Indian IPO

All details about Hot Indian Primary Market.

Tuesday, January 16, 2007

Emaar, MGF JV to raise 2.9 bn dollar IPO

A joint venture of Dubai's Emaar Properties and India's MGF Developments plans to raise about Rs 130 billion (USD 2.93 billion) in an initial public offering, IPO in India, the Business Standard said.

The IPO, which could be India's biggest to date, is expected to hit the market in the second half of 2007, the paper said, citing sources close to the development. Emaar MGF Land has said it may sell 5-10% of its equity in an IPO this year.

It has a land bank of more than 5,000 acres and is developing townships, malls, apartments and infrastructure projects. It also has a joint venture with French hotel firm Accor to develop 100 hotels in India with an investment of USD 300 million.

Emaar MGF will go toe-to-toe with rival DLF, which filed an IPO prospectus earlier this month after pulling a planned issue last year. A banker told Reuters that DLF could raise more than USD 2 billion from a sale of 10.2% of its equity.

Land and property prices in India have risen sharply in the last two years as demand has soared in a fast-growing economy.

GPL to float IPO to raise Rs 1200cr

Gopalpur Port, GPL said it would float an IPO to garner around Rs 1200 crore from the markets for developing the port on Built Operate Owned Share and Transfer, BOOST basis in Orissa's Ganjam district, reports The Economic Times.

"Out of a total outlay of Rs 1800 crore for the project, we would go for IPO to raise Rs 1,200 crore from the market this year and the remaining money would be our equity," chairman of GPL D P Singh told media.

GPL is a Special Purpose Vehicle, SPV formed by a consortium of three companies- Sara International, Orissa Stevedores and Hong Kong-based Noble, to develop the Gopalpur Port.

Singh said the consortium had signed an agreement with the Navin Pattnaik government on September 16, 2006, on developing the port, which mandated them to develop it within 12 months. "However, we have more than matched the deadline and are slated to begin the first phase of the port operations on January 15, for which we have already spent Rs 150 crores," he said.

He said the SPV is in talks with IFCL and banks to raise money through hedge funds. The consortia were also in talks with the Corporation Bank and the Punjab National Bank for the purpose, Singh pointed out. The consortia were also exploring the possibility of ensuring a Special Economic Zone status for the project, for which they have acquired 629 acres of land.

"We are seriously thinking of ensuring a SEZ status for the project so that it could be developed in a big way and would shortly approach the Orissa government for this purpose," the SPV Chairman said. Singh said the consortia have received project proposals for setting up coal-fired power plants with an envisaged capacity of around 3,000 Megawatts.

Without naming the utilities he said, GPL has assured them of constructing a dedicated jetty for them to enable unhindered import of thermal-grade coal for their plants. "We are due to construct six jetties in the port and would construct one for the power utilities, as they wish us to do so," he said.

Wednesday, January 10, 2007

Afcons Infrastructure files DRHP with Sebi

Afcons Infrastructure, a Shapoorji Pallonji Group Company, engaged in civil engineering and construction work in India, has filed its draft red herring prospectus, DRHP with the Securities and Exchange Board of India, Sebi, yesterday with a proposal to enter the capital market with its initial public offering, IPO of equity shares, as per press release.

The company proposes to offer 1,60,65,000 equity shares of Rs 10 each for cash at a premium. The issue comprises a net issue of 1,57,43,700 equity shares to the public and a reservation of 3,21,300 equity shares for eligible employees. The issue would constitute 18.37% of the post issue paid up capital of the company. The net issue constitutes 18% of the post Issue paid up capital of the company.

The issue is being made through 100% book building process wherein at least 60% of the net issue shall be allocated on a proportionate basis to QIB Bidders. 5% of the QIB portion shall be available for allocation on a proportionate basis to mutual funds only, and the remainder of the QIB portion shall be available for allocation on a proportionate basis to all QIB bidders including mutual funds.

Further, not less than 10% of the net issue shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 30% of the net issue shall be available for allocation on a proportionate basis to retail individual bidders. The company has not opted for IPO grading of this offer.

Afcons Infrastructure, a civil engineering and construction company in India, is the flagship infrastructure construction company of the Shapoorji Pallonji Group, a well known and reputed name in the construction industry. The company’s experience in construction industry includes a wide variety of infrastructure projects like marine works, bridges, flyovers, roads, general civil engineering work including industrial structures, nuclear power projects, tunneling, pipelines etc.

The company has successfully executed more than 150 structures along the Indian coastline. The company has also successfully completed more than 100 bridges, flyovers, viaducts, two LNG storage tanks, underground and elevated train corridors and has executed 2000 lane kilometers of road works.

The company intends to use the proceeds of the IPO for the purposes of purchasing capital equipment, repayment of debt; general corporate purposes and strategic initiatives.

The company proposes to list its equity shares on the National Stock Exchange and the Bombay Stock Exchange.

The book running lead manager to the issue is Enam Financial Consultants and the co-book running lead managers are CLSA India, JM Morgan Stanley and SBI Capital Markets.

GBN IPO opens on Jan 15; Price band at Rs 230-250

Global Broadcast News, GBN, owners and operators of one of India’s leading 24-hour English language news and current affairs channel – CNN-IBN, is entering the capital market with an initial public offering, IPO of equity shares aggregating upto Rs 105 crore.

The price band for the issue is fixed at Rs 230 to Rs 250 per share. The issue will open on January 15, 2007 and close on January 18, 2007, as per press release.

Out of the total issue, equity shares aggregating upto Rs 5 crore are being reserved for allotment to eligible employees of the company. The net offer to public would aggregate upto Rs 100 crore. Of this, at least 60% is to be allocated on a proportionate basis to qualified institutional bidders – 5% of this will be available for allocation on a proportionate basis to mutual funds only.

Further upto 10% of the net issue will be available for allocation on a proportionate basis to non-institutional bidders and upto 30% of the net issue will be available for allocation on a proportionate basis to the retail individual bidders.

Global Broadcast News owns and operates one of India’s leading 24-hour English language news and current affairs channel, ‘CNN-IBN’. CNN-IBN was recently awarded the ‘Best English News Channel’ at the Hero Honda Indian Television Academy Awards 2006. For the five weeks ended December 2, 2006 it led the English news genre with an average weekly market share of 37.55%, according to TAM Viewership Data (on all India basis, for all individuals above 15 years, from 0700 to 2400 hours).

GBN is part of the TV18 group, which owns and operates some of India’s leading business channels and Internet portals. The TV18 group owns and operates channels such as CNBC-TV18 and CNBC Awaaz. In addition, they also operate portals such as www.moneycontrol.com and www.commoditiescontrol.com, etc.

The book running lead managers to the issue are ICICI Securities and Kotak Mahindra Capital Company. The co-book running lead managers to the issue are JM Morgan Stanley and IL&FS Investsmart.

Saturday, January 06, 2007

Puravankara to enter capital markets, files with Sebi

Puravankara Projects, one of the leading real estate development companies in India has filed its draft red herring prospectus, DRHP with the Securities & Exchange Board of India, Sebi to enter the capital markets with an initial public offering, IPO of equity shares, as per press release.

The company proposes to offer 2,14,67,610 equity shares of Rs 5 each. The Issue is being made through a 100% book building process in accordance with the Sebi (Disclosure & Investor Protection) Guidelines, 2000. The issue will constitute 10.05% of the post-Issue capital of the company.

Of the Issue, 60% is being reserved for allotment to qualified institutional buyers, of which 5% will be reserved for allotment to mutual funds. Further upto 10% of the issue will be allotted to non-institutional investors and the balance upto 30% will be allotted to retail investors.

DSP Merrill Lynch, Citigroup Global Markets India and Kotak Mahindra Capital are the book running lead managers to the issue.

The company proposes to utilize the net proceeds of the issue to acquire lands in and around Bangalore and Chennai aggregating 76.23 million sq ft at a total cost of Rs 7,334 million and repayment of loans of Rs 2,899 million, and for general corporate purposes.

As of December 15, 2006 the company has access to extensive land assets, which represent the land that it has reserved for its future projects aggregating approximately to 69.06 million sqft of saleable area. In addition, it has 12 residential projects and one commercial project under construction covering approximately 10.02 million sqft of saleable area under development.

The company owns 49% of the equity shares of Keppel Puravankara Development Private Limited, a joint venture with Singapore based Keppel Land Limited through Keppel Investment Mauritius Private Limited

Thursday, January 04, 2007

DLF files DRHP with Sebi

DLF, India's largest real estate developer engaged in the primary business of development of residential, commercial and retail properties, filed its DRHP with Sebi today, January 3, 2006, as per press release.

DLF proposes to enter the capital market with a public issue of 17,50,00,000 equity shares of Rs 2 each through 100% book building process.

Kotak Mahindra Capital and DSP Merrill Lynch are the global coordinators and BRLMs for the issue. Citigroup Capital Markets India, ICICI Securities, Lehman Brothers Securities, UBS Securities India and Deutsche Equities India are the BRLMs. SBI Capital Market is the co-BRLM for the issue. Karvy Computershare is the registrar to the issue.

Enam, JM Morgan pull out of DLF issue

Two top investment banks, Enam Financial Services and JM-Morgan Stanley, have backed out from the high-profile initial public offering, IPO by real-estate developer DLF Universal, amid speculation that the bankers had differences over valuation of the real estate company, reports Business Standard.

Lehman Brothers and Deutsche Equities India have replaced the two as the book-running lead managers, as per the revised prospectus filed with the Securities and Exchange Board of India, Sebi.

Though no official explanation was given for the withdrawal, market sources said there was some differences between the management and the two bankers on valuation.

Significantly, the chairman and managing director of JM-Morgan Stanley is a member of the Sebi’s primary market committee.

The two global co-ordinators for the IPO, Kotak Mahindra Capital and DSP-Merrill Lynch remain unchanged in the revised prospectus.

The other book-running lead managers for the issue are Citigroup, ICICI-Securities and UBS AG. SBI Capital Markets is the co-book runner for the IPO. This is the second instance in recent times wherein investment banks pulled out from the IPO, after agreeing to handle the issue earlier.

During the Deccan Aviation’s IPO last year, SBI Capital Markets, JP Morgan and ABN Amro Rothschild had backed off, citing differences over valuation.

Deccan Aviation had to bring down its price band, besides, extending the last date for application to ensure that the share issue goes through.

Enam Financial Services and ICICI Securities were the book-running lead managers for the IPO

Wednesday, January 03, 2007

Page Industries files DRHP with Sebi

Page Industries, exclusive licensee of Jockey International (USA) for India, Sri Lanka, Nepal, Bangladesh and Maldives, has filed its draft red herring prospectus, DRHP with Securities & Exchange Board of India, Sebi to enter the capital market with its initial public offering, IPO of equity shares, as per press release.

The company proposes to issue 28,04,000 equity shares of Rs 10 each for cash at a premium to be decided through a 100% book building process. Of this, 14,12,354 equity shares would constitute fresh issue of equity shares and the balance 13,91,646 equity shares are an offer for sale by the promoters.

The total offer constitutes 25.14% of the post issue fully diluted paid up capital of the company.

Page Industries proposes to reserve 15,000 equity shares for allotment to eligible employees of the company. The balance 27,89,000 equity shares are the net offer to public. Out of this net offer upto 50% will be allocated to qualified institutional bidders, of which upto 5% will be allotted to mutual funds only. Further, 15% is to be allocated to non-institutional investors and upto 35% will be allocated to retail individual investors.

Page Industries commenced operations in the year 1995 in Bangalore with the manufacturing, distribution and marketing of Jockey products. The company’s promoters have been associated with Jockey International for 47 years as their sole licensee in Philippines.

Jockey has the distinction of being the only innerwear brand in the country, which has been recognized as “Superbrand”. Jockey is retailed in over 14,000 stores in over 1100 cities and towns spanning the entire length and breadth of the country. The company reported a revenue growth from Rs.71.1 million in FY1997 to Rs 1011.9 million in FY 06.

The company has appointed IL&FS Investsmart as the sole book-running lead manager to the issue

DLF likely to file revised IPO prospectus

Real estate giant DLF is likely to file today the revised draft prospectus with market regulator Sebi for its initial public offer, IPO, which could be India's largest issue at over Rs 10,500 crore, reports agencies.

The company is likely to file its revised draft red herring prospectus with Sebi today, market sources said.

DLF had only last month resolved differences with minority shareholders regarding allotment of debentures, which paved the way for revival of its IPO process.

Minority shareholders had filed a complaint with Sebi alleging they did not receive the letter of offer of the debenture issued in December last.

The minority shareholders issue was the major reason for the collapse of its much-hyped IPO in August, when the company had to withdraw its draft prospectus from Sebi after failing to get the required regulatory approvals.

Tuesday, January 02, 2007

Four IPOs all set to power bourses in January

Four public sector power companies plan to mop up Rs 6,500 crore through initial public offers, IPOs in the next three months, reports Business Standard.

The first - Power Finance Corporation, PFC - is set to hit the market in the next couple of weeks. It will be followed by National Hydroelectric Power Corporation, NHPC, Rural Electrification Corporation, REC and Power Grid Corporation of India, PGCIL.

Analysts and market watchers expect the IPOs to sail through smoothly since these companies are profit-making and leaders in their domain.

According to IPO tracker Prithvi Haldea, managing director of Prime Database, the response to these IPOs would be “phenomenal,” with participation from all categories of investors - including qualified institutional buyers, high networth individuals and retail investors.

The IPO market is hot and there is a huge appetite for quality Indian paper, especially from the infrastructure sector. And power is one of the better-performing areas in the sector.

Also, with so many projects on anvil, both by government and private players, there is renewed interest, according to Arvind Mahajan, executive director and national industry director-infrastructure and government, KPMG.

“The current market has substantial interest from investors in power, as seen in ultra mega power projects, which had 8-10 private bidders,” says Shubhranshu Patnaik, associate director, PwC. He adds PE funds with focus on power and energy are on the lookout for assets in India.

There is, of course, significant growth potential in India’s power sector. The generation capacity is poised to double in the next 10 years, with concomitant growth in transmission and distribution sectors.

The main propeller for these issues is, however, going to be the price, which is widely expected to be a “PSU price,” meaning enough will be left on the table for the investors.

“Whenever a leading PSU has come up with an issue, the market has lapped up that opportunity,” says Anjani Agarwal, partner and industry leader, utilities, Ernst & Young.

Given the conservative pricing that typical PSUs follow, the offer price will be attractive, agrees Haldea. Investors can take exposure in the power financing through PFC or REC, in transmission through PGCIL, or hydropower generation through NHPC.

Key FII accounts are said to be “very interested” in these power IPOs, according to analysts, who expect NHPC and PGCIL to perform better than REC and PFC. Experts are, in fact, bracketing these IPOs with NTPC’s IPO, which is widely seen as a success.