Indian IPO

All details about Hot Indian Primary Market.

Monday, August 27, 2007

Govt to sell fresh 4.75% stake in NTPC via FPO

The government plans to sell 4.75% of its stake in National Thermal Power Corporation (NTPC). The Ministry of Power has sought approval from the Department of Disinvestments for a follow-on public offer. NTPC has told the Ministry it will not be appropriate to increase the company’s equity base with a fresh issue as it already has the highest paid-up capital - Rs 8245.5 crore - among the country’s listed firms. NTPC feels any increase will reduce earnings per share.

Further, the projections made by NTPC for funding future capital expenditure needs indicate that the internal resources of the company are more than adequate.

With just a few high-quality issues arriving this year, the bourses will welcome this move. The NTPC stock closed at Rs 163.80 at the National Stock Exchange (NSE) on Friday, reports The Indian Express.

PGCIL fixes IPO price band of Rs 44-52/sh

Power Grid Corporation of India (PGCIL), the country’s biggest transmission utility, has fixed a price band of Rs 44-52 for its initial public offer and sale of government equity to raise between Rs 2,500-3,000 crore.

The state-run, which filed its red herring propectus with market regulator Sebi for the public offer last week, fixed the price band of Rs 44-52 after consultations with merchant bankers. The range has also been approved an Empowered Group of Ministers set up for approving disinvestment of government holding in PSUs, official sources said.

The offer would constitute 10 per cent of fresh equity comprising 38.26 crore shares and sale of five per cent stake by the government amounting to 19.13 crore shares. Of the total size to 57.39 crore, about 1.39 crore shares have been reserved for employees.

At the lower end, it would raise Rs 2,525 crore and at the upper end the compant would mobilise Rs 2,984 crore. The company would retain 1,683-1,989 crore from the total proceeds, while the government would mop up Rs 841-994 crore.

PGCIL is the third central power utility to tap the capital market for raising funds after NTPC Ltd in 2004 and Power Finance Corporation early this year. Like NTPC and PFC, the government will piggyback on PGCIL IPO to divest five per cent of its stake. While NTPC had raised around Rs 5,400 crore, PFC had mopped up nearly Rs 1,000 crore.

Power Grid Corp is raising funds from the market to part-finance its expenditure requirements. The transmission sector requires an estimated investment of Rs 70,000 crore during the 11th plan and central utilities led by PGCIL are expected to contribute as much as Rs 50,000 crore, reports livemint.com.

Friday, August 24, 2007

Bombay Rayon may raise Rs 500cr via FPO

Bombay Rayon Fashions is embarking on a three-pronged modernisation, expansion and vertical integration strategy for its garments manufacturing facilities.

The company is expected to raise the required funds through a secondary offering in the next three months. Market sources said the company is eyeing Rs 450-500 crore as gross proceeds from a follow-on public offer (FPO).

The stock was trading down 2% at around Rs 206 in noon deals on the BSE.

While the quantum of shares to be floated is not clear, sources indicated that rupee term loans from banks and other financial institutions could not be ruled out as a buffer against the prevailing market conditions.

About 70% of the funds raised through the secondary issue and other sources would be used for augmenting capacities in Leela Scottish Lace, the erstwhile garments business of Leela Ventures, which was acquired by Bombay Rayon for Rs 155 crore in July.

The integration of Leela’s garments business with Bombay Rayon was formally concluded late last week. There are indications that Uday Mogre, executive director (corporate), Bombay Rayon has been allotted additional responsibility of the garments assets acquired from Leela Ventures.

The sale of Leela’s garments business was primarily necessitated by gross margin erosions in the range of 5-10% over the last three years with many export orders shifting to mills in Bangladesh, industry sources said, reports Business Standard.

Wockhardt Hospitals files DRHP with Sebi

Wockhardt Hospitals, a subsidiary of Wockhardt, is planning to enter capital markets with an initial public offering (IPO) of 3,00,00,000 equity shares of Rs 10 each for cash with 100% book building process. The company has filed draft red herring prospectus (DRHP) with market regulator, SEBI on August 23, 2007.

The issue comprises a net issue to the public of 2,95,00,000 equity shares of Rs 10 each (the net issue) and a reservation of upto 5,00,000 equity shares for subscription by eligible employees. The issue will constitute 28.77% of the post-issue paid up equity share capital of the company.

Up to 50% of the issue shall be available for allocation 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. The remainder shall be available for allocation on a proportionate basis to QIBs and mutual funds, subject to valid bids being received from them at or above the issue price.

Further, at least 15% of the issue will be available for allocation on a proportionate basis to non-institutional bidders and at least 35% of the 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 company intends to utilise the proceeds from the issue to meet the cost of development and construction of greenfield and brownfield hospitals of the company, prepay some of the short term loans and to meet general corporate expenses.

The company is considering a Pre-IPO placement of up to 7,500,000 equity shares with certain investors. If the Pre-IPO Placement is completed the issue size offered to the public will be reduced to the extent of such Pre-IPO Placement, subject to a minimum net issue size of 10% of the post Issue capital being offered to the public.

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

Citigroup Global Markets India Private Limited and Kotak Mahindra Capital Company are the book running lead managers to the issue and Intime Spectrum Registry is the registrar.

The company has reported income of Rs 77.5 crore for quarter ended June 2007 (three months) and net profit after tax at Rs 1.15 crore. For the year ended March 2007, it has posted income of Rs 236.7 crore and net profit after tax at Rs 15.59 crore.

It has a pan-India presence with a network of eight super-specialty hospitals and four regional specialty intensive care unit (ICU) hospitals providing healthcare services in western, southern and eastern India.

It has a capacity of approximately 1,090 inpatient beds in use across network of 12 facilities. The company is targeting 1,798 new beds by March 31, 2009

Monday, August 20, 2007

Renuka Sugars mulling FPO offer for overseas expansion

Sugar major Shree Renuka Sugars is mulling over various options, including a follow-on public offer (FPO), to raise funds in the coming months for its overseas expansion even as the company has earmarked Rs 230 crore for domestic expansion.

"We plan to expand abroad and our investments will be in either crushing sugar or producing biofuels. Our investments for our overseas initiatives will be routed through an UAE-based wholly-owned subsidiary Shree Renuka Biofuels Holdings FZE," a senior company official said.

The company hopes its overseas expansion would help considerably lower the production costs.

While the official did not divulge the investments earmarked for the overseas initiatives, he said that it was open to various funding options such as ADR, GDR, QIP or even a follow-on public offer (FPO).

"We will be freezing the details within the next two months," he said.

The company is implementing a domestic expansion programme as well which is designed to double its ethanol production. It is also setting up state-of-the-art sugar refineries in the country.

The company already has a fully-owned subsidiary in Dubai called Renuka Commodities DMCC which is into sugar trading.

On domestic front, the company proposes to double its ethanol production from the present 450 kilolitres per day (klpd) to 900 klpd by September 2009.

"The investment in this will be Rs 230 crore," he said. A part of this earmarked amount would also go towards increasing refining capacity besides setting up a new refinery plant and increasing co-generation capacity, he said.

The company is setting up a refinery with a capacity of 1,000 tonnes per day (tpd) at its existing plant at Athani in Karnataka. Another port-based refinery at Haldia with a capacity of 2,000 tpd would take its total refining capacity to 4,000 tpd, he said.

Shree Renuka Sugars recently acquired a stand-alone distillery located at Khopoli in Maharashtra for Rs 6 crore which converts rectified spirit to ethanol. "Its present capacity is 100 klpd which can, however, be upped to 250 klpd," he said.

The company has also recently bought a 54 per cent stake in Pune-based company KBK Chem Engineering for Rs 37 crore. This company provides turnkey solutions in the field of distilleries, ethanol plants and biofuels.

Shree Renuka Sugars presently has a crushing capacity of 25,250 tonnes per day (tpd) and a power generation capacity of 129 MW, reports PTI.

Pantaloon Board approves Future Capital IPO

Future Capital Holdings, the financial arm of the Kishore Biyani-owned Pantaloon Retail, has decided to raise money from the market through its maiden public issue.

The board of directors of Pantaloon Retail, which controls nearly 74% stake in Future Capital, today took a decision to this effect.

In addition to Pantaloon, Och-Ziff Capital, the hedge fund with USD 27 billion corpus, holds nearly 10% stake. The remaining stake is being held by co-promoter Sameer Sain and other senior employees such as Atul Kapur and Shishir Baijal.

Future Capital operates two businesses – asset management and consumer credit. The asset management business has four funds under management such as Kshitij (USD 850million domestic real estate fund); Horizon (USD 350million international real estate fund); IndiVision (USD 400 million non-leveraged private equity fund); and a new Hospitality fund. (USD 350million). The consumer credit business includes a personal lending business.

Stock market sources said Future Capital would offer a mix of new shares and some shares from the existing shareholders through the public issue. It means the shareholders will be able to monetise a part of their holding and the company will, simultaneously, get funds for its future expansion.

UBS Investment has recently valued the business of Future Capital to be around Rs 3,000 crore. So Pantaloon’s stake is valued at Rs 2,200 crore or Rs 140 a share.

Sources said the exact size of the issue was not decided yet. It would take at least six months for the company to launch the issue, they added, reports Business Standard.

Central Bank to list on August 21

Public sector institution, the Central Bank of India will list on the bourses with 40,41,41,460 shares on August 21, 2007. The offer price has been fixed at Rs 102 per share.

The stock will start trading in F&O market with a lot size of 2000 shares.

The company had come out with an initial public offering (IPO) of 80,000,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book building process and raised Rs 816 crore from that issue at Rs 102, higher end of the band. The issue was subscribed over 62.07 times.

After the issue, the shareholding of the Government of India in the bank has come down to 80.20%.

The issue proceeds will be utilized to augment the capital base of the bank to meet the future capital requirements arising out of the implementation of the Basel II standards and the growth in assets, primarily the loan and investment portfolio due to the growth of the Indian economy and for other general corporate purposes.

Nitesh group may go public soon

He took a small step to achieve a bigger dream. Nitesh Shetty is a 30 year old former star tennis player, who gave it up to become one of many of India's young entrepreneurs.

He started a billboard company at 20 and called it Serve and Volley/ He borrowed money Rs 12,000 from his mother to get started. Today, it's one of the biggest companies dealing with outdoor advertising. But this was not all and he set out to do different things as well.

This made him launch the Nitesh Group, which is now into real estate and is one of Bangalore's top real estate companies. As its managing director, he's well aware that daring to dream big is not just about grit and gumption but also about spotting the right opportunity at the right time.

So, in keeping with this motto, he has brought down the Ritz Carlton to India and their first hotel is going to come up in Bangalore's central business district in 24 months. They are not going to be managing it - for that they are roping in experts who know how to run a world class hotel.

But he credits this new direction he took in his life to Mrs Nalini Mohan, who gave him his first break. She allowed him to develop a piece of land that she owned. While she consulted with her husband about the land, Nitesh went ahead and hired a consultancy firm from Singapore and an archtect from Hong Kong. So, when she came back with her permission, he had his plans ready to show her and she was impressed and the rest is history.

But he did have to struggle to prove to people that he was in for the long haul despite being so young when he started out. He recalls the times when he wasn't taken seriously by the local councillor when he went to get a license for a billboard or when banks wouldn't extend him a loan because he had no knowhow or collateral to start a real estate project.

But that's in the past. Today, he's got big investors like Citi backing him, but picking prime real estate in the heart of Bangalore is his priority. He plans to concentrate on the growing needs of the real estate market, focusing on the very high-end niche.

The Group works with A-list office spaces and hotels and are currentlt developing the Ritz Carlton hotel, which is India's first in the heart of Bangalore. It's a 260 room hotel with an investment of Rs 500 crore.

What's more, the Group has moved into seven new cities and is looking at going public very soon. Managing Director, Nitesh Group, Nitesh Shetty told CNBC-TV18, "Definitely, an IPO is on our mind but we're waiting for appropriate timing and size. The real estate business has been five years now from the time it has been started. We're quite happy with the partners who have come on board with us and we have actually moved into 6-7 cities and we've moved into almost all the verticals of A grade buildings - office, malls, hotels and residences."

Along with construction, he's looking forward to integrate smoothly with infrastructure development as well. He also has plans to go into virgin markets, where he can beat the smaller players.

Going forward, he's got some vision documents ready that will ensure that he creates a world class company. A company that will be able to sail away from the competition and leave them behind - through easy and tough times - just as smoothly.

Wednesday, August 15, 2007

Indowind Energy to set up 9 mw project in Karnataka

Indowind Energy is coming out with an initial public offer of 1.25 crore shares. KV Bala, Chairman, Indowind Energy said that they are planning to set up a 9 MW project in Karnataka.

Bala added that they are also planning to close some of the financial lease facilities with some banks, acquire some assets from banks and meet the public issue expenses and working capital requirements.

IVR Prime to list on August 16

IVR Prime Urban Developers, a subsidiary of IVRCL Infrastructure and Projects, will list on August 16, 2007 with 6,41,50,000 shares on the bourses. The offer price fixed at Rs 550 per share.

The shares will also start trading in futures and options market with a lot size of 400 shares.

The company had come out with an initial public offering (IPO) of 1,41,50,000 equity shares of Rs 10 each in a price band between Rs 510 and Rs 600 per share. The issue was subscribed 5.75 times.

IVR Prime focuses on integrated townships, residential developments including affordable homes, and commercial projects such as hotels, retail malls and IT Parks.

Of the net proceeds of the issue, the company intends to utilise Rs 57.37 crore for the Jigani project in Bangalore, Rs 334.71 crore for the IT Park and a mall project at Gachibowli in Hyderabad, up to Rs 147.18 crore for repayment of loan to the parent company, up to Rs 41.96 crore for loan repayment to the Karnataka Bank and Rs 85.70 crore for payment of the cost towards acquiring development right from the parent company.

Supreme Infra IPO likely by August end

Supreme Infrastructure, engaged in road construction, highways widening and other infrastructure related activities, is likely to hit the primary market with its initial public offering by the end of August.

The company plans to come out with a public issue of 38,75,000 shares of face value Rs 10 each through 100% book building process. The company is also planning to make a pre-IPO placement of 4,00,000 shares to certain investors.

Mumbai-based Supreme Infrastructure plans to raise around Rs 21.11 crore for part financing purchase and/or upgradation of plant and machinery and Rs 17.98 crore for long term working capital requirement.

Supreme Infrastructure already has a ready mix concrete plant having capacity of 30 cubic metres of RMC per hour and plans to enhance capacity by setting up another plant. It also has a crushing plant with a permission to remove 80,000 metric tonne of building stone at Bhiwandi near Mumbai.

At present it has 10 projects under execution with almost same number of sites till March 31, 2008. Among others, the company has received a contract for western transport corridor Tumkur-Haveri NH-4 project package-3, rehabilitation and upgradation of Chitradurga section jointly with MBL Infrastructure.

The company has been awarded contracts by agencies like National Highway Authority of India, Maharashtra Metropolitan Region Development Authority, Maharashtra State Road Development Corporation, Public Works Department in the past, reports The Economic Times.

Monday, August 13, 2007

Govt plans stake sale in Oil India to state refiners

Government plans to sell 10% cent stake in Oil India Ltd (OIL) to state refiners along with the company's initial public offering in February to garner Rs 1,000 to Rs 1,500 crore.

"We have moved a note for consideration of the Cabinet for divestment of 10% government stake alongside the company's IPO," a top Petroleum Ministry official said.

OIL, the nation's second largest state-run oil explorer, plans to offer 10% stake to public in an IPO and another one per cent to its employees in February 2008.

Alongside the IPO, the government seeks to sell five per cent of its stake in OIL to Indian Oil Corp and 2.5 per cent stake each to Bharat Petroleum Corp and Hindustan Petroleum Corp.

Government currently holds 98% stake in the company and after the twin offers this shareholding will drop to 77-78%, he said, reports PTI.

Nature's Essence plans IPO

The Delhi-based herbal products manufacturing company Nature's Essence is planning an IPO to raise Rs 100 crore for expanding its operations. The Rs 30-crore company plans to set up a new manufacturing plant in Uttaranchal and also open 100 exclusive stores under its brand name. These stores would provide salon and training services.

This year Nature's Essence would be launching its range of colour cosmetics in both national and international markets. Besides, the company is also planning to supply products for private labels such as Subhiksha, Vishal Mega Mart and Marks & Spencer. The company expects to reach Rs 100-crore turnover within the next 16 months, reports The Hindu Business Line.

Take Solutions fixes issue price at Rs 730/sh

Take Solutions, an international business technology company with a focus on life sciences and supply chain management solutions, has fixed the issue price at Rs 730 per equity share i.e. the upper end of the price band, for its initial public offer (IPO) of 2,100,000 equity shares of Rs 10 each for cash decided through the 100% book building process.

The price band was between Rs 675 and Rs 730 per equity share. The issue opened for subscription on August 1, 2007, and closed on August 7, 2007. It was subscribed 59.42 times.

The equity shares are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange. The issue constitutes 17.50% of the fully diluted post issue paid-up equity capital of the company.

Take Solutions offers cost effective comprehensive business solutions backed by domain expertise, in Supply Chain Management (SCM) and Life Sciences (LS).

The sole book running lead manager to the iIssue is Edelweiss Capital Limited.

Motilal Oswal Fin Services IPO opens on Aug 20

Motilal Oswal Financial Services (MOFSL), a financial services company focused on wealth creation for all its customers such as institutional and corporate clients, HNI and retail customers, proposes to enter capital markets on August 20, 2007 with an initial public offering (IPO) of 29,82,710 equity shares of Rs 5 each for cash at a price band between Rs 725 and Rs 825 per share with 100% book building process. The issue will close for subscription on August 23, 2007.

The company is going to raise Rs 216.25 crore in lower end of the price band and Rs 246 crore at higher band.

The issue comprises a net issue to the public of 2,840,400 equity shares of Rs 5 each and a reservation of 142,310 equity shares of Rs 5 each for subscription by eligible employees at the issue price. The issue will constitute 10.50% and the net issue will constitute 10.00% of the post issue paid-up equity capital of the company.

The equity shares are proposed to be listed on the BSE and NSE. Citigroup Global Markets India Pvt Ltd is the book running lead manager and Intime Spectrum Registry is the registrar to the issue.

MOFSL is the holding company of Motilal Oswal Securities Limited (MOSL-broking business), Motilal Oswal Commodities Brokers Pvt. Ltd (MOCB-commodity business), Motilal Oswal Investment Advisors Pvt. Ltd (MOIA-investment banking business) and Motilal Oswal Venture Capital Advisors Pvt. Ltd (MOVC-venture capital advisory).

Motilal Oswal Financial Services Ltd proposes to infuse funds into MOSL and in MOCB in the form of a subscription for their equity shares, unsecured loan or any combination thereof. Such capital infusion will help strengthen their respective balance sheets and thus enable them to increase trading volumes in the equities and commodities market. MOFSL provides a financing facility to its retail broking customers. MOFSL proposes to enhance this financing facility.

Omnitech InfoSolutions to list on August 14

After receiving huge response to its initial public offer (IPO), Omnitech InfoSolutions will list on the bourses with 13139283 shares on August 13, 2007. The offer price fixed at Rs 105 per share.

The company had come out with a public issue at a price band of Rs 90 to Rs 105 per equity share of Rs 10 each and that subscribed 57.87 times.

UTI Bank was the BRLM and India Infoline is the Co-BRLM for the issue.

Omnitech InfoSolutions proposes to utilize the net proceeds of the issue to fund acquisitions and strategic investments and/or to alternatively set up new technology center; to set up overseas offices for business expansion; and to enhance existing facilities.

The company offers a wide range of IT services and products such as business availability services, business continuity services, systems integration solutions, framework solutions and products. In business availability services, it provides services such as infrastructure management, application management and software testing. In business continuity services, it provides services such as disaster recovery management and disaster recovery consulting and auditing.

Friday, August 10, 2007

Motilal Oswal set IPO price band at Rs 725-825/sh

Motilal Oswal Financial Services (MOFSL), a financial services company focused on wealth creation for all its customers such as institutional and corporate clients, HNI and retail customers, proposes to enter capital markets with an initial public offering (IPO) of 29,82,710 equity shares of Rs 5 each for cash at a price band between Rs 725 and Rs 825 per share with 100% book building process.

The company is going to raise Rs 216.25 crore in lower end of the price band and Rs 246 crore at higher band, as per its DRHP filed with Sebi.

The issue comprises a net issue to the public of 2,840,400 equity shares of Rs 5 each and a reservation of 142,310 equity shares of Rs 5 each for subscription by eligible employees at the issue price. The issue will constitute 10.50% and the net issue will constitute 10.00% of the post issue paid-up equity capital of the company.

The equity shares are proposed to be listed on the BSE and NSE. Citigroup Global Markets India Pvt Ltd is the book running lead manager and Intime Spectrum Registry is the registrar to the issue.

MOFSL is the holding company of Motilal Oswal Securities Limited (MOSL-broking business), Motilal Oswal Commodities Brokers Pvt. Ltd (MOCB-commodity business), Motilal Oswal Investment Advisors Pvt. Ltd (MOIA-investment banking business) and Motilal Oswal Venture Capital Advisors Pvt. Ltd (MOVC-venture capital advisory).

Last year private equity investors New Vernon Private Equity Limited and Bessemer Venture Partners Trust bought a 9.47% stake in the company for Rs 518.9 per share (the face value per share being Rs 5).

Motilal Oswal Financial Services Ltd proposes to infuse funds into MOSL and in MOCB in the form of a subscription for their equity shares, unsecured loan or any combination thereof. Such capital infusion will help strengthen their respective balance sheets and thus enable them to increase trading volumes in the equities and commodities market. MOFSL provides a financing facility to its retail broking customers. MOFSL proposes to enhance this financing facility.

Wednesday, August 08, 2007

Omaxe to list on August 9

Omaxe, real estate development and construction company with operations in 30 cities and 9 states in India, will list on the bourses with 17,27,50,000 shares on August 9, 2007. The issue price fixed at Rs 310 per equity share (upper end of the price band) following the successful completion of the 100% book building process for its initial public offer (IPO) of upto 17,796,520 equity shares of Rs 10 each for cash.

The stock will start trading in Futures and Options market with lot size of 650 shares.

The issue was oversubscribed around 68 times, the QIB portion was oversubscribed around 95 times; the Non-Institutional Investors portion was oversubscribed around 80 times; and the Retail Individual Investors Portion was oversubscribed around 13 times.

Omaxe is involved in residential and commercial real estate development projects ranging from integrated townships, group housing and retail and other commercial properties, hotels, information technology and bio-tech parks to special economic zones.

Omaxe had appointed DSP Merrill Lynch Limited, Citigroup Global Markets India Private Limited and UBS Securities India Private Limited as the global co-ordinators and joint book running lead managers. JM Financial Consultants Private Limited is the book running lead manager and ICICI Securities Primary Dealership Limited is the co-book running lead manager.

Godrej Consumer Products plans FPO to raise Rs 400cr

Godrej Consumer Products (GCPL), part of the diversified Godrej group, is looking at various options including a possible follow-on public offering (FPO) to raise up to Rs 400 crore.

“We are exploring all possible options to raise the funds. These include a follow-on public offering, rights issue, qualified institutional placement, foreign currency convertible bonds or even a rights issue, GCPL executive director and president Hoshedar K Press said.

The company has spoken to many merchant bankers and should finalise one of them soon. Once that is done, we will decide on the further course of action along with the bankers, he added. The shareholders of GCPL, at the AGM on August 3, had approved the company’s plans to raise up to Rs 400 crore through various resources.

On the timing of the fund raising, Mr Press said that the whole process should be completed by the end of this year. “The fund raising should be completed by the year-end and will be utilised for clearing debts as well as funding further acquisitions, he said, adding that the company could also look at more than one option to raise these funds.

Godrej has debt of around Rs 130 crore on its books accrued as a result of acquisitions and capital expenditure plans.

GCPL shares fell marginally to Rs 135.80 on the BSE. It is the largest marketer of toilet soaps in the country, with leading brands such as Cinthol, Fairglow and Godrej No 1. The company has been on the look-out for acquisitions in the Indian as well as international markets to grow its product portfolio.

In September last year, the company had acquired the South African business of Rapidol, UK as well as its subsidiary Rapidol International, giving the company ownership of brands like Inecto and Soflene. It also acquired UK-based Keyline Brands in October 2005 in a deal valued close to Rs 130 crore, reports The Economic Times.

Floriana Group mulls IPO to part finance expansion plans

The Floriana Group will hit the markets this year to raise resources to part finance its expansion plans worth Rs 5,000 crore, including expanding its marble processing business of Rs 800 crore.

"We plan to float an initial public offering (IPO) by December this year and have begun talks with lead bankers on fixing the price band," Director of Group company SVIL Mines Limited Rajan Kaicker said.

He said after the bankers finalised the nitty-gritty, the company would file the Draft Red Herring Prospectus with the Securities Exchange Board of India (SEBI).

Kaicker said the Group was currently focusing on captialising the flooring industry by introducing the Floriana marbles and in collaboration with GEO of Italy has acquired the licence to use the patented marble processing technology for which it has invested over Rs 650 crore.

"Within the next two years, we envisage an investment of about Rs 800 crore in the business. The total market size is about Rs 4,900 crore and it has been growing by 10 per cent year-on-year basis," he said.

The Director said the Group would open about 312 outlets after October 4 to sell its marbles designed at the company's Katni plant in Madyhya Pradesh.

"Through our retail outlets, we would sell quality and designed marbles at matching prices. We would give consumers the real value for their money," he said.

Kaicker said the Group would make forays into thermal and solar power sectors and is firming up plans to set up a coal-fired power plant in Orissa, reports The Economic Times.

Saturday, August 04, 2007

Puravankara reprices issue to Rs 400-450, closes on Aug 8

Weak market situation has forced Puravankara Projects to reprice their issue to Rs 400-450 from earlier price band of Rs 500-525 per share. The issue was supposed to close today, August 3, 2007 but now it will close on August 8.

The issue is open for subscription with a public issue of 21,467,610 equity shares of Rs 5 each through a 100 per cent book building process. The issue will constitute 10.05 per cent of the fully diluted post-issue paid-up capital of the company.

Wednesday, August 01, 2007

KPR Mill IPO opens on Aug 2, price band at Rs 225-265/sh

KPR Mill, a vertically integrated apparel company with operations located at Coimbatore, Sathyamangalam and Tirupur in Tamil Nadu, proposes to enter the capital markets on August 2, 2007 with a public issue of 5,912,100 equity shares of Rs 10 each through a 100% book-building process.

The price band has been fixed at Rs 225 to Rs 265 per equity share of Rs 10 each and the issue closes on August 7, 2007. The issue would constitute 15.69% of the fully diluted post issue paid-up capital of the company.

The book running lead manager to the issue is Kotak Mahindra Capital Company Ltd. and Co-Book Running Lead Manager is ICICI Securities Ltd.

The issue is being made through a 100% book building process wherein at least 60% of the issue shall be allocated on a proportionate basis to qualified institutional buyers (QIBs), out of which 5% shall be available for allocation to mutual funds only. Further not less than 10% of the issue shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 30% 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 company proposes to utilize the net proceeds of the issue to fund plans for expansion of the existing garment facility at Arasur, near Coimbatore; setting up a design studio at Arasur; construction of an additional hostel facility at Arasur; expansion of the processing facility at State Industries Promotion Corporation of Tamil Nadu Limited ("SIPCOT"), Perundurai; investment in a new knitting facility at Arasur; addition of balancing equipments for existing spinning facility at Sathyamangalam and general corporate purposes.

KPR Mill’s operations and facilities enable it to manufacture readymade knitted apparel by spanning various aspects of the apparel production chain, from producing carded and combed cotton yarn and knitted fabric to managing the design, delivery and quality assurance process involved in producing readymade knitted apparel.

During the year ended March 31, 2007, the company exported 99.86% of its readymade knitted apparel directly to international clients, including among others, Carrefour, Penneys (Primark), Pom-tex, C&A, Ethel Austin, Kiabi, Bandos AG, Mother Care, Innovations Club, and Grouppo Industry Moda SPA, and it has more than 1,000 regular domestic clients for yarn and fabric.

The company produced 10.16 million and 11.55 million pieces of readymade knitted apparel during the year ended March 31, 2006 and 2007, respectively. It has a cumulative capacity of 128,064 spindles in four mills, and it manufactured approximately 26,232 and 28,346 metric tons of yarn during the year ended March 31, 2006 and 2007, respectively, which represented capacity utilization of approximately 98% and 98.2% during such periods. It produced 6,147 and 6,734 metric tons of fabric during the same period respectively, which represented capacity utilization of approximately 90% and 80% during such periods.