Indian IPO

All details about Hot Indian Primary Market.

Saturday, September 29, 2007

Pantaloon arm files DRHP with Sebi for IPO

Future Capital Holdings (FCH), the financial arm of the Kishore Biyani-owned Pantaloon Retail, today filed the draft red herring prospectus with Securities and Exchange Board of India.

The company plans to issue 6.42 million equity shares of Rs 10 each and is looking at mopping up anywhere between Rs 300 crore and Rs 350 crore. The book built issue will offer 10.16 per cent equity of the company. Kotak, Enam, J M Financial and UBS are the book running lead managers to the issue.

The company, incorporated in 2005, is headed by Sameer Sain, former managing director at Goldman Sachs International.

Pantaloon holds 74 per cent stake in the company, while the hedge fund Och Ziff Capital holds 10 per cent. The remaining stake is held by the co-promoter Sameer Sain and other senior employees such as Atul Kapur and Shishir Baijal.

The company is planning to use the proceeds to fund the expansion of Future Money, the consumer credit business of the company.

FCH’s three primary lines of business are investment advisory and asset management, retail financial services and research.

The asset management business has four funds under management, including Kshitij ($850 million domestic real estate fund); Horizon (USD 350 million international real estate fund); IndiVision (USD 400 million non-leveraged private equity fund); and a new Hospitality fund (USD 350 million).

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

Gammon unit files draft IPO document with Sebi

Civil engineering firm Gammon India on Friday said its subsidiary, Gammon Infrastructure Projects, has submitted the draft document for its initial public offering with the Securities and Exchange Board of India.

The company is offering 16.55 million shares to the public, including its employees, Gammon said in a statement, reports The Economic Times.

Reliance Power to raise $ 2.5-3 bn via IPO

Reliance Energy to file DRHP for Reliance Power issue in next few days, according to sources. Kotak Mahindra Capital and JM Financial are lead managers to the issue. Reliance Power is likely to raise around USD 2.5-3 billion.

Management declined to comment on speculation. Management says, "Not the company's policy to comment on rumours and speculation".

Reliance Power is a 51% subsidiary of Reliance Energy. This company will execute Sasan Power Project, which Reliance Energy got recently from government.

Reliance Power is looking at projects with an aggregate capacity of 16 GW and its EPC business outstanding order book stands at Rs 5,000 crore.

Ansal API plans to raise Rs 1000-1200 cr via FPO

Ansal Properties and Infrastructure plans to come out with its follow-on public offer to raise Rs 1000 crore-Rs 1200 crore in the next six months, its chairman said Friday. 'The offer should happen in the next six months and we will be using the proceeds to fund existing and upcoming projects,'' Sushil Ansal told reporters on the sidelines of an industry event.

He said the details of the offer are still being worked out and that the merchant bankers are yet to be shortlisted.

Ansal API has formed a joint venture with Malaysia based infrastructure company UEM Builders. The JV between Ansal API & UEM Builders is to be 60:40 and to develop infrastructure within Ansal API townships across India, with initial capital of Rs 50 crore.

Ybrant Tech files DRHP with Sebi

Ybrant Technologies has filed its draft red herring prospectus (DRHP) with SEBI for entering the capital market with its initial public offering (IPO) of 3,500,000 equity shares of Rs 10 each. The issue will be conducted through 100% book building process and would constitute 15.85% of the fully diluted post-issue paid-up capital of the company.

Ybrant Technologies offers comprehensive end-to-end digital marketing services to direct marketers, brand advertisers and marketing agencies across the world. Ybrant Technologies along with its subsidiaries -- International Expressions Inc, Frontier Data Management Inc and Pennyweb Inc, focuses on harnessing the marketing power of the digital media through delivering technologies, network and insights that drive measurable and accountable results to its clients.

At least 60% of the issue shall be allotted 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 up to 10% of the issue shall be available for allocation on a proportionate basis to non institutional bidders and up to 30% of the issue shall be available for allocation on a proportionate basis to retail individual bidders.

The company is considering a pre-Issue placement of up to 1,200,000 equity shares. The issue size offered to the public would be reduced to the extent of such pre-Issue placement.

The book running lead managers to the issue are YES Bank and Enam Securities Private Limited and the co-book running lead manager to the issue is Saffron Capital Advisors Private Limited. The shares are proposed to be listed on the Bombay Stock Exchange and National Stock Exchange.

Thursday, September 27, 2007

Neel Metal Products files IPO papers with SEBI

Neel Metal Products, a part of the JBM group of companies, an integrated steel processing and automotive products manufacturer, has filed its draft red herring prospectus (DRHP) with the Securities & Exchange Board of India (SEBI) to enter the capital market with its initial public offering (IPO) of equity shares.

The company proposes to issue 5,251,000 equity shares of Rs 10 each for cash, at a price to be decided through a 100% book building process. The equity shares of the company, offered through this IPO, are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.

The issue comprises a net issue to public of 4,988,450 equity shares and a reservation of up to 262,550 equity shares for eligible employees. The issue will constitute 35% of the fully diluted post-issue paid-up equity share capital of the company. The net issue will constitute 33.25% of the fully diluted post-issue equity share capital of the company.

Of the net issue, up to 50% of the issue shall be allocated on a proportionate basis to qualified institutional buyers (QIBs) (including 5% of the QIB portion that would be specifically reserved for mutual funds for allocation on a proportionate basis).

Further, not less than 15% of the issue shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 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 sole book running lead manager to the issue is ICICI Securities Limited.

Neel Metal Products is part of the JBM group of companies, which is a prominent player in the automotive components manufacturing industry in India. The company’s integrated facilities enable it to manufacture a wide spectrum of automotive components, ranging from production of steel blanks, steel tubes, frames for scooters, wheel rims, stamped components and complete fabricated and painted body for three-wheelers. Additionally, the Company designs and manufactures customized equipment such as jigs, fixtures and special purpose welding machines, required for weld-assembly of vehicles, which the Company supplies to original equipment manufacturers (“OEMs”) as well as OEM vendors.

The company’s manufacturing facilities are located at Gurgaon, Haridwar and Pantnagar, each of which is in close proximity to the facilities of the company’s major customers. The facility at Gurgaon contains the Steel Service Center (SSC), tools manufacturing and component manufacturing facilities and has an installed capacity of 170,481.0 MT as of March 31, 2007. The company manufactures the complete welded and painted body for three-wheelers for M&M from the facility at Haridwar.

It had an installed capacity of 60,000 nos. as of March 31, 2007. The Company also manufactures steel tubes for the automotive industry through its facility at Pantnagar. This facility at Pantnagar has commenced production in the first quarter of Fiscal 2008.

Ramsarup Lohh to enter capital mkt with 3 cr share issue

Ramsarup Lohh Udyog, part of Kolkata-based Ramsarup Group, has filed draft red herring prospectus with the Securities & Exchange Board of India for its initial public offering.

The company proposes to enter the capital market with public issue of 3 crore equity shares of Rs 10 each for cash at a premium to be decided later.

The net issue of 2.70 crore shares to the public will constitute 39.17 per cent of the fully diluted post issue paid up capital.

The group company sources steel billets for manufacture of steel wires and construction of steel products from Steel Authority of India, Tata Steel and others.

In order to be self sufficient, it has embarked upon an initiative to achieve complete backward integration by setting up an integrated steel plant at Kharagpur, West Bengal, to produce steel billets and wire rods under aegis of Ramsarup Lohh Udyog.

The net proceeds the issue would be used to finance the integrated steel plant at a cost estimated to be Rs 745.44 crore.

Microsec Capital and Religare Securities are the book running lead managers to the issue, reports The Economic Times.

Emaar MGF files DRHP with Sebi for IPO

Emaar MGF Land, a joint venture between one of the world’s leading real estate companies Emaar Properties PJSC of Dubai, and MGF Development of India, has filed its draft red herring prospectus (DRHP) with the Securities & Exchange Board of India (SEBI) to enter the capital market with its initial public offering (IPO) of equity shares.

The Company is proposing a public issue of approximately 117 million equity shares of Rs 10 each for cash at a price to be determined through a 100% book building issue.

The IPO size is likely to be about USD 1 billion. Emaar intends to raise Rs 4,000-4,800 crore via IPO.

The global co-ordinators and book running lead manager to the Issue are Enam Securities Private Limited and DSP Merill Lynch Limited. The Book Lead Managers are Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited, HSBC Securities and Capital Markets (India) Private Limited, J.P. Morgan India Private Limited and Goldman Sachs (India) Securities Private Limited.

The company is engaged in the development of properties in the residential, commercial, retail and hospitality sectors. In addition, it has taken steps to develop property in the healthcare, education and infrastructure sectors. Its operations span various aspects of real estate development such as land identification and acquisition; project planning, designing, marketing and execution.

The company has plans to construct master planned developments including residential, retail and hospitality properties to provide fully integrated self contained communities and stand alone development. Some of the current projects under implementation include development of Palm Springs, Palm Drive, Gurgaon, Mohali Hills at Mohali, common wealth games village, Delhi and boulder hills, Hyderabad.

The equity shares of the company, offered through this IPO, are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.

Tuesday, September 25, 2007

Maytas Infra IPO opens on Sept 27, price band Rs 320-370/sh

Maytas Infra, a construction and infrastructure development company, is entering the capital market with an initial public offering of 88.5 lakh equity shares of Rs 10 each for cash at a price to be decided through a 100 per cent book building process.

The issue will open for subscription on September 27 and will close on October 4. The company has fixed the price band between Rs 320 and Rs 370 per equity share.

Expansion plans

The company plans to use the funds to purchase construction equipment, invest in companies, building an elevated road in Bangalore, a coal based electricity generation plant in East Orissa and a coal washery in Chhattisgarh.

According to the company, Maytas has undertaken projects in 12 States, including those in irrigation, roads and bridges and other infrastructure sectors.

Diversified portfolio

The company has diversified its portfolio of construction projects and is also undertaking civil construction projects in power, industrial structures, oil and gas infrastructure and railway sectors.

Out of the total equity, 60 per cent of the issue will be allocated on a proportional basis to qualified institutional buyer (QIB), out of which five per cent will be available for allocation to mutual funds and not less than ten per cent of the issue will be available to non-institutional bidders and not less than 30 per cent will be allocated to retail individual bidders, reports The Hindu Business Line.

Sunday, September 23, 2007

UTI to go public

UTI Asset Management Company has finally received in-principle approval from the government and its board to go public. Shares will be listed by end of this financial year.

Four promoters, Life Insurance Corporation of India, Punjab National Bank, Bank of Baroda and State Bank of India will dilute equal holdings amounting to 49 percent in the company. They now hold 100 percent in it.

Early this year, the company had revealed plans to raise public money.

UK Sinha, Chairman & MD, UTI AMC said, “It is a combination of both offer for sale by the existing shareholders but the company is also raising some fresh money &the idea for the fresh money we are going for a massive brand expansion, we are going for a massive technology upgradation, these things require money.”

Sources say dilution of sponsors' stake will help them unlock value and gain from capital invested in 2005 when uti was restructured. It also plans to raise capital for its private equity funds, so, it's appointing merchant bankers. After the listing, it will grant stock options to its staff.

While the company will sell 49 percent to investors, it will retain its PSU status with sponsors controlling 51 percent. This will make it one of the select fund managers to manage the government's pension scheme and the national investment fund.

Thursday, September 20, 2007

eClerx plans to raise Rs 100 cr through IPO

eClerx, a Mumbai-based knowledge process outsourcing (KPO) firm, is planning to tap the capital market with an initial public offering (IPO) of around Rs 100 crore, thus becoming the first Indian KPO player to do so.

Till date, only IT services firms and a few business process outsourcing (BPO) companies have taken the equity route. eClerx, which has already filed its draft red herring prospectus with the Securities and Exchange Board of India (Sebi), expects to hit the bourses by the year-end.

British Virgin Island-based Burwood Ventures holds around 21 per cent in this company which was founded in 2000. The company declined to divulge further details.

According to sources, eClerx plans to use the funds for future acquisitions, setting up additional facilities, infrastructure investments and to expand the sales team. The company had an estimated turnover of Rs 86 crore at the end of March 31, 2007. It has around 1,000 employees in three centres in Mumbai. A fourth centre occupying 75,000 sq ft is coming up in Pune SEZ. This will have a capacity to accommodate 900 people. The company is also looking at opening additional centres in Chennai, Pune and the National Capital Region.

As a part of its growth strategy, the company will continue to scout for acquisitions and has earmarked about Rs 22 crore for acquisitions. It recently acquired the UK-based Igentica Group, which gave the company a client base in the travel and hospitality verticals.

“The company is looking for acquisitions in the US and the UK. Since eClerx has close to 80 per cent of its business coming from the US, it would like to look at acquisitions that can allow better access to market,” the source added.

Currently, the KPO market in India is pegged at USD 70-90 million, reports Business Standard.

Wednesday, September 19, 2007

UTI AMC's IPO gets go-ahead

The first initial public offering (IPO) by a fund house in the country is on course with the government and the board of UTI Asset Management Company approving the proposal to list the shares of the firm.

The board of UTI AMC, which met here on Tuesday, approved a proposal to go in for an offer for sale and a fresh issue of shares. The offer for sale will lead to a dilution of 49% of the equity holdings of the four sponsors of the AMC — State Bank of India, Punjab National Bank, Life Insurance Corporation of India and Bank of Baroda which jointly control 100% of the equity. Given the current valuations, the brand strength and profitability of the AMC, these sponsors are expected to gain considerably from the listing.

The UTI AMC also approved a proposal to grant stock options to its employees besides appointing a consultant for kicking off this process. The issue of fresh shares by the AMC is aimed at meeting growing business needs, according to industry sources close to the development.

The listing of the AMC’s shares would be completed before March 31, 2008, sources added. These proposals were also endorsed on Tuesday at the AGM of the asset management firm. In a post-listing scenario, the four sponsors will control 51% of the equity of the AMC, thus making it eligible to act as a pension fund manager for the new pension scheme and also to handle the National Investment Fund (NIF).

UTI AMC was formed in 2003 after the operations of the first mutual fund in the country — UTI — was split in 2003. The four state-owned sponsors control 25% each of the Rs 10 crore paid-up capital of the asset management firm. The AMC has assets under management of close to Rs 40,000 crore and is now third in the mutual fund sweepstakes behind Reliance Mutual Fund and Prudential AMC.

But in terms of profitability, it has outscored the others, with last year’s net profit touching close to Rs 150 crore. In 2003, the government transferred the net asset value- based schemes to UTI AMC as a part of a restructuring of the mutual fund in the wake of a crisis. The four sponsors paid close to Rs 1,200 crore to the government after a valuation was done in 2005. The listing will provide them with an opportunity to unlock value by selling down their original holding.

Recent valuations have been encouraging such as the one featuring the buy out of Standard Chartered Bank’s AMC business by UBS and also Canbank’s mutual fund business. UTI AMC has the advantage of allied business such as portfolio management (a segment which has grown five fold from Rs 200 crore to Rs 1000 crore in 18 months) besides offshore funds controlling $ 250 million of assets and a venture fund which handles $ 200 million, reports The Economic Times.

Tuesday, September 18, 2007

Saamya Bio to raise Rs 15cr via IPO, opens on Sept 25

Saamya Biotech is coming out with an initial public offering (IPO) of 15 lakh shares of Rs 10 each to raise around Rs 15 crore. The issue will open for subscription on September 25 and close on September 28, 2007.

The company has set up in August 2002 as 100% EOU and deals in various chemicals and pharmaceuticals and also deals in various drugs and intermediaries.

As of now, it has no financials to report, so the management said that they will have revenues from FY08 onwards.

It has total assets of Rs 9.19 crore and networth of Rs 8.66 crore.

Money raised from the issue intends to use for setting up manufacturing facilities including R&D, pilot facility and to meet margin money for working capital.

Brigade Enterprises files DRHP with SEBI

Brigade Enterprises, a Bangalore-based real estate company focusing on the development of residential, commercial and hospitality properties, has filed its draft red herring prospectus (DRHP) with the Securities & Exchange Board of India to enter the capital market with its initial public offering (IPO) of its equity shares.

The company proposes to issue 16,624,720 equity shares of Rs 10 each for cash, at a price to be decided through the 100% book building process.

The issue comprises a net issue to the public of 16,524,720 equity shares and a reservation of up to 100,000 equity shares for eligible employees. There will also be a green shoe option of up to 2,493,708 equity shares.

The equity shares offered through this issue are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange of India.

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

The issue will constitute 16.87% of the fully diluted post issue paid-up capital of the Company assuming that the Green Shoe Option is exercised in full and 15.00% assuming that the Green Shoe Option is not exercised.

The primary objective of the issue is to fuel the future growth plans of the company, including by way of acquisition of land, meeting construction and development costs in relation to the company’s ongoing and forthcoming real estate projects and general corporate purposes.

The global co-ordinators and book running lead managers to the issue are J P Morgan India Private Limited and Enam Securities Private Limited and the co-book running lead manager is ICICI Securities Limited.

Supreme Infra IPO opens on Sep 21, price band Rs 95-108/sh

Supreme Infrastructure is coming out with an initial public offering (IPO) of 34.75 lakh equity shares at a price band of Rs 95-108 per share with 100% book building process.

The company is going to raise at around Rs 33.01-37.53 crore from this issue. The issue will open on September 21 and close on September 26, 2007.

The objects of the issue is to use funds to purchase & upgrade machinery and to meet long term working capital requirement.

Supreme Infrastructure is engaged in road construction, other infrastructure activities and has 10 projects under execution till March 31, 2008.

For H1FY07, it has posted revenues of Rs 21.06 crore and net profit at Rs 3.29 crore.

Karvy Investor Services Limited is the book running lead manager and Bigshare Services Pvt Ltd is the registrar to the issue.

Monday, September 17, 2007

Future Group to raise Rs 2,000 cr from capital market

A Future Group company promoted by retail czar Kishore Biyani will hit the capital market in the next 3-4 months to raise Rs 2,000 crore in what would be the group's second public offer after Pantaloons India.

"We will raise Rs 2000 crore from a proposed IPO by one of our group company," Kishore Biyani CEO and MD of Future group said on the sidelines of an interactive session with Young Leaders Forum members.

Biyani, however, declined to name the company that would hit the capital market over the next three to four months.

"It is a new company and no one knows about it. You guess," was Biyani's reply when asked to name the group company.

Among the possible ventures which was expected to hit the market was logistics.

The group plans to invest in a big way in logistics business and reportedly raise USD 500 million for the same. Logistics business would provide the group to stay competitive from the new large players in retail.

Biyani, speaking about his retail expansion plan, said that the company plans to expand its small retail format targeted at urban poors.

"I want to increase the retail outlets for urban poor," Biyani said who has stores of all consumer category.

The group has several retail formats including the garment brand Pantaloons, supermarkets Big Bazaar, specialty stores Central and Home Town and online market place Future Bazaar.

He also said he would launch the Central brand in Kolkata shortly and location has already been identified for the store.

Friday, September 14, 2007

Power Grid IPO gets record Rs 1,90,000-cr bids

In the biggest-ever response to a public stock offering, the state-owned Power Grid Corporation of India (PGCIL ) has received subscription of Rs 1,90,000 crore, a slice of which came from provident and retirement funds — investors who rarely put money into equity. The company will raise around Rs 2,985 crore through the IPO, which has been oversubscribed 65 times. Investors were offered a price band of Rs 44 to 52 for building the book.

Some of the retirement funds that have put in subscriptions are employee funds of Canara Bank, Oriental Bank and several state electricity board funds.

While PFs are still awaiting the labour ministry’s approval to invest in stocks, bank provident funds, which are not directly under the ministry, can invest in equity. However, other retirements funds like supperannuation (SA) and gratuity funds of all organisations are free to invest in stocks within the permissible limit of 5% of fresh inflow.

Power Grid handles the transmission of as much as 45% of the power generated in India, making it the largest player in the sector.

The lead managers to the IPO are Kotak Mahindra Capital, Citigroup and Enam Securities. “The quality of paper coming out of PSUs is getting more investors . This augurs well for the government in its selective disinvestment programme and from future IPOs by PSUs,” said Kotak Securities vice-president (research) Ketan Karani.

PGCIL received bids for 3,700.54 crore shares against 57.39 crore shares on offer. The QIB portion of the issue alone is said to have been subscribed almost 115 times, which works out to Rs 1.64 lakh crore. Of this, sources said that 41% was garnered by Enam Securities, 30% by Citigroup and 28-odd % by Kotak Mahindra Capital. Retail is said to have been subscribed over five times while the HNI portion was subscribed almost 41 times. Even the employees’ quota of the offering has been subscribed over 2 times.

“This goes to reiterate the investor confidence in the Indian power sector story,” said Enam Securities head of broking Dharmesh Mehta.

Most brokerages in their reports have recommended clients to subscribe to the issue. They have underscored factors like high revenue visibility, significant ramp up in transmission capacity, superior design and engineering capabilities and low operational risks, among others. Incidentally, some of the brokerages have advised clients to subscribe at the higher end of the price band.

“With an EPS of Rs 2.9 for FY07, it is priced at a PE of 17.9 times on the higher end of the price band and 15.2 times at the lower end of the price band,” said the ASK Securities report. “We recommend investors subscribe at the higher end of the band (Rs 52),” it said.

India Infoline has advised investors to subscribe with a one-year horizon. “The government’s plans to increase capacity on the generation side will definitely trigger a huge demand for transmission. Coupled with this, PGCIL’s Rs 12,700-crore capacity addition plans over the next couple of years provide visibility for revenues going forward,” it said.

Khadim plans IPO of 55 lakh shares

Khadim India, the footwear maker that has lately ventured into organised retailing, is planning an IPO.

The company has lined up a public issue of 55 lakh equity shares, of which the net issue to the public will be 53 lakh shares, accounting for 30.05 per cent of the fully-diluted post-issue capital.

The company plans to raise around Rs 100 crore for setting up exclusive foot wear retail stores, lifestyle retail stores, central distribution centre and improve the IT infrastructure of the company.

Khadim India is a footwear maker with 260 retail outlets across 22 states. The company forayed into value-lifestyle retailing, through its brands Khadim's Khazana. It has two more lifestyle retail stores are under the name Khadim's Egaro. These stores offer garments, footwear, jewellery, gold and groceries, among others things.

Microsec Capital has been mandated as the book running lead manager.

Khadim India reported a net profit of Rs 2.9 crore in 2006-07 (Apr-Mar) against Rs 2.7 crore in 2005-06. Net income rose at Rs 162.4 crore from Rs 134.5 crore year ago.

Cords Cable plans to raise Rs 60 cr via IPO, files DRHP

Cords Cable plans to raise Rs 60 cr via IPO, files DRHP

CCCL IPO opens on Sept 18, price band at Rs 460-510/sh

Consolidated Construction Consortium (CCCL), a provider of integrated turn-key construction services in the industrial, commercial, infrastructure and residential sectors of the construction industry, will enter the capital market with an initial public offer (IPO) of 37,00,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book building process.

The issue will open for subscription on September 18, 2007, and will close on September 21, 2007. The company has fixed the price band between Rs 460 and Rs 510 per equity share.

The company will be raised Rs 170.20 crore at lower end of price band and Rs 188.70 crore at higher end.

The equity shares are proposed to be listed on the National Stock Exchange of India and the Bombay Stock Exchange. The issue would constitute 10.01% of the post-issue paid up capital of the company. This issue has been assigned IPO grade 3 by ICRA.

Of the total equity float, at least 60% 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. 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.

If at least 60% of the Issue cannot be allocated to QIBs, then the entire application money will be refunded forthwith. Further, up to 10% of the issue will be available for allocation on a proportionate basis to non-institutional bidders and up to 30% 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 objects of the issue are to finance the acquisition of construction infrastructure, investment in subsidiaries, expenditures towards skill and management development centre, repayment of loans and expenditure for general corporate purposes.

The total value of its order book as on July 31, 2007, is Rs 20,495.68 million. These projects include industrial structures, IT parks, commercial building, airport terminal buildings, hotel, hospitals and educational institutions

The book running lead managers to the issue are Enam Securities Private Limited and Kotak Mahindra Capital Company Limited while the co-book running lead manager is Spark Capital Advisors (India) Private Limited. Karvy Computershare Pvt Ltd is the registrar to the issue.

Friday, September 07, 2007

Future Group's IPO in next few months: Kishore Biyani

Kishore Biyani has said that the Future Cap IPO has been planned in the next few months. Future Group's credit business is set to touch USD1 billion by 2010 Biyani added.

Indowind IPO hit by QIBs withdrawal

Small-sized initial public offering (IPO) has fallen prey to uncertain market conditions and overpricing. Indowind Energy is the latest victim of last minute withdrawal of large-sized bids by qualified institutional bidders (QIBs).

The IPO had attracted a bidding of about 1.3 times just before the offer closed on August 24. But, a sudden bout of withdrawals resulted in a fall in subscription to below 90% as the bidding was coming to a close, which raised concerns, particularly among retail investors.

Merchant bankers believe small investors are being misled by the initial ‘positive’ response from QIBs, who can spoil the equation if they opt to withdraw.

Sources said on the very first day around 63 lakh shares of Indowind were bid on behalf of 2-3 FIIs, leading to a 100% subscription of the QIB portion. Another lot of 49 lakh shares was bid by a few other institutional investors on the same day.

However, the application for the 63 lakh shares was withdrawn just before the closing of the issue, resulting in a fall in the QIB subscription. This prompted retail investors to also withdraw their applications before the allotment was finalised.

On the poor response to the IPO, a merchant banker said, the pricing of Indowind was slightly aggressive and the market conditions were also uncertain at the time of the issue. Despite a firm Sensex during the bidding period, investors remained unconvinced about the recovery and remained cautious, he said.

Indowind offered a total of 1.25 crore shares of Rs 10 in the price band of Rs 55-65 per share. UTI Securities was the book-running lead manager for the issue, while Canara Bank was the co-book running lead manager, reports The Economic Times.

DLF plans to spin off DT Cinema to raise fund via IPO

India’s largest listed real estate developer, DLF, plans to spin off its multiplex unit, DT Cinemas, into a separate company that will raise money through an initial public offering (IPO) in the next two years after adding more screens.

DT Cinemas, fully owned by DLF, plans to invest Rs 1,500 crore over two years to take its total number of screens to 500 in 100 multiplexes from seven in two currently. It plans to expand into cities such as Mumbai, Hyderabad, Bangalore, Chennai, Pune and Goa.

“We are seriously thinking of raising funds for expanding DT Cinemas in the next two years,” Kajal Aijaz, chief executive officer of DT Cinemas, said. “Our idea is to increase the financial valuation of the company (in the first place) by building more multiplexes and then take the IPO process from there,” she added, but declined to say what percentage of its stake DLF plans to dilute and how much the company plans to raise.

India, with its well-known domestic movie-making industry, Bollywood, is among the top movie-going nations. Last year, the country’s movie makers produced more than 1,000 films. It has more than 12,000 stand-alone cinema halls. Of late, it has also seen a growing number of organized multiplex operators, some of which, including PVR Ltd, are listed on the stock exchanges.

Over the past decade, cinemas have transformed from disjointed no-frills single movie halls into multiplexes. Revenue at cinemas is expected to swell to Rs 10,200 crore in the next three years from Rs 6,750 crore, according to a 2006 report by audit and consulting firm PricewaterhouseCoopers.

DLF plans to develop more than 130 malls over two years, with DT Cinemas in most of them. It plans to add 40 screens in the current fiscal. It is also in talks with leading international multiplex chains for a strategic tie-up.

“We are looking at entering into a joint venture with an international multiplex chain. It makes sense for us to have an international partner,” Aijaz said. DT Cinemas is also looking at acquiring domestic multiplex chains to grow its business faster. “Acquiring a multiplex chain is the best way to grow fast. We are talking to some chains,” she said.

The company will also soon launch a new format multiplex called DT Premier, which will be a premium multiplex theatre. The company is developing two such multiplexes in South Delhi.

“These will be five-star multiplexes with all the facilities of a five-star hotel,” Aijaz said, reports Livemint.com.

Koutons sets IPO price band at Rs 370-415, opens on Sept 18

Source : Moneycontrol.com

Apparel maker Koutons Retail India had priced its initial public offer in the band of Rs 370-415 a share. Public offer opens on September 18 and closes on September 21, 2007. The offer will constitute 11.54% of the post-issue capital.

Koutons plans to use the money to open retail outlets and set up a manufacturing unit.

Thursday, September 06, 2007

Punjab & Sind Bank IPO likely next fiscal

State-owned Punjab and Sind Bank (PSB) may come up with an initial public offering (IPO) sometime next fiscal on the back of improved current year earnings and a planned capital restructuring that is awaiting Government nod, its Chairman and Managing Director, Mr R.P. Singh, has said.

“We have covered a lot of ground in the last two years (with respect to net profits). In 2007-08, our net profit will be significantly better than last fiscal’s. This fiscal’s earnings performance on a restructured equity capital would boost the book value of shares and help the bank command good premium from investors in the IPO,” Mr Singh said.

PSB reported a net profit of Rs 218 crore and Rs 108 crore in 2006-07 and 2005-06 respectively.

Restructure proposal

A capital restructuring proposal to convert a portion of the equity capital into perpetual preference shares is before the Finance Ministry. PSB had a paid-up capital of Rs 743.06 crore as on March 31, 2007.

Mr Singh made it clear that the bank was comfortably placed on the capital front for meeting its growth needs for the current fiscal. “If at all we need capital, it will be for future growth and not for this year. It is for the future that we are looking at an IPO,” he said, reports The Hindu Business Line.

Magnum Ventures fixes IPO offer price at Rs 30/sh

Magnum Ventures, an ISO 9001:2000 certified company with interests in the paper and hospitality business, has fixed the offer price at Rs 30 per equity share at higher end of band of Rs 27-30 for its initial public offer (IPO) of upto 1,76,40,750 equity shares of Rs 10 each for cash at a price decided through a 100% book building process.

The issue closed on August 30, 2007 and it was subscribed 2.95 times. The IPO received bids for 5.19 crore shares, which includes bids for 1.74 crore share at the cut off price. The qualified institutional bidders (QIBs) portion was subscribed around 2.34 times; the non-institutional investors portion was subscribed around 3.9 times while the retail investors portion was subscribed around 3.39 times (Source: National Stock Exchange).

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

Magnum Ventures is engaged in the business of trading and manufacturing of paper for more than 25 years. The existing manufacturing activities cover writing and printing paper; and duplex boards with an installed capacity of 85,000 MT per annum, based on 3 shifts and 330 working days in a year. Now, it is planning to modernise its production facilities of its Paper Unit II and III by technological upgradation including replacement of plant and machinery with regard to manufacturing of duplex board, writing and printing paper, and allied sections such as chemicals and fibre recovery section, recycling of backward system, etc., at a project cost of Rs. 50 crore.

The company also plans to venture into the hospitality sector and is setting up a 4-Star business hotel with 212 rooms, conference halls, food & beverages and other facilities, in Sahibabad District, ( Ghaziabad) (close to Delhi), at a cost of Rs 102.63 crore. It has entered into a Management Agreement and Territory Licence agreement with the Country Development & Management Services Private Limited (CDMS), which has the right to offer franchise of the hotel brand, "Country Inn & Suites By Carlson®".

Magnum Ventures had appointed SREI Capital Markets as the book running lead manager to the issue.

Dhanus Tech to raise Rs 113 cr via IPO, opens on Sept 10

Dhanus Technologies, a rapidly growing communication services company, proposes to enter the capital markets on September 10, 2007 with a public issue of 38,35,000 equity shares of Rs 10 each through 100% book building process.

The issue closes on September 12, 2007 and the price band has been fixed at Rs 280 to Rs 295 per equity share of Rs 10 each. The company is going to raise Rs 113.13 crore in the higher end of band and Rs 107.38 at lower band.

After allowing for reservation of 2,00,000 equity shares for employees, the net issue to the public will be 36,35,000 equity shares. The issue would constitute 21.37% and the net issue would constitute 20.26% of the fully diluted post issue paid up capital of the company.

SREI Capital Markets Limited is the BRLM for the issue and Cameo Corporate Services Ltd is the registrar to the issue.

The company proposes to utilize the net proceeds of the issue for financing its business plans and to achieve the benefits of listing. The company intends to expand its infrastructural facilities and equipment base and would be constructing its new corporate office and network operating centre. The existing infrastructure, equipments, operations and facilities would however continue to be operational at the existing locations at Mena Kampala Arcade, Chennai. The equity shares are proposed to be listed on BSE and NSE.

Dhanus Technologies offers telecommunication services and unified messaging and enhanced logistics services. The company has a BPO operation of telemarketing services to the US, UK and Australia markets.

For the year ended June 30, 2007, the company’s total income was Rs 90.46 crore and net profit at Rs 24.59 crore as against total income of Rs 35.93 crore and net profit of Rs 13.09 crores for the year ended June 30, 2006.

Tulsi Extrusions files IPO papers with Sebi

Tulsi Extrusions, manufacturer of PVC pipes and fabricated fittings, plans to enter capital market with an initial public offer (IPO) of 57,00,000 equity shares of Rs 10 each for cash and has filed draft red herring prospectus (DRHP) with market regulator, Sebi.

The issue comprises a reservation of 1,00,000 equity shares of Rs 10 for eligible employees and net issue of 56,00,000 equity shares. The issue would constitute 45.62% of the fully diluted post issue paid-up capital of our company.

The company proposes to utilize the net proceeds of the issue for expansion of manufacturing facilities at Jalgaon, Maharashtra at the cost of Rs 27.24 crore, meeting long term working capital requirements (Rs 12.13 crore), purchasing of branch offices (Rs 4.15 crore) and making provision for contingencies (Rs 0.29 crore). It will also use for general corporate purposes and issue expenses.

For the year ended March 2007, it has reported net sales of Rs 59.16 crore and net profit of Rs 4.53 crore.

It manufactures various types of PVC pipes and fabricated fittings. The total installed capacity as on March 31, 2007 is now 10,483 metric tonnes for PVC pipes & fabricated fittings. The company sells products under brand name “Tulsi”.

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

Almondz Global Securities is the book running lead manager and Intime Spectrum Registry is registrar to the issue.

Emaar MGF set for IPO, appoints Citi grp, Enam, Merrill

Emaar Properties PJSC, the Middle East's biggest real estate developer by market value, hired Citigroup Inc., Enam Financial Consultants and Merrill Lynch & Co. to sell shares in India, three bankers with direct knowledge of the transaction said.

JPMorgan Chase & Co. and Kotak Mahindra Capital Co. will also help arrange the sale of shares in the Dubai-based developer's Indian unit, Emaar MGF Ltd., the bankers said, requesting anonymity before an official announcement.

Emaar said in January it plans to raise funds in India, where the fastest wage growth in Asia Pacific has driven a doubling in property prices in two years. JPMorgan last month said Indian developers may sell as much as USD 10 billion of shares in the next 18 months as the world's second-fastest pace of economic growth boosts demand for offices and homes.

``If one takes a three-year view, the growth opportunity is bright,'' said Murali Krishnan, head of research at brokerage MF Global Ltd. in Mumbai. ``Income levels are rising, which would create demand.''

Amit Jain, Chief Financial Officer at Emaar, didn't return calls seeking comment. Officials at the investment banks in Mumbai declined to comment.

Emaar is building homes, shopping malls, schools and hospitals from Morocco to the US as it diversifies its sources of income outside Dubai. The developer expects a quarter of its revenue to come from India by 2010, Emirates Today reported in June. Emaar plans to invest USD 12 billion in India over the next five years, the Dubai-based newspaper reported, citing Susil Dungarwal, head of retail at Emaar MGF.

Emaar follows DLF Ltd., controlled by billionaire Kushal Pal Singh, in tapping investor demand for real estate stocks. DLF, based in New Delhi, raised USD 2.3 billion in June in the nation's biggest initial share sale.

The average price of a residential apartment in south Mumbai, India's commercial capital, more than doubled in the past two years to 22,000 rupees (USD 537) a square foot, according to Cushman & Wakefield. Office prices in the southern business district also doubled to a 10-year high, reports Bloomberg.

Tuesday, September 04, 2007

Ansal plans to raise Rs 1,000-cr via follow-on issue

Delhi-based real estate firm Ansal API plans to raise close to Rs 1,000 crore through a follow-on public offer (FPO). The company is also in final stages of striking a USD 250 million private equity (PE) deal with a London-based fund.

Ansal API chairman Sushil Ansal said, “We are close to signing the PE deal and will issue our FPO sometime early next year.” The company plans to use the funds generated for part-financing its ongoing real estate projects and undertaking new projects in hospitality and education sectors.

At present, the company has a 7,000-acres landbank, mostly in north Indian states. Apart from its ongoing real estate projects in these states, Ansal API is also diversifying into Maharashtra and is undertaking an international project in UAE. “Very soon, we will float our UAE venture in association with a local partner,” Mr Ansal said.

In recent times, all major Indian real estate companies have been on a fund raising spree, mostly by going to the capital markets or through PE fund infusion. In the last one year itself, five prominent real estate companies have hit the capital markets. Just a couple of months back, India’s largest real estate company, DLF, raised over Rs 9,000 crore through an initial public offer (IPO).

After the DLF issue, another Delhi-based real estate firm, Omaxe, raised more than Rs 550 crore through an IPO. Recently, Bangalore-based Puravankara Projects’ IPO raised more than Rs 1,250 crore.

Last year too, there were two significant real estate IPOs in the month of November. While the Delhi-based Parsvnath Developers raised about Rs 1,000 crore, Bangalore-based Sobha Developers got about Rs 500 crore from the capital markets. Interestingly, most of these issues have been significantly over-subscribed.

In this timeframe, there have been many PE deals in the sector as well. Last year, Citigroup had acquired a 5% stake in Ansal API for about Rs 175 crore. George Soros had also bought stakes ranging from 1-2% in various real estate companies, including Unitech, Ansal API and Anant Raj Industries.

Though, not many PE investments have happened at the company level, there have been many such deals at the project level, where the company gets the PE fund in special purpose vehicles (SPVs). Ansal API had recently floated such an SPV in a 51:49 joint venture with IL&FS, reports The Economic Times.

OIL will issue bonus shares after IPO

Government-owned Oil India Ltd (OIL) would issue bonus shares, once it completes its planned initial public offer (IPO) in February 2008.

This was part of the government approval for the company's disinvestment and IPO issue.

Sources said the department of public enterprises suggested the issue of bonus shares during the course of inter-ministerial discussions on OIL's public issue.

While agreeing with the suggestion, OIL conveyed to the government that a bonus issue would be beneficial only after the IPO.

"We felt a bonus issue at this stage would not be beneficial since the government was the only shareholder," said an official.

The move would enable OIL to provide prospective investors with an incentive to invest in its public issue.

The modalities of the bonus issue have not been decided as the company is waiting for the listing formalities to be completed.

The decision to come out a with bonus issue would have to be taken by the company's board and approved by the shareholders.

OIL would also need to comply with Sebi clause 49, calling for the appointment of independent directors on the company's board, before the IPO application is approved.

Sources said the ministry of petroleum and natural gas has short-listed some names and appointments may take place soon.

Though a bonus issue reduces the value of earnings per share (EPS) of a company, it is usually considered beneficial in the long run.

Currently, OIL has a book value of around Rs 320 crore and an EPS of Rs 76.63. The company has reserves of about Rs 6,635 crore and an equity base of Rs 214 crore.

Last week, the Cabinet Committee on Economic Affairs had decided that the company would come out with a fresh issue of 10% of the post-issue paid-up capital, coupled with 1% for employees and disinvestment of 10% of pre-issue paid-up capital in favour of Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation Ltd.

The disinvestment would reduce government equity in the company to 78.53% from 98.13%.

SBI's FPO postponed

SBI's follow on public offer was expected to hit the market by the end of the year. In fact, a maximum of 9 percent stake could have been divested in the public issue.

The recent market volatility has prompted the Finance Ministry to go slow. We learn the Finance Ministry is worried that they may not be able to get the best price in the market. Also since there are only a limited number of shares on offer, it is not willing to take any risks

In the last few weeks banking stocks have had a tough time on the bourses. In fact ICICI Bank shares dipped below the FPO issue price. The government doesn't want the same to be repeated in SBI's case. Now if the SBI Act is amended, then the bank can issue 30,000 crore worth of preference shares and can also raise money through bonds.

Finance Ministry will also support a rights issue.

Sources say the Finance Ministry is waiting for the merger process of at least two of SBI's associate banks - State Bank of Saurashtra and State Bank of Patiala - to be completed, as it will improve valuations.

Saturday, September 01, 2007

Govt plans to divest 4.75% NTPC stake, may raise Rs 6000cr

The government plans to divest 4.75 per cent of its stake in NTPC, the country's biggest power generation utility, through a public offer that could fetch it nearly Rs 6,000 crore.

Power Ministry, acting on a request from the state-run firm, has approached the Department of Disinvestment in Ministry of Finance for approval of a follow on public offer (FPO) of 4.75 per cent shares, official sources said.

NTPC had a few years back proposed an initial public offering (IPO) of 24 per cent. But in February 2004, the government allowed NTPC to go for an IPO of 10 per cent of its paid-up capital in one or more stages to augment resources.

The company chose to go for an IPO of 5.25 per cent, leaving balance 4.75 per cent of approved IPO for later date. The IPO of 5.25 per cent was tagged with government divesting an equal shareholding. Subsequent to the offer, government shareholding in NTPC fell to 89.5 per cent from 100 per cent.

While the IPO in 2004 was priced at Rs 62 to raise about Rs 5,400 crore, the company's current share price is hovering at Rs 166. Based on this price, the government could get about Rs 6,000 crore with the new offer of around 35 crore shares.

Sources said NTPC has stated that as a result of low level of free float, turnover of the shares of the company was quite low. Besides, for listing the company in National Stock Exchange's NIFTY and MSCI, it was required to have a free float of at least 12 per cent and 15 per cent respectively.

The increase in the free float would result in increased trading in NTPC shares, the company said in its proposal. "It is anticipated that this would result in better price for the NTPC shares in the stock market, which in turn, will improve the valuation of the company", reports The Economic Times.

Govt approves Oil India IPO, divestment of 10%

The Cabinet Committee on Economic Affairs (CCEA) on Thursday paved the way for Oil India (OIL) to go in for an initial public offering (IPO) along with a sell-off of Government equity.

Briefing newspersons after the CCEA meeting, Finance Minister P Chidambaram announced that the committee had approved an IPO of 10 per cent fresh equity of OIL along with the sale of 10 per cent of the Government’s stake in the existing share capital of the public sector oil exploration major. OIL has also been allowed to offer one per cent of its equity stake to employees. Out of the Government’s existing equity stake in OIL, five per cent is to be offered to Indian Oil Corporation, and 2.5 per cent each to Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL), the three state-owned oil marketing companies (OMCs). The issue price or the price brand of OIL shares, Mr Chidambaram said, would be cleared by an empowered Group of Ministers on disinvestment already in place. He made it clear that the issue price of shares under the IPO as also those being handed over to the OMCs would be the same.

The offloading of OIL shares in favour of the three OMCs would not only strengthen their existing synergies but also help them in raising resources through disposal of the allotted shares in the open market at an opportune time to tide over their under-recoveries on sale of fuel, an official statement said.

The fresh issue of 10 per cent of OIL’s paid-up equity capital would also meet SEBI’s requirement of listing the company’s share on the bourses. This would not only make OIL more amenable to market discipline but would also boost the company’s image. Besides, this would help it to raise resources for its future expansion and growth, the statement noted.

The proceeds of disinvestment of Government holding in favour of IOC, HPCL and BPCL would be used for meeting the needs of social sector programmes, reports The Hindu.

Kaveri Seed IPO opens on Sept 6, to raise Rs 68cr

Kaveri Seed Company, one of the few recognized agri-input companies in India, proposes to enter the capital markets on September 6, 2007 with a public issue of 40,00,000 equity shares of Rs 10 each through 100% book building process. The issue closes on September 11, 2007 and the price band has been fixed at Rs 150 to Rs 170.

The company proposes to raise Rs 60 crore in the lower end of band and Rs 68 crore at the higher end of band.

The net issue to the public will be 38,00,000 equity shares after allowing for reservation of 2,00,000 equity shares for eligible employees. The issue will constitute 29.20% and the net issue will constitute 27.74% of the fully diluted post issue paid-up capital of the company.

Anand Rathi Securities, Sobhagya Capital Options and SREI Capital Markets are the BRLMs for the issue.

The company proposes to utilize the net proceeds of the issue for acquisition of farmland for R&D near Hyderabad, Alwar and Ahmedabad, setting up marketing offices and godowns in Delhi, Lucknow, Jaipur, Ahmedabad and Aurangabad, setting up of corn cobdrying plants in Andhra Pradesh and Karnataka, setting up of a biotechnology lab near Hyderabad, upgradation of existing seed processing plants at Kandalkoi, Gundla Pochampally, Gatla Narsingapur and Bellary and setting up of a seed processing plant near Hyderabad.

``Our focus is to be a leading provider of crop solutions to the farmer by supplying high yielding hybrid seeds and crop management namely micronutrients, bioproducts etc. For achieving this, we are engaging in research and development efforts in the areas of superior breeding programmes and biotechnology tools that will enable us to develop highly effective and differentiated hybrid seeds, micronutrients and bioproducts," says Mr Gundavaram Venkata Bhaskar Rao, Chairman and Managing Director of the company.

Kaveri Seed Company is mainly into the business of research, production, processing and marketing of high quality hybrid seeds for different crops like corn, sunflower, cotton, pearlmillet, paddy, grain sorghum etc. and has recently forayed into micronutrients and bioproducts.

The company's total income has gone up from Rs 2364 lakh in 2002-03 to Rs 4972 lakh in 2005-06 and PAT is up from Rs 13.41 lakh to Rs 293 lakh respectively. During 2006-07, the company has recorded PAT of Rs 1053 lakh on total income of Rs.6723 lakh.

The Indian seed market is among the top ten largest in the world, estimated to be about USD1 billion in 2005. (Source: ISF Secretariat)

Tecpro Systems plans IPO of 73 lakh shares

Tecpro Systems is entering capital market with an initial public offering (IPO) of 73,00,000 shares of Rs 10 each for cash through a book built issue and has filed draft red herring prospectus with SEBI.

The issue will constitute 22.33 per cent of the fully diluted post issue paid-up capital. The book running lead managers are SBI Capital Markets and Kotak Mahindra Capital. Intime Spectrum Registry is the registrar to the issue.

The money raised from the issue will be used for setting up of design and engineering center with the cost of Rs 33 crore, setting up of plant to manufacture conveyor belts with Rs 6.6 crore. The company is going to put investment of Rs 17.85 crore in TEL for power plants and Rs 12 crore in TPSL for working capital requirements.

Some money will be used for expansion of existing manufacturing facilities with Rs 8.66 crore and enhancing working capital to Rs 22 crore.

Tecpro provides total material handling solutions from concept to commissioning which involves design, engineering, manufacture, supply, erection and commissioning of material handling systems, associated structural and civil work, electrical and instrumentation work and auxiliaries like dust control, suppression systems, ventilation systems.

It undertakes turnkey projects of material handling systems and supply material handling equipment for raw material handling in power, cement, steel and other metallurgical plants, coal storage and reclaiming plants, biomass handling plants, aggregate process plant for mineral processes.

The company manufactures and sells crushers, screens and feeders for various applications. Its core business comes from the steel, cement and power sectors in India.

Its order book as on March 31, 2007 was Rs. 480.6 crore and the order book position as on June 30, 2007 was Rs 482.51 crore.

Tecpro is promoted by Ajay Kumar Bishnoi, chairman & managing director and Amul Gabrani, vice chairman & managing director.

The company reported sales of Rs 229.96 crore and net profit of Rs 21.08 crore for year ended March 31, 2007.