Vishal Retail likely to list at Rs 570-690

After receiving tremendous response from investors, especially HNIs, Vishal Retail will list on the bourses with 2,23,98,869 shares on Wednesday, July 4, 2007. The offer price was fixed at Rs 270 per share.

While talking to Moneycontrol.com on the subject of Vishal Retail's listing, analysts said that the stock is expected to list at around Rs 570-690.

Vishal Retail's price in the grey market is at around Rs 630-640.

Manish Bhatt of Prabhudas Lilladher says, "Vishal Retail is expected to list with premium of Rs 300-420, i.e. at Rs 570-690 tomorrow. Investors who got the shares in allotment, book partial profits and hold the balance for long term. The stock can also see the level of Rs 1000 in a few days."

RS Iyer of KR Choksey says, "After bullet response to its issue, Vishal Retail is expected to list above Rs 600 level and it can go upto Rs 700. Investors should book profits once it crosses Rs 600 mark."

The company had come out with an initial public offering, IPO of equity shares at the price band between Rs 230 - Rs 270 per equity share of Rs 10 each. The proceeds from the IPO will be used to meet the expenses of establishing new retail stores and to meet the expenses of the issue. The issue subscribed 81 times with the strong support from HNIs, which portion subscribed 370 times.

The company proposes to invest the proceeds of the issue to establish new retail stores. Of the total 32 stores to be set up this year, the IPO will fund for the establishment of 22 stores. The company will deploy Rs 104.15 crore of the net issue proceeds for setting up the stores in the current year. The setting up of the remaining stores will be funded through internal accruals.
The company will lease the real estate space for the stores and not buy the property.




BEML FPO oversubscribed 30 times

Follow on public offer of Bharat Earth Movers, BEML has received tremendous response from investors, subscribed 30.17 times, as per NSE website.

The issue received bids for 14.78 crore shares, in which bids for 38.07 lakh shares at cut off price.

BEML, multi-locational and multi-product manufacturer of mining and construction equipment, is open for subscription with its follow on public offer, FPO of 49,00,000 equity shares of Rs 10 each through a 100% book-building process, including a reservation for eligible employees of 4,90,000 equity shares. The issue closes today.

The price band is between Rs 1020 and Rs 1090 per share. The issue includes a reservation for eligible employees of 4,90,000 equity shares and a net issue to the public of 44,10,000 equity shares. The issue would constitute 11.77% of the fully diluted post-issue paid-up equity capital of the company.

The government currently holds 61.23% in BEML, mutual funds hold 13.89%, financial institutions/banks hold 7.26%, foreign institutional investors hold 7.8%, resident individuals hold 6.11% and corporate bodies hold 2.6%. Post issue, the government’ holding in BEML will not be less than 54%.

The book running lead manager to the Issue is ICICI Securities Primary Dealership Limited. The equity shares offered through this follow-on public offer, as specified in the RHP, are proposed to be listed on the BSE, NSE and the BgSE.

The issue proceeds will fund the building infrastructure expansion of the metro coach manufacturing facility at Bangalore and other capital expenditure including the upgradation of current facilities. The company also intends to use part of the proceeds to set up a 5MW Wind Mill for captive consumption and an R&D Centre of Excellence for Metro Coaches. The company will also earmark some part of the proceeds towards a voluntary retirement scheme for Employees.




DLF to debut on the bourses on 5 July 2007

Realty major DLF debuts on the bourses on Thursday, 5 July 2007. The company had priced its IPO at Rs 525 per share. The price band for the IPO was Rs 500 to Rs 550. Each share has a face value of Rs 2.

The IPO was subscribed 3.47 times. The IPO received total bids for 60.70 crore shares compared to issue size of 17.50 crore shares.

At Rs 525 per share, the IPO was priced 159 times its year ended March 2007 EPS of Rs 3.30.

Post issue promoter holding in the company is 88.24%. The post issue FII holding is 5.92%.

DLF group is one of the leading real estate developers in India. It has been focused on the National Capital Region i.e. Delhi and adjacent areas like Gurgaon. The group has developed over 220 million square feet (msf) of saleable area across segments like residential (apartments, row houses and plots), commercial building and retail properties.

It is one of the first developers to anticipate the need for townships on the outskirts of the fast growing cities and is generally credited with the growth of Gurgaon through the development of an integrated township spread over 3,000 acres.

DLF's consolidated profit before extra-ordinary items and tax stood at Rs 732.40 crore on revenue of Rs 1734.70 crore in the year ended 31 March 2007 (FY 2007).




HDIL IPO subscribed 6.5 times

The IPO of Housing Development and Infrastructure (HDIL) was subscribed 6.57 times, as per NSE data as at 18:00 IST. The IPO closed today.

At the offer price band of Rs 430 to Rs 500, the PE range is 17-19.8.




Muted response to IPO of Allied Digital Services

The response to the IPO of Allied Digital Services remained muted on the second day of the issue. The IPO was subscribed just 0.11 times by 18:00 IST today, 3 July 2007. The IPO closes on 5 July 2007

At the price band of Rs 170-Rs 190, the PE works out to 12.80-14.30, based on the company’s FY 2007 EPS of Rs 13.30 on post issue equity capital of Rs 17.29 crore.




Religare Enterprises files draft papers for IPO

Financial services firm Religare Enterprises has filed draft papers with Securities Exchange Board of India (Sebi) for an initial public offer. Religare will offer up to 11.36 million shares of Rs 10 face value through a book-built issue.

Religare also said it may issue up to 3.78 million equity shares in a pre-IPO placement.