New Year bonanza! 3 big ticket PSU share sale in Jan-Mar

New Delhi: The public offerings of three blue-chip navratna companies - Steel Authority of India (SAIL), Indian Oil Corporation (IOC) and Oil and Natural Gas Corporation (ONGC) - will hit Dalal Street in the first quarter of next year, reports PTI quoting a top government official.

"During the first quarter (January-March) of the next calendar year, we will see the public offerings of SAIL, IOC and ONGC," disinvestment secretary Sumit Bose told reporters here during the roadshow of Coal India IPO.

When asked whether these big public issues could flood the primary market, Mr Bose said we can adjust three issues in three months that means each month (January, February and March) there will be one big ticket issue.

"There is enormous appetite in the market," the secretary added.

Coal India Ltd's Rs15,000-crore mega initial public offering (IPO) that closes on 21st October, will help the Centre narrow its fiscal target.

SAIL first phase follow-on public offer (FPO) is estimated to garner about Rs8,000 crore.

SAIL chairman CS Verma, yesterday, said that the first tranche of the company's 20% share sale programme could be launched in mid December and if that deadline is missed the same will happen in January-February 2011.

The government plans to sell 5% stake in ONGC and 10% in IOC to raise about Rs21,000 crore this fiscal.

The government plans to launch its disinvestment plan in a big way in the last quarter of current financial year, as it is chasing the target of raising Rs40,000 crore by March 2011 through offloading its stakes in state-owned firms.

"We are hopeful of achieving that target of (Rs40,000 crore)", Mr Bose said.

"The entire process is not limited to managing only fiscal deficit but goes to corporate governance and widespread ownership by public," he said.

Mr Bose, however, did not divulge the break-up figures of these three follow-on public offerings.

The details of FPO of petroleum major Indian Oil will be decided shortly, he said adding the firm is likely to invite applications for the appointment of merchant bankers in the next couple of days.

However, the government, Mr Bose added, will not go ahead with the public issues of the trading company MMTC and steel producer RINL in the current fiscal.

"We will look at (RINL) it in the next fiscal," he said.

On amount and time of the IOC public issue, he said the modalities would be decided later.

Similarly, the modalities for disinvestment of oil giant ONGC would be finalised in the coming days, he added.


Coal India's Rs 15,000-cr mega IPO subscribed 1.57% on Day 2

New Delhi: Coal India Ltd's (CIL) Rs15,000-crore mega initial public offer, the country's largest so far, got demands for 1.57 times of shares on offer hours before closure of the second day of the issue today.

The issue attracted bids for 99.11 crore shares against 63.1 crore equities on offer, as per the data available till 4:00 pm on the National Stock Exchange (NSE).

The issue is priced in the range of Rs225 and Rs245 a share. The government is divesting 10% of its stake in CIL - the world's largest coal producer.

At the upper end of price range, Coal India public issue is worth Rs15,475 crore and at the lower end it would fetch about Rs14,211.81 crore.

The offer closes on 21st October. For institutional buyers the IPO will close on 20th October. The issue price will be decided by a Group of Ministers (GoM) on 23rd October.

Primary market analysts believe participation from retail investors will pick up in the last two days, as they usually follow the trend of institutional investors. Besides, there is one additional exclusive day reserved for them (21st October).

The navratna company is expected to list on the domestic bourses by 4th November.

Anil Dhirubhai Ambani Group (ADAG) company Reliance Power's public issue, which mopped up Rs11,500 crore in January 2008, was India's biggest IPO before the ongoing CIL public offer.

CIL is the largest coal producer and coal reserve holder in the world, contributing 82% of total coal production in India.

Citigroup Global Markets India, Deutsche Equities India, DSP Merrill Lynch, Enam Securities, Kotak Mahindra Capital and Morgan Stanley India are book running lead managers to the CIL IPO.


India Inc's outbound M&A deals at $21 bn during Apr-Sep: Assocham

New Delhi: Led by Bharti Airtel, India Inc's outbound mergers and acquisition (M&A) deals tally rose to $20.76 billion in the first six months of the current fiscal from a meagre $527.8 million in the previous year, reports PTI quoting a study.

"The rise in outbound deals provides clear evidence that the Indian industry is consolidating, and at the same time aggressively working on global expansion," the study by the Associated Chambers of Commerce and Industry (Assocham) said.

Total 59 outbound M&As took place during April-September 2010-11 against 27 in the same period of the last financial year.

The study said the total number of M&A deals (outbound, inbound and domestic) increased from 86 in first half of 2009 to 141 during April-September 2010. Of the 141 M&A, 68 were domestic deals and 14 inbound.

In value terms, the overall M&A deals rose 345.16% to $52.6 billion during April-September 2010 from $11.8 billion in the year-ago period.

The major mergers and acquisitions occurred in telecom, metal and mining and energy sector, the chamber said.

Among the major outbound deals during the period India's telecom major Bharti Airtel completed a deal to buy Kuwait-based Zain Telecom's African business for $10.7 billion.

In metal and mining sector Adani Enterprises, India's largest importer of coal, bought coal mine assets in Queensland from Australia's coal-to-liquid company Linc Energy for $2.7 billion.


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