Dalal Street

Background: Cairn India Limited is a wholly owned subsidiary of Cairn Energy PLC of UK. Cairn has been operational in India since several years with various Indian partners. Cairn India’s share in each and every major oil / gas field [DOC]. The Rajasthan oil field, Mangala, is the biggest asset of the company with oil reserves of 839 Million barrels.

Restructuring of Cairn India: Cairn Energy PLC held 100% of Cairn India Ltd. Cairn Energy PLC transferred all the Indian assets and operations to Cairn India Limited and Cairn Energy PLC held 100% stake in the company. It then planned to sell 30% stake in this company by means of an IPO.

Cairn India Ltd Pre-Placement: Cairn Energy PLC went for a pre-placement before the IPO. It sold approximately 10% of Cairn India Ltd to Malaysian Oil Giant, Petronas at Rs 176.48 per share. Videocon and other financial institutions also participated in the private placement and bought 1.8% of Cairn India. This gives the Cairn India a valuation of $6.5 Billion [Rs 30,000 crores]

Cairn India Financials: Total Income for FY2005 was Rs 223.02 crores and PAT of 102.4 crores. For the first of FY2006, their Total income stood at Rs 190 crores and PAT of 83.6 crores. Check out this document for financials of Cairn India.

Cairn India general IPO:
Issue opens on Dec-11-2006 and closes on Dec-15-2006
Issue Size: 328,799,675 equity shares of Rs 10 each at a price between Rs160 and Rs190 through Book Building issue.
Retail Individual Investors Issue Size: 30% approximately 100 Million shares. Issue size for retail investors will be between Rs 1,600 crores and Rs 1,900 crores.

Valuations of Cairn India Ltd: I am not sure how oil analysts and oil lobbies discount stocks like Cairn Energy, based on oil assets or cash flow ? I am hunting for various research reports and I will keep you folks posted on whether to apply for the issue or not.

Tags:IPO India, Cairn Energy PLC IPO, Energy Stocks, Oil Lobby

I have had many investors complain about non-receiving of shares allotted during IPO and refund of balance amount.

Parsvnath Developers Ltd IPO had many complaints of non-refund of money and shares not being credited into demat account. Also some complained about Lanco and DCB IPOs as well. In most cases Intime Spectrum is the registrar and is a worse registrar so far in India. [Intime doesn’t reply to e-mails, phones are always busy or they don’t respond] If you are a CEO of a company in India and planning for an IPO, then please don’t choose Intime Spectrum as the registrar for IPO.

So what should you do as an Investor to get your refund ? Wait for 21 Business days, and then start using the following methods to get your complaint resolved.

In most cases I have observed, their are errors regarding demat or client details. Intime needs DEMAT Account Client Master[this is different from your DEMAT Account Statement]. Send your client master + Application Details[Name, Number, etc] to the registrar by E-mail or Postal Mail. Wait for a week and if you still don’t have shares or refund, then try contacting by phone and later file a complaint with SEBI.

How to file complaint with SEBI – India ?

• Fill this online form made available on SEBI website. You will get a tracking number.
• If the online form doesn’t work, then download this form [PDF], Print it, Fill it and Post it to SEBI
• If you are sending it by postal mail, then send a CC of the form to BSE and NSE at following addresses

Bombay Stock Exchange Ltd
[Farzana Mehta or Rajesh Ghadi]
PHIROZE JEEJEEBHOY TOWERS,
DALAL STREET , MUMBAI- 400001
TEL : 91-22-22721233/4 FAX : 91-22-22721919

National Stock Exchange of India Ltd.
Investor Grievance Cell / Arbitration
Exchange Plaza,
Plot no. C/1, G Block,
Bandra-Kurla Complex
Bandra (E)
Mumbai – 400 051.

Hopefully, SEBI and the concerned companies wake up to investor woes before its too late.

Tags:IPO India, India Stock Market, Finance India, Invest India

The IPO of Sobha Developers Ltd is heavily oversubscribed. Compared to Parsvnath developers Ltd, the size of Sobha IPO was half but it did see lot of applications on the last day of the IPO.

NOTE: If you are having problems with Intime Spectrun w.r.t Parsvnath IPO – Refund or Shares not credited to your demat account, send me an e-mail to nascentnet@yahoo.com with your application number and city. We are launching a SEBI complaint against Parsvnath.

The final subscription figures of Sobha Developers that I just received on fax are as follows,

Qualified Institutional Buyers (QIBs) 168.8409 times subscribed
Non Institutional Investors 193.9597 subscribed
Retail Individual Investors (RIIs) 20.6839 subscribed
Employee Reservation 0.9320 subscribed. So some shares from Employee reservation will be made available to the above categories.

Lets analyze the Retail Individual Category subscription of Sobha Developers.

No of shares Offered: 24,01,282
No of Shares applied at Cut-Off: 4,68,19,100
Therefore, if we assume the IPO is priced at cut-off i.e is Rs640, then the issue is subscribed by 19.49 times. The allotment will be in the inverse ratio of subscription. So even for folks applying 150 shares, the allotment may go for lottery. [Many chances, it will not be known we know the demand in each category]

Good Luck!!! Don’t forget to e-mail if you have any complaints about Parsvnath and Intime Spectrum the third rate registrar.

Tags:IPO India, Sobha Developers IPO, Real Estate IPO , Parsvnath IPO Complaints

Little did PE and VC investors in 2000-01 knew that Indian BPO operations will lead the second wave of IT outsourcing to India. Those with a vision invested and are now cashing out, prime example Warburg Pincus in WNS Holdings.

ICICI Ltd, India’s Citibank which is at the forefront of banking revolution in India invested in a BPO company ICICI OneSource [Renamed as FirstSource] and is now listing the company with an offer for sale of equity shares. ICICI has filed for the draft prospectus and is likely to sell 9.56 crore shares at a price to be determined by book building. Proceedings of the IPO are to be used for acquisitions in BPO space.

Other investors in the company are, Metavante Corp, Temasek Investments, West Bridge Capital and Sequoia Capital.

Tags:IPO India, Firstsource IPO , BPO India , BPO+IPO