Sunday, November 25, 2007

Edelweiss Capital IPO subscribed 13.79 times on penultimate day

Initial public offering of Mumbai-based financial services provider, Edelweiss Capital (ECL) received 13.79 times subscription on penultimate day. It received 115.68 million bids as against issue size of 8.38 million shares. A total of 3.31 million bids were received at the cut off price.

The issue is open till November 20. The price band has been fixed between Rs 725 to Rs 825 a share. The issue would constitute 11.19% of the post issue paid-up capital of the company. Shares of the company, offered through this IPO, are proposed to be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Kotak Mahindra Capital, Citigroup Global Markets India and Lehman Brothers Securities will help the company to raise maximum of Rs 6,918.57 million via this equity issue.

CRISIL assigned a CRISIL IPO Grade,`4/5` (pronounced `four on five`) to the proposed initial public offer of Edelweiss Capital (ECL). This grade indicates that the fundamentals of the issue are above average, relative to other listed equity securities in India.

Incorporated in 1995, ECL is a diversified financial services company in India promoted by Rashesh Shah and Venkatchalam Ramaswamy. The company is predominantly engaged in institutional equities broking, investment banking and proprietary arbitrage trading activities. It also has a small presence in insurance broking, asset management and investment advisory services, wealth management and wholesale financing activities. As of September 2007, the company had over 150 institutional investors actively doing business. It had more than 5,000 active accounts under private client brokerage, which offers brokerage and advisory services to high networth and other individuals through 38 offices in 19 cities as of September 2007.

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