IPO of the Birla Cotsyn survives now on the 8th day after opening of the issue. Issue has subscribed fully one time at 3:00 PM on the last day of the issue. (source NSE) This Public Issue creates a big hope in the Indian Primary market for its investors. Investors mood still seems tough & dicey but still hope in the market is there with this issue.
Above quoted Issue subscription figure of one time is based on the floor price band i.e. Rs. 12/- and at the cap price issue is subscribed at 1.14 times.
Lead Managers to this Issue are NEXGEN Capitals, Allbank Finance, Safron capital Advisors, Chartered Capitals
Wednesday, July 9, 2008
Monday, July 7, 2008
Bear’s impact on IPO of Birla Cotsyn- Yash Birla Group Company
Bear doesn’t even spare the long lasting name Birla. Yash Birla Group Company is open with Public issue these days. But market sentiments seem not to spare it at all. Although the issue price band is decided to be very marginal & lucrative for the investors i.e. revised Rs. 12 – 14 initially before revision Rs. 15 – 18 but investor’s mood is seems to be tough this time.
Issue of Equity shares was open on 30th June 2008 for raising Rs. 144.18 crores including promoters’ contribution of Rs. 36.65 crores through 100% book building process. Initially issue was supposed to close on 4th July 2008 but due to Bear’s power, issue is keeping open for another three working days till 9th July 2008 with further revision in price band to Rs. 12 – Rs 14. With this revision in the price band , if the issue is subscribed at Rs. 14 the promoters’ stake would be 34.13% post money or if issue is subscribed at Rs. 12 the Promoters would left only with 33.01% stake. Earlier which was 36.25% at the original cap price. This price revision may cost the promoters 3.25% stake in the company
Issuer Company
BCIL belongs to the Yash Birla Group (YBG) of companies and was incorporated on 24th September, 1941 by Mr. R.D. Birla under the name and style of M/s. Jamod Ginning Company Private Limited. It was renamed as M/s Birla Agro Private Limited and further changed to Birla Cotsyn (India) Pvt. Ltd and consequent to the conversion of the company into a Public Limited Company, its name has been modified to Birla Cotsyn (India) Ltd with effect from 30 May, 2006.
In order to ensure success in BCIL expansion plans, a 50:50 Joint Venture Agreement (JVA) was entered into between the YBG, through its chief promoter Mr. Yash Birla and the P.B.Bhardwaj Group (PBG) through its chief promoter Mr. P.B.Bhardwaj. The main purpose of this JV is to enable the JV partners to combine their resources and expertise and carry on the business of manufacturing, marketing and distribution of the products in India as well as other places.
Issue of Equity shares was open on 30th June 2008 for raising Rs. 144.18 crores including promoters’ contribution of Rs. 36.65 crores through 100% book building process. Initially issue was supposed to close on 4th July 2008 but due to Bear’s power, issue is keeping open for another three working days till 9th July 2008 with further revision in price band to Rs. 12 – Rs 14. With this revision in the price band , if the issue is subscribed at Rs. 14 the promoters’ stake would be 34.13% post money or if issue is subscribed at Rs. 12 the Promoters would left only with 33.01% stake. Earlier which was 36.25% at the original cap price. This price revision may cost the promoters 3.25% stake in the company
Issuer Company
BCIL belongs to the Yash Birla Group (YBG) of companies and was incorporated on 24th September, 1941 by Mr. R.D. Birla under the name and style of M/s. Jamod Ginning Company Private Limited. It was renamed as M/s Birla Agro Private Limited and further changed to Birla Cotsyn (India) Pvt. Ltd and consequent to the conversion of the company into a Public Limited Company, its name has been modified to Birla Cotsyn (India) Ltd with effect from 30 May, 2006.
In order to ensure success in BCIL expansion plans, a 50:50 Joint Venture Agreement (JVA) was entered into between the YBG, through its chief promoter Mr. Yash Birla and the P.B.Bhardwaj Group (PBG) through its chief promoter Mr. P.B.Bhardwaj. The main purpose of this JV is to enable the JV partners to combine their resources and expertise and carry on the business of manufacturing, marketing and distribution of the products in India as well as other places.
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