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NEW DELHI: Underwriting could become mandatory for the initial public offers (IPOs). The proposal is part of the initiatives which are under consideration of the market regulator to discipline the primary market and ensure quality paper.

An underwritten issue, it is understood, would also give confidence to investors that the issue has been vetted by domain experts after considering the risk factors. It could help obtain better pricing as institutions would not want to underwrite issues that are over-aggressively priced and run the risk of devolving substantially. The move comes in the backdrop of some of the big IPOs - Emmar MGF, Wockhardt etc - being called off. In February, these issues were called off by the promoters after failing to woo investors following cut in price band and extension of deadline.

The proposal has already been given an in-principle go-ahead by the Primary Market Advisory Committee, which is at present discussing the issue of making the IPO process more efficient and transparent. The nitty-gritty of its implementation, however, is yet to be firmed up, sources told ET. However, the proposal will finally have to be cleared by the SEBI board before it is implemented.

Source

Reliance Power on Sunday announced it would offer non-promoter shareholders three bonus shares for every five held on the record date.

The move to issue the bonus is being projected as an attempt to compensate RelPower shareholders for losses suffered after the stock listed below the offer price on February 11.

Retail buyers were offered the stock at Rs 430 per share while others had the option to buy it at Rs 450. On Friday, five sessions after the announcement of the bonus proposal, the stock closed at Rs 417, still 7.3% off its IPO price of Rs 450.

After the bonus issue, the cost of holding each share will go down to Rs 269 for retail investors while for others, it will be Rs 281. This, the company said, would cut investors’ losses by 40%. However when Friday’s closing stock price is compared with the post-bonus price, the gain for retail shareholders is Rs 148 while for others it is Rs 190.

India’s benchmark stock index tumbled the most in two weeks, led by Reliance Industries Ltd., after the government forecast economic growth would slow as higher interest rates curb consumer spending. Reliance Industries, the nation’s most valuable company, and Larsen & Toubro Ltd., the country’s largest engineering company, fell to two-week lows. Oil companies declined after Minister Murli Deora declined to say when the Cabinet would discuss retail pump prices for gasoline and diesel.

India, Asia’s third-largest economy, is expected to expand 8.7 percent in the year to March 31, the weakest pace since 2005, according to India’s statistics office. Growth was 9.6 percent in the last financial year. The central bank has raised interest rates nine times since October 2004 to contain inflation.

Reliance Infratel IPO is the next big public issue from the Anil Dirubhai Ambani led ADAG group.  Reliance Infratel IPO will issue over 8.91 crore equity shares of Rs. 5 each, with the price band to be decided later.The company has filed its Draft prospectus with SEBI for Reliance Infratel IPO which is engaged in the tower business and plans to raise around Rs. 5000 to 6000 crore through the public issue by selling only 10% of its post-issue paid capital which puts the overall company valuations around Rs. 60000 crore. It is previously known that the company has sold 5 percent stake in the Reliance Telcom Infrastructure valued at Rs. 1400 crore to a group of institutional investors.

Reliance Infratel IPO Analysis : Company is engaged in the business of Building and operating the telecommunication towers and has over 14,000 towers across India when its was last valued, and the company has set a target to reach 40,000 towers by the end of March 2008. Reliance Infratel is the single largest tower company in India with aggressive expansion plans to add more than 20000 towers in the coming financial year.

Reliance Infratel is the demerged tower business company of Reliance Communications which holds 95 per cent stake in the company . With the upcoming Reliance Infratel IPO, Reliance Communication share holders will get value unlocking of around Rs. 250 to Rs 300 per share. Based on this news the stock price of Reliance Communications soared up to close at Rs. 685 per share up by 11 per cent.

Post Reliance Infratel IPO , the company plans to use the funds raised through the issue for financing the passive infrastructure development of tower sites. Reliance Infratel IPO is to be listed on the BSE and NSE and the company has appointed

More information on the Reliance Infratel IPO Subscription dates and analysis and review of the Reliance Infratel IPO will be posted here soon. Do check back for updates on the Reliance Infratel IPO

Reliance Power IPO Listing Date has been announced by the company and the issue is all set to list on the BSE and NSE exchanges on Monday, 11th of February, 2008. Reliance Power IPO Allotment has been recently completed in record time and the Refunds have already started coming in to the bank accounts as per the registrar. Reliance Power IPO Listing price is expected around Rs. 600 according to most of the analysts. Grey Market Premium for the issue is also quoting around Rs. 180, which indicates that the listing is expected at over Rs. 625. Investors can stay invested in the Reliance Power IPO with medium to long term horizon, as the company is expected to do well in the buzzing power space in the coming years. Good luck for all and can definitely expect that the listing of Reliance Power IPO will bring more joys to the markets. Reliance Power IPO stock code will be updated soon. Do visit us back for Reliance Power IOP listing Details.

Mumbai (PTI): The Bombay Stock Exchange benchmark Sensex moved up by 253.45 points in early trade on Friday on emergence of buying by funds at existing lower level.

The 30-share index, Sensex, which lost 110 points on Thursday, bounced back by 253.45 points to 17,902.16 in the first five minutes of trade.

Similarly, the wide-based National Stock Exchange’s index Nifty also rose by 77.90 points to 5,215.35 as most of the heavy-weight stocks like Reliance Industries and Infosys Technology gained substantial ground.

Anil Dhirubahi Ambani group (ADAG) is likely to refund the excess money of Reliance Power IPO from February 1, as the working of share allocation may likely to complete today as per market sources assumes.

The market sources has spread the notion that 4.3 million investors out of 5.0 million will get only 15PO shares each who has applied for more than 225 shares.

No share would be allotted to those who have applied less then 225 shares.

(more…)

SENSEX CRASHES…

Sensex, Nifty see largest-ever fall

It was nightmare on Dalal Street today as the market saw its second biggest fall since 2006.

Sensex closed at 17605.35, down 1408.35 points and Nifty at 5208.80, down 496.50 points from the previous close.

Source : Rediff

Public Power Issue listing likely in Feb

Mumbai, Jan 19 Reliance Power IPO’s issue price has been fixed at the top end of the price band at Rs 450 per equity share of Rs 10; the issue is likely to get listed some time in February after the allotment of shares to applicants.

On the prospects of retail investors getting allotment of shares, Mr Anil Ambani, Chairman, Reliance Anil Dhirubhai Ambani Group , said, “It will be ensured that each and every applicant is allotted a bare minimum number of shares.”

Retail individual investors bid 14.4 times the 6.84 crore shares offered under the retail quota. Price for retail investors has been fixed at Rs 430 per share, a discount of Rs 20 per share.

“The issue received a record 50 lakh retail applications and the retail investors made a commitment of Rs 44,000 crore, which was enough for the issue to have been fully subscribed by the retail investors itself,” Mr Ambani, told newspersons during a press conference in Mumbai on Saturday.

In terms of total application money deposited in banks, again the Reliance Power IPO set a record by mobilising Rs 1.15 lakh crore, it was stated during a media briefing on the highlights of the public issue.

The largest IPO in terms of money being raised, at Rs 11,700 crore, drew a phenomenal response from both institutional and retail investors by taking the subscription count to 73 times the 22.8 crore shares on offer, as per the final composite data after the closure of the issue on January 18.

Retail investors also had the option of depositing Rs 115 per share at the time of application.

Corporates’ and the high net worth individuals’ bids reached 190 times for 2.28 crore shares on offer. The portion reserved (13.68 crore shares) for qualified institutional buyers including FIIs got subscribed 82 times.

Source: The Hindu Business Line

The BSE Sensex or Bombay Stock Exchange Sensitive Index is a value-weighted index composed of 30 stocks with the base April 1979 = 100. It consists of the 30 largest and most actively traded stocks, representative of various sectors, on the Bombay Stock Exchange. These companies account for around one-fifth of the market capitalization of the BSE.

The base value of the Sensex is 100 on April 1, 1979 and the base year of BSE-SENSEX is 1978-79.

At irregular intervals, the Bombay Stock Exchange (BSE) authorities review and modify its composition to make sure it reflects current market conditions.

The abbreviated form “Sensex” was coined by Deepak Mohoni around 1990 while writing market analysis columns for some of the business newspapers and magazines. It gained popularity over the next year or two.

The stock market has grown by over ten times from June 1990 to today. Using information from April 1979 onwards, the long-run rate of return on the BSE Sensex can be estimated to be 0.52% per week (continuously compounded) with a standard deviation of 3.67%. This translates to 27% per annum, which translates to roughly 18% per annum after compensating for inflation.

Click here for more details

- All About Sensex, Launch of BSE Sensex
- What is Sensex in the stock market?
- What are the objectives of SENSEX?
- How to calculate BSE SENSEX?
- What is the beta of SENSEX scrips?
- SENSEX - Scrip selection criteria
- Maintenance of SENSEX
- How is the closing Index calculated?
- What are the criteria for selection and review of scrips for the SENSEX?
- Who selects these 30 stocks & How do they select these 30 stocks?
- Dollex series of BSE indices
- Book Building - About Book Building
- Definition of Free-float & Determining Free-float factors of companies
- Understanding Free-float Methodology & Its Major advantages
- Book Building - Glossary
- What are the BSE Sensex & the NSE Nifty?
- Technical Analysis of Indian stock market BSE Sensex Index
- How are adjustments for Bonus, Rights and newly issued Capital carried out in SENSEX?
- The Sensex story: From 1K to 18K
- The Sensex story: From 1K to 20K (Sensex from 1000 to 20000)
- BSE 100 Index
- BSE 200 Index
- BSE 500 Index
- Companies that form the NSE Nifty Index
- BSE TECk INDEX
- BSE BANKEX

Click here for more details about sensex:

http://caduniya.com/sensex-bse-india-stocks/

Business Profile:  

Reliance Power Limited is part of the Reliance Anil Dhirubhai Ambani Group and is established to develop, construct and operate power projects domestically and internationally. The Company on its own and through subsidiaries is currently developing 13 medium and large sized power projects with a combined planned installed capacity of 28,200 MW, one of the largest portfolios of power generation assets under development in India. Our 13 power projects are planned to be diverse in geographic location, fuel type, fuel source and off-take, and each project is planned to be strategically located near an available fuel supply or load center. The identified project sites are located in western India (12,220 MW), northern India (9,080 MW) and northeastern India (2,900 MW) and southern India (4,000 MW). They include six coal-fired projects (14,620 MW) to be fueled by reserves from captive mines and supplies from India and abroad, two gas-fired projects (10,280 MW) to be fueled primarily by reserves from the Krishna Godavari Basin (the “KG Basin”) off the east coast of India, and four hydroelectric projects (3,300 MW), three of them in Arunachal Pradesh and one in Uttarakhand. Reliance Power has acquired the two ultra mega power projects of 4,000 MW each at Sasan in Madhya Pradesh and Krishnapatnam in Andhra Pradesh. The 7,480 MW project to be located at Dadri in Uttar Pradesh is expected to be the largest gas-fired power project at a single location in the world. We intend to sell the power generated by these projects under a combination of long-term and short-term PPAs to state-owned and private distribution companies and industrial consumers.   Website: http://www.reliancepower.co.in

Reliance Power IPO News

Reliance Power IPO subscribed 5.4 times at Rs 450/sh
Reliance Power IPO has subscribed 5.4 times. All bids are at Rs 450 per share, a higher end of band Rs 405-450…..(Moneycontrol.com)

Reliance Power IPO fully subscribed January 15, 2008 10:20 IST
Anil Ambani group’s $3-billion Reliance [Get Quote] Power IPO on Tuesday got fully subscribed within minutes of its book building process, which started this morning, investment banking source said.…..(Rediff.Com)

Subscribe to Reliance Power IPO for listing gains: Experts
2008-01-14 21:58:38
Reliance Power is planning to raise around Rs 10,530-11,700 crore from its initial public offering (IPO) of 26 crore equity shares with a face value of Rs 10, for cash, a price decided through 100% book building process. The price band is at Rs 405-450 per share….(Moneycontrol.com)

SAT adjourns hearing on Reliance Power till Jan 21
14 Jan, 2008, 1352 hrs IST, PTI
MUMBAI: Securities Appellate Tribunal on Monday adjourned its hearing till January 21, on complaints against Anil Ambani group’s three-billion dollar Reliance Power IPO, scheduled to hit the market on Monday. ….( Economicstimes.com )

Anil Ambani group’s Reliance Power IPO on Tuesday generated a demand of close to Rs 1 lakh crore (Rs 1 trillion) within four hours of start of the book building process, with the issue getting oversubscribed nearly 10 times.

Source 

Tuesday, January 15, 2008. It’s sure everyone’s already started to accumulate funds to invest in the Reliance Power IPO. History stands testimony that such a big issue is definitely bound to give decent returns to retail investors since the retail investor category will not get heavily oversubscribed incase of IPO’s with a huge issue size. Reliance Power IPO is set to be the biggest of them all and here is a chnace for retail investors to make some risk free returns.

Reliance Power IPO will be open for subscription only for 4 days since the IPO closes for subscription on Friday, January 18, 2008. Reliance Power IPO will be fully covered in this blog and details including Reliance Power IPO Subscription details and Reliance Power IPO Allotment status will be posted here as and when they are available.

Mumbai (PTI): The benchmark Sensex recovered a major part of its initial losses, but was still in the negative terrain on selling at higher levels amid weak global cues.

The Bombay Stock Exchange (BSE) 30-share barometer fell to a low of 19,768.98 immediately after resumption of dealings, down by over 160 points over Tuesday’s close of 19,929.06.

However, it recovered partly to 19,870.74 at 10.30 am, still showing a fall of 58.32 points.

The index had surged by a record 893.58 points or 4.69 per cent on Tuesday.

The broader S&P CNX Nifty of the National Stock Exchange (NSE) was quoted at 5,948.20, a rise of 10.30 points over the previous close of 5,937.90.

Besides Nikkei, all other Asian indices were trading in the red on Thursday morning on the back of overnight fall on Wall Street.

Dealers attributed the loss on the Sensex to selling at higher levels and expected consolidation in a range of 18,000 and 21,000 level.

Foreign Institutional Investors (FIIs) bought shares worth Rs 163 crore (provisional) on November 14 and reportedly they were net sellers to the tune of Rs 1,951 crore during this month so far.

Bharti Airtel, Grasim, Hindalco, Maruti, NTPC, ONGC, REL, SBI, Tata Motors and Tata Steel were quoted firm, while RIL, BHEL, HDFC, HDFC Bank, ICICI Bank, Infosys Tech, Satyam Computer, TCS and Wipro showed losses.

LATEST & CURRENT UPDATES & NEWS ON SENSEX AND STOCK MARKET

Click here to know all about BSE Sensex

India’s Sensitive Index topped 20,000 for the first time, buoyed by record inflows from U.S. and European investors that have caused the benchmark to double in less than two years. The stock market has risen about 39 percent since it became the third emerging market after China and Russia to surpass $1 trillion in May, helped by the fastest economic growth in 60 years and a strengthening currency.

“Liquidity has played an important role in this rally,” said Chakri Lokapriya, who manages $850 million of stocks in India, Brazil, Russia and China at BNP Paribas Asset Management U.K. Ltd. in London. “Investors have reduced exposure to western markets and as a result increased flows to emerging economies like India and China.”

Investors based outside India bought a record $17 billion of equities this year, according to the Securities and Exchange Board of India, the nation’s regulator.

The Bombay Stock Exchange’s Sensex index gained as much as 4.1 percent to 20,024.87 as the world’s second-fastest pace of economic growth lifted profits at Larsen & Toubro Ltd. and Maruti Suzuki India Ltd. The index closed 3.8 percent, or 734.5 points higher, at 19,977.67 at 3:30 p.m. local time.

The Sensex had its biggest advance in 6 1/2 years last week after the regulator allowed more funds to buy stocks. The index took eight days to recover from a one-minute almost 10 percent slump on Oct. 17 triggered by proposed curbs on overseas buying.

Sensex hits a new high past 20000, ends 735 pts up

Strong global markets, impressive results from some top notch companies and expectations of a cut in bank rates triggered a massive rally on the major Indian bourses today. As stocks cutting across sectors surged higher on sustained buying support, the benchmark BSE index Sensex created yet another record when it vaulted past the 20,000 mark for the first ever time in history.

The benchmark, which needed no more than five sessions to vault from 18,000 to 19,000 took a comparatively longer period for its next 1,000 points jump. However, considering the fact that it had plunged to as low as 17,171.45 on 22 October 2007, a week after scaling the 19k peak, its feat is simply incredible, to say the least. From that low on 22 October 2007, the Sensex has spurted over 2800 points in a short span of six sessions.

The market regulator’s restrictions on investments through Participatory Notes notwithstanding, stock prices have been moving up quite sharply over the past few sessions.

After opening on a buoyant note at 19,621.39, a positive gap of over 375 points, the Sensex sailed past 19,900 around noon thanks to strong buying in capital goods, oil, bank and telecom stocks. Auto and information technology stocks joined the rally a little later. Hectic buying was seen in several midcap and smallcap stocks as well.