Sunday, August 30, 2009

Stock Market Investment Strategies - BSE introduces IPO index!!!

BSE has launched an IPO index to track the value of stocks for two years after listing. The IPO index is similar to Sensex (which includes all the 30 sensex stocks) or the Bankex (this includes all the banking heavy weights). When the index was introduced there were 48 stocks in it. The BSE said its IPO index will track companies which have a market capitalisation of at least 1 billion rupees on listing day.

You can trade for these as if they are normal company shares. Even though they are a group of shares you cant trade them separately once you buy it. i.e. if you buy sensex then you can't sell RIL separately from the lot.

Looking at the history, it’s interesting to note that the IPO index is often rise at a faster pace than the market. However, BSE has states that a stock is included on the third day of its listing, and not at the price at which the stock was offered to the public. This takes away the listing gains that is often seen in the IPO market.

On the day IPO index was launched, some of the shares that are a part of it (in alphabetical order).

BGR Energy Systems
Brigade Enterprises
Edelweiss Capital
Everonn Systems
Future Capital Holding
Koutons Retail India
Mahindra Holiday Resorts
Motilal Oswal Financial Services
Mundra Port and Special Economic Zone
Omaxe
Onmobile Global
Power Grid Corporation of India
Puravankara Projects
Reliance Power
Religare Enterprises
Take Solutions
Transformers & Rectifiers


NHPC IPO to be listed on 1st sept

NHPC is to be make a debut in the stock markets on the 1st of next month.

NHPC has raised Rs 6,048 crore through the recently concluded IPO. The IPO, biggest since the Reliance Power issue in January 2007, was subscribed 23.5 times.


Listing Details:

IPO Listing Date: Sept 1
Script Code: 533098
Symbol: NHPC
Group: 'B' Group
Issue Price: Rs. 36/-


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Saturday, August 22, 2009

Limit on usage of third party ATM


RBI has decided to do away with the unlimited usage of third party ATM for withdrawal from saving account. RBI had earlier given a circular to all banks allowing unlimited withdrawal from any ATM from across India. This was effective from April this year.

Third party ATM charge the bank with Rs 20 per transaction. This made the banks appeal to RBI for change in the usage of third party ATM's. It was seen than more often the consumer used other bank ATM's even for small withdrawals like a few hundred ruppees.

From October onwards there will be a maximum limit of 5 withdrawals from third party ATM's in a month. There is also a maximum limit of Rs 10,000 per transaction.

Thursday, August 20, 2009

Adani Power IPO Unchanged on listing

Adani Power, which raised 30.2 billion rupees in the IPO, was almost unchanged in its debut. This may be because of speculation that the company’s future expansion may slow. The company will be using the funds to partly finance power projects in the state of Gujarat and Maharashtra.

The issue price of the IPO was fixed at Rs100 per share and at the end of the day it was seen at Rs100.1 This share should be seen as a long term investment. Any huge surge in this share soon is highly unlikely.

Friday, August 14, 2009

JSW Energy IPO soon

SW Energy is planning to raise Rs 3,000 crore via the initial public offering (IPO). JSW Energy is planning to use its IPO proceeds to fund expansion.  JSW Energy will primarily use the money to part fund power projects and mining venture. The company is building power plants with a combined capacity of nearly 3,000 megawatts (MW) and has plans to develop utilities in western, eastern and southern India.

Adani Power and state-run NHPC have raised a combined $1.9 billion through IPOs in the last one month with their offerings subscribed more than 20 times each.

JSW Energy is not a subsidiary of the listed company JSW Steel. It holds just about 5.7% stake in the company. This is how the entire promoter holding stands. Sajjan Jindal holds 5.5% stake, JSW Investments hold 39% stake and Sun Investments hold 19.82% stake. 


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Related Posts:

NHPC IPO

Initial Public Offering

All about Stocks

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Sunday, August 9, 2009

Adani Power IPO Allotment


Click here allotment status for this IPO. 

The issue price for Adani Power IPO is fixed at Rs.100/- per equity share. This is the higher end of the price band. The IPO is expected to hit the market on August 20.


Initial Public Offering

IPO or the Initial Public offering is the first sale of stock by a private company to the public.They are usually issued by smaller, younger companies seeking capital to expand its operations. They are also done by large companies looking to become publicly traded.


IPOs can be a risky investment. For the individual investor, it is tough to predict what the stock will do on its initial day of trading and in the near future because there is often little historical data with which to analyze the company. However, this risky investment can fetch excellent results as well in a very short time.


The money paid by investors for the newly-issued shares goes directly to the company in contrast to a later trade of shares on the exchange, where the money passes between investors. The company is never required to repay the capital, but instead the new shareholders have a right to future profits distributed by the company.


A company that is planning an IPO appoints lead managers to help it decide on an appropriate price at which the shares should be issued. This is called the Issue price of the IPO. The most common method of issuing a IPO is though the book building process. The other method would be to fix a price by the company with the help of lead managers.


After the initial bidding of the IPO, the company issues the shares to successful bidders. This process takes about 15-20 days before it starts trading in the stock market. The initial day of trading usually sees a large fluctuation in the share value. This can used by traders for making profit.

Related Topics:

NHPC IPO

Adani Power IPO

All about stocks