The MCX IPO, estimated to raise Rs663 crore, also happens to be the first public offer of 2012 in the Indian market and had got over-subscribed more than two-times by the afternoon trade on the second day of issue today
New Delhi: Top commodity exchange Multi Commodity Exchange’s (MCX) ongoing initial public offer (IPO), the first ever by an Indian bourse, might mark the revival in sentiments for the primary market after a months-long dry period, reports PTI.
The MCX IPO, estimated to raise Rs663 crore, also happens to be the first public offer of 2012 in the Indian market and had got over-subscribed more than two-times by the afternoon trade on the second day of issue today.
The offer has already attracted bids worth over Rs1,300 crore and the bidding would continue till tomorrow.
“The issue has a potential of opening up the IPO market.
The MCX offer has invoked lot of interest in the market, but whether the revival will be able to sustain or not depends on the quality of IPOs that would come in the future,” Unicon Financial Solutions CEO Gajendra Nagpal said.
The company has shown tremendous growth over the last few years and the quality of issue looks very good,” he added.
In the broader market, the BSE barometer Sensex has surged by 17% so far this year and going by the bullish sentiments looks like it is a good time to do an IPO, he said.
There is always demand for the companies with healthy financials and a good background, analysts believe.
“It marks the revival of the IPO market and it is good to see a quality and credible company in the market after a long time.
“Secondary market momentum is also helping the company’s issue and there are very good chance that the success of this IPO will spill over and result into some more initial share sales,” SMC’s Jagannadham Thunuguntla said.
Brokerage house Angel Broking said, “We believe MCX being the only major commodity exchange in India and the world’s fifth largest exchange can witness strong growth in revenue and profitability going ahead, which makes its valuation much more attractive than global peers.”
The first ever public offer by an Indian bourse also indicated towards an end to a long-running lull in the primary market, which has remained mostly weak for many months now.
At the top-end of the price band, the IPO could raise Rs663 crore, out of which close to Rs100 crore have already been raised through sale of about 9.27 lakh shares to 12 anchor investors earlier this week.
Market experts also said that investor response to MCX IPO may decide path for other IPOs, as well.
For the markets in general, the MCX IPO is perhaps the first big issue since Coal India and MOIL in the recent times.
Lot of companies had pulled out IPOs last year after the benchmark Sensex plunged by 25%.
NPAsource.com has done the study based on 6,359 units valued at Rs9,897 crore for the first 10 months of FY12
Tamil Nadu, Uttar Pradesh, Gujarat and Andhra Pradesh accounted for the highest value of non-performing asset (NPA) properties in 2011-12 according to a study by NPAsource.com, a portal started by Atishya Technologies Pvt Ltd.
Out of a total of 6,359 units valued at Rs9,897 crore across India in 10 months of FY12, Tamil Nadu has the largest amount of NPA properties valued at Rs1,261 crore spread across 663 units. Uttar Pradesh came second with 533 units with a value of Rs1,025 crore, followed by Gujarat with 349 properties worth Rs1,023 crore and Andhra Pradesh (AP) with 1,226 units valued at Rs1,004 crore.
NPAsource.com study also revealed that out of the different types of properties given as collateral against loans, commercial and industrial properties worth Rs5,633 crore spread across 2,925 units accounted for more than 50% of the total NPA properties. Land worth Rs2,793 crore spread across 1,146 land and 2,165 residential units valued at Rs838 crore were the other major categories in NPA properties.
Elaborating on the study done by NPAsource.com, Devendra Jain, CMD of Atishya Group, said, “While Mumbai is known to be the biggest centre for disbursement of loans to corporates, our study has found that Tamil Nadu and Uttar Pradesh have the largest amount of NPA properties by value in the first 10 months of 2011-12. Maharashtra comes at number five in terms of NPA properties by value. Our portal’s aim to bridge the gap between the buyers and the sellers of NPAs. It is designed to facilitate the best deals for disposal of NPAs by updating all the details of available assets in the Indian market.”
Mr Jain further added that Atishya Technologies is investing a total of Rs10 crore in its new portal, NPAsource.com, which manages and resolves NPAs in India (later globally) so as to benefit lenders, borrowers as well as investors.
Total NPAs in India as of March 31, 2011 were more than Rs90,000 crore as per the statistics released by the Reserve Bank of India (RBI) which does not include co-operative banks, SFCs, FIs & NBFCs, whereas globally this figure would run into trillions of dollars. World over, the scenario for NPAs is bleak as it faces multiple pitfalls: database are scattered and inadequate, they are not updated periodically, there is inadequate realisation from intrinsic worth of NPAs, lack of visibility and transparency for all stakeholders as well as no access facility of data on NPA for use by prospective investors or buyers.
The distribution of NPAs in the system follows the 80:20 rule whereby 20% by number of borrowers constitute for 80% of value of impaired assets and vice versa. The large impaired assets comprise industrial assets having good restructuring potential. “Our experience shows in value terms that more than 60% of the impaired assets are capable to be restructured or sold as going concerns. The small assets, however, have to be put through a recovery process, where the collateral based funding practice followed by the banking system offers a fair recovery potential” Mr Jain, added.
“Through our offshore office, at Dubai, which will be operational by March 2012, we plan to tie-up with foreign investors globally who would be interested in acquiring impaired assets in India for themselves or for their clients world-wide. In India, we are getting application for registrations from various interested parties like chartered accountants, consultants, advocates and property dealers apart from companies of all sizes,” said Mr Jain.
Ring Plus Aqua deal was funded through internal accruals and facilitated by Equirus Capital
Ring Plus Aqua, the auto components business arm of Raymond Ltd has announced the acquisition of Trinity India Ltd, a Pune-based forged component manufacturer. This marks Ring Plus Aqua’s entry into the forging industry, adding to its current portfolio of auto components which includes flywheel ring gears, flexplate assemblies, integral shaft bearings and sheet metal pulleys.
Ring Plus Aqua acquired majority stake in Trinity India with the signing of the share transfer agreement with the promoters of Trinity in Pune today. The deal was funded through internal accruals and facilitated by Equirus Capital.
Harshal Jayavant, president–engineering business, Raymond said, “With this acquisition, we are looking at an added revenue of Rs80 crore during the current financial year.”
The Indian Forging Industry is estimated at about $2.9 billion, while the global industry is valued at over $115 billion. Mr Jayavant added, “Our expansion into forgings also provides us an opportunity to look at the fast developing non-auto sectors like power, aviation, defence and nuclear equipment.”
Trinity India has four manufacturing locations with an installed forging capacity of 12500 tons. It employs about 400 people.
Raymond’s shares closed at Rs371.05 per share on the Bombay Stock Exchange, 1.5% up from the previous close.