Indian Stock Market News, Information, Tips, Analysis, Reports

Allied Digital Services Limited, a leading Mumbai based IT infrastructure management services provider, is coming out with an IPO through the book building process. Allied Digital Services Limited IPO will open for subscription on 2nd July 2007 and will close for subscription on 5th July 2007. Allied Digital Services Limited has fixed the price band for the IPO between Rs. 170 and Rs. 190 per share. As per the DRHP, Allied Digital Services Limited will use the proceeds of the IPO to fund setting up of a 250 seater BPO center. Post IPO, the shares of Allied Digital Services Limited will be listed on the NSE and BSE. The lead manager for the Allied Digital Services IPO is Anand Rathi Securities. The registrar for the Allied Digital Services IPO is not yet known yet. For updates on the subscription / oversubscription ratio of Allied Digital Services Ltd IPO and to know the IPO allotment status, refund details and listing date of Allied Digital Services IPO, do check this blog regularly.

Allied Digital Services Limited IPO Prospectus
For more information, read the Draft Red Herring prospectus of the Allied Digital Services Limited IPO Issue which will be uploaded here soon.

The subscription for Spice Communications IPO has ended. Spice Communications IPO has performed extremely well. The Spice Communications IPO has been subscribed by about 37.5  times (oversubscribed 36.5 times). Retail category has been subscribed by about 4 times (oversubscribed by about 3 times). Kindly note that the IPO subscription details of Spice Communications IPO are of 5 PM today. I feel Spice Communications Limited will have an excellent listing and will provide good listing gains for those who recieve allotment. Allotment for retail will be high since the retail portion is not heavily oversubscribed. The listing date of Spice Communications Limited is likely to be somewhere in the third week of July. Spice Communications Limited will list only on the BSE since its a negative netwroth company. Investors who have invested in the Spice Communications IPO can expect to receive the IPO refund in the first week of July through ECS (in select cities). Allotment is likely to be made a few days before the listing date. The allotment status of Spice Communications IPO and the details for checking the allotment status online will be posted here as soon as they are available.

HDIL IPO opens for subscription tomorrow. HDIL is primarily involved in rehabiliating slums in parts of Mumbai. The price band for the HDIL IPO has been fixed between Rs. 430 to Rs. 500. With so many good IPO’s, the month of June has been a real treat to investors investing in the primary (IPO) market. Lets wait and watch how the HDIL IPO performs.

BEML IPO has done extremely well on the opening day of subscription. The institutional investor category in the BEML IPO has already been subscribed by about 2.25 times indicating excellent subscription interest from retail investors. Just like the ICICI IPO, the BEML IPO also provides an opportunity for arbitrage (sell 1 futures lot and apply in the IPO). However, you need to be careful about the expected allotment and the lot size of BEML in F&O section. The lot size of BEML is 250 shares. So you need to make sure you get close to 250 shares alloted in the IPO.

The initial public offer (IPO) of Suryachakra Power Corporation limited (HDIL) opened for subscription on Monday 25th June. The Suryachakra Power Corporation IPO has received pretty good subscription interest from institutional investors. The institutional investor category in the Suryachakra Power Corporation IPO has been subscribed by 1.51 times. If the institutional investor category in the Suryachakra IPO subscribes by more than 3 times tomorrow, I would suggest that investors apply for this IPO for listing gains. Listing gains would be huge if the institutional investor category oversubscribes by more than 5 times when subscription for the IPO closes.

Vishal Retail IPO allotment status will be out early next week. One of the readers of this blog had called up intime spectrum and asked them about the date on which the allotment details of Vishal Retail IPO will be out and was told that the allotment status can be checked online early next week. A special thanks to Sharad for passing on this information.

Ankit Metal & Power Ltd IPO closed for subscription today. The Ankit metal IPO oversubscribed in the last few hours of subscription. The final subscription stats are not very encouraging and I feel Ankit metal and power limited is on for a bad listing. Retail investor category in the Ankit Metal & Power ltd IPO has been subscribed by about 2.43 times (oversubscribed by about 1.43 times). The high networth individual category in the Ankit Metal & Power ltd IPO has been subscribed by about 3.8 times (oversubscription ratio : 2.8 times). The institutional investor category remained undersubscribed receiving a subscription of a little less than 0.72 times the IPO issue size (undersubscribed by about 0.28 times). Overall, the Ankit Metal IPO has been subscribed 1.58 times (oversubscribed .58 times). Personally, I feel Ankit Metal & Power Limited will have a poor listing and might provide listing losses. The listing date of Ankit Metal & Power Limited is likely to be somewhere in the third week of July. Ankit Metal & Power Limited will list both on the NSE and the BSE. Investors who have invested in the Ankit Metal IPO can expect to receive the IPO refund in the second week of July through ECS. Allotment is likely to be made a few days before the listing date. The allotment status of Ankit Metal IPO and the details for checking the allotment status online will be posted here as soon as they are available.

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.

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.

Housing Development and Infrastructure Limited, known as HDIL in short is all set to tap the Indian capital markets through an IPO. The HDIL IPO opens for subscription on 28 June, 2007 and closes for subscription on July 03, 2007. The price band for HDIL IPO has been fixed between Rs. 430 to Rs. 500 per share. HDIL’s portfolio and profile is similar to Akruti Nirman. Just like Akruti Nirman, HDIL concentrates on Mumbai’s slum rehabiliation projects. Housing Development and Infrastructure Limited is a group company of Dewan Housing Finance. Housing Development and Infrastructure Limited (HDIL) currently has nearly 10 lakh sq. ft. of land in Mumbai’s popular Business area, the bandra Kurla complex (BKC). The Bandra Kurla Complex is the heart of India’s financial system and consists of majestic skyscrapers of steel and glass housing India’s leading financial institutions like SEBI, National Stock Exchange, ICICI Bank, Citibank and many others. Housing Development and Infrastructure Limited rehabiliated the slum dwellers in Bandra Kurla Complex area by providing them houses elsewhere and hence was allotted part of the land occupied by the slum dwellers. HDIL had sold some of this land to the Adani group for Rs. 2250 crores. The total land bank in possession of HDIL is valued at Rs. 21,500 crores. HDIL is planning to construct a 7 star hotel in the posh Juhu Beach area in Mumbai. Post IPO, the shares of HDIL will be listed both on the stock exchange, Mumbai (BSE) and on the National Stock Exchange (NSE). The lead managers for the HDIL IPO are Enam Financial Consultants and Kotak Mahindra capital. The registrar for the HDIL IPO has still not been announced. For updates on the subscription / oversubscription ratio of HDIL Ltd IPO and to know the IPO allotment status, refund details and listing date of HDIL IPO, do check this blog regularly.

Housing Development and Infrastructure Limited (HDIL) IPO Prospectus
For more information, read the Draft Red Herring prospectus of the HDIL IPO Issue.