MOIL (Manganese Ore) IPO on November 26

MOIL (Manganese Ore) IPO on November 26
The retail investors had never had so good Following the huge success of Coal India and Power Grid two more offerings from government stable hits the market next week MOIL is out with an IPO on November 26, 2010 and Shipping Corporation of Indi on November 30, 2010 Though both the issues are opening in the same week and will overlap with each other, the lead managers to the issues are confident of the two issues being oversubscribed as there is an insatiable interest among the investing community for the new issues in the primary market, especially from PSUs. .
MOIL's is entering the market for the first time and 3.3-crore shares are offered to the public and opens on November 26 and will close for institutional bidders on November 30 and for other investors on December 1. And SCI's 8.4-crore fresh or follow on public offering will open on November 30 and close on December 2 for institutions and December 3, 2010 for the retail and HNI categories.
The retail investors upper cap is at the enhanced limit of Rs 2 lakhs in addition to the 5 percent discount to the retail investors. This should be in the form of new year gift from the PSU if listing of earlier issues is any indication Foreign Institutional Investors (FIIs) and domestic institutional investors have an appetite especially for the PSU scrips.
There are a number of l PSUs from the government stable which are to enter the capital market this fiscal for the divestment program of the Government with almost atleast one offering every month, according to an official in the Ministry of Divestment. ““All the stakeholders have agreed to the dates that have been fixed, even though the SCI and MOIL dates overlap, the call is that there is enough appetite in the markets to make both the issues a success.”
The number of different types of investors includes those for IPOs and FPOs. The book running lead managers to MOIL are IDBI Capital, Edelweiss Capital and JP Morgan India, .while that for SCI, FPO it is SBI Capital Markets, ICICI Securities and IDFC Capital.
After the above 2 issues other IPOs and FPOs from the PSU divestment is in Hindustan Copper which is opening on December 6, 2010 and yet to follow FPOs include from SAIL, ONGC and IOC during the current fiscal.
The book running lead managers to the issue, also feel that there is enough investor interest for IPOs and FPOs to get it oversubscribed several times. Investors can apply for the issues under ASBA. According to market sources there has been a tremendous increase in the number of demat accounts opened with banks for applying for the above IPO and FPO.