News scoop – remember you got it here first!
It had to happen sooner or later.
For a long time “market knows the best” advocates have been advocating, what else, free market approach to everything under the sun. Management guru’s swear by market valuation mantra and would have us believe that in a free economy everything and anything should be left to find it right price in the market. Governments should keep their hands off in pricing of such matters. But we digress……
The latest grapevine is that on Friday, May 16th 2009, a new security is being listed on the National Stock Exchange (NSE) with trading symbol KURSI.
The move has caught many by surprise, although to cognoscenti it was but expected, that the management control in the new listing would be so keenly fought. It is rumoured that war chest (and bank accounts) are being filled up for the market buying frenzy that this listing is going to surely evoke. It is no wonder that many of the hopeful subscribers had declared their humongous assets to establish their reach early on.
All the news media have been accused of creating needless expectations of higher than normal valuation by conducting pseudo scientific analysis of who is going to get final allotment. Justifying the coverage media personalities have said “We also have to fill our stomachs and in any case IPL has gone to highest bidder!”.
Highlights:
The Issue:
A limited follow on public issue of this security was done recently by the promoters – Election Commission of India. This has been the most sought after security and there was over subscription many times over as there were 8070 applicants for only 543 shares! The issue had remained open for subscription from April 16 to May13.
The listing:
The application money deposit work is over now (except for one remote region of Zanskar, in J&K) and list of successful applicants would be out on Friday, May16. The stock exchange authorities have confirmed that they have waved off many regulations to ensure that listing would be done on the same day itself.
Although some of the applicants, especially from states of Bihar and J&K, have been alleging irregularities in the process and are likely to voice their grievances to SEBI. Insider sources tell us that these are likely to be dismissed and all hogwash.
There are unconfirmed reports of kerb side trading already taking place.
Terms of purchase:
The security can only be purchased strictly for cash or power (cash in bigger terms). No other form of payment is acceptable.
Market period:
While most of the trades are expected to close within a week or ten days, the market is likely to remain open and active till the next issue.
Viva le FREE MARKET!!
