Indo Thai Securities Ltd IPO Oversubscribed!

THANKS FOR THE SUPPORT

IPO of Indo Thai Securities was subscribed 1.18 times on final day. It received total of 4.70 million against issue size of 4 million, of which 4.39 million were obtained at a cut-off price.

Indo Thai entered the capital market with a fresh issue of 4 million equity shares of Rs.10 each, in the price band of Rs. 70 to Rs. 80 a share, aiming to raise Rs. 280-340 million. The issue, comprising about 40% of the company`s post issue paid-up capital.

www.indothai.co.in

Cotton Association pegs almost 10% rise in cotton production in 2011-12

The Cotton Association of India (CAI) has estimated the cotton production in 2011-12 to be at 363.75 lakh bales of 170 kg each compared to last year’s production of 332.25 lakh bales on the back of favourable monsoon. The monsoon has been, by and large, normal throughout the cotton belt thereby pushing up the possibility of better yields. This year the crop is likely to surpass the acreage benchmark of 12 million hectares, a 10 per cent rise from the last year. CAI issued the forecast based on survey conducted by various traders, farmers and exporters by field supervisions.

The area under cotton is estimated to rise to around a record 120 lakh hectares this season. The projected balance sheet by the association estimates cotton supply at 425.50 lakh bales while the domestic consumption is pegged at 268 lakh bales, thus, leaving a surplus of 157.50 lakh bales. Though, total export is likely to remain unchanged at seven million bales during the ensuing season of 2011-12.

From the major producers, Maharashtra is likely to see three-lakh-bale rise in its production to 85 lakh bales while Andhra Pradesh’s output is pegged at 63 lakh bales up by 12 lakh bales from its previous year’s production of 55 lakh bales.

Meanwhile, the textile ministry has extended its export forecast for the current cotton year to seven million bales from the earlier restricted quota of 6.5 million bales. Looking to the bumper crop ahead the Association has urged the Government of India to extend the open general license (OGL) status for exports of cotton without any restrictions into the new season at the earliest in order to ensure continuity.

Source: www.indothai.co.in