"The IPOs of such small and mid cap companies cannot be taken as a trend setter for the Indian capital markets. In such market situations, any company coming out with IPO means it is in dire need for funds," Nexgen Capitals equity head Jagannadham Thunuguntla had said.

1. Gemini Engi-Fab withdraws IPO plan
Published: February 2,2009
Mumbai , Feb 2 Gemini Engi-Fab today said its public issue of Rs 45 crore, which was
scheduled to begin tomorrow, has been cancelled.
In a filing to the Bombay Stock Exchange Almondz Global Securities, the lead manager
to the issue, said the proposed IPO which was scheduled from February 3 to February 6
now stands cancelled.
Gujarat-based Gemini had last month said it would hit the capital market with a public
issue of 55 lakh equity shares at a price band of Rs 75 to Rs 80 per share.
The proposed issue of the company would have broken the four months of lull of IPO
activities in the Indian capital market, which is facing the pressure of liquidity crunch.
Marketmen said the cancellation of the IPO was on the expected lines in anticipation of a
muted kind of a response from investors as there is no appetite for investment.
quot;The IPOs of such small and mid cap companies cannot be taken as a trend setter for the
Indian capital markets. In such market situations, any company coming out with IPO
means it is in dire need for funds,quot; Nexgen Capitals equity head Jagannadham
Thunuguntla had said.
Gemini Engi-Fab is engaged in manufacturing and salvaging of process equipment
through fabrication for various process industries such as cement, dairy, refinery,
pharmaceutical, petrochemical, power and chemical.
The company had planned to utilise the issue proceeds to part-finance expansion plan of
setting up a new manufacturing workshop at Umbergaon in Gujarat with a total
investment of Rs 49.84 crore
Source: PTI