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- By Parinda News Bureau, December 27, 2006, 12:45 IST
The allotment of Cairn India (CIL) shares in its recent IPO could be delayed.
The registrar to CIL’s IPO, Intime Spectrum Registry (ISRL) has been restrained by a court in Kolkata from signing any new contract or acting in furtherance of any contract after August 18, 2006.
CIL is expected to file its basis of allotment with the Registrar of Companies (RoC) on December 29, 2006 and make its debut in BSE in January.
ISRL is expected to file a petition in the Supreme Court seeking a stay on the courts order so that the process of share allotment of Cairn’s IPO can go througns smoothly. Merchant bankers believe this is a regulatory issue.
The court order of December 21, 2006, comes in wake of a suit filed by MCS Ltd, a share registry firm, where MCS has alleged non-compliance of agreement by ISRL that it entered with MCS.
Cairn had raised $1.18 billion from its IPO, which closed on December 15, at the lower end of its price band of Rs 160 per share. The issue didn't get a very enthusiastic response from investors, especially in the retail segment because it wa seen as being over valued and there were concerns about upliftment of the crude oil in Rajasthan.
At issue price it would have a market capitalisation of $6.32 billion. Cairn Energy will also have to return around Rs 350 crore to the private equity investors for the pre-IPO placement done at Rs 176 per share.
The company is expected to list sometime this week and brokers say it may dip below issue price on the listing dayitself.
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