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

Following the successful IPO done by Religare Enterprises IPO, Edelweiss Capital Limited is also coming out with an IPO issue through the book building route. Edelweiss Capital Limited is a competitor of Religare Enterprises Limited. Edelweiss Capital IPO opens for subscription on November 15, 2007 and will close for subscription on 20th November 2007. The face value of shares of Edelweiss Capital Limited offered through the proposed IPO would be Rs. 5 each. Edelweiss Capital Limited has fixed the price band for the IPO between Rs. 725 and Rs. 825 per share. Post IPO, the shares of Edelweiss Capital Limited will be listed both on NSE and the BSE. The lead managers for the Edelweiss IPO issue are Kotak Mahindra, Citigroup Global Markets and Lehman Brothers. Intime Spectrum is the registrar for the IPO. CRISIL has given a grading of 4/5 for the Edelweiss Capital Limited IPO. However keep in mind that these ratings don’t make much sense. They only tell investors how the company is placed fundamentally, with respect to its competitors. The rating does not take into account the valuation of Edelweiss IPO. Apparantly, Edelweiss IPO has been priced more aggressively compared to the religare IPO. But in such a strong bull run, no matter how aggressively a company prices its IPO, its bound to get oversubscribed heavily. A decision on whether to apply in the Edelweiss Capital IPO or not can be taken on Nov 20, after looking the Edelweiss IPO subscription details till Nov 19, 20007. For updates on the Edelweiss IPO subscription details and Edelweiss IPO allotment status do visit this site often.

Religare Enterprises is likely to provide investors with very good gains on listing. Religare IPO closes for subscription tomorrow. As on the penultimate day the subscription figures of Religare IPO stand as follows. Retail category has been subscribed by 13.38 times while institutional investors category has been subscribed by a whooping 46.23 times. Overall, the Religare IPO has been subscribed by over 32 times. Though Religare IPO is likely to list at a huge premium to the issue price, I’m not gonna invest in the IPO. I’m quite sure the IPO will be oversubscribed close to 100 times tomorrow. Thos who believe they have lady luck favouring them, can go ahead and apply in the Religare IPO for listing gains. I planned to apply aggresively in the Religare IPO but I’m disappointed looking at the heavy subscription it has managed to get. Looks like all IPO’s opening in the near future will get heavily oversubscribed. This will cause greedy promoters to fix the price band at a very aggressive valuation and hence it would be a double whammy for investors applying in IPO’s - Low listing gains as well as very low allotment chances.

Barak Valley IPO which is closing for subscription tomorrow has already been subscribed by about 4 times already. Both retail and institutional investor category have been oversubscribed heavily. Barak Valley IPO is likely to provide excellent Listing Gains for investors applying in the IPO for the purpose of listing gains. However, since the IPO is a small sized IPO, it is likely to get heavily oversubscribed and hence allotment will be tough to get. With this in mind, investors can apply in the Barak IPO for listing gains.

Veer Energy and Infrastructure Limited has informed the stock exchanges that the board of Veer Energy will meet on November 03, 2007 to consider calling an EGM to get the shareholders approval for a proposed bonus issue in the ratio of 1.8:1 (for every 1 shares held, 1.8 bonus shares will be given). To put it in whole numbers, shareholders will get 9 bonus shares for every 5 shares of Veer Energy that they hold on the record date for the bonus issue. The Veer Energy Bonus issue record date is yet to be announced.

The record date for the DMC International Bonus Issue has been announced. The DMC International Bonus Issue Record Date has been fixed as 13 November, 2007. Sometime back the board of DMC International had recommended an issue of bonus shares to the shareholders of DMC International in the ratio of 1 : 1 (1 bonus share for every 1 existing share held)

The Circuit Systems IPO Allotment process has been completed by the registrar and has been uploaded to the registrar’s website. The Allotment Status of Circuit Systems India Ltd. IPO can be checked here. The Circuit Systems IPO listing date has not yet been announced. The listing date of Circuit Systems IPO will be updated here as soon as it is available.

EID Parry India Limited has approved the buyback of shares from the shareholders of EID Parry at a maximum price of Rs. 160 per share of face value Rs. 2 each. The shares of EID Parry did not participate in the strong bull run that the Indian stock markets have been witnessing. This was mainly because the sugar industry in India was not doing well. However, with the announcement of the buyback offer price, the share prices of EID Parry India zoomed up by over 3% today. The record date (effective date) for the buy back offer has not yet been anoounced

Barak Valley Cements IPO seems to be a better bet compared to the religare IPO in terms of getting decent allotment. Barak Valley Cements IPO has also been oversubscribed but not as heavily as the religare IPO. Overall, Barak Valley IPO has been subscribed by 1.18 times (oversubscribed 0.18 times). The retail investor category has been subscribed by just 0.08 times, fueling hopes of decent allotment. November 01 is gonna be an interesting day with both the Barak Valley IPO and the religare IPO closing for subscription. Interestingly, in a remarkable coincidence, both the IPO’s have been oversubscribed on the very first day itself.

Religare Enterprises IPO has done extremely well on Day 1 and has been lapped up by investors. Foreign investors especially, seem to be very bullish on the Religare Enterprises IPO. At the end of day 1 of subscription, the Religare Enterprises IPO has been subscribed by about 6 times the IPO issue size (oversubscribed by about 5 times). Suprisingly, Retail Investor category has also been oversubscribed on day 1 itself. I have a feeling Religare Enterprises IPO is gonna see very heavy oversubscription.

Barak Valley Cement IPO is another case of an IPO starting to see huge ativity on the grey markets before it even opens for subscription. The only way to avoid IPO Grey Market from flourishing is to allow companies coming with IPO’s to trade in the futures market of recognised stock exchanges. This will also act as a good listing price discovery mechanism. The Barak Valley Cement IPO Grey Market Premium is Rs. 10. Barak Valley IPO opens for subscription on Nov 01, 2007.