Indian IPO

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Monday, April 03, 2006

Usher Agro plans for IPO: files DRHP

Usher Agro, an agri-processing company, proposes to enter the capital market with an initial public offer, IPO, of 1,20,12,000 equity shares of Rs 10 each at a premium of Rs 5 per share for cash aggregating to Rs 1801.80 lakh, as per the company announcements.

The issue constitutes 66.69% of the post-issue paid up equity capital of the company.

The proposed issue includes 32,00,000 equity shares at a price of Rs 15 aggregating to Rs 480 lakh as promoter’s contribution .The balance 88,12,000 equity shares would be the net offer to public. Of the net offer to public a minimum of 50% will be made available to retail investors on a proportionate basis.

The company is raising funds through this fixed price public issue to fund the wheat roller flour mill at Mathura of the capacity 250 MT per day, modernization of the existing rice mill plant at Mathura and to set up a new 1 MW co-generation power plant based on rice husk at Mathura for the captive consumption.

The company in its draft prospectus filed with the securities and exchange board of India, SEBI, for its proposed public issue of equity shares has offered retail investors a safety net scheme.

The scheme is being offered by the IDBI Capital Market Services, which is also the sole lead manager to the proposed issue.

Under the safety net scheme, IDBI capital offers to buy back upto 800 equity shares from original resident individual allottees at the issue price of Rs 15 per share. The scheme will be open for a period of six months from the date of allotment of equity shares of the proposed issue.

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