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Wednesday, September 20, 2006

Minar Intl IPO opens on Sept 25; price fixed at Rs 108-115

Minar International, a leading exporter of made-ups to the US markets, proposes to enter the capital market on September 25, 2006 with an IPO of 69,23,077 equity shares of Rs 10 each through 100% book building process in the price band of Rs 108 to Rs 115 per equity share, as per press release.

The issue closes on September 29, 2006. The issue will constitute 28.49% of the post issue paid-up capital of the company.

The issue is being made through the 100% book building process where up to 50% of the net issue to the public shall be allocated on a proportionate basis to qualified institutional buyers, QIBs. 5% of the QIB portion shall be available for allocation on a proportionate basis to mutual funds only and the remainder of the QIB portion shall be available for allocation on a proportionate basis to all QIBs, including mutual funds, subject to valid bids being received at or above the issue price.

Further, at least 15% of the net issue to the public shall be available for allocation on a proportionate basis to non-institutional bidders and at least 35% of the net issue to the public shall be available for allocation on a proportionate basis to retail individual bidders, subject to valid bids being received at or above the issue price.

The actual issue size was 80,00,000 equity shares, out of which Minar International has already made a pre-issue allotment of 10,76,923 equity shares valued at Rs 1613.95 lakh in June 2006 to two leading US buyers, reducing the size of the public issue to 69,23,077 equity shares. This include allotment of 7,69,231 equity shares to Bristol Associates, USA, at a price of Rs 150.28 per equity share and 3,07,692 equity shares to Sunham Home Fashions L.L.C. USA at Rs 148.84 per equity share. Earlier in May 2006, the company had allotted 3,07,692 equity shares to Sunham Home Fashions LLC of USA at a price of Rs 145.95 per equity share and 1,53,846 equity shares to Bristol Associates of USA at Rs 145.78 per equity share.

The company proposes to utilize the net proceeds of the issue for its expansion plan involving setting up of a wider width fabric processing unit - in SIPCOT Industrial Growth Center, Perundhurai, Erode Dist, Tamil Nadu. This strategic location is selected because the highest amount of grey fabrics is woven around this area of Tamil Nadu particularly in reference to fine and super fine fabric categories.

Keynote Corporate Services is the BRLM for the issue and Intime Spectrum Registry is the registrar. The equity shares are proposed to be listed on BSE and NSE.

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