Religare IPO Listing

Religare Enterprises will list on Nov 21 2007

Dhanus Technologies Listing

Dhanus Technologies will list on Oct 17 2007

Consolidated Construction Listing

Consolidated Construction will list on Oct 15 2007

All eyes on Power Grid Listing

Power Grid Corporation of India (PGCIL) couldn’t have asked for a better time to make its debut on bourses. Power stocks are the toast of investors these days. Stocks of sector heavyweights like Tata Power, NTPC and Reliance Energy (REL) have been galloping in the recent past. While Reliance Energy has shot up nearly 80% in just one month, Tata Power and NTPC have gained 42% and 25%, respectively.

Power Grid Corporation of India (PGCIL) is expected to register decent gains on its debut day (Friday). Even the most conservative market players are betting on a listing gain of 15-20%. The company’s public offer, which closed on September 13, had received an unprecedented response, with the total subscription value touching Rs 1,90,000 crore. The issue was subscribed 64.50 times, with the QIB portion getting subscribed 115.47 times.

While the HNI segment was subscribed 39.75 times, the retail portion was subscribed 6.68 times. The issue price was fixed at Rs 52 per share. In a rare instance, the provident and retirement funds also bid for the PGCIL shares.

The company is India’s largest central transmission utility, handling around 45% of the power generation. It has been accorded a mini-navratna status by the government.

Meanwhile, power stocks have added sizeable chunk to investor wealth during the past one month. Tata Power, REL and NTPC have created over Rs 50,000 crore of fresh wealth. While this may still not sound too much in comparison to heavyweights like RIL, it is significant as the sector was considered a laggard until last year. While Tata Power is now trading at a PE of 30, REL is trading at 40, much above the earlier range of 15-20.

The sector came into the limelight late last year, with two ultra mega power projects being awarded and has been in focus since then. Both TPC and REL have been awarded one project each, requiring a total investment of around Rs 36,000 crore.

The project is likely to generate revenues of around Rs 6,500 crore for TPC and Rs 3,500 crore for REL. With a fresh capacity of 4,000 mw, these projects provide significant economies of scale.

The movement in these stocks seems to be a classic case of ‘irrational exuberance’ going by the numerous complexities attached to the projects and the longer-term horizon. Since it is the first time that such large projects are being undertaken in the power sector, there is a large degree of execution risk attached to it.

This contrasts with the fact that the largest-running power plant at a single location currently has a capacity of only 3,200 mw, which was commissioned in three phases over a period of 20 years. Further, since no plant based on super critical technology is in operation right now, there is a significant degree of technology risk, more so in the case of REL project, which would be using domestic coal with high ash content.

However, any downside for these projects could be limited on account of the government thrust. Since these projects have bagged the government approval, the latter has a significant stake in their success. Also, with power shortage being a critical bottleneck in the current growth cycle, the government has an interest in ensuring the success of these projects.

While that could be an important reason for these companies and investors to ignore the downside risk, the short-term prospects of these stocks from the current levels could be weak.

In fact, Credit Suisse is of the view that this sector is an ideal defensive play on account of the inelastic demand and assured returns. “These stocks are impervious to economic cycles and prone to neither big surges nor big drops in earnings, unlike growth stocks. The predictable nature of their business makes them ideal defensive plays,” adds the Credit Suisse report.

Meanwhile, NTPC is planning to double its capacity in the next five years while Tata Power will triple its capacity. Reliance Energy is also expecting to register a five-fold jump in capacity in the next five years. “While these capacities move towards market pricing, there is scope for earning more than the regulated 14% ROE, thereby enhancing the book value of these companies,” says Credit Suisse.

The power pricing formula in India is based on the total cost of the generation and a fixed rate of return. Under this mechanism, power plants are able to pass on fuel, operational and financing risk, and maintain a fixed return on equity of 14% for the generator.

Power Grid seen listing at 85-100

Power Grid Corporation of India is likely to list on Friday at a premium of 50 per cent to its issue price.

“Strong listing is expected for Power Grid mainly on positive market sentiment. I expect the stock to list a healthy premium,” said Nitin Khandkar of Keynote Capital without giving a range.

Vikas Khemani, co-head, institutional equities, Edelweiss Securities, too is positive on the company. “PGCIL has a good business model and investors will be holding it for long-term gains. The stock is likely to list around Rs 85-90,” he said.

An analyst from another broking firm expects the stock to list at a premium of Rs 40-50. The initial public offering of Power Grid was subscribed 65 times, raising Rs 2,985 crore at the issue price of Rs 52.

The company raised funds to part-finance its capital expenditure

Kaveri Seeds Listing

Kaveri Seeds will list on October 4 2007

Power Grid Listing

Power Grid IPO will list on October 5 2007

Motilal Oswal - Listing

Your Ad Here

Motilal Oswal will list on September 11, 2007

Central Bank Listing

Central Bank will list on August 21 2007

Listing - Zylog Systems

Zylog will list on August 17 2007

Spice Communications shares to list Thursday

Shares of Spice Communication will list on the Bombay Stock Exchange Thursday. Issue price of the recently concluded initial public offering was fixed at Rs 46 per share.

The company raised Rs 520 crore through its IPO of 11.3 crore equity shares of face value Rs 10 each.

The IPO was subscribed 37 times, receiving bids for 425.38 crore shares.

Qualified institutional buyers' portion was subscribed 57 times. Retail and non-institutional investors portion was subscribed 3 times and 19 times respectively.

Telekom Malaysia holds 49% in Spice Communications.

The company is the second largest cellular services provider in Punjab and fifth largest cellular services provider in Karnataka with an allocation in the 900 MHz spectrum in both these states.

Proceeds from the IPO will be mainly utilized towards repayment of debt, payment of license fee for national long distance and international long distance services and related capital expenditures

ICICI Bank FPO Listing

Only the fully paid up shares listed today. Partly paid shares aren't listed yet and might get listed very soon. Hold on tight !

Ashok Leyland, Emkay - DLF Listing

Ashok Leyland, Emkay - DLF Listing

DLF shares rise 11% on debut

Shares in Indian real estate firm DLF Ltd. debuted 11% higher than their issue price of Rs525 on 5 July, after the company raised Rs91.88 billion ($2.25 billion) in India’s biggest-ever IPO.

At 0426 GMT, DLF shares were up 6.7% at Rs560.00 on the Bombay Stock Exchange. The benchmark index was up 0.5%.

Analysts had expected the shares to rise 7-12%, with gains limited by concerns over falling property prices, which have eased about 10% in the last four months.

DLF, which received subscriptions for about three times the shares on offer, last month sold 10.27% of the company, or 175 million shares, in an offering heavily bid by large funds, but which just managed full subscription for the 52.2 million shares reserved for small retail investors.

Last year, DLF dropped its plans for what would have been India’s biggest IPO due to a sharp market fall in May and June.

DLF, which built much of the outsourcing hub of Gurgaon on the outskirts of Delhi, plans to spend nearly Rs70 billion to buy and develop property.

Kotak Mahindra and DSP Merrill Lynch were the lead arrangers for the issue, with Citigroup, Deutsche Bank, ICICI Securities, Lehman Brothers, UBS and SBI Capital Markets.

DLF shares rise 11 percent on debut

Shares in real estate firm DLF Ltd. debuted 11 percent higher than their issue price of 525 rupees on Thursday, after the company raised 91.88 billion rupees in India's biggest-ever IPO.

At 0426 GMT, DLF shares were up 6.7 percent at 560.00 rupees on the Bombay Stock Exchange. The benchmark index was up 0.5 percent.

Analysts had expected the shares to rise 7-12 percent, with gains limited by concerns over falling property prices, which have eased about 10 percent in the last four months.

DLF, which received subscriptions for about three times the shares on offer, last month sold 10.27 percent of the company, or 175 million shares, in an offering heavily bid by large funds, but which just managed full subscription for the 52.2 million shares reserved for small retail investors.

Last year, DLF dropped its plans for what would have been India's biggest IPO due to a sharp market fall in May and June.

DLF, which built much of the outsourcing hub of Gurgaon on the outskirts of Delhi, plans to spend nearly 70 billion rupees to buy and develop property.

Kotak Mahindra and DSP Merrill Lynch were the lead arrangers for the issue, with Citigroup, Deutsche Bank, ICICI Securities, Lehman Brothers, UBS and SBI Capital Markets.

DLF to list today

The market is likely to stay firm as fund inflows into the domestic equities continue to remain robust and players are maintaining their high bets on almost all the sectors. The Asian indices which are trading higher in current trades may drive the market further. Investors will also be keenly following the high profile DLF listing today. Among the key local indices, the Nifty could test higher levels around 4440 in the short term and the downside it has a key support at 4285. The Sensex has a likely support at 14600 and may face resistance at 14900.

DLF Final Subscription Detals

Qualified Institutional Buyers (QIBs) - 5.1288 times

Non Institutional Investors - 1.1434 times

Retail Individual Investors (RIIs) - 0.9752 times

( 3347960 out of 50903990 are price bids)

Employee Reservation - 0.7862 times

(726280 of 786150 are price bids )

OVERALL -3.47 times

Price bids essentially mean that if DLF fixes the IPO price at 550, all those price bids will be rejected - so all the others will get more than what they bargained for.

Update

(pun intended ofcourse with the bargain statement) - Most of the retail guys apply for listing gains because they hope the issue is hugely oversubscribed, In this case, the FIIs will get the unallotted retail shares - so they might not even buy from the secondary market.

Predict Nitin Fire Protection IPO closing Price

Take a look at the older polls

IDEA CELLULAR IPO LISTING

IDEA Cellular will LIST on March 9 2007

MindTree Consulting IPO Listing

Mindtree will list on March 7 2007