IPO Update

KNR Construction Slips 9% On First Day

The share of KNR Constructions has got listed today at Rs189 on the NSE against its issue price of Rs 170. However, the scrip ended at Rs 154 slipping by almost 9% after hitting an intra-day high of Rs210 and a low of Rs151.

The company came out with an initial public offering of 78.74 lakh equity shares. The IPO of the company was subscribed 1.25 times.

Hyderabad-based, KNR Constructions provide engineering, procurement and construction services across roads & highways, irrigation and urban water infrastructure management.

KNR Constructions Lists With 23.52% Premium On NSE

Infrastructure project development company KNR Constructions has got listed on Monday, at Rs 210 on the National Stock Exchange (NSE), with a premium of Rs 40 against its issue price of Rs 170.

But, the stock was not capable to continue the benefits and fell below the issue price.

At 10:10 am, KNR Constructions stood at Rs 164.50. It also touched a high of Rs 210 and low of Rs 155.60 in the few minutes.

At the same time, the stock stood at Rs 163.90 on BSE. It also touched a high of Rs 199 and low of Rs 155.65.

KNR Construction to list on Feb 18

KNR Construction Ltd. would be ringing on the BSE and NSE on Monday,
February 18. The company came out with an offering of 78.74 lakh equity
shares at the price band Rs. 170 and Rs. 180 per share through book
building process.

The initial public offering of the company was subscribed 1.25 times. The issue opened on January 24 and closed on January 29.

KNR Constructions provides engineering, procurement and construction
services across roads & highways, irrigation and urban water
infrastructure management.

Emaar MGF withdraws Initial Public Offer due to low investor response

Emaar MGF has withdrawn its Initial Public Offer as the investor sentiment remain weak. Due to lack of investor interest in IPO, the company had to revise its issue price band twice. The company also extended its IPO date two days earlier.

As per NSE data, the issue was subscribed 0.83%. The retail investor portion was subscribed only 0.47%.

Emaar MGF is a joint venture between MGF Development group of India and Emaar Properties of Dubai. The Real estate major had plans to fund its various ongoing projects and acquisition of land with the money raised after public issue.

Wockhardt Hospitals withdraws IPO due to poor investor response

Wockhardt Hospitals Limited has called off the initial public offer due to poor response from investors. Wockhardt Hospitals received bids for only 20% of the proposed issue of 25 million equity shares. The price band for the issue was between Rs.225 to Rs. 260.
Wockhardt Hospitals Chairman Mr. Habil Khorakiwala declined to comment on the development. The company issued a statement today informing that the refunds will be issued within 15 days from the date of close of issue.

Reliance Infratel Files DHRP With SEBI

The tower unit of Reliance Communications, Reliance Infratel has decided to lift Rs 6,000 crore via an Initial Public Offering (IPO), and has registered the Draft Red Herring Prospectus with the Securities and Exchange Board of India (SEBI).

The Anil Ambani group company has decided to offload 10.05% share to the public that sets the company’s valuation at around Rs 60,000 crore. The IPO accompanies that of another group company, Reliance Power that is to be registered on February 11.

Cords Cable IPO Subscribed 4.99 Times On Closing Day

New Delhi-based Cords Cable Industries (CCIL) has received 4.99 times subscription till 5.30 p.m. on closing day.

For subscription, the IPO, which opened on Jan. 21, 2008, has received about 15.40 million bids as against issue size of 3,085,000 equity shares. The price band has been fixed between Rs 125-135 per share.

The company’s shares has also received “IPO Grade 3/5” from the Indian rating agency, Credit Analysis & Research (CARE).

Reliance Power Fixes IPO Price At Rs 450

After receiving an overwhelming reaction for its initial public offer (IPO), Anil Dhirubhai Ambani Group (ADAG) Company Reliance Power has fixed the issue price at Rs 450 per share.

The company has also decided to offer shares at a discount of Rs 20 to retail investors i.e. at Rs 430.

Mr. Anil Ambani, Chairman, Reliance Power said, “The company’s board has fixed the issue price at top-end at Rs 450 per share for the Reliance Power issue and for retail investors at Rs 430 per share.”

Pipanav Shipyard to raise 1249 crore through IPO

Pipavav Shipyard Limited proposes to enter the capital markets with a public issue of 8.68 crore equity shares of Rs 10 each through book building process. The company has already filed papers for the proposed issue with the SEBI for the purpose.

SKIL Infrastructure Ltd. is the original founder of the firm. Engineering and construction major, Punj Lloyd Ltd. had acquired 25.1% stake in it for Rs. 4.03 billion in August 2007.

SEBI proposes “New IPO’s not to exceed price band of 25% on listing day”

India's market regulator, Securities & Exchange Board of India (SEBI) has proposed imposition of a price band of 25% on the issue price on the day of listing of initial public offers of issue size of up to Rs 250 crore.

The proposal has been put out after SEBI observed that in case of several such IPOs where the stock available for trading, or the free float, is about 25 to 30% of the equity capital of the company, the price does not sustain on subsequent days. This causes big loss to long-term investors. The stock may take a long time to recover to the levels reached on the listing day.