Gravita India Ltd IPO Message Board (Page 40)

Great News:

Source-Economic times:
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Small investors may get bigger share in PSU floats


NEW DELHI: The department of disinvestment plans to pitch for a higher quota for retail investors in forthcoming share sales at state-run companies, as it looks to use the buzz generated by the Coal India IPO to take equity culture to Indian households.

Existing norms stipulate that at least 35% of the shares offered in a book-built share sale, where investors are asked to bid in a pre-decided price band, must be reserved for retail investors.

The retail portion of the Coal India offer was subscribed 2.31 times, providing a fitting backdrop for an increase in the quota for retail investors.

“The idea is to share the wealth of public sector companies with the public,” said a senior finance ministry official. “With more purchasing power in the hands of retail investors, we expect good response from them,” he said, requesting anonymity.

Sebi’s decision to double the retail investment limit in public offers to Rs 2 lakh from Rs 1 lakh will help small investors benefit more from higher reservation. However, the increase in retail quota is likely to be done on a case-to-case basis, after consulting the company concerned and the administrative ministry.

“We’ve not yet decided on this. A final call will be taken only after discussions with the PSU concerned and its administrative ministry,” the official said.

Indications are that all stakeholders may not be receptive to the idea for fear of poor retail response to the offer. “Why reduce the qualified institutional bidder (QIB) portion. Some of these investors are large funds, which invest in a company for a longer term. Sacrificing them for more retail participation makes no sense,” said a senior public sector executive, who asked not to be named.

The move is aimed at sharing public wealth with small investors, spreading equity culture to a wider population, and broad-basing the market.

Jagannadham Thunuguntla, strategist at SMC Global Securities, sees nothing wrong in a higher quota for retail investors. If unsubscribed, the retail portion could go to high net worth individuals (HNIs) and QIBs. “If the government wants to provide more room to retail investors, that is perfectly all right,” he said.

In 2009-10, public offers from PSUs, including that of power producer NTPC, received lukewarm response from retail investors. The retail portion of the NTPC offer was subscribed just 0.16%. The offers from REC and NMDC also met the same fate, with their retail portions failing to attract enough investors. Market analysts attribute this to aggressive pricing. All these issues received an overwhelming response after the government cut the offer price.

“Even for Engineers India and Satluj Jal Vidyut Nigam, the retail portions were subscribed three times over,” the official said, making a case for an increase in retail quota.

Given the budgeted divestment target of Rs 40,000 crore, state-owned companies will be the biggest issuers in the current financial year. Some of the major companies expected to hit the market this year are ONGC , IOC and Steel Authority of India.

Buying above 102 better.

gravita ka bhav 2750 chal raha he?any one exactly knew about it's kostak?

Financial figures are good and growing year by year. will it be good investment for the small investors b'coz i'm new in this field. Initially how much should i invest ?? can anyone suggest me??

In AHmedabad - Kostak is Rs. 2750/-

what is grey market kostak of this IPO?

congrats to my dear friends
on the wonderful listing of gyscoal.I have sold 50 percent at 105.Will take call for next 50 percent later

GEM, Sreedhar, SJ..Shall we give a shot in this IPO?

PKSK

U, UR BROKER, AND UR BROKERS CLIENT WHOSE SAME ADDRESS MULTIPLE APPLICATION HAS BEEN REJECTED AREEEEEEEE WRONGGG.

THE REASON FOR REJECTION COULD BE OTHER REASONS THAN SAME ADDRESS.IF U HAVE EVER READ THE TECHNICAL GROUNDS FOR REJECTION OF BIDS IN THE PROSPECTUS U WILL NOT FIND THIS REASON.

BY THE WAY HOW ONE COULD GET THE REJECTION AND ACCEPTANCE INFO SO EARLY, HOW DID THAT PERSON KNOW THAT HIS SOME APPLCNS ARE REJECTED FOR ALLOTMENT.

IF THAT REASON IS TAKEN INTO A/C FOR TECHNICAL REJECTION THEN 20% OF THE WHOLE APPLICATION WILL BE REJECTED I THINK.

FOR U , UR BROKER AND UR BROKER CLIENTS, READ THE REASON FOR TECHNICAL REJECTION AS PER COAL INDIA DRHP PAGE NO 353

Grounds for Technical Rejections
Bidders are advised to note that Bids are liable to be rejected inter alia on the following technical grounds:
• Bid submitted without payment of the entire Bid Amount or if the amount paid does not tally with the Bid
Amount;
• Age of First Bidder not given;
• In case of partnership firms, Equity Shares may be registered in the names of the individual partners
and no firm as such shall be entitled to apply. However a limited liability partnership firm can apply in
its own name;
• Bid by persons not competent to contract under the Indian Contract Act, 1872 including minors, insane
persons;
353
• PAN not mentioned in the Bid cum Application Form or ASBA Form, except for bids by or on behalf
of the Central or State Government and the officials appointed by the courts and by investors residing
in the State of Sikkim provided such claims have been verified by the Depository Participants;
• GIR number furnished instead of PAN;
• Bids for lower number of Equity Shares than specified for that category of investors;
• Bids at a price less than the Floor Price;
• Bids at a price more than the Cap Price;
• Submission of more than five ASBA Forms per ASBA Account;
• Bids at Cut-off Price by Non-Institutional and QIBs;
• Bids for a value of more than Rs. 1,00,000 by Bidders falling under the category of Retail Individual
Bidders;
• Bids by persons who are not Eligible Employees and have submitted their Bids under the Employee
Reservation Portion;
• Bids by persons who are not eligible to acquire Equity Shares of our Company in terms of all
applicable laws, rules, regulations, guidelines and approvals;
• Bids for number of Equity Shares which are not in multiples of [•];
• Category not ticked;
• Multiple Bids as defined in this Red Herring Prospectus;
• In case of Bids under power of attorney or by limited companies, corporate, trust etc., relevant
documents are not submitted;
• Bids accompanied by Stockinvest/money order/postal order/cash;
• Signature of sole and / or joint Bidders missing;
• ASBA Forms not being signed by the account holders, if the account holder is different from the
Bidder;
• Bid cum Application Forms and ASBA Forms does not have the stamp of the members of the
Syndicate or the SCSB and/or the Designated Branch, as the case may be;
• Bid cum Application Forms and ASBA Forms do not have Bidder’s depository account details;
• Bid cum Application Forms and ASBA Forms are not delivered by the Bidders within the time
prescribed as per the Bid cum Application Forms and ASBA Forms, Offer Opening Date
advertisement and this Red Herring Prospectus and as per the instructions in this Red Herring
Prospectus and the Bid cum Application Forms and ASBA Forms;
• In case no corresponding record is available with the Depositories that matches three parameters
namely, names of the Bidders (including the order of names of joint holders), the DP ID and the
beneficiary‘s account number;
• With respect to ASBA Bids, inadequate funds in the ASBA Account to block the Bid Amount
specified in the ASBA Form at the time of blocking such Bid Amount in the ASBA Account;
354
• Bids for amounts greater than the maximum permissible amounts prescribed by the regulations;
• Bids in respect whereof the Bid cum Application Form or ASBA Forms do not reach the Registrar to
the Offer prior to the finalisation of the Basis of Allotment;
• Bids where clear funds are not available in Escrow Accounts as per final certificate from the Escrow
Collection Banks;
• Authorisation for blocking funds in the ASBA Account not ticked or provided;
• Inadequate funds in the ASBA Account to block the Bid Amount specified in the ASBA Form at the
time of blocking such Bid Amount in the ASBA Account.
• Bids at Cut-off Price by Non-Institutional Bidders, QIBs bidding in excess of Rs. 1,00,000;
• Bids by any person outside India if not in compliance with applicable foreign and Indian Laws;
• Bids from within the United States or by U.S. persons (as defined in Regulation S) other than entities
that are both U.S. QIBs and QPs;
• Bids not uploaded on the terminals of the Stock Exchanges; and
• Bids in QIB and Non Insitutional Bidders uploaded after 4 PM on the Offer Closing Date.
IN CASE THE DP ID, CLIENT ID AND PAN MENTIONED IN THE BID CUM APPLICATION
FORM OR ASBA FORM AND ENTERED INTO THE ELECTRONIC BIDDING SYSTEM OF THE
STOCK EXCHANGES OR THE BOOK RUNNING LEAD MANAGERS/THE SCSBs DO NOT
MATCH WITH THE DP ID, CLIENT ID AND PAN AVAILABLE IN THE RECORDS WITH THE
DEPOSITARIES THE APPLICATION IS LIABLE TO BE REJECTED.

Objects of the Issue:
6. To meet the expenses of the issue;
7. To list the equity shares on the Stock Exchange

the max retail limit for this ipo is 1 lakh,

Good to see that anonymous comments have been removed...too much spam!!!

Dear Shriya sharma,

I dont see 2 lakh limit to retailers will be applicable for Gravita & PowerGrid issue. Hope we might see this getting implemented in Mangalore Iron Ore issue depending on the date in November which govt announces the issue.

Hope it helps !!!!!!

Regards,

Krishna

promoters are highly experienced and educated persons....so we can make trust on them..

GRAVITA WALO
PUT YOUR FINANCIAL FIGURES PLEASE

Shriya
Why shudnt we purchase Pondy Oxide which is in a simlar field n available at 5 PE?

as i have alread passed my comments on oberoi realty which is proved true and i have booked profit of rs.7000.in 78000 so follow me.

hi to all

What company is this..
What business..
PE ratio ?

Can anyone throw some light on this company.

can we apply 2 lakh application in this issue , application form is saying for 1 lac application as retail investor but as per sebi meeting last day they announce for 2 lakh ?????, any one on the board can confirm please ????