E&Y study: India ranked 8th in global IPOs stakes; total proceeds worth $246bn
New Delhi: The worldwide initial public offerings (IPO) in the financial year 2006 were worth a record $246 billion, according to a new study by Ernst & Young. The Indian IPO market emerged as the eighth largest, with $7.23 billion in net proceeds through 78 public issues, the report said.

According to the report, across the world, companies raised $246 billion, up from $167 billion in 2005, through a total of 1,729 IPOs. The IPOs were led by Chinese companies, who were at the top with net proceeds of $56.6 billion.

However, the largest number of IPOs came from the US with 187 offerings, followed by Japan with 185 and China with 175 IPOs.

"India's IPO market has been fairly broad-based in terms of transaction, although energy companies dominated with more than 50 per cent share of funds raised," the report, titled `Globalization,' said.

Mukesh Ambani's Reliance Petroleum, which raised $1.8 billion, ranked in the global Top 20 IPOs, which together raised $84 billion, representing 35 per cent of the total capital raised by all IPOs.

Emerging markets retained their favoured status with the four BRIC countries seeing combined IPO activity to the tune of $86 billion in 2006, up from $29 billion in 2005, while the number of listings almost doubled to 279, the report said.
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Rs1,485 crore Housing Development issue opens on June 28
Mumbai: Realty major Housing Development and Infrastructure Ltd (HDIL), a Wadhawan Group company, will enter the capital market on June 28 with an initial public offer of 2.97 crore shares, with a face value of Rs10 each.

The price band for the 100 per cent book building issue has been set at Rs430-Rs 500 per equity share. At the lower end of the price band, the company will raise Rs1,277 crore and on the upper end it would be Rs1,485 crore.

The company has a green shoe (a provision to sell additional share) option of up to 44.55 lakh equity shares.

The public issue constitutes 13.86 per cent of the fully diluted post issue paid-up capital of the company and it will stand at 15.65 per cent if the green shoe option is exercised fully. It has reserved 6 lakh equity shares for eligible employees.

In financial year ended March 31, 2007, HDIL registered a net profit of Rs548 crore, against Rs117 crore last year, while it was Rs14 crore in FY-05.

The company has land reserves of 112.1 million square feet (msf), of which, 45.5 msf of saleable area is set for ongoing projects. Approximately 66.6 msf are on the drawing board.

About 82 per cent of the total land reserves are in Mumbai Metropolitan Region.

Kotak Mahindra Capital Co Ltd and Enam Financial Consultants Pvt Ltd are the global co-ordinators and the book running lead managers, while ICICI Securities Ltd is the co-book running lead managers.
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Retail segment still shying away from ICICI Bank's follow-on issue
Mumbai: The portion reserved for qualified institutional buyers in the ICICI Bank's FPO was subscribed 10.38 times on the third day of issue, as against a subscription of 6.24 times on Wednesday.

The retail segment, however, has remained uninterested so far, with subscriptions being made to the tune of 0.11 times, as against 0.0362 times on Wednesday.

Non-institutional bidders have subscribed 1.51 times.

The follow-on public offer of 9.88 crore shares was subscribed 5.18 times, according to the NSE web site.
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SEBI: Institutional investor short selling to be allowed "soon"; investor protection fund under consideration
New Delhi: Institutional investors may soon be able to short sell shares, settled by delivery, in the Indian stock exchanges. The Securities and Exchange Board of India (SEBI) chairman, M Damodaran, has given an indication to this effect here today.

"Short-selling by institutions will soon be allowed," Damodaran told reporters on the sidelines of Financial Planning Congress 2007, organised by the Financial Planning Standards Board India.

The finance minister, P Chidambaram, had said in his Budget speech that institutional investors would be allowed short selling, settled by delivery, and also securities lending and borrowing to facilitate delivery.

An in-principle approval for short-selling by institutional investors, both domestic and foreign, had been given by the SEBI board as far as back as March 22, but the guidelines had yet to be issued.

Meanwhile, Damodaran also said that he expected the Investor Protection Fund (IPF) to be in place by next month. "We need a Board decision to set up this fund. The Board will consider this at its meeting on June 30", he added.
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