The company has extended the subscription period of its offering till 5 May 2010 and has reduced the price band due to poor response from investors
Tara Health Foods Ltd, which is engaged in producing animal foods and edible oils, has extended the subscription period for its initial public offering (IPO) till 5 May 2010 from the earlier closing day of 30 April 2010 and has revised the price band from Rs180-Rs190 to Rs175-Rs185 due to poor response from investors.
Atherstone Capital Markets Ltd, the lead book-running manager of the issue, said that the subscription period has been extended on the grounds of some ‘technical reasons.’
Overall, the issue has been subscribed 0.03 times so far. Qualified Institutional Buyers (QIBs) have completely avoided the IPO which saw zero bids out of the 35 lakh shares reserved under the category. The Non Institutional Investors’ (NIIs) quota was subscribed 0.02 times while retail investors subscribed just 0.07 times on the closing day of the IPO.
The issue was priced at a price band of Rs180-Rs190 earlier. Tara Foods posted a net profit of Rs16.99 crore for the year ended March 2009. Rating agency Fitch has assigned an ‘IPO Grade 2’ to the issue.
Moneylife had earlier reported on how Tara Foods is not a good investment choice for investors and how QIBs and NIIs have been avoiding companies not having good fundamentals. Read here: (http://www.moneylife.in/article/8/5069.html and here http://www.moneylife.in/article/81/5118.html).
Market watchdog Securities and Exchange Board of India (SEBI) officials did not respond to Moneylife’s query on how such fundamentally poor companies were being given a go-ahead by the regulator.
The company is planning to mop up Rs175 crore-Rs185 crore by issuing 1 crore shares to the public including an anchor investor quota of 15 lakh shares.
The Bill seeks to amend the Gratuity Act to enhance the amount of gratuity payable to an employee from Rs3.5 lakh to Rs10 lakh
A Bill to raise the ceiling of gratuity for employees to Rs10 lakh from Rs3.5 lakh was passed by the Lok Sabha without discussion today, reports PTI.
The House, which witnessed an Opposition furore over the “2G spectrum scam” and reports about alleged involvement of a Central minister in an illegal arms deal, also adopted the Employees’ State Insurance (Amendment) Bill 2009 without any debate.
The Payment of Gratuity (Amendment) Bill 2010, introduced by minister of state for labour Harish Rawat last month, was passed by a voice vote.
The Bill seeks to amend the Gratuity Act to enhance the amount of gratuity payable to an employee from Rs3.5 lakh to Rs10 lakh.
The legislation was brought following demands from trade unions and others to remove the ceiling or increase the maximum payable amount, which was fixed in 1997.
The House also passed the Employees’ State Insurance (Amendment) Bill 2009 to provide for medical care to unorganised sector workers, especially those below the poverty line.
The Bill proposes that the Employees’ State Insurance Corporation (ESIC) should participate in the Rashtriya Swasthya Bima Yojana to cover BPL workers in the unorganised sector.
The statement of objects and reasons of the Bill said that it also proposed to increase the age limit of dependents from 18 to 21 years and provide for claims for accidents occurring at work or while going to work.
The legislation was brought to the House in 2008 to replace an ordinance and was then sent to the concerned Parliamentary standing committee.
The government has relaxed the norms for mills to sell entire non-levy sugar for May, on a monthly basis from the fortnightly basis earlier
Sugar prices rose at the Vashi wholesale market here today on the back of heavy buying by stockists amid restricted supplies from mills, reports PTI.
Meanwhile, the government relaxed the norms for the mills to sell entire non-levy sugar for May, on a monthly basis from the fortnightly basis earlier.
Medium sugar quality (M-30) strengthened by Rs 60/70 per quintal to Rs2,950/3,030 from last Friday's closing level of Rs2,890/2,960.
Small sugar quality (S-30) also firmed up by Rs50/65 per quintal to Rs2,895/2,950 as against Rs2,830/2,900 previously.
Following are today’s closing rates per quintal with previous rates in brackets.
Small sugar (S-30) quality Rs2,895/2,950 (Rs2,830/2,900) and medium sugar (M-30) quality Rs2,950/3,030 (Rs2,890/2,960).