Indian IPO

All details about Hot Indian Primary Market.

Wednesday, July 23, 2008

MCX public issue by August

Braving the turbulent market conditions, the MCX initial public offering (IPO) is slated for launch during the first half of August. Mr Joseph Massey, Joint Managing Director, MCX, said the decision on the exact date for the IPO launch will be taken early next week.

MCX, which received the SEBI approval for IPO on May 15, has to tap the market before August 15, after which the SEBI approval will expire.

IPO deferred

Companies that had received SEBI’s nod has to complete the process of listing within 90 days, else they have to re-file their offer documents, said an analyst. Once the process is completed, MCX will become the first commodity exchange in India to be listed on a stock exchange.

At an expected price band of Rs 500-600, the company will raise about Rs 500 crore to Rs 600 crore, said a source. According to the draft red herring prospectus (DRHP), the public issue will be of one-crore equity shares of Rs 10 each.

The IPO would comprise fresh issue of 6-million shares and another 4-million shares will be offloaded by Financial Technologies Ltd and Corporation Bank. Earlier, MCX, in June 2006, deferred its IPO plan after receiving SEBI’s approval.

However, this time around, Mr Jignesh Shah, CEO and Managing Director of MCX, was on record that the issue will hit the market despite weak market sentiments. Recently, NYSE Euronext acquired 5 per cent equity stake in the MCX for Rs 220 crore, valuing the exchange at USD 1.1 billion.

Highest rating

Rating agency CRISIL recently rated MCX IPO at the highest grade of 5/5. The grade indicates that the fundamentals of the issue are strong. It is neither a trading recommendation, nor a comment on the future market price or its suitability, it said.

Currently, MCX enjoys market leadership, with a share of 77 per cent in volumes traded on commodities exchanges in India. The company has focused on commodities such as bullion, energy and metals, which are benchmarked to international prices, Crisil said. Of the company’s total turnover, bullion accounts for 53 per cent, metals for 28 per cent, energy for 16 per cent and agricultural commodities account for the rest, reports The Hindu Business Line.

Nu Tek India IPO opens on July 29, price band Rs 170-192

Nu Tek India, a telecom infrastructure services provider offering infrastructure rollout solutions for both mobile and fixed telecommunication networks, will enter the capital market on July 29, 2008, with an initial public offering (IPO) of 4,500,000 equity shares of Rs 10 each for cash at a price to be determined through a 100% book building process. The issue comprises a fresh issue of 3,500,000 equity shares and an offer for sale of 1,000,000 equity shares by a strategic investor.

The price band has been fixed between Rs 170 and Rs 192 per equity share. The issue will close on August 1, 2008. The issue constitutes 26.07% of the fully diluted post-issue paid up equity share capital of the company. The issue has been assigned an IPO grade of 3 out of 5 by rating agency, CRISIL Ltd.

The company intends to utilise the proceeds from the Issue to meet the cost of capital expenditure, overseas acquisitions and augmenting the long term working capital requirement amongst others.

The company’s expertise lies in the breadth of services it offers in the telecom infrastructure space. It offers all outsourced services related to design, installation, construction, operation and maintenance of telecom networks. It offers services to telecommunication equipment manufacturers, telecom operators as well as third party infrastructure leasing companies in installing and maintaining telecom network equipment & infrastructure. It is also registered with Department of Telecommunication as Infrastructure Provider - Category I.

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

The book running lead managers to the Issue are SPA Merchant Bankers Limited and India Infoline Limited.

Vishal Information Technologies IPO opens for subscription

Vishal Information Technologies, a company in the field of ITES/BPO services and a subsidiary of Tutis Information Technologies will open for subscription today with a public issue of 27,90,000 Equity shares of Rs 10 each through 100% book building process. The Issue consists of fresh Issue of 17,90,000 Equity shares and an offer for sale of 10,00,000 Equity shares by "Selling shareholders’’. The price band has been fixed at Rs 140 to Rs 150 per equity share of Rs 10 each. The issue closes on 24th July 2008. The Issue will constitute 26.12% of the fully diluted Equity share capital of the Company. Credit Analysis and Research (CARE) has assigned "IPO Grade 3’’ to the Issue. The Equity shares are proposed to be listed on BSE and NSE. Keynote Corporate Services and IDBI Capital Market Services are the BRLMs for the Issue.

IDBI Capital Market Services has invested an amount of Rs 3.72 crores in the equity Share capital of the company by subscribing to 3,10,000 Equity shares of Rs 10 each at Rs 120 per Equity share. Vishal proposes to utilize the net proceeds of the Issue to part finance the cost of the proposed expansion of the facilities in Chennai and the cost of setting up of Quality Assurance Center and Marketing office in Mumbai. The expansion includes increasing Data digitalization seats from present 250 to 450, E-publishing seats from 150 to 250 and Digital Library seats from 75 to 100. The issue proceeds would also be utilized for setting up of subsidiaries in UK and USA.

Presently the Company operates from leased facilities in Chennai and Mumbai with approximately 475 workstations. As part of the expansion plans, the Company intends to set up new facilities to support the increase in business from existing and new clients. It proposes to buy an office space of approximately 15,000 sq. ft. at Special Economic Zone (SEZ) in Chennai.

Majority of the Company’s business is predominantly sourced from the United Kingdom and United States of America through tenders floated by the various government authorities, educational institutes, etc. Presently it does not have any presence in the UK and USA which many a times acts as hindrance for getting the work allotted. It feels that its offshore presence in the form of a subsidiary company would enable Vishal’s participation in the bidding process more active and fruitful. The various other marketing activities for Vishal would also be carried out from these subsidiaries.

Tuesday, July 08, 2008

UTI AMC defers IPO due to market conditions

UTI Asset Management Company has deferred its initial public offering (IPO) due to market conditions, reports CNBC-TV18.

As per DRHP filed with SEBI, the company planned a issue of 4.85 crore equity shares of Rs 10 each.

The objects of the offer are to achieve the benefits of listing on the stock exchanges and to carry out the sale of equity shares by the selling shareholders.

UTI AMC provides asset management services in India catering to a diverse group of individual and institutional investors through a wide variety of equity and debt funds. The company manages domestic mutual funds, as well as provide portfolio management services and manage overseas, venture capital and private equity funds.

Global coordinators and book running lead managers to the issue are JM Financial Consultants Pvt Ltd, Citigroup Global Markets India Pvt Ltd, Enam Securities Pvt Ltd, Glodman Sachs (India) Securities Pvt Ltd, UBS Securities India Pvt Ltd, ICICI Securities Ltd, SBI Capital Markets Ltd and CLSA India Ltd. Karvy Computershare Pvt Ltd is registrar to the issue.