VA Tech Wabag Ltd IPO Message Board (Page 26)

Crux of the matter is VA-Tech is no doubt a good company to invest in although they have priced the IPO bit on higher side and its happening right from 2005 and VA tech is no different.

Also there is nothing bad in rising or upward direction and there is nothing good in downward direction.

And the crux of the matter from the article is -
Interestingly, the valuations of four other companies also shown in the prospectus are lower than what they are on a consolidated basis - an error that swings the other way! Meaning, VA Tech Wabag is actually a better issue than what the comparison shows.

grp is Rs 480 listing rate Rs.1690

can they pay intrest of late reund

gmp rises to 450rs

For the second time in the last three months, an initial public offer has had to delay its listing date and offer investors a chance to exit the issue.

Both instances come following a communication from the Securities and Exchange Board of India (Sebi) about problems with the red herring prospectus of the respective companies.

VA Tech Wabag, a Chennai-based water and waste treatment company, has offered the investors the option of withdrawing from its blockbuster IPO, which was oversubscribed 36.2 times, following errors in its red-herring prospectus.

Earlier Aster Silicates, an Ahmedabad-based company that listed in July, also had to offer a withdrawal option to its investors.

In the case of the latter, the option was offered following allegations against promoters including that they had pledged shares which had not been disclosed in the red herring prospectus.

The company filed responses to these allegations and offered investors an exit option.

For VA Tech Wabag, on Page 96 of its prospectus, its financials were compared with those of peers.
However, the company’s numbers were taken on a consolidated basis while those of its peers were on a standalone basis. A note at the base of the table claimed that all figures were on a consolidated basis.

This had the effect of making a comparison of the company with peers on non-similar parameters.
In the case of two of the companies the valuations turn out to be actually cheaper than what was shown in the VA Tech Wabag prospectus.

VA Tech Wabag offers IPO investors pullout option
IVRCL Infrastructure and Projects has an earnings per share of 2.6, which adds up to a price/earnings multiple of 63.2. But earnings per share on a consolidated basis works out to Rs7.94, which gives a multiple of 20.4.

Nagarjuna Constructions was shown to have an EPS of Rs7.6, which translated into a multiple of 19.2 at the prevailing market price. Consolidated figures place the EPS at Rs.10.8, translating into a multiple of 14.1.

“This is a serious lapse on account of the merchant bankers, which has resulted in a misrepresentation of the company’s valuations,” said independent investment advisor S P Tulsyan.
Interestingly, the valuations of four other companies also shown in the prospectus are lower than what they are on a consolidated basis - an error that swings the other way! Meaning, VA Tech Wabag is actually a better issue than what the comparison shows.

Sebi had, in a letter on October 4 to VA Tech Wabag, cited the difference in the figures in the prospectus.

Following the communcation from Sebi, the company offered a chance for withdrawal from the issue. In a public notice the company stated that they were not in a position to confirm whether the said ratios are on a standalone or on a consolidated basis.

It however said that the statement ‘Figures are on a consolidated basis,’ stands deleted.

“In view of the disclosures herein, kindly note that all Bidders(including QIBs and Ancho r Investors) who have submitted their bids in the issue may, if they so desire, withdraw their applications.”
In The VA Tech Wabag IPO its investors were offered a seven day exit period, ending on October 11.

The issue is going ahead as planned after the matter, according to a source.

In the case of Aster Silicates, they were offered 10 days to withdraw, ending July 23. The issue was finally listed on 28 July.The Aster Silicates IPO raised Rs 53.10 crore. Saffron Capital Advisors were bankers to the issue.

The fresh issue and the offer for sale for shares in VA Tech Wabag total to Rs 472.59 crore constituting 34.37% of the company. Enam Securities and IDFC Capital were the merchant bankers to the issue.

The fresh issue and the offer for sale for shares in VA Tech Wabag total to Rs 472.59 crore constituting 34.37% of the company.

There are eight other IPOs waiting to hit the market, to collective raise Rs1,900 crore.

LATEST INFORMATION: Withdrawal time over but processing of withdrawals continuing and expected to be completed by late tonight. Withdrawals mostly in Retail sector. Latest position Retail sector is down from 8.55 to 5.31 times. QIB and NII almost NIL withdrawals. Retail applicants have been fooled. We have to wait till late night today. Whoever not withdrawn will get maximum shares. Allotments will be done tomorrow sure.

Are we going to get any interest for late refund

premiums is 420 Rs. listing rate is 1650 Rs.

Hurray !!! allotment will be out by tonight or early tomorrow morning

Just spoke to Murli Krishna of Karvy. Have been told that the allotment will be out tomorrow and the refund by tomorrow evening or on 13th. The subscription figures are down by one time i.e around 35 levels as of 5 pm in the evening.

What has happened with VA TECH ? Is there any issue with IPO ? Why people are talking about withdrawal of Money because of delay of allotment ?

va tech will be list at 2300 and reach at 2800 after 2.30pm
allotment will be done tommorrow 15 shares expected


regard

investor

TODAY ON CNBC HOST MR.NATVARLAL (UDAYAN MUKHARJI) SAID THAT GALLENT ISPTAT (TODAY LISTED) GONE TO 35 - 40 LEVEL AND TOUCH 87 rS. WAH KYA SIN HE.

WE ALL RETAIL INVESTOR MUST GONE TO SEBI THAT S.P.TULSIAN AND CNBC MISGUIDE RETAIL INVESTOR. I HAVE EXAMPLE THAT S.P.TULSIAN IS A CHEATER HE TOLD IN CNBC T.V. 18 THAT NMDC GONE TO 150 PRICE WHILE IT RUNNING 250 AND AFTER GONE HIGH 570. THATS SIMPLE EXAMPLE.

Earlier people were doubting integrity of S.P.Tulsian. Now it is proved that Tulsian has NO INTEGRITY at all. From now investors should totally ignore him and reject all his bogus advices. Once we do it S.P.Tulsian will be reduced from "HERO" to one big "ZERO".

1047 . anonymous
va ka bhav 840 se 900 ke bich khulega and one month me 500 ke niche jayega.

beta kuch pata he.. hehehe tu toh reliance power jaisa samjah raha he isse bt yeh waisa nai he hehehe tulsian aadha murakh he..

trust on rajesh tambe.(d street ka don) hehehe don khush hua :P.. lolz.!:D

my simple n best suggestion is tht don't trust s.p tulsian.

Chirag.

when we get bach my refund ?
ashvin

will they pay Interest for the refund

no which channel you have heard that ?

Dear Friends
Just Now watched the news on the TV indicating that Va Tech Wabag will return the money of the Investors meaninng that the IPO stands cancelled as of now.Bad Luck.It was a really good IPO.
With regards
Chintan