Month: November 2006

Lanco Infratech Limited overall subscription: 11.36 times
QIBs inclusing FIIs – 18.4834 times
Non Institutional- 1.6754 times
Retail Individual Investors – 2.4758 times
Employee-1.0532 times (99% of the bids are priced bids)

This means if you are a Retail Investor with an application for more than 75 shares, you will get firm allotment.

I’ll keep you informed about allotment details. It will be made available on In-Time Spectrum.

Tags: IPO India, Lanco Infratech , India Infrastructure, Invest in India

The IPO of Real estate major, Parsvnath Developers was heavily oversubscribed. The total subscription stood at around 64 times. Here is the break-up

Qualified Institutional Buyers (QIBs) 81.4532 Subscription (Heavy Demand from FIIs).
Non Institutional Investors 100.4308 Subscription
Retail Individual Investors (RIIs) 10.9353
Employee 2.6669 Subscription

This means all retail applications for 220 shares or more will get a firm allotment.

This is according to data obtained from BSE Terminal at Midnight 00:00 hours exclusively by DalalStreet.Biz analysts.

Tags:IPO India , India Real Estate, Parsvnath Developers, BSE

I decided to explore the investment pattern of Retail Indian Investors in various IPOs in 2006. Based on this pattern, and various other factors, you can predict how retail investors are likely to invest in an IPO.

Below you will find, Name of Company, Retail Investors collection in the IPO, Issue Price / Current Market Price.

Reliance Petroleum Ltd – Rs12,100 crores , Rs 60 / Rs65
Sun TV Ltd – Rs 540 crores, Rs 875 / Rs1270
Tech Mahindra – Rs 1120 crores, Rs 365 / Rs995
Voltamp Transformers Ltd – Rs 327 crores, Rs 345 / Rs 511
Action Construction Equipment – Rs 578 crores, Rs 135 / Rs 251
GVK Ltd – Rs1048 crores, Rs 310 / Rs 248
Unity Infrastructure – Rs 140 crores, Rs 675 / Rs 555
GMR Infrastructure – Rs 144 crores, Rs 210 , Rs351

You can see that Reliance is still the most sought after company and everybody from Grandfathers to kids must have applied in that IPO. SunTV and Tech Mahindra equally good brand names also saw terrific subscription and demand.

Retail investor who has burnt his fingers in GVK and Unity infrastructure issue is unlikely to subscribe in Lanco Infra and may subscribe in Parsvnath.

Info Edge India has sucked Rs360 crores from retail investors already. Based on various other factors I expect the Parsvnath Developers Ltd issue to subscribe 3 times (collection of Rs 1,000 crores) in the Retail category. And in the best case it may subscribe over 5 times (collection of Rs 1,500 crores) in the retail category.

Tags:IPO India , Parsvnath , Invest India , Retail Indian Investor

Bengalooru based Sobha Developers Ltd is planning for an IPO which is likely to be in the range of Rs500 to Rs550 crores.

Sobha Developers IPO Proposal:
Fresh issue of 88.9 lakh equity shares of Rs 10 each at a price band of Rs 550-640 per share through the 100% book-building process, which will comprise 12.2% of the company’s fully diluted equity base.

Expected Date of Sobha developers IPO: November 23 and 29, 2006. So by this time you will have got your Parsvnath Developers Ltd and Lanco Infratech Ltd IPO money refunded.

The IPO proceeds will be used to finance land acquisitions, construction and development of existing and proposed residential projects and for retiring certain loans.

Sobha has land bank of about 2,747 acres in Bangalore / Bengalooru, Mysore / Mysooru, Pune, Chennai, Cochin, Thrissur and Coimbatore. Its core competency is in IT and is most preffered construction company by Infosys Technologies Ltd.

Last month, Sobha completed a pre-IPO placement of 4.8 lakh shares with Kotak Mahindra Private Equity Trustee and 97,245 shares with Bennett, Coleman & Company Ltd @ ??? I’ll tell you as soon as I get this info.

Tags:IPO India , India Real Estate, Sobha, Dalal Street