Indian IPO

All details about Hot Indian Primary Market.

Friday, March 31, 2006

Opto Circuits fixes offer price at Rs 240-270

The price band for the follow-on public offer, FPO, of healthcare equipment company Opto Circuits (India) has been fixed between Rs 240 and Rs 270, reports The Hindu Business Line.

The company expects to raise Rs 108 crore (Rs 1.08 billion) to upgrade its research facility and fund working capital requirements.

The issue, to be raised entirely through the book-building route, comprises 40 lakh shares at a face value of Rs 10 each. After the public issue, the promoter's holding will come down from 36% to about 31%, Mr Vinod Ramnani, Chairman and Managing Director told.

After having acquired German stent-maker EuroCor GmbH in December last year for Rs 60 crore (Rs 600 million), Mr Ramnani said the company was looking at organic and inorganic growth. Overseas acquisitions are part of the plan, he said.

Meanwhile, EuroCor Life Sciences, a wholly owned subsidiary of Opto, has also received the regulatory CE approval for marketing and sale of its drug-eluting stent Taxcor.

According to Mr Ramnani, the approval allows EuroCor to sell Taxcor globally, with the exception of the US and Japan.

A large part of Opto Circuits' revenues of over Rs 122 crore (Rs 1.22 billion) is from the overseas market. But the company is looking to increase its focus in the domestic market as well, he said.

State Bank of Hyderabad plans IPO next fiscal

Close on the heels of the Union Cabinet's decision to amend the SBI (Subsidiaries) Act, the State Bank of Hyderabad, SBH, the largest among the SBI associate banks, is planning to tap the capital market with its initial public offer, IPO, in the second quarter of next fiscal, reports The Hindu Business Line.

"The idea is to meet the capital needs for rapidly growing business volumes and also to meet the Basel-II norms," said SBH Managing Director, Mr Amitabha Guha.

On an authorised capital of Rs 50 crore (Rs 500 million), the bank has a paid-up equity capital of Rs 17.5 crore (Rs 175 million) now.

The bank had recently raised Rs 500 crore (Rs 5 billion) of subordinated debt under tier-II capital, which received AAA rating from ICRA. Following this, the bank's capital adequacy ratio improved to 13% from 11% earlier.

As a result of the growth in risk weighted assets and market risk assets as per Reserve Bank of India norms, SBH expects its capital adequacy to come down to around 11.5% by the current fiscal-end. The book value per share stood at Rs 10,600 per share in March 2005 and is expected grow to around Rs 12,000 per share by the month-end.

Though the bank is yet to appoint merchant bankers to begin the valuation exercise for the proposed IPO, it desires to have a PE ratio between 8-10 keeping in view the average PE ratio of public sector banks at 8 and of SBI at 10.

"We prefer SBI to dilute its holding in our bank from 100% to 51% in two installments. We want to go for IPO in the second quarter of next fiscal and for the follow-on public issue sometime in next-to-next fiscal. If we can tap the market at a PE ratio of 8, our capital adequacy ratio can be comfortable till March 2009," Mr Guha said.

According to Mr Guha, the bank expects to post a growth of 25% per annum in the next three-four years.

Wednesday, March 29, 2006

Vijay Tanks to go public for expansion

Vadodara based Vijay Tanks and Vessels, VTV, is going public next year to support its future expansion plans following unprecedented growth in demand for its products from petroleum industries both at domestic and international market, reports Business Standard.

Anand Raghavan, managing director of VTV, said, "The Indian oil & gas refineries capacity is expected to increase by 50% over next six years, creating a huge surge in the demand for oil & gas storage systems and other fabricated engineering products."

In the last fiscal, the company registered a total turnover of Rs 150 crore (Rs 1.50 billion).

The company generated 75% of its total turnover amounting to Rs 112.5 crore (Rs 1.12 billion) from its core business of supplying products to oil & gas, petrochemical and fertiliser industry.

This apart, the company also supplies to water and steel companies.

Raghavan said, "We expect our turnover to jump by 25% next year due to the boom in the petroleum sector".

He said company has set a target of Rs 180 crore (Rs 1.80 billion) for 2006-07.

"We will scale up the capacity by upgrading our technology, raise more fund and pursue strategic business opportunities," he informed.

Emphasising the need to tap the opportunity, he said, "There is need to garner more fund for the rapid growth of VTV and raising fund from public is more viable for a long run and an attractive option."

Therefore, we are looking forward to go public in 2007, he added.

According to the company, in 1996, the Indian oil and gas refinery capacity was 60 mmt, which had doubled 120 mmt by 2003 and is expected to grow to around 180-200 mmt by 2010.

Further he said the company would look at other given option too like debt or internal accrual.

"We are also thinking to have a mixture of debt and equity", Raghavan added. However he said, "funds raised through debt will incur immediate cost to the company."

V Sunderrajan, director of VTV, said, "The unprecedented growth in the oil refineries of India has created a vast gap between the demand and supply of storage tanks, vessels and fabrication work".

The supply of storage tanks, vessels etc are less than 50% and this makes fabrication business a sellers market, he added.

"We expect the fabrication business in India to increase by 30-40% at compounding rate in the coming years", Sunderrajan said.

Vijay Tanks is a key player in the turnkey design, engineering, procurement, construction, commissioning of atmospheric storage tanks, cryogenic storage tanks, high-pressure spheres, vessels, and internal plant piping for the refinery, petrochemical, fertiliser and steel industries.

It is also known as ‘fabrication businesses', as the steel are converted into specified vessels as per the requirement of the project.

Reliance Petro IPO likely to open on Apr 10

Reliance Petroleum, RPL, the wholly owned subsidiary of Reliance Industries, is likely to unveil its initial public offering, IPO, on April 10, reports Business Standard.

RPL, which is raising funds to part-fund its Rs 27,000 crore (Rs 270 billion) refinery at Jamnagar in Gujarat, plans to begin its international road shows during the week beginning April 3, 2006.

The entirely book-built IPO is expected to be introduced within a price band of Rs 57 to Rs 62.50.

Sources in the investment banking industry said road shows were being planned in cities including Hong Kong, Singapore, London, Boston, New York and San Fransisco.

Reliance Industries Chairman Mukesh Ambani is expected to attend a couple of road shows, they added.

Stock market sources said going by the huge response of the pre-IPO private placement, RPL’s IPO might break the previous record of investors’ participation in a public float. National Thermal Power Corporation had set a record by attracting 15 lakh applications for its public issue in October, 2004.

A clutch of investors including Blackstone, Citigroup, UBS, Deutsche Bank, UTI Bank, SBI, ICICI and IDBI and Mukesh Ambani, were learnt to have scooped up 450 million shares in the pre-IPO private placement.

The institutions were believed to have purchased shares at Rs 60 a piece, totaling an investment of Rs 2,700 crore (Rs 27 billion). A formal announcement of this is expected shortly.

Incidentally, Reliance Industries had invested Rs 2,700 crore (Rs 27 billion) in RPL as its equity contribution in three tranches in December, January and February.

The IPO will offer 1,800 million shares. Reliance would again acquire 900 million shares through the IPO, exactly the same amount to be offered to the public. As the pre-IPO placement consumed 450 million shares, the public would be entitled to apply for 450 million shares.

Monday, March 27, 2006

Avoid : SUN TV IPO

Price @ 730-875 Opens:03-Apr - 07-Apr

IT is one of the very expensive issue, investor can better stay away from the issue if needed you can buy after listing. Though it worth a lot to your portfolio, IPO price is expensive, buy on decline

Saturday, March 25, 2006

Autocop plans to raise Rs 200cr from IPO

Autocop group, a car security and electronic accessories maker, has said that it was looking to raise about Rs 200 crore (Rs 2 billion) through an IPO in the capital markets, reports The Hindu Business Line.

It is also considering a joint venture with Pioneer, the leading global car audio system maker, to market its products in the country.

"Considering our business and the different partners we have in India, we need funds for our operations. We are looking at an initial public offer to raise around Rs 200 crore (Rs 2 billion)," Umesh Deshpande, Managing Director, said.

Meanwhile, Autocop yesterday signed a distribution, marketing, and service support agreement with the Singapore-based Pioneer Electronics for car audio systems.

Tantia Constructions IPO opens on March 27

Tantia Constructions, TCL, an infrastructure company based in Kolkata, is coming out with an initial public offer, IPO, of 42,50,000 equity shares of Rs 10 each through 100% book building process, reports The Hindu Business Line.

The issue opens on March 27 and closes on March 31, with the price band fixed between Rs 45-50.

The proceeds from the issue, estimated at Rs 56 crore (Rs 560 million), will be used to purchase capital equipment, enhance long term working capital requirement, invest in projects, and repay debts.

The company has a diverse geographic presence in India as well as in Bangladesh, Nepal, and Bhutan, and has to its credit projects in urban infrastructure, roads and railways, marine infrastructure, aviation, and power transmission.

Tantia Constructions has clocked a turnover of Rs 96 crore (Rs 960 million) and net profit of Rs 4.08 crore (Rs 40.8 million) during the first nine months of 2005-06.

It is currently involved in projects worth over Rs 800 crore (Rs 8 billion). They include laying a 15-km tramway in Kolkata, the two-km bridge on Kosi river, 165 km of roads in Mizoram, and the Dibrugarh airport terminal in Assam.

Microsec Capital is the book running lead manager and MCS is the registrar to the issue.

Friday, March 24, 2006

HTTL to set up unit in Uttaranchal; IPO soon

Home furnishing products company Hanung Toys and Textiles, HTTL, is setting up a manufacturing unit in Uttaranchal and will go public to part-fund the Rs 175 crore (Rs 1.75 billion) project, which would boost its overseas exports, report agencies.

“The upcoming unit at Uttaranchal will comprise a weaving plant, dyeing and printing facilities and produce home furnishing products such as bedsheets, quilts, curtains and cushions. The products are sold under the brand 'splash',” Chairman and Managing Director Ashok Kumar Bansal said.

The company, which has a technical collaboration with South Korean company Hanung Industrial Co., has managed Rs 90 crore (Rs 900 million) from banks and financial institutions and for the balance amount it would issue a public offer by mid-April after required approval from the Sebi, he said.

“We will issue a public offer by mid-April this year after having approvals from the Sebi. The issue consists of 95 lakh equity shares of Rs 10 each,” he said.

The issue would constitute 37.72% of the post issued paid up capital of the company.

The unit, which is scheduled for commissioning in December this year, would enhance company's capacity six folds and boost overseas export of home furnishing products.

“Current production of furnishing products is about 20,000 meters a day. After the unit in Uttaranchal becomes operational it would go up to 1,20,000 meters per day,” he said.

The overseas market that the company is eyeing is mainly United States and Europe, which account for 80% of company's export revenue.

The products have little presence in domestic markets and had generated Rs 16 crore (Rs 160 million) last year, he said.

Bharat Hotels files DRHP with Sebi for IPO

Bharat Hotels today filed a draft red herring prospectus, DRHP, with the Securities & Exchange Board of India, Sebi, for its proposed initial public offering, according to a release.

Bharat Hotels proposes to offer upto 12 million equity shares of face value Rs10 each for cash at an issue price to be determined through the book-building process conducted on the BSE and NSE.

The issue will constitute upto 14.30% of the fully diluted post issue equity capital of the company.

Under the terms of the issue, 60% of the issue will be offered to qualified institutional buyers, QIBs; 10% to non-institutional investors; and the remainder 30% to retail investors.

Bharat Hotels presently operates six luxury hotels in India’s major cities offering more than 1,400 rooms in the five-star deluxe segment. These include Inter Continental ‘The Grand’ hotels in New Delhi, Mumbai, Goa and Srinagar as well as The Grand Ashok Bangalore and The Grand Laxmi Vilas Palace Udaipur.

The company plans to re-open by mid-2006 The Grand Temple View Khajuraho, after refurbishment. By 2007, it expects to open three additional hotels - The Grand Great Eastern Kolkata, The Grand Resort Bekal, Kerala and The Grand Ahmedabad.

Lalit Suri, Chairman and Managing Director of the company said, “We also plan to expand our presence to other cities such as Chennai, Jaipur, Hyderabad, Amritsar, Chandigarh, Noida with the aim of reaching an inventory of 3,000 rooms by 2009”.

The company has appointed Kotak Mahindra Capital Company, DSP Merrill Lynch and Deutsche Equities India as book-running lead managers to the issue.

Emkay Share IPO opens on March 31

Emkay Share and Stock Brokers is entering the capital market on March 31 with an initial public offer, IPO, of 62,50,000 equity shares of Rs 10 each with a price band of Rs 100-120 per share through a 100% book building route. The issue will close on April 7, 2006, according to a release.

At least 9.07 lakh shares have been reserved for subscription by non-institutional investors and at least 21.17 lakh shares have been reserved for subscription by the retail investors.

The proceeds of the issue will be utilized for expansion of the company's operations and branch network in India and overseas as well as technology investment in the company's existing business, scaling up of its e-broking business, investment in subsidiaries and augmenting working capital requirement.

Emkay is a 10-year old broking house providing customized financial services like broking of equity and derivative products, portfolio management services and distribution of mutual funds and IPOs. Its clients include mutual funds, financial institutions, FIIs, banks, insurance companies as well as high net worth and retail investors.

The company holds membership of BSE, NSE, and is a depository participant with CDSL. Emkay also plans to acquire membership of MCX and NCDEX through its 100% subsidiary.

The company has a strong retail distribution and a customer base of over 17,000 clients for its broking services. Currently, the company has 17 branches and 24 franchisees which it intends to expand to 100 soon. It also intends to set up two overseas offices in Singapore and Dubai and six regional offices in India.

For the six months period ended September 30, 2005, Emkay had a total income of Rs 19.86 crore (Rs 198 million) and profit after tax of Rs 6.96 crore (Rs 69.6 million).

Thursday, March 23, 2006

R Systems IPO opens on March 28

R Systems International, one of the leading providers of outsourced and offshosre product development services, proposes to enter the capital market on March 28 with an initial public offer, IPO, of 44,08,355 equity shares of Rs 10 each through 100% book building process, report agencies.

Company's CMD Rekhi Singh yesterday said that that the issue closes on March 31 and the price band has been fixed at Rs 210 to Rs 250 per equity share.

The company proposes to deploy the net proceeds of the issue for upgrading and expansion of existing infrastructure at Noida, Pune and Chennai, repayment of outstanding loans and financing working capital requirements.

R Systems will be expanding its IT infrastructure at Noida to provide necessary workstations and latops, servers, software for development, testing operating systems, e-mail and communication equipment for its business at all its locations.

The capital expenditure will cover upgrade of equipment new development tools, and additional requirements arising from increased staff numbers 300 in 2006 and 300 in 2007.

Further, the expansion of the Pune centre consists of acquisition of land adjoining building that will seat approx 175 engineers.

In 2006 the company is in the process of expanding its rented facility at Chennai from the capacity of 180 to 275 seats. This will entail capital expenditure on hardware software and networking.

It also plans to set up own facility in Chennai in 2007 at a gross cost of approximately Rs 3,000 per square feet. This will help create capacity for further expansion in 2008, he added.

PFC appoints merchant bankers for IPO

Power Finance Corporation, PFC, has appointed three merchant bankers for its maiden public offer through which the government too would sell 5% of its stake, reports The Economic Times quoting PTI.

"ICICI Securities, Kotak Mahindra and Enam Financials have been appointed as book running lead managers for the PFC IPO," sources told the agency.

The three were selected from among six shortlisted bankers. Citibank, HSBC and DSP Merrill Lynch were other contenders for the issue, which could raise over Rs 1,500 crore (Rs 15 billion).

Incidentally, the lead managers are the same who handled the public offer and disinvestment of power giant NTPC in 2004.

The company is issuing 10% fresh equity while the government is divesting 5% stake. The issue comprises of 10.3 crore new shares and sale of 5.15 crore shares by the government.

The bankers have already started the due diligence of the company and help the government in selecting legal advisors.

"The legal advisors for the issue have also been appointed," sources said.

They said the company will file its draft red herring prospectus with Sebi towards April-end after compiling this financial year's results. Sebi will take around 21 days to approve the prospectus after which the issue will hit the market in June.

PFC's paid-up capital is Rs 1,030 crore (Rs 10.30 billion), which would rise to Rs 1,134 crore (Rs 11.34 billion) after the issue. Government holding would come down to 86.36% from 100% at present.

Industry sources said PFC has a book value of Rs 65 per share and it could charge some premium over it. This could translate into a price band of Rs 70-100, which would fetch between Rs 1,080 crore (Rs 10.80 billion) to Rs 1,500 crore (Rs 15 billion).

Hanung Toys & Textiles files prospectus with Sebi

Soft toys manufacturer and exporter Hanung Toys and Textiles has filed the draft red herring prospectus with Sebi for its initial public offer, IPO, whose proceeds will be used to finance expansion plans.

Soft toys manufacturer and exporter Hanung Toys and Textiles has filed the draft red herring prospectus with Sebi for its initial public offer, IPO, whose proceeds will be used to finance expansion plans, report agencies.

The company will enter the capital market with the 100% book building process, it said in a statement.

The public issue consists of 95,00,000 equity shares of Rs 10 each, comprising 5,00,000 equity shares for eligible employees on a competitive basis.

The issue would constitute 37.72% of the post issue paid up capital of the company.

Karvy Investors Services and Anand Rathi Securities are the managers to the issue.

R Systems to raise Rs 100cr via IPO

The Rs 81 crore (Rs 810 million), outsourced product development, OPD, company, Gurgaon-based R Systems International will raise around Rs 100 crore (Rs 1 billion) from the primary market to fund its expansion and to further consolidate its position, reports Business Standard.

The company said it had identified third-party product development as its core business area and plans to fund its expansion through first public offer of 44 lakh shares.

The 15-year-old company, which had taken over two product companies three years ago, said it would not acquire any software-product companies and would stick to services in the Rs 2,000 crore (Rs 20 billion) Indian outsourced product design area.

It generated Rs 95 crore (Rs 950 million) out of its total revenues of Rs 158 crore (Rs 1.58 billion) last year from designing third-party software products and is planning to double its staff strength in India from 1,000 to 2,000.

“Over the past three years, the outsourced product design division of the company has shown maximum growth and we plan to make further acquisitions in the software services, especially in healthcare, and to provide product support in our existing areas of operations such as banking, finance, internet content-delivery and supply-chain management,” said Rekhi Singh, Founder and President of the company.

The company currently has nearly 26% of its equity with private equity firms promoted by GE and Intel, the two of whom will together contribute nearly a third of the total shares offered as part of the IPO.

GMR plans to enter market to raise Rs 500cr

GMR Infrastructure, the winner of the high-brow Delhi Airport modernisation bid, is tipped to go public by June. The low profile Bangalore-based corporate may raise around Rs 500 crore by unlocking about 15-16% of its equity.

GMR Infrastructure, the winner of the high-brow Delhi Airport modernisation bid, developer of the greenfield Hyderabad International Airport and a clutch of power and road ventures, is tipped to go public by June, reports The Economic Times.

GMR Infrastructure, the winner of the high-brow Delhi Airport modernisation bid, developer of the greenfield Hyderabad International Airport and a clutch of power and road ventures, is tipped to go public by June, reports The Economic Times.

The low profile Bangalore-based corporate may raise around Rs 500 crore (Rs 5 billion) by unlocking about 15-16% of its equity.

India's biggest challenge, infrastructure, has also emerged as the best business opportunity for companies participating in this space. It has even made many of them bullish about the prospects of unlocking their potential in the stock market.

The final timing of the issue, including the first step of filing the draft red herring prospectus, DRHP, with SEBI, will be firmed up once the case pending in the Delhi High Court between Anil Ambani Group and the Government of India on the matter of awarding airport upgradation is decided, sources said.

The group has been mulling the IPO option for some months now but decided to wait till the government decided on the Delhi and Mumbai upgradation projects. But no sooner did GMR Group bag the project; a court case came up with the Anil Ambani Group challenging the government move.

While current data is not available, GMR Infrastructure, which is the holding company for the group's infrastructure business had a paid-up capital of Rs 158.7 crore (Rs 1.58 billion) as of March 31, 2004.

Monday, March 20, 2006

NeST plans IPO, to raise Rs 800cr to Rs 1,000cr

NeST Group, a Kerala-based privately held company engaged in electronics and software development, plans to sell its shares to public next fiscal to raise Rs 800 crore (Rs 8 billion) to Rs 1,000 crore (Rs 10 billion), a top company official has said, reports The Hindu Business Line.

"We are now in the process of coming out with our initial public offer, IPO," said N Jehangir, Managing Director of NeST Group.

Jehangir said talks with merchant bankers are now on to finalise the plans for the IPO, which is slated for some time during the coming financial year. He did not specify a time for the offer.

Prior to the IPO, NeST Group would sell a part of its equity shares to a venture capital fund. Talks are on in this regard too, Jehangir said.

Headquartered in Kochi, NeST Group is a diversified entity with interests in software, fibre optics, medical equipment, desktop computers and system integration.

The group's turnover in 2005-06 would be between Rs 500 crore (Rs 5 billion) and Rs 600 crore (Rs 6 billion). It employs around 3,500 people. Its clients include Hitachi, Toshiba and Panasonic.

Jehangir said NeST would invest Rs 100 crore (Rs 1 billion) during the next year in setting up a `special technology park' in Kerala and a `special mechanical economic zone' in Tamil Nadu.

The technology park, likely to come up in Kochi, will house software and related companies. The mechanical economic zone will come up in a 100-acre plot in Coimbatore.

It is also expanding its manufacturing base in Cochin Special Economic Zone and that in Bangalore. The software development division, based at Technopark, Thiruvananthapuram, is also being expanded to house up to 2,000 engineers from the present 700.

Apart from this, NeST also plans to go for acquisitions to boosts its revenues to over Rs 1,000 crore (Rs 10 billion), he said. Over the next seven years, NeST hopes to become a group with a billion dollar revenues.

On the proposal to make a foray into the semiconductor business, the NeST chief said as a prelude to this project, an LNG-based power project would first be set up to ensure uninterrupted quality power for the chip facility.

Parsvnath Developers files DRHP with Sebi

Parsvnath Developers has filed its draft red herring prospectus, DRHP, with the Securities and Exchange Board of India, Sebi, for a public issue of upto 3,32,38,000 equity shares, according to a release.

Of the total equity float, upto 3,30,38,000 equity shares are for the public, while the balance upto 2,00,000 shares are reserved for eligible employees of the company.

The issue would constitute 25.15% of the fully diluted post issue paid up capital of the company, while the net offer to the public would constitute 25% of the fully diluted post issue paid up capital of Parsvnath Developers.

While the face value of the equity shares is Rs 10 each, the pricing of the issue is to be determined through 100% book building process.

A minimum of 50% of the net offer to the public shall be allocated to qualified institutional buyers, QIBs, and upto 35% shall be available for allocation on a proportionate basis to the retail bidders.

The equity shares are proposed to be listed on Bombay Stock Exchange and National Stock Exchange.

The objectives of the issue are to meet the cost of development and construction of some of company’s projects and achieve the benefit of listing.

The company has appointed Enam Financial Consultants, JM Morgan Stanley and DSP Merrill Lynch as the lead managers.

Parsvnath Developers, PDL, is the flagship company of Parsvnath Group. It has a presence in 30 cities in nine states in India.

PDL has diversified its portfolio of real estate development projects. It is currently developing 12 integrated townships, 19 residential projects, 20 commercial complexes including shopping malls and multiplexes and one hotel.

RPG retail arm may tap capital market next year

Great Wholesale Club, a little known RPG outfit that owns the Spencer's brand and runs the retail business, is likely to go in for a public issue next year after a rechristening exercise, reports The Hindu Business Line.

According to Sumantra Banerjee, President & Chief Executive of RPG Enterprises, the retail business of the group is all set to witness major activities in the next 12 months.

From the existing level of 2 lakh square feet of retailing space the group is adding another 8 lakh square feet and it would be spread all across India. The corporate headquarters of RPG Retail is also being shifted from Chennai to Kolkata. The process would start from April 1.

"We are galloping at a rapid pace. The size of our locked up properties, which is now 20 lakh square feet would jump to 40 lakh square feet by the end of the next fiscal," Banerjee said.

Regarding investments, he said, all properties are on rent. According to him, the group would be spending approximately Rs 200 crore (Rs 2 billion) on the retail business. He said it would be funded through internal accruals, debt and a public issue. However, he was not sure of the size of the equity offering, as it would solely depend on the need of the liquidity.

The name of the holding company, Great Wholesale Club, would be changed too. "That name does not mean anything. Whenever we go public we would have to make that necessary change," he said.

For the year ended March 31, 2006, RPG Retail would be registering a turnover of Rs 450 crore (Rs 4.50 billion). However, it would not breakeven. According to Banerjee, this is not a deterrent for an IPO.

"The total business might not be recording profits but all our stores are making money. Our earnings will increase with the opening of the new shops but the overhead expenses remain constant. So, profits would start coming in," he said.

He went on to clarify that at present RPG Retail is recording a turnover of Rs 30-35 crore (Rs 300-350 million) a month.

It is expected to increase to Rs 80-90 crore (Rs 800-900 million) a month by December 2007.

Xenitis mulls IPO in July-August

Xenitis, the company best known for its sub-10 K personal computers, PC, is launching an initial public offering, IPO, in July-August, to fund its manufacturing and product development plans, Tathagata Datta, Managing Director, Xenitis Infotech, said, reports DNA.

“We plan to mop up Rs 250 crore (Rs 2.50 billion) from the market through the IPO and will put in a major chunk of the fund into the existing manufacturing facilities and also set up new facilities,” Datta said.

Divulging the details of the location of the new manufacturing facilities, Datta said West Bengal remains the top choice for investment. Xenitis, manufacturers of the Aamar brand of personal computers, which is sold as the Aamchi PC in the west and Apna PC in the north, has tied up with KTC, the largest manufacturer of TFT in China, to manufacture monitors.

It has a manufacturing facility in collaboration with Chinese major Unitek Computer at Sugandha in Hooghly, West Bengal.

“We intend to make prices and durability more attractive than the Chinese products. Therefore, except for CPU manufacturing, we will make everything else over here in our own facilities,” Datta said.

The company has expanded its product range to include high-end servers.

The Kolkata-based computer manufacturing company is aiming to net Rs 500 crore (Rs 5 billion) revenue for 2005-2006, and expects to double the revenue in the following year, according to Arup Sarkar, the National Head of Sales.

Xenitis has tied up with Iris Computers for the national distribution of its computers.

The Xenitis group of companies, jointly founded by Chairman Santanu Ghosh and Managing Director Tathagata Datta, has achieved a turnover of Rs 178 crore (Rs 1.78 billion) for 2004-2005.

Global Automobiles, a joint venture between Xenitis and Guangzhau Motors, will start producing two-wheelers in July-August, with eight models hitting the market at one go, Datta said. SST Media, the latest addition to the Xenitis bouquet, will usher in a new 24X7 infotainment channel on March 27 this year for viewers of Kolkata TV.

Centre asks BSNL to pick consultant for IPO

The government has asked Bharat Sanchar Nigam, BSNL, to appoint a consultant for its proposed IPO. Officials said that the process would be initiated shortly but the company would need a year to meet statutory requirements for the IPO, reports The Financial Express.

According to industry estimate, BSNL is likely to be valued at around USD 8-10 billion. Though the exact percentage of equity divestment has not been announced yet, indications are it is likely to be 5%.

Bharti Tele-Ventures, India’s largest GSM company, has a market capitalisation of USD 16.25 billion. Chances of an IPO by BSNL have brightened, with the contours of the BSNL-MTNL merger becoming clear.

The ICICI Securities-led consortium has submitted its report on the merger of the two PSUs favouring the acquisition of MTNL by BSNL and an IPO by the latter as the preferred option.

However, there are complex issues relating to human resources, stamp duties and other costs involved in the restructuring exercise, which are currently being examined.

“In the past there have been talks of an IPO by BSNL but issues like merger of the two telecom PSUs have delayed it. The government had to take a view on whether MTNL and BSNL should merge before an IPO. Now with ICICI Securities’ report, the direction should be clear,” officials said.

Industry observers maintain that the company would need funds for its expansion, as its profitability is likely to come under pressure in the years to come.

During 2004-05, BSNL’s net profit of Rs 10,183 crore (Rs 101.83 billion), and expects to post a profit of around Rs 8,000-10,000 crore (Rs 80-100 billion) during 2005-06 also.

Saturday, March 18, 2006

Patel Engineering plans FPO; files DRHP

Patel Engineering, a civil-infrastructure construction company, filed its draft red herring prospectus, DRHP, with Sebi for its follow on public offer, FPO, at a price to be determined through the 100% book building process. The offer is to raise Rs 4250 million, as a per press release.

It has blossomed into a front-runner civil engineering construction company in the country with many achievements to its credit. The company has executed projects in the field of tunnelling, underground works for hydroelectric and irrigation projects, nuclear and thermal power projects, bridges and marine works and public health projects.

Patel Engineering has till date completed 160 Km of tunnelling work, 75 dams, and 30 hydroelectric projects in India and 30 micro tunnelling projects in North America.

Over the last one year its order book has increased by more than 100% to Rs 4300 crore (Rs 43 billion).

Moreover, government’s continued thrust on infrastructure development and the finance minister’s budgetary outlay will further increase the number of infrastructure projects in the next two years.

The fresh capital raised will not only part finance some of the orders in pipeline but will also help the company in tapping the huge growth potential going ahead.

The company has appointed Enam Financial Consultants and ICICI Securities as the book running lead managers for the follow on public offering.

Thursday, March 16, 2006

BL Kashyap to list on March 17

BL Kashyap & Sons will list on March 17. Its BSE ID is 532719. The share was issued at Rs 685.

The company entered the capital market on February 20 with a public issue of 27,50,000 equity shares of Rs 10 each. There was also a greenshoe option of upto 2,50,000 equity shares to be lent by Vineet Kashyap, one of the company’s promoters.

The price band for the IPO was at Rs 625-700 per equity share. The issue was subscribed 15.16 times.

Edelweiss Capital was the book running lead manager to the issue.

The Kashyap family has been in the business of construction and allied services since 1978.

The company provides construction solution on “design build” model. The company’s present activities primarily involve construction services including turnkey projects that comprise civil construction, electrical, plumbing, fire fighting, air conditioning and other works.

Central Bank seeks to convert part equity

The Central Bank of India has approached the Centre for converting part of its equity capital into other tier-I instruments such as preference shares, ahead of its proposed initial public offer, IPO, reports Business Standard.

This move, according to bank officials, will help it to reduce the bloated capital base and, thus, charge a higher a premium by improving the earnings per share.

Recently the Mumbai-based bank made a presentation to the government of India and Reserve Bank of India for turning part of Rs 1,124 crore (Rs 11.24 billion) equity capital into other instruments. It is awaiting response from the owner and regulator, senior bank official said.

Initially, the bank wanted to return part of capital to the government as bloated equity base was constricting its earning per share.

The public offer would only happen in next financial year, the official added. The public issue would help raise fresh equity capital as its capital adequacy is expected to fall by 2-3% on implementing the stringent Basel II capital adequacy.

Simultaneously, the public sector bank is also planning to raise up to Rs 500 crore (Rs 5 billion) through subordinated bonds to increase capital base and support business growth.

The RBI's decision allowing banks to treat their investment fluctuation reserves, IFR, as part of tier-I capital has provided the bank additional headroom to raise fresh tier-II capital.

As per the RBI norms, the provisions made towards IFR can be reckoned a part of tier I from April 1, 2006. Earlier it used to be calculated as part of the Tier II capital.

The bank's capital adequacy ratio was 12.15% as on March 31, 2005 with tier-I capital adequacy at 6.08% and tier II at 6.07%. Its IFR at the end of March 2005 was Rs 780.11 crore (Rs 7.80 billion), up from Rs 587.04 crore (Rs 5.87 billion) at the end of March 2004.

Punjab & Sind Bank to launch IPO next fiscal

Punjab & Sind Bank is gearing up to launch its initial public offer, IPO, in the next fiscal. However, the bank, which is wholly owned by the government at present, would decide on the size of IPO later, reports The Financial Express.

After the public issue, the government holding may come down to about 65%.

The bank’s Chairman and Managing Director RP Singh said that the bank was comfortably placed with a capital adequacy ratio of about 14%. “We are fully prepared for the implementation of the Basel II norms in 2007. To further strengthen our position, we are exploring the option of visiting the market,” he said.

Singh said the bank would exceed all projected targets. Its non-performing asset, NPA, which was at 8% in the last fiscal, has come down to 3%. “We hope to bring it down further before the close of the year,” he said. The bank is expected to sell a large chunk of NPA portfolio in 2006-07.

Singh also added that the bank has exceeded its targets in all departments including deposits and lendings. That apart, the bank had earlier projected that it would bring down its net NPA level to 6% from 8%. “However, we have managed to bring it down to 3% already,” he said.

It may be noted that small banks are under pressure to clean up their balance sheets in the wake of the implementation of the stringent Basel II norms. Dena Bank is also all set to settle NPAs to the tune of Rs 600 crore (Rs 6 billion) in the next fiscal.

The banking industry is expected to settle NPAs worth Rs 6,000 crore (Rs 60 billion) in the next fiscal. These fiscal banks including State Bank of India and ICICI settled NPAs to the tune of Rs 4,500 crore (Rs 45 billion).

Wednesday, March 15, 2006

Pratibha Industries to list on March 16

Pratibha Industries will list on March 16 on the stock exchanges. Its BSE ID is 532718 and NSE ID is PRATIBHA. The stock was issued at Rs 120 per share.

The company entered the capital market on February 16 with its initial public offer, IPO, of 42,85,000 equity shares of Rs 10 each through 100% book-building route.

Its price band was fixed at Rs 100-120. The issue was subscribed 21.34 times.

Pratibha Industries, flagship company of the Pratibha Group is promoted by Ajit Kulkarni. Water infrastructure projects are the areas of core strength for Pratibha Industries.

The company has also worked on few projects in road segment and mass housing construction segment.

The book-running lead manager to the issue was Vivro Financial Services and co- manager was Canara Bank, Merchant Banking Division.

Cairn Energy plans IPO of Indian unit

UK-based oil firm, Cairn Energy, which discovered India's biggest oil field in Rajasthan, plans to sell at least 25% of its shares in its Indian business through an initial public offer, IPO, reports The Hindu Business Line.

"We intend to examine a partial initial public offering of our Indian exploration and production business on the Bombay Stock Exchange, BSE," said Bill Gammel, Chief Executive, Cairn Energy.

The company estimates in-place reserves in excess of 3.5 billion barrels in the Rajasthan block - the biggest oil find in India in the last two decades. It upgraded recoverable reserves from Mangala, Bhagyam and Aishwariya - three of the dozen discoveries in the Rajasthan block - by 20% to 606-795 million barrels.

Denying any plans to completely sell-off the Indian business, Gammell said on the company website that Cairn remained in discussion with state-owned Oil and Natural Gas Corporation, ONGC, for a possible stake sale.

Sources said that Cairn was asking for USD 3.8 billion, ONGC was willing to pay only USD 2-2.2 billion. Besides Rajasthan block, Cairn also has 22.5% stake in the 50,000 barrels per day Ravva oilfield and is the operator of Cambay Basin block CB/OS-2, home to 130 million standard cubic feet per day producing Lakshmi and Gauri gas fields and a potential oilfield.

On the IPO, he said that the company might offer a minimum 25% of the equity shares and a maximum of 80%. "It depends on market conditions. It depends on appetite and it depends on value."

The IPO, he said, may happen before oil production commences in Rajasthan fields in 2008.

Atlanta to enter capital market; files DRHP

Atlanta soon proposes to enter the capital market with a public issue of 40,00,000 equity shares of Rs 10 each through 100% book building process. It has filed the draft red herring prospectus, DRHP, with Sebi for the purpose, according to a release.

The company is raising this fund to meet the investment requirements in Balaji Toll Ways; a special purpose vehicle incorporated for the execution of the Nagpur-Khandali four lane BOT project, and for purchase of plant and machinery for mining activities as also for construction and estate business.

It also proposes investment in real estate projects, and partial pre-payment of high cost debt, from the proceeds of this issue.

Atlanta is in the business of construction, realty, infrastructure and mining and its projects extend all over India. The company executes construction contracts for government and semi government agencies.

Currently, it has projects at Lucknow, Uttar Pradesh; Khurda-Bhubaneshwar, Orissa; and Mumbai, Maharashtra.

Karvy Investor Services and UTI Securities are the book running lead managers for the Issue and Karvy Computershare is the registrar.

Tuesday, March 14, 2006

SBI plans follow-on offer in July-Sep

State Bank of India, SBI, may go in for a follow-on public offer in the second quarter of the next fiscal, reports The Financial Express.

Addressing on the sidelines of a Ficci seminar, SBI Chairman AK Purwar said, “The public offer is likely to be worked out during July-September 2006.” He, however, did not say how much the bank planned to raise from the offer.

That apart, Purwar said the bank was exploring the option of stock split. SBI shares, which currently have a face value of Rs 10, were likely to be split into shares of Rs 5 each. The bank also planned to raise over Rs 3,000-4,000 crore (Rs 30-40 billion) debt during the next financial year.

As on December 31, 2005, the government through the Reserve Bank of India held 59.73% in SBI. While the public holds 6.41%, the rest is held by FIIs, mutual funds, financial institutions.

Kewal Kiran Clothing IPO opens on March 20

Kewal Kiran Clothing, leader in denim wear in the country with successful brands such as `Killer', `Lawman', `Easies' and `Integriti', proposes to enter the capital market on March 20, 2006, with an issue of 31,00,000 equity shares of Rs 10 each to part finance its expansion plan, according to a release.

The issue is through 100% book building process and the price band has been fixed at Rs 250-275. The issue closes on March 23, 2006.

The issue would constitute 25.15% of the fully diluted post issue paid-up capital of the company and the shares are proposed to be listed on BSE and NSE.

The company proposes to set up new manufacturing facilities and expansion of its distribution network by opening additional exclusive outlets. The total investment outlay is estimated at Rs 72 crore (Rs 720 million).

Kewal Kiran Clothing is an integrated apparel manufacturer and in the business of designing, manufacturing, branding and selling of ready-made apparels and other accessories under various brands.

In order to have more brand visibility and better reach to the customers with pan India presence and also to expand its reach and serve additional customers in existing and new geographies, the company intends to set up additional 116 exclusive retail outlets in addition to the existing 27 retail outlets across the country called -``K-Lounge''.

The company has four manufacturing facilities at Dadar (Mumbai), Goregoan (Mumbai), Vapi (Gujarat) and at Daman (Union Territory) with a total annual capacity of two million pieces. The distribution channel comprises of a mix of their own stores (K-Lounge) and a network of National Chain Stores, NCS, and Multi Brand Outlets, MBO. As on December 31, 2005, the company has 27 K-Lounge stores and also present at 48 locations of National Chain Stores.

Kewalchand Jain, Hemant Jain, Dinesh Jain and Vikas Jain who have over 20 years of experience in this industry have promoted the company.

The consolidated restated revenues for the year ended March 31, 2005 was Rs 268.42 million as compared to Rs 253.90 million for the year ended March 31 2004. Consolidated restated profit after tax was Rs 38.27 million for the year ended March 31, 2005 as compared to Rs 38.79 million for the ended March 31, 2004.

Enam Financial Consultants is the book running lead manager for the issue and Intime Spectrum Registry is the registrar.

Govt seeks to list four SBI arms

The road map for SBI’s public issue is gaining momentum with the government currently evaluating the proposal to list the bank’s four unlisted subsidiaries - State Bank of Patiala, State Bank of Hyderabad, State Bank of Saurashtra and State Bank of Indore, reports Business Standard.

“The proposal to list the unlisted banks is with the government. The public issue for SBI would come after that,” said A K Purwar, Chairman of SBI, on the sidelines of a FICCI seminar on economic growth. The government was expected to decide on the listing of the associate banks shortly.

SBI’s shares would be split into lower denominations before the public issue so that retail investors can reap the benefits.

Purwar said the bank is considering a stock split and will also raise Rs 3,000-4,000 crore (Rs 30-40 billion) in debt in the next financial year. At present, the bank’s share is priced at a face value of Rs 10 and the share is likely to be split to Rs 5 each.

SBI is also in talks to acquire a loss-making bank in Bangladesh. “We will turn it around,” Purwar said.

SBI has seven associate banks of which four - State Bank of Mysore, State Bank of Bikaner and Jaipur and State Bank of Travancore are listed.

SBI and its associates are governed by the SBI Act and the SBI (Subsidiary Banks) Act.

Pricing differences hold up Air Deccan IPO

Air Deccan will take a while longer to touch down on Dalal Street. Merchant banking sources say the initial public offering planned by the country’s first low-cost airline is likely to be delayed by a couple of months. The maiden issue, earlier expected at the end of this month, has been caught up in differences over pricing, reports The Economic Times.

There was no agreement on price at a meeting between lead managers to the issue and the promoters on Wednesday, sources said. A sub-committee formed by the airline - comprising Air Deccan officials and directors - is expected to meet in the next few days to take a final call on the matter.

Confirming that that there may be a delay in its IPO, G R Gopinath, Managing Director of Air Deccan, said some lead managers issue want the issue to be held back. “We had different views from our lead-managers. The board will decide soon,” he added. Sources said the promoters and merchant bankers could not agree on a price. Stock market volatility has also raised doubts if this was the best time for the issue to get off the block

The lead managers favouring a delay would like the IPO to be launched after two to three months. Enam Financial, JP Morgan India, ABN Amro Securities, ICICI Securities and SBI Capital are the lead-managers.

According to merchant banking sources, the ‘roaring’ success of some of the recent IPOs such as Inox Leisure and Entertainment Network (India) had raised the expectations of Air Deccan promoters. Inox’s issue was oversubscribed 62.25 times while that of Entertainment Network was oversold over 51 times.

“More than the fundamentals of companies, it is the performance of recent IPOs which are becoming the yardsticks,” a senior executive in a leading investment bank said.

Jet Airways’ IPO had become a bell-weather scrip for the aviation sector. About a year back, Jet Airways’ IPO had met with an overwhelming response, with the issue getting oversubscribed 4.4 times. The issue received a total 7.5 crore bids for the 1.72 crore shares on offer at a price band of Rs 950-1,125.

In recent times there has been a reverse in trend of opening boom in newly listed scrips. Companies like GVK Power & Infrastructure and Jagran Prakashan, which have made their debut on the bourses last month on a high note, immediately slipped to the red, earning the ire of investors.

GVK Power shares opened at Rs 350 on the Bombay Stock Exchange (BSE), as against the issue price of Rs 310. It hit a high of Rs400 and a low of Rs 304.55.

Saturday, March 04, 2006

Hutchison plans India IPO in 2006: Reuters

Ports-to-telecoms conglomerate Hutchison Whampoa said today that its cellular carrier in India aimed to go public this year to help fund its expansion in the world's fastest-growing mobile market, reports Reuters.

The company, also the most aggressive investor in European third-generation telecoms, also said that it was eyeing Spain as a potential market for expansion but has not made any decision.

In India, the group's Hutchison Telecommunications International unit has been aiming since last year to list its majority-held Hutchison Essar arm. Part of the delay resulted from the wait for regulatory clarification on how much a foreign company can own in an Indian carrier.

"I think there is every intention for us to go IPO, subject to market conditions. This year will be a safe bet," Hutchison Whampoa Managing Director Canning Fok told the Reuters Global Technology, Media and Telecoms Summit.

RIL has reduced financial flexibility of RCoVL

The Anil Dhirubhai Ambani Group, ADAG, has said that actions by Reliance Industries, RIL, when Reliance Communication Ventures, RCoVL, was under its control have “reduced the financial flexibility” of the Anil Ambani telecom holding company, reports The Economic Times.

In the information memorandum submitted to the stock exchanges ahead of its listing next week, RCoVL said that in the agreement between Mukesh and Anil Ambani last June, RIL had agreed to transfer cash of Rs 3,100 crore (Rs 31 billion) to RCoVL as part of the demerger.

However, it transferred just Rs 372.08 crore (Rs 3.72 billion) when the demerger happened in February this year, RCoVL said, adding that the balance Rs 2,727.9 crore (Rs 27.27 billion) was given in the form of deep discount bonds that Reliance Communications Infrastructure, RCIL, had issued to RIL.

“This has reduced the financial flexibility of RCoVL. The action was taken by RIL (when RCoVL was under its control) and without the knowledge of Shri Anil Ambani’s representative on the RCoVL board,” the memorandum says.

However, industry sources said that the fact that deep discount bonds were issued by RCIL means that the money was paid to the company and that money, in the form of the bonds, has been transferred to the ADAG company.

RCoVL now says that it will take appropriate steps but cautioned that there was no certainty that RIL’s actions will be reversed.

RCoVL is the telecom holding company of the ADAG group. It came into the ADAG fold following the family settlement between the Ambani brothers in June last year. It owns large stakes in Reliance Infocomm, the wireless CDMA service provider, RCIL, which owns the infrastructure backbone and Reliance Telecom, the GSM service provider. RCoVL‘s shares will be listed on the stock exchanges on March 6.

Meanwhile, Reliance Infocomm has been shown to have posted a consolidated net profit of Rs 25 crore (Rs 250 million) for the nine months ended December on sales of Rs 6,813.70 crore (Rs 68.13 billion).

Figures for the year-ago period are not provided, but the company posted a big loss of Rs 2,343.5 crore (Rs 23.43 billion) for the full year ended March ‘05, versus a loss of Rs 548.40 crore (Rs 5.48 billion) in ‘03-04. Earnings before interest, tax, depreciation and amortisation for the nine months ended December was Rs 1,070 crore (Rs 10.70 billion).

The company had a net debt of Rs 1,962.3 crore (Rs 19.62 billion) for the nine months and Rs 5,238.9 crore (Rs 52.38 billion) for the full year of ‘04-05. RCIL, the fibre optic backbone firm, has posted a consolidated net loss of Rs 75 crore (Rs 750 million) for the nine months ended December on net sales of Rs 1,369.5 crore (Rs 13.69 billion). The company had made a bigger loss of Rs 1,915.3 crore (Rs 19.15 billion) for the full year of ‘04-05.

The company had net debt of Rs 1,564.8 crore (Rs 15.64 billion) for the nine months up from Rs 878.2 crore (Rs 8.78 billion) for the full year of ‘04-05.

Both RCIL and RIC recently wrote off over Rs 4,487.1 crore (Rs 44.87 billion) in bad debts and inventory losses.

The information memorandum says that both RIC and RCIL have accumulated losses of Rs 4,890.8 crore (Rs 48.90 billion) as of December ‘05 and warned that some of the operating companies may continue to “incur losses for the foreseeable future”.

RCIL holds an internet service provider licence and also provides internet data collection centres. Its other activities include R World, the data application platform and R Connect the wireless internet access service.

Reliance Telecom, the GSM arm of RCVL, posted a consolidated net profit of Rs 92 crore (Rs 920 million) on sales of Rs 470.8 crore (Rs 4.70 billion) in the nine months ended December. The company had a net profit of Rs 86.9 crore (Rs 869 million) on sales of Rs 452.9 crore (Rs 4.52 billion) for the whole year ended March ‘05.

The company had net debt of Rs 273.5 crore (Rs 2.73 billion) for the whole of last year and Rs 174.8 crore (Rs 1.74 billion) for the nine months ended December.

Malu Paper Mills IPO opens on March 6

Malu Paper Mills is coming out with its maiden initial public offer, IPO, for 66,67,000 equity shares of Rs 10 each at a premium of Rs 20 per share aggregating Rs 20 crore (Rs 200 million), report agencies.

The issue opens on March 6 and closes on March 10. The issue price of Rs 30 per share is three times the face value.

Malu Paper Mills Director DL Malu said yesterday that the company will utilize the proceeds to part finance setting up a new unit at Nagpur to produce 49,500 tonnes per annum of newsprint and writing and printing paper along with 6 MW captive co-generation power plant.

The total investment for this project is estimated at Rs 70 crore (Rs 700 million). The company has raised Rs 45 crore (Rs 450 million) through term loan from banks to fund the project.

The total capacity after the proposed expansion will be 7,75,550 tonnes per annum.

The equity shares are proposed to be listed on the Bombay and National stock exchanges, he added.

Hutch Essar's Rs 4,000cr IPO in Q2

Hutchison Essar’s much-delayed initial public offer plan is back on the track following the revamp of its shareholding pattern. Pending for over a year, the float is likely to hit the market by the end of the second quarter of this financial year, reports Business Standard.

The size of the float is pegged at 10% of the expanded equity base of the company and will be on the back of an estimated internal valuation between USD 8 billion and USD 10 billion. At 10% float, the size of the equity offering works out to over Rs 4,000 crore (Rs 40 billion), making it the largest domestic telecom equity offering.

A key official said: “We are now compliant with the key requirements of the 74% FDI norms. This has resulted in a more simplified structure (which will allow disclosure). The year-long delay is due to the delay in the issuance of the FDI guidelines, the subsequent clarifications and the time taken to settle the shareholding pattern. We are now back on the track.”

Commenting on Essar’s acquisition of Hindujas’ 5% stake in the JV, company sources said it is in line with Essar’s desire to consolidate and hike its holding to 38%, giving it the status of the single largest shareholder in the enterprise.

“We have progressively enhanced our stake and hope to formalise the Hinduja deal shortly,” they added.

A key element of the reorganisation, which Hutchison Telecom International, HTIL, had announced in Hong Kong on Thursday last, is that the company has established a close strategic partnership with Max India Chairman Analjit Singh as well as Hutch Essar MD Ashim Ghosh’s indirect shareholding, held through an investment in one of the joint venture companies - Telecom Investment India, TII. Another key element is that HTIL now gets to nominate the sixth director in the 11-member Hutch Essar board.

As a consequence of the reorganisation and the Kotak group’s divestiture of its 19.5 equity interest in the JV, TII will own this entire stake in the following manner.

While HTIL will get 7.2% in the JV (via its 37% stake in TII), Singh will get 7.6% (via his 39% stake in TII) and Ghosh 4.7% (24% of TII).

HTIL has rights to increase its stake in the investment company in the future subject to certain conditions.

Hetero Drugs plans to tap capital market next fiscal

Hetero Drugs, the Hyderabad-based pharmaceutical company with leadership position in anti-retrovirals, may tap the capital market some time during next fiscal, according to its Chairman and Managing Director, B Parthasarathy Reddy, reports The Hindu Business Line.

Aimed at doubling its topline in the next 5-6 years, the Rs 1,000 crore (Rs 10 billion) company is in the process of expanding its manufacturing capabilities keeping in view the needs of export markets. The company proposes to set up a Rs 250 crore (Rs 2.50 billion) modern facility at Visakhapatnam, Reddy said.

The company plans to spend Rs 150 crore (Rs 1.50 billion) for bulk drugs manufacturing capabilities and Rs 100 crore (Rs 1 billion) on finished dosages unit. Both the facilities would take off in the next couple of years, Reddy said.

"In a low-interest regime, we foresee no problem in raising low-cost funds for implementing our projects. However, some of the global investors have been showing keen interest in picking up holding in our company. Keeping this in view we may consider IPO some time during next fiscal. We may dilute our holding in a limited way. However, we would not be interested in tapping the market for an amount less than Rs 500 crore (Rs 5 billion)," Reddy said.

Two-pronged strategy

Buoyed by the recent success of emerging the first Indian pharma company to obtain sub-licence from Roche to manufacture bird flu drug (Tamiflu), Hetero Drugs has chalked out a two-pronged growth strategy.

As a part of this, the company proposes to focus on around 50 globally proven therapeutic drugs where the patents expired. The second strategy is to screen at least 100 products in the next few years and aggressively file drug master files in the regulated markets. Hetero currently has a product portfolio of 40 drugs.

According to Reddy, following the company's proven performance in producing and supplying sub-licensed drug much before the deadline, Hetero has been receiving enquiries from several MNCs for sub-licensing their drugs to the Indian company.

"At present, we are actively negotiating with a couple of MNCs in this direction," he said.

Assurance to MNCs

Hetero proposes to ensure comfort to the MNCs by assuring them that the company would respect the original patents and it would in no way compete with its customers.

JHS Svendgaard plans IPO to fund project

Oral care products manufacturer JHS Svendgaard Laboratories is setting up a manufacturing facility at Kalamb, Himachal Pradesh, at an investment of Rs 50 crore, reports The Hindu Business Line.

The first phase of the project would be implemented by May this year and the second phase would be ready by January 2007, according to Nikhil Nanda, Managing Director of the company.

After the proposed manufacturing facility in Himachal Pradesh goes on stream, the company's annual toothbrush manufacturing capacity would go up to 125 million pieces from 40 million pieces.

The company is planning an initial public offering to fund its Himachal Pradesh project.

Addressing a news conference yesterday, Nanda said that in the last 10 years, JHS had established a firm foothold in the domestic and international markets. The company's list of customers includes several Fortune 500 companies and the country's top FMCG companies for their private label brands.

The company has been awarded the top exporter award for toothbrushes and dental plates by PLEX Council of India, Union Ministry of Commerce.

Oral care products manufactured by the company are exported to the US, UK, France and West Asia, among other geographies. Around 50% of the company's turnover is accounted for by exports.

In addition to toothbrushes and other oral care products, JHS Svendgaard has developed products such as teeth whitening gel, anchorless toothbrush, effervescent tablet and a whitening and anti-plaque mouth rinse.

Birla Power to raise funds through public issue

Yash Birla Group company Birla Power Solutions, BPSL, has decided to raise funds through the public issue of equity shares, report agencies.

BPSL proposed to issue further equity shares by way of a public offer and made reservation of 12 lakh equity shares of Rs 10 each for the shareholders of the group companies - Birla Kennametal, Zenith Birla, 3M India, Dagger-Frost, Birla Transasia and Shloka Infotech.

The group companies have fixed March 10 as the date for determining the details of shareholders eligible to apply in the 'reservation category' in the proposed public issue by BPSL.

All the seven Yash Birla Group companies informed the stock exchanges about the public offer.

Gallantt Metal to raise Rs 37.12cr through IPO

Gujarat-based Gallantt Metal will raise Rs 37.12 crore (Rs 371.2 million) from the capital market with issue of 371.20 lakh equity shares of Rs 10 each at par to part finance a Rs 190.82 crore (Rs 1.90 billion) vertically-integrated greenfield steel plant at Gujarat, report agencies.

The company has raised Rs 114.50 crore (Rs 1.14 billion) as term loans while promoters' contribution has been Rs 45.2 crore (Rs 452 million).

"Of the issue, 60 lakh equity shares is contribution from promoters, 5% has been reserved for the permanent employees while the net offer to public is 295.64 lakh equity shares," company CMD CP Agrawal said.

Issue opens on March 6 and closes on March 10.

The first phase of the two-phase integrated steel plant comprises of sponge iron division of 99,000 tonnes per annum capacity, a MS Billets division of 1,76,429 tonnes per year and re-rolled products division with 1,68,300 tpa.

The commercial production of phase one has already commenced from December 2005.

Company has begun the implementation of second phase for installing 18 MW captive power plant to be commissioned by October, 2006.

Gallantt is presently utilizing 60% of its capacity and plans to utilize complete capacity by 2008.

"We will increase our capacity utilization every year by 10% and plan to make it 100% by 2008," company Director Nitin Kandoi said.

Company is also planning to launch special steel and alloy, he said.

Reliance Comm Ventures to list on March 6

Reliance Communication Ventures will list on March 6 on the stock exchanges. Its BSE ID is 532712 and NSE ID is RCVL.

Technocraft Industries plans Rs 80cr IPO

Mumbai-based Technocraft Industries (India) has plans to enter the capital market with an IPO of Rs 80 crore (Rs 800 million) by April 2006, reports The Hindu Business Line.

The funds would be utilised for its expansion plans of Rs 125 crore (Rs 1.25 billion).

The company has diverse interest in drum closures, steel tubes, scaffoldings and cotton yarn.

It has a network of subsidiary companies and warehouses in United Kingdom, Poland, Hungary, Germany, and USA.

For its textile division the company is setting up a cotton yarn mill with 27,640 spindles to produce finer counts, which will add to its already existing capacity of 35,904 spindles.

It will entail an outlay of Rs 66.89 crore (Rs 668.9 million), of which Rs 13.37 crore (Rs 133.7 million) would be funded through the proposed IPO and the balance of Rs 53.52 crore (Rs 535.2 million) has already been tied up through a rupee term loan from Bank of India.

Mahindra to list Tech Mahindra, Mahindra Holidays

After the huge response to the initial public offer, IPO, of Mahindra and Mahindra Financial Services, group Chief Anand Mahindra said he was looking to take two other group companies, Tech Mahindra and Mahindra Holidays, on the public route, report agencies.

"We will be coming out with IPOs of the two companies," Mahindra said on the sidelines of the Indio-US CEO Forum meeting, organised by CII.

However, he declined to divulge the exact timing of the IPOs. "We are studying that and I cannot reveal it now," he said.

The IPO of M&M Financial, through the book-build route, has been priced at the upper price band of Rs 200. The issue, which will see M&M earn close to Rs 200 crore (Rs 2 billion) by diluting its equity holding from 89.8% to 67%, was oversubscribed nearly 27 times.

Tech Mahindra, earlier called Mahindra-British Telecom, is a large telecom software and services company. It is a 57:43 per cent joint venture between Mahindra & Mahindra and British Telecom. On the other hand, Club Mahindra Holidays is a leading lifetime holiday company.

Hutch IPO in Q2FY07 may be priced at Rs 800

Hutchison Essar Ltd may price its IPO slated in Q2FY07, at around Rs 800 per share and that would give the company a market cap of Rs 54,000 crore on listing. The company is planning to divest 10% ofits equity capital of Rs 340 crore according to Sumeet Rohra of Antique Stock Broking.

Hutchison Essar Ltd may price its IPO, slated in Q2FY07, at around Rs 800 per share and that would give the company a market cap of Rs 54,000 crore on listing. The company is planning to divest 10% of its equity capital of Rs 340 crore according to Sumeet Rohra of Antique Stock Broking.

Hutchison Essar is planning to come out with an IPO sometime in the second half of the next fiscal according to newspaper reports. The company is planning to divest 10% of its equity at an estimated price of Rs 800, which would give the company a market capitalization of Rs 53,000-54,000 crore according to market sources.

The company was in news recently as the Kotak Mahindra Bank sold 8.33% stake back to Analjit Singh of Max India at a whopping Rs 1,019 crore. Singh had apparently sold 5% of his holding in Hutchison to the Essar Group in the month of October at Rs 603 per share.

Hutch has a subscriber base of 1.3 crore against Bharti’s 1.75 crore. On a comparative basis Bharti’s enterprise value is pegged at USD 12.6 billion vis-à-vis USD 6.5 billion for Hutch.

According to Rohra, the company could possibly price its IUPO in the range of Rs 800 per share and could turn out to be the biggest blockbuster stories in the telecom sector in the years to come.

Recent newspaper reports have put India ahead of China in terms of mobile subscribers added per month. Compared to China’s 5 million new subscribers last month, India has added 5.3 million new subscribers and that augurs well for the future of Indian telecom, Rohra said.

The Hutch stake sale by Kotak Mahindra gives the company a rough valuation figure of USD 6 billion. Hutch Essar has an equity capital of Rs 340 crore and a divestment of 10% stake at around Rs 800 per share can catapult Hutch Essar in the market league of Bharti Televentures with a market cap of Rs 54,000 crore on listing. Bharti’s market cap (at today’s price) is around Rs 77000 crore.