Orbit Corporation issues QIP

August 18th, 2009 Comments Off on Orbit Corporation issues QIP

Orbit Corporation issued and priced its QIP at a premium of Rs 175 per share or a total of Rs 185 per share on Friday the 14th of August 2009. The issue was for 78,40,426 shares and the total amount raised was Rs 145.048 crs. The share price on Thursday which had closed at Rs 199 on the BSE lost Rs 9.90 or 4.97% on Friday and closed at Rs 189.10. On the NSE, Thursday’s close was Rs 198. It lost Rs 9.65 or 4.87% to close at Rs 188.35. In keeping with the trend visible in recent QIP’s, this share is likely to be under pressure.

I would like to initiate a discussion on whether there should be some sort of lock-in period for QIP’s, looking at the spate of them in recent times.

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JSW Energy Files DRHP

August 18th, 2009 Comments Off on JSW Energy Files DRHP

JSW Energy has filed its DRHP with SEBI for its planned IPO. It plans to hit the capital markets with an issue to raise over 2619 crs on a net basis to fund its power projects which it proposes to set up. It currently has under operation 560 MW of power generation of which 300 MW was commissioned in April 2009. It is in the process of commissioning and implementation of projects worth about 2580 MW by April 2011 and another 510 MW a little later.

Besides the above the company is in discussion and various stages of development of an additional 7740 MW which is likely to be commissioned after 2013. The issue would raise about Rs 3000 crs which would include the expenditure for the project, issue expenses and general corporate purposes.

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Adani Power to list this week

August 18th, 2009 Comments Off on Adani Power to list this week

Adani Power which completed its maiden IPO during the last week of July 2009 is to list this week on Thursday the 20th of August 2009. The issue was very heavily oversubscribed and was the first IPO which introduced the concept of ‘Anchor Investors’. The anchor investor is made an allocation of shares from within the QIB portion of the IPO of 60%. The anchor investor portion is 30% of the QIB portion or simply put 18% of the whole issue.

The point to note in the issue is that grey market premium during the time when the IPO was on was Rs 9 -10, while the cost of interest for the HNI was just about Rs 3.50 assuming 11.25% interest and 13 days as the duration. As long as the share trades above Rs 104, the HNI will be making money.

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