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Thursday, September 06, 2007

Magnum Ventures fixes IPO offer price at Rs 30/sh

Magnum Ventures, an ISO 9001:2000 certified company with interests in the paper and hospitality business, has fixed the offer price at Rs 30 per equity share at higher end of band of Rs 27-30 for its initial public offer (IPO) of upto 1,76,40,750 equity shares of Rs 10 each for cash at a price decided through a 100% book building process.

The issue closed on August 30, 2007 and it was subscribed 2.95 times. The IPO received bids for 5.19 crore shares, which includes bids for 1.74 crore share at the cut off price. The qualified institutional bidders (QIBs) portion was subscribed around 2.34 times; the non-institutional investors portion was subscribed around 3.9 times while the retail investors portion was subscribed around 3.39 times (Source: National Stock Exchange).

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

Magnum Ventures is engaged in the business of trading and manufacturing of paper for more than 25 years. The existing manufacturing activities cover writing and printing paper; and duplex boards with an installed capacity of 85,000 MT per annum, based on 3 shifts and 330 working days in a year. Now, it is planning to modernise its production facilities of its Paper Unit II and III by technological upgradation including replacement of plant and machinery with regard to manufacturing of duplex board, writing and printing paper, and allied sections such as chemicals and fibre recovery section, recycling of backward system, etc., at a project cost of Rs. 50 crore.

The company also plans to venture into the hospitality sector and is setting up a 4-Star business hotel with 212 rooms, conference halls, food & beverages and other facilities, in Sahibabad District, ( Ghaziabad) (close to Delhi), at a cost of Rs 102.63 crore. It has entered into a Management Agreement and Territory Licence agreement with the Country Development & Management Services Private Limited (CDMS), which has the right to offer franchise of the hotel brand, "Country Inn & Suites By CarlsonĀ®".

Magnum Ventures had appointed SREI Capital Markets as the book running lead manager to the issue.

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