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

The share prices of Rajesh Exports zoomed after the company announced that the board of Rajesh Exports would consider an issue of bonus shares and a stock split as well. Rajesh exports which is a leading jewellery trading house said its board would meet on October 22 to consider a 2:1 stock split by splitting the face value of the company’s share from Rs. 2 each to Rs. 1 each. The board will also consider a bonus issue. The record date for the bonus issue as well as the stock split will be announced by the board of Rajesh Exports on October 22 after the board meeting is over.

The record date for the Rajesh Exports Bonus Issue and Stock Split has been fixed. Rajesh Exports Bonus Issue record date has been fixed as February 05, 2008 and the bonus issue ratio is 2:1. Rajesh Exports Stock Split Record Date has been fixed as February 05, 2008 for the sub division of shares in the ratio of 2:1

Reliance Energy is about to file the draft red herring prospectus (DRHP) with SEBI for the Reliance Power IPO. The shares of Reliance Energy touched an all time high today on rumours of Reliance Power IPO. Reliance Power is a 51% subsidiary of Reliance Energy. Reliance Energy and the other reliance groups companies have witnessed a strong rally in their share prices in the past few trading days. Reliance Power IPO is tipped to be one of the largest IPO’s to hit the capital market. The Reliance Power IPO is expected to raise over 11,000 crores making it larger than the DLF IPO and the ICICI Bank FPO. When contacted, the Reliance Energy management declined to comment on the Reliance Power IPO saying as per the company’s policies they do not comment on market rumours. The lead managers of Reliance Power IPO are Kotak Mahindra Capital and JM Financial. It is said that the DRHP for Reliance Power IPO is likely to be filed in the coming few days.

Brady & Morris Engineering Company was up by 20% and was locked at the upper circuit today after the board of Brady & Morris Engineering approved the issue of bonus shares to the shareholders of Brady & Morris Engineering Company. The ratio of the Brady & Morris Engineering Bonus Issue is 1:2 (1 bonus share will be issued for every 2 equity shares held). Brady & Morris Engineering Company is a small cap material handling equipment manufacturer. The bonus issue will boost the liquidity in the Brady & Morris Engineering counter and hence will catch the attention of high networth investors and institutional investors who prefer to invest only in companies where there is high liquidity and high trading volume.

Saamya Biotech IPO which closes for subscription today, seems to be performing very well. Since Saamya Bio IPO is a fixed price IPO the exact subscription details are not known. However, interacting with a few brokers here in Mumbai, I was told that there is heavy demand for the Saamya Biotech IPO. Infact the brokers are now facing shortage of IPO application forms due to the unexpected demand for the Saamya Biotech India Limited IPO. Looks like Saamya Biotech IPO will provide excellent listing gains. However, since the Saamya Biotech IPO is a fixed price IPO, investors should be preprared to wait for 30 days to get allotment and refund. The listing price of Saamya Biotech IPO will depend on the market conditions at the time of listing. Those investors who are looking at a medium risk, high returns investment opportunity can look at investing in the Saamya Biotech IPO for listing gains.

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.

The State Trading Corporation of India Bonus Issue has been postponed. State Trading Corporation of India which is a Government owned premier international trading house had earlier announced that the board of State Trading Corporation of India will consider an issue of bonus shares to the shareholders of State Trading Corporation of India in today’s board meeting. However, the board of State Trading Corporation of India has informed the stock exchanges that the board will consider the bonus issue in the next board meeting. The market gave a thumbs down to this decision and the shares of State Trading Corporation of India are now locked in the lower circuit.

Circuit Systems India Limited IPO, a fixed price IPO, having an IPO price of Rs. 35 per share opens for subscription today. Since the Circuit Systems India Limited IPO is a fixed price IPO, the subscription details will be available only 2-3 days after the IPO closes for subscription. The allotment process takes twice as much time as it takes for book building IPO’s. Hence investors applying in the Circuit Systems India Limited IPO should be prepared to have their capital locked for over 1 month. The risk of investing in fixed price IPO’s is higher since the real time subscription data is not available. Circuit Systems IPO closes for subscription on Friday, October 05, 2007.

Supreme Infrastructure IPO has performed extremely well. The amount of bids SIIL IPO received in the last couple of hours was unbelievable. Overall, the Supreme Infrastructure IPO has been subscribed by 53 times. The retail investor category in the SIIL IPO has been subscribed by over 48 times (oversubscribed by over 47 times). The institutional investor category has been subscribed by over 52 times (oversubscription ratio : 51.1) while the high net worth individual category has been subscribed by about 65.5 times. There are so many new IPO’s lined up for the next 2-3 months. If the rally in the secondary market sustains, the primary (IPO) market is likely to break all records in 2007.

Maytas Infra Limited (MIL), a construction and infrastructure development company, is coming out with an IPO through the 100% book building process. The Maytas Infra Limited IPO opens for subscription on Thursday, september 27, 2007 and closes for subscription on the following Thursday October 04, 2007. Maytas Infra Limited intends to use the funds raised through the IPO for funding and/or purchasing construction equipment, investing in other companies, building an elevated road in Bangalore, commissioning a coal based power generation plant in Orissa and building a coal washery in Chhattisgarh. The increase in balance sheet size post IPO will also help Maytas Infra Limited to pre-qualify for bidding in larger construction and infrastructure development projects. The IPO lot size of Maytas Infra Limited IPO is 18 shares. The price band for the Maytas Infra Limited IPO has been fixed between Rs. 320 and Rs. 370 per share. After the success of Koutons retail IPO and the IPO’s of construction and infrastructure companies like Supreme Infrastructure India Limited IPO (SIIL IPO) and Consolidated Construction IPO (CCCL IPO), the Maytas Infra Limited IPO is bound to do very well. Post IPO, the shares of Maytas Infra Limited IPO will be listed on NSE and BSE. The lead managers for the Maytas Infra Limited IPO are DSP Merrill Lynch Ltd, JM Financial Consultants Pvt Ltd and Kotak Mahindra Capital Co Ltd. The registrar for the Maytas Infra Limited IPO is Karvy Computershare . For updates on the subscription / oversubscription ratio of Maytas Infra Ltd IPO and to know the IPO allotment status, refund details and listing date of Maytas Infra Ltd. IPO, do check this blog regularly.

Maytas Infra Limited Prospectus
For more information, read the Draft Red Herring Prospectus of the Maytas Infra Limited IPO issue.

Software major Infosys technologies has informed the stock exchanges that the board of directors of Infosys technologies  will meet on Oct 11 to consider the audited Q2 financial results. The market grapevine has it that the board of Infosys technologies might also announce a generous dividend on October 11 2007. Infosys technologies’ result will decide the market direction in the short term.