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Strategies & Market Trends : India Coffee House

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To: Mohan Marette who wrote (5179)	7/18/1999 10:01:00 PM
From: Mohan Marette	Read Replies (1) of 12475

Primary Picking A winner all the way-Times Bank timesbankindia.com BANKING issues had not been getting good response from investors for a long time now. But last week, the initial public offering (IPO) of Times Bank proved an exception. It received an overwhelming response from retail investors. The issue was oversubscribed 6 times. Most of the applicants were retail investors. Previous issues like that of City Union Bank, UTI Bank and IDBI bank were subscribed upto a maximum extent of 2.5 times. A variety of factors contributed to its success. First and foremost was the pricing. Unlike previous issues from banks (HDFC Bank being an exception), this was a par issue, though the full money was to be paid at the time of application. The second factor was the right timing of the issue. Previously when bank issues had hit the markets, the stockmarkets were passing through a bad patch. Investors confidence was at its lowest. Times bank approached the markets when sentiments had improved and markets were zooming to new height every day. This has infused some amount of faith into investors that their investments will bring in adequate returns. Due to the absence of this feel-good factor, investments in banking stocks had proved disastrous. Another IPO -Polaris Software polaris.co.in POLARIS Software has decided to come out with its IPO. It comes at a premium of Rs 200 premium. It is slated to open on August 4 and close on August 10. This is said to be one of the biggest issues for now. Polaris is aiming to raise Rs 91.68 crore for setting up development centres in the US and Europe. It has other expansion plans too. With a view to keep 25 per cent floating stock in the market, the promoters alongwith Citicorp will dilute their stakes. Their stakes will come down to 46.97 per cent and 11.29 per cent respectively. It may recalled that Citicorp had picked up the Polaris share at Rs 120. Polaris has clocked some impressive performances. It had ended '98-99 with a 93 per cent rise in income to Rs 82.40 crore, up from Rs 42.60 crore. Net profit had zoomed from Rs 5.40 crore to Rs 15.30 crore. Preference share issue -Nagarjua Fertilisers THE board of directors of Nagarjuna Fertilisers has decided on a Rs 200-crore preference share issue. This would be done through the private placement route. It may be recalled that in May '98 shareholders had allowed the core promoters to increase their stake to 42 per cent from the present 21 per cent through the preference issue route. (Source:ET online)

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