Wednesday, February 10, 07:23 am IST
| Feedback
Moneycontrol » News Center » Business » Business News

Want news about Indiabulls Power to land in your mailbox?

Set an alert here

Morgan Stanley buys 21 lakh shares of Indiabulls Power

Published on Fri, Nov 06, 2009 at 10:25   |  Updated at Fri, Nov 06, 2009 at 10:27  |  Source : Business Line

The sole book running lead manager to the Indiabulls Power Ltd IPO of last month, Morgan Stanley, picked up a chunk of shares in the company on Thursday as a market-making exercise.

In the wake of falling share prices of the newly listed company, Morgan Stanley picked up 21.12 lakh IPL shares for Rs 7.2 crore at an average price of Rs 34.10 a share. This constitutes 4.15% of the greenshoe option of the IPO.

The stock listed at Rs 44.95, lower than the issue price of Rs 45 a share. The Rs 1,530 crore issue had closed on October 15.


“Market-makers have agreements with issuers to manage the price for a limited period after the issue is listed and for a fixed quantum of money. Such actions had taken place in the past too,” Mr R. Balakrishnan, an independent investment analyst, said.

A similar exercise had taken place in the case of the HDIL (Housing Development and Infrastructure Ltd) IPO, said Dr S. Subramanian, Head of investment banking at Enam Financial Consultants.

Morgan Stanley and IPL officials were not available for comment.

IPL’s Red Herring Prospectus said: “The issuer undertakes to provide market-making for at least two years from the date of listing of the securities.”
Taken from Business Line

CEO Wall See All

Harsh Manglik

Harsh Manglik

Chairman

Accenture India

Accenture India to hire aggressively for select verticals

Vishal Doshi

Vishal Doshi

Managing Director

Shrenju & Company

Shrenuj & Company will project 15% rev rise this yr

MP Taparia

MP Taparia

Chairman

Supreme Petrochemicals

Supreme Petrochemicals expects Rs 2200cr rev in next 1.5yrs

Vineet Nayyar

Vineet Nayyar

Chief Executive Officer

HCL Technologies

HCL Tech plans to merge arms with itself, eyes new spots

WHAT OTHERS LIKE
  • Most Read
  • Most Viewed
24 Hours
7 Days
1 Month
NEWS FROM OUR PARTNERS
©Network 18, 2010. All Rights Reserved