सुशील गिरधर का नया हिंदी ब्लाग

Many times we come across some blog, information or news about new IPO and urging people to go for it. A number of investors, especially, beginners do not know What is an IPO at all? what are the benefits or demerits of going for IPOs. What are the term used? They want to know about listing process, book building process etc. Here we tried to put all this information in questions and answers form. Hope it comes out to be useful for all.

1 What is an IPO?
An IPO is defined as an exercise when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public.The exercise refers the issue of shares to the public by the promoters of the company. The shares are made available to the investors at the face value of the share or with a premium as per the perceived market value of the share by the promoters.The IPO can be in the form of a fixed price portion or in the form of a book building portion. The IPO paves way for listing and trading of the issuer’s securities.

2 What are primary/secondary market transactions?
Primary market transaction is usually referred to the purchase of shares in an IPO. The purchases are made through applications for the shares on a prescribed form. Once the shares are allotted, the share transactions are carried out in secondary market or stock exchanges.Secondary market transactions refer to those transactions under which an investor purchases shares from another investor at the prevailing market price or at whatever price the buyer and seller agrees upon.The primary and secondary markets are governed by a regulatory authority Security and Exchange Board of India (SEBI).

3 What are eligibility norms for making an IPO?

SEBI has laid down eligibility norms for entities planning to enter the primary market through public issues. An unlisted company needs to satisfy following criteria to be eligible for making a public issue: • Net tangible assets of at least Rs 3 crore for three full years
• Distributable profits in at least three years
• Net worth of at least Rs 1 crore in three years
• If change in name, at least 50 per cent of revenue for preceding one year should be from the new activity
• The issue size should not exceed five times the pre-issue net worth SEBI also provides alternate routes to the companies not satisfying any of the above parameters, for accessing the primary market.The alternative conditions are as follows: • Issue shall be made through book-building route, with at least 50 per cent to be mandatory allotted to the QIBs
.• The minimum post-issue face value capital shall be Rs 10 crore or there shall be a compulsory market-making for at least two years.

4 How can one apply for an IPO?

An investor needs to first obtain an IPO application form through a share broker, an investment consultant or from the collecting banks. The investors are required to fill up the form and remit the amount after calculating the number of shares applied for in the bank, which has been designated as a collecting centre for the particular IPO.An investor holding a demat account can either apply for the shares directly through the account or can opt for physical delivery of share certificates. There are certain IPOs, which offer only demat form of shares, while others offer both the demat and regular shares. Application forms can be rejected due to incomplete details.Every week SEBI issues press releases for information of the public, details of offer documents filed with SEBI and observations issued. The required details can be obtained from the ‘Primary Market’ section of the SEBI website. The draft offer document can also be purchased from the SEBI office. The draft offer document/letter of offer remains posted on SEBI website for a period of 21 days from the date of filing the same to SEBI and can also be downloaded from there.Application forms can also be obtained from the lead manager and brokers to the issue. The application forms are also generally available at collecting bankers. Name and addresses of the lead manager are available in the prospectus/letter of offer.

5 What is book-building process?
SEBI guidelines defines book building as “a process undertaken by which a demand for the securities proposed to be issued by a body corporate is elicited and built up and the price for the securities is assessed on the basis of the bids obtained for the quantum of securities offered for subscription by the issuer”.This process provides an opportunity to the market to discover price for the securities on offer. In common words, book building is a method for public offer of equity shares of a company. The process is named so because it refers to collection of bids from investors, which is based on a price range. The issue price is fixed after the closing date of the bid.A company planning an IPO appoints a merchant bank as a book runner. Then the company issues a prospectus that does not mention the price, but provides other details related to the issue size, the company’s operating area and business, the promoters and future plans among other disclosures.A particular time frame is also fixed as the bidding period. Then the book runner builds an order book that collates bids from various investors. Potential investors are allowed to revise their bids at any time during the bidding period.At the end of bidding period the order book is closed and consequently the quantum of shares ordered and the respective prices offered are known. The calculation of final price is based on demand at various prices and also involves negotiations between those involved in the issue.The book runner and the company finalise the pricing and allocation to each syndicate member. 6 What is the main difference between a book-building route and the normal public issue?
Unlike the book-building route, the price is known in advance to investors in case of offer of shares through normal public issue. On the other hand, the demand can be known everyday as the book is built in case of book building, which demand is not known until the close of the issue in case of the normal public issue. ....

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Birla Sun Life Commodity Equities Fund is opening on September 15th 2008 .More Details are as follows.
Name of the Scheme : Birla Sun Life Commodity Equities Fund
Structure : An Open Ended Growth Scheme
Investment Objective : 
An open-ended Growth Scheme with the objective to offer long term growth of capital, by investing in (1) stocks of commodity companies, i.e., companies engaged in or focusing on or benefiting from the specified commodity business and/or (2) scheme(s), that invest predominantly in commodity linked stocks. If and when allowed by the regulator, the Fund may also invest in commodity derivatives or such mutual fund Schemes that invest in commodity derivatives.These securities could be issued in India or overseas.
Various Fund under this Plan 
• Birla Sun Life Commodity Equities Fund – Global Energy Plan
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• Birla Sun Life Commodity Equities Fund – Global Agri Plan
• Birla Sun Life Commodity Equities Fund – Global Water Plan
• Birla Sun Life Commodity Equities Fund – Global Multi Commodity Plan
• Birla Sun Life Commodity Equities Fund – India Multi Commodity Plan
Each Plan shall have a Separate Portfolio.
Minimum Application Amount
Retail Plan: Minimum of Rs. 5,000/- and in multiples of Re. 1/- thereafter during the
NFO period and ongoing basis.
Institutional Plan: Minimum of Rs. 5,00,00,000/ and in multiples of Re. 1/- thereafter
during the NFO period and ongoing basis.
Minimum Additional Application Amount
Retail Plan: Minimum of Rs. 1,000/- and in multiples of Re 1/- thereafter on an
ongoing basis.
Institutional Plan: Minimum of Rs. 10,000/- and in multiples of Re 1/- thereafter on
an ongoing basis.
Minimum Redemption Amount
In Multiples of Re. 1/-
Minimum Target Amount to be raised
Rs. 1,00,00,000/- during the New Fund Offer Period.
New Fund Offer Price
Rs. 10/- per unit for cash plus applicable entry load.
Repatriation Facility :
NRIs, FIIs and PIOs may invest in the scheme on a full repatriation basis.(Investment will be governed by rules laid down by RBI/SEBI in this regard).
Mutual Fund Offer Document

Bharat Sanchar Nigam Ltd’s project for setting up mobile network for 93 million subscribers across the country, the world’s largest, has received bids from 6 vendors - Ericsson, Nokia Siemens, Alcatel Lucent, ZTE, Huawei and Nortel.

US major Motorola did not submit its bid despite having gone to the court for being disqualified from bidding for the previous contract in 2006.

The move from Motorola could be indicative of the company’s future strategy of not going after the GSM equipment market and instead focus on new technologies such as WiMax.

BSNL will award the contract to the lowest bidder in each zone in the country. The financial bids will be opened after a committee evaluates the technical aspects submitted by the vendors.

The total cost of the project is estimated at around $10 billion.

BSNL had divided the project into four parts. Part 1 includes setting up network for GSM based 2G mobile services.

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While Ericsson and NSN have bid for areas where they already have set up infrastructure either for BSNL or other operators, Chinese vendor ZTE is the only company which has put in its bid for all zones in both categories.

The third segment will be awarded to companies which can set up the passive infrastructure including towers, power generation rooms and other basic equipment required for a cell site.

BSNL has received bids from a number of players including GTL Infra, KEC, Quippo and Acme.

The fourth part is related to software and billing for which the bidding will take place by the end of the month.

Almost all BSNL’s mobile contracts have run into rough weather previously. Some of the vendors said that the latest contract may also get controversial once the financial bids are opened.

They said that BSNL had diluted the eligibility norms allowing vendors with no manufacturing facility in India to bid for the project.

In the earlier contract, BSNL had made it mandatory for the vendors to have local manufacturing, which had kept out the Chinese companies from the bidding process.

For latest Telecom News update...visit my another site

www.latesttelecomnews.blogspot.com

Looking to expand its network in rural India and the onset of the 3G services round the corner, state-owned BSNL today opened the large tender for 93 million GSM lines for which as many as six companies have made a bid.

Through these 93 million lines, BSNL also plans to extend coverage of its GSM mobile services to all villages having population of more than 1,000 persons. Besides, 25 per cent of these lines are for operating the 3G equipment.

The tender is worth $9 billion and was floated two months back.

Six telecom vendors, including Nokia-Siemens Network, have bid for the 93-million GSM lines contract. These include Nokia-Siemens Network, Ericsson, Huawei, Alcatel-Lucent, Nortel and ZTE. Surprisingly, Motorola has not bid for the contract.

As the BSNL opened the bids, communications and IT minister A Raja said BSNL would provide services to all villages having population more than 1,000 persons.

BSNL will also introduce value-added services like mobile TV, mobile broadband, MMS, location-based services etc, he said. The minister informed that value-added services, like mobile banking, mobile advertisement, tele-education and lost mobile tracking system, were also planned to be launched by BSNL during the current year.

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BHARAT SANCHAR NIGAM LIMITED(A Govt. of India Enterprise)OFFICE OF THE CHIEF GENERAL MANAGER - ANDAMAN AND NICOBAR TELECOM CIRCLE www.andaman-nicobar.bsnl.co.in
Notification for Recruitment of Telecom Technical Assistant (TTA) in BSNL
Applications on A4 size paper in the prescribed proforma given below are invited from the eligible Candidates for the following post:
Telecom Technical Assistant (TTA): 16 Posts
Pay Scale: Rs. 7100-200-10100 plus and other usual allowances as applicable as per Rules.
Age: Candidates must be between 18 and 27 years as on 30.09.2008
Qualification:A Candidate must possess three (3) years Engineering Diploma in Telecommunication Engineering / Electronics, Engineering / Electrical Engineering / Radio Engineering / Computer Engineering / Instrument Technology / M.Sc (Electronics) from a recognized Institution / University on the date of application.
Fee: Rs. 500/- (Rupees Five Hundred Only) in the form of Bank Draft drawn in favour of Accounts Officer (Cash), BSNL, A&N Telecom Circle, payable at Port Blair along with the application in a single draft. Fees once paid will not be returned under any circumstances. SC / ST Candidates are exempted from the examination fee provided they enclose necessary Community Certificate.
Last Date to Apply: 30 September, 2008
Recruitment Details: www.andaman-nicobar.bsnl.co.in/html/TTA-DIRECT%20RECTT-2008.pdf

Over 210,000 executives in estimated 240 central public sector undertakings are in for a bonanza with a pay revision committee recommending a massive hike in their annual cost-to-company. The hike ranges between 379 per cent at the highest level and 57 per cent at the lowest across companies and levels.

This is assuming the maximum possible payout an executive can get. The award, if accepted, would mean that government servants, particularly defence personnel, would be paid far less in comparison even if one takes into account the recent hike recommended by the Sixth Pay Commission.

The second PSU pay revision committee, headed by former Supreme Court Justice M Jagannadha Rao, submitted its recommendations on Friday to Minister of Heavy Industries and Public Enterprises Sontosh Mohan Dev.

“We are giving more authority to the companies. They can earn more profit and can share it with their employees,” he said. The report has been sent to the Prime Minister’s Office and the finance ministry. After it is examined, a final proposal will be put up for Cabinet approval. The process could take three-six months.

Shorn of variable components like risk pay and performance-related pay, the effective pay hike works out to between 25 per cent and 40 per cent, according to SM Dewan, director general, Standing Conference of Public Enterprises. “This is a paradigm shift in the government’s thinking on running a business enterprise. It does not put us on a par with private sector companies, but it is a very good beginning,” he added.

The revised salary structure is proposed to come into effect from January 1, 2007.

The proposed pay structure seeks to reduce the disparity between public sector executives and their private sector counterparts and introduce a performance-based compensation culture.

In another far-reaching recommendation, the award calls for complete delinking of public sector and government pay scales. PSU employees are proposed to get much more than government officials.

For instance, the chairman and managing director of a company like ONGC, NTPC or Bharat Sanchar Nigam Ltd is proposed to be paid Rs 52.20 lakh a year, much more than the annual compensation of Rs 15 lakh (inclusive of all allowances and perks) that a secretary in the central government will get if the Sixth Pay Commission award is implemented in toto.

On a strictly fixed-pay basis, a public sector chairman and director will get Rs 1.25 lakh a month in category A and Rs 65,000 a month in category D companies. In comparison, a government secretary will be paid a fixed Rs 80,000, while the cabinet secretary will be paid Rs 90,000 a month.

The report also recommends that central PSUs be categorised into five (A +, A, B, C, D) based on turnover, manpower and geographical spread.

“We want total delinking of PSUs from the government as we want them to become profitable and strong,” said Board for Reconstruction of Public Sector Enterprises Chairman Nitish Sengupta, who was a member of the committee.

The pay will be split into two components, basic pay and risk pay, with the latter depending on categorisation, profitability and the executive’s grade. Loss-making firms will not be required to shell out risk pay.

Pay panel’s other recommendations

• Employee stock options, linked to performance pay


• Performance-related payout amounting to 40-200 per cent of basic pay


• Risk pay of Rs 1,100 to Rs 25,000 per month


• New pay scale of Rs 65,000 - 75,000 of E-10 in A+ companies


• Sick companies to be allowed pay revision (without risk pay or variable pay) if they make cash profit


• Central PSUs not making cash profits to be examined by the Board for Reconstruction of Public Sector Enterprises


• CMDs and directors of sick central PSUs which have seen a turnaround will retire at 60


• No upper limit on gratuity


• Separate fund for post-retirement medical treatment and to meet emergency needs of those who have retired


• Revision of pay for non-unionised supervisors to be decided by board of directors


• Retirement benefit of 30 per cent of basic pay, which includes CPF, pension, gratuity and post-retirement medical benefits

MAHARSHI DAYANAND UNIVERSITY ROHTAKwww.mdurohtak.com
Advt. No.4/2008
Applications on prescribed forms are invited from eligible candidates for the following posts:
Budgeted Teaching Posts:
Chemistry: Professor-2(UR)Fine Arts: Lecturer- 1(UR)Computer Science & Applications: Lecturer -6(UR-4, SC-2)
Budgeted Non-Teaching Posts:
Librarian (Gen):1Executive Engineer (Gen):1-CivilPrincipal University Campus School (Gen):1Transport Officer (Gen):1Tabla Player (Gen):2Lab. Attendant (Phy.) (Gen):3Lab. Attendant (Chemistry):4 (Gen.3, SC-1)Lab. Attendant (Bio Sc.) (Gen):2Lab. Attendant (Psychology) (Gen):2Clerk-cum-typist:18 [SC-5, BCB-1 ESM-12 (Gen.-5 BCA-4, BCB-3)]Steno-typist:23 [General-1, SC-10, BCB-2, PH-1, ESM-9 (ESM Gen.4, SC-1, BCA-2, BCB-2)]In-charge Lib. Campus School (Gen):1
Self-Financing Scheme(Teaching posts):
University Institute of Engg. & Technology:Director-1(UR) ( on consolidated emoluments linked with salary last drawn)Professor-8( UR-6, SC-2)Assistant Professor-16(UR-10, SC-3, BC-2, ESM-1)Training & Placement Officer-1(UR)Dept. of English: Lecturer-02 (UR) (01 each in French & Spanish)Institute of Law & Management Studies, Gurgaon : Lecturer-1 (UR) IT
Last Date to Apply: 30 September, 2008
Recruitment Details: www.mdurohtak.com/upload/Advt_No_42008.pdf