Indian IPO

All details about Hot Indian Primary Market.

Monday, December 17, 2007

Oil India files DRHP with SEBI for IPO

Oil India, India’s second largest oil and gas company as measured by total proved plus probable oil and natural gas reserves and production (Source: Directorate General of Hydrocarbons), has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) of up to 26,449,982 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.

The issue comprises a net issue to the public of up to 24,045,438 equity shares and a reservation of up to 2,404,544 equity shares for subscription by eligible employees. The issue shall constitute 11% of the fully diluted post-issue paid-up capital of the company.

The company has been present in the India oil and gas exploration and production industry for nearly five decades. The company is primarily engaged in the exploration, development, production and transportation of crude oil and natural gas onshore in India. The company also processes the produced natural gas to extract liquefied petroleum gas. Oil India Limited is present internationally through the exploration of crude oil and natural gas in Gabon, Iran, Libya and Nigeria and was recently awarded exploration blocks in Yemen as part of a consortium.

All of the Company’s independent proved plus probable oil reserves, as well as a majority of its independent natural gas reserves are located onshore in the Upper Assam basin in the states of Assam and Arunachal Pradesh. Additionally, the company also has independent natural gas reserves in the Bikaner-Nagaur basin in the state of Rajasthan.

The objects of the issue are to achieve the benefits of listing and to fund requirements for fiscal 2009 and fiscal 2010 towards (a) exploration and appraisal activities; (b) development activities in producing fields; (c) purchase of capital equipments and contracts for facilities; and d) diversification of their existing business in downstream activities.

The equity shares offered are proposed to be listed on the National Stock Exchange and Bombay Stock Exchange.

The book running lead managers to the issue are JM Financial Consultants Private Limited & Morgan Stanley India Company Private Limited, Citigroup Global Markets India Private Limited and HSBC Securities and Capital Markets (India) Private Limited.

Friday, December 14, 2007

Mahindra Holidays files IPO papers with Sebi

Mahindra Holidays and Resorts India, a leisure hospitality provider offering quality family holidays and part of the Mahindra Group of Companies, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) of 10,719,347 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process. The issue would constitute 13.0% of the fully diluted post-issue paid-up capital of the company.

The issue comprises a fresh issue of 4,122,826 equity shares and an offer for sale of 6,596,521 equity shares by Mahindra Holdings & Finance. The selling shareholder is considering a Pre-IPO sale of up to 2,473,695 equity shares to certain investors. The selling shareholder will complete the transfer and sale of such equity shares prior to the filing of the RHP with the registrar of companies (RoC). If the Pre-IPO Sale is completed, the offer for sale and consequently the issue size offered to the public would be reduced to the extent of such Pre-IPO sale, subject to a minimum issue size of 10% of the post Issue capital being offered to the public.

The objects of this issue include financing the expansion of some of its existing resorts and setting up of new projects. The company has plans to construct new resorts and projects at Pondicherry, Kumbalgarh (Rajasthan), Kadambakkam (Tamil Nadu), Binsar (Uttaranchal), Theog (Himachal Pradesh) and Tungi (Maharashtra).

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

The company provides family holidays primarily through vacation ownership memberships. Its resorts offer the use of furnished accommodation, such as apartments and cottages, and an experience through resort specific amenities and facilities, such as restaurants, ayurvedic spas, kid's clubs and a variety of holiday activities. It seeks to be the preferred partner to the urban family for family holidays and holiday services in India.

Within a decade, the company has successfully become a provider of quality family holidays having a pan-India coverage with a total of 21 resorts and 14 branch offices, 43 direct and 80 franchisee retail sales outlets as of October 31, 2007. As of October 31, 2007, it has 63,375 vacation ownership members.

MHRIL’s flagship service offering is Club Mahindra Holidays, currently it entitles members the choice of holidaying at any of its 19 resorts, for seven days each year, in a season and apartment type of their choice, for 25 years. In addition, its members can choose to access a range of resorts globally through its RCI affiliation

The global coordinator and book running lead manager to the issue is Kotak Mahindra Capital Company Limited and the BRLM is HSBC Securities and Capital Markets (India) Private Limited.

Dainik Bhaskar likely to raise Rs 1,000 cr via IPO: Sources

Dainik Bhaskar is likely to raise about Rs 1,000 crore via an IPO, reports CNBC-TV18 quoting sources. The Dainik Bhaskar issue is likely in the month of February and they will file the Draft Red Herring prospectus, or DRHP, with Sebi soon.

This could be the next big media company tapping at the IPO market, reports CNBC-TV18’s Nimesh Shah quoting unnamed sources. Shah has learnt from sources that Dainik Bhaskar is close to filing the DRHP with Sebi in the days to come and that Citi, Kotak and Enam are the lead managers to the issue. They are likely to get close to Rs 1,000 crore via a 10% dilution.

The size of the issue and dilution has not yet been confirmed by any of the investment bankers but according to Shah, they are looking at tapping the market. That probably is the reason why some sort of excitement has been seen in the print media, be it Jagran Prakashan or HT Media which were both up 9% each yesterday, and even Deccan Chronicle, Shah said.

The valuation, at what they have been talking about, is higher than all these listed companies in that space. That could probably be a big trigger for all these listed companies as well.

Though Shah wasn’t able to get an official word from the management, what he has learnt from investment banking sources is that Dainik Jagran is close to filing the DRHP.

Incidentally, in early 2006 Warbus Pincus had picked up a 7% stake and at that point in time the company was valued close to Rs 2,100 cr odd. It’s been a four-times jump in the valuation for the company. However, investors will have to wait and watch for how big the issue is.

Wednesday, December 05, 2007

Transformers & Rectifiers fixes IPO price band Rs 425-465

Transformers and Rectifiers (India), one of the major players in the Indian market manufacturing a wide range of transformers ranging from power generation, transmission and distribution transformers, industrial and specialty transformers, has filed its red herring prospectus (RHP) with the registrar of companies in Ahmedabad for its initial public offering (IPO) of 2,995,000 equity shares of Rs 10 each for cash at a premium to be decided through a 100% book-building process.

The price band has been fixed between Rs 425 and Rs 465 per equity share. The issue has been graded by CARE and has been assigned the "CARE IPO Grade 4" indicating above average fundamentals.

The issue includes a reservation of 150,000 equity shares for eligible employees and a net issue to the public of 2,845,000 equity shares. The issue will constitute 23.17% of the fully diluted post-issue paid-up capital of the company and the net issue will constitute 22.01% of the fully diluted post issue paid-up capital of the company. The equity shares are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.

The company manufactures a wide range of transformers while focusing on quality, timely delivery and customization. It has developed its products based on its in-house design and engineering capabilities. It is perhaps one of the few players to have developed this wide range without any third party technical collaboration or assistance. Its core competencies are its in-house technical and design expertise, skilled workforce and well equipped manufacturing facilities which enables it to manufacture a wide range of transformers, to meet diverse client requirements. The objects of the proposed Issue are to part finance the setting up of the proposed greenfield manufacturing facility at Moraiya, near Ahmedabad, Gujarat, for manufacturing transformers and to part-finance incremental working capital requirements.

Enam Securities Private Limited is the sole book running lead manager to the issue.

J Kumar Infraprojects plans IPO of 65 lakh shares

J Kumar Infraprojects, a civil engineering and infrastructure development company with a primary focus on development of roads, flyovers, bridges, railway over bridges, irrigation projects, commercial and residential buildings, railway buildings, sports complexes and airport runways, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).

It will enter the capital market soon with an initial public offering (IPO) of 65,00,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.

The issue comprises a net issue to the public of 63,00,000 equity shares and a reservation of up to 200,000 shares for eligible employees of the company. The issue will constitute 31.36% and the net issue will constitute 30.40% respectively of the fully diluted post issue paid-up capital of the company. The equity shares issued through this DRHP are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.

The proceeds from this issue are intended to be deployed for the purchase of capital equipments and for funding working capital requirements.

The company's core areas of expertise in the construction of infrastructure projects include: Transportation engineering, civil construction, irrigation projects and piling work using hydraulic rigs. It also undertakes the design and construction of flyover projects to the client's specified requirements on turnkey basis. It has been most active in Mumbai, Pune, Aurangabad and Vidharbha region of Maharashtra.

The company's total income increased to Rs 113.36 crore in Fiscal 2007 as compared to Rs 3.03 crore in Fiscal 2005. Its profit after tax increased to Rs 8.01 crore in Fiscal 2007 as compared to Rs 4.39 lakh in Fiscal 2005. Its order book, which includes some uncommenced projects and the unfinished and uncertified portions of its commenced projects, was Rs 315.31 crore as of June 01, 2007. Its income from operations has increased by a CAGR of 234.35% over the last 3 years and the profit after tax has increased by a CAGR of 471.51% over the last 3 years.

The book running lead manager to the issue is Anand Rathi Securities Limited.

Brigade Ent IPO opens on Dec 10, price band Rs 351-390

Brigade Enterprises, one of the leading real estate development companies based in Bangalore, is coming out with an initial public offering (IPO) of 16,624,720 equity shares of face value of Rs 10 each.

The issue price band has been fixed at Rs 351-390 per equity share and company wants to raise Rs 583.53 crore and Rs 648.36 crore, at respective prices.

The company has also planned greenshoe option of another 2,493,708 equity shares of face value of Rs 10 each. It can raise another Rs 87.53 crore and Rs 97.25 crore, respectively, if greenshoe option exercised.

So the company would raise around Rs 671.06 and Rs 745.61 crore, in total, after the execution of greenshoe option.

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

At least 60% of the Issue will be available for allocation to qualified institutional bidders on a proportionate basis, out of which 5% shall be available to mutual funds only. Further, not less than 10% of the issue shall be available for allocation on a proportionate basis to non-institutional investors and not less than 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% assuming that the Green Shoe Option is not exercised.

The money raised from the issue will be used for the purpose of acquisition of land, construction and development costs in relation to ongoing projects and forthcoming projects and general corporate expenses.

For the year ended March 31, 2007, it has reported revenues of Rs 417.02 crore and net profit of Rs 71.5 crore. It has posted net profit of Rs 44.4 crore on the revenues of Rs 230.7 crore for the six months ended September 30, 2007.

The public issue constitutes 16.87% of the post issue paid up capital of the company (with greenshoe option) and 15% of post issue capital (without greenshoe option). After greenshoe option, the market cap of the company will be Rs 3976.83 crore and Rs 4418.7 crore at respective price band.

Brigade Enterprises focusses on residential, commercial and hospitality properties. The company has land reserves of 395.05 acres spread across seven cities in south India. It is mainly focused on Bangalore and Mysore; looking at diversifying to Hyderabad, Chennai, Kottayam (Kerala), Mangalore, Chikmagalur.

It made payments of Rs 477.65 crore towards the land reserves and is yet to make Rs 227.96 crore before taking further possession.

They have finished 67 projects covering 5.67 million sq ft saleable area. Now the company is developing 12.53 million sq ft saleable land, which includes two integrated lifestyle enclave, 12 residential properties and two hospitality projects.

BE Billimoria, Simplex Infrastructures and Ahluwalia contracts are working as a contactors for the company

Brigade is developing 3 hotels with 700 rooms and 3 resorts with 196 rooms. It will manage operations through tieups with Starwood, InterContinental, Banyan Tree etc.

Its forthcoming properties (properties that are in planning stage, where approvals are in the process of being obtained but construction has not yet begun) include four integrated lifestyle enclaves, 16 residential properties, nine commercial properties and five hospitality properties, aggregating to approximately 23.14 million sq. ft. of Saleable Area and approximately 30.32 million sq. ft. of Developable Area.

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 book running lead manager is ICICI Securities Limited.