Indian IPO

All details about Hot Indian Primary Market.

Sunday, April 30, 2006

Sebi's order of barring Karvy will not affect RPL IPO

Sebi's order of barring Karvy as a registrar for new issues will not affect initial public offer, IPO, of Reliance Petroleum, RPL, reports agencies.

Though Karvy has been barred from acting as a registrar for new IPOs, it will not affect RPL IPO, as it has already happened, sources in Reliance Industries told.

In perhaps the largest ever oversubscription of a public issue in recent times, Mukesh Ambani-controlled Reliance Petroleum has received share applications for an unprecendent 49.72 times more than the size of its initial public offer.

Dolphin Developers plans IPO

Vishwanath Gupta, a major builder-developer of the city, is planning an initial public offering, IPO, as a stepping stone to joining the realty industry at the national level, reports Business Standard.

He has brought together his many companies into a single amalgamated unit ‘Dolphin Developers’. Gupta said the public issue would help him win public support and which was important for the company’s development. He said he was not expecting to raise too much money from the issue, since his was a small company unlike those DLF, Parsavanath etc.

He said he wanted to be more like the five-year-old company Parsavnath, which had overtaken bigger competition due to constant innovation.

“Further we shall need public support for massive projects, which we would be developing in the future,” he said.

Gupta’s training is uniquely suited for a public offering, as he has been closely associated with the stock exchange, been a broker himself earlier before becoming a builder. He said the issue should be so designed that the investor may get some benefit from it. He does not want to price it very aggressively.

“If I make my debut now, only then I would be able to bid for large development projects in future,” he said.

Till now, he has been confined to Kanpur, where he has already built a residential space of 15 lakh sq ft; another 20 lakh sq ft is under construction and about 50-60 lakh sq ft space is in the pipeline.

But due to lack of infrastructure, Kanpur is not able to attract outside investors, thus realty development and attractive prices are confined to certain areas only and buyers are mainly those who have money and have been residing in the business district of Birhana Road, Pheel Khana, Nayagunj and who now want to shift out to more open areas. But there is very little outside investment, therefore Kanpur development has reached a plateau.

People have money and they are able to buy houses costing Rs 70 lakh or duplex of Rs 1 crore (Rs 10 million). But this cannot progress till the state government intervenes and improves the infrastructure. There is as yet no sign of the latter.

Therefore Gupta is now diversifying into other areas and cities. He is planning to build a university, which will be functional by July 2007. It is coming up on a plot of 50 acres, which will have all the disciplines under one roof.

Another project, which is coming up on a plot of 200 acres, is Bithoor road, where multiplexes, township and hotels are being planned. It is being planned as a new Kanpur. Future plans include a hospital, at an estimated cost of Rs 50 crore (Rs 500 million).

He plans to foray into cities like Varanasi, Moradabad, Agra, Jhansi, etc.

The company also plans to participate in the Uttar Pradesh government’s township development scheme. The township is to be built on 1500 acres with an investment of Rs 750 crore (Rs 7.5 billion).

In keeping with the demands, Dolphin will have its own group of in house architects. Till now it was relying on a panel and used to give opportunities to a number of new ones.

His latest offering of apartments has a community swimming pool, health club, common playing facilities etc.

Wednesday, April 26, 2006

Patel Engg follow-on offer opens on May 3, 2006

The follow-on public offer, FPO of Patel Engineering, a civil-infrastructure construction company, is scheduled to open for subscription on May 3, 2006 and close on May 9, 2006, as per the company announcements.

The FPO is for fresh equity shares of Re 1 each for cash at a premium, at a price to be determined through the 100% book building process.

Patel Engineering is raising funds to make investments in infrastructure projects and capital equipment, repayment of contractee advances/debt and for additional working capital. The company also intends to bid for projects on an Annuity, IPP, BOT or BOOT basis and also invest in subsidiaries and joint ventures within and outside India.

Studies and estimates from the Plan Documents indicate an investment of over Rs 8,500 billion into various Indian infrastructure projects over the next five years. The biggest beneficiaries of these investments are likely to be construction companies since civil construction component accounts for around 50-65% of the total infrastructure spending.

Patel Engineering has seen a huge jump in order book position in the last two years on the back of increased infrastructure spending. The company would like to further capitalize and benefit from the growth momentum. The fund raising program will facilitate the company’s structured growth plan for expansion through organic and inorganic means.

The company’s consolidated order book position (the estimated balance value of work) as at December 31, 2005 is Rs 4339 crore (Rs 43.39 billion), which is 5.58 times the consolidated revenues of the company as on March 31, 2005. The company has been a major player in the sectors which have high government attention like hydro power and irrigation sectors. These critical and high quality business segments of Hydropower and Irrigation account for 39.18% and 37.64% respectively of the consolidated order book as at December 31, 2005.

ICICI Securities and Enam Financial Consultants Private are the book running lead managers to the FPO. Intime Spectrum Registry is the registrar to the FPO.

An ISO 9001-2000 certified company set up in 1949, Patel Engineering 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 & irrigation projects, nuclear and thermal power projects, bridges and marine works and public health projects. The company has two high technology companies namely, ASI RCC Inc and Westcon Microtunnelling Inc. for undertaking and executing complex projects in various parts of the world including India.

Saturday, April 22, 2006

Sun TV to list on April 24

Sun TV will list on the stock exchanges on April 24, 2006. Its BSE ID 532733 and its NSE ID is SUNTV.

The share was issued at Rs 875. The issue was subscribed 47.05 times.

Sun TV, the largest television broadcaster in the country in terms of audience share with a leadership position in the South Indian states of Tamil Nadu and Kerala, had entered the capital market for subscription. Its initial public offer, IPO, was of 68,89,000 equity shares of Rs 10 each through 100% book building route.

The company was to raise funds for capitalization of subsidiaries, launch of new TV channels, construction of corporate office and studio facilities, purchase of new equipment and upgradation of equipment and general corporate purposes.

The book running lead managers were DSP Merrill Lynch and Kotak Mahindra Capital Company and Karvy Computershare was the registrar to the issue.

Cairn plans IPO by year end; Dhir new India chief

British-major Cairn Energy's initial public offering, IPO will open before the end of this financial year reports The Hindu Business Line.

Cairn aims at listing its shares through an IPO on Bombay Stock Exchange, BSE in the last quarter of 2006 or early 2007, company official said. But they refused to comment on the size of the IPO. Market sources said that it would be around Rs 1,200 crore (Rs 12 billion).

The company has appointed Rahul Dhir as the chief executive officer of its Indian business. According to the company official, "Rahul Dhir will join Cairn in May from Merrill Lynch, where he is the managing director and co-head of energy and power investment banking. His appointment will add significant momentum to the Indian business and facilitate an early listing in Mumbai."

Dhir said, "The assets of Cairn are outstanding. Given the positive developments in the Indian economy and investor interest in India, Cairn is in the right place at the right time to create a world class business."

He had started his career as an oil and gas reservoir engineer before moving into investment banking and he had worked at SBC Warburg, Morgan Stanley and Merrill Lynch.

Cairn made a major oil discovery at Mangala oil field in Rajasthan in 2004. The company produces 650,000 barrels a day, of which 50,000 barrels comes from the Cairn-operated Ravva field on the east coast.

Cairn has recently opened its India headquarters at Gurgaon to provide improved support for the Rajasthan project team and to manage the company's business interests in India.

Cairn focuses its activities in south Asia. The group holds material exploration and production positions in west India, east India and Bangladesh along with new exploration rights in India and Nepal.

DLF plans to raise Rs 10500cr through IPO

KP Singh-promoted DLF group on Thursday announced that it plans to raise around Rs 10,500 crore (Rs 105 billion), India’s largest, from its initial public offer, IPO, in June, by diluting around 10% stake in the company, reports The Economic Times.

After its EGM, the company announced that it will issue 20 crore new shares with a face value of Rs 2 each.

In addition, it will issue 35 lakh new shares to employees for stock option programme while around 3.5 crore shares are being allocated for placement to Indian and foreign institutional investors, pre-IPO. The authorised share capital of the company will be increased from Rs 40 crore (Rs 400 million) to Rs 500 crore (Rs 5 billion).

The company would issue 7 bonus shares against each held by the existing shareholders, split stocks of face value of Rs 10 into Rs 2. Following the IPO, the promoter’s stake in the company currently pegged at 99.5%, will come down to around 87%, Ramesh Sanka, chief financial officer, DLF said.

The flagship company has now been renamed as DLF from its earlier avatar of DLF Universal. All the group companies have now been consolidated under the new entity. As per unaudited results, the group earned profit before tax of Rs 700 crore (Rs 7 billion) on a turnover of Rs 2,000 crore (Rs 20 billion) during 2005-06.

It plans to use a major portion of the proceedings from the IPO to fund its SEZ projects and integrated townships, while part finance its foray into the hospitality sector. Sanka said the group will continue to focus on its core business of real estate while tie-up with international hotel chains for its four-star and budget hotel properties.

As part of its expansion programme, the group plans to increase its presence to 35 cities over the next two years, from 18 at present. Global advisors to the issue are DSP Merrill Lynch, Kotak Mahindra, while the lead managers are UBS, JM Morgan Stanley, Enam Securities, ICICI-Securities and Citi Bank.

Gangotri Textiles' public issue likely next month

Gangotri Textiles, which has planned to tap capital market with a public issue, is expected to hit the market next month either in the first week or the second, reports The Hindu Business Line.

The company, which has filed its draft red herring prospectus, DRHP with the Sebi for its public issue, has received the latter's approval, according to a press release from the company.

The company has fixed May 6 as the record date for payment of interim dividend of 15% (75 paise per share of Rs 5 face value) and for determining the shareholders eligibility to get shares under the reserved portion.

Gangotri, manufacturers of the `Tibre' brand trousers, is planning to raise Rs 55 crore (Rs 550 million) through 100% book building process. The public issue is to part finance its expansion-cum-integrated production projects involving spinning, weaving, processing and garmenting facilities.

DS Kulkarni follow-on issue opens on April 25

Pune-based D S Kulkarni Developers, DSKDL is entering the capital market with a follow-on public issue of 55 lakh equity shares of Rs 10 each for a cash at a price to be determined by a book building process, reports Business Standard.

This is part of the 1.10 crore composite equity shares of similar face value issued and subscribed, and also comprising promoters’ contribution of 6.4 lakh shares, a reservation of 1.1 lakh shares for employees, resulting in a net offer to the public of 47.45 lakh equity shares. The bid issue opens on April 25, 2006, and closes on May 3, 2006.

The objectives of the issue are to raise capital to finance the company’s ongoing and new residential and commercial real estate development projects and for general corporate purposes of the company, according to a company press release.

Wednesday, April 19, 2006

Writing off UBI's losses pave way for an IPO

Paving the way for a possible initial public offering, IPO, the Cabinet has approved write-off of accumulated losses of United Bank of India, thereby cleaning its balance sheet, reports agencies.

"The Cabinet approved write-off of accumulated losses of United Bank of India amounting to Rs 278.44 crore (Rs 2.78 billion) against the capital of Rs 1810.87 crore (Rs 18.10 billion) with effect from March 31, 2006," Science and Technology Minister Kapil Sibal told.

The bank would return equity share capital of around Rs 700 crore (Rs 7 billion) to the government and convert a portion of the remaining equity share capital of around Rs 832.43 crore (Rs 8.32 billion) into preference share.

"The exact amount of the portion to be converted will be decided in consultation with the bank and Reserve Bank of India," he said.

The Cabinet decision for writing off accumulated losses would strengthen the balance sheet of United Bank of India and facilitate adoption of Basel-II norms.

The decision would help create investment fluctuation reserve, IFR, as per RBI guidelines and assist the bank in meeting future capital requirements through IPO, the Minister said.

It would also facilitate linkages with foreign banks, instill confidence among investors for investing in bank's share and help in future expansion.

"The proposal does not involve any financial outgo since it is only a technical write off," he said.

Government had in the past permitted 13 banks to write off their accumulated losses against capital.

A-I, Indian IPOs await final word on merger

The stock market may be on fire but the big-ticket IPO plans for Air-India and Indian are being put on ice. The government is toying with the idea of floating a consolidated IPO after merger of the two public sector airlines, reports The Economic Times.

The move follows apprehensions that individual IPOs for the two government owned carriers could create obstacles for the proposed merger of A-I and Indian. The final decision on the merger plan would require approval from the Union Cabinet and is not expected in the immediate future.

“In case the government clears the merger proposal, there will be no point in doing individual IPOs for the two airlines,” highly placed government sources said. Therefore, the two companies are taking it easy on the IPO front. “The focus is now on the benefits from synergy of operations. Work related to valuation, however, would go on,” the sources added.

The government can bring together A-I and Indian through a full-fledged merger or by way of a holding company. In case, the holding company option is cleared, then the two proposed IPOs could move forward as planned. If the Cabinet approves the merger option, then a consolidated IPO would be a better option. As of now, the view within the government is in favour of a full merger.

Civil aviation minister Praful Patel feels that putting together the strengths of A-I and Indian would help in facing increasing competition from foreign airlines. A-I has expanded its international network in a big way during the past couple of years while Indian has established strong connectivity in the domestic circuit.

Since the merger would also mean possibility of a better premium for the consolidated IPO, it is felt that it is better to wait, rather than go ahead with the original plan of individual IPOs. In any case, the merger plan is also getting more support within the government following Jet Airways’ takeover of Air Sahara. While the need for consolidation has been emphasised by the Rs 2,300-crore (Rs 23 billion) takeover, the proposed merger of A-I and Indian, needs to be a smooth affair in order get a thumps-up from the market.

The government also needs to act fast since a number of airlines including Air Deccan have already lined up to tap funds from the capital market. While the low-cost carrier’s IPO is expected next month, Jagson Airlines said last week, that it may tap the market next year. In any case, UB Group’s Kingfisher is also expected to opt for an IPO once its initial operations stabilise.

Monday, April 17, 2006

Air Deccan IPO may hit markets in mid-May

Deccan Aviation has decided not to rope in any private equity investors for the present and plans to hit the market to raise approximately Rs 500-550 crore (Rs 5-5.5 billion), sometime in the second week of May, reports Business Standard.

The initial public offering, IPO, for 2.45 crore shares is likely to be priced in a band of Rs 200-250.

Two of the merchant bankers associated with the IPO, ABN Amro Rothschild and JP Morgan, may however, withdraw from it. The issue will now be lead managed by ICICI Securities, Enam and SBI Caps.

The reason for this, according to a senior company executive is that JP Morgan and ABN Amro have other commitments in May. However, should the IPO be delayed for any reason and hit the market only in June or July, these investment bankers may once again be part of the team.

While Deccan has been toying with the idea of a preferential allotment to private equity investors, even before the IPO, it was apparently taking too much time. The company needs to bring out the public issue before May 20; otherwise it will have to file a fresh prospectus with Sebi.

In fact Deccan was to bring the IPO in February, which got delayed because of a deal that the company was negotiating with Airbus. While ABN Amro and JP Morgan were comfortable with the public issue coming up in February-March, they now have other assignments.

However, sources say, the investment bankers were also not too comfortable with the pricing as indicated during the road shows overseas; they found it aggressive. At that time, the price being talked about was between Rs 300-325 per share.

The overseas investors have been a little wary of the aviation stocks because Jet Airways, which came out with its IPO in February last year, is currently trading below Rs 1,100.

However, the shortage of aviation stocks and the lower pricing should generate interest from both foreign and local investors, say merchant bankers.

Deccan Aviation incurred a net loss of Rs 19.5 crore (Rs 195 million) for the year-ended March 2005, on a net income of Rs 305.5 crore (Rs 3.05 billion). The loss for the six months ended September 2005, was Rs 72.5 crore (Rs 725 million), on a net income of Rs 328.86 crore (Rs 3.28 billion).

The issue will result in a dilution of 25% of the post-issue equity of Rs 98.18 crore (Rs 981.8 million) and the price band of Rs 200-250 would mean a market capitalisation of Rs 2,000-2,500 crore (Rs 20-25 billion). Jet, which trades at Rs 970 has a market capitalisation of Rs 8,378 crore (Rs 83.78 billion).

NIEL plans to enter capital market by September


Textile Company, Nahar Group plans to invest Rs 1,050 crore (Rs 10.50 billion) at Lalru (Punjab) by 2008 to augment its spinning and weaving capacity, reports The Hindu Business Line.

The investment is intended to double the fabric production capacity of 1 lakh metres per day by adding 1 lakh spindles and 250 looms to the existing 1.5 lakh spindles and 426 looms.

"We would also set up a cogen power plant of 12 MW in the current financial year and another one of 21 MW in the next year," said Kamal Oswal, vice-chairman and managing director, Nahar Industrial Enterprises, NIEL.

To finance the investment, the NIEL has issued zero-coupon FCCBs aggregating USD 45 million. The remaining project cost would be met through term loans under the TUFS, (Technology Upgradation Fund Scheme) and internal accruals.

NIEL also plans to launch an initial public offering by September to generate Rs 200 crore (Rs 2 billion), said Oswal.

The facility at Lalru is spread over 550 acres. The group has invested Rs 1,500 crore (Rs 15 billion) in the facility.

Meanwhile, the group also has plans on the retail front for the two brands it owns - Monte Carlo and Cotton County. While the number of Cotton County exclusive stores would go up from the present 70 to 250 by 2008, the Monte Carlo stores would go up from the existing three to 100 in the same period. The retail expansion would be carried out through a mix of own and the franchisee stores.

Saturday, April 15, 2006

Jagson Airlines can go for public offer next year

Low cost carrier Jagson Airlines, which is to launch operations from May, has said that it has sold a little less than 15.99% stake to a foreign investor and could go in for a public issue next year, reports agencies.

"We have given less than 15.99% stake to the foreign investor and we may go public next year," Jagson President and CEO U K Bose told.

He, however, refused to disclose the investor's name or the value of the follow on public offer, FPO.

Under the present rules, no foreign airline is allowed to pick a stake in Indian carriers but foreign institutional investors can do so up to 15.99% of the total.

Announcing that the airline would start trunk operations from May-end, Bose said Jagson Airlines would get two Airbus A-321 aircraft by that time and have a fleet of six of these planes by the year-end.

"All the aircraft would be on a two-class configuration of economy and executive economy classes, having a price differential of about 15%. The aim is to attract the economy-class business traveller and maintain a healthy financial status for the airline," he said.

With the first two A-321s, Jagson would launch services to nine cities, with the inaugural flight covering the Delhi-Bangalore sector. It would add another seven aircraft by the end of 2007 and eight more in 2008.

He said two 26-seater MI-172 helicopters would also join the chopper fleet this month, taking the total number to four.

Jagson and Bird Information Systems also announced a strategic partnership with the latter providing a web-based service in areas of inventory control, ticketing, reservation, Internet booking engine, distribution and departure control, Bird's Executive Director Ankur Bhatia said.

Thursday, April 13, 2006

Reliance Petroleum IPO opens today for subscription

Reliance Petroleum, RPL, has entered the capital market today for subscription with a public issue of 135 crore equity shares of Rs 10 each for cash at a premium to be decided through 100% book building route.

The issue will close on Thursday, April 20, 2006. The price band has been set at Rs 57 to Rs 62 for the issue.

Reliance Industries, RIL, will subscribe to 90 crore shares at the issue price in the proposed IPO. For this purpose, RIL would be making a payment towards these 90 crore equity shares one day prior to the opening of the issue at Rs 62 per share amounting to Rs 5,580 crore (Rs 55.80 billion).

The net size of the initial public offer, IPO available to the public is 45 crore shares.

Retail investors will have the option of pay only Rs 16 per share on application. Retail investors can apply for a minimum 100 shares and a maximum of 1600 shares.

The issue is being made to part finance the Rs 27,000 crore (Rs 270 billion) export-oriented refinery being set up in a special economic zone, SEZ, at Jamnagar, Gujarat. The export-oriented refinery will have a capacity to process 5,80,000 barrels per day making it the sixth largest refinery in the world. As a part of this project, RPL is also setting up a 900,000 tonne per annum polypropylene plant.

The project is likely to go on stream by December 2008.

The book running lead managers are Citigroup Global Markets India, Deutsche Equities India Private, DSP Merrill Lynch, Enam Financial Consultants Private, HSBC Securities & Capital Markets (India) Private, ICICI Securities, JM Morgan Stanley Private, SBI Capital Markets, UBS Securities India Private and Karvy Computershare Private is the registrar to the issue.

Reliance Industries and Chevron Corporation yesterday announced the signing of an agreement for purchase of 5% equity of Reliance Petroleum by Chevron India Holdings, Singapore, a wholly owned subsidiary of Chevron Corporation for USD 300 million.

The agreement provides Chevron with the right to acquire an additional 24% of the equity stake in RPL on conclusion of the collaboration agreements between Chevron and Reliance. If Chevron acquires additional equity, this will rank as one of the largest investments from any multinational company in a single project in India. This will also be one of the largest foreign direct investments in India.

Allcargo Global Logistics plans IPO, files DRHP

Allcargo Global Logistics, a logistics service provider involved in multimodal transport operations, MTO, owning and operating container freight station, CFS, and handling of project cargo, proposes to enter the capital market with a public issue of 20,79,000 equity shares of Rs 10 each through 100% book building process. It has filed DRHP with SEBI for the purpose, as per press release.

ENAM Financial Consultants Private is the book running lead manager for the Issue, IL&FS Investsmart is senior co-book running lead manager and Inga Advisors Private is the co-book running lead manager. Intime Spectrum Registry is the registrar to the issue.

The company intends to deploy the net proceeds of the issue for financing the setting up of CFS/ICD, prepayment of loan availed from Yes Bank, general corporate expenses including acquisitions.

It has achieved an income of Rs 2321.93 million and PAT of Rs 245.47 million for the FY 2005. For the six-month period ending September 30, 2005, it has achieved an income of Rs 1333.49 million and a PAT of Rs 225.91 million.

Allcargo Global Logistics started MTO in 1998 and have since then built expertise in this field. Today it has a pan India presence across 26 locations through its branches and franchisees and an extensive international covered of over 4000 destinations through strategic ties-ups and agents.

As a multimodal transport operator, it offers end-to-end freight services for export and import cargo utilizing multiple modes of transport such as sea, road, rail and air. At present it is one of the leading less than container load, LCL, consolidators and have large full container load, FCL, volumes. The company also undertakes multi city consolidation, MCC, which involves movements of cargo from hinterland locations to CFS at gateway ports.

Wednesday, April 12, 2006

Quick look at Reliance Petroleum IPO

Reliance Petroleum, RPL, is entering the capital market on April 13 with a public issue of 135 crore equity shares of Rs 10 each for cash at a premium to be decided through 100% book building route.

The issue will close on Thursday, April 20, 2006.

The price band has been set at Rs 57 to Rs 62 for the issue.

Reliance Industries, RIL will subscribe to 90 crore shares at the issue price in the proposed IPO. For this purpose, RIL would be making a payment towards these 90 crore equity shares one day prior to the opening of the issue at Rs 62 per share amounting to Rs 5,580 crore (Rs 55.80 billion).

The net size of the initial public offer, IPO available to the public is 45 crore shares.

Retail investors will have the option of pay only Rs 16 per share on application. Retail investors can apply for a minimum 100 shares and a maximum of 1600 shares.

The issue is being made to part finance the Rs 27,000 crore (Rs 270 billion) export-oriented refinery being set up in a special economic zone, SEZ, at Jamnagar, Gujarat. The export-oriented refinery will have a capacity to process 5,80,000 barrels per day making it the sixth largest refinery in the world. As a part of this project, RPL is also setting up a 900,000 tonne per annum polypropylene plant.

The project is likely to go on stream by December 2008.

A quick look at Reliance Petroleum IPO:

Issue snapshot
Issue opens on April 13, closes on April 20
Equity: Rs 4,500 crore
Price band: Rs 57-62 per share
Issue size: Rs 2,565-2,790 crore
Market cap at issue price: Rs 25,650-27,900 crore
Enterprise value at Rs 62: Rs 43,650 crore
Shares on offer: 45 crore
QIBs: 60% or 27 crore shares
NII: 10% or 4.5 crore shares
Retail: 30% or 13.5 crore shares

Holdings of shares
Reliance Industries, RIL will subscribe to 90 crore shares at issue price decided at end of IPO
RPL recently issued 45 crore shares to FIIs, FIs and banks
RIL to hold 80%

Use of IPO proceeds
Build 23 mtpa or 580,000 bpd refinery
9,00,000 tpa polypropylene

Project cost: USD 6 billion
USD 3.5 billion (Rs 15,750 crore) via debt
USD 2.5 billion (Rs 11,250 crore) via equity
Already raised Rs 7,200 crore equity (incl private placement of Rs 4,500 crore)
Already raised USD 1.5 billion debt via syndicated loan and USD 1 billion via export credit

Paras Pharma plans IPO in July

Paras Pharmaceuticals, the makers of OTC products like Moov, Borosoft, Dermicool, Itchguard, Krack, D’Cold and Stopache, will go public around July this year, reports The Economic Times.

Paras has appointed Enam Securities to manage its initial public offer, IPO and “the spadework has already begun”, one of the company’s promoters told.

The Ahmedabad-based company, which has pioneered the concept of creating successful brands of personal care and OTC drug products, will make an offer of 20 lakh equity shares, through a mix of fresh offer and sale of promoters’ equity. The company chairman Girish Patel told that there would be a fresh offer of 12.5 lakh shares, while the promoters would offload 7.5 lakh shares.

The current paid up equity of the company is Rs 8.75 crore, comprising 87.5 lakh shares of Rs 10 each, which would be enhanced to Rs 10 crore after the IPO. At present, Mr Patel and his two brothers Darshan and Devendra and their family members hold the entire equity of the company.

The company is expecting a net profit of around Rs 32 crore (Rs 320 million) this year, on a turnover of around Rs 275 crore (Rs 27.5 billion). “Considering a conservative PE of 20 and an EPS of 36.5, the price at which the shares would be issued in the market is expected to be over Rs 700 a share,” Vinod Sharma, head of research, Anagram Securities said. The current book value of the share is Rs 95.

Mr Patel said he would not be able to comment on the price band as yet. He said that it would be a book-building issue.

Like many successful Gujarat-based firms, Paras had thwarted moves by foreign players to pick up stake in the company. Girish Patel said he would not offer equity to a foreign company yet, though he is negotiating with a UK-based private equity player to offer a stake in the Ahmedabad-based Sterling Hospitals, which the brothers jointly promote.

In 2005, Paras had notched up sales of around Rs 250 crore (Rs 2.5 billion), with an exports turnover of Rs 30 crore (Rs 300 million). There would be an increased focus on exports henceforth, and a special emphasis on India’s youth market.

Monday, April 10, 2006

A quick look at AML Steel FPO



AML Steel has filed a draft red herring prospectus, DRHP, with the Securities & Exchange Board of India, Sebi for its forthcoming follow-on public issue, FPO, of equity shares of Rs 10 each for cash at a premium aggregating to Rs 120 crore (Rs 1.20 billion), as per company announcements.

The issue is to be made through a 100% book building process to be conducted on the Mumbai, BSE and National Stock Exchange, NSE.

Of the Rs 120 crore (Rs 1.20 billion) to be raised through the issue, Rs 20 crore (Rs 200 million) would be raised as promoter’s contribution and the balance Rs 100 crore (Rs 1 billion) would be the net offer to public.

The company is raising the money to part finance its wholly owned subsidiary's, integrated steel project being set up in Jharkhand, acquisition of existing steel plants and to fund the working capital requirements of the company and its wholly owned subsidiaries.

The subsidiary has already been allotted 384 acres of iron ore mine in Bokna village in Jharkhand to feed iron ore requirements to the above project.

The book-running lead managers to the issue are Karvy Investor Services and Centrum Capital.

A quick look at AML Steel FPO:

Issue snapshot
Total issue size of Rs 120 crore (Rs 1.2 billion)
Rs 20 crore (Rs 200 million) to be raised through Promotors
Rs 100 crore (Rs 1 billion) to be raised through public
Promoter's holding pre-issue - 74.78%

Company snapshot
Listed on MSE since 1996
Name changed from Ashok Magnetics to AML Steel in 2005

Latest developments
WOS signed a MOU with Jharkhand government for setting up a steel plant
To set up a two million tpa integrated steel plant at Jharkhand
Project to be completed in three phases
Subsidiary has been allotted 384 acres of iron ore mine in Jharkhand

Objects of the issue
Investment in WOS's integrated steel project being set up in Jharkhand
Acquisition of existing steel plants

Financial details

FY05
Net sales at Rs 57.55 crore versus Rs 30.38 crore
Net profit at Rs 2.95 crore versus Rs 0.52 crore
EPS at Rs 9.83

9M FY06
Net sales at Rs 110.97 crore
Net profit at Rs 8.81 crore
EPS at Rs 11.75

Plethico Pharmaceuticals IPO opens today for subscription



Plethico Pharmaceuticals has opened for subscription today through 100% book-built initial public offer.

Saturday, April 08, 2006

Liberty Phosphate plans public issue of 6mn shares

Liberty Phosphate will come out with a public issue of 60 lakh (Rs 6 million) equity shares. The board has approved the draft prospectus for the public issue of 60 lakh equity shares, reports Business Standard.

Shivalik Global to list on bourses on April 10

Shivalik Global will list on the stock exchanges on April 10, 06. Its BSE ID is 532730 and NSE ID is SGL. The stock was issued at Rs 60 per share.

Uttam Sugar Mills to list on April 10

Uttam Sugar Mills will list on the stock exchanges on April 10, 06. Its BSE ID is 532729 and NSE ID is UTTAMSUGAR.

The stock was issued at Rs 340 per share. The issue was subscribed 4.80 times.

The company had entered the capital market on March 16 with a public issue of 40,00,000 equity shares of Rs 10 each through 100% book building process. The price band had been fixed at Rs 290-340.

The company intended to utilise the funds raised through this issue to part finance its expansion plan involving an investment of Rs 286 crore (Rs 2.86 billion).

Uttam Sugar Mills is promoted by Adlakha family, having experience in providing turnkey solutions for setting up sugar mills of over 20 years.

IL&FS Investsmart and IDBI Capital Market Services were the book running lead managers and Intime Spectrum Registry was the registrar to the issue.

Indian Bank plans IPO in 2007

Indian Bank may go in for an initial public offer, IPO, in January or February 2007, K C Chakrabarty, chairman and managing director, Indian Bank, has said, reports The Hindu Busines Line.

The cabinet approval for writing off its accumulated losses of Rs 3,830 crore (Rs 38.30 billion) against its capital base of Rs 4,574 crore (Rs 45.74 billion) was announced on Wednesday. Chakrabarty said he had not yet received the official communication.

Asked to comment about the approval to convert a portion of its remaining equity capital of Rs 744 crore (Rs 7.44 billion) into preference capital, Chakrabarty said that this could happen only after the passing of banking laws amendment bill in the monsoon session of parliament.

Chakrabarty said that the IPO would happen in the bank's centenary year, which commences on August 15, 2006. He said that the IPO would be timely since some of the pre-IPO costs would be absorbed by the centenary celebrations budget.

PowerGrid IPO will hit market by end of year

PowerGrid will come out with an initial public offer, IPO by the end of this year, reports Business Standard.

AML Steel files DRHP with SEBI for FPO

AML Steel has filed draft red herring prospectus, DRHP, with securities & exchange board of India, SEBI for its forthcoming follow-on public issue, FPO, of equity shares of Rs 10 each for cash at a premium aggregating to Rs 120 crore (Rs 1.20 billion), as per company announcements.

The issue is to be made through a 100% book building process to be conducted on the Mumbai, BSE and National Stock Exchange, NSE.

Of the Rs 120 crore (Rs 1.20 billion) to be raised through the issue, Rs 20 crore (Rs 200 million) would be raised as promoter’s contribution and the balance Rs 100 crore (Rs 1 billion) would be the net offer to public.

The company is raising the money to part finance its wholly owned subsidiary's, integrated steel project being set up in Jharkhand, acquisition of existing steel plants and to fund the working capital requirements of the company and its wholly owned subsidiaries.

The subsidiary has already been allotted 384 acres of iron ore mine in Bokna village in Jharkhand to feed iron ore requirements to the above project.

The book-running lead managers to the issue are Karvy Investor Services and Centrum Capital.

Thursday, April 06, 2006

Retail investors will pay only Rs 16/sh for RPL IPO

Reliance Petroleum, RPL, today filed its red herring prospectus, RHP, which has been taken on record by the registrar of companies, ROC, Gujarat.

RPL proposes to enter the capital markets with a public issue of 135 crore equity shares of Rs 10 each for cash at a premium to be decided through a book building route to be conducted on the stock exchange, Mumbai, BSE and the National Stock Exchange, as per the company announcements.

The price band has been set at Rs 57 to Rs 62 for the proposed issue.

Initially, in the draft red herring prospectus, DRHP, RPL has proposed to offer 180 crore shares.

Subsequently, RPL placed 45 crore shares through a pre-IPO placement to various investors including foreign institutional investors, FII, domestic investment institutions, insurance companies and banks.

The price per share for the pre-IPO allotment made is lower of Rs 60 or the issue price in the proposed IPO. These equity shares are locked in for the period of one year from the date of allotment of equity shares in the proposed IPO, wherever applicable, as per SEBI guidelines.

Consequently, the issue size has come down to 135 crore shares.

Reliance Industries, RIL will subscribe to 90 crore shares at the issue price in the proposed IPO. For this purpose, RIL would be making a payment towards these 90 crore equity shares one day prior to the opening of the issue at Rs 62 per share amounting to Rs 5,580 crore (Rs 55.80 billion).

The net size of the IPO available to the public is 45 crore shares.

Retail investors will have the option of pay only Rs 16 per share on application. Retail investors can apply for a minimum 100 shares and a maximum of 1600 shares.

The issue will open for subscription on Thursday, April 13, 2006 and will close on Thursday, April 20, 2006.

The issue is being made to part finance the Rs 27,000 crore (Rs 270 billion) export-oriented refinery being set up in a special economic zone, SEZ, at Jamnagar, Gujarat. The export-oriented refinery will have a capacity to process 5,80,000 barrels per stream days making it the sixth largest refinery in the world. As a part of this project, RPL is also setting up a 900,000 tonne per annum polypropylene plant.

The project is likely to go on stream by December 2008.

Santa-Banta plans Rs 60cr IPO

There is something about Punjabi brand of humor that makes it larger than life. From the large volume sales of Khuswant Singh’s joke books, to Jaspal Bhatti’s Laugher Factory to the Santabanta (it is a registered brand!) jokes, the commercial proposition is no laughing matter, reports The Economic Times.

Ask JD Ghai, an IT entrepreneur, who has made Santa-Banta brand of humor much more than a few slapstick jokes. As a chairman of the Chandigarh-based company that owns the brand and website santabanta.com (growing 100% every year), the funny portal is serious ‘infotainment business’ with possibilities running in a multi crore turnover.

It is serious enough for him to consider that some of the millions who hit his website every month might reach back for their wallets for a chance to own a piece of the company that runs the site. In short, Ghai is planning a public issue that would have him laughing his way to the markets for Rs 60 crore (Rs 600 million) IPO, initial public offer, around October.

“The funds raised from the IPO would be used for establishing the brand further and to cover other activities which would include among other things an infotainment TV channel called Santabanta.com,” he told.

The company has been profitable since three years and the following the pre-planned path, the management is hoping to go public in coming fiscal. “The web portal that has a lot of fan following abroad and it alone has helped the company clock an annual turnover of more than Rs 1 crore (Rs 10 million). About 90% of this is advertisement revenue. Some of the best European and American corporate advertise on our site,” reveals the jolly CEO.

The company that started as an idea in the mind of a Ludhiana-based real estate dealer has not only survived the dotcom bust but boomed in the last six years to become a thriving media house. “The portal was launched by Kiran Bedi, with a lot of fanfare just two months before the dotcom bust happened,” recalls Ghai wryly.

As a management graduate who had thriving family business of real estate but wanted to be ‘self-made’ man, Ghai chose to wade through the ‘difficult times’ and braved a split with more technically sound partners to turn around the portal. Eventually, the company shifted base from Ludhiana to Chandigarh three years ago when it became profitable.

Wednesday, April 05, 2006

JRG Securities IPO opens on April 17

JRG Securities is entering the capital market on April 17, 2006 for subscription, with a initial public offer, IPO, of 36.25 lakh equity shares of Rs 10 each at a premium of Rs 30 per share aggregating to Rs 14.50 crore (Rs 145 million).

The issue will close on April 21, 2006.

The IPO is aimed at technology upgradation, establishment of 30 new regional offices and investment in Middle East operations.

The company is proposed to be listed on the Bombay Stock Exchange.

Keynote Corporate Services is the book running lead manager and Registrar Bigshare Services is the registrar to the issue.

Plethico Pharmaceuticals IPO opens on April 10

The 100% book-built initial public offer, IPO, of Plethico Pharmaceuticals, one of India’s fastest growing pharmaceutical companies in the herbal and nutraceuticals space having global presence, will open for subscription on April 10, 2006, as per the company announcements.

The issue will close on April 17, 2006. The price band has been fixed at Rs 280 to Rs 300.

Plethico expects to raise Rs 110 crore (Rs 1.10 billion) through the IPO. Of the total issue, 60% will be allocated to QIBs, 10% to non-institutional investors and the balance to the retail investors.

The shares will be listed on the Bombay Stock Exchange and the National Stock Exchange.

Shashikant Patel, Chairman & Managing Director said, “Our motto is ‘Pledged to Ethics’ and we strongly believe that this IPO will enable investors to participate in our success story. We have been in the pharma business for over 40 years. We are a fast growing company and our past track record is a testimony to the pace at which we have grown.”

Plethico has chosen the path of being a multi-product company, with a large global presence and has the following product range: Herbal and Allopathic Formulations, Consumer Healthcare Products and Nutraceuticals, Food Supplements, Disposables and Hospitals Consumables, and Veterinary Products. The company has a portfolio of more than 400 formulations in more than 39 therapeutic segments.

Plethico has two fully integrated state-of-the-art manufacturing units located near Indore, which serve as the backbone of the entire operations. These facilities are being upgraded as per stringent norms of UK MHRA.

For the year ended September 2005, it had a total gross block of Rs 115.51 crore (Rs 1.15 billion). It recorded total revenues of Rs 224.48 crore (Rs 2.24 billion) in 2004-05 and Rs 64.21 crore (Rs 642 million) for the quarter ended December 2005, with PAT of Rs 56.13 crore (Rs 561.3 million) and Rs 18.54 crore (Rs 185.4 million), respectively.

Anand Rathi Securities is the sole book running lead manager and Enam Securities is the Syndicate Member, while Intime Spectrum Registry is the registrar to the issue.

Plethico Pharmaceuticals was established in the year 1985, with the objective of establishing as one of the major players in the domestic pharma market. It manufactures a wide range of products in various therapeutic segments like anti-malarials, anti-tuberculars, anti-asthmatics, antibiotics, NSAIDs, Nutraceuticals, anti-invectives, anti-bacterials, herbal products, etc. It exports to more than 45 countries with strategic tie-ups and a strong marketing and global distribution network in the Russia/CIS region, the African Continent, Latin American Countries, Middle East and South East Asia.

Plethico has chalked out ambitious plans for focused marketing in East Europe, GCC and South East Asian Countries. Plethico has always adopted the “Branded Generic” model for marketing allopathic formulations in India. This model has been replicated in the semi-regulated markets spanning Asia, Africa, Latin America and Russia/CIS regions.

Plethico’s formulation business operates in over 45 countries including India. The company employs approximately 250 sales personnel across these markets; of these over 150 sales representatives and front line managers are employed in markets outside India.

Tuesday, April 04, 2006

Fortis Healthcare plans Rs 1000cr IPO

After clinching the biggest acquisition in healthcare (Escorts Hearts Institute), the Shivinder-Malvinder promoted Fortis Healthcare is set to hit the capital market with the biggest initial public offer, IPO, in the sector, reports The Economic Times.

Though the company is still firming up the final issue size, sources close to the development said the size is expected to be in the region of Rs 1,000-1,300 crore (Rs 10-13 billion).

The company is learnt to have already roped in JM Morgan Stanley, Citi group and Kotak Mahindra to handle the issue. Fortis has also mandated consultancy major McKinsey to recommend a roadmap and strategy for the company’s future growth plan for the next three-four years.

McKinsey is expected to mainly suggest whether the company should go for greenfield and acquisition route to expand its hospital chain or opt for the management contract route for its pro-posed national spread.

Fortis Healthcare has set an ambitious national spread for its hospital chain, with a target of taking the total number of hospitals to 35 in next three-four years. The company currently has 10 hospitals, with two more hospitals set to be added in the next two months. Of this, one would be in South Delhi and the other in Jammu & Kashmir.

When contacted, Shivinder Singh, MD of Fortis Healthcare said the company’s IPO programme is still in the planning stage and no numbers have been finalised for the proposed offer yet.

The extent of equity stake, which will be offered through the proposed IPO, could not be ascertained. Ranbaxy, the promoters’ flagship company, has 17% stake in Fortis Healthcare, while the majority 83% is with the promoter family and friends.

Sources said a major factor in arriving at the final figure for the IPO would depend on whether Fortis would go solo for setting up its proposed Rs 1,200 crore (Rs 12 billion) Medicity project in Gurgaon or would join hands with leading cardiologist Dr Naresh Trehan who has also announced a Medicity project in Gurgaon.

The two have been in talks for entering into a tie-up for jointly establishing the Medicity project, which would have significantly brought down the fund to be raised by the company. There is, however, still no agreement on this between the two. The Medicity project will have multispeciality hospital, medical, nursing and paramedical colleges and accommodation facilities for the attendants of patients.

Among the hospitals owned by Fortis are the multi-speciality hospitals in Mohali (Punjab) and Noida and the two Escort hospitals - in Delhi and Faridabad.

Hutch Essar plans jumbo Rs 5000cr IPO

Hutchison Essar is mulling one of the biggest initial public offer, IPO, ever in India. The offer, pegged at Rs 5,000 crore (Rs 50 billion), is one of the biggest ever and is in the league of TCS and NTPC, which had raised USD 1 billion plus, a couple of years back and now Reliance Petroleum which is raising a little more than that, reports The Economic Times.

Sources suggest that Hutchison Essar would float close to 10% of the equity with fresh issue of shares. This would peg its valuation at close to USD 12 billion, making its market capitalisation about the same level as SBI, the largest bank in India.

According to sources, the mandate for managing the public offer has been given to Kotak Mahindra Capital.

Even as there were market rumours that the proposed IPO would be delayed in light of recent developments including the Orascom issue, sources inform that the draft prospectus could be filed soon with Sebi.

Interestingly, Kotak Group had recently sold off its equity stake in Hutchison Essar. Asim Ghosh, managing director of Hutchison Essar, said, “It is premature to comment.

We have neither finalised the size of the issue nor the percentage of float nor the exact time when the IPO would come out.” Sources indicate that the internal valuations of the company are being pegged in the region of USD 12 billion, which also stacks with the IPO size being talked about in the streets.

If that is the eventual valuation, it could place Hutch at a higher valuation compared to Reliance Communications Ventures, RCoVL, the holding arm of Reliance Infocomm.

RCoVL is currently valued at Rs 40,000 crore (Rs 400 billion) or about USD 9 billion in terms of its market cap. However, Hutchison Essar’s valuation would be much lower than that of Bharti Tele Ventures whose market capitalisation is around USD 18 billion currently. Hutchison Essar’s IPO would be among some other mega public offers which are slated to hit the bourses this year.

Among the big issues of the past, IT major TCS scooped more than Rs 5,400 crore (Rs 54 billion) while power company NTPC raised a similar amount two years back.

Lokesh Machines IPO opens on April 7

Lokesh Machines is entering the capital market on April 7, 2006 with an initial public offer, IPO, of 30 lakh equity shares of Rs 10 each to fund its expansion cum upgradation plans, through 100% book building process.

The issue would constitute 25.47% of the fully diluted post issue paid up capital of the company.

The issue will close on April 13, 2006 and the price band has been fixed between Rs 130 and Rs 140.

The three-decade old Hyderabad-based company began operations as a machine tool accessories provider. The company has turned into a Rs 100 crore (Rs 1 billion) enterprise carving out a niche in designing, developing and manufacturing special purpose machines, SPMs and CNC machines for India's automotive and engineering giants.

The IPO is aimed at funding the company's growth plan that encompasses setting up the facility for machining and supply of cylinder blocks and cylinder heads for commercial vehicles.

This expansion plan will also seek to modernise the project and upgrade the existing facilities for manufacture of CNC Machine Tools aimed to cater to the export markets and working capital needs.

The company is proposed to be listed on the BSE and the NSE.

Karvy Investor Services and UTI Securities are the book running lead manager and Karvy Computershare private is the registrar to the issue.

Monday, April 03, 2006

Kamdhenu Ispat IPO opens today for subscription

Kamdhenu Ispat entered the capital market today for subscription with an initial public offer, IPO, of 1.28 crore equity shares.

The issue comprises promoters contribution of 34.74 lakh equity shares of Rs 10 each at a premium of Rs 15 each and a net offer to the public of 91.25 lakh equity shares.

The issue will also have green shoe option of 13.68 lakh equity shares to be offered at a price of Rs 25 each. Issue will constitute 67.33% of fully diluted post-issue capital of the company (without green-shoe) and 69.2% (with green shoe).

The issue will close on April 8, 2006. The proceeds of the equity shares of Rs 10 each priced at Rs 25 would be used to set up stockyards and meet out working capital requirements.

The net proceeds of the issue would be deployed to set up five more stockyards for marketing the company's construction material, company chairman Satish Aggarwal said.

The company already has five stockyards and proposes to build five more each in Himachal Pradesh, Rajasthan, Gujarat, Madhya Pradesh and Uttar Pradesh, he said.

The current steel production capacity of the company's plant at Rajasthan including its 22 franchise steel units is over eight lakh tonnes per annum.

Kamdhenu that deals in steel bars, cement, and SS water pipes has also taken up a housing project as a franchise worth Rs 50 crore (Rs 500 million) to be developed near Chandigarh.

The company is proposed to be listed on the BSE and the NSE.

Chartered Capital and Investment is lead manager and Karvy Computershare is registrar to the issue.

Sun TV IPO opens today for subscription

Sun TV, the largest television broadcaster in the country in terms of audience share with a leadership position in the South Indian states of Tamil Nadu and Kerala, entered the capital market today for subscription with an initial public offer, IPO, of 68,89,000 equity shares of Rs 10 each through 100% book building route.

The company has been enjoying leadership position in both these states for the past three consecutive years. The company has been commanding 71% audience share for its Tamil channels and 32% for its Malayalam channels for the nine months ended December 31 2005.

The issue will close on April 7, 2006 and the price band has been fixed between Rs 730 and Rs 875.

The company is to raise funds for capitalization of subsidiaries, launch of new TV channels, construction of corporate office and studio facilities, purchase of new equipment and upgradation of equipment and general corporate purposes.

The company is proposed to be listed on the BSE and the NSE.

DSP Merrill Lynch and Kotak Mahindra Capital Company are the book running lead manager and Karvy Computershare is the registrar to the issue.

Gammon Infrastructure files DRHP for IPO

Gammon Infrastructure Projects, GIPL, amongst the first companies in India to be modeled as an infrastructure development company incorporated by Gammon India, has filed its draft red herring prospectus, DRHP, with the securities & exchange board of India, Sebi, for its forthcoming initial public offering, IPO as per company announcements.

The company plans to enter the capital market with a public issue of 2,71,51,500 equity shares of Rs 10 each for cash at a premium to be decided through a book-building process.

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.