SBI's debut bond sale oversubscribed over 17 times

New Delhi: The country's largest lender State Bank of India's (SBI) first retail bond issue of Rs1,000 crore was subscribed over 17 times on the opening day, showing enthused participation from investors, reports PTI.

The issue, which opened for subscription yesterday, will close on 25th October.

Market sources said that in the bond sale, the portion reserved for wealthy individuals (High Networth Individuals) was subscribed by over 16 times, while that reserved for retail investors was oversubscribed 6.4 times.

The offering comprises issue of bonds worth Rs500 crore, with an option to raise it further up to Rs500 crore by issuing additional bonds, with the total aggregating to Rs1,000 crore.

The bonds would offer an interest of 9.25% for 10 years and 9.5% for 15 years.

Citigroup, Kotak Mahindra Capital and SBI Capital Markets are the managers for the issue. The bonds are proposed to be listed on the National Stock Exchange of India (NSE).

The application size for retail investors in the issue is Rs5 lakh, for HNIs is Rs250 crore and for qualified institutional buyers (QIB) it is Rs250 crore.

Market sources said electronic subscriptions were not available for retail investors in the said issue.

They said that the market regulator Securities and Exchange Board of India (SEBI) has barred electronic subscription for retail investors to avoid confusion at the time of allotment. The bonds would be allotted to all categories on 'first-come-first-serve basis' based on the date of application.


L&T bags order worth Rs1,449 crore from DB Power

Mumbai: Engineering and construction major Larsen & Toubro (L&T) today said it has received an order worth Rs 1,449 crore from DB Power for the Bhaskar Group company's Chhattisgarh project, reports PTI.

L&T will execute the balance of plant (BOP) package for DB Power's 2x600MW thermal power plant in Chhattisgarh, the company said in a filing to the Bombay Stock Exchange (BSE).

The BoP is the sum of all equipment for safe operation as well as the technical coordination of all concerned parts of a power plant.

The total time period for completion of the project is 31 months, which was received following the international competitive bidding which involved also domestic bidders, it added.

The company will design, engineer, supply, erect and commission the BOP equipment and systems on an engineering, procurement and construction (EPC) basis.


Tuesday’s Market Preview: Flat-to-positive opening likely

The local market is likely to see a flat-to-positive opening today. Wall Street closed in the green overnight on earnings boost from Citigroup and economic data. The Asian pack was mostly higher on Citigroup’s positive earnings report and ambiguous economic news from the US. The SGX Nifty was up seven points at 6,140 against a close of 6,133 on Monday.

Opening with marginal gains, the Indian market soon dipped into the red on profit taking yesterday. A sharply volatile session saw the indices trade in a narrow range in the negative terrain till the post-noon session. A green opening of the key European markets gave the much-needed boost helping the domestic market closing near the high-point of the day.

The Sensex finally ended the day up 43.84 points (0.22%) at 20,169. The benchmark touched an intraday high of 6,115 and a low of 5,985.

Earnings report from Citigroup propped US financial stocks resulting in the indices closing in the green on Monday. Investors braced themselves for earning reports from Apple and IBM, which were announced after trade closed for the day. Besides, the National Association of Home Builders said its housing-market index rose three points to 16 in October, the first improvement in five months.

Citigroup’s third-quarter earnings topped analysts' estimates. Revenue rose 2%, meeting expectations, as the company managed to grow its core businesses broadly. After regular trading hours, Apple tanked 6.3% despite reporting stronger earnings, as gross margins missed analysts' expectations and iPad sales disappointed.

IBM tumbled 4% in late trading after reporting that its signed service contracts fell 7%. Microsoft slipped 2.4% after-hours on reports that Ray Ozzie, its chief software architect, is retiring.

The Dow gained 69.63 points (0.63%) to 11,132. The S&P 500 added 5.56 points (0.47%) to 1,181. The Nasdaq added 5.03 points (0.20%) to 2,474.

Markets in Asia were mostly higher in early trade. While banking stocks received a boost from Citigroup’s earnings report, weaker-than-expected industrial production for September ignited fresh worries about the global recovery.

The Shanghai Composite was up 0.35%, Hang Seng gained 0.85%, Jakarta Composite was up 0.63%, KLSE Composite was up 0.40%, Nikkei 225 was up 0.53%, Straits Times was up 0.27%, Seoul Composite was up 0.05% and Taiwan Weighted gained 0.10%.

Interim pension regulator PFRDA on Monday said that Bajpai-headed committee report on overhauling the structure of all citizens' pension scheme is expected next month.

"The Bajpai committee report we should be having in a month or so," Pension Fund Regulatory and Development Authority (PFRDA) chairman Yogesh Agarwal told reporters on the sidelines of a PHD chamber event.

PFRDA has appointed a committee headed by former Securities and Exchange Board of India chairman G N Bajpai to look into the fee structure and suggest changes of New Pension System (NPS).


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