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Thursday, October 25, 2007

Barak Valley Cem IPO opens on Oct 29, price band Rs 37-42

Barak Valley Cements, a cement manufacturer in the north-east region, will enter the capital market with an initial public offer (IPO) of 56,60,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book building process.

The issue comprises a reservation of 1,13,000 equity shares for permanent employees on a competitive basis and the net issue to the Public of 55, 47,000 equity shares. The net issue would constitute 25.03% of the post-issue paid up capital of the company.

The issue will open for subscription on October 29, 2007, and will close on November 1, 2007. The company has fixed the price band between Rs 37 and Rs 42 per equity share.

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

Of the total equity offer, up to 50% of the issue will be allocated on a proportionate basis to qualified institutional buyers (QIBs), out of which 5% shall be available for allocation on a proportionate basis to mutual funds only. Further, not less than 15% of the Net Issue will be available for allocation on a proportionate basis to non-institutional bidders and not less than 35% of the net issue will 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 objects of the issue are to part finance expansion of clinkerisation capacity from present 420 TPD (tonnes per day) to 600 TPD, cement grinding capacity from 460 TPD to 750 TPD, investment in wholly owned subsidiary — Badarpur Energy (P) Ltd.; for setting up a 6 MW biomass based power project, to meet the working capital requirements and for general corporate purpose.

Consolidated income for fiscal 2006 and fiscal 2007 were Rs 536.7 million and Rs 745 million respectively. The profit after tax for fiscal 2006 and 2007 were Rs 116.0 million and Rs 142.7 million respectively. For the quarter ended June 2007, the income and profit after tax were Rs 209.9 million and Rs 36.2 million respectively.

The book running lead manager to the Issue is UTI Securities Limited and the co- book running lead manager is Karvy Investor Services Limited.

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