Saturday, September 24, 2011

Onelife Capital Advisors IPO

It is very strange that amid all the volatility in the stock markets, there have been numerous IPOs in the last month or so. Not only that, the companies have managed to get subscription from investors - may be they are not over the top subscribed like it used to happen few months back. Another company, Onelife Capital Advisors (OCAL), a financial services company, is planning to tap the capital markets with its IPO of 33.5 lakh equity shares of Rs 10 each by diluting 25.07% stake. The company aims to raise Rs 33.50-36.85 crore through the issue.

Onelife Capital Advisors deals in investment banking services and portfolio management and equity broking services. The company is focused on nurturing small and medium sized enterprises (SME) companies to source capital in various forms. OCAL offers a range of services like initial public offerings, rights issue, buyback of shares, follow on public offering, qualified institutional placements, open offers and other equity linked financing.

The IPO shall open on 28 September and shall close on 4 October, 2011. The company has fixed a price band of Rs 100-110 per share. Bids can be made for a minimum of 50 equity shares and in multiples of 50 shares thereafter.

The company plans to utilize the proceeds of the IPO for purchasing of corporate office at Mumbai (with cost of Rs 7 crore); development of portfolio management services (at cost of Rs 11.58 crore); and brand building activities (with cost of Rs 7.7 crore).

Atherstone Capital Markets Limited is the book running lead manager to the issue. Sharepro Services (India) Pvt Ltd is the registrar to the issue.

Recommendation:
CARE has assigned Grade 1 to the IPO indicating below average fundamentals. We would not recommend this IPO to investors.

Subscription:
Onelife Capital IPO managed to get 1.53 times subscribed at the close.

At the close of the IPO,
QII segment got subscribed by 1.02 times
NII segment got subscribed by 0.93 times
Retail segment got subscribed by 2.50 times

Allotment:
Click here to check Onelife Capital IPO Allotment status!

Listing:
Onelife Capital Advisors IPO got listed on 17 October, 2011. The share touched an intra-day high of Rs 174.80 on the NSE before closing at Rs 145.95, a premium of 32.68% over issue price of Rs 110 a share.