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Transcript of IPO Prashant
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IPO- Trend Analysis
2009
Prashant SharmaFPM Scholar
National Institute of Financial ManagementFaridabad
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2009Name of the issue Price Range Issue Price (Rs.)
D.B. CORP LIMITED Rs.185 to Rs. 212 212GODREJ PROPERTIES LIMITED Rs. 490 To Rs. 530. 490
JSW ENERGY LIMITED Rs. 100 To Rs. 115. 100
MBL INFRASTRUCTURES LIMITED Rs. 165 To Rs. 180. 180
COX AND KINGS (INDIA) LIMITED Rs. 316 To Rs. 330. 330
ASTEC LIFESCIENCES LIMITED Rs.77 To Rs.82 82
DEN NETWORKS LIMITED Rs. 195 To Rs. 205. 195
INDIABULLS POWER LIMITED Rs.40 To Rs.45 45
THINKSOFT GLOBAL SERVICES LIMITED Rs.115 To Rs.125 125
EURO MULTIVISION LTD Rs.70 To Rs.75 75
PIPAVAV SHIPYARD LIMITED Rs.55 To Rs.60 58
OIL INDIA LIMITED Rs.950 To Rs.1050 1050
GLOBUS SPIRITS LIMITED Rs.90 To Rs.100 100
JINDAL COTEX LIMITEDRs.70 To Rs.75 75
NHPC LIMITED Rs.30 To Rs.36 36
ADANI POWER LIMITED Rs.90 To Rs.100 100
RAJ OIL MILLS LIMITED Rs.100 To Rs.120 120
EXCEL INFOWAYS LIMITED Rs.80 To Rs. 85 85
MAHINDRA HOLIDAYS & RESORTS INDIA LIMITED Rs. 275 To Rs. 325 300
RISHABHDEV TECHNOCABLE LIMITED Rs 29 To Rs 33 33
EDSERV SOFTSYSTEMS LIMITED Rs 55 T0 Rs 60 602
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Resource mobilization by govt. and corporate (2009)
3Source: RBI annual report 2008-09
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The total resources mobilized through
Corporate and Government securities during
2008-09 increased by 13.80 % over the
previous year. The resources mobilized
amounted to Rs. 6,588,920 million as against
Rs. 5,789,720 million in 2007-08.
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Resource Mobilization from Public and
Rights Issues
5Source : SEBI
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Sector-wise Distribution ofResources
Mobilized
6Source : SEBI
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During 2008-09, resources mobilized from public and
rights issues decreased by 81.58 % to Rs.162,190 million
in comparisons to Rs. 880,290 million in 2007-08. 47
companies accessed the primary market through 22
public issues and 25 rights issues. The 22 public issues
comprised of 21 equity instrument of Initial public
offerings (IPOs) and one Non convertible debenture
(NCD). The IPO market exhibited a steep fall, there were
only 21 IPOs in 2008-09 in comparison to 85 during the
previous fiscal. The amount raised through IPO was
lower by 95.11 % at Rs.20,820 million from Rs.425,950
million in 2007-08. The share of rights issues in the total
resource mobilization was 77.91 % in 2008-09 as against
36.94 % in the previous fiscal. All the 47 public issues
were made by private sector companies.7
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Industry-wise Distribution ofResources Mobilized
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The finance sector contributed the maximumshare of 12.12 % of the total resources
mobilized during 2008-09 with 3 public issuesmobilizing Rs. 19,660 million. Theentertainment sector was at the secondposition accounting of 7.13 % of the totalresources mobilized. Over the years a range ofindustries have emerged as the majorcontributors of resources mobilized. In 2007-08the Banking sector contributed (35.57%) to thetotal resources raised followed by Cement &Construction (21.72 %).
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Size wise distribution ofResources
Mobilized
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About 78.08 % of resource mobilization was
through public issues of issue size above Rs.
500 crore. In terms of number of issues
however there were only 6 issues above Rs.
500 crore. A maximum of 21 issues were in
the range ofRs. 10 crore to Rs. 50 crore
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Mega issues
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There were 9 mega issues (Rs.3,000 million
and above), the largest being the Rights issue
of Hindalco Industries Limite (Rs. 50,480
million) followed by the rights issue of Tata
Motors Limited (Rs. 21,850 million). The 9
mega issues mobilized 86.24 % of the total
resources raised.
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Response to Public Issues
(IPO and FPO)
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The public issues failed to elicit a good
response, 55 % of the issues were subscribedless that 1.5 times. Only 8 % of the publicissues were subscribed more than 10 times incomparison to 44 % in the previous fiscal. The
most subscribed issues during 2008-09 wereAvon Weighing systems Ltd, which was oversubscribed 44.73 times followed by,Aishwarya Telecom Ltd. which was over-
subscribed 18.85 times. Tata Capital Ltd (NCDissue) was oversubscribed 1.73 times.
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Resources Raised from Debt Markets
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Government and corporate sector collectively
raised a total of Rs. 6,125,147 million from
primary market during 2008-09. About 71.29%
has been raised by the Government, while the
balance by the corporate sector through
private placement.
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Private Placement
Institutional & Corporate Debt
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Growth of private placement
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Issue wise distribution of private
placement
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According to Prime Annual Report, a total of
167 issuers (institutional and corporate) raised
Rs. 1,743,567 million through 799 privately
placed issues in 2008-09. Response to most of
the issues was good. 215 issues out of 799
issues i.e around 27% of the total issues were made by
the government sector units, which mobilized
69% of the total. The amount raised throughthe private placement of debt issues have been
on an increasing trend over the past few years.
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Sectoral Distribution ofResources
Mobilized by Private Placement
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Sectoral distribution shows that the banking
continued to dominate the private placement
market, raising 52.73 % in 2008-09, followed
by financial sector , which accounted for 17.97
% during the year.
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Resources Raised by Corporate Sector
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