Galaxy Surfactants Ltd IPO (Galaxy IPO) Detail

May 13, 2011 - May 19, 2011

Incorporated in 1980, Galaxy Surfactants Ltd is in the business of manufacturers and marketers of surfactants and specialty chemicals in India for the Personal and Home Care industry. Galaxy Surfactants produce a range of cosmetic ingredients including active ingredients, UV protection and functional products. Company's products used by many large FMCG companies in skin care, hair care, oral care, body wash, sun care, household cleaners and fabric care products.

Company's product portfolio has 66 products and its sales spread over 70 countries around the world. Galaxy Surfactants is a certified supplier and preferred vendor for leading companies in the field of personal and home care. Company's global customer includes Beiersdorf, Colgate Palmolive, Ecolab, Henkel, Diversey, L'Oreal, Reckitt Benckiser and Unilever. Galaxy domestic customers include Ayur, CavinKare, Dabur, Emami, ITC, Marico, Procter & Gamble and many more.

Company Financials

ParticularsFor the year/period ended (in Rs. Million)
Total Income5941.805693.203889.553295.122725.26
Profit After Tax (PAT)403.42267.02261.79255.2560.70

Objects of the Issue

The objects of the Issue are to:

1. fund the capital expenditure of company's step down subsidiary GC Egypt, through investment in company's subsidiary, GHML;
2. fund the capital expenditure for setting up new manufacturing facility at Jhagadia, Gujarat;
3. expand the capacities at company's existing manufacturing units at Tarapur;
4. expand the capacities at company's existing manufacturing units at Taloja;
5. general corporate purposes.

Galaxy IPO Details

IPO Date May 13, 2011 to May 19, 2011
Listing Date [.]
Face Value ₹10 per share
Price ₹325 to ₹340 per share
Lot Size 20 Shares
Issue Size5,930,000 shares of ₹10
(aggregating up to ₹0.00 Cr)
Issue Type Book Built Issue IPO
Listing At BSE, NSE
Company Promoters

The promoters of the company are:
1. Mr. Unnathan Shekhar, aged 56 years, is the Managing Director of the Company.
2. Mr. Gopalkrishnan Ramakrishnan, aged 56 years, is the Whole time Director of the Company.
3. Mr. Shashikant Rayappa Shanbhag, aged 56 years, is the Whole time Director of the Company.
4. Mr. Sudhir Dattaram Patil, aged 55 years, is the Non-Executive and Non-Independent Director of the Company.

Galaxy IPO Lot Size

The Galaxy IPO lot size is 20 shares. A retail-individual investor can apply for up to 29 lots (580 shares or ₹197,200).

Application Lots Shares Amount
Retail (Min) 1 20 ₹6,800
Retail (Max) 29 580 ₹197,200

Galaxy Surfactants IPO Grading / IPO Rating

CRISIL has assigned an IPO Grade 4 to Galaxy Surfactants IPO. This means as per CRISIL, company has 'Above Average Fundamentals'. CRISIL assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. Click here to download the CRISIL IPO Grading Document for Galaxy Surfactants Ltd.

IPO Notices

External Link

Galaxy Surfactants IPO Withdrawn

NSE Website Alert posted on 18th May 2011

Book Running Lead Manager to the issue has informed the Exchange that the Book Building issue of GALAXY SURFACTANTS LIMITED has been withdrawn.

Galaxy IPO Subscription Status (Bidding Detail)

The Galaxy IPO is subscribed 0.30 times on May 18, 2011 5:00:00 PM. The public issue subscribed 0.11 times in the retail category, 0.59 times in the QIB category, and 0.04 times in the NII category. Check Day by Day Subscription Details (Live Status)

CategorySubscription (times)

Galaxy IPO Prospectus

Galaxy IPO Rating

Rating:Rated 4.1 stars
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Company Contact Information

Galaxy Surfactants Ltd
C-49/2 TTC Industrial Area,
Navi Mumbai - 400703, Maharashtra, India
Phone: 91-22-65134444/27616666

Galaxy IPO Registrar

Link Intime India Private Ltd

Phone: +91-22-4918 6270

Galaxy IPO Review

Galaxy IPO Recommendation Summary

Review By Subscribe Neutral Avoid
Brokers 4 0 1
Members 0 0 0

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IPO Broker Recommendations

Galaxy IPO FAQs

Galaxy IPO is a main-board IPO of 5,930,000 equity shares of the face value of ₹10 aggregating up to ₹0.00 Crores. The issue is priced at ₹325 to ₹340 per share. The minimum order quantity is 20 Shares.

The IPO opens on May 13, 2011, and closes on May 19, 2011.

Link Intime India Private Ltd is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.

The Galaxy IPO opens on May 13, 2011 and closes on May 19, 2011.

Galaxy IPO lot size is 20 Shares and the minimum order quantity is .

You can apply in Galaxy IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don't offer banking services. Read more detail about apply IPO online through Zerodha, Upstox, 5Paisa, Edelweiss, ICICI Bank, HDFC Bank and SBI Bank.

The finalization of Basis of Allotment for Galaxy IPO will be done on [.], and the allotted shares will be credited to your demat account by [.]. Check the Galaxy IPO allotment status.

The Galaxy IPO listing date is not yet announced. The tentative date of Galaxy IPO listing is [.].
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Galaxy IPO Message Board

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145. Ashish |   Link |May 22, 2011 12:32:26 PM
HI i have applied for Galaxy Surfactants Ipo, Can any one tell me when i will get my money back as the company has with drals the public offer.
144. sattipandu kancharla |   Link |May 20, 2011 11:54:10 AM
i am already told for galaxy .dont ask this issue and dont apply this issue.
143. bangalore king |   Link |May 19, 2011 10:37:21 PM
Top Contributor Top Contributor (400+ Posts)
This thing should have happened long ago to stop this from happening

Suspected dummy IPO subscriptions under Sebi probe

Vaswani Industries listing halted; all this year’s listings and most of last year’s trade below issue price.

The Securities and Exchange Board of India (Sebi) has halted the listing of Vaswani Industries and launched investigations into the issue. Around 3,000 retail applicants withdrew their applications and several others were disqualified due to stop-payment of cheques.

Yesterday, the IPO of speciality chemical manufacturer Galaxy Surfactants was withdrawn by its promoters due to poor investor response. At a price band of Rs 325-340, the company was planning to mobilise about Rs 200 crore through the offering.

Sources say Sebi’s concerns emerge from fears that a majority of the applicants could be dummy investors, acting on behalf of a few big operators. In the recent past, the market regulator had initiated probes in the dealings of several initial public offerings (IPOs), as all the new listings of the current financial year and 70 per cent of those in 2010-11 are trading below their issue price.

"Most small IPOs trading below their issue price should not be looked at. Subscriptions in these IPOs have been suspicious. Genuine retail investors have actually stayed away from IPOs," said Prithvi Heldia of Prime Database, which tracks the primary market closely.

Experts believe dummy retail investors are still being used to create artificial demand for small IPOs. Sources said Gujarat-based operators ‘Barter’ and ‘Rangeela’ and Mumbai's ‘NS’ are known for IPO manipulation and have been under the Sebi scanner. They are said to strike a pre-IPO deal with promoters and put in large dummy subscriptions. Once the stock is listed, they exit in large chunks by selling shares above their cost of purchase.

"The situation could be similar to the IPO scam involving Rupalben Panchal, who operated multiple demat accounts and put several applications," said an exchange official.

These operators have come under the Sebi scanner after an Intelligence Bureau report mentioned their names.

In some small IPOs, subscription was put in only by a few retail and high net worth investors, whereas institutions stayed away.

Vaswani Industries, which planned to raise Rs 50 crore through its IPO, offered 10 million shares at a price band of Rs 45-49, and the issue was subscribed over four times. The merchant banker, Ashika Capital, fixed the price at Rs 49. After many investors withdrew their applications, Vaswani Industries allotted 75 per cent of the number of shares that retail investors had bid for against an expectation of 25 per cent when the bidding had closed.
142. bangalore king |   Link |May 19, 2011 8:52:43 PM
Top Contributor Top Contributor (400+ Posts)
Vaswani Industries Ltd's Initial Public Offering (IPO) was closed for subscription on 3rd May and share allotment details were published on 12th May. After the allotment was published on the registrar's website, retail investors were upset to see that they had received many more shares than what had been allocated. Even though the issue was subscribed 6.83 times in the retail category, investors got share allotment of equivalent to 1.28 times over-subscription in this category. SEBI (the Securities and Exchange Board of India) started its investigation after getting complaints from high net-worth individuals and retail investors. The market regulator has collected bidding data from the registrar to the issue (Link Intime) and has written to the two exchanges-NSE (the National Stock Exchange) and BSE-(the Bombay Stock Exchange) to stop listing of the stock till it completes the investigations into the bidding and the subsequent withdrawal of applications. How did this happen?

Take a look at another example. Galaxy Surfactants recently withdrew its IPO. The issue was to close on 19th May-but was pulled out abruptly. A statement on the NSE site said: "Book running lead manager to the issue has informed the exchange that the book building issue of Galaxy Surfactants has been withdrawn." At a price band of Rs 325-Rs340, the company was planning to mobilise about Rs200 crore through the offering. At the Thursday close of bidding, the issue was subscribed just 30%. Again, what happened?

The answer to both is sudden low interest of IPO market manipulators-given that the equity market is in complete doldrums.

These two examples show how the IPO market manipulation falls apart when investors and manipulators both develop cold feet.

IPOs are a game played by companies (hard at work to dress up the company financials and present a rosy picture), investment bankers (managing disclosures in prospectuses) and market special IPO manipulators who come in to blackmail or rescue a failed issue.

The game starts when greedy promoters shop for investment bankers who would promise the highest IPO price for their shares. Invariably, the issues get a poor retail response and in the first couple of days after an IPO opens for subscription, panic sets in. The investment bankers then helpfully bring in financiers who demand a 30% to 50% discount to put in applications. These financiers also have the capability of making 4,000 to 5,000 retail applications if required. Yes, the multiple applications scam is thriving, but has only got more sophisticated to evade detection. Our sources say that investment bankers are an integral part of this racket.

Another aspect of the scam is pure extortion. Here, some unscrupulous financiers prey on IPOs that get a poor response on opening. They then put in large applications to corner the retail quota. On issue-closing day, they call the company and its investment bankers and threaten to withdraw their application unless they are given a cash payoff. With little time to rustle up genuine applications, a couple of promoters have succumbed to the blackmail.

In either case, with a block of thinly-traded stock in their control, the price manipulators/financiers get to work once the stock gets listed. They rig the shares up and down, liquidate their entire stake and walk out. What about the exchange and the market regulator? They are in their ivory towers and have not a clue about any of this. They are not interested either.

With the market in doldrums, the manipulators and financiers have withdrawn from the game. That's why these two issues have failed miserably. These two issues were as bad (or good) as the ones that have come to the market over the past few years.
141. Raghubhai |   Link |May 19, 2011 11:31:37 AM
Great action taken by investors to teach lesson to this greedy Galaxy. This is also poor on rating agency that they give any rating without real research. Kudos to all retail investors who participate on this action by not subscribing on this bad IPO.
140. skv tata |   Link |May 19, 2011 11:25:48 AM
IPO Guru IPO Guru (1000+ Posts, 400+ Likes)
Fpo of sail maybe postponed for further 5-6 months.Due to adverse market condition.
139. IPO/STOCK GURO |   Link |May 19, 2011 11:21:05 AM
Rating agencies in india totaly fraud and 420 , thay are misguiding indian retailes , SEBI please ban rating agencies.
138. ria shroff |   Link |May 19, 2011 11:10:12 AM
sebi should now allot all these shares to the family and relatives of lead managers ,merchant bankers and promoters and all rating agency people FORCIBLY THEN ONLY THEY WILL REALISE PAIN AND AGONY OF RETIAL INVESTOR
137. PcJain |   Link |May 19, 2011 11:01:43 AM
Dear Friends

As Galaxy Issue is withdrawn for poor response why we retail investor should fallow QIB. There are lot of boarder who suggest their opinion on IPO If we fallow the same even QIB & HNI will fallow us.
Some small investor apply saying blindly black horse ETC, If any such IPO small investor only make small profit from it, But if such IPO fails small investor make huge losses, Its better to avoid such IPO.
136. CHD |   Link |May 19, 2011 10:59:14 AM
IPO Guru IPO Guru (1100+ Posts, 500+ Likes)
These so-called Rating Agencies are also in the making of easy money.

Pay them good hefty fees and keep them in good humour by entertaining them lavishly and you can secure the rating of your choice.
In India every thing & everybody is purchaseable , man....!
135. Tiger n Tiger |   Link |May 19, 2011 10:11:07 AM
Good lesson for lead manager. For next atleast two or three months there will not be any overprised IPO. SAIL and ONGC have corrected will do well for IPO invesotrs. No supply would also help secondary market in medium term.

Your opinion for following point -

There must be a provision for buy back of share with in one month from Lead manager. A lead manager must be responsible for right IPO valuation.

There is a need to develop a system which can protect the interest of small investor.

134. KK Natarajan |   Link |May 19, 2011 8:08:27 AM
IPO Mentor IPO Mentor (500+ Posts)
If the withdrawal of Galaxy is a silent and passive lesson taught by the investors, if Vaswani is canceled, it would be an active lesson taught. Let us hope this happens.
133. vas nat |   Link |May 19, 2011 12:37:38 AM
Top Contributor Top Contributor (200+ Posts)
BRLMs of such high priced issues should atleast be suspended for sometime. Only then the BRLMs will think of the interests of the investors also.
132. Sreedhar |   Link |May 19, 2011 12:00:36 AM
IPO Mentor IPO Mentor (900+ Posts)
lost an oppurtinity to make some good profit by shorting at listing.Just kidding.Looks like investor has waken up finally.Congrats to all for throwing this issue into dustbin.
131. seenuipo |   Link |May 18, 2011 11:35:44 PM
Top Contributor Top Contributor (200+ Posts)
After the withdrawl of Galaxy it seems to be IPO market has bottomed out for pricing the issues.
Expect at couple of issues to reasonably priced further.
130. papu bhai |   Link |May 18, 2011 10:31:40 PM
investser bach gaya. mlr bhi jhuta ha.
129. Chem cho |   Link |May 18, 2011 10:03:43 PM
IPO Guru IPO Guru (2500+ Posts, 2700+ Likes)
thanks to all for withdrawal of issue by book builing manager who haved priced the ipo very high the main culprit is not the issue but motilal oswal and centrum capital who had priced at high rate of galaxy ipo
read my quotes again of 114 again for your reference again

In an interview in tv channel new sebi cheif was discusing with the new ipos, he has said an important point that track record of managers to the issues should be one point in appling the ipo ie good managers to the issue , price the ipo attrative so that some money is left on table
this ipo is over priced most of the analist say avoid the issue
an small issue of 200 croes should suscribe 20 to 30 times in QIB then only think of appling

128. Gane |   Link |May 18, 2011 9:56:58 PM
Top Contributor Top Contributor (400+ Posts)
Why they dont want to get the price down to reality? Instead they are very rude to withdraw the issue. I think they are very much adament to sell their shares in this high price. We have to be extremely careful with such BRLM in future.

Very strange.
127. Fools brooker |   Link |May 18, 2011 9:55:13 PM
yes bad luck for the smart book bulilding managers now we have to track the book bulilding manger next time in ipo be careful with this book buling manager for high price of issue like galaxy

. Centrum Capital Limited
2. Motilal Oswal Investments Advisors Pvt Ltd
126. Pintu Sujangarh |   Link |May 18, 2011 9:37:15 PM
Attn Members: Book Running Lead Manager to the issue has informed the Exchange that the Book Building issue of GALAXY SURFACTANTS LIMITED has been withdrawn