Indian IPO

All details about Hot Indian Primary Market.

Tuesday, February 27, 2007

IT People files DRHP with Sebi

IT People India is an e-Recruitment & Consulting Public listed company, providing human capital solutions for IT & ITES industry on a global basis and has BS 7799 & ISO 9001-2000 Certifications.

The company is proposing to make a follow-on public offering, FPO of equity shares to the tune of Rs 45.25 crore through 100% book building process and has filed its draft red herring prospectus, DRHP with Sebi and Bombay Stock Exchange.

The above FPO has been planned to generate additional resources to meet its expansion needs such as investment in technology infrastructure, product enhancement and business expansion.

Khandwala Securities and Religare Securities are the book running lead managers to the proposed issue and TSR Darashaw is the registrar to the issue, as per press release.

Allied Digital to enter capital market

Allied Digital Services, a Systems Integrator and IT Infrastructure Management Services provider, plans to enter the capital market with an initial public issue of 45,22,435 equity shares of Rs 10 each at a premium to be decided by the book building process.

"We will be able to raise above Rs 80 crore through the issue," said Nitin Shah, managing director, Allied Digital Services.

The issue will constitute 25% of the fully diluted post-issue capital of the company.

Bennett Coleman and Company (BCCL) currently holds 5% equity stake in the company.

The stock will be listed on the BSE and NSE.

The company plans to use the issue proceeds for setting up a technical BPO, a network operating centre, a security operating centre, upgradation and expansion of existing infrastructure, setting up of a new corporate office and a strategic acquisition in the future.

The company recorded net profit of Rs 12.06 crore for the year ended March 31, 2006 and total income of Rs 88.87 crore.

Ananad Rathi Securities is the book running lead manager to the issue and Intime Spectrum Registry is the registrar.

The company has 1,200 employees and is present in 72 locations across the country, reports The Hindu Business Line.

Tuesday, February 20, 2007

Afcons Infrastructure to float Rs 250cr IPO

Indian infrastructure major Afcons Infrastructure will float an initial public offering, IPO next month to generate about Rs 250 crore to fund its domestic and overseas expansion plans.

"We will hit the market to generate about Rs 250 crore, which would be used for procurement of equipments and funding of our ongoing projects, managing director Afcons Infrastructure K Subramanian said.

He said the company has filed a draft red herring prospectus with the Sebi for an IPO of 16,065,000 equity shares of Rs 10 each for cash at a premium. The issue would constitute 18.37% of the post issue paid up capital of the company, he said.

Afcons, the flagship company of the Shapoorji Pallonji group, is building a dedicated oil jetty at Mauritius Port to enable the island nation meet its requirement of crude at a larger scale at a cost of USD 171 million.

Afcons executive director (Finance and Commercial) S Paramasivan said the company would venture more into the Middle East markets and entering newer areas of construction. The company has resolved to execute road construction work only on BOT basis in India.

The company has an order book of Rs 3,030 crore which include projects spanning in Asia, Middle East and Africa. Currently, it was executing marine, civil and pipeline works for Reliance Industries at Jamnagar, he said.

In an unique project of its kind the company would build a bridge on Chenab river in Jammu and Kashmir along with the Konkan Railway Corporation.

During the last fiscal the company's consolidated income was Rs 7,177.67 million, a growth of 29.52% compared to the previous fiscal, reports The Economic Times.

Spice Tele files for IPO, plans to raise $150m

Spice Telecom, which currently offers mobile services in Punjab and Karnataka, on Monday filed the draft red herring prospectus, DRHP with Sebi to mop up over USD 150 million from the capital markets.

The company will offload about 20% stake. Currently, the promoters (Mcorp Global) hold 51% stake with Telecom Malaysia holding the remaining 49%, but post-listing their shareholding will come down to 40.8% and 39.2%, respectively.

As per the DRHP filing, Enam Financial Consultants is the book running lead manager for the float. Spice Telecom will issue 137 million shares of Rs 10 each, of which 2 million is reserved for its employees.

Spice Telecom will use the proceeds from its IPO for part payment of its long-term debt, payment towards national and international long distance (NLD/ILD) licences fees, capital expenditure requirements, other general corporate expenses and also to meet the expenses of the issue.

Chairman and managing director of Spice Communications Dilip Modi said the capital raised would cater to the company’s expansion plans. “We have applied for cellular licences for the remaining 21 circles in the country. Our expansion to these circles will depend on spectrum availability. We will also be exploring the mobile virtual network operator (MVNO) route for expansion into more circles,” he said.

“Initially our plan is to set up base infrastructure for NLD/ILD capacity of 30 million minutes per month across 15 locations in India,” he said.

“Initially our plan is to set up base infrastructure for NLD/ILD capacity of 30 million minutes per month across 15 locations in India,” the company said. On the ILD front, it has proposed to set up three international points of presence (PoPs) in US, UK and Singapore. “We have received quote of Rs 101 million from Wipro for NLD requirements and Rs 60 million for ILD requirements. We will give orders to the equipment suppliers only after the receipt of NLD/ILD licence,” the company added, reports The Economic Times.

Tuesday, February 13, 2007

Mandatory IPO rating to be in phases

Sebi meet this weekend to also discuss physical delivery in options.

The Securities and Exchange Board of India proposes to roll out mandatory grading of initial public offers, IPOs in phases.

The board meeting of Sebi, slated this weekend, is also likely to discuss physical delivery to boost trading in stock options.

According to sources, IPO grading, which is now optional, will be implemented on a mandatory basis for fresh initial public offers for six months.

They said Sebi was considering the proposal as it does not have any data or background for these companies unlike those already listed. Later, depending on the experience in IPOs, the rating would be extended to follow-on offers as well, said the sources.

Several companies have lined up IPOs and it was felt that some dubious companies may also use the bullish sentiment to charge higher premiums.

Already, recent listings are trading at a discount. IPOs of smaller denomination will be under greater scrutiny, since they attract more retail investors, sources said.

On physical delivery in stock options, sources said, it was aimed at reviving the illiquid derivatives category. Sebi was more likely to introduce a stock lending and borrowing along with physical settlement for options contract.

Currently, options trading in Nifty follows the European options model, which is non-exercisable.

On the mandatory IPO grading, K Sivaprakasam, managing director and CEO of Credit Analysis and Research, said retail investors can assess fundamentals of IPOs in a much better way if gradings are done by an independent agency, reports Business Standard.

Prithivi Haldea of Primedatabase, however, has a different take. “In most issues, 50% is allotted to qualified institutional buyers there is also pre-IPO marketing done to them and these institutions only invest in IPOs after proper research that, in itself, is like validation and then retail investors come in. When the QIB subscription is less than 1% or 1% it means that the IPO is bad and retail investors should stay away from it. Mandating grading for IPO will make things difficult as the market is functioning properly with out any hassles.”

DLF denies news about IPO getting delayed

DLF, which is planning to raise around Rs 10,000 crore from the primary market, has denied news about its IPO getting delayed.

DLF filed its DRHP on January 7, 2007 with Sebi and is now awaiting Sebi approval. During the process, Sebi has seek some queries on points from the DRHP which is a normal process for any IPO. DLF will suitably clarify these queries.

Thursday, February 08, 2007

Vijayeshwari Textiles issue opens today

Vijayeshwari Textiles, a company engaged in the production of cotton yarn and textile made ups, is open for subscription to raise Rs 90 crore from the capital market with a public issue of shares of Rs 10 each for cash at a premium to be decided through a 100 per cent book building process.

The price band has been fixed between Rs 115 and Rs 130 per share.

Pre-issue, the promoters' shareholding stands at 84% and is expected to go down to 48 per cent post-issue.

The proceeds will part finance the company's expansion in all its divisions, namely, spinning, weaving and processing. In the spinning segment, the company is adding 50,688 spindles (46,004 spindles), 80 looms (84 looms) in the weaving segment and the processing capabilities are being doubled to 30,000 metres per day from the current 15,000 metres per day. The company also proposes to take over a sewing facility with a capacity of 24,00,000 pieces per annum and is further setting up an additional capacity of 26,00,000 pieces per annum.

The issue closes on February 13. IDBI Capital Market Services is the book running lead manager for the issue.

Mudra Lifestyle IPO bids start today

Mudra Lifestyle, engaged in fabric weaving, processing, making garments and gradually moving towards garment manufacturing mainly in the men's shirts and lady's wear segments, is open for subscription with a public issue of 95,80,000 equity shares of Rs 10 each through 100% book building process.

The price band has been fixed at Rs 75 to Rs 90 per equity share of Rs 10 each and the issue closes on February 14, 2007.

The issue would constitute 26.62% of the post issue paid up capital of the company. The company has made a pre- IPO placement of 19,20,000 equity shares to SIDBI Venture Capital. And State Bank of India, leaving net offer to the public constituting 25.29% of the post issue paid-up capital of the company.

SBI Capital Markets is the sole BRLM for the issue and Bigshare Services is the registrar.

The issue is being made through the 100% book building process where upto 50% of the issue size shall be allocated to QIBs (including 5% of the QIB portion that would be specifically reserved for Mutual Funds) on a proportionate basis. Further, a minimum of 15% of the issue shall be available for allocation on a proportionate basis to non-institutional bidders and a minimum of 35% of the issue shall 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 shares are proposed to be listed on BSE and NSE.

Early this month the company has raised a total of Rs 144 million through pre-IPO private placement of equity shares to SIDBI Venture Capital and the State Bank of India.

Mudra Lifestyle, a leading manufacturer and exporter of fashion fabrics and garments with modern manufacturing facilities, proposes to utilize the net proceeds of the issue to expand its manufacturing facilities by setting up a new integrated unit having all the process of yarn dyeing, weaving, process house and garment manufacturing near Bangalore and Tarapur with an estimated investment of Rs 1774.90 million. Out of this fund requirement, the company proposes to utilize debt up to Rs 1008.40 million and it is fully tied up.

Presently, Mudra Lifestyle sales fabrics in domestic as well as international markets. In addition, it also use the fabrics for internal consumption and at the same time sell it to other garment exporters. It exports garments and recently started with manufacturing garments for well known Indian brands. Its process house caters to its requirements and at the same time do outside jobs. At present the company has 177 automatic looms having capacity to produce approximately 10.62 million meters of woven fabric per annum and 700 sewing machines with production capacity of 3.15 million garments per annum.

Oriental Trimex IPO opens for subscription

The New Delhi-based Oriental Trimex, engaged in marble and granite business, is open for subscription with an IPO through a book-building process to raise between Rs 35 crore and Rs 40 crore for its ongoing expansion plans.

The issue will close on 14. The public issue is of one crore equity shares of Rs 10 each at the price band of Rs 40-48 per share.

The post-issue equity capital will be of Rs 15.50 crore with promoters' stake at 39.37%.

The book running lead manager to the issue is Allianz Securities and lead manager is Canara Bank.

An ISO 9001-2000 certified company engaged in the business of cutting, polishing and processing of imported and indigenous marble, trading of decorative stones, including granite. The company registered a turnover of Rs 52 crores as on March 31, 2006 and as on December 15, 2006, the company has already attained the turnover of Rs 53 crores.

In order to tap the market, Oriental is expanding the existing 12,600-tonne marble processing unit at Greater Noida and setting up new units with similar capacities at Kolkata and Bangalore. Besides, it has secured lease of two granite quarries of green and blue granite in Orissa, having an estimated mine-able deposits of Rs 452 crore, where operation and extraction of material has commenced.

The company is also acquiring additional mining equipment, setting up a new granite processing unit at Balasore (Orissa) and retail marketing outlets New Delhi and installation of equipment at Chennai outlet.

Indus Fila fixes issue price band at Rs 170-185

Indus Fila, engaged in yarn dyeing, fabric weaving, fabric processing and apparel manufacturing, proposes to enter the capital market on February 12, 2007 with a public issue of 48,43,789 equity shares of Rs 10 each through 100% book building process.

The price band has been fixed at Rs 170 to Rs 185. The issue closes on February 14, 2007. The issue would constitute 25% of the fully diluted post issue paid up capital of the company.

Anand Rathi Securities is the BRLM for the issue and Datamatics Financial Services is the registrar to the issue.

The issue is being made through the 100% book building process wherein up to 50% of the net issue to public shall be allocated to qualified institutional buyers, QIB's on a proportionate basis. Out of the portion available for allocation to the QIB's, 5% will be available for allocation to mutual funds. Mutual fund applicants shall also be eligible for proportionate allocation under the balance available for the QIB's.

Further, not less than 15% of the net issue to public shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 35% of the net issue to public shall 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 equity shares are proposed to be listed on the BSE and the NSE.

The company proposes to utilize the net proceeds of the issue to part finance its Rs 166.24 crore plan for expansion of capacities in weaving, yarn dyeing and setting up of ``Centre of Excellence'', processing and garmenting. The plan has been appraised by Corporation Bank, Karnataka Bank and UTI Bank for total rupee term loan of Rs 74 crore sanctioned by these banks. The entire rupee term loan is eligible for a 5% interest subsidy under the technology upgradation fund scheme, TUFS. Under the amended provisions of TUFS, the company will also be eligible for an additional incentive of 10% capital subsidy for the specified textile processing machinery.

Indus Fila, the flagship company of the group, is a new age fashion and textile manufacturer with sharp focus on design and backward integration capabilities, thriving under the dynamic leadership of Nitin N Mandhana, the prime mover of the company, supported by two other promoter directors - Shashikant G Mandhana and Prakash G Mandhana. The promoters are from a family, which is associated with the textile industry for a long time.

The company's operational income and profit after tax for the year ended March 31, 2006 is Rs 82.49 crore and Rs 5.49 crore respectively and for the half year ended September 30, 2006 it is Rs 109.18 crore and Rs 10.63 crore respectively. Its operational income and PAT have grown at a CAGR of 99.29% and 147.23% respectively over the period of five years and six months.

Indus Fila has multi-locational production and distribution facilities spread across Bangalore and Mysore, viz. Peenya and Nelamangala in Bangalore, Nanjangud in Mysore fully backed up by the facilities for product development, design studio and efficient sampling infrastructure to provide quality services to its customers in India and abroad. It also has distribution facilities in Chennai and Mumbai, which give it advantage of being able to serve customers from multi-locations.

Presently, it is operating with 156 weaving looms (including 48 looms under 100% manufacturing agreement) producing approximately 20.80 million meters of fabric per annum and 750 sewing machines with production capacity of 2.70 million garments per annum.

The company has integrated Design-to-Delivery capability with emphasis on design excellence and innovative product engineering. Its multi-location production facilities spread across Bangalore and Mysore, as per press release.

Its business strategy

* To focus on innovative designing with fully equipped state of art 'plug & play' design facility with good collection of latest design developed in-house for clients to choose from. Centre of Excellence to act as a differentiating factor and will play a vital role in our strategy to offer high end fashion designs and innovative product engineering to customer requirements.
* To expand garment capacity to meet the growing opportunity in the market place and in this process captively consume around 42% of our own production of fabrics.
* To take advantage of the removal of Quota regime by penetrating the regulated markets of EU and US.
* To position ourselves in the mid to high end garment segment such that we enhance our acceptance and improve our capabilities to meet the stringent compliances stipulated by such customers. This shall make way for establishing our own brand in a short time.

Raj TV fixes IPO price band at Rs 221-257; opens on Feb 14

Raj Television Network, a regional broadcaster and media company, is entering the capital markets with an initial public offering, IPO of 35,68,250 equity shares of face value of Rs 10 each, for cash, at a premium to be decided through a 100% book-building process.

The price band for the issue has been fixed between Rs 221 and Rs 257 per equity share. The issue opens on February 14, 2007, and closes for subscription on February 23, 2007. The equity shares of the company are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.

Of the total 35, 68,250 equity shares, the employee reservation portion is 3, 24,384 equity shares, the net offer to the public is 32,43,866 equity shares. The issue is being made through a 100% book building process wherein not more than 50% of the net offer to the public shall be allocated on proportionate basis to qualified institutional buyers (including 5% for mutual funds).

Further, not less than 15% of the net offer to the public shall be available for allocation on a proportionate basis to non institutional bidders and not less than 35% of the net offer to the public shall be available for allocation on a proportionate basis to retail bidders, subject to valid bids being received at or above the issue price. Upon completion of the issue, the promoter / promoter group will own 72.50% of the post-issue equity share capital.

The objects of the public issue are to: strengthen production facilities; enhance content and content acquisition; launch a new youth-centric television channel; broadcast existing channels in the international market; produce short-films/ telefilms; acquire and export films in the international market; and, construct new studio premises.

The company posted a total income of Rs 3,195.98 lakh as of the financial year ended March 31, 2006, as compared to Rs 2,964.42 lakh for the financial year ended March 31, 2005. The total income was Rs 2,950.18 lakh for the period ended December 31, 2006. The net profit (restated) for fiscal 2006 was Rs 381.56 lakh (restated) as compared to Rs 297.75 lakh for fiscal 2005. The net profit (restated) for the period ended December 31, 2006, was Rs 986.74 lakh.

Raj TV was one of the first broadcasters to convert analog transmission into digital. The network’s strength has been its large content base addressing every member of the family thereby making it a true “People’s Channel”. It currently operates two channels — Raj TV and Raj Digital plus, which are 24-hour Tamil channels. The Company’s strategic advantage includes its wide viewership, multi-content programming, business model, regional prominence, cultural programming and experienced management team.

The book running lead managers to the issue are Vivro Financial Services while the co-manager is Canara Bank, as per press release.

Tuesday, February 06, 2007

Idea's market share stands at 17.79%, ranks at No 3

Aditya Birla group company, Idea Cellular, is entering the capital market with an initial public offering, IPO, aggregating Rs 2125 crore, of equity shares of Rs 10 each, for cash at a premium to be decided through a 100% book-building process.

The price band for the issue has been fixed at Rs 65-75 per share.

Aditya Birla, chairman, said in the Idea Cellular IPO conference, “Currently there are 15 crore mobile subscribers in India and government projected this figure to touch 50 crore subscribers by 2010.”

He also pointed out on three drivers for Idea, which raised the market share to 17%:

Brand new handset – Mobile handsets are available at Rs 1200-1400, which is less than the cost of a bicycle.

Cost of ownership – The person, who has a salary of Rs 5000, spends Rs 2.5% of its salary on Mobile.

Tariff is lower in India as compared to other parts of the world.

Idea is a GSM player and currently has licenses for 11 circles and will soon add 2 more.

Its three circles are positioned at rank No 1 and two circles are at rank 2.

Aditya Birla Group holding in Idea stood at 65.93%.

He also said, "Idea has 12.44 million subscribers as of December 2006. For the nine month ended December revenues was of over Rs 3,000 crore.

New NLD licence will help upgrade infrastructure, he said.

Sanjeev Aga, managing director of Idea Cellular, with the help of the following tables explained the company’s market share in India and its subscribers base.

Idea subscriber position

Year Circles Subscribers
2002 5 circles 1 million
2004 8 circles 4 million
2006 11 circles 12 million

8 Established circles – competition analysis

Company 31-Mar-06 31-Dec-06
Reliance 21.5% 20.5%
Bharti 18.2% 19.1%
Idea 16.5% 17.79%
Hutch 15.8% 16%
BSNL
&MTNL 17.3% 15.2%
Tata 10.2% 11.3%

3 New circles Overview (31-Dec-06)

State Launch Mkt share Subscribers Mobile Penetration
Date
Himachal Pradesh Sep 06 1% 11000 17.2%
Rajasthan Oct 12 2.5% 161000 10.4%
UP (E) Nov 01 2.3% 208000 7.2%

Best name in vendors list – Siemens, Ericsson, Nokia

Market share growth

March 06 June 06 Sep 06 Dec 06
16.56% 16.9% 17.6% 17.7%

12.4 million subscribers – CAGR 86% in 4 years.

Nimesh Kampani of JM Morgan Stanley (book running lead manager), said that, "The Indian Telephony Industry is growing 94% per annum."

Idea Cellular IPO’s price band is available at 21-29% discount to EBITDA of Bharti. Its current market cap is at USD 3.4 billion, he said.

Evinix Accessories fixes IPO price band at Rs 100-120

Evinix Accessories, manufacturers of fashion accessories, proposes to enter the capital market with an initial public offering, IPO of 35 lakh equity shares in the price band of Rs 100 to Rs 120.

The issue is being made through a 100% book building process, where 50% of the issue shall be allocated to qualified institutional bidders; 5% of the QIB portion shall be available for mutual funds. Fifteen per cent of the issue shall be available for allocation to non-institutional bidders and 35% shall be allocated to retail individual investors. The issue would constitute 32.71% of the fully diluted post paid up equity capital of the company.

"We are looking to raise Rs 35-Rs 42 crore," said Mr Raujeev Tanjea, managing director of Evinix Accessories.

The proceeds will fund the company's expansion costing between Rs 42 crore and Rs 49 crore. The company is looking to expand capacities of its accessories from 20 lakh pieces per annum to 35 lakh and that of garments to 30 lakh pieces per annum.

Allianz Securities is the lead manager for the IPO and Beetal Financial and Computer Services is the registrar. The issue opens on February 12 and closes on February 15.

Evinix is in the business of manufacturing and exporting accessories like caps, belts, scarves and stoles, reports The Hindu Busines Line.

Sebi bars Gammon Infra IPO for one-year

The Securities and Exchange Board of India, Sebi has barred Gammon Infrastructure Projects, GIPL IPO for one-year.

Gammon India filed appeal with SAT against Sebi order.

At present, Gammon India holds 82.5% stake in GIPL, which is likely to come down to nearly 20% after the latter’s maiden float comes through.

Earlier in the December, the Sebi fiat restricted GIPL parent company Gammon India Pvt Ltd, GPL from raising money from the capital market for next one year.

The market regulator barred Gammon India, its promoter Abhijit Rajan, as well as Rajan-promoted other two entities from accessing the capital market for a year for routing the company’s funds to subscribe to its Rs 19 crore rights issue in 2001.

Interestingly, along with these four, the Sebi also banned Reliance Silicon India, which was the complainant against Gammon for irregularities, from tapping the markets for one year.

PowerGrid issue to enter capital market in April

Power Grid Corporation of India's initial public offering, IPO is slated to come out in April and the State-owned transmission major is likely to appoint merchant bankers for the issue this week, the company chairman, R P Singh, said on Monday.

The company plans to sell 10% of its equity capital through the IPO, Singh told reporters.

"We are hoping a good response for the IPO and it all depends on the market conditions," he said, reports The Hindu Business Line.

Friday, February 02, 2007

Lehar manufacturers plans IPO

Lawreshwar Polymers, manufacturers of Lehar footwear, is planning to enter capital markets through an initial public offer, IPO in order to raise about Rs 13.94 crore for expansion.

The funds would be used for installing 4 moulding machines to be imported from Italy, Ashika Capital President Rajendra Kanoongo said. Ashika Capital is the lead manager for the issue, reports The Economic Times.

Lehar footwear, which is mainly sold in northern region, would use the funds to open five showrooms in different parts of the country and to build a new corporate office in Jaipur, he said.

Out of the total 87.12 lakh issue of the company, 62 lakh would be for the public.

The issue price of Lawreshwar's Rs 10 per share is Rs 16. The issue opens on February 5 and closes on February 8.

Post issue, promoter's 100% share in the company would come down to 54.31%.

"The company would raise Rs 10 crore from the public. About Rs 3.94 crore would be promoter's share and UTI Bank would be giving a term loan of Rs 5 crore," Kanoongo said.

The company has been into manufacturing shoes and has entered into retailing at the begining of this year, he said.

Thursday, February 01, 2007

House of Pearl Fashions fixes issue price at Rs 550

House Of Pearl Fashions, a multinational, ready-to-wear apparel company operating in three distinct business streams: manufacturing, marketing & distribution and sourcing of garments, entered the capital market with an IPO of equity shares and has fixed its issue price at Rs 550 per share, as per press release.

House of Pearl Fashions had offered 59,84,994 equity shares of Rs 10 each through the book building route, which comprised of fresh issue of 4,759,794 equity shares by the company and an offer for sale of 1,225,200 equity shares by the promoters. There was a reservation of 122,600 equity shares for employees. There will also be a green shoe option of 612,060 equity shares of Rs 10 each. The issue will constitute 33.52% of the fully diluted post-issue equity share capital of the company assuming that the green shoe option is exercised in full.

The issue which opened for subscription on January 16, 2007 and closed on January 23, 2007, received an overwhelming response.

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

JM Morgan Stanley is the sole book running lead manager for the IPO.

About House of Pearl Fashions

HoP Fashions is a multinational, ready-to-wear apparel company operating in three business streams: manufacturing, marketing and distributions and sourcing of garments. HoP Fashions operates ten modern ready-to-wear apparel manufacturing facilities, of which six are located in North India, one in South India, two in Bangladesh and one in Indonesia. HoP Fashions manufactures a broad range of products comprising of knits, woven, sweaters and bottoms in basic as well as complex designs.

The company has marketing and distribution offices in UK, US and Hong Kong which oversee marketing and merchandising teams across Canada, Europe, Hong Kong, UK and US that interact with customers at their locations. The Company also owns warehousing and processing units in UK and US. HoP Fashions also has a sourcing business in Hong Kong with offices in China, Bangladesh and India. The Company has fabric development centers in China and India as well design and product development teams in UK, US, India and Hong Kong.

As on August 31, 2006, the Company’s facilities were spread over 725,250 sq feet of space with an aggregate installed production capacity of about 20 million pieces per annum compared to an aggregate installed production capacity of approximately 16 million pieces per annum as on June 30, 2006 and approximately 10 million pieces per annum as on March 31, 2006.

As on June 30, 2006, HoP Fashions employed approximately 6,496 full time employees, of which 4,193 were based outside India.

Euro Ceramics plans to enter capital

Euro Ceramics, a player in the ceramics and aluminium extruded sections domain, is entering the capital market with an initial public offering, IPO of 56.21 lakh equity shares of Rs 10 each.

The price band has been fixed at Rs 150-180 per share . The issue opens on February 7 and closes on February 13, reports The Hindu Business Line.

Of the 56.21 lakh equity shares, 1.21 lakh equity shares have been reserved for employees, reducing the net offer to 55 lakh equity shares, said a company release. It will use the proceeds to part finance the setting-up of manufacturing facilities for sanitary ware products at Bhachau, Kutch.

"The total cost for setting-up of the facility is about Rs 77 crore," said Nenshi L Shah, MD, said at a news conference.

The net issue to the public will constitute 32.16% of the fully diluted post IPO paid-up capital of the company. About 50% of the net issue to the public will be available for allocation to qualified institutional buyers on a proportionate basis (of which 5% shall be allocated for mutual funds only).

About 15% of the net issue will be available for allocation on a proportionate basis to Non-institutional bidders and about 35% of the net issue to the public will be available for allocation to retail individual bidders.

The book-running lead managers to the issue are UTI Securities and Enam Financial Consultants.

MindTree Consulting fixes issue price band at Rs 365-425

MindTree Consulting, an international IT and R&D Services Company that delivers business and technology solutions through global software development, is proposing an initial public offering, IPO of its equity shares.

The IPO is scheduled to open on Friday, February 9, 2007 and close on Wednesday, February 14, 2007.

MindTree proposes to offer 5,593,300 equity shares of Rs 10 each at a price band of Rs 365 to Rs 425 per equity share through the 100% book building process method in accordance with the Sebi (Disclosure & Investor Protection) Guidelines, 2000, as per press release.

The issue comprises of a net issue of 4,940,740 equity shares of Rs 10 each to the public and up to 372,900 equity shares of Rs 10 each reserved for subscription by eligible employees and up to 279,660 equity shares of Rs 10 each reserved for subscription by business associates.

The issue will constitute 15% of the post-Issue capital of the company and the net issue will constitute 13.25% of the post-Issue capital of the company.

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

MindTree is organised into two divisions – Information Technology Services and Research and Development Services. IT Services comprise IT strategic consulting, application development and maintenance, package implementation and product engineering services. The IT Services business unit offers such services with a strong focus on certain industries including manufacturing, travel and transportation, banking, financial services and insurance.

R&D Services are organised into two divisions – Engineering, which provides product realisation services including architecture and design, re-engineering and product assurance to technology and product firms; and Research, which conceives and develops intellectual properties, primarily in the short-range wireless communication segment and licences and customises such intellectual properties for clients.

Kotak Mahindra Capital Company and JM Morgan Stanley are the book running lead managers, J P Morgan India is a co–book running lead manager and Macquarie India Advisory Services is a lead manager to the issue.