VA Tech Wabag Ltd IPO Message Board (Page 28)

Please see below the DNA news article for your reference

http://www.dnaindia.com/money/report_va-tech-wabag-offers-ipo-investors-pullout-option_1450812

@1031 VERY WELL SAID.

Merchant bankers only serve the promoters/companies who pay them.
You don't bite the hand that feeds you!!
Maybe you are right, that they would project this Va tech as a steal deliberately and to mislead small investors particularly.

There is going to be a huge surge of IPOs in the coming weeks/months.

When in doubt don't is the cardinal rule.

Withdraw while you can still do it.

You can send email to Karvy giving all details of application like name,nor of shares,application number,demat details etc.

They will have to do it.

Have received SMS from HDFC Securities for option to withdraw from VA Tech WABAG. Also read today's DNA Newspaper where the circumstances are mentioned. According to DNA, the comparisons were not like to like i.e., consolidated figures of VA Tech was compared with standalone figures of its peers. DNA further mentions that VA Tech's figures will be better in 2 of the comparisons. Therefore, according to me, it is an error which is not material and that there is no need to panic. What do you boarders suggest now?

i have already given my view on that disclosure issue.....

What more shud i say more....

Plz filter my posts....

Else withdraw.....your application

i am keeping my 40 lakhs application and other application for my clients....

Stupid people ......!!

On top of that Call themselves serious bloggers....

Last day to withdraw application.

Wherever there was some thing like this it is better to take money back.

There are other issues that you can apply safely without any clarifications/errors etc.
Why get into something which is uncertain.

Better play safe.

Moreover all the recent IPO listings have been indifferent excepting Career Point.

PLAY SAFE ; ; ; WITHDRAW APPLICATION FROM VA TECH WHILE YOU CAN

We have to writr all details, like DP id, application number etc on plain paper and then send it to mentioned address.

NO ONLINE withdraw option available.

Ridiculous.....

http://epaper.financialexpress.com/FE/FE/2010/10/05/INDEX.SHTML

go to page number : 11

Saurabh

today is last day

Karvy House, 46, Avenue 4, Street No. 1,
Banjara Hills, Hyderabad - 500 034
Andhra Pradesh, India

Phone: +91-40-23312454
Fax: +91-40-23311968

pls any quary call karvy - +91-40-23312454

or E-mail - vatech.ipo at karvy.com

The issue was subscribed 36 times in the QIB category. In my opinion, QIBs will rely on their own valuation metrics and will be aware of the consolidated figures for the peers of this company as this information is actually available in public domain. Even the HNIs may invest based on the advise of their PMS advisors who wouldn't go by the peer comparison data given in the RHP. The only category of bidders who might have been misled by the incorrect data is the retail segment. Therefore, I do not anticipant significant changes in the subscription numbers. Accordingly, I expect a reasonable premium on listing. So no need to withdraw (in my opinion).
Venkatesh

Whatever may be the case, the market is going through a real consolidation and potentially correction phase. Many IPOs lost money of the investors on the listing-day and afterwords! This IPO, too is a risky bet. This may be a bat, this may a vampire.

However, the reported misrepresentation on the published documents could be intentional. Investment Bankers have been questioned lately by SEBI with respect to their responsibility towards the investors. It looks like, Investment Bankers are doing their best to EXPLOIT the investors to make money for their clients (Promoters of the Companies doing the IPOs).

These Investment Bankers get paid NOT by the investors, but by the Promoters of the companies in question. So, it is easy to understand whose interest the Investment Bankers are interested in guarding. Apply your own logic and try to stay away from yet another trap. After all, it is your hard-earned money!!

Kalinga King

i applied through asba from icici direct, how can i withdraw my application , i am currently out of india

When is allotment expected and listing date and what will be listing price ? Any precition ?

The allotment will happen only after 18th oct.

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
) 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.

The issue was that in Page 96 of the RHP under the section titled "Basis for Allotment Issue Price" in para "Comparison with other listed Companies", Wabag had given their company ratio's on a consolidated basis and the ratios of other peer group companies were extracted from "Capital Markets"

Wabag had not specifically mentioned that the above was on a consolidated basis hence SEBI's letter to them. Its not a big issue and the same has been rectified in the RHP but in the interest of investors they have said on can withdraw, there is no need to panic etc. I have 6 lots and I am not withdrawing at all so folks stay invested as Wabag will give you very returns. Others are just creating panic here and some others know that its been oversubscribed so they want folks to withdraw so that the invested ones benefit due to withdrawals as the invested ones get more on allotment.

Bottomline - Great company, niche business, handsome returns assured, stay put and be patient

Guys don't worry. It's just a technical error in offer document. There is nothing major thing to panic. I don;t think either HNI's or QIB's will withdrawn for this techinical error. That;s the reason it was not highlighted in Media aggressively.

Allotment will happen by tomorrow and It will certainly do well.

WHAT TO DO NOW
SHOULD WE WITHDRAW R LEAVE AS IT IS

Dear SJ,

its an direct question and need direct reply,

leave all other

that whether wabag applicaiton shud be withdrawl or not ???????

Just received an SMS from HDFC Securities saying SEBI has directed that all applicants can withdraw their applications. Further details are available at Customer Care of HDFC Securities. What are these details. Does any one know?

SKC

use this link for Va tech withdraw request. or

http://epaper.financialexpress.com/FE/FE/2010/10/05/INDEX.SHTML

go to page number : 11

today is last day

app withdraw karne ka TARIKA KYA HAI