HDFC Securities is of the view that the initial public offering of SKS Microfinance is exclusive but still can give listing profits.
“SKSML has issued shares in the past 15 months to private equity investors @ Rs.300 per share. The current issue is priced a bit on the expensive side. Its smaller peer SE Investments has also risen 200% over the past 4-5 months aided by Bonus and split announcements. On a relative basis with its peer, SKSML does not seem too luxurious.
On the other hand, compared to Banks and Finance companies, it seems luxurious based on P/E, dividend yield and P/BV basis. On a post issue basis, however the P/BV could come downhill, mainly due to the premium collected in the issue. Given its size, the present institutional investors, the recent growth and prospects going forward and the fancy towards the sector, the issue could still give some listing gains,” the report said.
SKS Microfinance has entered the capital market to offer 16,791,579 shares in the price-band of Rs 850-985 per share.
It plans to use the earnings to augment capital base to meet future capital requirements and to realize the benefits of listing on the stock exchanges. The issue closes Monday.
Select a news topic from the list below, then select a news article to read.
HDFC Securities: SKS Microfinance IPO can give listing profits
Aster Silicates lists at 8.51% premium on NSE
Today, equity shares of Aster Silicates got listed at the bourses. The Shares of the company got listed at Rs 128.05, a premium of 8.51% as against the issue price of Rs 118 a share on NSE.
At present, the shares of the company are trading at Rs 129.80, 10% higher than its issue price on the NSE. A total of 4.18 mn equity shares have exchanged hands. At 9:20 am, the scrip has touched a high of Rs 131.10 and a low of Rs 123.40.
The Ahmedabad-based firm will use the profits for growing its manufacturing amenities at Baruch, in Gujarat. Saffron Capital Advisors is the book running lead manager for the issue. Aster Silicates has been concerned in producing food grade sodium silicate for the last 14 years, which is used by the toothpaste, salt, cosmetics, pesticides tyre and rubber industries.
CIL shares to be divested by Sept-Oct
Union Minister of State for Coal, Sriprakash Jaiswal today said, “10 % shares of Coal India Limited will be disinvested by September-October this year.”
Jaiswal told reporters here that 1% of the shares would be allocated for CIL employees.
Parabolic Drugs drops 3.93% after even listing
Today, equity shares of Parabolic Drugs got listed at the bourses. The shares of the company got listed at par with issue price of Rs 75 on the NSE.
At present, the shares of the company are trading lower by 3.93% at Rs 72.05. It has touched a high of Rs 75.95 and a low of Rs 68.50. At 9:15 am, a total of 2.30 mn equity shares were traded.
Parabolic Drugs is engaged in the manufacturing of active pharmaceutical ingredients (APIs) and providing contract research and manufacturing services (CRAMS).
Hindustan Copper initiates discussions for FPO management
On Monday, State-run Hindustan Copper (HCL) commenced discussions with merchant banks for managing its follow-on public offer (FPO), which is cautiously scheduled for September–October.
Nine investment banks have put in bids for managing the FPO of the miner including domestic players such as SBI Capital Markets, ICICI Securities, IDBI Capital Market and IDFC Capital and two foreign banks DSP Merill Lynch and UBS Securities in a consortium with SMC Capitals.
HCL has also started the process for assigning the legal advisors. The Cabinet Committee on Economic Affairs prior to this month approved a 10% divestment in the company along with a fresh issue of 10% equity.
Post-disinvestment, the public float would be 18.45% whereas the government’s holding would be 81.55%.
On NSE, Samruddhi Cement lists at Rs 579.75
Today on NSE, shares of Samruddhi Cement got listed at Rs 579.75 post the restructuring of Grasim Industries.The scrip is currently trading at Rs 510.10. It has touched a high of Rs 590, and a low of Rs 495.
The face value of Samruddhi shares would be Rs 5 each share.
Today, a total of 91.70 mn shares of Samruddhi Cement got listed. Out of these, the promoters will get 24 mn shares and the rest would be allotted to Grasim shareholders. Therefore, there will be a tradable free drift of 67.7mn.
Fatpipe Networks extracts IPO
Fatpipe Networks India which entered the capital markets with a first public offering (IPO) on June 7 has withdrawn its issue.
In spite of various efforts the company to get full subscription for the offer. The company had extended its public issue till June 14 from the earlier closing date of June 9. It had also altered price band to Rs 80-85 a share from the prior price of Rs 82-85.
The issue was subscribed just 0.88 times. Non-institutional investors reserved portion got subscribed 2.12 times followed by qualified institutional and retail investors. The company provides global corporations and government offices with technology that boosts the security and reliability of Wide Area Networks, Corporate extranets, Virtual Private Networks and all last-mile Internet connections, including wireless connectivity.
Engineers India gets govt nod for disinvestment and stk up
Today State-run Engineers India said that the ministry of petroleum and natural gas has granted its sanction to the offer, relating disinvestment of 10% of paid-up equity share capital of the company by way of `offer for sale`.
This offer constitutes its stake worth 33.70 million equity shares in the company.
At the BSE, on Monday, at 9.54 am, shares of the company gained Rs 5.15, to trade at Rs 320.95. The total volume of shares traded was 66,986.
Report: Raheja Universal plans to raise Rs10bn via IPO
According to a report Raheja Universal Ltd is setting up to hoist about Rs10 bn in an IPO. Furthermore it adds that Raheja Universal plans to file share-sale documents to India’s capital markets regulator as early as next week.
The report stated that Citigroup Inc., Enam Securities Pvt., Kotak Mahindra Capital Co. and Morgan Stanley have been hired to arrange the sale.
Page 7 of 7
