Galaxy Surfactants withdraws IPO a day before its closing

Galaxy Surfactants IPO had received bids for 14.8 lakh shares till yesterday, against 50.4 lakh equities on offer

Hit by a poor response to its aggressively priced initial public offer, speciality chemicals manufacturer Galaxy Surfactants has withdrawn the IPO from the market, a day before it was supposed to close today.

The issue, which opened for subscription on 13th May, witnessed a tepid response, with the overall offer being subscribed just 0.30 times. The offer had received bids for 14.8 lakh shares till yesterday, against 50.4 lakh equities on offer, as per data available on the NSE till 1700 hours.

The qualified institutional buyers (QIB) portion was subscribed 0.59 times, while the non-institutional investors portion was subscribed a mere 0.04 times and the retail investors segment 0.11 times, the data revealed.

“Whenever an IPO is withdrawn, the first reason that comes to our mind is the poor response toward the offer. Lukewarm response has plagued the company’s book-building process. Also, the overall market condition has been sluggish, which also dampened its prospects,” SMC Capitals Strategist and Head of Research Jagannadham Thunuguntla said.

He further said this is the first public offer to be withdrawn this fiscal. Analysts said the issue was also hit because of the aggressive pricing. The company had entered the capital market with its IPO of 59.3 lakh equity shares with a price band of Rs325-Rs340 a share.

It intended to utilise the issue proceeds partly towards funding the capital expenditure of its step-down subsidiary, Galaxy Chemicals (Egypt) SAE, through investment in its subsidiary, Galaxy Holdings Mauritius Limited (GHML).

Motilal Oswal Investment Advisors Private and Centrum Capital were the book running lead managers to the issue.

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SEBI defers listing of Vaswani Industries

SEBI has withheld the listing of Vaswani Industries IPO after it received complaints regarding irregularities in subscription

Capital markets regulator SEBI has withheld the listing of sponge iron producer Vaswani Industries initial public offer (IPO) after it received complaints regarding irregularities in subscription.

Following closure of the public issue of Vaswani Industries on 3rd May, SEBI received complaints from investors regarding irregularities in the subscriptions, the regulator said in a press release issued late on Wednesday.

“Based on the data received from the exchanges or registrars regarding the subscriptions or withdrawals and preliminary inquiries into the matter, SEBI has advised the stock exchanges to withhold the listing of securities until further instructions,” it said.

The regulator said inquiries into the matter are in progress. Based on the findings, appropriate action would be taken, it added.

The IPO of Vaswani Industries, which opened on 29 April 2011, was subscribed by four times on the final day of the issue. The company sold one crore shares at a price band of Rs45-Rs49 each. It was proposed that the proceeds of the IPO would be utilised for pre-payment of term loans, coupled with working capital requirements, among others.

Vaswani Industries is engaged in the integrated business of manufacturing sponge iron, steel billets and ingots and power generation.

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COMMENTS

IPOSELLER

6 years ago

For PFC FPO allotment Status Link Se on below link.... http://iposeller.blogspot.com/

Insurance portability: Brainstorming with industry stalwarts

IRDA has permitted health insurance portability from July 2011. There are several concerns about how it will work and whether it will really work. Moneylife Foundation took the lead to initiate a public debate on this important regulatory change and proposes to send a Position Paper to IRDA with consumer concerns and suggestions to ensure that health insurance portability guidelines are comprehensive and implementable. A packed house—over 150 people—attended the seminar at Rachana Sansad auditorium in Prabhadevi, Mumbai. The panellists talked about the issues related to portability and answered questions from the audience in a highly interactive session. The consensus of the panel was that we need to create a centralised insurance databank forthwith; while portability is a good step forward, IRDA needs to clarify a host of issues if portability has to succeed. The panellists also agreed that the way forward is not standardisation of insurance products, but innovation that can make portability attractive for customers.

Based on the feedback received at the seminar, Moneylife has sent a questionnaire to IRDA to get clarifications about the initiative to create a centralised insurance databank, concerns about getting medical history from some insurers within seven days due to lack of electronic format and not having a centralised system for keeping individual data, possibility of charging a higher premium due to porting the policy itself, mis-selling with portability, the need to offer comparison of mediclaim policies across insurers on the IRDA website and other issues arising from portability guidelines. We had not received a response till the writing of this ‘Cover Story’.

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COMMENTS

MERUT SHAH

6 years ago

It's to good

hsrakhra

6 years ago

the cover story on health/ medical ins portability is in right direction but i wish to point out that proper attention at the point of proposal /sale and at the point of claim will reduce the possibility of porting. Inapt handling by agents and hurdles thrust by TPAs would generate porting acts The proactive role of the staff of general ins cos will help in customer retention..

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