Indian IPO Blog

Just Dial IPO oversubscribed 11.63 times

2013-05-22T21:41:00.001+05:30

Just Dial IPO which closed for subscription today, has been oversubscribed 11.63 times on an overall basis. The initial public offer of Just Dial was the largest offer by an Indian Internet company

The issue consisted of 17,497,458 Equity Shares of Rs.10/- each offered under a Price Band of Rs.470/- to Rs.543/- per equity share. A retail discount of Rs.47/- a share being 10% of floor price would be offered to Retail Investors. Also, the IPO has a safety net mechanism in place which would be triggered 20% below issue price

Retail portion of the IPO was subscribed more than 3 times. Justdial Limited (Just Dial) is popular local search service provider in India. Just Dial’s search services are available to users through Internet, mobile Internet, telephone and text (SMS).

Just Dial IPO opens for subscription today

2013-05-20T07:00:00.000+05:30

Justdial Limited (Just Dial), the popular local search service provider in India, is coming up with an Initial Public Offering which opens for subscription today from May 20, 2013.

Just dial is a 24/7 Free Search service operating on a single national number 08888888888 that receives over 130 Million Calls every year. It provides information about local businesses, products and services to the users in over 2000 cities in India. The company has more than 300 million customers using JustDial Services.

Just Dial’s search services are available to users through Internet, mobile Internet, telephone and text (SMS). Just Dial's website http://www.justdial.com/ provides information on movies, restaurants, hotels, travels, etc.

The IPO which would remain open till May 22, 2013, consists of 17,497,458 Equity Shares of Rs. 10 each to be offered in a price band of Rs.470/- to Rs.543/- per share with a bid lot of 25 Equity Shares and in multiples thereof. The shares will be listed on BSE, NSE and MCX-SX

The IPO has been graded with a CRISIL IPO Grade 5/5 which indicates that the fundamentals of the company are strong in relation to other listed equity securities in India.

Just Dial has declared a Retail Discount and Safety Net Mechanism on the IPO as well. Click here to read more on Retail Discount and Safety Net Mechanism in Just Dial IPO

Just Dial to offer Retail Discount, Safety Net

2013-05-19T23:13:00.000+05:30

Just Dial, which is coming up with an IPO from May 20, 2013, has announced that the company will offer a Retail Discount and a Safety Net mechanism for the benefit of investors

The IPO, which received a CRISIL IPO Grade 5/5 indicating strong fundamentals, will remain open for subscription till May 22, 2013 and consists of shares having Face Value of Rs.10/- each, offered in a price band of Rs.470/- to Rs.543/- per equity share. CRISIL assigns IPO grading on a scale of IPO Grade 5 to IPO Grade 1, with IPO Grade 5 indicating strong fundamentals and IPO Grade 1 indicating poor fundamentals. (It may be however, be noted that this grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals)

Just Dial has offered a discount of 10% on the floor price to the retail individual investors. Just Dial has also announced that it will offer a safety net mechanism which will be available to all retail individual investors applying in IPO for amount up to Rs.50,000. The safety net would be triggered in case the price of the share fall over 20% from the issue price

Just Dial IPO Details

2013-05-19T22:58:00.000+05:30

Issue Size: 17,497,458 Equity Shares of Rs. 10

Issue open from: May 20, 2013
Issue closes on: May 22, 2013
Face Value: Rs. 10 Per Equity Share
Price Band: Rs.470/- to Rs.543/- per equity share
Bid Lot: 25 Shares and in multiples thereof
Listing At: BSE, NSE, MCX-SX

Onesource Techmedia IPO Detail

2013-05-19T22:54:00.001+05:30

Issue open from: May 17, 2013
Issue closes on: May 21, 2013
Issue Type: Fixed Price Issue IPO
Issue Size: 2,000,000 Equity Shares of Rs. 10
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 14 Per Equity Share

V Mart Retail IPO Details

2013-02-01T12:41:00.000+05:30

Issue Size: 4,496,000 Equity Shares of Rs. 10
Issue opens from: Feb 01, 2013
Issue closes on: Feb 05, 2013
Price Band: Rs.195/- to Rs.215/- per equity share
Bid Lot: 66 Equity Shares and in multiples thereof
Listing At: BSE, NSE

SEBI may come up with a milder Safety Net Mechanism

2013-01-13T17:11:00.001+05:30

Market regulator SEBI plans to introduce the safety net mechanism in the form proposed by it in the discussion paper. SEBI Chairman U K Sinha had said a few days ago “Our discussion paper is in the public domain. My personal sense is that we must introduce safety net mechanism, may be in milder form, primarily to give a signal not about returning money but that the pricing has been right,”

According to the discussion paper, the safety net mechanism would be triggered in the case of those IPOs whose price has fallen by more than 20 per cent from the issue price. This new safety net mechanism would be a mandatory one.

Market regulator SEBI's board will discuss this week safeguarding a part of funds invested by small investors in IPOs, as also the steps required for dealing with the promoters failing to comply with minimum public shareholding in listed companies. The board of Sebi (Securities and Exchange Board of India) is scheduled to meet on January 18, 2013.

While it may be uncertain as to when SEBI introduces mandatory safety net, it may be a milder form of mandatory safety net that may be introduced. There is already a voluntary safety net mechanism available for IPO investors

Bharti Infratel to list today

2012-12-28T00:30:00.000+05:30

The shares of Bharti Infratel would go live for trades from today, December 28, 2012. The Issue Price under the IPO was fixed at Rs.220/- a piece whereas the shares offered under the IPO were under a price band of Rs.210/- to Rs.240/- a share

Bharti Infratel Limited is a provider of tower and related infrastructure. Bharti Infratel is one of the world's largest telecom tower infrastructure providers which deploys, owns and manages telecom towers and communication structures for all wireless operators. The business of Bharti Infratel and Indus is to acquire, build, own and operate tower and related infrastructure.

CRISIL had assigned a IPO Grade 4/5 to the IPO of Bharti Infratel. This grade indicates that the fundamentals of the Bharti Infratel IPO are 'above average' relative to the other listed equity securities in India. CRISIL assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. However, the IPO had received a weak subscription of 1.30 times on an overall basis chiefly on support from QIB investors. Click here to view PC Jeweller IPO Final Subscription Status

While the share had a grey market discount and also the lack of interest in the issue pushes for a likely listing below issue price, it remains to be seen how much resistance the share throws up to maintain a respectable level closing on the listing day

PC Jeweller IPO lists at 11 percent premium

2012-12-27T21:00:00.000+05:30

Jewellery Retailer PC Jeweller, which listed on the exchanges today, ended the listing day at a premium of close to 11% over the issue price. The shares under the IPO, which was open for subscription between December 10 to December 12, were offered in a price band of Rs.125/- to Rs.135/- per share with a discount of Rs.5/- to Retail Investors and Employees on the Issue Price

PC Jeweller Ltd is an established jewellery retailer in North India. The company's operations include the manufacture, retail and wholesale of jewellery. PCJ offers a wide range of products including gold jewellery, diamond jewellery and other jewellery including silver articles

On the Bombay Stock Exchange, the share touched an Intra-day High of Rs.154.75 and an Intra-day low of Rs.135.5 before concluding the trade at Rs.149, up nearly 10.4 percent over the Issue Price of Rs.135/- a share. The Total Traded Quantity on BSE was 286.13 Lakh Equity Shares with a weighted average price of Rs.146.64 a share

Eco Friendly Food Processing Park IPO opens today

2012-12-27T10:00:00.000+05:30

Eco Friendly Food Processing Park Ltd (EFFPP), engaged in the operations of agriculture and wood plantation, is coming up with an IPO proposing to list shares on BSE SME.

The following are details of IPO:

Eco Friendly Food Processing Park Ltd (EFFPP) IPO Details:
Issue Size: 3,006,000 Equity Shares of Rs. 10
Issue opens on: December 27, 2012
Issue closes on: December 31, 2012
Issue Type: Fixed Price Issue IPO
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 25 Per Equity Share
Listing At: BSE SME

CARE closes listing day at 23 percent premium

2012-12-26T20:08:00.000+05:30

The Equity Shares of CARE Limited, the Indian credit rating agency listed on the exchanges today. These were offered under the IPO at a price of Rs.750/- per share. The share opened in hefty green and touched an Intra-day high of Rs.986.20 on BSE before concluding the listing day at Rs.923.95 (Premium of 23.2 percent over the issue price)

According to BSE website, a total of 48.25 lakh shares were traded on the exchange on the listing day with total traded value amounting to Rs.450.08 Crs. The Wd. Average Price for the day at the BSE was Rs.932.88. Although the share never touched the circuits, the upper circuit limit was set at price of Rs.1,138.80 and lower circuit at Rs.759.25

CARE IPO was open for subscription between Dec 07, 2012 - Dec 11, 2012 and had received overwhelming response from all categories of investors

Click here for CARE IPO Category-wise Final Subscription Status
Click here for CARE IPO - Basis of Allotment

CARE shares to list shares today on December 26

2012-12-26T00:30:00.000+05:30

Credit rating agency Credit Analysis and Research Limited (CARE) will list its equity shares on exchanges today on Wednesday, December 26, 2012. The company had fixed its issue price at Rs.750/- per share.

The IPO had received an overwhelming response with the response from QIB Investors being 45.8 times while non-institutional and retail investors' portion received subscription of 110.96 times and 6.18 times respectively. CARE is one of the leading rating agency in India apart from CRISIL and ICRA.

Stock market analysts are predicting a clear premium listing with opening bell easily above Rs.900/- for the share. While the grey market premium for the share is also up to those levels, it remains to be seen whether the listing would reach or exceed expectations

CARE IPO - Basis of Allotment

2012-12-25T22:04:00.000+05:30

The basis of allotment of CARE IPO is given below:
(Click on the image for a full screen view of Basis of Allotment)

If you are unable to see the basis of allotment properly, click here or log on to following link: http://www.indianipoblog.com/2012/12/care-ipo-basis-of-allotment.html

CARE IPO Allotment Status declared

2012-12-21T10:33:00.001+05:30

The allotment status for the recently concluded IPO of CARE has been declared and can be checked from following link

http://karisma.karvy.com

Bharti Infratel Final Subscription Figures

2012-12-15T23:12:00.003+05:30

Bharti Infratel Limited IPO was finally subscribed 1.30 times despite a rather subdued response from investors. The IPO had received bids for 20,84,92,050 Equity Shares as against 16,05,65,000 Equity Shares offered

The shares were offered in a price band of Rs.210/- to Rs.240/- per equity share with a discount of Rs.10/- per share for Retail Individual Investors and Eligible Employees on the Final Issue Price. Despite this incentive, the Retail Investors were aloof from the issue with the category getting subscribed a relatively tiny 19 percent. The following is the final subscription status of the IPO:

Bharti Infratel IPO crawls to 1 time subscription on Day 3

2012-12-13T22:32:00.002+05:30

The IPO of Bharti Infratel Limited has been receiving muted response from investors. The IPO, at the close of Day 3 of its opening, has managed to crawl to 1 time subscription solely due to rescuing support from QIB Category which is subscribed 2.84 times

The IPO has been subscribed 1.21 times on an overall basis at the close of Day 3, December 13, 2012, which is also the closing day for subscription for QIB Investors. The issue will close for subscription on December 14, 2012 for other category of investors. The response from HNI and Retail investors has been fragile with 0.10 times and 0.06 times subscription in each of these categories respectively

The shares under the IPO are offered in a Price Band of Rs.210/- to Rs.240/- a piece with a discount of Rs.10/- on the final issue price for Retail Investors. Despite this incentive, the retail investors have so far and are also expected to away from the IPO

PC Jeweller IPO Final Subscription Figures

2012-12-13T22:26:00.000+05:30

PC Jeweller IPO has been subscribed 6.85 times on an overall basis. The IPO was open for subscription between December 10, 2012 and December 12, 2012

The category-wise subscription statistics are as under:

Bharti Infratel IPO subscribed 35 percent

2012-12-12T22:34:00.002+05:30

Bharti Infratel IPO, which opened for subscription from yesterday, December 11, 2012, has been subscribed 0.35 times or 35 per cent on an overall basis. The IPO has received bids for 5,59,07,100 Equity Shares according to data available on the NSE website.

The Total Bids Received at Cut-off Price are 18,95,250. The Issue consists of Public offer of 188,900,000 equity shares of Rs.10 each issued in a price band of Rs.210/- to Rs.240/- per equity share with entitlement of discount of Rs.10/- for Retail Investors

Barclays Securities (India) Private Limited, Deutsche Equities India Private Limited, Enam Securities Private Limited, HSBC Securities and Capital Markets (India)Private Limited,Kotak Mahindra Capital Company Limited are the Book Running Lead Managers to the Issue, while BNP Paribas,DBS Bank Ltd,HDFC Bank,ICICI Securities are the Co-Book Running Lead Managers to the Issue

CARE IPO Final Subscription Status

2012-12-12T22:28:00.000+05:30

CARE IPO has been subscribed 41 times on an overall basis. The IPO, which closed today, received overwhelming response on the closing day of the issue.

The IPO received bids for 1,55,62,400 Equity Shares in the Retail Category as against 25,19,895 Equity Shares reserved in the category, thus making the category subscribed 6.18 times. The category-wise final subscription status is as under:

CARE IPO subscription blasts its way to 40 times

2012-12-11T22:21:00.000+05:30

The subscription figures for CARE IPO has rocketed on the closing day of the issue. The IPO has received bids for a staggering 41 times the size of its issue.

According to data available on the NSE website as on December 11, 2012 2100 hrs IST, the IPO has been subscribed 40.98 times, having received total bids for 25,08,00,220 Equity Shares. The total bids received at cut-off prices is 1,39,91,680 Equity Shares as per NSE website, thus translating into a Retail oversubscription of close to 6 times the shares available in the category.

More than the Retail subscription, it is the subscription in the QIB and HNI categories that has shot up on the closing day of the IPO, which may act as a significant positive for the retail investors. The subscription in the HNI category has already crossed 100 times

Credit Analysis & Research Ltd (CARE) is the second largest full-service credit rating company in India. CARE offers rating and grading services across a diverse range of instruments and industries including IPO grading, equity grading, and grading of various types of enterprises, including shipyards, maritime training institutes, construction companies and rating of real estate projects, among others. The final category-wise subscription status will be updated on Indian IPO Blog. With SEBI's new allotment mechanism in place, it would be interesting to see how the allotment would practically take place. Click here to read more on SEBI's New IPO Allotment mechanism

Bharti Infratel IPO gets 15 percent response on opening day

2012-12-11T21:31:00.001+05:30

Bharti Infratel IPO, which opened for subscription today, has received scant response on the opening day. The IPO has received bids for 2,45,34,650 Equity Shares as against Issue Size of 16,05,65,000 Equity Shares, thus taking the coverage of subscription of IPO at 0.15 times

Total Bids Received at Cut-off Price as per data available on NSE website, are for 7,68,500 Equity Shares. The shares under this issue are offered under a Price Band of Rs.210/- to Rs.240/- per equity share. The IPO would remain open for subscription till December 14, 2012

Bharti Infratel Limited is a provider of tower and related infrastructure. Bharti Infratel is one of the world's largest telecom tower infrastructure providers which deploys, owns and manages telecom towers and communication structures for all wireless operators. The business of Bharti Infratel and Indus is to acquire, build, own and operate tower and related infrastructure. In India, Bharti Infratel has over 34,000+ towers, across 18 states, and 11 Telecom circles, and still growing. Bharti Infratel also has a 42% stake in Indus Towers which was created as a Joint Venture between Bharti Infratel, Vodafone and Aditya Birla Telecom to hive off the Towers business in 15 telecom circles

PC Jeweller IPO covered around 40% till Day 2

2012-12-11T21:04:00.000+05:30

PC Jeweller IPO, which opened for subscription from yesterday, has been bid around 40% on an overall basis as per data available on NSE website till December 11, 2012 1900 hrs IST

The IPO has received bids for 1,70,46,990 Equity Shares on an overall basis with bids received for 55,82,790 at cut-off price. The issue consists of Public offer of 45,133,500 equity shares of Rs.10 each (including Anchor Portion of 67,16,250 equity shares). The shares are issued in a price band of Rs.125/- to Rs.135/- per equity share with retail investors and eligible employees being entitled to Rs.5/- discount on the issue price

PC Jeweller Ltd is an established jewellery retailer in North India. Company's operations include the manufacture, retail and wholesale of jewellery. PCJ offers a wide range of products including gold jewellery, diamond jewellery and other jewellery including silver articles. The company provides 100% Hallmarked jewellery and Certified Diamond jewellery.

Bharti Infratel IPO - Analysis

2012-12-10T21:59:00.000+05:30

Bharti Infratel is entering the capital markets with an IPO of 18.89 crore equity shares of Rs.10 each, comprising of an offer for sale of 4.27 crore shares by 4 PE investors and balance shares consisting of fresh issue. The IPO would open for subscription from December 11, 2012 and would close for subscription for QIB investors on December 13, 2012 and for other investors on December 14, 2012.

The shares are offered in a price band of Rs.210/- to Rs.240/- per equity share. The Retail Investors and eligible employees would be entitled to a discount of Rs.10/- per share

Company Profile:

Bharti Infratel is one of the world's largest telecom tower infrastructure providers which deploys, owns and manages telecom towers and communication structures for all wireless operators. The business of Bharti Infratel and Indus is to acquire, build, own and operate tower and related infrastructure.

Bharti Infratel and Indus currently provide access to their towers primarily to wireless telecommunications service providers. Bharti Infratel's and Indus's three largest customers are Bharti Airtel (together with Bharti Hexacom), Vodafone India and Idea Cellular. They are the three leading wireless telecommunications service providers in India by wireless revenue. Bharti Infratel, having presence in all 22 telecom circle in India, enjoys 23% market share in terms of tenancies, as of March 2012. The promoter of the company is Bharti Airtel

IPO Rating:
CRISIL has assigned a CRISIL IPO Grade "4/5" (pronounced "four on five") to the proposed initial public offer (IPO) of Bharti Infratel Ltd (Bharti Infratel). This grade indicates that the fundamentals of the IPO are ‘above average’ relative to the other listed equity securities in India. CRISIL assigns IPO grading on a scale of IPO Grade 5 to IPO Grade 1, with IPO Grade 5 indicating strong fundamentals and IPO Grade 1 indicating poor fundamentals. According to the grading document from CRISIL, the assigned grade also reflects the strong and stable operating cash flows resulting from long-term contracts.

The company’s robust back-end processes, which ensure higher reliability of network uptime for its clients, support the grade. However, low return on capital employed (RoCE) is a concern. Since tower infrastructure is a business with high operating leverage, RoCE is expected to improve in line with an increase in the tenancy ratio albeit from a lower base. The grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals. The grade is not a recommendation to buy, sell or hold the graded instrument, or a comment on the graded instrument’s future market price or its suitability for a particular investor.

Key Strengths:

The company stands to gain from the increase in penetration of voice and data services, which is expected to drive the telecom companies' demand for base transceiver stations (BTS) and additional towers.
Bharti Infratel and Indus Towers will benefit from any expansion of the network by India’s leading telcos - Bharti Airtel, Vodafone and Idea Cellular Ltd - as they are the preferred players for passive infrastructure requirements of the three telcos.
Large-scale operations, first-mover advantage and pool sharing arrangement among the top three telcos have resulted in better-than-industry tenancy ratio for Bharti Infratel. It is expected to improve further leading to high operating leverage and improvement in profitability

Risks and Concerns:

Tower infrastructure is a business with high operating leverage. Low asset turnover and minimal use of leverage in a capital intensive industry have resulted in low return on equity (RoE) for Bharti Infratel over the past three years, which can increase if the leverage is corrected
The overcapacity in the industry is expected to limit the demand for rollout of new towers. Further, regulatory changes and the resultant uncertainty pose a risk to telecom players as their network rollout plans could be hampered.

Concluding Remarks:

The company has sound operating model in place. At the upper band of Price Band of Rs. 210 to Rs. 240 per share, shares are being issued at a PE that is undoubtedly expensive. Such higher price may be justified considering the long term story of the company, but investors may want to exercise caution before jumping into the ship, particularly if they are seeking listing gains, which seem unlikely

CARE IPO subscribed 2.25 times till Day 2

2012-12-10T21:18:00.002+05:30

CARE IPO has been subscribed 2.25 times on an overall basis till Monday, December 10, 2012 as per data available on the NSE website. The IPO has received bids 1,37,55,080 Equity Shares as against 6,119,746 Net Equity Shares offered. The IPO consists of Public offer of 7,199,700 equity shares of a Face Value of Rs. 10 each.(including Anchor Portion of 1,079,954 equity shares)

The shares are offered under a price band of Rs.700/- to Rs.750/- per equity share with a bid lot of 20 Equity Shares and in multiples thereof. Kotak Mahindra Capital Company Limited, DSP Merrill Lynch Limited, Edelweiss Financial Services Limited, ICICI Securities Limited, IDBI Capital Market Services Limited and SBI Capital Markets Limited are BRLMs to the Issue. The IPO closes on December 11, 2012

The following is the subscription status till Day 2, Monday, December 10, 2012 1700 hrs IST:

CREDIT ANALYSIS AND RESEARCH LIMITED
Sr.No.	Category	No.of shares offered/reserved	No. of shares bid for	No. of times of total meant for the category
1	Qualified Institutional Buyers (QIBs)	2519896	8824980	3.50
1(a)	Foreign Institutional Investors (FIIs)		7245620
1(b)	Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies)		1045860
1(c)	Mutual Funds		533500
1(d)	Others		0
2	Non Institutional Investors	1079955	414120	0.38
2(a)	Corporates		0
2(b)	Individuals (Other than RIIs)		0
2(c)	Others		6740
3	Retail Individual Investors (RIIs)	2519895	4515980	1.79
3(a)	Cut Off		0
3(b)	Price Bids		0
	Total	6119746	13755080	2.25

PC Jeweller IPO - Bidding Status on Day 1

2012-12-10T21:18:00.001+05:30

QIB: 0.00 times
Non-Institutional Investors: 0.11 times
Retail: 0.09 times
Employees: 0.00 times
Overall: 0.06 times