Indian IPO

All details about Hot Indian Primary Market.

Friday, June 29, 2007

Jyothy Labs files papers for IPO

Jyothy Labaratories, the makers of Ujala fabric whitener and Maxo mosquito repellent coils, has filed its draft red herring prospectus (DRHP) with the Securities & Exchange Board of India (Sebi) for an initial public offering (IPO).

The company is planning to sell 44,30,260 equity shares of Rs 5 each that is being divested by investors including Canzone, South Asia Regional Fund, CDC Investment Holdings ICICI Bank Canada and ICICI Bank UK PLC.

The offer will constitute 30.52% of the post-issue capital of the company.

Kotak Mahindra Capital Company and Enam Financial Consultants are the lead managers to the offer.

Monday, June 25, 2007

Allied Digital sets IPO price band at Rs 170-190/sh

Allied Digital Services, an IT Infrastructure Management Services provider in India, is entering the capital market with an initial public offer (IPO) of 45,22,435 equity shares of Rs 10 each for cash at a price to be decided through the 100% book-building process for listing on both Bombay Stock Exchange and National Stock Exchange.

The issue has a reservation of 2,00,000 equity shares available to the employees of the company. The price band for the offer has been fixed at Rs 170 and Rs 190 per equity share and the issue is scheduled to remain open between July 02, 2007, and July 05, 2007.

On the occasion of fixing of the price band, Mr. Nitin Shah, Chairman and Managing Director, said, “The objects of the issue includes setting up a Global Service Delivery Centre in Mumbai, strategic acquisitions, upgradation and expansion of existing infrastructure, setting up new Strategic Business Units and financing working capital requirements.”

He added “Allied plans to take new initiatives in the Managed Services segment which is one of the key growth segments through establishing Network Operating Centre (NOC) and Security Operating Centre (SOC), to leverage our current strengths and address international markets while expanding revenue base in India.”

Allied Digital operates in diversified segments both in Solutions viz. IT solutions, Networking and Communication solutions, Integrated solutions and Software solutions and in Services viz. IT Infrastructure Management Services, T-BPO and Remote Management Services to its customers pan India. Recently, the company had a strategic tie-up with Echelon Corporation to foray into Intelligent Building Management and Energy Management Solutions.

It has its unique direct presence at 92 locations in 25 states catering to more than 450 cities countrywide through its human resource of more than 1050 personnel. Its offerings address various business verticals – BFSI, Telecom, Retail, Aviation, Manufacturing, Energy, e-Governance and Hospitality to name a few.

The company has grown at a CAGR of 58% over the last three years. The operating income of the company for the year ended March 31, 2007, was Rs 156.03 crore and the net profit after tax was Rs 22.93 crore. The order book stands at Rs 107.81 crore as on June 12, 2007 of which Rs 54.70 crore belongs to services segment and Rs 53.11 crore to solutions segment.

The sole book running lead manager to the issue is Anand Rathi Securities, Advisors to the issue is Religare Securities and Syndicate Members to the issue is ENAM Securities Pvt. Ltd. and Anand Rathi Securities and Intime Spectrum Registry is the registrar to the issue.

Friday, June 15, 2007

BEML's follow-on issue opens on June 27

Bharat Earth Movers’ (BEML) follow-on public issue of 49 lakh equity shares of Rs 10 each will open on June 27 and close on July 3. The price band is yet to be announced.

ICICI Securities is the book running lead manager to the issue.

The issue would constitute 11.77 percent of the fully diluted post issue paid-up capital.

BEML is the second largest manufacturer of earthmoving equipments in Asia, and commands 70% market share in domestic industry.

The ministry of defence is BEML’s largest customer. The company’s other customers are Indian Railways, Delhi Metro Rail Corporation and other metro rail transit agencies, reports The Economic Times.

Monday, June 11, 2007

Godrej Properties to raise Rs 400-600-cr via IPO

Godrej Properties, which is presently developing 2-crore sq.ft of real estate space across the country, will go for an IPO to offload ten per cent of its equity, expected to fetch Rs 400-600-crore for fuelling its expansion plans.

"We will be offloading 10% in the second-half of this fiscal. Currently, Godrej Industries owns 82% stake while the family, 18% in the company," Godrej Group Chairman, Adi Godrej, told media on Sunday.

With the offloading, Godrej Industries' holding will come down to 75% and the family's to around 15%, Godrej said, adding that merchant bankers would be appointed shortly. "We are in discussions with 3-4 of them and a decision will be taken very soon," he said, without revealing their identities.

While Godrej declined to reveal the issue size, saying "it is too early to talk about this", industry sources feel the issue could be anywhere between Rs 400 and Rs 600-crore. While not totally ruling out any pre-equity placements, Godrej, however, said that it was not on the radar presently.

Elaborating on the company's expansion plans, Godrej said property development would be a thrust area for the group and in five years Godrej Properties could emerge as the largest player within the group.

As a part of its expansion plans, Godrej Properties is eyeing new markets such as Chennai, Kochi, the National Capital Region (NCR) and Goa. The company is presently active in Mumbai, Pune, Kolkata, Bangalore and Hyderabad. Godrej said that one-third of the real estate development was residential while the rest was commercial which included offices, IT parks and malls.

The company is presently engaged in the development of the tallest residential towers in the country comprising of of 50-storeys. Five such towers are being built in the posh Mahalakshmi area of Mumbai, he said, adding "of course, taller towers are now being planned in places like Hyderabad."

On the proposed repealing of the Urban Land Ceiling Act by the Maharashtra Government in the near future, Godrej expected it to greatly benefit property development in the already-congested metropolis as vast areas of land would get released for development.

He said that both the Centre and practically all states barring Maharashtra, Andhra Pradesh and West Bengal had repealed the Act. Calling for the immediate scrapping of both the Urban Land Ceiling Act and octroi, Godrej said that their continuation severely handicapped the economic progress of the state. "It is high time Maharashra abolished them," he said, reports The Economic Times.

Kesari Tours mulls Rs 100cr IPO

Leading tour operator Kesari Tours and Travels is mulling a Rs 100-crore IPO before the end of the next fiscal to part-finance its expansion plans.

"We are contemplating raising resources either by way of an IPO or private placement in FY09," Veena Patil, Chairman and Managing Director of Kesari Tours, told media on Sunday.

The company, which has been growing at nearly 40%, is also receiving several proposals for joint ventures.

"We are also receiving several proposals for joint ventures from leading foreign tour operators, who want to have a presence in India," she said, adding "two foreign funds have evinced interest in invest USD 25-million in our company."

Kesari Tours, celebrating its 23rd anniversary, clocked a turnover of Rs 235-crore in FY07 and is eyeing a turnover of Rs 345 crore in FY08. "We hope to clock a Rs 500-crore turnover in FY09" she said.

The company's growth strategy includes strengthening its network to serve tourists across the country. The company has offices in Maharashtra, Bangalore and Ahmedabad. It also scents a big opportunity in in-bound traffic to the country. "Nearly 1.5 million foreign travellers come to India every year and we see immense potential here," Patil said.

Asked about the impact of the rising Rupee on the country's tourism industry, she said that "it has provided a great opportunity for tourism as both inbound and outbound travel has become cheaper."

As a part of several innovative concepts to promote tourism, Kesari will be launching My Fair Lady Club (MFLC) on June 23. The club promises a range of activities for women members including all women travel tours, get-togethers, personality development seminars, etc.

"In the US, the number of women-only tour operators increased 230% over the last six years with 70% of all travel decisions being taken by women regardless of who they travel with, who pays for the trip or where they go. The same trend is emerging in India too," Patil remarked, reports The Economic Times.

Saturday, June 09, 2007

Consolidated Construction files for IPO with SEBI

Consolidated Construction Consortium has filed draft red herring prospectus with Securities and Exchange Board of India.

The company plans a public offering of 3,700,000 equity shares of Rs 10 each at a price to be decided through 100% book building process.

Around 2.22 million shares will be reserved for qualified institutional buyers, 370,000 shares for non-institutional investors and 1.11 million shares will be reserved for retail investors. The issue would constitute 10.01% of the fully diluted post issue paid-up capital.

The company intends to use the proceeds to finance the acquisition of construction infrastructure, investment in subsidiaries, expenditures towards its skill and management development centre, and repayment of loans. According to the prospectus, the company is working on 130 projects across various states in India as of April 30, and has received orders for additional six projects. As of April 30, the total order book was Rs 1, 812.53 crore.

ENAM Financial Consultants, Kotak Mahindra Capital and Spark Capital Advisors are the book running lead managers to the issue, reports The Economic Times.

Roman Tarmat IPO opens on June 12; price band Rs 150-175

In order to meet its capital requirement for expansion of activities, Roman Tarmat, a medium sized Mumbai-based infrastructure company, is entering the capital market on June 12 with an initial public offer (IPO) of 2,900,000 equity shares of Rs 10 each for cash at a price to be decided through the book building process.

Addressing a press conference here, Mr Jerry Varghese, Managing Director of the company, informed that the price band for the issue has been fixed between Rs 150 and Rs 175 per equity share.

The issue will open on June 12 and close for subscription on June 19. The equity shares of the company would be listed on the Bombay Stock Exchange and National Stock Exchange.

The issue proceeds will be used for investment in capital equipment, funding long term working capital requirements and general corporate purposes.

The company, which was established in 1986, has earned name and fame among the infrastructure companies in a short span. The company has completed construction works for leading corporates such as Mahindra and Ashok Leyland, Mr Verghese said.

Roman Tarmat's activities are mainly in the Airport and side works, Highways and Civil works, he said.

Mr R C Sinha, Managing Director of Maharashtra Airport Development Company, who is also the non-executive Chairman of the Roman Tarmat, said the future prospects of the company are bright since the infrastructure sector expected to lead the country's growth in the coming years.

Thursday, June 07, 2007

VHB Life Sciences plans IPO

The six-decade-old pharmaceutical company VHB Life Sciences will come out with an initial public offer (IPO) in July this year to fund its Rs 400-crore expansion plans in the near future, which include roping in three joint ventures, brand acquisitions, setting up of a research and development centre and upgradation of manufacturing facilities.

VHB is setting up a 50:50 joint venture in India with a mid-sized German pharmaceutical company Genesis Laboratories with an investment of Rs 50 crore to manufacture and export formulations from India.

Named ‘VHB-Genext,’ the JV will manufacture products of both VHB and Genesis at its Rs 120- crore manufacturing facility coming up at Rudrapur in Uttranchal. The partners will sign the joint venture agreement within two weeks.

Further, VHB is in advanced stages of discussions with prominent local companies in Bangladesh and Latin America for two similar joint ventures, Anju S Gupta, managing director told.

The erstwhile VH Bhagat and Company, VHB Life Sciences was started in 1946 by its chairman V H Bhagat as an importer of medicines from multinational pharmaceutical companies.

Currently, with an annual turnover of Rs 290 crore, VHB employs about 2500 people with 10 manufacturing locations in different parts of India. It exports products to 45 less and semi-regulated countries and 15 of its top brands enjoy leadership position as per ORG-IMS in the domestic market in the therapeutic areas of oncology, gynaecology, diabetes, cardiovascular and paediatrics.

Sources said plans are to mobilise Rs 400 crore from the IPO. The promoter family will retain about 70% of the shares and may offer equity worth Rs 100 crore to institutional investors. Kotak Mahindra has been roped in as the lead manager for the IPO.

Sources said about Rs 200 crore would be invested in upgrading some of the existing manufacturing facilities having WHO-Good Manufacturing Practice (GMP) standards, US Food and Drug Administration (USFDA) and UK Medicines and Healthcare Regulatory Agency (MHRA) standards to tap the export opportunities in the regulated markets of US and Europe. The Rudrapur plant, which will employ about 500 people, will take off within two months.

VHB is also planning to set up a drug research and development centre worth Rs 30 crore. It will employ about 50 scientists to undertake new chemical entity (NCE) and novel drug delivery systems (NDDS) research.

Further, VHB is in advanced negotiations to acquire a popular paediatric drug brand which has over Rs 13 crore sales in the domestic market.

Anju Gupta said the company was likely to post a turnover of about Rs 340 crore in 2007 and hopes to achieve a turnover of Rs 1000 crore by 2010, mainly through brand acquisitions and tapping the European and US markets, reports Business Standard.

Vishal Retail IPO opens on June 11; price band Rs 230-270

Vishal Retail is entering capital market with an initial public offering, IPO to raise Rs 110 crore in the price band of Rs 230-270 per share.

The issue opens on June 11, 2007.