Indian IPO

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Tuesday, February 28, 2006

XL Telecom plans Rs 60cr IPO

Secunderabad-based XL Telecom, an assembly partner of Kyocera Wireless Corp, is planning an initial public offering, IPO, of around Rs 60 crore in the next few months, reports Business Standard.

Anand Rathi Securities and Centrum Capital will be the lead managers for the issue. Kyocera Wireless is a global manufacturer of CDMA wireless phones.

Vasudeva Rao, Executive Director of XL Telecom, said, “We will be going for an IPO in May and will be filing the prospectus in March. We will be taking the book-building route and have finalised on Anand Rathi Securities and Centrum Capital as the lead managers.”

Funds are being raised for meeting the financial needs of the company’s expansion plans. XL Telecom plans to set up an assembly line based on surface mount technology, which is basically a manufacturing process where components are attached on the surface of the printed circuit board, instead of being fitted with wire leads into holes in the circuit board.

XL Telecom is also into manufacturing of solar panels, jointing kits and switch mode power supply units. The company is also looking at setting up an export-oriented manufacturing facility for solar panels. “The solar panels that we manufacture are of 100 watts capacity and meet the requirements of the domestic market. We will be manufacturing solar panels with 200 watts capacity for the European market,” Rao said.

At present, the company has an equity base of Rs 10.54 crore (Rs 105.4 million) with the holding of the promoters being 51%. Post issue, the equity base will increase to Rs 14.4 crore (Rs 144 million) and the promoters’ holding will come down to 38%.

Around 27% stake will be offloaded to the public and 5% of the public issue will be reserved for the employees.

XL Telecom ended last year with revenues of Rs 300 crore (Rs 3 billion) and will be closing this year (June 30, 2006) at Rs 450 crore (Rs 4.50 billion) revenues.

GMR Infra likely to hit IPO trail soon

GMR Infrastructure, the holding company of the Rs 3,000 crore (Rs 30 billion) GMR Group, is set to hit the IPO trail in two months’ time. It is expected that the company might raise close to Rs 1,000 crore (Rs 10 billion) through an IPO to fund its aggressive expansion plans in the infrastructure sector, reports Business Standard.

Company officials indicated that May-end is a time-frame they are targeting for the issue. The company is going in for this IPO primarily to fund its greenfield airport project in Hyderabad and also for the modernisation of the Delhi airport. In addition to this, the group has interests in power generation and building highways.

For the record, however, a GMR spokesperson said that they were ready for an IPO but the timing would be decided after the modernisation issue was vacated by courts.

GMR Group in pact with Fraport recently won the bid to modernise the Delhi airport by beating stiff competition from Reliance. GMR-Fraport had initially offered 43.64% revenue share to the government for the Delhi airport and eventually matched the highest bid of Reliance by offering 45.99% revenue share.

GMR increased its offer after it was given a choice to match Reliance’s bid backed by the fact that GMR’s bid was technically better. Reliance has dragged this issue to the court where it is pending. In terms of cash flow, the GMR-Fraport combine will have to pay Rs 150 crore (Rs 1.50 billion) to Airport Authorities of India, AAI, and invest around Rs 2,800 crore (Rs 28 billion) in Delhi in the first phase, expected to be completed by 2010.

Besides this, GMR has also kick-started work for its Rs 1,760 crore (Rs 17.60 billion) Hyderabad International Airport, HIAL, which is expected to start functioning from early 2008. GMR is financing this project through an equity of Rs 378 crore (Rs 3.78 billion), debt of Rs 960 crore (Rs 9.60 billion), interest-free loan from the Andhra Pradesh government (APG) of Rs 315 crore (Rs 3.15 billion) and a state support grant of Rs 107 crore (Rs 1.07 billion).

The project cost of Rs 1,760 crore (Rs 17.60 billion), having a debt-equity ratio of 1.2:1, includes an additional contingency of Rs 97 crore (Rs 970 million).

HIAL is a joint venture of GMR Infrastructure, Malaysia Airport Holdings Berhad, MAHB, AAI and APG. While GMR has a 63% stake in the project, MAHB has 11% equity holding and AAI and APG have 13% shareholding each.

Reliance Petroleum IPO filing this week: Sources





Reliance Industries plans to file for the USD 1.3 billion initial public offering, IPO, of its Reliance Petroleum subsidiary this week in what would be India's largest new listing, sources familiar with the matter said on Monday, reports Reuters.

Sources said the IPO would represent about 20% of post-issue equity, valuing the refineries firm at about USD 6.5 billion. That would make it a top 20 listed Indian firm with a market value similar to Tata Motors, according to Reuters data.

The company also plans to raise USD 3.5 billion in debt.

The local joint ventures of Merrill Lynch and Morgan Stanley - DSP Merrill Lynch and JM Morgan Stanley - are lead underwriters, while co-leads include ICICI Securities, Enam Financial Consultants, SBI Capital Markets and Citigroup, sources said.

Reliance said last month it would raise USD 1.1 billion to USD 1.3 billion to help fund a USD 6 billion refinery expansion and also plans an initial USD 750 million move into retail.

That would be India's largest ever IPO, trumping the USD 1.17 billion debut of Tata Consultancy Services in 2004 and National Thermal Power Corp.'s similar sized offering that same year, according to market data firm Dealogic.

The issue may hit the market in April, sources said.

The oil and petrochemicals company plans to nearly double its capacity at its 660,000 barrels-per-day facility, making it the world's single largest oil refinery.

Birla Power public issue by March this year



Birla Power Solutions would come out with its second public issue by March this year to raise Rs 60 crore (Rs 600 million) to fund expansion plans, report agencies.

The issue has been cleared by Sebi and institutions. Keynote Securities would be the lead manager to the issue and post issue the company would continue to be listed in BSE, Birla Power Solutions Oresident and CEO Sanjay Khazanchi said.

As part of its plans to be a complete power solutions company, Birla Power has planned to foray into higher powered genset (50 KVA) segment, expand the inverter producing capacity to one lakh units per annum from 35,000 units in its Dehra Dun plant and get into the accoustically developed power solutions business, Khazanchi said.

The proceeds of the issue would be entirely used for the expansion of the plant at Uttaranchal, he said.

Birla Power has already tied up with Lister Petter (UK) for sourcing engines and with Briggs and Stratton (US) for environment friendly LPG based generators. The high powered "Birla Ecogen" gensets would range from 0.5 KVA to 50 KVA power capacity and can used for back ups by business institutions. The products are ranged between Rs 15,000 to Rs 5 lakh.

"We are looking at alternate fuel solutions with CNG and LPG and have tied up with HPCL for co-branded LPG products," he said.

Birla Power also launched Birla Kipor Diesel engines and pumpsets to tap the rural market.

The Rs 100 crore (Rs 1 billion) Birla Power Solutions is also exploring export markets in Latin America, South Asia market and Nigeria. "We are planning an assembly plant in Nigeria," he added.

Today’s Writing plans to float Rs 40cr IPO by March



Today’s Writing Products, a company so far associated with low-end (Rs 2-12) ball pens, is planning major expansion. It is going to roll out a line of high-end writing instruments in the above Rs 100 category. These pens would be sold under a new brand, Wordsworth, and not under Today’s, reports Business Standard.

Ronald Netto, Director, Today’s Writing Products, said, “We would have an exclusive supplier arrangement for these (new high-end) products, and these should be out in about four months.”

Netto admitted that Wordsworth would be more of a “high visibility-low volume” brand, especially if compared with Today’s that sees a daily volume of about 1.5 million pieces. The upper limit, as far as the pricing goes, could be as high as around Rs 4,000.

These pens would also be retailed through exclusive pen boutiques, which would be a part of the larger stationery chain, Today’s Stationery Shop, which the company plans to set up over the next two quarters. “We have our plans in place, but finding a suitable location is taking a little long,” said Netto.

The first of these stores is likely to come up in Ahmedabad with Mumbai and Delhi being other two cities the company has identified.

Today’s Stationery Shops would stock all kinds of stationery products such as office stationery and kids’ products like crayons. The company would either source the products from other suppliers or take up agencies for them. “We will initially set up a few stores on our own, after which we will look at giving out franchisees. The company already has a network of 1,500 distributors, which should make it easier to roll out these plans,” he said.

Besides, the company’s export-oriented unit, EOU, in Daman is also expected to become functional in about three months.

The world export market is pegged at about Rs 500 billion, of which the country shares about 2%.

“We have already started exports to countries such as the UK, Japan, the Middle East and Thailand, among others,” said Netto. The UK-based Poundland, a major retail chain of Europe, is one of the largest buyers of Today’s pens sold under the Today’s brand.

The company is planning to float its IPO, of Rs 40 crore (Rs 400 million), by March.

Monday, February 20, 2006

BL Kashyap & Sons to raise Rs 200cr from IPO

Construction firm BL Kashyap & Sons will raise Rs 200 crore (Rs 2 billion) from the capital market through an initial public offer of 27.5 lakh equity share with a greenshoe option of 2.5 lakh equity share to meet its capital expenditure and working capital requirement, report agencies.

The IPO, which opened today, is being made in a 100% book building process. The price band for the IPO had been fixed at Rs 625-700. The issue will close on February 23, 2006.

Post issue, the promoters (Kashyap and family) stake in the company will come down to 71.02%.

"We will raise about Rs 200 crore (Rs 2 billion) from the market at the higher end of price band. Of which Rs 70-80 crore (Rs 700-800 million) will be for capital expenditure and another Rs 70-80 crore (Rs 700-800 million) for working capital requirement," company's Managing Director Vineet Kashyap said.

The company also proposed to invest an amount of Rs 20 crore (Rs 200 million) in its wholly owned subsidiary BLK Furnishers and Contractors, Kashyap said.

He said the company at present was having a contract work of almost Rs 800 crore (Rs 8 billion), all from private concerns, which would be completed over a period of 4-12 months.

The turnover of the company, which provides one stop construction solution on 'design build' model to sectors like residential and commercial offices, hospitals and hospitality, industrial, IT/ITES, malls and multiplexes, was Rs 314 crore (Rs 3.14 billion) with a net profit of Rs 12.17 crore (Rs 121.7 million) last fiscal.

"We have already crossed the net profit of last year in the six months period of the current fiscal and we hope to maintain the growth of 60-70% year-on-year," he said.

Friday, February 17, 2006

Emkay Share plans Rs 90-100cr IPO, files DRHP

Emkay Share & Stock Brokers has filed its draft red herring prospectus with the Securities and Exchange Board of India, Sebi, to raise funds for its expansion plans, estimated to be in the region of Rs 90-100 crore (Rs 900-1000 million), reports The Hindu Business Line.

The company will issue fresh shares of 62,50,000 shares through 100% book building route, a release said.

The company, incorporated in 1995, holds membership in the Bombay Stock Exchange, National Stock Exchange and commodity exchanges of MCX and NCDEX (through its associate/subsidiary companies).

MSPL files DRHP with Sebi

MSPL, flagship company of the Baldota Group, has filed its draft red herring prospectus, DRHP, with the Securities & Exchange Board of India, Sebi, for a public offer of 1,33,56,522 equity shares of Rs 5 each through offer for sale for cash at a premium to be decided through a book-building process, according to a release.

In addition, the offer also includes a greenshoe option of 20,03,478 equity shares of Rs 5 each to be issued for cash at a premium.

The offer for sale of shares is by the Baldota family and constitutes 17.39% of the fully diluted post offer equity capital.

If the green shoe option is exercised in full, the offer to public would constitute 20% of the fully diluted post offer equity capital.

The book running lead manager to the issue is DSP Merrill Lynch and the senior co-book running lead manager is Kotak Mahindra Capital Company.

MSPL is one of the leading iron ore mining, processing and exporting companies in India and is over four decades old.

West Asia Maritime to go public next month

The Chennai-based shipping company West Asia Maritime, WAM, plans to hit the capital market with an initial public offer, IPO, by March this year, reports Business Standard.

Although the size of the IPO is not known, sources say the company is likely to offer 25% of its stake.

West Asia Maritime, promoted by the USD 2.3 billion Dubai-based Emirates Trading Agency Llc, ETA, is primarily into dry bulk operations.

The company, along with its Singapore-based subsidiaries West Asia Maritime Overseas, and WAM Singapore, owns and operates a fleet of 23 bulk carriers and two chemical tankers.

"Enam Financial Consultants and ICICI Securities have been appointed as book running lead managers for the issue," highly placed sources said.

West Asia Maritime and its subsidiaries have reported a combined turnover of Rs 997.13 crore (Rs 9.97 billion) with a profit of Rs 74.7 crore (Rs 747 million) during the financial year ended March 31, 2005. The company had moved 13.08 million tonne of cargo during FY05.

The company recently signed a USD 33.52 million memorandum of understanding with Japanese company Mitsui & Company for acquiring 56,120 dead weight tonne bulk carrier under bareboat purchase option.

Under the bareboat deal, WAM would get the vessel for a elongated period with minimal investment and also have a purchase option.

WAM can now buy the asset at any time during the charter period at a pre-determined price.

"This new vessel will be delivered in the first quarter of 2008. This vessel will be chartered for 12.5 years and trading worldwide for the movement of dry bulk cargoes," sources said.

The major part of WAM's income comes from the vessels it owns and operates. The company has also entered the bulk chemical business for movement of sulphuric acid, phosphoric acid and vegetable oil.

WAM also offers freight cover to major trading houses through its wholly-owned subsidiary WAM Overseas by chartering vessels. The company charters over 60 vessels to meet its contractual obligations.

WAM's other subsidiary, WAM Singapore, caters to leading trading houses such as Glencore AG-Zurich, OCP, Gujarat NRE, Cargill, Mosaic, Conagra, Reliance Industries, and Iffco.

Solar Explosives plans IPO of 44 lakh shares

Solar explosives, the largest manufacturer of bulk explosives in India, plans to hit the capital market with an IPO of 44 lakh shares.

Solar explosives, the largest manufacturer of bulk explosives in India, plans to hit the capital market with an IPO of 44 lakh shares.The issue is meant to set up support & transfer plants for bulk explosives. It will also facilitate setting up units to make cartridge explosives & magazines.

Its Director R D Vakil says that the company has a plan of setting up bulk explosive units at 13 different locations in two phases.

Wednesday, February 15, 2006

Sun TV files for IPO

Sun TV Ltd, a leading television broadcaster in Tamil Nadu and Kerala and among the major players in that business segment in the country, has filed the red herring prospectus for its proposed IPO.

It intends to come out with a fresh equity issue of 68,89,000 equity shares of Rs 10 each for cash, to be made entirely through the book building route. The issue will constitute 10 per cent of the fully diluted post issue paid-up capital of the company.

Following the issue, the shareholding of its promoter, Mr Kalanithi Maran, will reduce to 89.99 per cent from 99.99 per cent.

Kotak Mahindra Capital Company is the book running lead manager and DSP Merrill Lynch is the senior co-book running lead manager.

The issue proceeds will be used to beef up Sun's subsidiaries, launch more TV channels, construct its own corporate office, set up studio facilities and up-linking infrastructure, purchase new equipment and upgrade the existing ones.

Sun TV estimates that its plan to launch three regional channels would entail an investment of Rs 113.68 crore; the new office and studio facilities would need Rs 62.3 crore and the new equipment/up-gradation would cost Rs 31.26 crore.

With reference to the subsidiaries set up for radio broadcast, Sun's prospectus says that it estimates a total expenditure of around Rs 183.35 crore towards acquisition of broadcast equipment and setting up of 46 local offices and radio studios. There is also an anticipated pre-operating expenditure of Rs 50 crore towards obtaining frequency allocation, SACFA clearance, overheads prior to start of commercial operations and launch expenses.

According to a wire agency report on Tuesday, Sun hopes to raise Rs 700-800 crore through the issue.

For FY05, Sun TV had a net profit of Rs 77.92 crore (Rs 77.29 crore in FY04) on a total income of Rs 301.05 crore (Rs 268.32 crore). For the first half of FY06, its net profit was Rs 62.55 crore on a total income of Rs 158.27 crore. The company's net worth as of September 30, 2005 was Rs 467.73 crore; its outstanding loans were Rs 10.5 crore.

"In November and December 2005, we paid dividends of Rs 1,850 million in the aggregate and in December 2005 we made a bonus issue of Rs 600 million, and our reserves and surplus were accordingly reduced. We believe we are in a stable financial position to take advantage of future opportunities, including acquisitions, to expand our business," the prospectus said.

Our Chennai Bureau reports: Sun TV is part of the Sun Network, which runs 14 TV Channels, four FM Radio stations, two daily newspapers and four magazines.

Mr Kalanithi Maran, brother of Mr Dayanidhi Maran, Union Minister of Communication and Information Technology, launched Sun TV in Tamil in 1993. The channel started with three hours of programming and then grew to 24 hours of programming by 1995.

Today, under the Sun brand there are four Tamil channels, including Sun TV, and two Malayalam channels, including Surya TV. Sun TV is a free to air channel. Sun TV's red herring prospectus says that in Tamil Nadu, the combined audience share of all Sun channels is 60 per cent compared to the 5 per cent of its closest competitor for the year ended March 31.

Tuesday, February 14, 2006

M&M Financial IPO opens on Feb 21

Mahindra & Mahindra Financial Services is entering the capital market on February 21 with its initial public offer, IPO.

Its price band has been fixed at Rs 170-200 per share. The issue will close on February 24.

Mahindra & Mahindra Financial, which mainly funds vehicle purchases, had a total income of Rs 2.55 billion for the half-year ended September 2005 and net profit of Rs 449.4 million.

It has also expanded the number of branches to 225 from 195 in the last three years to March 2005 and that boosted its customers to more than 300,000 from about 160,000, its offer document said.

The offer, managed by Kotak Mahindra Capital Company and ABN AMRO Securities, constitutes 23% of the post-issue equity.

Approva Corporation plans IPO

Approva Corporation, a company that is engaged in enterprise controls management software development, is planning to enter the capital market, reports Business Standard.

Announcing the decision, Prashanth Boccasam, Chief Executive Officer, Approva Corporation said, the company is on a mega expansion mode in terms of overall business growth, sales network and new recruitment.

Explaining about the activities of his company, Boccasam said, Approva is offering services to clients based in countries across the continents.
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"This year, the company is going to give more thrust on the Japanese and Chinese market. Though we will offer products and services to Japan and China from our India-based research centre, we would be looking at strengthening sales and customer service initiatives there," he added.

In order to cater to the financial needs of our future plans, we would consider an option of entering the capital market in India as well as abroad. "We will come out with initial public offer during the next 12-18 months. We are looking at listing our shares on both, the Dalal Street as well as the Wall Street," he informed.

Elaborating on the plans to expand the network and grown the business, Boccasam said Approva is aggressively looking at acquiring small companies engaged in similar kind of businesses.

"We are interested in acquisitions, both domestic as well as offshore ones. Our talks with three companies are at advance stages and we expect to close the first deal within the next calendar year."

Last year, the company had launched 12 new integrated products that cover the entire spectrum of the internal controls landscape within an enterprise.

The company expects to grow at 30% this year, with majority of the growth coming from the sales operations, Boccasam said.

Parsvnath Developers likely to float IPO

The Delhi-based Parsvnath Developers plans to set up townships, resorts and IT parks across South India and may float an IPO to fund its expansion plans, reports The Hindu Business Line.

The Chairman, Parsvnath Developers, Pradeep Jain, said that the company has bought nearly 70 acres in Yelhanka near Bangalore, over 150 acres near Kochi and 75 acres in Mysore to build townships, IT parks, shopping malls and resorts there. The company is also planning an IPO sometime later this year, Jain said.

In Mysore, it is investing over Rs 110 crore (Rs 1.10 billion) to set up an integrated township, which will also have an IT park. In Kerala, the company has bought 150 acres where it will build residential bungalows and a 9-hole golf course. It has bought 30 acres near Kochi, which will be developed into a resort, and the residents will have access to a private beach there.

A mini-city will come up near Bangalore on a 33-acre land. At Whitefiled near Bangalore, Parsvnath has bought 22 acres, which will have a housing complex for high net worth families. For all the projects in Karnataka, the company has earmarked around Rs 500 crore (Rs 5 billion), Jain said.

He said the company has a land bank of around 2,500 acres and has so far completed 22 projects across the country.

"Over 80 other projects are in various stages of completion," he added.

Jain said the country was yet to see a boom in the real estate sector as only 16% of the housing needs had been met. "Another 26% of the housing needs is yet to be met," he added.

The Chief Operating Officer for South India, S P Oberoi, said the company is keen on setting up projects in Tier-II cities because of the good demand there.


Source: Moneycontrol

Saturday, February 11, 2006

M&M Financial IPO price band at Rs 170-200

Mahindra & Mahindra Financial Services has set Rs 170-200 a share price band for bids in its forthcoming initial public offering, IPO, a source familiar with the development said on Friday, reports Reuters.

The 20 million share issue by the finance unit of automobile maker Mahindra & Mahindra would raise up to Rs 4 billion (USD 90 million) at the top end of the price band.

The IPO, which will boost its capital adequacy in an economy, which is witnessing a surge in demand for loans, will comprise 10 million new shares and an offer of 10 million shares from the tractor maker.

Although its capital adequacy is comfortable at 16.1%, compared with central bank-mandated 12% for finance companies, the current fund raising would help it grow strongly in the next few years, the banking source said.

The IPO funds will be key for its growth in lending for purchase of tractors and cars in an economy growing at about 8%.

"We seek to position ourselves between the organised banking sector and local money lenders," the offer document said. "As a supplement to our lending business we started an insurance broking business through a wholly-owned subsidiary."

Mahindra & Mahindra Financial, which mainly funds vehicle purchases, had a total income of Rs 2.55 billion for the half-year ended September 2005 and net profit of Rs 449.4 million.

It has also expanded the number of branches to 225 from 195 in the last three years to March 2005 and that boosted its customers to more than 300,000 from about 160,000, the offer document said.

The IPO price band is around the Rs 190 a share which private equity firm ChrysCapital LLC paid when it bought 3.16 million shares, or 4.2% of the company, last month.

After the IPO, ChrysCapital's holding will fall to 3.7% and Mahindra & Mahindra's stake will go down to about 70%.

The offer, managed by Kotak Mahindra Capital Company and ABN AMRO Securities, constitutes 23% of the post-issue equity.

Friday, February 10, 2006

Coal India aims for Rs 3,000cr from IPO

State-owned Coal India plans to raise Rs 3,000 crore (Rs 30 billion) from the market by divesting 5% stake, its Chairman Shashi Kumar said yesterday, report agencies.

The company had written to the Union government for approval recommending the 5% stake dilution, Kumar said on the sidelines of ''Indian Coal Conference-2006''.

''We enjoy AAA rating by Crisil. This is the right time to generate money. We have written to the government recommending stake dilution to the extent of 5%,'' the Coal India Chairman said.

Coal India presently has 6,316 crore equity and expects about ten times the book value for the public offer, he said.

Coal India is expecting profit before tax to be in the region of Rs 8,000 crore (Rs 80 billion) this fiscal. The revenues were expected to be in the region of Rs 32,000 crore (Rs 320 billion) at a production of 345 million tonnes this fiscal, the executive said.

On the issue of formation of Coal Videsh, he said the government had approved Coal Videsh to operate as a division within Coal India and was yet to decide on making it a subsidiary.

He said coal e-auctioning system had the potential of generating Rs 1,000 crore (Rs 10 billion) revenue.

Thursday, February 09, 2006

Gitanjali Gems IPO opens on February 16

Gitanjali Gems, manufacturers and retailers of diamonds and jewellery, is entering the capital market with a public issue of 1,70,00,000 equity shares of Rs 10 each through the 100% book-building route, report agencies.

The issue opens on February 16 and closes on 21.

Company's Chairman and Managing Director Mehul Choksi said that the proceeds of the issue would be used for expansion of retail operations and setting up of a diamond and jewellery manufacturing facility at the proposed Gems and Jewellery Special Economic Zone at Hyderabad.

The company also plans to set up and expand its jewellery manufacturing facilities in Mumbai and will use the proceeds to fund future acquisitions as also for general corporate purposes.
Choksi said that price band of the issue is between Rs 170 to Rs 195 per equity share and that the company would reserve 50% of the net issue to qualified institutional buyers, QIBs, of which 5% would be made available for allocation on a proportionate basis to mutual funds.

A minimum of 15% of the net issue would be allotted on a proportionate basis to non-institutional bidders and at least 35% of the net issue would be available for allocation on a propotionate basis to retail individual bidders.

The book-running lead managers to the issue are ICICI Securities and Keynote Corporate Services while Karvy Computershare is the registrar to the issue.


Source: Moneycontrol

Wednesday, February 08, 2006

Vimta Labs to raise Rs 125cr via domestic, intl mkts

Vimta Labs, a leading provider of multi-disciplinary contract research and testing services said recently that it will raise Rs 125 crore (Rs 1.25 billion) from domestic or international markets and split equity shares of the company in a 1:5 ratio, report agencies.

The shareholders at the extraordinary general meeting, EGM, have approved raising Rs 125 crore (Rs 1.25 billion) from private, domestic or international investors through issue of equity shares or any other instruments or securities including global depository receipts and warrants convertible into equity shares, the company informed the Bombay Stock Exchange.

The EGM also approved splitting of one equity share of the face value of Rs 10 into five equity shares of Rs 2 each.

BL Kashyap fixes price band for its IPO

BL Kashyap & Sons, BLK, has fixed a price band of Rs 625-700 per equity share for its forthcoming IPO, according to a release.

The public issue of 27,50,000 equity shares is being made through the 100% book built process.

There is also a green shoe option of up to 2,50,000 equity shares, which have been lent by Vineet Kashyap, one of the promoters.

BLK’s business activities cover commercial, corporate, residential and industrial construction.

In FY 05, the company posted a turnover of Rs 314 crore (Rs 3.14 billion) and a net profit of Rs 12 crore (Rs 120 million).

During the 6 months period ended September 30, 2005 BLK’s turnover was Rs 208 crore (Rs 2.08 billion) with a net profit of 13.5 crore (Rs 135 million).

BLK’s order book as on September 30, 2005 was Rs 579 crore(Rs 5.79 billion). Since then, BLK has bagged orders of over Rs 300 crore (Rs 3 billion) from prestigious corporates such as Uppal Housing, Embassy, Golf Links Software Park, etc.

Edelweiss Capital is the sole book running lead manager to the issue.

Indo Tech Transformers IPO opens on Feb 10

Chennai-based transformer manufacturer - Indo Tech Transformers is entering the capital market on February 10 with an IPO of 39,45,130 equity shares of Rs 10 each at a price of Rs 130 per equity share aggregating to 51.2 crore (Rs 512 million), reports Business Standard.

The issue closes on February 16 and would constitute 37.15% of the fully diluted post issue paid up equity capital of the company.

The company plans to utilise the fund to part finance its plans for relocation and modernisation of Saidapet plant into a new distribution transformer plant of 750MVA per annum at Thirumazhisai and setting a new power transformer plant with a capacity of 2400 MVA per annum including 220 KV class of transformers and setting up of dry type transformer plant at 120 units per annum at Thirumazhisai.

The issue is 13 times of the face value. Enam Financial Consultants is the lead manager to the issue and Intime Spectrum Registry is the registrar.

The issue consists of fresh issue of 29,56,750 equity shares and offer for share of 3,97,480 shares of Rs 10 each by P S Jagdish and 5,90,900 shares of Rs 10 each by Twenty First Century Management Services.

Of the total issue, 50,000 shares will be reserved for eligible employees of the company.

The net issue to public is 38,95,130 shares of Rs 10 each at a price of Rs 130 per equity share aggregating 50.6 crore (Rs 506 million).

During the first half ended September 30, 2005 the company's total income has touched Rs 449 million as against Rs 817.75 million for the fiscal year 2004-05 and earned a PAT of Rs 49.53 million in first half compared with Rs 79.68 million for fiscal 2004-05.

Sunstar Overseas to tap capital market

Rice exporter Sunstar Overseas will tap the capital market with an initial public offer to raise funds for setting up facilities for organic rice plant, besides meeting the working capital requirement, report agencies.

The public offer consists of 56 lakh equity shares of Rs 10 each comprising reservation of 2.8 lakh equity shares for permanent employees and the 'net issue to public' of 53.2 lakh equity shares, it said in a statement.

The company has already filed the draft prospectus with Sebi and now awaits approval.

The funds to be raised for meeting the working capital requirement, as mentioned in the draft prospectus, stands at Rs 34 crore (Rs 340 million) while the cost of setting up organic rice facility plant at Sonepat in Haryana has been pegged at Rs 3.74 crore (Rs 37.4 million).

The draft also states that the company would install a captive power generation plant at existing unit in Bahalgarh, Haryana with estimated cost of Rs 5.61 crore (Rs 56.1 million).

Besides, it proposes to set up a packaging plant at its existing unit with the cost of Rs 2.21 crore (Rs 22.1 million).

Moreover, it proposes to invest Rs 6.27 crore (Rs 62.7 million) in the automation and modernisation of its existing unit and Rs 1.73 crore (Rs 17.3 million) for adding a new storage facility there.

Sunstar also plans to invest Rs 1.3 crore (Rs 13 million) for adding new office block at existing unit and proposes setting aside Rs 1 crore (Rs 10 million) for meeting the contingencies.

The issue price for the offer would be done through book building process and any shortfall in the project cost would be met with internal accruals, the draft prospectus said.

The issue is likely to hit market sometime next month.

Public issue to raise money for 100% EOU: Today' Writing

Today's Writing has lined up a public issue to raise money for a 100% export oriented unit to make pens and other stationery products.

CFO at Today's Writing, Deepak Nanda, says that the company is executing the EOU project in two phases. One, a million-pen capacity per day will be ready by July 2006 and two million capacity per day will be ready by March 2007.

Talking about getting into the retail business, Nanda says that the company plans to open 300 retail outlets, which will be a mix of company-run and franchisee outlets in India. He further says that the company is aiming at Rs 11 EPS on the expanded capital for the next fiscal year.

Source: Moneycontrol

Tuesday, February 07, 2006

Sunstar Overseas to tap capital market

Rice exporter Sunstar Overseas will tap the capital market with an initial public offer to raise funds for setting up facilities for organic rice plant, besides meeting the working capital requirement, report agencies.

The public offer consists of 56 lakh equity shares of Rs 10 each comprising reservation of 2.8 lakh equity shares for permanent employees and the 'net issue to public' of 53.2 lakh equity shares, it said in a statement.

The company has already filed the draft prospectus with Sebi and now awaits approval.

The funds to be raised for meeting the working capital requirement, as mentioned in the draft prospectus, stands at Rs 34 crore (Rs 340 million) while the cost of setting up organic rice facility plant at Sonepat in Haryana has been pegged at Rs 3.74 crore (Rs 37.4 million).

The draft also states that the company would install a captive power generation plant at existing unit in Bahalgarh, Haryana with estimated cost of Rs 5.61 crore (Rs 56.1 million).

Besides, it proposes to set up a packaging plant at its existing unit with the cost of Rs 2.21 crore (Rs 22.1 million).

Moreover, it proposes to invest Rs 6.27 crore (Rs 62.7 million) in the automation and modernisation of its existing unit and Rs 1.73 crore (Rs 17.3 million) for adding a new storage facility there.

Sunstar also plans to invest Rs 1.3 crore (Rs 13 million) for adding new office block at existing unit and proposes setting aside Rs 1 crore (Rs 10 million) for meeting the contingencies.

The issue price for the offer would be done through book building process and any shortfall in the project cost would be met with internal accruals, the draft prospectus said.

The issue is likely to hit market sometime next month.

Source: Moneycontrol

KSL plans expansion, to raise Rs 300cr through IPO/GDR

KSL & Industries, KSLIL, the flagship company of Saurabh Tayal Enterprise, has decided to enter the capital market to part-finance its Rs 600 crore textile business expansion, reports Business Standard.

The company plans to raise Rs 300 crore (Rs 3 billion) either by floating IPO in the domestic market or issuing GDR in the overseas market.

“We will be raising Rs 300 crore (Rs 3 billion) from the market in order to fund our ongoing textile expansion,” said Saurabh Tayal, Chairman of KSLIL.

The company has raised half the funds required through debt. The company is implementing the expansion project with a debt-equity ratio of 1:1 and had already tied up with a consortium of banks to raise fund through debt.

UCO Bank, Syndicate Bank, Indian Overseas Bank and Oriental Bank of Commerce will provide a loan of Rs 50 crore (Rs 500 million) each while Allahabad Bank will give Rs 100 crore (Rs 1 billion).

Tayal said that whichever market, IPO/GDR, they decide upon will surely hit the market in one and half-month.

The company intends to utilise the funds raised at its Kalmeshwar mill near Nagpur.

The expansion project aims for additional 1.50-lakh spindles for manufacturing yarn, knitting and fabric processing capacity and garments.

At present the total spinning capacity is 10,000 tonne per annum, TPA, with 65,000 spindles, 19,000 TPA of knitting and 1,000 TPA of processing.

KSL has four manufacturing units at Nagpur, Mumbai, Bhilad in Gujarat and at Dadra and Nagar Haveli.

When asked about the Rs 400 crore (Rs 4 billion) ‘Express City’ project undertaken by Reward Real Estate Company, a subsidiary of KSL, Tayal said, “The project is moving smoothly and will be completed with a stipulated time of three years”.


Source: Moneycontrol

Friday, February 03, 2006

EIH arm likely to raise Rs 78cr

EIH Associated Hotels is likely to raise Rs 78 crore (Rs 780 million) from the market to finance the acquisition of two hotels of EIH, reports Business Standard.

EIH Associated is a Oberoi group company where EIH controls around 24% stake with an investment of around Rs 10 crore (Rs 100 million). Besides, Oberoi Holdings, an investment company of the Oberoi group holds around 2.6% stake in the outfit.

The managing director of EIH, S S Mukherjee, said that the internal restructuring of the group is aimed at optimising the value for shareholders.

According to him, as a part of the restructuring of EIH and EIH Associated Hotels, two hotels of EIH, The Oberoi Cecil, Shimla, and Trident Hilton, Bhubaneshwar, would be transferred to the company with effect from April 1, 2006.

The rest of the business and undertaking of EIH would continue to remain with EIH.


As a consideration of the transfer, EIHAH would issue and allot to EIH, 4% redeemable non-cumulative preference shares of Rs 10 crore (Rs 100 million) for the Shimla property and 6% redeemable unsecured debentures of Rs 68 crore (Rs 680 million) for the Bhubaneswar property.

"As a result EIH will have Rs 78 crore (Rs 780 million) in its books for this two properties. On the other hand, EIHAH will get the desired geographical spread which it does not have currently," he said.

EIHAH currently had only two hotels in Rajasthan and Chennai.

The two new additions would help the company develop its presence in north and east India.

Besides transferring two hotels to EIHAH, Oberoi group is also merging Indus Hotels Corporation with EIHAH. Indus Hotels is an associate company of EIH.


EIH had 50% stake in Indus Hotels, which would be merged with EIHAH. Indus Hotels currently had four properties - in Udaipur, Agra, Cochin and Jaipur.

The shareholders of Indus Corporation would get one share of EIHAH for every nine shares of Indus.

EIH would also get shares of EIHAH as it holds 50% in Indus, but it will be nullified later on as EIHAH was likely to raise resources from the market to finance the transfer.

'EIHAH will raise fund from the market either through private place or other means,' he said. As a result, promoters' stake in EIHAH would remain at the same level but more value would be created for shareholders of EIH as well as EIHAH as it would be getting good properties, he claimed.

'It will also ensure the geographical spread,' he added.

Lazard India was the financial adviser on the restructuring process.

Source: Moneycontrol

DCB plans private placement, IPO to raise Rs 350 cr

Development Credit Bank Ltd plans to tap the capital market with a private placement and an initial public offer (IPO) for raising funds to the tune of Rs 350 crore. These equity issues are aimed at strengthening the bank's capital adequacy ratio (CAR) as well as meeting the growing business needs, its Managing Director and Chief Executive Officer, Mr Gautam Vir, said.

With a paid-up equity of Rs 170 crore and a CAR of below 10 per cent, the bank proposes to go in for private placement of equity in February for raising funds of up to Rs 90 crore.

"We are also planning to file the red herring prospectus with the Securities and Exchange Board of India for an IPO sometime during March for raising up to Rs 250 crore," Mr Vir said.

Following the private placement and IPO, the equity holding of the bank's largest shareholder - The Aga Khan Fund for Economic Development - will come down to around 32 per cent on the expanded equity from 69 per cent.

Mr Vir was addressing newspersons here on Wednesday to announce the national launch of the bank's `Free Style Savings Account' with a free 90-day trial offer, claiming it as the first of its kind in the country. The bank proposes to introduce the product in other cities shortly.

Under this scheme, by paying an annual fee of Rs 555, the customer can have access to a host of free services and facilities of a savings account without the hassle of maintaining the average quarterly balance, he said.

According to the Development Credit Bank Consumer Banking Group Head, Mr P.N. Vasudevan, the savings account comes with a host of benefits and free facilities such as an international debit card, personal accident death insurance and any-branch banking facility.

Pudumjee launches hygiene products brand, IPO on cards

Pudumjee Hygiene Products, PHPL, a wholly-owned subsidiary of the Pune-based Rs 400 crore (Rs 4 billion) Pudumjee Paper Group, is planning to float initial public offering, IPO, in 2008, reports Business Standard.

The company is also looking at expanding capacity at its Hinjawadi plant and setting up new plants in the southern and northern regions.

M P Jatia, group Chairman and President, PHPL, eyes a turnover of Rs 100 crore (Rs 1 billion) by 2008 as the popularity of hygiene products has been on the rise in the country. “We plan to go public then,” Jatia said.

The company on Wednesday announced the launch of its hygiene tissue range branded ‘Greenlime.’ Jatia said the Greenlime range is being produced at the company’s new Hinjawadi facility set at an investment of Rs 200 crore (Rs 2 billion).

“We plan to set up plants for producing Greenlime range in the South and North too. But we are yet to take a final decision on the locations,” he said, adding the two plants would together need a capital outlay of Rs 10 crore (Rs 100 million).

The Greenlime range includes facial tissues, hand towels, napkins, kitchen rolls and bathroom tissues.

“We are laying a lot of stress on institutional sales and would be targeting customers such as star hotels, multiplexes, call centres, BPO companies, shopping malls and other retail stores. We would also like to target airports, airline companies, railways and municipal corporations. We are in discussion with the Airports Authority of India, airlines such as Indian and the railways. The company expects to finalise its first deal in six-eight months,” he added.

Pudumjee Pulp and Paper Mills is the largest producer of tissue papers in the country with an annual manufacturing capacity of 20,000 tonne. The company is expanding its capacity with the introduction of a new production line of 25,000 tonne capacity.

“After the commissioning of the new facility, the company will have a total capacity of 45,000 tonne per annum. It plans to start exports to neighbouring countries such as Nepal, Pakistan, Bangladesh, Maldives and Mauritius later,” Jatia added.

Source: Moneycontrol

Uma Precision plans to float an IPO this year

H&M Global Selection, a Japanese fund based in Singapore, has invested USD 1.6 million in Uma Precision, a precision engineering solution provider, reports The Hindu Business Line.

The Uma Precision Managing Director and Chief Executive Officer, Rajendra Kankaria, said that the fund will be utilised for expanding its current facility.

Uma has also acquired a Bangalore-based auto component firm, Gera Auto Industries for around Rs 2.5 crore (Rs 25 million).

Kankaria said Uma Precision is also in talks with a few companies in Detroit, US for acquisition. "Once we have a foothold in the US, we will be able to bag contracts from foreign OEMs like General Motors and Ford," Kankaria said.

He said the company plans to float an IPO later this year for around Rs 35 crore (Rs 350 million) to fund expansion and acquire new companies.

The company expects a turnover of around Rs 90 crore (Rs 900 million) during the current year. It expects to record a turnover of around Rs 3,50,400 crore (Rs 3,504 billion) in another three years.

Currently, Uma Precision supplies components to OEMs such as Bajaj Auto and Tata Motor, Kankaria said.

The H&M Global Principal Officer, Chris K Hosokawa, said the fund size of its company is around USD 100 million, and half of that has already been invested. Its investment in Uma is the first so far in India. "Our focus in India are high growth mid-sized companies," he said.

Source: Moneycontrol

Thursday, February 02, 2006

Sakuma Exports to tap capital market on Feb 8 with IPO

Sakuma Exports, SEL, is entering the capital market on February 8 with an initial public offering of 66,66,667 equity shares of Rs 10 each for cash at a price of Rs 50 each amounting to Rs 33.33 crore (Rs 333.3 million) and 10 lakh cumulative redeemable preference shares, CRPS, at a price of Rs 100 each amounting to Rs 10 crore (Rs 100 million), reports The Hindu Business Line.

The aggregate issue size is Rs 43.33 crore (Rs 433.3 million). The issue will close on February 14.

The funds raised by the company will be used to augment its long-term resources for working capital requirements. It also proposes to apply a part of the funds for general corporate purposes an aim to promote and strengthen its business and brand.

"In the current financial year, the company has started exports of castor oil and its de-oiled cake and coriander seeds. The company will continue to focus on export of groundnuts, sugar, chilli and de-oiled cakes and other commodities like cotton and niger seed as well," Chander Mohan, Chairman, SEL, said.

The company is exporting a number of commodities namely peanuts, red split lentils, De-oiled cakes (soya, sunflower etc.) sugar, onions, maize, wheat flour, sesame seed, chilli, rice, castor oil and chick peas.

"The company has an export mix of 25 commodities, with a client base of over 75 in countries across five continents. It has a reliable supply chain with more than 400 suppliers spread over different parts of the country and developed adequate and competitive logistic facility across the country," he said.

The company is exporting from a number of seaports along the entire coastline of India - Mundra, Kandla, JNPT, Nhava Shiva, Mumbai, Chennai, Kakinada and Vizag, apart from the dry ports.

"It gives competitive advantage by cutting transport and freight cost," Chander Mohan said.

SEL has been continuously studying and analysing international markets and domestic production trends to keep pace with changing demand and trends in the domestic and international trade market.

Source: Moneycontrol