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Monday, October 29, 2007

Mundra Port IPO opens on Nov 1, price band at Rs 400-440

Mundra Port and Special Economic Zone, developer and operator of the Mundra Port, one of the leading non-captive private sector ports in India based on volume of cargo during fiscal 2007 is entering the capital markets with its initial public offering (IPO) of 40,250,000 equity shares of Rs 10 each for cash, at a price to be decided through a 100% book building process.

The issue comprises of a net issue of 40,100,000 equity shares to the public and a reservation of 150,000 equity shares for eligible employees. The issue and the net issue will constitute 10.05% and 10.01%, respectively, of the fully diluted post issue paid-up capital of the company.

The price band has been fixed between Rs 400 to Rs 440 per equity share. The issue will open on November 1, 2007 and will close on November 7, 2007.

The equity shares of the company, offered through this IPO, are proposed to be listed on the NSE and BSE.

At least 60% of the issue will be allocated to qualified institutional bidders (QIBs) on a proportionate basis, of which 5% will be available to mutual funds only. Further, at least 10% of the net issue will be available to non-institutional investors and at least 30% of the net issue will be available for allocation on a proportionate basis to retail individual investors.

The company is part of the Adani Group, which has interests in different industries including commodities trading, coal mining, power trading, power generation, real estate development, agro processing and logistics, shipping and port operations. The company has the exclusive right to develop and operate Mundra Port and related facilities until February 2031 pursuant to the concession agreement entered on February 17, 2001 with the Gujarat Maritime Board and the Government of Gujarat.

The objects of the issue are to part financing of construction and development of basic infrastructure and the allied facilities in the proposed SEZ at Mundra; construction and development of a terminal for coal and other cargo at Mundra Port; contribution towards investment in Adani Petronet (Dahej) Port Private Limited; contribution towards investment in Adani Logistics Limited; contribution towards investment in Inland Conware Private Limited and general corporate purposes.

The global co-ordinators and book running lead managers to the issue are: DSP Merrill Lynch Limited, JM Financial Consultants Private Limited and SSKI Corporate Finance Limited. The book running lead mangers to the issue are Enam Securities Private Limited, Kotak Mahindra Capital Company Limited, ICICI Securities Limited and SBI Capital Markets Limited.

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