Indian IPO

All details about Hot Indian Primary Market.

Wednesday, November 30, 2005

Upcoming Good IPOs

Following are some of good IPOs of hot sectors, subscribe to get positive listing gains.

1. Punj LLoyd
2. PVR
3. Royal Orchid
4. ICICI Bank
5. Entertainment Network India Ltd(ENIL - Radio Mirchi)
6. Tulip IT
7. INOX Leisure
8. SRS Entertainment
9. Sadbhav Engineering

ICICI Bank fixes a price band of Rs 505-545 for its IPO

ICICI Bank has fixed a price band of Rs 505-545 for its public issue. It has been a smart move on the part of the bank. They know that with 73% the foreign holding in the bank, the stock would really be lapped up by FII. For the retail investor, who wants some discount, they have given 5% discount.

ICICI Bank has fixed a price band of Rs 505-545 for its public issue.
It has been a smart move on the part of the bank. They know that with 73% the foreign holding in the bank, the stock will be lapped up by the FIIs.
Hence, they have put a slightly higher than expected price. Rs 545 is the higher end of the band and is reasonably higher than most analysts' expectations.

For the retail investor, who wants some discount, they have given 5% discount. So the retail band would be between Rs 480 to Rs 520.
At that price, ICICI bank will trade at just about two times one-year forward book. By pricing it slightly higher they have also boosted the book value.

Andhra Bank files draft RHP with Sebi for public issue

Andhra Bank has filed the draft RHP with Sebi for public issue of 8.5 crore shares. It plans to hit the market in second week of January.

Andhra Bank has filed the draft RHP with Sebi for public issue of 8.5 crore shares. It plans to hit the market in second week of January. Its issue price may be at 5% discount to CMP.

Today, the stock closed at Rs 92.80, with volumes of 1,66,898 shares. It touched an intraday high of Rs 95.60 and an intraday low of Rs 92.10.

ICICI Bank to go up sharply post issue

Ajay Srivastava of Dimensions Consulting feels that ICICI Bank is a wonderful story, terribly undervalued at this point of time and is going to go up quite sharply post issue.

Ajay Srivastava of Dimensions Consulting feels that ICICI Bank is a wonderful story, terribly undervalued at this point of time and is going to go up quite sharply post issue. He also says that it will give wonderful returns over the next one year.

Srivastava told CNBC-TV18, “Regarding the pricing it is not very clear. They have mentioned that there will be a 5% discount for the retail shareholders or retail applications, which means at top-end of Rs 540 one is talking about Rs 510-515 price band for the retail person. But if you are asking if the share should be bought then it is a wonderful story, terribly undervalued at this point of time and is going to go up quite sharply post the issue.”

Further, he added, “Even the last time same thing happened, the issue price was Rs 200; the market corrected itself to Rs 180 and then it shot up and has doubled the issue for some investors. We think the same thing will again happen with this issue because with the Rs 7000 crore in (Rs 70 billion) and its insurance company, mutual funds etc all businesses doing well, I think it is a great story happening there and one may not get profit immediately tomorrow morning and one may buy from the market at Rs 536 or Rs 535, which is price today if you are an HNI customer but as per me it is a good story and will give wonderful returns over next one year.”

ICICI Bank fixes price band for its FPO

ICICI Bank is coming out with Rs 5,000 crore issue with a greenshoe option of Rs 750 crore. Its issue price has been fixed at Rs 505-545.

ICICI Bank is coming out with Rs 5,000 crore (Rs 50 billion) issue with a greenshoe option of Rs 750 crore (Rs 7.50 billion). Its issue price has been fixed at Rs 505-545. The bank will offer 5% discount to retail investors.

At 10:45 am, the share is quoting at Rs 548, up Rs 11.60, or 2.16% on the BSE. It is trading with volumes of 1,10,881 shares. It has touched an intraday high of Rs 552.80 and an intraday low of Rs 539.85. Yesterday the share closed down 0.55% or Rs 2.95 at Rs 536.40

Centurion Bank set to raise Rs 800cr fresh capital

Centurion Bank of Punjab today decided to raise Rs 800 crore of capital through a combination of preferential allotment and an international or a domestic issue of equity.

Centurion Bank of Punjab, CBP, today decided to raise Rs 800 crore (Rs 8 billion) of capital through a combination of preferential allotment and an international or a domestic issue of equity, reports Business Standard.

The bank’s board of directors have approved to raise Rs 384 crore (Rs 3.84 billion) through a preferential issue of equity to funds managed by GW Capital, ChrysCapital and Citigroup Venture Capital International Growth Partnership Mauritius. The preferential allotment will be made at Rs 19.25 per equity share.

Another Rs 416 crore (Rs 4.16 billion) will be raised through issue of fresh equity in the domestic or international market. The bank has proposed to make preferential allotment of 70 million equity shares each to funds managed by GW Capital and its affiliates and nominees and ChrysCapital.

It would allot another 59 million equity shares to funds managed by Citigroup Venture Capital International Growth Partnership Mauritius for a consideration of Rs 114 crore (Rs 1.14 billion).

CBP’s Managing Director, Shailendra Bhandari, said, “When we raised Rs 600 crore (Rs 6 billion) last year followed by an ADS issue of Rs 300 crore (Rs 3 billion), we had said that it is for funding our organic growth. Subsequently, we had an inorganic transaction. Hence we perceive the need for future organic and inorganic growth in the coming quarters.”

He, however, said “Although, we have not evaluated any target for acquisition, we are always open to inorganic route for growth.”

The bank’s capital adequacy after the fresh capital raising plans would increase to 17-19% from the current 10.92%. The bank’s capital adequacy has fallen from 21.42 at the end of March 2005 due to the impact of the merger.

The bank said the capital raising will provide an impetus to accelerate growth in loan assets over the ensuing quarters. The bank will convene an extra-ordinary general meeting of its shareholders on December 24, 2005 to consider the above capital raising proposals. Ambit Corporate Finance PTE and SSKI are the financial advisors to the preferential allotments.

Centurion Bank of Punjab has been created from the merger of Bank of Punjab with Centurion Bank with effect from October 1, 2005. The operations of the two banks have been integrated across their entire networks.

The merged entity has decided to put in place a common system and go in for a phased migration to ensure minimum disruption of customer service and operations.

Tuesday, November 29, 2005

Ramsarup to come out with IPO of Rs 30cr

Kolkata-based Ramsarup Group, a leading player in the steel wires market, will come out with an IPO of Rs 30 crore as part of its Rs 120 crore modernisation-cum-expansion plan.

Kolkata-based Ramsarup Group, a leading player in the steel wires market, will come out with an initial public offer of Rs 30 crore (Rs 300 million) as part of its Rs 120 crore (Rs 1.20 billion) modernisation-cum-expansion plan, report agencies.

The IPO comprises public offer of 50 lakh equity shares of Rs 10 each at a premium of Rs 50 per equity share.

The total issue is pegged at Rs 71.5 crore (Rs 715 million), it said, adding Rs 41.15 crore (Rs 411.5 million) would be contributed by the promoters.

It has bagged the Sebi nod for the issue, the company said in a release today without specifying the timeline.

The company would also raise Rs 45.5 crore (Rs 455 million) term loan from banks and financial institutions including banks and infuse Rs 3.37 crore (Rs 33.7 million) from internal accruals in order to meet capital requirements for expansion plan.

Ramsarup Group would invest Rs 67.36 crore (Rs 673.6 million) for setting up of a structural mill and Rs 9.5 crore (Rs 95 million) for moderniastion and expansion of TMT plan.

It is also looking at down stream integration into the electricity transmission tower business, it said.

Punj Lloyd fixes price band for IPO, to raise upto Rs 642cr

Engineering major Punj Lloyd today fixed the price band for its initial public offer at Rs 600-700 to raise upto Rs 642.105 crore from its forthcoming issue.

Engineering major Punj Lloyd today fixed the price band for its initial public offer at Rs 600-700 to raise upto Rs 642.105 crore (Rs 6.42 billion) from its forthcoming issue. The price is to be determined through a 100 per cent book building process, report agencies.

The company today filed the red herring prospectus with the Registrar of Companies, Punj Lloyd said in a release.

The issue would constitute 17.57% of the fully diluted post offer paid up equity capital of the company.

The issue comprises an offering of 91,72,937 equity shares of Rs 10 each, comprising a fresh issue of 83,55,174 equity shares and including an offer for sale of 8,17,763 equity shares.

In the issue, 1,00,000 equity shares have been reserved for subscription by permanent employees and directors of the company.

Of the balance, at least 60% will be allocated on a proportionate basis to qualified institutional buyers, upto 10% to non-institutional bidders on a proportionate basis and upto 30% to retail investors.

Punj Lloyd intends to use the net proceeds of the fresh issue to repay debt, purchase capital equipment for various projects, project related investments and for some general corporate purposes.

ICICI Securities, Citigroup, DSP Merrill Lynch and Kotak Investment Banking are the book running lead managers to the issue.

ABG Shipyard fixes issue price for its IPO

ABG Shipyard, which entered the capital market on November 18 with 85 lakh equity shares, has fixed the issue price for its IPO at Rs 185.

PVR Limited IPO Opens December 8 Closes on 14

PVR Cinimas IPO Opens December 8 Closes on 14

Multiplex operator PVR has set a price band for its initial public offer at Rs 200-240 a share aiming to raise upto Rs 1.85 billion.

Peninsular Capital plans Rs 250-300cr IPO in a year’s time

Kochi-based Peninsular Capital Market has announced its plans to 'double' its network, customers and trading base before going public in 2007. Chairman T S Anantharaman has said that the company will plan for the IPO in a year's time, which is likely to be around Rs 250-300 crore.

Amid spurt in the stocks and futures trading countrywide, Kochi-based Peninsular Capital Market opened yesterday its Regional Office in Hyderabad and announced its plans to 'double' its network, customers and trading base before going public in 2007, report agencies.

The company is in talks with financial institutions, merchant bankers and investors over private placement of Rs 15-20 crore (Rs 150-200 million) in 2006 which was expected to be finalised over the next 2-3 months.

''After the amount is fully absorbed and invested we will plan for the IPO in a year's time likely around Rs 250-300 crore (Rs 2.50-3 billion)'', company Chairman T S Anantharaman said.

Ahead of its IPO, the company planned to increase to 500 its branches including 100 of its own from 240 branches under own and franchise at present.

Being a member of the National and Bombay Stock Exchanges, a Despository Participant of the National Securities Depository, all the three Online Commodity Exchanges and Dubai Gold and Commodities Exchanges, it planned to increase over the next two years its customer base to around one lakh from its existing 50,000.

Over the next two years it also targeted to manage Rs 100 crore (Rs 1 billion) in its Portfolio Management Scheme, catering to expatriates.

After investing Rs 3 crore (Rs 30 million) to open an office at Dubai, it also planned to open offices at Abu Dhabi, Sharjah and Doha during the year.

Though it has lincese to operate in the UAE, it is also looking at Saudi Arabia, Kuwait and other Gulf countries to expand its operations abroad.

GSPC & Guj State Petronet IPO probably next year: Patel

The Gujarat government has formed a high-powered committee, which would look into the privatisation aspect of the state-owned units. Gujarat State Industry Minister Anilbhai Patel said that the government was planning to float IPO for two joint venture companies, Gujarat State Petroleum Corporation and Gujarat State Petronet probably next year.

The Gujarat government has formed a high-powered committee, which would look into the privatisation aspect of the state-owned units, most of which were making huge profits, State Industry Minister Anilbhai Patel said, report agencies.

Patel said the Gujarat government was not against privatisation. However, privatisation, he said, would not be carried out "for the heck of it."

Patel said the government would take a view on it only when the panel submitted its report.

Meanwhile, the government was planning to float initial public offers, IPO, for two joint venture companies, Gujarat State Petroleum Corporation, GSPC, and Gujarat State Petronet, probably next year, he said.

Of the 20-odd state-owned units in Gujarat, the few loss-making ones were mainly in the public utility service areas.

The industry minister is in the state to woo investments from local industrialists in Gujarat, which is poised to register highest rate of growth among all states in India.

Fortis Healthcare plans IPO next year

Ranbaxy Group company Fortis Healthcare yesterday said it was planning an initial public offer, IPO, next year for raising capital from the market to fund its expansions.

Ranbaxy Group company Fortis Healthcare yesterday said it was planning an initial public offer, IPO, next year for raising capital from the market to fund its expansions, report agencies.

"We are working on expansion plans, which would be funded by raising capital from the market through an IPO next year," Joint Managing Director Shivender Mohan Singh said on the sidelines of India Economic Summit.

He, however, declined to comment on the timing of the IPO.

Asked how much of fund the company was looking to raise from the market, Singh said "the company has not yet finalised on any numbers and it would depend on the company's plans."

On the expansion plans, he said the company has hired consulting firm McKinsey to study the company's future growth path and assess funding requirements in the next three to five years.

After acquiring Escorts Heart Institute and Research Centre from Rajan Nanda's Escorts, Fortis had expressed intention to complete its Jaipur hospital, the work on which has been stalled due to paucity of funds.

Triveni Engineering fixes issue for its public issue

Triveni Engineering & Industries, which entered the capital market on November 18 with a public issue of 5 crore equity shares of Rs 1 each for cash in a price band of Rs 42-50, has fixed the issue price at Rs 48.

Triveni Engineering & Industries, which entered the capital market on November 18 with a public issue of 5 crore equity shares of Rs 1 each for cash in a price band of Rs 42-50, has fixed the issue price at Rs 48. The issue was subscribed 10.37 times.

The issue constituted 19.39% of the fully diluted post issue paid-up capital of the company.

The company appointed JM Morgan Stanley and ICICI Securities as the book running lead managers to the public issue.

The equity shares of the company are proposed to be listed on the BSE and NSE.

Dainik Jagran plans Rs 300cr IPO by March 2006

The publisher of Dainik Jagran, India's largest-selling Hindi language newspaper, is planning to raise about Rs 300 crore (Rs 3 billion) (USD 65 million) in an initial public offering by March 2006, sources close to the deal said on Monday.

The publisher of Dainik Jagran, India's largest-selling Hindi language newspaper, is planning to raise about Rs 300 crore (Rs 3 billion) (USD 65 million) in an initial public offering by March 2006, sources close to the deal said on Monday, reports Reuters.

The paper is published by Jagran Prakashan Private, JPPL, from more than 25 centres in north and central India and has a total circulation of more than 2 million copies daily.

Irish publisher Independent Newspaper & Media Plc holds 24% of JPPL, which it acquired early this year for Rs 1.5 billion. The balance is held by the founders, the Gupta family.

JPPL hopes to use the funds to upgrade printing facilities and finance new business plans in outdoor media advertising, and event management, the sources said.

The outdoor media foray will include mobile advertising with hoardings mounted on vans as advertisers try to extend their reach into rural India, they said.

The print media in India is expected to expand on the back of increased advertising revenue and growing readership. Print advertising revenues grew 15% in 2004 to Rs 54 billion.

Hindi is widely spoken in north and central India and Hindi language newspapers expect to benefit from the rising media spend by companies, riding on booming consumption as the Indian economy expands by about 6.5-7% per year.

Other listed Indian newspaper publishers are HT Media, Deccan Chronicle Holdings, Sandesh and tabloid publisher Mid Day Multimedia.

Mallya to raise $400 mn; Kingfisher Airlines IPO in 2006

UB Group Chief Vijay Mallya today said the Group would raise a total of USD 400 million over the next one year, which includes an IPO for its aviation business, Kingfisher Airlines.

UB Group Chief Vijay Mallya today said the Group would raise a total of USD 400 million over the next one year, which includes an IPO for its aviation business, Kingfisher Airlines, report agencies.

"The IPO Kingfisher Airlines will be coming next year and we intend to raise USD 200 million through this," Mallya said on the sidelines of the World Economic Forum.

On the spirit business he said the company would be raising USD 200 million, which would be used for reduction of debt raised for purchasing Shaw Wallace and Company, as well as for funding the merged spirits entity 'United Spirits'.

"We expect to complete this by March 2006 and have a variety of options in front of us including going in for private equity placement or FCCBs," Mallya said.

On the company's bid for Air Sahara, he said they had submitted their valuation, "which is less than the USD 750-1000 million estimated valuation done by Ernst & Young."

Regarding Air Sahara he said Kingfisher Airlines was open to a variety of options including a complete buyout, a stake in the company or going in for an alliance.

Tejas Networks plans IPO

Tejas Networks, the USD 25 million Bangalore-based firm building next-generation optical networking products, plans to go for an initial public offer over the next 6-8 quarters.

Tejas Networks, the USD 25 million Bangalore-based firm building next-generation optical networking products, plans to go for an initial public offer over the next 6-8 quarters, reports Business-Standard.

The company, which is establishing itself in the global telecom hardware market by supplying optical transport products that facilitate the building of efficient and high revenue generating networks for telecom service providers, plans to be at a topline of USD 80 million by then.

Sanjay Nayak, Co-founder and CEO, Tejas Networks confirmed the plan. “Certainly, we want to go in for a public offer. The timing however is still fluid. But, in the next two years this should happen,” he said.

Tejas’ products addresses the problem of efficiently aggregating or distributing bandwidth to the access/edge of the network and also enable telecom operators to build intelligent networks that can be easily managed.

The company, started in May 2000, has established itself in the highly-competitive Indian market, and has spread its reach globally to over 100 countries through strategic OEM partnerships with leading global equipment vendors. Thousands of Tejas’ systems are already carrying live, mission-critical traffic for leading operators around the world.

Tejas already supplies its boxes under its own brand to telecom customers in India, including the Tata group and public sector carrier Bharat Sanchar Nigam, which accounts for between 40% and 50% of Tejas’ revenues.

Tejas is a privately-funded company, backed by renowned investors like Gururaj Deshpande, Battery Ventures (USA), Intel Capital (USA), Sycamore Networks (USA) and IL&FS Investment Managers (India). The investment from these firm total some USD 30 million and the firm employs close to 300 professionals.

Sunday, November 27, 2005

Royal Orchid files prospectus with Sebi for IPO

Royal Orchid Hotels yesterday said that it has filed red herring prospectus with the Sebi for entering the capital market with an initial public offer.

Royal Orchid Hotels yesterday said that it has filed red herring prospectus with the Securities and Exchange Board of India, Sebi, for entering the capital market with an initial public offer, IPO, report agencies.

The company proposes to enter the capital market with an IPO of 68.20 lakh shares of Rs 10 each through a 100% book-building process, Royal Orchid said in a release.

The company, which manages a chain of hotels under the brand `Royal Orchid' in Bangalore and Mysore, plans to use the proceeds to expand its business in Pune, Hyderabad and Bangalore, it said.

ICICI Securities and SBI Capital Markets are the book running lead managers to the issue, it added.

Educomp plans an IPO in December

Educomp has made school teaching an interesting learning experience with the aid of computers. It is planning an IPO in December to reach out to more English medium schools.

Educomp has made school teaching an interesting learning experience with the aid of computers. It is planning an IPO in December to reach out to more english medium schools.


Kids have more interesting things to stare at than a boring black board. Four computers in each classroom will bring alive to them the lessons that they are taught. The students will be connected to a database which has all the lessons stored in them. Video clips, graphics and animated pictures are just a click away. They make teaching a learning experience.

It's great business for the company behind the concept. 62 schools have logged in and Educomp says it wants to enlist every single English medium school in the country.

Shantanu Prakash, CEO, Educomp said, "We go to every school and say that we will set up the computers, wire up the entire school provide all the content and they don't need to make any lump-sum repayment. Instead, every student pays a certain amount per month. We think every school will be interested in this concept."

The company charges Rs 150 a month from every student. It wants to cut this to Rs 100 to rope in more schools and students. Educomp has filed for an IPO in December to raise Rs 60 crore. Five years go, the Carlyle Group, a large private equity fund picked up a stake in the company which it sold earlier this year at a loss.

Shirt Company to set up a garment factory in New Bombay

The Shirt Company is coming with an IPO to fund its expansion plans. It is looking at raising Rs 50 crore through the issue. The company says that the money raised will used for putting up a very high tech garment factory in New Bombay.

The Shirt Company is coming out with an IPO to fund its expansion plans. It is looking at raising Rs 50 crore through the issue.

The company's Chairman Shivanand B Shetty says, "We are going to put up a very high tech garment factory in New Bombay, where we will have 150 thousand garments being manufactured in a month with high tech machinery."

Opto Circuits hopes to raise Rs 100cr through IPO

Opto Circuits is coming out with a public offer. The offer will be out either in the second week of December or mid January. The company is planning to raise Rs 100 crore through the public issue. The company says that it will be using the proceeds to fund its acquisition, expansion and R&D plans.

Opto Circuits is coming out with a public offer. The offer will be out either in the second week of December or Mid January.

The company is planning to raise Rs 100 crore through the public issue. The company says that it will be using the proceeds to fund its acquisition, expansion and R&D plans.

"We are hoping for Rs 100 crore. We are acquiring a company in Europe for Rs 60 crore. We also need some additional money for R&D and our own expansion," says CMD of Opto Circuits, Vinod Ramnani.

INOX Leisure files DRHP with Sebi for IPO

INOX Leisure has filed its draft red herring prospectus with the Sebi to enter the capital market with its initial public offer of equity shares.

INOX Leisure, which operates a chain of multiplexes at premium locations in 7 cities across India under the 'INOX' brand, has filed its draft red herring prospectus, DRHP, with the Securities & Exchanges Board of India, Sebi, to enter the capital market with its initial public offer of equity shares, according to a release.

The company proposes to enter the capital market with an offer of 1,65,00,000 equity shares of Rs 10 each for cash at a premium to be decided through the book-build process.

The offer consists of a fresh issue of 1,20,00,000 equity shares, of which 2,00,000 equity shares are reserved for allotment to employees of the company, and an offer for sale of 45,00,000 equity shares of Rs 10 each by Gujarat Fluorochemicals, the promoter of the company.

The net issue to public, exclusive of the reservation of employees, would be 1,63,00,000 equity shares. This will constitute 27.17% of the fully diluted post issue paid up capital of the company.

Of the net issue to public, 50% has been reserved for allotment to qualified institutional buyers, of which 5% is reserved for allotment to mutual funds; 15% to non-institutional investors and the balance 35% to retail investors on a proportionate basis.

INOX has been promoted by Gujarat Fluorochemicals, one of India's largest manufacturers and exporter of refrigerants. INOX was set up to carry out the business of setting up, operating and managing a national chain of multiplexes.

INOX has a wide presence with 8 operational multiplexes, with a total of 32 screens, across 7 cities - Mumbai, Pune, Vadodara, Goa, Jaipur, Kolkata (2 multiplexes) and Bangalore.

INOX now plans to expand its network with new multiplexes in Hyderabad, Chennai, Lucknow, Vishakapatnam, Raipur, Kolkata, Darjeeling, Bangalore and Jaipur.

In addition to these, INOX has also entered into an alliance with Pantaloon Group of companies, as a multiplex operator, to real estate developments which the Pantaloon group of companies and funds managed by it, are developing or otherwise associated with.

Compulink IPO

Compulink Systems's IPO opened today. It is an offer of around 45 lakh shares at a fixed price of Rs 60. However, analysts feel that this IPO is not a right choice for investment, if one looks at the financials of the company as per sale.

ABG Shipyard IPO subscribed 55.88 times

ABG Shipyard IPO closed today. Its price band was fixed at Rs 155-185. The issue has been subscribed 55.88 times. The QIBs portion has been subscribed 61.71 times.


ABG Shipyard IPO closed today. Its price band was fixed at Rs 155-185. The issue has been subscribed 55.88 times, as per the NSE website.

The QIBs portion has been subscribed 61.71 times. The non-institutional investors portion has been subscribed 121.94 times. The retail portion has been subscribed 26.61 times. The employee portion has been subscribed 0.59 time.

The company entered the capital market on November 18 with 85 lakh equity shares of Rs 10 each for cash at a premium to be decided through a book-built process.

The net issue to public constituted 16.3% of the post issue paid up capital. Of the total issue offer, the company reserved 200,000 equity shares to be offered to its employees.

Of the balance net issue offer, 60% of the issue were reserved for allotment to qualified institutional buyers on a discretionary basis and 10% was reserved for allotment to non-institutional buyers on a proportionate basis. The balance 30% of the net issue offer was to be allotted to retail investors on a proportionate basis.

The book running lead managers for the issue were IL&FS Investsmart and ICICI Securities.

The equity shares are proposed to list on The Stock Exchange, Mumbai.

Tulip IT Services IPO

Tulip IT Services, India’s fourth largest network integrator providing wireless-based connectivity solutions, today announced a price band of Rs 100-120 for its forthcoming initial public offer.


Tulip IT Services, India’s fourth largest network integrator providing wireless-based connectivity solutions, today announced a price band of Rs 100-120 for its forthcoming initial public offer, IPO, according to a press release.

The fresh issue of equity is for 90,00,000 equity shares of Rs 10 each for cash at a premium, at a price to be determined through the 100% book building process.

The price band indicates a premium of Rs 90 to Rs 110 for every Rs 10 paid-up equity share of Tulip. As per the price band, the floor price is 10 times the face value of the share while the ceiling price is 12 times the face value.

Of the total issue, 9,00,000 equity shares will be reserved for permanent employees of Tulip in India and its subsidiaries. The qualified institutional buyers, QIB, portion constitutes upto 50% of the net offer to the public. Not less than 15% of the net offer is reserved for allotment to non-institutional buyers, while the retail portion constitutes not less than 35% of the net offer to the public.

The proceeds of the IPO would be used for expansion of Tulip’s Internet Protocol/Virtual Private Network (IP/VPN) wireless business and to expand its network coverage to 130 cities of the Country.

The promoter’s holding in Tulip will come down to 68.97% from the current 100% after the IPO. The IPO will constitute 31.03% of the fully diluted post-issue paid-up capital, which will stand at Rs 29 crore (Rs 290 million).

Karvy Investor Services and Yes Bank are the book running lead managers to the IPO. Karvy Computershare is the registrar to the IPO.

Tulip recorded total consolidated revenues of Rs 342.2 crore (Rs 3.42 billion) in 2004-05, while the net profit stood at Rs 13.9 crore (Rs 139 million). In the first six months of the current year, Tulip reported a total income of Rs 195.8 crore (Rs 1.95 billion) and net profit of Rs 16.7 crore (Rs 167 million), which is more than that recorded in the previous full year (2004-05).

The equity shares will be listed on the Bombay Stock Exchange and the National Stock Exchange of India.

PVR sets price band for its IPO

Multiplex operator PVR has set a price band for its initial public offer at Rs 200-240 a share aiming to raise upto Rs 1.85 billion, a banking source close to the deal said yesterday.


Multiplex operator PVR has set a price band for its initial public offer, IPO, at Rs 200-240 a share aiming to raise upto Rs 1.85 billion (USD 40.4 million), a banking source close to the deal said yesterday, reports Reuters.

The company's 7.7-million-share, or 34% of the post-issue capital, offer is expected to open on December 8-14, he said.

The funds raised would be used to build cinemas in cities such as Hyderabad and Chennai that are seeing an outsourcing-led economic boom.

The IPO consists of 5.7 million new shares and sale of 2 million shares by private equity firm ICICI Venture Funds Management, which would hold 27% of the expanded capital.

ICICI Venture invested Rs 380 million in 2003, and now owns 47% of the company after a series of private share issues.

PVR, which began business in Delhi in 1997, is the largest operator of multiplexes in India with 39 screens in 10 cinemas, followed by privately owned Inox Leisure with 25 screens, the company said in its prospectus.

The funds raised from the offering would be used to more than double the total screens to 82, in 10 cinemas, by March 2008, it said.

PVR, which also has a films distribution division, posted a net profit of Rs 36.5 million on revenue of Rs 862.3 million for the year ended March 2005.

ICICI Bank likely to fix around Rs 600 as cap price for FPO

The higher end of the price band (cap price) for the forthcoming ICICI Bank follow-on public offering is expected to be pegged at around Rs 600.

The higher end of the price band (cap price) for the forthcoming ICICI Bank follow-on public offering, FPO, is expected to be pegged at around Rs 600. An indication of this was given by the book-running lead managers, BRLMs, while suggesting that retail bidders have been given the option of paying only 25% of the money at the time of application, reports The Financial Express.

The stock of ICICI Bank gained 2% on BSE on Thursday to end the day at Rs 538.50. On NSE, the stock gained 2.07% to close at Rs 538.85. In fact, according to the red herring prospectus filed with the market regulator one of the option offered to retail bidders is that they have to pay only Rs 150 per equity share at the time of application. The actual price band will be announced only on November 30, a day prior to the opening of the issue on December 1, 2005. The FPO will close on December 6, 2005.

The issue will be made through the book-building route, and up to 5% of the issue will be reserved for existing retail shareholders. Retail bidders, including existing retail shareholders, will be allotted shares at a price 5% lower than the issue price determined through the book-building process. This is the first primary offering from a private sector issuer, where retail investors will be alloted shares at a discount to the issue price.

The issue size of the offering in the domestic market is Rs 5,000 crore (Rs 50 billion). In addition, under the greenshoe option, the bank has the option to allocate additional equity shares up to Rs 750 crore (Rs 7.50 billion) and operate a price stabilisation mechanism post listing.