MCX biggest gainer on debut among IPOs in 2012

Reflecting the overall sluggishness market conditions, initial share sales have not been so successful this year and many entities shelved their IPO plans owning to poor investor response

New Delhi: With its shares skyrocketing 26% on debut trade, country's largest commodity bourse Multi-Commodity Exchange (MCX) remains the most successful initial public offering (IPO) so far this year amid turbulent market conditions, reports PTI.

Out of the five companies that entered the stock market in 2012, just two -- MCX and education services firm MT Educare -- managed to close with gains on the first day of trading.

The rest -- realty company NBCC, jewellery retailer Tribhovandas Bhimji Zaveri and greeting cards maker Olympics Card -- ended the debut trade at a discount compared to their issue prices.

Meanwhile, Speciality Restaurants got listed on the BSE on Wednesday at Rs153, a premium of over 2% over its issue price of Rs150. Within minutes of listing, its scrip gathered momentum and touched an early high of Rs160.65, up 7.1% from its issue price.

Reflecting the overall sluggishness market conditions, initial share sales have not been so successful this year and many entities shelved their IPO plans owning to poor investor response.

Apart from market situation, the performance of an IPO on debut is also much dependent on credit ratings as well as the fundamentals of a particular company, according to market experts.

Listed on 9th March, shares of MCX opened at Rs1,387 on the BSE -- a premium of 34% compared to its issue price of Rs1,032. Even though, the scrip lost its initial momentum, it managed to close with about 26% gain at Rs1,297.05. On the first day, it even touched the high of Rs1,420.

Interestingly, MCX shares are trading way below their issue price levels and closed at Rs893 yesterday on the BSE.

"The commodity bourse clocked a gain of 26% on debut day, mainly due to higher ranking given by credit rating agencies and the company's sound fundamentals," Wellindia Vice President Vivek Negi said.

MT Educare clocked a gain of 13%, with the shares ending the debut day at Rs90.35 on the BSE. The issue price of the scrip, which got listed in April, was Rs80.

The three other stock market debuts this year -- NBCC, Tribhovandas Bhimji Zaveri and Olympic Cards -- tumbled in the range of 5% to 8% on the first trading day.

Notwithstanding high expectations, shares of state-run National Buildings Construction Corporation (NBCC) lost 8.44% to close at Rs97.05. The company, which got listed last month, had the issue price of Rs106.

Making stock market entry earlier this month, shares of Tribhovandas Bhimji Zaveri, dropped 7.33% to end the day at Rs111.20 on the BSE. The scrip made the debut with an issue price of Rs120.


Aurobindo Pharma makes Govindrajan new MD as Q4 net profit dips 14%

Aurobindo Pharma reported a marginal increase in total revenues due to sharp drop in income from contract manufacturing and US sales

Hyderabad: Aurobindo Pharma on Wednesday reported 13.6% fall in net profit at Rs108 crore for the fourth quarter ended March 2012 due to sharp drop in income from contract manufacturing and US sales, reports PTI.

During the fourth quarter of 2010-11, it had reported net profit of Rs 125 crore, Aurobindo Pharma said in a statement.

Aurobindo's income grew at 2.5% to Rs1,170 crore in the January-March quarter 2011-12, from Rs1,142 crore in the previous fiscal.

Dossier income or sales from contract manufacturing in Q4 dropped 89% to Rs3 crore from Rs27 crore in the same period last year.

Aurobindo Pharma CEO N Govindarajan said the year has been challenging and they are trying to improve the situation by new product launches.

"We have concluded a challenging year highlighted by full impact of the USFDA alert on our Unit 6 Cephalosporin manufacturing facility, high cost of materials, inflation and notional loss on restatement of foreign currency borrowings," Govindarajan said.

"We are looking at improving trends in our business and expect improving financials through planned launches of new products and increasing market shares of existing commercialised basket supported by our growing business of high value APIs on the regulated market thereby augmenting the capacities," he added.

The company said, meanwhile, that K Nithyananda Reddy will relinquish his responsibilities as Managing Director of Aurobindo and has been appointed as Wholetime Director designated as Vice Chairman from 1st June. Besides, Govindarajan has been appointed as a Director and Managing Director.

The pharma major suffered a net loss of Rs123.5 crore for the financial year 2011-12, against net profit of Rs563 crore in FY 11.

Consolidated net sales for the whole year grew 10.7% to Rs4,568 crore from Rs4,126 crore in FY11.

The profitability during 2011-12 has been impacted mainly due to sharp decline in dossier income by Rs195.8 crore which is non-recurring and subject to periodic variability, Aurobindo said in a statement.

The company also lost revenues to the extent of $36 million (about Rs201 crore) due the impact of USFDA alert on Unit VI in Hyderabad.


Bombay HC tells Centre to file affidavit on PIL against petrol hike

The Bombay High Court asked Centre, Petroleum Ministry and Finance Ministry, IOC, HPCL and BPCL to file an affidavit explaining their stand on increasing the price of petrol by 20th June

Mumbai: The Bombay High Court on Wednesday directed Centre, Petroleum Ministry and Finance Ministry to file an affidavit by 20th June in response to a petition which claimed that the recent petrol price hike was "illegal" as it lacked Parliament's approval and violated the Constitution, reports PTI.

A bench of Justices RY Ganoo and NM Jamdar ordered the respondents to file an affidavit explaining their stand on increasing the price of petrol.

Apart from the Central ministries, other respondents include oil marketing companies, Indian Oil Corp, Hindustan Petroleum Corp Ltd and Bharat Petroleum Corp Ltd.

The PIL, filed by Rajendra Phanse, General Secretary of 'Dharmarajya Paksha', submitted that the petrol prices were hiked "abruptly" by Rs7.50 on 23rd May at the stroke of midnight after the conclusion of budget session of Parliament.

The petitioner contended that the raise in petrol prices was "totally illegal" as it does not have approval of the Parliament. It was also ultra-vires of the Constitution.

Terming as "undemocratic" the hike since it was announced after the Budget session was over, the petitioner argued that in the past, the decisions like raising the rates of postal and telephone services used to be taken during the budget session.

The petitioner further said that the hike was against the principles of natural justice, as it is bound to affect the entire population of the country.

Citing the lack of uniformity in the prices of petrol, the petitioner said that in Thane (Maharashtra), the price per litre is Rs81.70, while it is as low as Rs58.06 in Port Blair, Rs81.75 per litre in Bengaluru and Rs73.18 in Delhi.

This showed that the prices of petrol change from city to city within the country, which is nothing but a geographical discrimination in contravention of Article 14 of the Constitution, he said.


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