Indian IPO

All details about Hot Indian Primary Market.

Wednesday, August 30, 2006

Cambridge Technology to raise Rs 24cr through IPO

Cambridge Technology Enterprises, CTEL, a business transformations solutions and comprehensive Service-Oriented Architecture, SOA based solutions service provider is likely to hit the capital market by year end with its maiden public offering to raise Rs 24 crore (Rs 240 million) to part fund its expansion plans, reports The Economic Times.

"We filed a draft red herring prospectus in first week of June and are waiting for Sebi clearance. We would, if we get the clearance, hit the market with our IPO by December," CTEL's chief financial officer Y Ramesh Reddy said.

The company is planning to invest about Rs 31 crore (Rs 310 million), most of which would be raised by the IPO, for strategic acquisitions, enhance global collaboration, infrastructure and establishing SOA competency centres.

"We have Rs 15.5 crore (Rs 155 million) for acquisitions. We are looking at companies who have strong capabilities in oracle technology," Reddy said adding the company is going to spend around Rs 4 crore (Rs 40 million) for expanding their Hyderabad facility, while Rs one-crore would be spent on enhancing competency centre in Hyderabad and opening a new one in the US.

Ramesh also said plans are afoot to open branches in more cities in India and to increasing the existing headcount.

Omaxe may come out with Rs 1000cr IPO

Possibly enthused by the upswing in the capital market, real estate developer Omaxe may come out with an initial public offer in the next few months to raise an estimated Rs 1,000 crore (Rs 10 billion), reports The Economic Times.

"We are looking into various possibilities. We are alive at the market situation," a company official said.

Asked if the possibilities included an IPO, he did not rule it out saying, "Nothing is concrete at the moment. IPO will happen but we don't know when."

Market source, however, said that the company has "intensified work on this front and is looking at raising about Rs 1,000 crore through the public offer."

If all goes as planned, the IPO should hit the market in the next six months, the source said.

The market after recovering from summer blues saw successful public offers like that of Tech Mahindra and GMR Infrastructure earlier this month which were oversubscribed 72 and seven times respectively.

If it comes out with the IPO, Omaxe will be joining the likes of other real estate developers DLF, Parsvnath Developers and Ahluwalia Contracts India, which have already filed prospectus for public offers.

The multi-crore developer Omaxe has currently 100 million square feet of area under develpoment, spread across 30 towns in nine states. It has already delivered 10 projects consisting of eight residential and two commercial covering 4.2 million sq ft area valued at Rs 360 crore (Rs 3.60 billion).

It is also currently developing a mall at Greater Noida where Reliance Retail will be the anchor store.

Tuesday, August 29, 2006

Usher Agro IPO opens on Sep 5; fixes issue price at Rs 15

Usher Agro, an agri-processing company, is entering the capital market with a public issue of 1,20,12,000 equity shares of Rs 10 each for cash at a premium of Rs 5 aggregating to Rs 18.02 crore (Rs 180.2 million), as per press release.

The fixed price issue opens for subscription on September 5, 2006 and closes on September 11, 2006.

The total offer includes a promoters' contribution to the extent of 32 lakh equity shares at the same price of Rs 15 per share aggregating to Rs 4.80 crore (Rs 48 million). Thus the net offer to public stands reduced to 88.12 lakh equity shares.

Interestingly, the lead managers to the issue IDBI Capital Market Services is offering an attractive safety net for investors picking a stake in this offer. Under the scheme, which is offered exclusively to resident individual allottees, the safety net will be limited upto a maximum of 800 equity shares. The scheme will be open for a period of six months from the date of allotment of equity shares in the proposed issue.

The company is raising the funds through this fixed price public issue to fund its wheat roller flourmill with the capacity 250 MT per day at Mathura, which is expected to start its commercial production shortly. The company also proposes to modernize its existing rice mill plant at Mathura and set up new 1 MW Co-generation power plant based on rice husk (a by product of company's rice mill) at Mathura for captive consumption.

The company is currently operating two rice mills situated at Mathura in U.P. and Buxar in Bihar producing raw white rice and parboiled rice of different grades of both basmati and non-basmati rice. The Mathura (U.P.) Plant is based on conventional technology, has an installed capacity of 10800 TPA and at Buxar, which is a fully automatic rice plant, has an installed capacity of 46800 TPA. The company produces raw white rice, parboiled rice and steam rice.

In last 10 years of successful operations the sales of the company have grown from Rs 1.01 crore (Rs 10.1 million) in first financial year i.e. 1996-97 to Rs 35.31crore (Rs 353.1 million) for the period of eleven months ending May 31, 2006. The profit has also increased approximately. 50 time during the same period, from Rs 3.01 lakh in 1996-97 to Rs 1.45 crore (Rs 14.5 million) in the year 2005-06 (11 month period).

Vinod Kumar Chaturvedi, managing director of the company, said "we expect growth in both rice and wheat products. Growth in packaged Atta industry is driven by four factors viz. rise in disposable income, value of time, demand for improved quality and hygiene and economic / non economy of small scale Chakkis."

The lead managers to the issue are IDBI Capital Market Services.

Deep Industries IPO opens today

Deep Industries, provider of air and gas compression services to oil and gas exploration companies, is open for subscription today with a fixed price IPO of 1,13,00,000 equity shares of Rs 10 each at a price of Rs 36 aggregating to Rs 40.68 crore (Rs 406.8 million).

The issue constituting 56.50% of the post issue paid up capital of the company closes on September 4, 2006.

This fixed price public issue of 1,13,00,000 equity shares of face value of Rs 10 each include 11,30,000 equity shares reserved for employees and directors; 28,25,000 equity shares reserved for NRIs and FIIs, and 11,30,000 equity shares reserved for scheduled banks, Indian mutual funds, Indian and multilateral development financial institutions, leaving a net issue to public of 62,15,000 equity shares.

A minimum of 31,07,500 equity shares constituting at least 50% of the net offer to the public will be available for allocation on a proportionate basis as retail portion and an equal quantity also for other than retail portion. The equity shares have proposed to be listed on Bombay Stock Exchange, BSE.

Deep Industries proposes to utilize the funds raised through this public issue to part finance its plans for procurement of plant and machinery for business expansion and office equipments valued at Rs 51.50 crore (Rs 515 million).

IDBI Capital Market Services is the lead manager to the issue and NEXGEN Capitals and Keynote Corporate Services are the co-lead managers to the issue. Intime Spectrum Registry is the registrar and transfer agent.

The total fund requirement along with working capital need is estimated at Rs 60.28 crore (Rs 602.8 million). The company has already made pre-issue/allotment of 22 lakh equity shares to promoters, promoter group and others at Rs 30 per equity share aggregating to Rs 6.60 crore (Rs 66 million). The company has received sanction of Rs 13 crore- (Rs 130 million) term loan from Union Bank of India.

The company currently owns a set of 10 compressor packages to execute its services, out of which 2 are currently deployed in USA. Further, 3 compressors have been deployed at ONGC site for executing compression contract. It has a leased facility in Gandhinagar, Gujarat; to undertake refurbishment, repairs and retrofitting of the existing/newly acquired equipment of self and client.

It provides comprehensive contract compression services, which includes operations and maintenance services. It proactively repackages or reconfigures some of its existing fleet to adapt to customers' needs. The company currently operates primarily in the market for transportable natural gas compression units of up to 2400 HP. It also provides transportation services for the transport of liquid. However it has gradually moved from a liquid transport service provider to compression service providers, a more value added service.

The company has now been providing compression services to esteemed clients like ONGC since the last nine years. Other clients include GACL, IOC etc. The ultimate aim of the company is to become an integrated service provider to the oil and gas industry. For this purpose it has purchased one 100-ton Cardwell KB500 Work Over Rig for providing Mobile Work Over Rig services.

The company has joined hands with experienced companies like M/s Valerus Compression Services, Limited Partnership, ('Valerus") Houston Texas, USA for gas compressors and production equipments to act as Sales Representatives for Valerus in all over Asian Region. It has also entered into MoU with M/s PT Indrillco Bakti ('PIB"), Jakarta, Indonesia, under which PIB has agreed to provide technical know-how/collaboration in connection with work over services for 30 to 200 ton capacity rigs.

Its income includes income from air/gas compression services and transportation income. The company has gone on a drive to enhance profitability and has began concentrating on high margin contracts which has led to a rise in EBIDTA from Rs 266.16 lakh in fiscal 2005 to Rs 353.81 lakh in fiscal 2006 and rise in PAT from Rs 63.49 lakh to Rs 179 lakh during the same period, while marginally bringing down the total income from Rs 821.59 lakh in fiscal 2005 to Rs 766.32 lakh in fiscal 2006.

The company has recently bid for 1 coal bed methane block in Andhra Pradesh jointly with Coal Gas Mart LLC, USA and Adinath Exim Resources, Ahmedabad and one coal bed methane block in Madhya Pradesh jointly with Coal Gas Mart LLC, USA.

Atlanta IPO opens on Sept 1

Atlanta, the company in the business of construction, infrastructure and mining, is coming out with an initial public offering of 43 lakh equity shares of Rs 10 each through a 100% book building process, reports The Hindu Business Line.

The issue opens on September 1 and closes on September 7. The price band has been fixed between Rs 130 and Rs 150 a share.

The net issue to the public will be 41 lakh equity shares with the rest being set aside for employees.

The company proposes to utilise part of the net proceeds of the issue for investing in Balaji Tollways, a SPV set up for the execution of the Nagpur-Kondhali four-lane BOT project.

Atlanta in a joint venture with SREI Infrastructure Finance, had bid for "improvement, operation and maintenance including strengthening and widening of the existing 2-lane road to 4-lane dual carriageway from 9.2 km to 50 km on the NH-6 (Nagpur-Kondhali section) in Maharastra." Of the proceeds of the issue, around Rs 42.92 crore (Rs 429.2 million) will be invested in the equity capital of the SPV. At present, Atlanta holds 34% and SREI Infrastructure Finance 26% of the paid-up capital in the SPV. Individuals forming part of the promoter group of Atlanta hold rest of the equity. Subsequent to this investment, Atlanta's shareholding in the SPV will increase to 74%.

At a press meet, Rajhoo Bbarot, managing director, Atlanta, said: "There has been no delay in the projects because of this IPO." However, the company's prospectus mentions, "there has been a delay in commencement of our schedule for the proposed project."

The net profit after tax has gone up from Rs 2.41 crore (Rs 24.1 million) to Rs 15.56 crore (Rs 155.6 million) between 2001-02 and the year ended March 31, 2006.

HOV Services IPO opens Sept 4, price band at Rs 200-240

HOV Services, providing business process outsourcing, BPO services to the finance and accounting, F&A business sector with operations in India and the US, proposes to enter the capital market on September 4, 2006 with an initial public offering, IPO of 4,050,000 equity shares of Rs 10 each in the price band of Rs 200 to Rs 240 per equity share, as per press release.

The issue closes on September 7, 2006 and constitutes 32.3% of the fully diluted post Issue paid up capital of the company.

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

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

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

The company intends to deploy the net proceeds of the issue to part finance its plans of capital expenditure and acquisitions. In addition, it also proposes to infuse funds into its subsidiary, HOV Services, LLC for repayment of Class B Units issued as consideration for acquisition of subsidiaries as well as redemption of Class B units issued by the subsidiary.

DSP Merrill Lynch is the BRLM, JM Morgan Stanley Private Limited is the Co-BRLM for the Issue and Karvy Computershare Private Limited is the registrar.

Currently, the company has a total of 410 seats located in Pune and the US. It intends to set up and fill the 750 seats in the new facilities by March 31, 2007 in 3 phases to meet its planned business requirements. The company has in the past grown its business and operations through both organic and inorganic routes. Going forward, it believes that strategic investment and acquisitions may continue to act as an enabler to growing its business.

The company has positioned itself in the F&A community by providing practical solutions to core-level business management functions. By developing core competencies to serve the needs of FORTUNE 500 companies and deploying unique skill set via a global service base, it provides a unified strategy to meet any basic business financial requirement

The company has achieved improved financial performances over the past several years. Based on the proforma combined summarized income statement, its revenue has grown from Rs 947.9 million in the fiscal year ended March 31, 2003 to Rs 1,638.4 million in the fiscal year ended March 31, 2006. Its profits before interest, depreciation and taxation has also grown from Rs 20.6 million in the fiscal year ended March 31, 2003 to Rs 210.0 million in the fiscal year ended March 31, 2006.

The Indian BPO industry has developed a reputation for being a cost effective provider of quality service and processes. NASSCOM has projected the size of the BPO industry in 2010 to be approximately USD 25 billion.

ACE IPO opens on Sept 1, price band at Rs 110-130

Action Construction Equipment, ACE, an established manufacturer of mobile cranes, mobile tower cranes and construction equipment in India, proposes to enter the capital market on September 1, 2006 with a public issue of 46,00,000 equity shares of Rs 10 each in the price band of Rs 110-130 per equity share, as per press release.

The issue closes on September 7, 2006. The net issue to the public would constitute 25.03% of the fully diluted post issue paid-up capital of the company.

The issue is being made through the 100% voluntary book building process wherein not more than 50% of the net offer to the public shall be available for allocation to qualified institutional buyers, QIB's on a proportionate basis (out of which 5% shall be allocated proportionately to mutual funds. Mutual fund applicants shall also be eligible for proportionate allocation under the balance available for QIB).

Further, not less than 15% of the net offer to the public shall be available for allocation on a proportionate basis to non institutional bidders and not less than 35% of the net offer to the public shall be available for allocation on a proportionate basis to retail bidders, subject to valid bids being received at or above the issue price. Further, there is reservation for the employees of the company to the extent of 1,00,000 equity shares which would be allotted on the proportionate basis. The company has not opted for grading of this issue.

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

The Action Construction Equipment proposes to invest part of the net proceeds of the issue to set up a new plant for manufacturing loaders, higher capacity tower cranes and construction equipment along with expansion and modernization of the existing capacities and facilities. The plan also covers setting up of a joint venture with Tigieffe SRL of Italy and setting up a corporate office and R&D center. ACE also proposes to utilize part of the funds for acquisition and investment as also working capital requirement.

Karvy Investors Services and UTI Securities are the BRLMs for the issue and Karvy Computershare is the registrar.

ACE is a decade old enterprise and started with manufacturing of Hydraulic Mobile Cranes of different capacities under the brand name of "ACE" at industrial township of Faridabad. The company is an established manufacturer of Hydraulic Mobile Cranes, Mobile Tower Cranes and Construction Equipment in the country existing since more than a decade and enjoys a consolidated presence in all major Infrastructure, Construction, Heavy Engineering and Industrial Projects throughout the country. The Company is dedicated to provide its customers with latest technology construction equipment and efficient sales and after sales service aimed at satisfying their real needs.

The company has shown a consistent growth in operations and profitability in the last five years. From a turnover of Rs 10.79 crore (Rs 107.9 million) in the financial year 2001-02, the company has achieved a turnover of Rs 165.68 crore (Rs 1.65 billion) in the financial year 2005-06. The sales turnover of the company has grown at a CAGR of 96.86% in a span of last four years. The net profit has also gone up from Rs 5.15 lakh in 2001-02 to Rs 4.05 crore (Rs 40.5 million) in 2004-05 and further to Rs 13.01 crore (Rs 130.1 million) in FY 2005-06. For the first quarter of the current year ended June 30, 2006, the company has achieved net sales of Rs 49.13 crore (Rs 491.3 million) and net profit of Rs 3.96 crore (Rs 39.6 million).

Monday, August 28, 2006

KEW Industries IPO opens today

KEW Industries, a manufacturer and supplier of defence stores and automobile components for OEMs, is open for subscription today with a fixed price public issue of 70,00,000 equity shares of Rs 10 each at a price of Rs 30 aggregating to Rs 21 crore (Rs 210 million).

The issue closes on September 01, 2006.

The company intends to utilize the proceeds of the issue for modernization and expansion of manufacturing facility and expansion of research and development facilities. It is targeting to increase its presence across its core business areas of manufacturing automotive components. The growth witnessed by automotive sector has also created significant opportunities for auto component manufacturers, which encourages expansion and investment.

KEW Industries, enjoying the reputation of a known manufacturer of automotive components and shell bodies for Ministry of Defence, has well established its brand for product range in the domestic and export markets. It manufactures SG Iron and Cast Iron products for domestic and export markets.

Its major client portfolio includes Ashok Leyland, Tata Motors, Punjab Tractors, Indian Ordinance Factories under Ministry of Defence, and Rail Coach Factory at Kapurthala.

With the change in domestic and international market scenario, KEW has started diversifying its concentration towards automobile sector. The company is exporting auto components to CBM HPA in Italy and Defontaine in France.

The company's business strength can be judged from the fact that its total income has jumped from Rs 30.13 crore (Rs 301.3 million) in FY 2002 to Rs 39.64 crore (Rs 396.4 million) in FY 2006 and profit after tax during the same period has shot up from Rs 1.85 crore (Rs 18.5 million) to Rs 2.99 crore (Rs 29.9 million).

Chartered Capital and Investments and Keynote Corporate Services are the lead managers to the issue and Karvy Computershare is the registrar.

Friday, August 25, 2006

Power Ministry pushes for IPOs of PFC, NHPC, REC, PGCIL

With disinvestment on hold, the Power Ministry is now seeking approval for initial public Offerings, IPOs of PFC, NHPC, REC and PowerGrid in this fiscal without offloading any government stake in the companies, reports agencies.

Power Finance Corporation, which had earlier received cabinet nod for an IPO of 10% along with 5% sale of government equity, is now likely to go for only fresh equity, official sources told agencies.

Sources said the Power Ministry has written to Cabinet Secretary B K Chaturvedi, asking permission for PFC to go ahead with its initial public offer of 10%.

PFC had in June this year filed a draft prospectus with market regulator Sebi for the proposed IPO, but the issue was delayed after Prime Minister Manmohan Singh put on hold all disinvestment decisions.

Sources said besides PFC, the Ministry is also targeting to issue fresh equity of up to 24% in National Hydroelectric Power Corporation (NHPC), Rural Electrification Corporation (REC) and Power Grid Corporation of India.

A Cabinet note for the IPOs of these PSUs is yet to be moved, sources said, adding even if Cabinet approval is granted for issuing 24% equity, the companies would initially go for only 10%.

The public offers of NHPC, REC, and PGCIL as also North-Eastern Electric Power Corporation (NEEPCO) are targeted within this financial year.

However, Power Minister Sushilkumar Shinde refused to give any timeframe for IPOs of these companies.

"The IPOs are in the process, it will take time. I cannot say if it will happen in this fiscal," Shinde said on the sidelines of a conference here.

SBH plans bonus, stock split before IPO

State Bank of Hyderabad (SBH) is planning to issue bonus shares to its parent, State Bank of India, followed by the splitting of its own stock in a bid to make its proposed maiden public offer acceptable to the market.

With a high EPS of Rs 2,476 and an abysmally low equity capital base of Rs 17.25 crore, SBH, the biggest and most profitable of all the subsidiaries of SBI, would find it difficult to market such a highly valued stock in the capital market. A bonus issue and a splitting of its Rs 100 face value shares would pare down its per share book value to a more acceptable level, Amitabha Guha, the managing director of SBH, said.

Guha is hopeful that Parliament would pass amendments to the SBI (Subsidiary Bank) Act, 1959 by Friday, enabling the bank to give effect to these proposals. The amendments were approved by the Cabinet in March.

As of now, SBH is not allowed to split its stocks, thanks to the Act’s restrictions, which requires its subsidiaries to have a minimum Rs 100 face value, a cap of 200 shares on individual shareholding, and a minimum SBI stake of 55%. "Once the amendment is through, we would work on changes in the capital structure of our bank and also start the process of launching the IPO. u

In all likelihood, the IPO would hit the capital market by December 2006," Guha said.

For the current financial year, the bank wants to achieve a bottom line of Rs 950 crore, up from Rs 427 crore earned in 2005-06. Last year, its total business touched Rs 56,738 crore.

Thursday, August 24, 2006

BPL clouds over Hutch's IPO plans

The tussle over BPL Mumbai circle merger may not just delay Hutchison Essar's plans to go public, but possibly impact the valuation when the eagerly awaited IPO happens, feel analysts, reports The Economic Times.

However, a Hutchison Telecommunications International spokesperson Mickey Shui told media from Hong Kong that the contemplated IPO and the acquisition of BPL Mumbai were two independent matters.

"We received DoT's approval earlier this month and 98% of the consideration has already been paid to the vendors. We expect the BPL Mumbai acquisition to be completed as there are no conditions outstanding," Shui added.

But Essar sources had earlier said that DoT's approval was only for the merger of two companies (BPL with Hutch-Essar) and not for acquisition of shares and that too has been issued on August 11, 2006, which is after termination of agreement of BPL Mobile Communications.

When asked if HTIL was hopeful of a public issue this year, the spokesperson said that the company had no specific timetable for the contemplated IPO.

An India-based telecom analyst of global investment banking major said that the current spate of events surrounding the BPL (Mumbai circle) merger could delay the IPO of Hutch-Essar.

The valuations are also expected to take a beating and it was a concern for the shareholders, as well as the merchant bankers, another analyst added.

The valuation of Hutchison-Essar depends on many factors including prevailing market conditions, Shui said.

Wednesday, August 23, 2006

Deep Industries IPO opens Aug 29, issue price at Rs 36

Deep Industries, provider of air and gas compression services to oil and gas exploration companies, proposes to enter the capital market on August 29, 2006 with a fixed price IPO of 1,13,00,000 equity shares of Rs 10 each at a price of Rs 36 aggregating to Rs 40.68 crore (Rs 406.8 million), as per press release.

The issue constituting 56.50% of the post issue paid up capital of the company closes on September 4, 2006.

IDBI Capital Market Services is the lead manager to the issue and NEXGEN Capitals and Keynote Corporate Services are the co-lead managers to the issue. Intime Spectrum Registry is the registrar and transfer agent.

This fixed price public issue of 1,13,00,000 equity shares of face value of Rs 10 each include 11,30,000 equity shares reserved for employees and directors; 28,25,000 equity shares reserved for NRIs and FIIs, and 11,30,000 equity shares reserved for scheduled banks, Indian mutual funds, Indian and multilateral development financial institutions, leaving a net issue to public of 62,15,000 equity shares.

A minimum of 31,07,500 equity shares constituting at least 50% of the net offer to the public will be available for allocation on a proportionate basis as retail portion and an equal quantity also for other than retail portion. The equity shares have proposed to be listed on Bombay Stock Exchange, BSE.

Deep Industries proposes to utilize the funds raised through this public issue to part finance its plans for procurement of plant and machinery for business expansion and office equipments valued at Rs 51.50 crore (Rs 515 million).

The total fund requirement along with working capital need is estimated at Rs 60.28 crore (Rs 602.8 million). The company has already made pre-issue/allotment of 22 lakh equity shares to promoters, promoter group and others at Rs 30 per equity share aggregating to Rs 6.60 crore (Rs 66 million). The company has received sanction of Rs 13 crore- (Rs 130 million) term loan from Union Bank of India.

The company currently owns a set of 10 compressor packages to execute its services, out of which 2 are currently deployed in USA. Further, 3 compressors have been deployed at ONGC site for executing compression contract. It has a leased facility in Gandhinagar, Gujarat; to undertake refurbishment, repairs and retrofitting of the existing/newly acquired equipment of self and client.

It provides comprehensive contract compression services, which includes operations and maintenance services. It proactively repackages or reconfigures some of its existing fleet to adapt to customers' needs. The company currently operates primarily in the market for transportable natural gas compression units of up to 2400 HP. It also provides transportation services for the transport of liquid. However it has gradually moved from a liquid transport service provider to compression service providers, a more value added service.

The company has now been providing compression services to esteemed clients like ONGC since the last nine years. Other clients include GACL, IOC etc. The ultimate aim of the company is to become an integrated service provider to the oil and gas industry. For this purpose it has purchased one 100-ton Cardwell KB500 Work Over Rig for providing Mobile Work Over Rig services.

The company has joined hands with experienced companies like M/s Valerus Compression Services, Limited Partnership, ('Valerus") Houston Texas, USA for gas compressors and production equipments to act as Sales Representatives for Valerus in all over Asian Region. It has also entered into MoU with M/s PT Indrillco Bakti ('PIB"), Jakarta, Indonesia, under which PIB has agreed to provide technical know-how/collaboration in connection with work over services for 30 to 200 ton capacity rigs.

Its income includes income from air/gas compression services and transportation income. The company has gone on a drive to enhance profitability and has began concentrating on high margin contracts which has led to a rise in EBIDTA from Rs 266.16 lakh in fiscal 2005 to Rs 353.81 lakh in fiscal 2006 and rise in PAT from Rs 63.49 lakh to Rs 179 lakh during the same period, while marginally bringing down the total income from Rs 821.59 lakh in fiscal 2005 to Rs 766.32 lakh in fiscal 2006.

The company has recently bid for 1 coal bed methane block in Andhra Pradesh jointly with Coal Gas Mart LLC, USA and Adinath Exim Resources, Ahmedabad and one coal bed methane block in Madhya Pradesh jointly with Coal Gas Mart LLC, USA.

Everonn to raise Rs 50cr via IPO

Everonn Systems India, an education and learning solutions company, has planned an initial public offer, IPO, to raise up to Rs 50 crore (Rs 500 million), reports Business Standard.

It has filed its draft red herring prospectus, DRHP, with the Securities and Exchange Board of India, Sebi, a company release said.

It proposes to use the proceeds from the IPO primarily to meet the capital expenditure to be incurred for institutional education and infrastructure services business and for virtual and tech-enabled learning solutions business.

The fund will also be utilised for mergers and acquisitions, investment in subsidiary and overseas initiatives.

India China Pre IPO Equity (Mauritius), an investment arm of Temasek, Singapore, recently invested USD 3 million (about Rs 14 crore) in Everonn to acquire about 12% stake. Everonn reported a turnover of Rs 31.33 crore (Rs 313.3 million) and a net profit of Rs 4.04 crore (Rs 40.4 million) for the year ended March 31, 2006.

Bhoruka lines up Rs 580cr expansion plan

The Bangalore-based independent power producer, Bhoruka Power Corporation, which specialises in mini hydel and wind power projects, is planning to invest around Rs 580 crore (Rs 5.80 billion) by 2009 on new projects, reports Business Standard.

It plans to set up power projects with a combined capacity of 110 mw in both – hydel and wind energy sector – in Karnataka and Haryana.

Of the proposed Rs 580 crore investment, 70% will be financed by consortium of banks and financial institutions. Of the remaining 30% (Rs 170 crore (Rs 1.70 billion)), the company will contribute Rs 70 crore (Rs 700 million) through internal accruals while the balance Rs 100 crore (Rs 1 billion) will be either raised through a public issue or from private equity funds.

“A decision on the initial public offer, IPO, will be taken in the 6-9 months. Work on some of the projects has already commenced. By 2009 end, the company will cross 200 mw capacity, making us a significant player in the renewable energy sector,” Bhoruka Power Corporation managing director S Chandrashekar said.

The company, so far, has commissioned various projects to generate 90 mw. The proposed investment of Rs 580 crore will be used to set up mini hydel projects (60 mw) and wind farms (50 mw).

“Except for a 6 mw mini hydel project in Haryana, the rest of the projects, including the wind-based ones, will be commissioned in Karnataka. The wind farms will be located in Chitradurga district, considered as one of the best regions for harnessing wind power,” he pointed out.

The company recorded a turnover of Rs 60 crore (Rs 600 million) in the 2005-06. “Its profit after tax, PAT, stood at Rs 22 crore (Rs 220 million) with another Rs 8 crore (Rs 80 million) coming from other income. By 2009, we will be in a position to clock Rs 70 crore PAT after completing all the projects,” Chandrashekar stated.

Bhoruka Power Corporation has successfully bid for 25-mw mini hydel power project in Himachal Pradesh. Partnering global major Alstom, it has bid for a 42-mw hydel renovation project under the LROT (lease, rehabilitate, operate and transfer) scheme at Uttaranchal.

“These two projects entail a combined investment of Rs 270 crore (Rs 2.70 billion). But the two projects are yet to crystallise. Once we commission these two projects, our power production capacity will reach 267 mw,” he said.

The company’s future projects include a 300 mw thermal power plant in Karnataka. “This proposed thermal power plant will use imported coal. But its implementation will depend on reforms in the power sector. We are optimistic about the reforms,” he added.

Ess Dee Aluminium files DRHP with Sebi for IPO

Ess Dee Aluminium, EDAL, a leading pharmaceutical packaging solutions provider, has filed its draft red herring prospectus, DRHP, with Securities and Exchange Board of India, Sebi, to enter the capital market with its proposed initial public offering of equity shares, as per press release.

The company proposes to offer 69,60,000 equity shares of Rs 10 each for cash at a premium to be decided through a 100% book-built process. Of this 1,50,000 equity shares are reserved for allotment to eligible employees, thus the net offer to public stands reduced at 68,10, 000 equity shares.

The offer to public will constitute 25.79% of the post issue fully diluted equity capital.

Of the net offer to public, the company proposes to reserve 50% for allotment to qualified institutional bidders and of this 5% will be allotted to mutual funds. Of the balance, 15% is to be reserved for allotment to non-institutional bidders and the balance 35% is being reserved for allotment to retail investors on a proportionate basis.

Sudip Datta, chairman and managing director of the company, said “the company currently operates two units one in Daman and another in Goa and our wholly owned subsidiary operates four aluminium foil printing units. Further, we propose to set up a new unit - Unit III at Daman for the manufacture of aluminium foil based packaging products to enhance our product portfolio and industry reach.”

He further said, “The IPO is an important milestone in realizing our larger corporate vision. It would help strengthen EDAL’ s position in the Pharmaceutical Packaging business and tap future growth opportunities in aluminium foil based pharmaceutical, FMCH and food packaging business.”

The book running lead managers to the issue are UTI Securities and Enam Financial Consultants.

Promoters' stake: DCB to seek time for compliance

Development Credit Bank, DCB, the private sector bank promoted by the Aga Khan Fund for Economic Development, AKFED, is unlikely to comply with the Reserve Bank of India's stipulation on reducing promoter's holding before the deadline, reports The Hindu Business Line.

While permitting DCB to tap the capital market with its initial public offer, IPO, the RBI had directed AKFED to bring down its stake to 10% or below within a year of listing or by March 31, 2007, from the existing level of 58.43%.

"Following unfavourable market conditions, we could not tap the market with IPO. As a result, the approval we obtained from the Securities and Exchange Board of India, Sebi has expired on August 7 this year. We have filed the draft prospectus again with Sebi and are expecting the approval by the month-end. We may go ahead with IPO sometime during the first half of September," said the DCB managing director and CEO, Gautam Vir.

IPO pricing

Owing to the current market conditions, DCB may have to go in for downward adjustments in pricing the IPO. As the total number of shares to be issued would remain unchanged, the bank would end up raising reduced funds through the IPO in view of downward revision in pricing, Vir said.

Stating that the delay in tapping the market would not enable the bank to comply with the RBI directives on reducing the promoter's holding to 10% or below, Vir said the ensuing IPO would see the promoter's holding coming down to around 30%.

"While AKFED is keen on complying with the laws of the land, it is not interested in disposing off its holding in the bank. The foundation prefers to bring down its holding in DCB through expansion of the equity size, which could be done only over a period of time," he said.

Vir said DCB would initiate a dialogue with the RBI immediately after the IPO process is completed. "We are hopeful and confident that the RBI would provide adequate additional time for AKFED to bring down its holding in the bank to the stipulated levels."

KEW Ind IPO opens on Aug 28

KEW Industries, a manufacturer and supplier of defence stores and automobile components for OEMs, will enter the capital market on August 28, 2006 with a fixed price public issue of 70,00,000 equity shares of Rs 10 each at a price of Rs 30 aggregating to Rs 21 crore (Rs 210 million).

The issue closes on September 01, 2006.

The company intends to utilize the proceeds of the issue for modernization and expansion of manufacturing facility and expansion of research and development facilities. It is targeting to increase its presence across its core business areas of manufacturing automotive components. The growth witnessed by automotive sector has also created significant opportunities for auto component manufacturers, which encourages expansion and investment.

KEW Industries, enjoying the reputation of a known manufacturer of automotive components and shell bodies for Ministry of Defence, has well established its brand for product range in the domestic and export markets. It manufactures SG Iron and Cast Iron products for domestic and export markets.

Its major client portfolio includes Ashok Leyland, Tata Motors, Punjab Tractors, Indian Ordinance Factories under Ministry of Defence, and Rail Coach Factory at Kapurthala.

With the change in domestic and international market scenario, KEW has started diversifying its concentration towards automobile sector. The company is exporting auto components to CBM HPA in Italy and Defontaine in France.

The company's business strength can be judged from the fact that its total income has jumped from Rs 30.13 crore (Rs 301.3 million) in FY 2002 to Rs 39.64 crore (Rs 396.4 million) in FY 2006 and profit after tax during the same period has shot up from Rs 1.85 crore (Rs 18.5 million) to Rs 2.99 crore (Rs 29.9 million).

Chartered Capital and Investments and Keynote Corporate Services are the lead managers to the issue and Karvy Computershare is the registrar.

Saturday, August 19, 2006

TV18’s GBN to raise Rs 105cr, files DRHP with Sebi

India's Global Broadcast News, GBN, a unit of Television Eighteen, which runs the CNN-IBN television channel, said on Friday it aims to raise upto Rs 105 crore (Rs 1.05 billion) in an initial public offering, IPO, reports Reuters.

GBN has filed draft red herring prospectus, DRHP with Sebi.

CNN-IBN is a tie-up between Television Eighteen and Time Warner's Turner International.

"The IPO would strengthen GBN's position in the television news business and tap future growth opportunities," joint managing director of GBN Sameer Manchanda said in a statement.

The joint venture between the two companies was formed in October 2005 and the general news channel has been gaining popularity among English-speaking viewers in Indian cities since its launch.

Television Eighteen, TV18, also runs the business channel, CNBC-TV18.

ICICI Securities, Kotak Mahindra Capital, JM Morgan Stanley and IL&FS Investsmart are the issue managers.

Friday, August 18, 2006

Tech Mahindra likely to list on Aug 29

Tech Mahindra, an IT solutions joint venture between Mahindra & Mahindra and British Telecom, is likely to list on the bourses on August 29, reports The Economic Times.

Tech Mahindra, which had fixed its initial public offer price at Rs 365 per share earlier this month after a public issue that was oversubscribed by more than 71 times, might list its shares on the Bombay Stock Exchange and National Stock Exchange, on August 29, sources familiar with the issue said.

The company is estimated to have raised over Rs 450 crore (Rs 4.50 billion) from the issue of 1.27 crore equity shares.

The issue was priced at the upper end of the price band of Rs 315-365 per share after the offering received impressive response from the market, particularly from the institutional investors.

Market observers said that the Tech Mahindra listing at the bourses is eagerly awaited as a listing with a premium, which has the potential to reignite the interest of companies in IPOs.

It could lead to various companies re-assessing their plans to go public, as well as initiate some fresh listing plans, they added. The Tech Mahindra issue had closed for subscription on August 4.

It consisted of fresh issue of 3,186,480 equity shares and an offer for sale of 9,559,520 equity shares by M&M and UK-based telecom giant British Telecommunications Plc.

GMR Infra to list on August 21

GMR Infrastructure (a business house with major interests in energy and transportation) will list on August 21, 2006.

The company set its offer price at Rs 210 per share, lower end of price band. The issue oversubscribed by 6.68 times.

The initial public offering, IPO was of 38,136,980 equity shares of Rs 10 each through 100% book building process.

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

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

The equity shares of the company will list on the Bombay Stock Exchange and the National Stock Exchange.

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

Voltamp to offer 4.88mn shares in IPO at Rs 295-345

Voltamp Transformers, manufacturers of power transformers, distribution transformers and dry transformers, proposes to enter capital market with initial public offering, IPO, of 48,83,840 equity shares of Rs 10 each.

The company set its IPO price band at Rs 295-345 per share.

Issue snapshot

* Net public offer of 46,39,648 equity shares of Rs 10 each
* Employee reservation of 2,44,192 shares
* Primary object of offer to achieve benefits of listing of equity shares
* Company will not receive proceeds from sale of equity shares by selling shareholders

Promoter holding

* Promoter holding post-issue - 43.67%
* Promoter group holding post-issue - 51.73%

About company

* Manufacturers of power transformers, distribution transformers and dry transformers
* Cater to petrochemical, oil refining, cement, pharmaceuticals, automobiles, steel, power plant, building, metro rail applications
* Focused on manufacturing transformers catering to engineering and industrial segments
* Have a capacity of 5400 MVA
* Clientele: Reliance Industries, Jindal Steel and contracting firms like Siemens, ABB, Larsen & Toubro, Torrent Power and Suzlon
* Have established nationwide network of 9 branches covering major industrial towns and metropolitan cities to effectively cater to the needs of existing customers and to reach and service potential customers.
* Although, volumes in these segments are lower when compared to State Electricity Boards, SEBs
* Exposure to receivables risk due to the financial ill health of SEBs is low

Concerns

* Attrition rate is rising in the last 3 years: attrition rates were 8.33%, 9.67% and 15.32%
* Few raw materials such as CRGO, copper, oil, insulation, resin, steel constitute over 70% of the sales revenue

DLF IPO may take time

DLF's initial public offering, IPO, is unlikely to hit the market soon, according to industry sources, reports The Hindu Business Line.

"The problem of rights issue of debenture for minority shareholders is yet to be resolved and hence, the IPO will not come soon," a market source said.

Earlier, the company's shareholders had complained that they had not received the letter of offer for DLF's rights issue of debenture that opened for subscription on December 29, 2005 and closed on January 18, 2006.

DLF clarified that the letter was circulated to all shareholders and as many shareholders did not subscribe to it, the company went ahead with the IPO.

"It is difficult to say when the IPO will come out," said a source closely associated with the issue.

However, sources said that the minority shareholders should give approval.

DLF has proposed an IPO of around Rs 13,000 crore; the amount is to be utilised in facilitating expansion plans of the company. DLF will offer 20.2 crore equity shares of Rs 2 each to the public.

Usher Agro to enter capital market

Usher Agro, an agri-processing 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, as per press release.

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.

Usher Agro proposes to enter the capital market with a public issue of 1,20,12,000 equity shares of Rs 10 each at a premium of Rs 5 per share for cash aggregating to Rs 18.01 crore (Rs 180.1 million). 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 4.80 crore (Rs 48 million) 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.

Tata Motors to float IPOs for 2 arms

India’s largest commercial vehicle maker, is learnt to be working on an initial public offering, IPO for two of its group companies - HV Axles and HV Transmissions - as part of a larger corporate restructuring programme and to also tap alternate options of raising resources to part-finance expansion plans, reports The Economic Times.

According to sources, senior company officials have already begun the process by meeting with investment bankers. The IPOs for the two wholly owned subsidiaries of Tata Motors are likely to be scheduled by the end of the current fiscal year.

It has been learnt that Tata Motors is also considering strategic partners for both the companies and may look at selling part of its stake in HV Axles and HV Transmissions, before the proposed IPO.

The sources indicated that Tata Motors was in talks with major global companies such as Automotive Axles and Arvin Meritor for a strategic alliance.

Tata Motors MD Ravi Kant had said that his company was examining all options “that could enhance the contribution from our subsidiaries.” He declined to elaborate. When contacted, a spokesperson said: “Tata Motors is open to considering options of strategic partners or IPOs for these two subsidiaries to unlock value in these companies. But, the company has not set any time-frame.”

The stake sale is expected to help the company in price discovery and also extend the two companies’ clientele. Both HV Axles and HV Transmissions were spun off Tata Motors’ commercial business unit in ’00. The two companies supply components only to their parent company Tata Motors.

According to analysts, based on FY08 earnings and a price-earning multiple of 12, the total value of Tata Motors’ stake in HV Axles and HV Transmissions could be in the region of Rs 773 crore (Rs 7.73 billion) and Rs 453 crore (Rs 4.53 billion) respectively.

In a recent report, Motilal Oswal Securities said Tata Motors would benefit from the significant value creation in its subsidiaries. “We value its subsidiaries at Rs 181 per share (applied 20% discount to actual valuation). We value the core business at 15.5 times forward earnings,” the brokerage had said after Tata Motors posted its fiscal first quarter results. The sources said that Tata Motors is likely to use the stake sale and IPO funds for its capex plans.

The company is planning an expenditure of Rs 10,000 crore (Rs 100 billion) in the next 2-3 years of which Rs 2,000 crore (Rs 20 billion) will go toward its expansion, while the remaining Rs 8,000 crore (Rs 80 billion) would be allotted for daily operations and development of new products.

The move is likely to be welcomed by the market. “There is an increasing trend among major corporates to explore ways of raising funds to meet their capex plans, especially as interest rates are going up,” said SP Jain, chairman of Mumbai-based brokerage Networth Stockbroking. “Any kind of value unlocking where the market participates, the parent company will automatically benefit.”

The market has already been reacting to possible IPO news from Tata Motors. Shares of Tata Motors have been rising steadily in the past one-month, surging 22% to end at Rs 837 a share on the Bombay Stock Exchange on Thursday.

Both the companies have posted improved earnings. HV Axles reported a 57% growth in its revenue in the first quarter of the current fiscal at Rs 42.4 crore (Rs 424 million), while net profit surged 84% to Rs 14.3 crore (Rs 143 million). HV Transmission ended the first quarter with a 43% growth in revenue at Rs 37.4 crore (Rs 374 million), and a 78% increase in its profit at Rs 9.7 crore (Rs 97 million).

HV Axles and HV Transmissions were formed in March ’00 and they acquired Tata Motors’ heavy axle division and gear box division at Jamshedpur, respectively. HVAL has an equity capital of Rs 45 crore (Rs 450 million) while HVTL was started with an equity capital of Rs 40 crore (Rs 400 million).

Orbit Corporation files DRHP with Sebi

Orbit Corporation, a real estate construction and development company with a primary focus on redevelopment of existing properties, has filed its draft red herring prospectus, DRHP with the Securities & Exchanges Board of India, Sebi as a first step towards entering the capital markets with its initial public offering, as per press release.

The company proposes to offer 91 lakh equity shares of Rs 10 each for cash at a premium to be decided through a 100% book-building process, along with one detachable warrant per equity share, which may be converted into the equity share of the company at a later date, in accordance with the DRHP.

The issue of equity shares will constitute 25.09% of the fully diluted post-issue equity capital prior to the conversion of the detachable warrants, and 40.11%, assuming full conversion of the detachable warrants.

In accordance with the Sebi guidelines, at least of 50% of the offer is reserved for allotment to qualified institutional buyers, upto 15% is available for allotment to non-institutional investors on a proportionate basis and the balance, upto 35% will be available for allotment to retail investors.

The company is currently executing 12 redevelopment projects in the Island City of Mumbai, which is in line with its conscious strategy to focus on redevelopment of dilapidated buildings in the Island City of Mumbai. Redevelopment of dilapidated buildings has evolved in Mumbai due to a variety of reasons over the last few years.

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

Thursday, August 10, 2006

Mahesh Tutorials on fresh grounds, plans IPO

Mahesh Tutorials is poised to become the first such entity to go in for a private equity placement followed by a public issue. The Mumbai-based partnership entity offers coaching classes for school and college students, reports Business Standard.

Chairman and managing director Mahesh Shetty said work on converting the institution into a corporate entity would be completed by October.

At present, the major players in this sector are Chate Classes, Agarwal Classes, Tandem Classes and G K Shah Classes, but the industry is highly unorganised and fragmented.

The promoters of Mahesh Tutorials are Shetty and its current CEO B Narayana Iyer.

“We are targeting a three-fold increase in our turnover to Rs 100 crore (Rs 1 billion) by 2008 from Rs 32 crore (Rs 320 million) now,” Iyer said. The number of branches will increase from 38 now to over 100. The investment in one centre will be around Rs 25 lakh to Rs 35 lakh.

According to analysts, the market size of tutorial sector in Mumbai alone is Rs 200 crore (Rs 2 billion). Over 1 lakh students depend upon tutorial classes in English medium and 2 lakh in Hindi and Marathi mediums.

Cellebrum all set to raise Rs 1000cr from market

Cellebrum.com, a B K Modi-promoted company in the business of providing value-added services to most of the mobile telecom service operators in India, has decided to raise Rs 1,000 crore (Rs 10 billion) from the capital market by the next year, reports Business Standard.

The market funding will help the company to put up operations in Bangalore, Kolkata, and Mumbai; and expand the existing locations at Parwanoo and Noida.

The IPO will be preceded by a venture capital funding of Rs 150 crore (Rs 1.50 billion) (approximately) with a strategic technological partnership or an angel investor to offload 10% of the total equity by next month. The KPMG projected the valuation of the company at Rs 1,000 crore in the recent past.

The company is in the process of developing software for the community services, particularly in the area of interaction. This would be rolled out in about two months.

With the launch of this software, the telephone chat like that of a web chat would become feasible. This would be developed in association with the UK based ICE 365. The cutting-edge technology would help the company to access the European market as well.

CEO of Cellebrum.com Saket Agarwal said that the investment in research and development was the crucial investment component in this business.

The company was investing about 30% of its revenue in R&D. The future strategy of the company would be to expand capacities in R&D. The thrust would be on the developing new value added services like TV on mobile.

The growth pattern of the market for the VAS can be substantiated from the fact that Cellebrum.com grew from Rs 25 crore (Rs 250 million) to Rs 100 crore (Rs 1 billion) of annual turnover in the past two years.

Besides outsourcing to the domestic players Cellebrum has done overseas assignments in Mauritius, Indonesia and Bangladesh. The similar projects for Malaysia and Sri Lanka are in the pipeline.

With a trained manpower of 250 persons, Cellebrum happens to be the largest vertically and horizontally integrated (as it provides voice, roaming and GPRS) VAS provider. The company provided roaming to all players except for Hutchison and Airtel in India.

Cellebrum has set up a 3G technology equipped office in Singapore. This would be a dress rehearsal to prepare us for catering the 3G market when it is launched in India. Tele Malaysia is keen to partner with Cellebrum for this project.

Tuesday, August 08, 2006

ICRA files DRHP with Sebi

ICRA, one of India’s leading credit agencies, has filed its draft red herring prospectus, DRHP with the Securities and Exchange Board of India, Sebi for an offer for sale of 25.81 lakh equity shares of Rs 10 each for cash at a price to be decided through the book building process.

The offer for sale is by IFCI, State Bank of India and Administrator of the Specified Undertaking of Unit Trust Of India, as per press release.

The offer constitutes 25.81% of the fully diluted post-offer capital of ICRA.

50% of the offer is reserved for qualified institutional buyers, QIBs and 15% of the offer is reserved for non-institutional investors. 35% of the offer is reserved for retail investors.

ICRA is primarily engaged in the business of providing rating services. In addition, ICRA, along with its subsidiaries, provides consulting services, information technology based services, information services, and outsourcing services.

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

SBI Capital Markets and Kotak Mahindra Capital Company have been appointed as the book running lead managers for the offer for sale.

Spice Tele to float $250mn IPO

GSM service provider Spice Communications plans to raise USD 250 million (nearly Rs 1,175 crore (Rs 11.75 billion)) from the primary market, with its initial public offering, IPO slated for the first quarter of the next year, reports Business Standard.

The company intends to use the proceeds for its expansion plans, which include commencing operations in six more states in the country.

"The company is in talks with four merchant bankers, of which one would be finalised by Monday. On the appointment of bankers and depending on the market conditions and subject to approvals, the date of the IPO would be announced," a top official of Spice Communications revealed.

The IPO would happen by the first quarter of 2007, with the listing on both BSE and NSE, he said.

The company would use the proceeds of the IPO for its expansion plans, including commencing of operations in new circles, as the company was gearing up for a pan-India presence.

It had applied for licences in six more states, like Rajasthan and Uttar Pradesh, and was expecting to launch the services by the end of this year.

Malaysia's largest telecom company Telekom Malaysia holds 49 stake in the company through its subsidiary, TM International, while the balance 51% is owned by SpiceCorp (India) and associates.

SpiceCorp is the flagship company of MCorp Global, a company into telecommunications, office automation and information technology. Earlier, TM had picked up 49% stake for USD 178.8 million.

Spice Communications offers its GSM services under the brand name, Spice Telecom, and has operations in Punjab and Karnataka, servicing over 1.7 million subscribers.

The company, which operates out of only two circles of the total 23 circles, is planning to launch mobile services in six telecom circles in India and to apply for both national and international long-distance licences.

Monday, August 07, 2006

Sobha Developers files DRHP with Sebi

Sobha Developers, a Bangalore-based and one of the leading real estate developer and construction company in India with a focus on residential and contractual projects, filed its draft red herring prospectus, DRHP with the Securities & Exchange Board of India, Sebi, as per press release.

Sobha Developers has proposed to offer 9,476,800 equity shares of Rs 10 each, for cash at a premium to be decided through the book-built process. The issue would constitute 13% of the fully diluted post issue paid-up capital of the company.

P N C Menon, chairman of Sobha Developers, after filing the DRHP said “this is a historic moment for us at Sobha Developers and we look forward to this IPO as an event that will help us welcome new members into our family.”

The company has reserved upto 947,680 equity shares to be offered to its eligible employees. Thus the net offer to public would stand at 8,529,120 equity shares.

Sobha Developers is entering the capital market to raise funds to fund the land acquisition, its on-going and forthcoming projects and repay certain debts.

The book running lead managers to the issue are Kotak Mahindra Capital Company and Enam Financial Consultants. IL&FS Investsmart is the co-book running lead manager.

Tech Mahindra fixes IPO price at Rs 365

Investors provided an encouraging response to IPO of Tech Mahindra, a leading Indian provider of IT solutions to telecom companies. The company's IPO oversubscribed 72.05 times.

The company has fixed its IPO price at Rs 365 per share, higher end of price band.

Tech Mahindra, ranked eighth largest in terms of export revenues as per Nasscom 2005, entered the IPO market with a public issue of 12,746,000 equity shares of Rs 10 each in the price band of Rs 315- 365 per equity share.

The issue constitutes 11% of the post issue paid up capital of the company and the net issue constitutes 10% of the post issue capital

The company proposes to use the proceeds from the fresh issue for creating facilities for expansion. The company has been granted land measuring 98,923 square metres located at Rajiv Gandhi Infotech Park in Hinjewadi, Pune for this purpose.

The company has registered a 31% revenue growth as compared to its revenues the year before. The revenue for the year ended March 31, 2006 grew to Rs 1242.7 crore (Rs 12.42 billion), from Rs 945.6 crore (Rs 9.45 billion) for the year ended March 31, 2005. Profit after tax also grew by 130%, from Rs 102.4 crore (Rs 1.02 billion) for the year ended March 31, 2005 to Rs 235.4 crore (Rs 2.35 billion) for the year ended March 31, 2006. For the June quarter, the revenues were Rs 591.1 crore (Rs 5.91 billion) and PAT was Rs 106.6 crore (Rs 1.06 billion).

The book running lead managers to the issue were Kotak Mahindra Capital Company Limited and ABN AMRO Securities (India) Private Limited. The registrar to the issue was Intime Spectrum Registry.