Daily News from Bse,Nse Stock Markets of India |IPO Information

Good news for the IPO Investors, as they have to wait no longer for weeks for refund of their IPO application money. The application money earmarked for an IPO will now remain in the applicant’s bank account till the allotment is finalised, thus eliminating the refund process, SEBI said on Tuesday, addressing a long-standing grouse among investors, particularly in the retail segment.

“The Board approved, in principle, the concept of making lien on bank account as an alternative mode of payment in public/rights issues.” “The modalities in this regard would be worked out separately,” said a news release from SEBI, issued after its Board met on Tuesday.

This means that the money marked for the IPO will not be used for any other payment obligation during that period. At the same time, the applicant will enjoy the interest payable on the amount.

This would also reduce the burden on registrars and merchant bankers. But bankers to the issue can no longer enjoy the floating interest, said officials associated with the IPO process.

Most important of all, investors would not have to wait for their refund money. It also ensures that a liquidity crisis such as that of January 2008 does not occur again.

At that time, many investors were unable to buy scripts which were at attractive lows, as their money was locked up in the Reliance Power and the Future Capital IPOs. Nor could they meet their margin money requirements.

The Securities and Exchange Board of India, or Sebi, board has approved the escrow format for IPO or rights applications which means that the retail investors will pay only on allotment.

The board has also given an in-principle nod for alternative payment for public or rights issues. Sebi has allowed lien on investors’ bank accounts for IPO application.

Sebi has also upped the networth norm for portfolio managers to Rs 2 crore. The current norm for networth of portfolio managers stands at Rs 50 lakh. The regulator wants existing portfolio managers to meet its networth norm in one-year. “Portfolio managers cannot pool client funds similar to mutual funds.”

Oil prices touched a record high of US$125 per barrel and was set for the biggest weekly gain in more than a year amid mounting concerns over supply disruptions ahead of the summer driving season in the US. Crude oil for June delivery climbed as high as US$125.98 a barrel in electronic trading on the New York Mercantile Exchange on Friday.

The contract was last quoted at US$125.17 at 1:32 p.m. London time. Oil is up 7.6% this week, the biggest weekly gain since March 23, 2007. Oil prices have doubled from the same period a year ago.

The US government reported on May 7 that distillate fuel inventories and refinery operations fell last week. US distillate stockpiles, which include heating oil and diesel, declined 107,000 barrels to 105.7mn against forecasts for an 800,000-barrel rise, the Energy Department reported.

Refineries in the US operated at 85% last week, down from 89% the year before, the data showed. Meanwhile, Goldman Sachs forecast that prices could hit US$200 a barrel in the next two years. The Wall Street major had famously and correctly predicted three years ago that oil would break through US$100.

Aro Granite Bonus issue is approved by the board members in their board meeting. Aro Granite Bonus shares will be allotted to the share holders in the ratio of 1:2.

Aro Granite have announced their results yesterday, and the company has posted a net profit of Rs 2.57 crore which is 28% decline compared to the previous quarter. Despite the bad results because of the bonus news the company’s shares gained 1.53 per cent  to close at Rs. 113 on the BSE.

Aro Granite Bonus issue Record date is not yet announced by the company, Do check back for more information on Aro Granite Bonus Issue details.

Gemini Communication Stock Split will be considered in the upcoming board meeting. According to the annoucement made to the exchanges, the company has said that Stock Split will be recommended in the meeting to be held on May, 19th 2008.

Gemini Communication Stock closed negative yesterday by Rs. 6. More information and updates on the Gemini Communication Stock Split will be known after the board meeting.

Frankfinn IPO can be expected next year, Moving forward with its plans to launch a low-cost airline service, Frankfinn Aviation is now mulling a full service airline operation by 2009 end or the beginning of 2010.

Frankfinn the airhostess-training institute is planning an IPO at the beginning of next year.Apart from the IPO route, the company may also invite equity participation from a foreign partner, he said.

Frankfinn had earlier said that it had plans to start only a low-cost airline, competing directly with majors such as Air Deccan, SpiceJet, GoAir and Indigo.

Finalise Project details

The company will operate its airline business under the Air Frankfinn brand and will initially start with six aircraft, Samir Valia, Vice-President, Corporate Communication, told Business Line here, on the sidelines of a press conference. “Our corporate team in Mumbai is in the process of finalising project details. We will initially operate only domestically after getting the necessary approvals from the Government and our aircraft will constitute a mix of large Air bus and small ones,” he said.

An official said the aircraft basket will consist of three to four Airbus 380s and also a few ATRs.

The company has a target of achieving a fleet of 20-30 aircraft in three years. The company has appointed an aviation consultant to finalise the project, industry sources said.

Tie-up wth Jet Airways

Meanwhile, Frankfinn Airhostess Training Institute on Wednesday announced a tie-up with Jet Airways to familiarise its students with off and inflight procedures. The tie-up, however, is not a recruitment arrangement, Valia clarified. The institute’s recruitment tie up with Air Deccan has been terminated, he said.

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The company, which had registered a turnover of Rs 250 crore last year, plans to increase it by 25-30 per cent this year with 20-25 more centres coming up in the same period, Valia said.

Texmaco board to consider dividend and stock split in their upcoming meeting.  A meeting of the board of directors of Texmaco, will be held on May 16, 2008, to consider financial results of the company for the year ended Mar. 31, 2008 and further the board will consider dividend and Stock Split of equity shares of the company.

Texmaco announced a phenomenal rise in standalone net profit for the quarter ended December 2007. During the quarter, the profit of the company rose 2.07 times to Rs 145.81 million from Rs 70.29 million in the same quarter, last year.

Texmaco Net sales for the quarter jumped 84.66% to Rs 1,605.43 million, while total income for the quarter jumped 85.10% to Rs 1,625.18 million, when compared with the prior year period. The company posted earnings of Rs 14.12 a share during the quarter, registering 2.07 times growth over prior year period.

Shares of Texmaco gained Rs 29.65, to close at at Rs 1,459.8 on the BSE. Texmaco Stock Split Ratio and record date will be known only after the board meeting. Do check back for Texmaco Stock Split Details.