SVEC Constructions IPO Price Band revised

SVEC Constructions IPO seems to be the IPO next in line to get victimised due to poor market sentiments. The IPO failed to subscribe even by 50% with the institutional investors showing a thumbs down. Institutional investors category has not even been subscribed by 1%. As of now there seems to be only one bid made in this category by a Domestic Financial Institution. Clear signs that the SVEC Constructions IPO might get cancelled as well. SVEC Constructions IPO Price Band has been lowered from Rs. 85 to Rs. 95 to Rs. 80 to Rs. 90 per share.

Emaar MGF IPO / Wockhardt IPO cancelled

Emaar MGF IPO Subscription as well as Wockhardt IPO Subscription have been cancelled. The reason for the IPO subscription being revoked, even after futile attempts to make the IPO attractive by reducing the price band, is two pronged. The most important reason is that the IPO market seemed sub dued due to the stock market crash in almost all major world markets affecting the sentiment of investors in India. This is made evident from the fact that even the Reliance Power IPO received a large number of stop payments after the IPO closed for subscription. The second reason for the Emaar MGF IPO Subscription and Wockhardt IPO failing was that promoters and lead managers had priced the IPO issues very aggressively since the IPO market in India was looking great until the time both these IPO’s opened for subscription. A fall-off due to the twin IPO failures would be the Reliance Power IPO listing which is likely to provide much lower listing gains than anticipated before. This is evident from the grey market premium of Reliance Power IPO which has been continuously going southwards for the past week or so. Emaar MGF IPO refund and Wockhardt IPO refund will be made by the fourth week of February 2008.

Weekly Report 08/02/2008

MACRO ECONOMIC FACTORS
Inflation figures stood at 4.11 % at the end of this week compared with 3.93% last week.
The yield on the 10-year G – Sec has remained flat at 6.83%.
Crude oil price stood at US$89.08 per barrel by the end of the week. Over the week crude oil prices hovering around US$87.14 - 90.02 per barrel.
Rs per US$ exchange rate closed at 39.62 by the end of the week. Exchange rate Rs/US$ continued to trade around Rs.39.44to 39.62.