Hi, Is it possible to see the status of application by giving our client id/dpid etc?i.e without the application number which I am unable to find out! Nitin
It is quite natural for some retail investors to panic about what price Cairn will list at. Cairn is an international company with unmatched expertise in the oil sector, and there is NO reason why it should not be a success.
It is good to recollect the fact that ICICI Bank too had faced a similar problem with its IPO and FPO and had appointed JM Morgan Stanley as the price-stabilising agent in the post-listing period. http://www.thehindubusinessline.com/2005/12/01/stories/2005120102491500.htm
So there is nothing to worry about for Cairn investors. Do not panic, and the share price will appreciate reasonably post-listing.
New Delhi: Cairn India Ltd (CIL), which raised $1.18 billion in an initial public offering (IPO) last week, will list on the Bombay Stock Exchange and National Stock Exchange early next month.
"The share allotment will happen by December 29 and we will list before January 10," Rahul Dhir, CEO, CIL said here.
Cairn India had priced its IPO at the bottom end of its indicated range of Rs 160 to 190 per share, valuing the company at about $6.32 billion.
In all the company raised Rs 8,616 crores - Rs 5,260 crores through the IPO of 328.80 million shares and Rs 3,354.7 crores through a pre-IPO private placement mostly with Petronas of Malaysia.
Dhir expressed satisfaction at the response to the IPO. "We are very very pleased (with the response)... we have got good backing from long term sophisticated investors."
The IPO was over-subscribed 1.1 times despite the volatility in the stock markets since the time it opened on December 11. "When the market is volatile, investors are usually undecided about taking positions. A stable market helps people take views on in vesting in new stocks," he said.
Following the floatation, Cairn Energy Plc will own a 69.5 per cent holding in Cairn India. Cairn Energy Plc Chief Executive Bill Gammell said, "This has been one of the biggest IPOs carried out in the Indian markets and is a natural evolution for Cairn, building on more than ten years of success in South Asia."
"On completion of this transaction, Cairn India will be the largest independent exploration and production company listed in India."
Green shoe Option: Besides having the alloted shares company can put a green shoe option of some %. in case if the issue very highly oversubscribed then that much predefined % of shares will be diluted (from say pramoter) so that more no of investors get the shares. if the issue didnt get over subscribed much then the pramoter will hold that % of shares.
by this concept one can " make an issue bit oversubscribed By decreasing the nO of shares" . its a concept inroduced to deal with Demand /over ubscription.