• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy
• Books
• Gallery

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Mumbai, Nov. 5

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 per cent 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.”

More Stories on : Power | Foreign Institutional Investors

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line