News from VC Circle:
Chennai-based BGR Energy Systems, a supplier of systems and equipment for the power, oil & gas, refinery, petrochemical and process industries, has raised Rs 194.4 crore ($49.2 million) from Citigroup Venture Capital International and Reliance Mutual Fund in a pre-IPO deal.CVCI has acquired 2.88 million shares at Rs 450, which translates into Rs 129.6 crore for a 4 per cent of the company. Reliance MF has taken 2 per cent (1.44 million shares) at the same price. The pre-IPO shares will have a lock-in of one year from date of allotment.BGR is present in seven lines of business namely power projects, captive power projects (<100>
Questions:
This publicly available information at the most opportune time of IPO(7th December to 12th December) which clearly shows the merit of the company that is big time investors like CVC and Reliance Mutual fund are interested to invest at 450 Rupees per share and lock in of one year is what the only relevant and meaningful information that should be available to retail investors, who based on such big time investment will invest in the IPO who's valuations are just unimaginable?
R there any SEBI regulations on this?
Is it right way of bringing information(concise(rather selective) information in public at most opportune time)? or there are further covenants to such investment which are not publicly stated?
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