat to the country, both politically and economically. For ex: terrorists are said to be using Participatory Notes to pump in money into India to profit from the strong bull run that Indian stock markets are witnessing. The money thus made is likely to be used for financing terrorist activities. Since the origin of the investments is unknown, if P-Notes are used, it is difficult to trace who is investing and how much is being invested. Another reason for SEBI and the finance ministry to come down heavily on Participatory Notes is because SEBI suspects that certain institutions use the Participatory Notes way to artificially rig the share prices. The Indian stock market is likely to be extremely volatile until the dust settles on the Participatory Notes a.k.a Panic Notes issue.
Mastek today informed the stock exchanges that the board of Mastek has approved the share buyback of Mastek shares at a price of upto Rs. 750 per share by purchasing in the open market. Mastek has set aside Rs. 65 crore for the buyback offer. A buyback offer is a way of promoters or management of a company telling the market that they feel that the share prices of the company are grossly undervalued. Management of Mastek, by fixing the open offer price at Rs. 750 which is way above the current market price of Mastek, are telling the market that the right valuation of Mastek is close to Rs. 750 and definitely not the Rs. 350-400 levels at which Mastek is presntly trading at.
The Indian Stock Market (Both Sensex and Nifty) was down by over 2.5% today on fears of mid term elections. Sonia Gandhi came out with a strongly worded statement today saying that the congress was ready to face elections. Sonia Gandhi also criticised those opposing the nuclear deal by calling them enemies of development and peace. Looks like there are volatile times ahead for the Indian Stock Market, as they start to dance to the tunes of statements made by political leaders.
Leading Indian IT company, Infosys Technologies has zoomed by about 5% today after news that CLSA has maintained the BUY rating on Infosys Technologies hit the markets. Many analysts were expecting CLSA to downgrade its BUY rating on Infosys Technologies in view of the unprecedented appreciation of the Indian Rupee against the American Dollar.