Indian IPO

All details about Hot Indian Primary Market.

Saturday, December 31, 2005

Publisher of Dainik Jagran plans IPO by Jan

Jagran Prakashan, JPL, publishers of the country's highest circulated newspaper Dainik Jagran, would be coming out with their IPO, likely January, reports The Hindu Business Line.

A portion of the proceeds would be earmarked for acquisitions and joint ventures in the media business, for which JPL already has a board-appointed committee examining the subject.

The 26% equity stake in JPL, which Independent News & Media PLC acquired in June for Rs 150 crore (Rs 1.50 billion), would drop to 20% after the IPO. But the Irish company has agreed to stay locked in at a minimum 75% of that 20% for the next three years, senior JPL officials said.

JPL's requirement of funds for newly stated plans exceeds Rs 300 crore (Rs 3 billion). The eventual IPO size won't be limited to this figure; that depends on inflows through the book building process.

According to Mahendra Mohan Gupta, CMD & Managing Editor and R.K. Agarwal, Chief Financial Officer, the company envisages capital expenditure of Rs 137 crore (Rs 1.37 billion) for the next two years, including outlay for a second brand of newspaper from strong edition centres of Dainik Jagran. The second paper would tap the advertising potential of those who cannot afford the rates quoted by Dainik Jagran.

Against the average 20-page size of the main paper, the second brand could be a cheaper 12-page strong product. "We have not yet decided the number of locations from where the second brand would be printed," Gupta said. Part of cited business viability for the second brand stems from ongoing expansion and upgrading of JPL's printing infrastructure. It wants more colour pages in Dainik Jagran and with such facilities in place, the second brand gets an easier, cost effective ride to the market.

Dainik Jagran has 28 editions and a circulation of 2.4 million copies. Currently, JPL, which also does job printing, has stretched its capacity. It out-sources the printing of its own magazine Sakhi. Rs 110 crore (Rs 1.10 billion) from the equity sale to Independent News & Media PLC is being used to upgrade printing facilities (the promoters got Rs 40 crore (Rs 400 million) from that transaction).

Agarwal said, a part of the Rs 137 crore (Rs 1.37 billion) capex would also go towards reducing operating costs (like less newsprint wastage), higher automation and improved efficiency. Besides this capex, Rs 40 crore (Rs 400 million) would go for working capital needs and another similar amount for JPL's outdoor activity/event management business. The kitty for acquisitions and joint ventures was Rs 80 crore (Rs 800 million).

The idea, Gupta said, was to explore synergies with the many newspapers and magazines around that have a good product but not the marketing infrastructure to sell. "We are talking with them," he said. Options would be to buy brands, float joint ventures or have deals wherein a portion of revenue generated accrues to JPL for providing its infrastructure. Herein, the company was also open to media other than print; it was willing to look at non-Hindi entities and foray outside its traditional north Indian geography.

Notwithstanding willingness to explore domestically, JPL had no plans for overseas editions, something it could study given the equity held by Independent News & Media. "We have no such plans," Gupta said. But both he and Agarwal were open to more job printing assignments should capacity permit. Asked if the foreign equity stake, job printing business and upgrading of infrastructure, hinted at foreign brands also being printed by JPL, Agarwal said, "that is quite far fetched."

JPL with revenues of Rs 228 crore (Rs 2.28 billion) at end September 2005 hopes to have a turnover of Rs 475 crore (Rs 4.75 billion) by financial year-close. In FY05, it had revenues of Rs 377 crore (Rs 3.77 billion).

Union Bank plans to raise Rs 500cr by February

Union Bank of India plans to raise Rs 500 crore (Rs 5 billion) through a follow-on public issue of equity shares before the end of February 2006, reports Business Standard.

The equity issue is part of the Rs 2,000 crore (Rs 20 billion) total capital requirement the bank has envisaged over the next three years, said K Cherian Varghese, Chairman, Union Bank, today.

“Going by the current market price of the bank’s shares, we will be able to raise around Rs 500 crore (Rs 5 billion),” Varghese said. Union Bank shares closed at Rs 116.05, up 1.49% from yesterday’s close.

The government stake in Union Bank will fall to 55.43% after the public issue from 60.85% now.

The total capital requirement includes Tier-I capital of Rs 1,200 crore (Rs 12 billion) and the remaining in the form of Tier-II capital.

The bank has already filed a draft prospectus with the Securities and Exchange Board of India, Sebi. “We will hit the market within two weeks after receiving Sebi clearance,” Varghese said.

He said the bank’s capital adequacy would increase to about 12% after the issue and the bank would like to maintain the capital adequacy ratio at the same level all through.

The impact of implementation of Basel II capital adequacy norms will be in the range of 0.60-0.75%.

Varghese said the 33% growth in credit till September 2005 continued in the quarter ended December 2005. The same was the case with deposits, which grew at 23%.

The bank has made a beginning at selling non-performing assets, NPAs, with a test sale of Rs 8 crore (Rs 80 million) bad loans to Asset Reconstruction Company India, Arcil.

The bank has also discontinued the practice of lending short-term loans at rates linked to Mumbai inter-bank offered rates, Mibor. “We have now decided to go in for long term, high-yielding loans,” Varghese said.

Friday, December 30, 2005

Gitanjali Gems plans IPO

The jewellery sector is hotting up on the expectation of good Q3 results. Gitanjali Gems is coming out with an IPO. The company plans to make an entry into the retail sector. It also intends to upgrade its existing manufacturing capabilities.

The company has tied up with Provogue for its retail expansion. Going forward, it plans to get into more tie-ups of such nature.

“There will be more tie-ups as we go along. Today we are at 600 odd outlets. We intend to expand it to 1000 - 1500 in one-and-a-half year time because that’s the way we will be able to reach to more and more customers and retail clients,” says the company’s Director, GK Nair.

Tuesday, December 20, 2005

A quick look at Celebrity Fashions IPO

Celebrity Fashions entered the capital market on December 19 with an IPO of 45,50,000 equity shares of Rs 10 each.

Its price band has been fixed at Rs 160-180 per share. The issue closes on December 22, 2005.

The issue constitutes 25.35% of the fully diluted post issue paid-up capital of the company.

The book running lead manager for the IPO is IL&FS Investsmart.

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

A quick look at Celebrity Fashions IPO:

Celebrity Fashions
Leading exporters of men's shirts
Owns the "Indian Terrain" brand locally
Engaged in the business of designing, manufacturing and selling of men's garments
8 factories housed over 300,000 sq.ft, employing over 5000 employees
Main customers include top international brands both from America and Europe
Some of the regular customers are Kohl's Corp, Timberland, Eddiebauer, Diesel, Marlboro Classics and Armani
Entered into a MoU with Ambattur Clothing, ACL, for the acquisition
ACL engaged in the manufacturing of all types of trousers with a total capacity of 6 million trousers p.a.

Issue Snapshot
Issue opened on December 19; closes on December 22
IPO of 45,50,000 equity shares of Rs 10 each
This through a 100% book building process
Price band fixed at Rs 160-180 per share

Issue Allocation
Net issue to the public of 45,00,000 equity shares
Up to 50% of the net issue will be allocated on a proportionate basis to QIBs
- Of this 5% will be reserved for Mutual Funds
No less than 15% of the will be available on a proportionate basis to Non Institutional Bidders
Not less than 35% of the net issue for allocation on a proportionate basis to Retail Individual Bidders


Use of Proceeds
Proposes to utilize the funds to part finance the acquisition of a trouser facility
Also setting up of exclusive Indian Terrain stores
Expansion of the garment manufacturing capacity
Proposes to open 20 exclusive Indian Terrain Stores in next three years
Plans to set-up a new factory for manufacturing of tops with a consolidated capacity of 920 production machines

Financial Details - FY05
Sales: Rs 134.1 crore (Rs 1.34 billion)
Net Profit: Rs 5.8 crore (Rs 58 million)
EPS: Rs 3.3 (Diluted)

Financial Details - FY06 (Annualised)
Sales: Rs 172.8 crore (Rs 1.72 billion)
Net Profit: Rs 10.4 crore (Rs 104 million)
EPS: Rs 5.8* Annualised/ Diluted
Price Band: Rs 160-180
PE FY06: 27.4 @ Rs 160
PE FY06: 30.8 @ Rs 180
Market Cap at Rs 160: Rs 285 crore (Rs 2.85 billion)
Market Cap at Rs 180: Rs 320 crore (Rs 3.20 billion)

Sales Details
Export sales recorded a CAGR of 19.32% during the last five years
Export sales increased from Rs 52.3 crore (Rs 523 million) in FY01 to Rs 106 crore (Rs 1.06 billion) in FY05
Exports during the first half of the current fiscal ended September 30, 2005 have touched Rs 68 crore (Rs 680 million)
Domestic sales of branded apparel recorded a CAGR of 24.14% during the last five years
Domestic sales increased from Rs 1.1 crore (Rs 11 million) in FY01 to Rs 26.7 crore (Rs 267 million) in FY05
Total sales by the grew at a CAGR of 19.66% from Rs 65.4 crore (Rs 654 million) in FY01 to Rs 134 crore (Rs 1.34 billion) in FY05
EBIDTA grew at a CAGR of 35.25% from Rs 3.8 crore (Rs 38 million) in FY01 to Rs 12.7 crore (Rs 127 million) in FY05
PAT grew at a CAGR of 28.45% from Rs 0.2 crore (Rs 2 million) in FY01 to Rs 5.8 crore (Rs 58 million) in FY05

Thursday, December 15, 2005

Bartronics India IPO opens on Dec 20

Bartronics India, one of the leaders in the booming business of the Automatic Identification and Data Capture, AIDC, proposes to soon set up an R&D Technology Center. To part finance this cost, Bartronics India is entering the capital market with an IPO of 65, 00,000 equity shares of Rs.10 each through book building process in the price band of Rs 63-75 .The issue opens on December 20 and closes on December 24, 2005, according to a release.

The company also proposes to enlarge its branch network in overseas as well as domestic markets. The company proposes to invest around Rs 32.50 crore (Rs 325 million) for this expansion with a view to meet the growing demand for this technology in India and abroad.

The main objective of the Technical center will be to understand emerging technologies in various domains, in which the company is operating and the activities that are proposed to be carried out. These include, examine commercializing aspects, integrated and build products, incubate them, reduce input costs constantly through newer technological approaches, and keep the company informed and disseminate information on technical trends etc., which will impact business models. The company shall be procuring a lot of existing tech products and will be building applications around them in Barcodes, RFID, and Retail Technologies. The hybridization and integration of diverse technologies will form a key focus area of the technical center.

AIDC is the industry term used to describe the identification ,and/or direct collection of data into a microprocessor controlled device such as a computer system or a programmable logic controller (PLC) , without the use of a keyboard .The technology supports two fundamental requirements v.i.z .eliminating errors associated with identification and/or data collection and accelerating the throughput process .The key application of the technologies is in tracking and traceability of products /articles, product and item identification and sortation ,information and data processing ,security and access control and inventory management.

Bartronics India started its business in the field of Bar Coding and Smart Card Technology. Subsequent to that, the company started experimenting with new Automatic Identification & Data Capture, AIDC solutions.

The company is involved mainly with the manufacturing sector and has implemented a number of projects across companies in their manufacturing set-ups .The projects primarily involved inventory & logistics management, time & attendance and asset tracking systems. AIDC is seen as an enhancing technology as it automates the data collection for the main systems.

GSPL to come out with IPO next month

Gandhinagar-based natural gas transmission company, Gujarat State Petronet, GSPL, is all set to hit capital market with an initial public offer, IPO, by next month to raise over Rs 300 crore (Rs 3 billion) for its ongoing expansion programme, reports Business Standard.

"GSPL is planning to construct additional 750 km natural gas transmission pipeline by 2006 end with proposed investment of over Rs 1,200 crore (Rs 12 billion). We have tied up loans of Rs 800 crore (Rs 8 billion) with financial institutions. We will mobilise Rs 200 crore (Rs 2 billion) through internal accruals," said D J Pandian, Managing Director, Gujarat State Petroleum Corporation, GSPCL.

GSPCL is the promoter of GSPL and was set up for the constructing and managing the state-wide gas transmission network.

In addition to GSPCL, other shareholders include state government corporations and investors such as India Development Fund and UTI Bank.

The promoters shareholding will come down to 51%, post issue. The public shareholding will be 24% and financial institutions will hold 25%, after the issue.

The public issue would be based on book building process and the company has appointed Kotak Mahindra Bank, HSBC Bank and ICICI Bank as the lead managers of the issue, Pandian said.

Pandian said the second phase expansion of adding 750 km of pipeline network would be focussed on small and interior cities of Gujarat.

"At present, the company is operating in the main trunk routes including Ahmedabad and Surat. With the second phase pipeline network, small and medium enterprise will have an opportunity to access the gas sources," he pointed out.

He said that the company was ready to extend its expertise to other states to make replica of natural gas transmission network in their states.

"At present, the company's gas transmission network exclusively serves Gujarat and is connected to all the major natural gas supply sources as well as most of the major users and demand centres in the state," Panidan said.

M&M Financial plans IPO of 1.50cr shares

Mahindra & Mahindra Financial Services yesterday said it is planning an initial public offer of 1.50 crore equity shares, report agencies.

The shareholders at the EGM held on December 9 have approved the issue 1.50 crore equity shares including a greenshoe option through an IPO at a price to be determined under the book building process, it informed the Bombay Stock Exchange.

The IPO will also include sale of one crore equity shares aggregating 14.25% of the paid up capital of the company held by Mahindra & Mahindra, the promoter and the holding company and other existing shareholders of the company, it said.

Mahindra Financial Services also plans to increase its authorised share capital to Rs 140 crore from the existing Rs 125 crore (Rs 1.25 billion).

OCIL acquires EuroCOR, to fund acquisition through IPO

Bangalore-based non-invasive healthcare equipment manufacturer Opto Circuits (India), OCIL, has acquired German stents manufacturer
EuroCOR for a consideration of Rs 59.91 crore (Rs 599.1 million), report agencies.

The company is also eyeing two more acquisitions in the US and Europe.

The all-cash deal to acqire EuroCOR would help OCIL diversify its business into the invasive sector and consolidate its presence in the established markets spread across the world, OCIL Chirman and Managing Director Vinod Ramani said.

The company would fund the acquisition through its proposed IPO of Rs 100 crore (Rs 1 billion), he added.

"We have initiated talks with two mid-sized companies for acquisition in the US and Europe," OCIL Chairman and Managing Director Vinod Ramnani said.

Declining to divulge much, he said, talks were at the preliminary stages now.

A company official, however, said the due diligence for these two acquisitions will start in Januray next year, while the deals were expected to fructify in the second half of 2006.

OCIL has already acquired three companies in a span of three years since 2001. It acquired Advanced Mironic Devices in 2001 at Rs 3.5 crore (Rs 35 million) followed by the digital thermometer division from Hindustan Lever in 2002 and patient monitoring division of Palco Labs, USA in 2003 for Rs 6 crore (Rs 60 million).

Ramani said the company would file the red herring prospectus with the market regulator Sebi for the proposed IPO in a few days.

Pointing out that the country has a huge market potential for stents, used for critical cardiac care, he said company's topline was expected to grow by Rs 120 crore (Rs 1.20 billion) during this fiscal, up from Rs 79 crore (Rs 790 million) in the 2004-05 fiscal.

"Our topline should increase to Rs 150 crore (Rs 1.50 billion) in 2006-07," he added.

EuroCOR Chairman Michael Orlowski would retain the post, Ramani said.

Orlowski said the company under the OCIL fold would grow bigger and get access to the vast potential that India offers.

"I feel the size of the Indian market for EuroCOR's products is expected to continue to expand at double-digit rates. We will target to achieve 10% market share in India," he said.

Global market for stents was expected to grow to USD 10 billion by 2008 from the current six billion dollars, he added.

Monday, December 12, 2005

Tanla Solutions to enter cap market, files DRHP with Sebi

Tanla Solutions, a provider of telecom infrastructure solutions, soon proposes to enter the capital market with a public issue of 1,58,85,000 equity shares of Rs 2 each through 100% book building process. The company has filed the draft red herring prospectus, DRHP, with Sebi, according to a release.

SBI Capital Markets is the book running lead manager for the issue and Karvi Computershare is the registrar.

The company intends to utilize the proceeds of the issue for consolidation and expansion of development facilities for telecom R&D, product development, telemetry deployment, aggregator services and create facilities for offshore development by setting up an exclusive development campus at the Vattinagula palle, around 25 km from Hyderabad city.

This will enable it to take advantage of the anticipated growth in demand for telecom products, aggregator services and offshore development in India and abroad.

Tanla Solutions also plans to sponsor telecom/industrial research at premier institutes like IIT for exploring newer signalling technologies as well as across industry applications, and also plans to undertake special R&D projects in telemetry, MVNE elements and for upgrading the existing products for international requirements.

The plan also include establishment of four more international marketing offices-two in the US and one each in Australia and Singapore for marketing products and services. Project centres and nodal maintenance centres are proposed to be established for providing decentralized and efficient maintenance support services for the products and services in India and Abroad.

Saturday, December 10, 2005

AIA Engineering fixes issue price for its IPO

AIA Engineering has fixed the issue price for its IPO at Rs 315 per share, according to a release.

The company entered the capital market on November 17, with a public issue of 47,00,000 equity shares of Rs 10 each at a premium to be determined through the book building process. Its price band was fixed at Rs 275-315.

The issue closed on November 22, 2005. It was subscribed 28.73 times.

The issue constituted 26.44% of the fully diluted post issue paid-up capital of the company.

The book running lead manager for the issue was SBI Capital Markets while Intime Spectrum Registry was the registrar.

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

Repro India fixes issue price for its IPO

Repro India has fixed the issue price for its IPO at Rs 165 per share, according to a release.

The issue closed on December 01, 2005. It was subscribed 8.10 times.

The company, an integrated end-to-end content and printing service provider to Indian and international clientele, entered the capital market on November 28 with its initial public offer of 26,20,000 equity shares of Rs 10 each for cash at a premium to be decided through the book-built process. Its price band was fixed at Rs 145-165.

The book running lead manager to the issue was Enam Financial Consultants.

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

Friday, December 09, 2005

Tulip IT Services IPO opens on December 9

Wireless-based connectivity solutions provider Tulip IT Services is entering the capital market on December 9 with its initial public offer, IPO, of 90 lakh shares for raising about Rs 100 crore (Rs 1 billion) to fund expansion plans, report agencies.

"We have fixed a price band of Rs 100-120 for the IPO of 90 lakh shares," Tulip Chairman and Managing Director H S Bedi said.

At present the promoters, Bedi and his family, hold 100% equity of the company, which will get diluted by 31.03% after the IPO during December 9 to December 15.

The final offer price will be determined through a book building process in consultation with book running managers Karvy Investor Services and Yes Bank.

"We will use the IPO proceeds to expand Tulip's Internet Protocol / Virtual Private Network (IP/VPN) wireless business to 130 cities from 100 cities at present," Bedi said.

He said the company is likely to raise about Rs 100 crore (Rs 1 billion) from the issue.

Out of the issue size of 90 lakh shares, 9 lakh shares or 10% has been reserved for employees of the company and its subsidiaries.

Upto 50% of the net offer to the public shall be allocated to qualified institutional bidders, QIBs, on a proportionate basis out of which 5% shall be allocated to mutual funds.

Further, about 15% of the net offer will be made available to non-institutional investors and 35% to retail investors.

The company, which made a net profit of Rs 16 crore (Rs 160 million) in the first half this fiscal, will list shares in BSE and NSE

Ram Gopal Varma announces Rs 100cr IPO

RGV Film Factory, RGVFFL, the production company floated by prolific filmmaker Ram Gopal Varma, will raise equity worth Rs 100 crore (Rs 1 billion) through an initial public offering, IPO, report agencies.

UTI Securities has been appointed as the lead manager to the IPO, which is likely to come out in the next three months.

On his decision to make his company public, Varma said, ''Not only is India the world's largest producer of feature films, but in terms of the audience size, it is also the largest market. Additionally, I also believe that Indian films can become a much bigger commercial force in the global arena. Being a publicly listed company will help RGVFFL towards this end by making fund raising a relatively simpler exercise.''

Elaborating on the IPO, UTI Securities President K Srinivas said, ''While film production companies in the US are publicly traded multi-billion conglomerates, in India, barring a few production houses, the industry continues to be fragmented and disorganised. There are very few companies in this space, which are corporatised and conceive and execute projects on time and in budget. Among these RGVFFL is by far the most prolific.''

He said, as the entertainment industry boom continues, he is of the view that the RGVFFL IPO will offer investors a chance to be a part of a company that has excellent growth prospects and leverages its promoter's versatile talent, creativity, technical expertise and enormous brand equity to create stakeholder value.

Ram Gopal Varma has so far produced 53 films in Hindi, Telugu and Tamil. He has himself directed 24 films in the three languages.

On his various joint ventures, Varma said, ''Henceforth, RGVFFL will be the only company I have interests in. Whatever I do will be through and for RGVFFL. Personally I see a great future for the company and I will constantly strive to entertain and reward my shareholders and the entertainment industry.''

On his deal with Adlabs Films, he said it is for specific projects, which have been identified and will be executed by RGVFFL. The money raised from the public issue will also be to create and execute further new projects.

Meanwhile, Srinivas said the details of the issue, including the structuring of the instrument and the price band, will be announced shortly after a red herring prospectus is filed with the Securities and Exchange Board of India, Sebi.

Varma, a critically acclaimed filmmaker, has made popular Hindi movies like 'Rangeela', 'Satya', 'Company', 'Bhoot' and 'Sarkar'.

His forthcoming ventures include 'Ram Gopal Varma ke Sholay', a remake of Ramesh Sippy's mega blockbuster 'Sholay', in which superstar Amitabh Bachchan is expected to play the role of 'Gabbar Singh'.

Thursday, December 08, 2005

Bartronics India on Rs 32.50cr expansion; launching IPO

Bartronics India, a leading player in booming business of the Automatic Identification and Data Capture, ADIC, proposes to soon set up an R&D technology centre in the country, and embark on an expansion programme.

The company also plans to enlarge its branch network overseas as well as domestic markets. Bartronics India is to invest around Rs 32.50 crore (Rs 325 million) for the expansion, with a view to meet the growing demand for the ADIC technology in India and abroad.

To part finance this cost, Bartonics India soon proposes to enter the capital market with an IPO of 65 lakh equity shares of Rs 10 each through book building process.

The book running lead managers to the issue are Karvy Investor Services and Centrum Capital while Bigshare Services is the register.

AIDC is the industry term uses to describe the identification and or direct collection of data into a microprocessor controlled device such as computer system or a programmable logic controller, PLC, without the use of a keyboard.

The technology supports two fundamental requirements such as eliminating errors associated with identification and or data collection and accelerating the throughput process.

The key application of the technologies is in tracking and tracebility of products/articles, product and items identification and information and data processing, security and access control and inventory management.

The Indian market for the technology is estimated to be about Rs 100 crore (Rs 1 billion) in 2005. The market has been growing at an estimated compounded annual growth rate, CAGR, of over 50% over the past few years and is poised to grow rapidly due to the retail and manufacturing growth in the country.

PVR IPO opens; to utilise proceeds to fund expansion plan

PVR IPO opened for subscription today. Multiplex cinema operator PVR yesterday said it plans to launch 82 screens in 18 multiplexes in the next two years, including a couple of low-cost digital cinemas, that will reduce prices of tickets by half, report agencies.

''Under the expansion plan, the company will launch 18 multiplexes with 82 screens by 2008. Of these, five multiplexes will be in Mumbai and two low-priced ticket multiplexes in Aurangabad and Latur,'' PVR Managing Director Ajjay Bijli said.

The remaining multiplexes would be set up at Hyderabad, Delhi, Gurgaon, Lucknow, Chennai and Ludhiana, he said adding, the company currently has 47 screens.

In order to fund the expansion plan, the company has entered the capital market with its IPO of 77,00,000 equity shares of Rs 10 each for cash within a price band of Rs 200-240 to be determined through the book building process.

The issue will close on December 14. An offer of fresh issue of 57,00,000 equity shares by the company and an offer for sale of 20,00,000 equity shares by The Western India Trustee of India Advantage Fund 1, part of the ICICI Venture Funds Management Company.

The issue comprises of a contribution from the promoters of 3,00,000 equity shares and another 1,50,000 equity shares reservation for allotment to employees.

Nearly Rs 7 crore (Rs 70 million) of the IPO proceeds would be utilised for film distribution by the wholly owned subsidiary, PVR Pictures, Bijli said.

About the low cost digital cinema, he said that it will cut down the ticket cost to Rs 50 from the present cost of PVR ticket at Rs 120. ''Low cost digital multiplexes at Latur and Aurangabad will be followed by similar cinemas in Uttar Pradesh,'' he said, adding, ''in these cinemas only Hindi movies will be shown which has huge market because of demographics.''

Bijli's family, which is the promoter of PVR cinemas will also buy shares worth Rs 3 lakh in the company.

Nitin Spinners to come out with Rs 49cr IPO

Rajasthan-based knitted fabrics and cotton yarn exporter Nitin Spinners would come out with Rs 49 crore (Rs 490 million) initial public offer, IPO, to partly fund its Rs 150 crore (Rs 1.50 billion) expansion programme, the company said yesterday, report agencies.

"The proposed expansion plan of Rs 150 crore (Rs 1.50 billion) involves additional capacity of 50,400 spindles of cotton yarn production, 12 knitting machines for knitted fabric production and additional power generation capacity of 8.18 MW," it said in a release.

The project is to be financed through term loans of Rs 83.50 crore (Rs 835 million) by existing bankers of the company. Promoters have proposed to offer unsecured loan of Rs 2.50 crore (Rs 25 million) and raise Rs 15 crore (Rs 150 million) through internal accruals.

To meet the remaining fund requirements, the company would be soon coming out with an IPO of Rs 49 crore (Rs 490 million), comprising Rs 9 crore (Rs 90 million) contribution from promoters and public offering of Rs 40 crore (Rs 400 million) through book building process.

UTI Securities is the book running lead manager to the issue and Bigshare Services is the registrar.

Wednesday, December 07, 2005

Punj Lloyd to go for further diversification

Looking for diversification into the hydel, airport and Light Railway Transit, LRT, segments and more vigorous plunge into oil and gas, Punj Lloyd, PLL, country's one of the largest engineering and construction companies, goes for initial public offering, IPO, on December 13 to mop up funds for capital equity, repayment of debts and investment in infrastructure projects, report agencies.

Set to dilute more than 17% of the promoters' stake of 67% in the company, PLL, also aims at saving Rs 3,000 crore (Rs 30 billion) out of its total burden of Rs 8,000 crore (Rs 80 billion) Executive Director of Business Development J K Dhar said.

Addressing a press conference, he said the company, having had large global presence in road construction, thermal power and oil and natural gas projects, was seriously set to give equal thrust on airport, hydel power and LRT projects.

"Our participation will also be stronger in projects related to oil and natural gas and other infrastructure for which USD 40 billion will be invested in the country till 2010-15," he said.

The Rs 2,000 crore (Rs 20 billion) company, which recorded a turnover of Rs 1,920 crore (Rs 19.20 billion) in 2004-05 and posted a consolidated profit of more than Rs 106 crore (Rs 1.06 billion), has now an order book worth of more than 3,700 crore (Rs 37 billion).

Replying to a question, Dhar said in the present structure, the promoters of the company held 67% of equities while private shareholders, including Standard Chartered Bank, commanded 28%.

ICICI Bank's ADS issue gets a better response

ICICI Bank has announced final subscription figures as well as the pricing of the public issue for the retail space. The latest numbers indicate that the ADS issue really saw a much better response. It was about 12 times subscribed. Of this, around 25% will go to the Japanese investors, who have applied in the POWL.

CBoP's public issue likely next year

Centurion Bank of Punjab’s, CBoP, proposed public issue, via which it aims to raise over Rs 400 crore (Rs 4 billion), is likely in early 2006-07, as it sees its capital adequacy reaching comfortable levels with the Rs 384 crore (Rs 3.84 billion) preferential allotment, reports Business Standard.

The bank is making preferential allotment of shares to India Value Fund, managed by GW Capital [Rs 134.75 crore - (Rs 1.34 billion)], ChrysCapital III Llc [Rs 134.75 crore – (Rs 1.34 billion)] and Citigroup Venture Capital [(Rs 113.57 crore – [Rs 1.13 billion)]. It will seek shareholders nod for the preferential allotment and the proposed public offering later this month.

The infusion of additional capital from the preferential allotment will increase the bank’s tier-I capital adequacy to about 15%. It also has tier-II capital adequacy of another 2.5%. The bank will have more than comfortable capital for the current financial year.

After the preferential allotment, the total foreign holding in the bank will increase to 67%, said Anil Jaggia, CBoP Chief Operating Officer, at a press conference called to announce the replacement of the Misys’ Equation software package with Infosys’ Finacle core banking, e-banking platforms.

CBoP was formed with the merger of Centurion Bank with Bank of Punjab, which used Finacle. The bank is yet to decide whether the public issue of shares will be in the domestic market or an ADS offering.

The additional capital is being raised to support organic and inorganic growth. The bank will not require fresh capital to meet Basel II norms. It is looking to maintain capital adequacy above 11-12% at all times, Jaggia said.

Referring to branch network expansion plans, Jaggia said the bank submitted its annual branch rollout plan to the Reserve Bank of India last month and is likely to get approvals by the end of this month. At present, CBOP has 240 branches and extension counters and 386 ATMs.

Centurion Bank of Punjab plans to expand in North

Centurion Bank of Punjab will be focusing in the North in terms of branch expansion.

Mr Anil Jaggia, Chief Operating Officer, Centurion Bank of Punjab, said the bank had sought permission from the Reserve Bank of India for more branch
licences.
While the bank will be setting up branches pan India, the focus will be on Punjab, Haryana and Delhi.

Centurion Bank of Punjab will also be setting up an asset reconstruction company, subject to RBI approval.

Mr Jaggia said the bank had appointed a team that had dedicated itself to the setting up of an ARC.

Opts for Finacle: Among its other initiatives as a merged entity, Centurion Bank of Punjab announced its shift to Infosys' Finacle system for core banking solutions.

The bank will replace its current system, Equation from Misys and deploy Finacle core banking, e-banking and CRM solutions as the unified technology platform for the merged entity.

Centurion Bank recently merged with Bank of Punjab.

The erstwhile Bank of Punjab, which has been using the Finacle system, will now be upgrading it to the latest version.

Mr Jaggia said by the end of September 2006, Centurion Bank of Punjab would have a common technology platform.

"With our recent merger, we were looking for a solution that can support our aggressive growth plans, quickly create a unified banking platform for the merged bank and help launch innovative products with faster time to market," said Mr Jaggia.

At present, 12 out of 18 banks, which have opted for core banking solution in the last three years have chosen Finacle.

These include Bank of India, Bank of Baroda, Vijaya Bank, ICICI Bank, UTI bank and IDBI bank.

Currently, the bank has a Capital Adequacy Ratio (CAR) of 10.92%.

The bank has plans to raise Rs 800 crore and take the to 21%. Mr Jaggia said they were raising enough capital to support organic as well as inorganic opportunities.

"The Basel II norms will reduce our capital requirements because our large retail portfolio implies less risk weightage," he said.

Taken from Business Line

Kingfisher Airlines IPO in March 2006

UB Group Chief Vijay Mallya yesterday said Kingfisher Airlines would bring out an initial public offering, IPO, in March 2006 and would raise about USD 200 million through the market, report agencies.

"The Kingfisher Airlines IPO will be coming next year and we intend to raise USD 200 million through this," Mallya said at a press briefing at the two-day CAPA awards ceremony.

Mallya said he would replace the debt element though the IPO.

The company would be raising another USD 200 million for reduction of debt raised for purchasing Shaw Wallace and Company and for funding the merged spirits entity 'United Spirits'.

He said every second bottle of ''booze'' consumed in India is from the UB group. He said this would help the company understand the consumer.

The UB group is one of India's largest conglomerates with net revenues in excess of USD 2 billion with interests in brewing, distilling, real estate, engineering, fertilisers, biotechnology, IT and aviation.

Kingfisher Airlines is a wholly owned subsidiary of United Breweries Holdings , the UB Group's holding company.

Ramsarup Industries issue opens on Dec 13

Ramsarup Industries is entering the capital market on December 13 with an issue of 50,00,000 equity shares of Rs 10 each at a premium of Rs 50 each aggregating Rs 30 crore (Rs 300 million). The issue will close on December 16, 2005, according to a release.

The company proposes to expand its product profile and is setting up of a structural mill with an installed capacity of 1,35,000 tonnes per annum at Shyamnagar in West Bengal. This will allow the company to offer a complete bouquet of products for the power transmission and distribution industry.

Microsec India is the lead manager to the issue and Intime Spectrum Registry is the registrar.

The company produces steel wires in the country and its products are widely used in power transmission and distribution. Its customers include projects of Power Grid Corporation of India, L&T, Kalpataru Transmission and Power, KEC, Apar Industries and vendors who in turn supply to these companies. The cmpany is a large supplier to various state electricity boards.

The company supplies TMT bars to large construction companies like L&T, Gammon India, Reliance Energy, HCC and also to vendors of PGCIL engaged in manufacturing of transmission towers like Jyoti Structures and L&T.

Ramsarup Industries has three operating units, Ramsarup Industrial Corporation, Ramsarup Bars & Rods, and Ramsarup Vidyut.

Ramsarup Industrial Corporation is one of the leading manufacturers of black and galvanized steel wires in the country with an annual production capacity of 1,73,000 tonnes. Ramsarup Bars & Rods, engaged in manufacturing wire rods, steel wires and TMT bars, has an installed capacity of 87,000 tonnes of TMT bars and 24,000 tonnes of steel wires. While Ramsarup Vidyut has been set up in Maharashtra to generate 3.57 MW of power through windmill.

Its total income has jumped from Rs 230.95 crore (Rs 2.30 billion) in 2001-02 to Rs 877.54 crore (Rs 8.77 billion) during 2004-05 and net profits after tax, PAT, during the same period has shot up from Rs 2.54 crore (Rs 25.4 million) to Rs 13.67 crore (Rs 136.7 million). During the first half ended September 30, 2005 the company has earned a PAT of Rs 13.01 crore (Rs 130.1 million) on an income of Rs 450.38 crore (Rs 4.50 billion).

The existing equity shares of the company are presently listed on the Calcutta Stock Exchange, CSE. The company also proposes to list the existing equity shares on The Stock Exchange, Mumbai, BSE.

Sunstar targets domestic branded rice mkt, may go for IPO

Aiming to increase its overseas sales as well as strengthen position in domestic branded rice segment, leading exporter Sunstar Overseas today said it would invest Rs 60 crore in the next 18 months. The company is looking at various options, including an IPO, to fund the expansions.

IPO to fund expansion of network coverage: Tulip IT

Network integrator and wireless-based connectivity solutions provider Tulip IT is coming out with an IPO, with a price band of Rs 100-120. It will use the funds to expand its network coverage to 130 cities.

ICICI Bank fixes issue price for its FPO

ICICI Bank has fixed the issue price for its follow-on public offer, FPO, at Rs 525 per share, reports Reuters. The retail shareholders are to get the share at Rs 498.75 per share, as the bank had offered 5% discount to them. Its ADS issue price has been fixed at USD 26.75 per ADS.

The company entered the capital market on December 1 in the price band of Rs 505-545. The issue closed yesterday. It has been subscribed 6.78 times.

DSP Merrill Lynch and JM Morgan Stanley were the lead manager to the issue. Karvy Computershare was the registrar to the issue.

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

ICICI Bank issue subscribed 6.78 times

ICICI Bank's public issue closed yesterday. Its price band was fixed at Rs 505-545. The issue has been subscribed 6.78 times, as per the NSE website.

The QIBs portion has been subscribed 13.11 times. The non- institutional investors portion has been subscribed 1.72 times. The retail portion has been subscribed 0.85 times. The existing retail shareholders portion has been subscribed 0.28 times.

The bank offered 5% discount to retail investors. The issue opened on December 1 for subscription.

DSP Merrill Lynch and JM Morgan Stanley were the lead manager to the issue. Karvy Computershare was the registrar to the issue.

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

T Rowe Price picks up 1 million PVR shares

PVR announced a price band of Rs 200-Rs 240 for its forthcoming IPO of 77 lakh equity shares. Recently, T Rowe Price has picked up 1 million shares of PVR from ICICI Ventures.

Punj Lloyd IPO opens on December 13

Punj Lloyd is entering the capital market on December 13 with an IPO of 91,72,937 equity shares of Rs 10 each for cash at a premium to be decided through a book-building process. Its price band has been fixed at Rs 600-700.

The price band for the issue has been fixed between Rs 600 and Rs 700 per equity share. The issue opens for subscription on December 13 and closes on December 16, 2005.

The issue comprises a fresh issue of 83,55,174 equity shares and an offer for sale of 8,17,763 equity shares. Out of the above, 1,00,000 equity shares shall be available for allocation on a proportionate basis to the employees and the balance 90,72,937 is the net offer to public.

The Offer is being made through the 100% book building process wherein at least 60% of the net offer will be allocated on a proportionate basis to qualified institutional buyers, QIBs. 5% of the QIB portion shall be available for allocation to mutual funds only and the remaining QIB portion shall be available for allocation to all QIBs, including mutual funds.

Further, upto 10% of the net offer will be available for allocation on a proportionate basis to non-institutional bidders and upto 30% of the net offer will be available for allocation on a proportionate basis to retail individual bidders.

The offer constitutes 17.57% of the fully diluted post issue paid up equity capital of Punj Lloyd.

The net proceeds from the issue of new equity shares would be utilised for investment in capital equipment, repayment of debt and investment in infrastructure projects, besides for general corporate purposes.

The book running lead managers to the issue are ICICI Securities, Citigroup Global Markets India, DSP Merrill Lynch and Kotak Mahindra Capital Company.

Punj Lloyd IPO opens on December 13

Punj Lloyd is entering the capital market on December 13 with an IPO of 91,72,937 equity shares of Rs 10 each for cash at a premium to be decided through a book-building process. Its price band has been fixed at Rs 600-700.

The price band for the issue has been fixed between Rs 600 and Rs 700 per equity share. The issue opens for subscription on December 13 and closes on December 16, 2005.

The issue comprises a fresh issue of 83,55,174 equity shares and an offer for sale of 8,17,763 equity shares. Out of the above, 1,00,000 equity shares shall be available for allocation on a proportionate basis to the employees and the balance 90,72,937 is the net offer to public.

The Offer is being made through the 100% book building process wherein at least 60% of the net offer will be allocated on a proportionate basis to qualified institutional buyers, QIBs. 5% of the QIB portion shall be available for allocation to mutual funds only and the remaining QIB portion shall be available for allocation to all QIBs, including mutual funds.

Further, upto 10% of the net offer will be available for allocation on a proportionate basis to non-institutional bidders and upto 30% of the net offer will be available for allocation on a proportionate basis to retail individual bidders.

The offer constitutes 17.57% of the fully diluted post issue paid up equity capital of Punj Lloyd.

The net proceeds from the issue of new equity shares would be utilised for investment in capital equipment, repayment of debt and investment in infrastructure projects, besides for general corporate purposes.

The book running lead managers to the issue are ICICI Securities, Citigroup Global Markets India, DSP Merrill Lynch and Kotak Mahindra Capital Company.

Govt keen on listing large PSUs: Finance Ministry

The Finance Ministry says that the government is keen on listing large profitable state-run firms on domestic equity markets.

Everest Kanto fixes issue price for its IPO

Everest Kanto Cylinder, which entered the capital market on November 22 with its initial public offering of Rs 90 crore, has fixed issue price of its IPO at Rs 160 per equity share of Rs 10 each.

PVR's IPO will help it fund its expansion plans

PVR has announced a price band of Rs 200-240 for its forthcoming IPO. The company is issuing 77 lakh equity shares in this issue. The company is intending to use the raised money for its expansion in the exhibition business on a pan India basis. Currently, it is setting up 82 screens across the country.

Birla Group may consider an IPO for other businesses

With the recent merger of some of the Birla Group businesses such as Indian Rayon, there are talks that the group may consider an IPO for one of its other businesses.

Monday, December 05, 2005

Bombay Rayon opens above its issue price

Bombay Rayon Fashions listed today on the stock exchanges. It opened at Rs 82.30 on the BSE and at Rs 80 on the NSE. The stock was issued at Rs 70.

Kernex Microsystems IPO subscribed 21.30 times

Kernex Microsystems IPO closed on December 3. Its price band was fixed at Rs 225-250. The issue has been subscribed 21.30 times. The QIBs portion has been subscribed 11.85 times.

Kernex Microsystems IPO closed on December 3. The company entered the capital market on November 28, 2005 with a Rs 99 crore (Rs 990.1 million) IPO. Its price band was fixed at Rs 225-250. The issue has been subscribed 21.30 times, as per the NSE website.

The QIBs portion has been subscribed 11.85 times. The non-institutional investors portion has been subscribed 69.98 times and the retail investors portion has been subscribed 13.93 times.

BOB Capital Markets and Allianz Securities were the book running lead manager to the issue.

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

Kamdhenu Ispat plans IPO to raise Rs 32cr

Kamdhenu Ispat plans to raise Rs 32 crore (Rs 320 million) through initial public offer, IPO, to finance its expansion plans and has approached Sebi for its approval, report agencies.

The company plans to introduce many more production units based on the latest technologies to cater to the growing HSD and TMT bars market, a company release said.

Kamdhenu has recently forayed into various infrastructure building segments like cement, stainless steel, water pipes and fittings, it added.

The company's annual turnover registered an increase of 54.76% at Rs 127.41 crore (Rs 1.27 billion) for the financial year 2004-05 as compared to previous financial year.

Sunday, December 04, 2005

Kernex Microsystems IPO subscribed 7.71 times

Kernex Microsystems IPO is closing today. Its price band has been fixed at Rs 225-250. The issue has been subscribed 7.71 times.

Kernex Microsystems IPO is closed Saturday. The company entered the capital market on November 28, 2005 with a Rs 99 crore (Rs 990.1 million) IPO. Its price band has been fixed at Rs 225-250. The issue has been subscribed 7.71 times till 11 am, as per the NSE website.

Till yesterday, the QIBs portion was subscribed 9.52 times, the non-institutional investors portion was subscribed 2.04 times and the retail investors portion was subscribed 2.93 times.

BOB Capital Markets and Allianz Securities are the book running lead manager to the issue.

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

Saturday, December 03, 2005

Bharat Overseas not keen on merging with IOB

A senior official of Bharat Overseas Bank today said it was considering a merger with a small bank. "Banks such as Federal Bank and Bank of Rajasthan would be the right fit for BhOB to merge," he said, reports Business Standard.

Even though Indian Overseas Bank, IOB, is one of the original promoters of the bank, it is a relatively large bank and, hence, BhOB did not want to be absorbed by it, added the official.

BhOB Chairman G Krishna Murthy said BhOB's asset base was less than Rs 5,000 crore (Rs 50 billion) compared with IOB's asset base of Rs 25,000 crore (Rs 250 billion). "A merger with IOB will not benefit BhOB, but BhOB will stand to gain if it merges with banks such as Federal Bank or Bank of Rajasthan," he said.

IOB holds 30% stake in BhOB. The other shareholders of BhOB are Bank of Rajasthan (16%), ING Vysya Bank (14.66%), Federal Bank (10.67%), Karur Vysya Bank (10%), South Indian Bank (10%) and Karnataka Bank (8.67%).

BhOB is awaiting Reserve Bank of India's approval for its proposed initial public offer. The bank initially planned to tap the market in October itself.

Bharat Overseas plans to raise about Rs 100 crore (Rs 1 billion) to increase its net worth to Rs 300 crore (Rs 3 billion) from Rs 198.38 crore (Rs 1.98 billion) as on March 31, 2005.

RBI has stipulated that all private sector banks should have equity capital of Rs 300 crore (Rs 3 billion) and till this level is achieved, these banks must have a minimum net worth of Rs 300 crore (Rs 3 billion) all the time.

Punj Lloyd plans to open its IPO on Dec 13

Punj Lloyd plans to open its IPO for subscription on December 13. The company says that the issue will remain open for three day and will close on December 16. The company says that the main purpose of the issue is to strengthen its balance sheet.

The company says that the main purpose of the issue is to strengthen its balance sheet. Chairman of Punj Lloyd, Atul Punj says," The primary purpose of this issue is to strengthen our balance sheet. We shall be pre-paying some of our higher cost debt. We shall be investing Rs 150 crore in the additional equipment that we shall be buying to position ourselves for the large opportunities coming forward."

Punj adds that after the issue, the company's interest outgo will come down by Rs 30 crore.

This Month IPOs

1. RADHA MADHAV CORP.Ltd Fixed Price @ 20 (20 crores) Open 12 December to 16 December Registrar:Intimespectrum
2. RAMSARUP INDUSTRIES FIXED PRICE @ 60 (30 crores - lot 100 shares) Open 13 December to 16 December Registrar:Intimespectrum

Friday, December 02, 2005

Govt clears road for IOB to take over Bharat Overseas Bank

The government has given the green signal to the state-owned Indian Overseas Bank to gain control of Bharat Overseas Bank, a Chennai-based private bank.

This may turn out to be a deal with a difference. The government has given the green signal to the state-owned Indian Overseas Bank, IOB, to gain control of Bharat Overseas Bank, BhOB, a Chennai-based private bank, reports The Economic Times.

The development could put paid the plans of Federal Bank and Bank of Rajasthan, which were interested to acquire BhOB. If IOB can pull the deal through, it will be first case of a government bank acquiring a profitable private sector bank. Till now, such M&As have always been ‘forced merger’, with a moratorium on a troubled private bank.

The finance ministry is reportedly considering ways where this can be done without amending the present laws. IOB, which is the largest shareholder of BhOB with an equity stake of 30%, could be in line to buy out the other shareholders of the bank and thus take complete control, according to officials.

The other shareholders of BhOB are Bank of Rajasthan (16%), ING Vysya Bank (14.66%), Federal Bank (10.67), Karur Vysya Bank (10%), South Indian Bank (10%) and Karnataka Bank (8.67%). It’s not clear as to which of these banks would be willing to sell their stakes.

Federal Bank, had offered to buyout the existing shareholders at a price that BhOB fixes for its proposed IPO. Bank of Rajasthan (BOR) had also pitched in to acquire the bank citing synergy in such a merger proposal.

BhOB bank was promoted in 1973 to take over IOB’s Bangkok branch following a regulatory diktat, which barred state-owned banks from running operations in that country. Bharat Overseas Bank has a branch network of 100 besides the Bangkok branch.

BhOB, on its part, had sought approval from the RBI for its maiden equity offering but is still awaiting the approval, according to G Krishnamurthy, Chairman of BhoB. BhOB had plans to launch an offering aggregating 1 crore shares. The issue size was to be pegged at between Rs 130 and 150 crore (Rs 1.30-1.50 billion). The book value of the bank’s share on March 31, ’05 was Rs 120.

A major bone of contention between the various shareholders has been the pricing of the IPO and also on the controlling interest in the bank. BhOB had initially looked at pricing the shares less than the book-value. Against this, one of the shareholder banks was willing to pay Rs 200/225 a share.


The pay out for IOB to take over BhOB, assuming all approvals are in place, could be close to Rs 200 crore (Rs 2 billion). IOB is governed by the Banking Nationalisation Act, while the private sector BhOB is governed by both the Banking Regulation Act and the Companies Act.

IOB will first have to obtain the approval of the BhOB board and its shareholders.

BhOB had an asset size of Rs 3,214 crore (Rs 32.14 billion) as on March 31, ’05, on an equity capital of Rs 15.8 crore (Rs 158 million) and a net worth of Rs 198 crore (Rs 1.98 billion). The capital adequacy of the bank was at 14.95%, while net NPAs stood at 1.56%.

IOB has a network of 1,503 branches. The bank has a balance sheet size of Rs 50,815 crore (Rs 508.15 billion) as on March 31, ’05. The bank posted a net profit of Rs 198.5 crore (Rs 1.98 billion) for the second quarter ended September 30, ’05. The capital adequacy ratio stood at 13.65% as on September 30, ’05, while its net NPAs stood at 0.94%.

Naukri.com mulls IPO in next two years

To expand its operations in the country, leading online job portal, Naukri.com is planning to hit the capital market with an initial public offer, IPO, in next couple of years.

To expand its operations in the country, leading online job portal, Naukri.com is planning to hit the capital market with an initial public offer, IPO, in next couple of years, report agencies.

"We will definitely go to public to raise money for expanding our business. But it will happen in just about next two years, Info Edge (India) Private Limited CEO and founder of Naukri.com Sanjeev Bikhchandani said.

The company, having a client list of 25,000 companies has targeted to enhance its turnover to Rs 100 crore (Rs 1 billion) by the end of this fiscal. "During last fiscal, we had a total turnover of Rs 45 crore (Rs 450 million) but this fiscal we expect to grow it to Rs 100 crore (Rs 1 billion)," he said.

The company has also decided to open its first overseas office in Dubai next month. "A lot of Indian families are living in this country and we want to cash in on the same by opening our office in Dubai," Bikhchandani said. The company at present has 30 offices in the country primarily in metro cities.

With over 100 million page views a month, it is estimated that over 10 lakh people have found jobs through Naukri.com and over 15,000 organisations have used the site for recruitment.

Indo Tech Transformers plans IPO of 39.45 lakh shares

Indo Tech Transformers has planned expansion and modernisation with an investment of over Rs 40 crore. The funds will be raised through an IPO of 39,45,130 equtiy shares of Rs 10 each through book-building route.

Indo Tech Transformers, one of the few organised players in the domestic tranformer market, has planned expansion and modernisation with an investment of over Rs 40 crore (Rs 400 million), report agencies.

The funds will be raised through an initial public offering, IPO, of 39,45,130 equtiy shares of Rs 10 each through book-building route with a price band of Rs 120-135 per share, the company said.

A minimum of Rs 47.34 crore (Rs 473.4 million) and a maximum of Rs 53.25 crore (Rs 532.5 million) will be raised this way.

The company has proposed relocation and modernisation of its Saidapet Plant into new distribution transformer plant at Thirumazhisai in Tamil Nadu under its expansion plans, a release said.

It is also setting up a new power transformer plant with a capacity of 2,400 MVA per year including 22 KV class of transformers.

The expansion also includes setting up of Dry Type Transformer plant at Thirumazhisai in collaboration with a multinational company.

The company said it has filed the draft prospectus with Sebi, seeking its nod for the IPO.

It has appointed Enam Financial Consultants as the lead manager and Intime Spectrum Registry as the registrar for the issue.

Thursday, December 01, 2005

Educomp Solutions IPO to hit market by Dec '05

Educomp Solutions has chalked out expansion plans targeting the overseas education market. The expansion plan will be funded by an IPO of Rs 50 crore. The IPO is slated to hit the market by December '05.

Educomp Solutions has chalked out expansion plans targeting the overseas education market. Over the next year Educomp's major focus area will be expansion of its global business with a focus on the world's largest education market - the United States of America. The expansion plan of Educomp Solutions will be funded by an initial public offer, IPO, of Rs 50 crore (Rs 500 million), according to a release.

Educomp has approached Securities & Exchange Board of India, Sebi, for approval to go public to raise funds through the IPO route. The IPO is slated to hit the market by December '05.

Educomp has grown over 25 % Y-o-Y over the last few years. With a turnover of 32 crore (Rs 320 million) for the year 2004-2005, Educomp is looking to increase its turnover to 51 crore (Rs 510 million) this financial year.

Educomp would be building on its existing initiatives in the area of providing digital content for schools as well as online tutoring, to create critical mass for its offerings.

Educomp is preparing to tap the US market, that has a K12 (Kindergarten to Std 12) content spend of over USD 10.2 billion (2004); an online tutoring market spend of over USD 4 billion and an assessment market spend of USD 2 billion as entry potential.

On the domestic front, Educomp will strive to leverage its leadership position to further strengthen its market share in professional development and turnkey solutions for schools. Large market spend on Digital Divide initiatives - in the region of Rs 1,200 crore (Rs 12 billion) [FY 2004-2007} and private initiatives estimated to be in the region of Rs 2,200 crore (Rs 22 billion) over the next three years forms a bulk market potential for the company in the coming years.

Educomp Solutions was incorporated in 1994. Headquartered in New Delhi, Educomp employs more than 900 professionals and has a presence in 27 locations across the country and a fully owned subsidiary in the US.

Shivalik Global expects Rs 60cr from IPO

Shivalik Global is coming out with an IPO. Executive Director at Shivalik Global, SK Agarwal says it is a fixed price issue with a band of Rs 50-Rs 60. The company is expecting to raise around Rs 60 crore from the issue.

Shivalik Global is coming out with an IPO. Executive Director at Shivalik Global, SK Agarwal says it is a fixed price issue with a band of Rs 50-Rs 60. The company is expecting to raise around Rs 60 crore from the issue. It caters to clients like Arrows, Sears and Van Huesen.

Andhra Bank issue may be priced in Rs 90-100 range

The management has indicated that they will price the issue at 5% discount to its prevailing market price. Analysts expect the issue to be priced in the range of Rs 90-100 per share.

Jagran Prakashan files DRHP with Sebi for public issue

Jagran Prakashan has filed its draft red herring prospectus with the Sebi for a public issue of upto 1,15,44,873 equity shares of Rs 10 each. The issue price is to be determined through a 100% book build process.

Jagran Prakashan has filed its draft red herring prospectus, DRHP, with the Securities and Exchange Board of India, Sebi, for a public issue of upto 1,15,44,873 equity shares of Rs 10 each, comprising of a fresh issue of 1,00,39,020 equity shares, and a greenshoe option of upto 15,05,853 equity shares, according to a release.The issue price is to be determined through a 100% book build process

The public issue will constitute 20% of the fully diluted post-issue equity share capital of the company assuming that the greenshoe option is not exercised and 22.33% assuming that the greenshoe option is exercised in full.

The company has appointed DSP Merrill Lynch and ICICI Securities as the book running lead managers to the public issue.

Karvy Computershare has been appointed as the registrar to the issue.

This Month IPOs

1. PVR LTD opens on 08 December 2005 - 14 Decebmer 2005 , size - 148 Crore

2. TULIP IT SERVICES LTD opens on 09 December 2005 - 15 December 2005, size-90 Crore

Bombay Rayon fixes issue price for its IPO

Bombay Rayon Fashions, which entered the capital market on November 11 with 134.75 lakh equity shares, has fixed the issue price for its IPO at Rs 70 per equity share.

Bombay Rayon Fashions, which entered the capital market on November 11 with 134.75 lakh equity shares, has fixed the issue price for its IPO at Rs 70 per equity share. The equity shares are proposed to be listed on December 5, according to a release.

The company entered the market through the book-building route. Its price band was fixed at Rs 60-70. The issue was subscribed 17.65 times.

The issue constituted 27.51% of the post issue paid up capital of the company.

The book running lead managers to the public issue were UTI Bank and Anand Rathi Securities and the registrar was Intime Spectrum Registry.

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

ICICI Bank seeks FDI hike in insurance to free capital

ICICI Bank wants foreign direct investment in insurance to be raised to the promised 49% so that it can free up a part of its capital invested in ICICI Prudential Life Insurance Company.

ICICI Bank wants foreign direct investment, FDI, in insurance to be raised to the promised 49% so that it can free up a part of its capital invested in ICICI Prudential Life Insurance Company, reports Business Standard.

“There is no clarity yet on the 49% FDI in insurance. The capital requirement plans were based on the assumption that the FDI limit would be enhanced to 49% (from the present 26%),” said K V Kamath, Managing Director and CEO.

Increase in FDI limit in insurance will “release the capital already invested”, said Nachiket Mor, Executive Director of the bank.

About the Reserve Bank of India’s concerns about banks’ investments in subsidiaries growing too large, Kamath said, “I think every regulator would be concerned. We need to have adequate capital, whatever the comfort level.”

ICICI Bank is in the market to raise Rs 5,750 crore (Rs 57.50 billion) from its public issue of equity shares and another Rs 2,300 crore (Rs 23 billion) from a follow-on American depository share issue, including 15% greenshoe option in both.

Apart from supporting investments in its life insurance joint venture, the bank needs capital to meet regulatory capital adequacy requirements.

ICICI Bank has a 74% stake in the life insurance joint venture with Prudential PLC of the UK holding the remaining 26%. The life insurance venture commenced operations in December 2000 and its equity capital has grown to Rs 1,085 crore (Rs 10.85 billion) at the end of September 2005 from Rs 425 crore (Rs 4.25 billion) at the end of March 2003.

The net worth of ICICI Prudential Life is Rs 305.21 crore (Rs 3.05 billion), given the losses a life insurance company incurs in the initial years. ICICI Bank’s equity capital at the end of September 2005 stood at Rs 741 crore (Rs 7.41 billion), up from Rs 613 crore (Rs 6.13 billion) at the end of March 2003.

Radha Madhav to raise Rs 20cr, IPO to open by mid-Dec

Radha Madhav Corporation is coming out with an IPO of one crore equity shares of Rs 10 each at a premium of Rs 10 per share aggregating to Rs 20 crore. The IPO is slated to open by mid-December.

Radha Madhav Corporation, RMCL, is coming out with an IPO of one crore equity shares of Rs 10 each at a premium of Rs. 10 per share aggregating to Rs 20 crore (Rs 200 million). RMCL has filed prospectus for its initial public offer, IPO, with Registrar of Companies. The IPO is slated to open by mid-December, according to a release.

RMCL is implementing an expansion project of Rs 50.06 crore (Rs 500.6 million), which has been appraised by State Bank of India, SBI. The means of finance include debt funding by SBI and Bank of Baroda of Rs 24 crore (Rs 240 million), capital contribution and cash accruals of Rs. 6.06 crore (Rs 60.6 million) and the balance Rs 20 crore (Rs 200 million) by way of initial public offer.

RMCL is carrying out the expansion of manufacturing facilities for existing products and new products.

The Daman-based RMCL is a medium sized manufacturing company. It is promoted by Anil Agarwal, Mitesh Agarwal and Abhishek Agarwal.

RMCL’s is engaged in diversified packaging and printing activities and caters to varied clientele including public sector units, government organizations, institutions, large scale industries, co-operative unions, federations, boards and various small scale industries encompassing industries like infrastructure, metal, cement, publication, inks, FMCG, merchant export, textile and garments, pharmaceuticals, food and spices, hygiene, soaps and detergents, cosmetics and personal care, coatings, post harvest packaging, edible oil, confectionary, milk and milk products and various other industries.

The equity shares of the company will be listed on the Bombay Stock Exchange. The lead manager to the IPO is UTI Securities.