Friends,
Fixed price Issues are less frequent than normal bookbuilding Issues .As there is no new IPO other than Shekhawati I went back in time & had a look at earlier fixed price Issues & observed quite interesting facts.Fixed price Issues generally raise very low amount which range from 15 to 50 Crores.Here are few articles:
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Here is an article in DNA Money:
With demand far outstripping supply, the price of the share goes up astronomically. Fixed-price IPOs in general have done much better than book-built IPOs. The listing- day opening price of a fixed priced IPO, on an average, was almost 55% greater than the offer price.
By the close of trading on the listing day, the price was almost 84% greater than the offer price. This answers the question as to why most of the big issuers of equity capital do not go in for fixed-price IPOs.
Research has conclusively proved that fixed-price IPOs, over the years, suffer from "IPO underpricing" i.e. companies obtain lower issue proceeds as compared to what it might have raised had it been to able to raise capital at the listing price.
The book-building method works much better as it allows the market to discover its own price.
But investors seem to have cashed in here. Investors who held their shares on an average, saw their investments grow by 122.74%. Of the 11 fixed-price IPOs, only Uniply Industries is currently quoting at a price below its offer price. Shares like FCS Software (361%), Nandam Exim (470%), Shree Ganesh Forgings (107%) and Cyber Media (103%) have given astronomical returns .
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Here is another article in Financial express:
Returns range from 75-370% so far
Fixed-price IPOs score over book-built ones:
The number of fixed-price issues that have hit the primary market in the last six months may be small, but these issues have generated much higher returns than those of book-built issues which are the order of the day in the IPO market.
In the first six months of calendar 2005, the three fixed-price issues which hit the market have generated returns in the range of 75-370%. In the same period, the returns from book-built issues have been in the range of (-)7% to 110%. Kamlesh G, executive director, Centrum Finance, said: “The lack of participation from Qualified Institutional Buyers (QIBs), lower bidding from high networth individuals (HNIs) and the relatively lower price of a fixed-price IPO are the three reasons for fixed-price issues giving higher return than the book-built ones.”
Of the three fixed-price IPOs of calendar year 2005, Saksoft Ltd has given the best returns as compared to its issue price of Rs 30. The stock closed at Rs 140.60 on Friday, June 10, 2005, thereby moving up by 368.67%. This apart, Mangalam Drugs & Organics Ltd and Cyber Media (India) Ltd have generated returns of 73.86% and 75.75%, respectively. Cyber Media (India) Ltd was listed on the bourses on Friday.
“In a book-built issue, participants, especially HNIs, invest in a large way mainly at the upper band to get maximum allotment. Most of the bidding is funded through margin financing and therefore after the allotment of shares, HNIs offload their stocks to capitalise on the premium as well as to pay back their loans. On the contrary, in a fixed price issues, the price is generally soft, which is why players after allotment are not in a hurry to offload their holdings on the hopes of a rise in prices,” added Mr Kamlesh.
Prithvi Haldea, managing director, Prime Database, said, “The quantum of floating stock is small and speculative activity in a fixed-price IPO is also low when compared to a book-built IPO. This is the reason for higher returns in fixed-price IPOs.”
On the other hand, follow-up offers (FPOs) — both fixed-price and book-built –– have given less returns. Dena Bank, the only fixed price FPO of CY 2005, has given returns of 7.59%....
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Some of the fixed price Issues I found out from Chittorgarh site itself:
Samyabiotech Fixed price IPO:
/ipo/ipo_boa.asp?a=126
»» Issue Open: Sep 25, 2007 - Sep 28, 2007
»» Issue Type: Fixed Price Issue IPO
»» Issue Size: 15,000,000 Equity Shares of Rs. 10
»» Issue Size: Rs. 15.00 Crore
»» Face Value: Rs. 10 Per Equity Share
»» Issue Price: Rs. 10 Per Equity Share
»» Market Lot: 500 Shares
»» Minimum Order Quantity: 500 Shares
»» Listing At: BSE
Listing Day Trading Information
BSE
Issue Price: Rs. 10.00
Open: Rs. 17.50
Low: Rs. 13.85
High: Rs. 24.35
Last Trade: Rs. 15.30
Volume: 30,097,931
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Burnpur cement:
Issue Detail:
»» Issue Open: Nov 28, 2007 - Dec 03, 2007
»» Issue Type: Fixed Price Issue IPO
»» Issue Size: 31,825,100 Equity Shares of Rs. 10
»» Issue Size: Rs. 38.19 Crore
»» Face Value: Rs. 10 Per Equity Share
»» Issue Price: Rs. 12 Per Equity Share
»» Market Lot: 500 Shares
»» Minimum Order Quantity: 500 Shares
»» Listing At: BSE, NSE
Listing Day Trading Information
BSE
Issue Price: Rs. 12.00
Open: Rs. 18.45
Low: Rs. 17.80
High: Rs. 49.00
Last Trade: Rs. 46.35
Volume: 117,215,856
NSE
Rs. 12.00
Rs. 15.00
Rs. 15.00
Rs. 50.50
Rs. 48.05
152,748,815
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Most recent was Gallant Ispat:This IPO gave max returns:This IPO came when there was IPO market flood with Issues like careerpoint,Eros,Ashoka,Tecpro,Vatech etc & hence was subscribed only around 1 time in retail but still blew the fuses off.
Issue Detail:
»» Issue Open: Sep 22, 2010 - Sep 24, 2010
»» Issue Type: Fixed Price Issue IPO
»» Issue Size: 8,100,000 Equity Shares of Rs. 10
»» Issue Size: Rs. 40.50 Crore
»» Face Value: Rs. 10 Per Equity Share
»» Issue Price: Rs. 50 Per Equity Share
»» Market Lot: 125 Shares
»» Minimum Order Quantity: 125 Shares
»» Listing At: BSE, NSE
Listing Day Trading Information
BSE
Issue Price: Rs. 50.00
Open: Rs. 48.90
Low: Rs. 48.80
High: Rs. 87.40
Last Trade: Rs. 81.60
Volume: 51,419,283
NSE
Rs. 50.00
Rs. 52.00
Rs. 49.00
Rs. 87.00
Rs. 81.05
75,365,403
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