NEW DELHI: Coal India, whose $3.5 billion IPO was more than 15 times subscribed, has been asked by the capital markets regulator to offer investors an exit option until October 25 after errors were pointed out in its prospectus, the state-run company's chairman said. Partha Bhattacharyya said figures were "interchanged" in two places and termed them as "typographical errors".
Finance Director A.K. Sinha said accretion in stock and other income got interchanged in the company's standalone financial statement printed in the prospectus and it had no impact on the company's total income and profit figures.
Asked if the exit option would have any impact on the subscriptions, Bhattacharyya said: "This is a trivial kind of a thing. We wanted to abide by the regulation. "I don't see any impact."
Coal India's initial public offering (IPO) drew bids for at least Rs 2.3 lakh crore, or $54 billion in cash—enough to build 25 airports similar to the sparkling New Delhi one—indicating investors' eagerness to buy if shares are priced reasonably.
Janus Capital, Fidelity, Franklin Templeton and Capital International led overseas investors' bids while State Bank of India , ICICI Bank and Life Insurance Corporation topped the list of domestic institutions, raising hopes of strong demand for forthcoming issues, said people familiar with the bids.
Coal India joins the league of top state-run companies in the world such as China's Agriculture Bank that sold $22 billion worth of shares and Brazil's Petrobras that raised $70 billion. Companies in emerging economies are drawing record funds as investors in developed markets fear a double-dip recession in their home countries.
"This is a premier organisation,” said finance minister Pranab Mukherjee. “It speaks how much confidence they enjoy."
State-run companies have been outperforming the market, with the BSE PSU Index gaining 25.5% in the last three years, compared with the Sensex’ 12.8%. Shares in Maruti Suzuki have risen 12-fold since the IPO, and utility NTPC’s have trebled.
The likely pricing of shares at the top end of the Rs 225-245 band will make it the biggest listed coal producer in the world, qualifying to be the global industry benchmark. It will be the seventh most valuable firm in the country.
Price band of the issue at a valuation lower than comparable global peers did induce investors to queue up as gains seems to be assured when it begins trade on November 4.
At Rs 245 apiece, Coal India would be trading at 12 times forward year earnings, compared with about 15 times for Australia's Gloucester Coal and 14 times for China's Shenhua Energy. Hypothetically, if the company gets to raise prices to global parity, its earnings per share may jump 323% to Rs 84.2, potentially giving it a market value of $143 billion, closer to the world's biggest iron exporter, Vale of Brazil, that was privatised in 1997.
The institutional portion of the book was subscribed 25 times, or with bids for $39 billion. Bankers said more than two-thirds of the book were subscribed by foreign funds. The $3.5-billion IPO goes past the record set by Reliance Power at $2.9 billion in 2008, and that of real estate developer DLF’s at $2 billion before that.
Success of the latest issue takes total fund-raisings by the state to Rs 17,500 crore this year, giving hopes that its Rs 40,000-crore target may be surpassed comfortably, if conservative pricing is followed.
PowerGrid, SAIL, IndianOil., ONGC , Shipping Corporation, Hindustan Copper and Manganese Ore are some of the companies that have lined up share sales.
Showing posts with label NEWS UPDATES. Show all posts
Showing posts with label NEWS UPDATES. Show all posts
Saturday, October 23, 2010
Wednesday, October 13, 2010
Coal India set to make history:
Coal India’s initial public offering (IPO), the nation’s biggest and priced at a discount to global peers, may attract investors and set the stage for it to become a global industry benchmark, akin to Brazil’s Vale in iron ore.
The government said investors can bid for Coal India (CIL) shares in the Rs 225-245 price band that will help it raise as much as Rs 15,200 crore, surpassing the Rs 11,600-crore record set by Reliance Power in 2008. CIL staff and retail investors will get a 5% discount to the final price.
Ten per cent of the company, or 63.16 crore shares are on sale, which if priced at the top end, could make it the seventh most-valuable firm in the country with a market capitalisation of $34 billion, behind state-run utility NTPC .
“Compared to global peers, the pricing of CIL issue is very competitive,’’ CIL chairman Partha S Bhattacharyya told ET NOW. “It will offer high gains to investors after getting listed.” ET NOW, the sister channel of this paper, was the first to break the price band news, and interview the chairman.
Analysts believe that the pricing leaves a lot on the table for investors as in past share sales by state-run companies such as Maruti Suzuki and NTPC.
“Coal India deserves to trade at a premium to global coal peers given much lower volatility of earnings and a large headroom to raise prices in a supply-deficit environment,’’ say Abhijeet Naik and Abhishek Tyagi, analysts at brokerage CLSA. Its one-year forward value is `309-324 apiece, they say, forecasting 32% gains.
At the top end of the band, CIL would be trading at 12 times the forward-year earnings forecast, compared with 14.9 times for Australia’s Gloucester Coal and 13.7 times for China’s Shenhua Energy.
If Coal India raises prices to global parity, it could boost earnings per share by 323% to Rs 84.2, potentially giving a market value of $143 billion, closer to Vale, the world’s biggest iron ore exporter that was privatised by the Brazil government in 1997.
The share sale would be investors’ vote on the Manmohan Singh government’s economic policies. The Centre plans to raise Rs 40,000 crore this year from sale of shares in state-run companies, of which about 5% has been achieved so far. Global investors have poured more than $22 billion in the Indian stock market, making it one of the best performers in the region as economic growth sustains at more than 8%.
Ten per cent of the total offer is reserved for Coal India employees, 25% for retail investors and 15% for high net worth individuals. The issue will be open between October 18 and 21 and will begin trading on November 4.
Coal India, with an output of 431 million tonnes a year, would be the world’s biggest listed coal producer. Its coal reserves are also the largest in the world with 10.6 billion tonnes compared with Peabody’s 9.3 billion tonnes and China’s Shenhua’s 7.4 billion tonnes. The capacity additions in the cement and power sectors provide opportunities for Coal India to expand mining and boost earnings per share. The possibility of shortage of the fuel could also lead to higher prices.
~
Source ET
The government said investors can bid for Coal India (CIL) shares in the Rs 225-245 price band that will help it raise as much as Rs 15,200 crore, surpassing the Rs 11,600-crore record set by Reliance Power in 2008. CIL staff and retail investors will get a 5% discount to the final price.
Ten per cent of the company, or 63.16 crore shares are on sale, which if priced at the top end, could make it the seventh most-valuable firm in the country with a market capitalisation of $34 billion, behind state-run utility NTPC .
“Compared to global peers, the pricing of CIL issue is very competitive,’’ CIL chairman Partha S Bhattacharyya told ET NOW. “It will offer high gains to investors after getting listed.” ET NOW, the sister channel of this paper, was the first to break the price band news, and interview the chairman.
Analysts believe that the pricing leaves a lot on the table for investors as in past share sales by state-run companies such as Maruti Suzuki and NTPC.
“Coal India deserves to trade at a premium to global coal peers given much lower volatility of earnings and a large headroom to raise prices in a supply-deficit environment,’’ say Abhijeet Naik and Abhishek Tyagi, analysts at brokerage CLSA. Its one-year forward value is `309-324 apiece, they say, forecasting 32% gains.
At the top end of the band, CIL would be trading at 12 times the forward-year earnings forecast, compared with 14.9 times for Australia’s Gloucester Coal and 13.7 times for China’s Shenhua Energy.
If Coal India raises prices to global parity, it could boost earnings per share by 323% to Rs 84.2, potentially giving a market value of $143 billion, closer to Vale, the world’s biggest iron ore exporter that was privatised by the Brazil government in 1997.
The share sale would be investors’ vote on the Manmohan Singh government’s economic policies. The Centre plans to raise Rs 40,000 crore this year from sale of shares in state-run companies, of which about 5% has been achieved so far. Global investors have poured more than $22 billion in the Indian stock market, making it one of the best performers in the region as economic growth sustains at more than 8%.
Ten per cent of the total offer is reserved for Coal India employees, 25% for retail investors and 15% for high net worth individuals. The issue will be open between October 18 and 21 and will begin trading on November 4.
Coal India, with an output of 431 million tonnes a year, would be the world’s biggest listed coal producer. Its coal reserves are also the largest in the world with 10.6 billion tonnes compared with Peabody’s 9.3 billion tonnes and China’s Shenhua’s 7.4 billion tonnes. The capacity additions in the cement and power sectors provide opportunities for Coal India to expand mining and boost earnings per share. The possibility of shortage of the fuel could also lead to higher prices.
~
Source ET
Tuesday, May 4, 2010
IPO issuers can have different closing dates for QIBs, retail
MUMBAI: Companies can now close their public issues on different days for qualified institutional buyers (QIBs) and retail investors, with capital market regulator SEBI having amended the guidelines relating to share issues.
“We have given a facility to issuers; they can, if they so choose, close the issue for institutional investors on day X and for the other investors, on day X+ 1,” SEBI chairman, CB Bhave said at the launch of Indian Bank’s Application Supported by Blocked Amount, phase 2.
For public issues from now on, institutional investors will have to pay the entire application money upfront. Till last week, they were only paying 10% of the application money at the time of bidding.
Because of the new rule, institutional investors will bid only on the last day of the issue as they will not want to lock up their funds by applying on the very first day of the subscription period.
“In case of differential closing dates, it’s crucial to have, at the most, a day extra for non-QIBs to participate,” says Mehul Savla of RippleWave Equity.
“This will minimise market risk to QIBs and at the same time will allow retail investors to gauge the demand and participate in the public issue. Most non-QIB investors anyway participate on the last day and hence will not need more than a day, post the closing for QIBs,” he said.
Retail investors usually apply for shares in a public issue on the last day of subscription, after ascertaining the QIB appetite. With the institutional buyers now bidding on the last day of the issue, there are hardly any applications in the initial days of the offer period.
Mr Savla feels another way to address the “last day” bidding issue is to allow discretionary allocation to QIBs, as was the practice earlier.
“This will ensure that QIBs who come in early get rewarded by a higher than average allocation for demonstrating early commitment to the IPO,” he said.
By the end of this calendar, companies making initial public offerings may be able to list their shares within seven days from the close of subscription. Currently, companies have 12 days to list the shares after the issue closes.
A shorter timeline between issue closure and listing of shares will reduce market risk for investors, and also free up their funds faster.
On the ongoing tussle between SEBI and the insurance regulator over the supervision of unit linked insurance plans (Ulips), Mr Bhave said the capital market regulator was open to discussions with its insurance counterpart.
The Supreme Court on Friday issued notices to the Centre, Insurance Regulatory and Development Authority (IRDA), 14 life insurance companies and litigants who filed the PILs seeking their response to SEBI’s petition. The matter is slated for hearing on July 8, after the summer break.
On a related note, Mr Bhave said SEBI planned to issue guidelines for regulating mutual fund distributors.
“Mutual fund distributors are very large in number and different in size... more thinking is required on our part in regulating them,” he said.
“We have given a facility to issuers; they can, if they so choose, close the issue for institutional investors on day X and for the other investors, on day X+ 1,” SEBI chairman, CB Bhave said at the launch of Indian Bank’s Application Supported by Blocked Amount, phase 2.
For public issues from now on, institutional investors will have to pay the entire application money upfront. Till last week, they were only paying 10% of the application money at the time of bidding.
Because of the new rule, institutional investors will bid only on the last day of the issue as they will not want to lock up their funds by applying on the very first day of the subscription period.
“In case of differential closing dates, it’s crucial to have, at the most, a day extra for non-QIBs to participate,” says Mehul Savla of RippleWave Equity.
“This will minimise market risk to QIBs and at the same time will allow retail investors to gauge the demand and participate in the public issue. Most non-QIB investors anyway participate on the last day and hence will not need more than a day, post the closing for QIBs,” he said.
Retail investors usually apply for shares in a public issue on the last day of subscription, after ascertaining the QIB appetite. With the institutional buyers now bidding on the last day of the issue, there are hardly any applications in the initial days of the offer period.
Mr Savla feels another way to address the “last day” bidding issue is to allow discretionary allocation to QIBs, as was the practice earlier.
“This will ensure that QIBs who come in early get rewarded by a higher than average allocation for demonstrating early commitment to the IPO,” he said.
By the end of this calendar, companies making initial public offerings may be able to list their shares within seven days from the close of subscription. Currently, companies have 12 days to list the shares after the issue closes.
A shorter timeline between issue closure and listing of shares will reduce market risk for investors, and also free up their funds faster.
On the ongoing tussle between SEBI and the insurance regulator over the supervision of unit linked insurance plans (Ulips), Mr Bhave said the capital market regulator was open to discussions with its insurance counterpart.
The Supreme Court on Friday issued notices to the Centre, Insurance Regulatory and Development Authority (IRDA), 14 life insurance companies and litigants who filed the PILs seeking their response to SEBI’s petition. The matter is slated for hearing on July 8, after the summer break.
On a related note, Mr Bhave said SEBI planned to issue guidelines for regulating mutual fund distributors.
“Mutual fund distributors are very large in number and different in size... more thinking is required on our part in regulating them,” he said.
Thursday, February 4, 2010
खराब बाजार का असर IPO पर
Feb 03, 2010
NTPC का FPO आज खुला और बाजार की उम्मीद के मुताबिक पहले दिन रिस्पॉन्स भी ठीक ठाक ही रहा। फर्क सिर्फ यही था, कि निवेशकों ने फ्लोर प्राइस के आस पास ही बोली लगाई है।
लेकिन NTPC के इश्यू को मिले ठंडे रिस्पॉन्स के बाद सवाल ये उठने लगा है कि जो कंपनियां अपने इश्यू लाने का प्लान बना रही हैं, उनको कैसा रिस्पॉन्स मिलेगा।
खराब सेकेंडरी मार्केट का असर प्राइमरी मार्केट पर भी पड़ रहा है। पिछले कुछ दिनों में बाजार में खुले IPO को जैसा ठंडा रिस्पॉन्स मिला है, उससे ऐसा लगता है कि लोगों का भरोसा कुछ कम हुआ है।
मिड साइज सप्लाई चेन कपंनी एक्वा लॉजिस्टिक्स के IPO से निवेशक ऐसे दूर हुए, कि कंपनी को इश्यू बंद करने की तारीख को आगे बढ़ाना पड़ा। इतना ही नहीं, अब बाजार में आने वाले एक बड़ी रियल्टी कंपनी के IPO को लेकर खबरें ये हैं कि शायद उन्हें अपने जरूरत की रकम को उठाने के लिए ज्यादा इक्विटी डाइल्यूट करनी पड़े। एक्सपर्ट्स मानते हैं कि रिटेल निवेशक लंबे समय तक बाजार में बने रहना नहीं चाहते और लिस्टिंग के वक्त नुकसान होने के डर से वो नए इश्यू से फिलहाल दूर हैं।
बाजार में अब रिलायंस इंफ्राटेल, लोढ़ा डेवलपर्स, हैथवे केबल्स, नितेश एस्टेट और ग्रेड ईस्टर्न एनर्जी के इश्यू आने हैं। चिंता की बात ये है कि अगर निवेशकों का भरोसा नहीं लौटा, तो इन इश्यू को रिस्पॉन्स कैसा मिलेगा।
बाजार के जानकार ये भी मानते हैं कि NTPC के इश्यू में सरकार ने निवेशकों के लिए कुछ खास छोड़ा ही नहीं, यही वजह है कि इसे 201 रुपए के फ्लोर प्राइस के पास ही बिडिंग ज्यादा मिली है। सबसे ज्यादा बोली, 209 रुपए के पास ही लगी। बाजार के जानकारों का कहना है कि सरकार को अपने बाकि इश्यू में छोटे निवेशकों का ध्यान रखना होगा।
लिस्टिंग गेन्स हो या फिर लांग टर्म का मुनाफा, किसी भी इश्यू को निवेशकों का पैसा अपनी तरफ खींचने के लिए ये जरूरी है कि इश्यू की प्राइसिंग सही हो, और कई मामलों में इश्यू की टाइमिंग भी।
लाइन में हैं इश्यू
(साइज, करोड़ रु)
- रिलायंस इंफ्राटेल 5000
- REC 4000
- लोढ़ा डेवलपर्स 3000
- हैथवे केबल्स 700
- नितेश एस्टेट 450
- ग्रेट ईस्टर्न एनर्जी 400
~
AWAAZKAROBAR
NTPC का FPO आज खुला और बाजार की उम्मीद के मुताबिक पहले दिन रिस्पॉन्स भी ठीक ठाक ही रहा। फर्क सिर्फ यही था, कि निवेशकों ने फ्लोर प्राइस के आस पास ही बोली लगाई है।
लेकिन NTPC के इश्यू को मिले ठंडे रिस्पॉन्स के बाद सवाल ये उठने लगा है कि जो कंपनियां अपने इश्यू लाने का प्लान बना रही हैं, उनको कैसा रिस्पॉन्स मिलेगा।
खराब सेकेंडरी मार्केट का असर प्राइमरी मार्केट पर भी पड़ रहा है। पिछले कुछ दिनों में बाजार में खुले IPO को जैसा ठंडा रिस्पॉन्स मिला है, उससे ऐसा लगता है कि लोगों का भरोसा कुछ कम हुआ है।
मिड साइज सप्लाई चेन कपंनी एक्वा लॉजिस्टिक्स के IPO से निवेशक ऐसे दूर हुए, कि कंपनी को इश्यू बंद करने की तारीख को आगे बढ़ाना पड़ा। इतना ही नहीं, अब बाजार में आने वाले एक बड़ी रियल्टी कंपनी के IPO को लेकर खबरें ये हैं कि शायद उन्हें अपने जरूरत की रकम को उठाने के लिए ज्यादा इक्विटी डाइल्यूट करनी पड़े। एक्सपर्ट्स मानते हैं कि रिटेल निवेशक लंबे समय तक बाजार में बने रहना नहीं चाहते और लिस्टिंग के वक्त नुकसान होने के डर से वो नए इश्यू से फिलहाल दूर हैं।
बाजार में अब रिलायंस इंफ्राटेल, लोढ़ा डेवलपर्स, हैथवे केबल्स, नितेश एस्टेट और ग्रेड ईस्टर्न एनर्जी के इश्यू आने हैं। चिंता की बात ये है कि अगर निवेशकों का भरोसा नहीं लौटा, तो इन इश्यू को रिस्पॉन्स कैसा मिलेगा।
बाजार के जानकार ये भी मानते हैं कि NTPC के इश्यू में सरकार ने निवेशकों के लिए कुछ खास छोड़ा ही नहीं, यही वजह है कि इसे 201 रुपए के फ्लोर प्राइस के पास ही बिडिंग ज्यादा मिली है। सबसे ज्यादा बोली, 209 रुपए के पास ही लगी। बाजार के जानकारों का कहना है कि सरकार को अपने बाकि इश्यू में छोटे निवेशकों का ध्यान रखना होगा।
लिस्टिंग गेन्स हो या फिर लांग टर्म का मुनाफा, किसी भी इश्यू को निवेशकों का पैसा अपनी तरफ खींचने के लिए ये जरूरी है कि इश्यू की प्राइसिंग सही हो, और कई मामलों में इश्यू की टाइमिंग भी।
लाइन में हैं इश्यू
(साइज, करोड़ रु)
- रिलायंस इंफ्राटेल 5000
- REC 4000
- लोढ़ा डेवलपर्स 3000
- हैथवे केबल्स 700
- नितेश एस्टेट 450
- ग्रेट ईस्टर्न एनर्जी 400
~
AWAAZKAROBAR
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