Indian IPO

All details about Hot Indian Primary Market.

Tuesday, July 25, 2006

Tech Mahindra IPO opens on August 1

IT solutions company, Tech Mahindra will open its IPO on August 1, 2006 for subscription.

The price band has been fixed at Rs 315-365 per share.

M&M is to divest 60 lakh equity shares for Rs 189-219 crore (Rs 1.89-2.19 billion) of Tech Mahindra.

Tech Mahindra is planning to have centres in Noida, Chennai, Hyderabad, Kolkata and Chandigarh with an investment of Rs 350 crore (Rs 3.5 billion). The centres in Kolkata, Chandigarh and Noida will have capacity to seat 2,000 professionals each.

Tech Mahindra is planning to develop its centres in Kolkata, Chandigarh and Pune as special economic zones, which offer a host of tax concessions.

In the last three years, the company's revenue has grown by around 30% from Rs 742 crore (Rs 7.42 billlion) in 2004 to Rs 1,245 crore (Rs 12.45 billion) in 2006. Its net profit has grown from Rs 64 crore (Rs 640 million) to Rs 235 crore (Rs 2.35 billion) during the same time.

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

Kotak Mahindra Capital Company and ABN AMRO Securities (India) are the book running lead managers and Intime Spectrum Registry is the registrar to the issue.

Friday, July 21, 2006

GMR Infrastructure IPO opens on July 31

GMR Infrastructure, a business house with major interests in energy and transportation, is entering the capital market with an initial public offering of 38,136,980 equity shares of Rs 10 each through 100% book building process.

The price band has been fixed at Rs 210-250 per share. The issue opens on July 31, 2006 and closes on August 04, 2006.

The company is raising the amount for the purpose of investment in various SPVs and to repayment of unsecured loans.

The company said a part of the IPO proceeds would go for the power trading, transmission and distribution businesses, which the company plans to enter. The remaining will be used for the ongoing road projects.

ICICI Venture picked minority stake in the company and bought 5% stake for Rs 250 crore (Rs 2.50 billion).

The equity shares of the company are proposed to be listed on the Bombay Stock Exchange, BSE and the National Stock Exchange of India, NSE.

JM Morgan Stanley, ENAM Financial Consultants, DSP Merrill Lynch and SSKI Corporate Finance are the book running lead managers and Karvy Computershare is the registrar to the issue.

Wednesday, July 12, 2006

GMR Infra may price IPO at Rs 260-270 per share

GMR Infrastructure, which is building a new airport in Hyderabad and has the mandate for modernising the New Delhi airport, is likely to price its proposed initial public offering, IPO in the range of Rs 260 to Rs 270 per share reports The Economic Times.

The IPO is scheduled to hit the market by the end of July, merchant banking sources close to the development said. The proposed issue comes at time when several other issuers have deferred their plans to raise capital due to choppy conditions in the local market.

The infrastructure provider, which is also into road construction and power business, is offering 3.31 crore shares of Rs 10 each translating into 11.3% of the equity through a 100% book building process.

The company has already privately placed a chunk of capital with various local and global investors on a pre-IPO placement basis subject to a total dilution of 13.5% as net offer. GMR plans to mobilise close to Rs 895 crore (Rs 8.95 billion) through the IPO.

As part of the pre-IPO private placement, ICICI Ventures had picked up a 2.89% stake for close to Rs 250 crore (Rs 2.50 billion), while Quantum Fund had acquired 0.75% for about Rs 67 crore (Rs 670 million). Of the other investors, PNB had acquired a 0.30% stake for about Rs 27 crore (Rs 270 million), Citi group paid Rs 100 crore (Rs 1 billion) for 1.12%, which peg the valuation of GMR Infra at Rs 7,900 crore (Rs 79 billion).

The company intends to use part of the issue proceeds, besides general corporate purposes, for investment in various infrastructure special purpose vehicles, which are currently in the development stage. These include an investment of Rs 196 crore (Rs 1.96 billion) in Hyderabad and Delhi airports and another Rs 463 crore (Rs 4.63 billion) for four road projects.

JM Morgan Stanley, DSP Merrill Lynch, Enam Financial Consultants and SSKI Corporate Finance are the book running lead managers for the issue. The company currently generates all its revenues from the power and road businesses.

Godrej Properties weighs public offer

Godrej Properties is talking to real estate funds for its projects and may even consider an initial public offer, IPO at a later date reports Business Standard.

Addressing a press conference to announce the launch of CESC-Godrej Plaza, the first retail initiative from Godrej Properties, Pirojsha Godrej, manager-corporate development said the company was in talks with international real estate funds and it would be project specific.

On whether the company would consider an IPO, Godrej said a decision would be taken over the next 24 months. Godrej Industries has 80% stake in Godrej Properties.

At present, Godrej Properties has 11 million square feet under development and proposed development. Of this, Kolkata accounts for around four million square feet.

Godrej said the investment in Kolkata would be Rs 300-400 crore (Rs 3-4 billion). Godrej Properties has three projects lined up for Kolkata, two information technology (IT) parks and one mall with CESC.

The company is mostly in the residential space but is planning to diversify into commercial and retail over time.

Godrej said, over time the company would have an exposure of 50% in residential and the balance would be spread between residential and retail.

"We are primarily in the residential space now," he said. Two years back, Godrej Properties had a presence only in Mumbai and Pune but the now the company was going national would soon be in Chennai, Hyderabad and Delhi.

Saturday, July 08, 2006

BSE to divest 51% equity; proposes IPO

The Bombay Stock Exchange proposes to divest 51% of its equity – 26% to a strategic investor and 25% to public through an IPO, reports The Hindu Business Line.

The BSE has appointed Kotak Mahindra Capital Company as advisors for the dilution of the equity.

The oldest stock exchange in the country that has corporatised itself recently, is required to reduce its members stake from 100% to 49% as per the regulations.

Rajnikant Patel, managing director and CEO of Bombay Stock Exchange, on Friday said the exchange is awaiting guidelines from the Securities and Exchange Board of India on the dilution of equity.

According to the plan, 26% of the equity will be allotted to a strategic investor - either Indian or international including multilateral agency and banks, or other stock exchanges. In the next stage, 25% of the equity will be offered to public and the exchange will get listed, said Patel.

He said the process of equity dilution would have to be completed by May 2007. However, the BSE is thinking of completing the process by December 2006.

The commodity bourse MCX is the first exchange in India to finalise plans to go in for listing.

MCX had filed the draft prospectus with Sebi and it is expected to come out with the issue shortly.

Patel was speaking at a function to celebrate the 132nd foundation day of the BSE.

On the occasion, BSE has launched a website in Gujarati. "Very few institutions have reached this landmark and by launching a website in Gujarati, we are trying to reach to the lowest common individual in capital market," said Patel. The link for the website is available on the BSE-India website.

Patel also announced that BSE's website in Hindi would be launched by Diwali this year.

Friday, July 07, 2006

Kingfisher shelves IPO plan

After toying with the idea for over a year, the UB group-promoted Kingfisher Airlines has abandoned the plan for an IPO. The company was planning to raise about USD 200 million through an IPO in 2006. But, it is now having second thoughts about the viability of the option, sources said, reports The Economic Times.

A UB source said with the volatility in the market, the company would not consider this route for at least another year.

Kingfisher Airlines has the paid-up capital of over Rs 370 crore (Rs 3.70 billion). Group shareholding in the company, a 100% UB group subsidiary, will be diluted only when the company gets a proper valuation, sources said.

Large players in the civil aviation industry, who have recently opted for the IPO route, include Jet Airways and Air Deccan.

Jet Airways, India's largest carrier by market share, came out with an IPO in February 2005, with Rs 1,100 per share.

The IPO was a major success as it was heavily oversubscribed Air Deccan, however, managed to scrape through in a volatile market in March. The other airline listed in the stock exchange is the Delhi-based SpiceJet.

Thursday, July 06, 2006

Idea Cellular looking at IPO

After taking full control of its cellular venture, Aditya Birla group company, Idea Cellular is looking at the possibility of an initial public offer, IPO besides expanding services with three new circles rollout in the next three months, reports The Hindu Business Line.

"At some point of time the company would go public", Sanjiv Aga, managing director, Aditya Birla Nuvo, said here on the sidelines of a cellular function. However, sources said the company would be assessing the situation on an IPO now and take view accordingly.

Idea Cellular, which is keen to enter the Mumbai circle and for which it has already applied to the department of telecom for permission, is waiting for the approval. "The application is still pending with the Government", Aga said. In rest part of the country, it is planning to enter into three new circles.

"We are rolling out in three new circles Himachal Pradesh, Rajasthan and Eastern UP in the next few months. The company will also take a view whether to enter into national long distance in the next few months", Aga said.

The current eight circles are - Haryana, Delhi, UP (W), Gujarat, Maharashtra and Goa (one circle), MP and Chhattisgarh (one circle), AP and Kerala.

The combined holding of Aditya Birla Group companies in Idea stands at 98.3%, which includes Aditya Birla Nuvo with 35.7%, Birla TMT Holdings 44.9%, Grasim Industries 7.6% and Hindalco Industries 10.1%.