PREDICTIONS ABOUT THE FPO

POSITIVE GLOBAL SCALE STRONG POSITION IS EUROPEAN & INDIAN MARKET DIVERSIFIED PRODUCTS ECONOMIES OF SCALE & COST REDUCTIONS EXPERIENCED MANAGEMENT TEAM NEGATIVE STEEL INDUSTRY IS EFFECTED BY GLOBAL ECONOMIC CONDITION STEEL INDUSTRY IS HIGHLY CYCLICAL OPERATES IN GLOBAL BUSINESS & FINANCIAL ENVIRONMENT

TYPES OF MARKET
PRIMARY MARKET - RIGHT ISSUE - IPO (INITIAL PUBLIC OFFER) - PREFERENTIAL ISSUE SECONDARY MARKET

FPO ( FURTHER PUBLIC OFFER )

ALSO KNOWN AS FOLLOW-UP PUBLIC OFFER IT IS THE CONSEQUENT ISSUE TO THE PUBLIC AFTER IPO IT IS OF TWO TYPES - DILUTIVE OFFERING - NON-DILUTIVE OFFERING

REGULATORY REQUIREMENTS
IF COMPANY CHANGES NAME & COMES OUT WITH AN FPO SIZE OF THE ISSUE SHOULD NOT BE MORE THAN FIVE TIMES THE PRE-ISSUE NET WORTH EXCEPTIONS: A GROUP OF COMPANIES, PRIVATE & PUBLUC SECTOR BANKS, INFRASTRUCTURE COMPANIES FINANCED BY PUBLIC FINANCIAL INSTITUTIONS, IDFC, IL&FS PROMOTER MUST CONTRIBUTE AT LEAST 20% OF THE ISSUE SIZE

TATA STEEL
ESTABLISHED IN 1907 FOUNDER J N TATA 1ST INTEGRATED STEEL PLANT IN ASIA WORLD S 2ND MOST GEOGRAPHICALLY DIVERESED STEEL PRODUCER PRESENCE IN OVER 50 EUROPEAN & ASIAN MARKETS MANUFACTURING UNITS IN 26 COUNTRIES

REASONS FOR FPO

Rs. 1800 FOR THE EXPANSION OF ITS PLANT IN JAMSHEDPUR Rs. 1000 Cr. FOR THE REPAYMENT OF DEBTS OTHER GENERAL CORPORATE PURPOSES TO BALANCE THE DEBT:EQUITY = 1:1 FROM PRESENT 1:1.15 WITHIN 12-18 MONTHS

FPO OF TATA STEEL

1ST FPO LAUNCHED ON 19TH JANUARY 2011 AFTER 6 YEARS OF GAP FROM ITS IPO FACE VALUE PER SHARE OF Rs. 10 WAS CLOSED ON 21ST OF JANUARY FOR ANCHOR INVESTOR S IT WAS OPENED ON 18TH OF JANUARY DILUTED 5.94% OF THE EQUITY & OFFERED 57 MILLION SHARES

Cont..
AS PER SEBI NORMS : - 50% WAS OFFERED TO QIBs - 15% FOR NON-INSTITUTIONAL BUYERS - 35% FOR THE RETAIL BUYERS

BANKERS OF THE ISSUE

KOTAK MAHINDRA BANK CITI BANK DEUTCHE BANKS AG ROYAL BANK OF SCOTLAND SBI CAPITAL MARKETS STANDARD CHARTERED BANK HSBC BANK

THE REGISTRAR TO THE ISSUE WAS LINK INTIME INDIA PVT LTD.

RESPONSE TO THE FPO

ISSUE WAS OVERSUBSCRIBED BY 5.97 TIMES GENERATING THE DEMAND WORTH Rs. 17, 726.6 CRORES QIBs SUBSCRIBED BY 0.67 TIMES RETAIL INDIVIDUAL- SUBSCRIBED BY 0.20 TIMES

THE CONTROVERSY
AT THE SAME TIME CAME THE FPO OF SAIL BOTH WERE FROM THE SAME INDUSRTY FOUR OF THE BANKERS WERE SAME SO, INSPITE OF BEING AWARE OF THE FACT THAT THERE COULD BE A COFLICT OF INTEREST WAS NOT ETHICAL FROM THE BANKERS SIDE