MCX denies plans for IPO- Joseph Massey, deputy managing director

Joseph Massey, deputy managing directors (MCX) said to Reuters that they don’t have immediate plans to access the Capital Market with an Initial public offer (IPO). He said “there are no immediate plans . The newspaper may have had some sort of a misunderstanding. It is not true”

No more Entry Load for Mutual Fund units

SEBI has gifted the Investors by waiving the entry load charged by the Asset Management Company (AMC). This benefit is available with the investor only when if they buy units from the AMCs. Ruling will be effective from 4 January 2008. This movement will change the industry dynamics. At present maximum of the funds mobilized through brokers and distributer. In the recent years Mutual Funds grows with many folds. Now it is expected that investor prefer to buy MF units directly from the AMCs. Considering the expectation, AMCs have to develop the infrastructure accordingly. Also less buying cost may give further boost up the industry.

Bafna Pharmaceuticals filed Draft Prospectus with SEBI

Chennai based pharmacy company filed a draft Prospectus with Securities exchange Board of India (SEBI) on 27 December 2007 for raising Rs. 25.6 crores by issuing 64 lacs. equity shares of Rs. 40 each (including at a premium of Rs. 30 each) Said IPO is Fixed price issue. The issue will constitute 40.05% of the post issue paid up capital of the company. Equity is available at PE of 15.21 based on Pre issue average EPS of Rs. 2.63.

The companies’ main objects of fund raising are Brand Building exercise in domestic market, setting up R& D facilities, and repayment of the high cost debt. The company has been rated by dun & Bradstreet during July 2006 and has obtained the rating of SE 2A indicating high performance capability and High Financial Strength. The BPL has total sales revenue of Rs 38.62 crores and a bottom line of Rs. 10.42 crores.

Yash Birla Group Company filed DRHP with SEBI

Birla Cotsyn, Yash Birla Group Company has filed a Draft Herring Prospectus (DRHP) with Securities Exchange Board of India (SEBI) on 24 December 2007. Company plans to raise funds of Rs. 100 crores. The Issue will likely to hit the market in March 2008. Book Running Lead Manager to the Issue is All Bank Finance, NEXGEN Capital Ltd, Saffron Capital advisor, Chartered Capital and Investment.

Multicommodity Exchange Valued at USD 1.1 bn

Multicommodity Exchange (MCX) plans to come up with an IPO this year. They are expected to raise funds of USD 12.5- 15mn. It may dilute 10% of its promoter holding. VCCircle.com report says that the issue will be managed by DSP Merrill Lynch, Kotak Securities and Enam

Hited a centuary!

Passed Year 2007 is a dynamic year rather accomplishing year for the financial domain strata whether it is Corporates, Investors, Investment Banker, Funds houses. 20th December gives a great ending to the year 2007 completed with a 101 IPOs. Last IPO of Precision Pipes and Profiles Company Ltd, ended with a great success with subscription of more than 11 times and retail investors showed a aggressive interest in subscribing to the Issue more than 20 times proving the fundamentals of the Company as well as economy. Lead Manager to the Issue are NEXGEN Capitals Ltd. and UTI securities Ltd.