Indian IPO

All details about Hot Indian Primary Market.

Friday, February 29, 2008

Gammon Infra IPO opens on Mar 10, price band Rs 167-200

Gammon Infra, a subsidiary of Gammon India, is coming out with an initial public offering on March 10, 2008 at a price band of Rs 167-200 per share. The issue will close for subscription on March 13

Friday, February 22, 2008

Future Group company, Future Ventures has filed DRHP for IPO with the market regulator, Sebi. The company will issue 373.6 crore shares of Rs 10 face value through 100% book built issue.

It is planning to raise Rs 3736 crore. Net issue to the public will be of 266.07 crore equity shares and reservation of upto 25 crore equity shares for eligible shareholders of Pantaloon Retail (India).

The net issue would constitute 66.52% of the post issue paid up capital of the Company.

Wednesday, February 06, 2008

Emaar MGF IPO extends by 5 days to Feb 11

Under subscription on the last day has forced Emaar MGF Land, a joint venture between Emaar Properties PJSC of Dubai and MGF Development Limited of India, to extend its issue by five days with the permission from market regulator, Sebi. Now the issue will close on February 11 instead of February 6, reports CNBC-TV18.

It has subscribed 0.74 times till now. As per Sebi regulations, the company has to receive a minimum subscription of 90% of the issue.

The company also revised its lower end of price band to Rs 530 from Rs 540, so the new price band is Rs 530-630 per share. This is the second time of revision in price band from the company, due to negative sentiment across the global markets, which impacted Indian markets as well. The first price band was Rs 610-690 which the company changed it to Rs 540-630.

It has opened for subscription with its initial public offering of 102,570,623 equity shares. The issue proceeds will be used for part payment towards the acquisition of land and land development rights and related approvals for its ongoing and planned projects, the development and construction costs for project Palm Drive in Gurgaon and repayment of loans.

The global co-ordinators and book running lead managers to the issue are Enam Securities Private Limited and DSP Merrill Lynch Limited. The book running lead managers are Citigroup Global Markets India Private Limited, Goldman Sachs (India) Securities Private Limited, HSBC Securities and Capital Markets (India) Private Limited, J.P. Morgan India Private Limited, Kotak Mahindra Capital Company Limited and ICICI Securities Limited

Monday, February 04, 2008

Rel Tower plans IPO to raise Rs 6K cr

Anil Ambani’s appetite for raising funds from the primary market seems to be insatiable. Barely a fortnight after his Reliance Power completed the country’s biggest public issue, another company from the group Reliance Telecom Infrastructure (RTIL) is gearing up to raise nearly Rs 5,000-6,000 crore through an initial public offering.

The company has decided to file the draft red herring prospectus with the market regulator Sebi this week, it is learnt. The list of merchant bankers appointed for the IPO includes J P Morgan, Enam, UBS and ABN Amro.

Bankers close to the development said RTIL will sell nearly 10% of its post-issue share capital through the IPO which will put its valuation more than double of what it achieved in July when it privately placed 5% stake to a group of institutional investors. RTIL, a 95% subsidiary of Reliance Communications (RCOM), sold the stake for Rs 1,400 crore to a host of investors including George Soros, HSBC, Fortress Capital, New Silk, Galleon, DA Capital and GLG Capital in a deal which had put its valuation at Rs 27,000 crore.

Going by the IPO size, the equity valuation of RTIL, a company engaged in the business of building, owning and operating communications towers, will be around Rs 50,000-60,000 crore. This will translate into nearly Rs 250-300 per RCOM share. The RCOM stock closed at Rs 612.15 on Friday on the BSE. When contacted, a spokesperson for the group declined to comment.

RCOM demerged its tower assets in RTIL last year in a move which was followed by most telecom companies in India. RTIL has a presence in all 23 telecom circles in the country. It has a 10-year master services agreement to provide passive telecom infrastructure to RCOM. Additional tenants in the form of external wireless operators on RTIL's towers will provide incremental growth for it.

Bankers found the increase in number of towers responsible for the possible increase in valuation. “RTIL had 14,000 towers across the country when the first stake sale happened in July. Now, it will end up this financial year with 40,000 towers. Also, it plans to add another 20,000 towers next year. With new players getting into the 2G and 3G spaces, the tenancy ratio for every tower is expected to go up to four. In short, the business proposition of the company looks more bright than what it was in July,” said a person related to the developments.

RTIL is putting in an investment of Rs 16,000 crore this year and is expected to pump in Rs 8,000 crore more next year. It has a minimum of four tenancy slots and it is in the process of upgrading this to host seven tenants by 2009. It expects to reach the one lakh tenancy figure this week.

Reliance Power, another R-ADAG group company, last week completed the allotment of shares of its Rs 11,560-crore IPO. The issue helped Reliance Power to became India’s biggest company in terms of the number of shareholders (42 lakh). RNRL had close to 22.3 lakh shareholders at the end of December 2007, followed by the Mukesh Ambani-led Reliance Industries with close to 20.6 lakh shareholders. Reliance Communications is the fourth-largest in this list with around 19.8 lakh shareholders. Reliance Petroleum has close to 16.9 lakh shareholders.

Sunday, February 03, 2008

V-Guard sets IPO price band at Rs 80-85

V-Guard Industries has announced a price band of Rs 80-85 for its forthcoming initial public offering of 80-lakh equity shares with a face value of Rs 10 each at a premium.

The net issue to the public comprises of 76-lakh equity shares, while four-lakh shares have been reserved for its employees. The issue is slated to open on February 18 and close on February 21.

The issue would constitute 26.80 per cent of the fully diluted post issue paid up equity share capital of the company. For a face value of Rs 10, the floor price is eight times the face value and cap price is 8.5 times, a press release from the company said. The company is likely to mobilise Rs 68 crore at the upper end of the price band.

Pilot production

The capital raised from the issue is to be deployed to set up cable manufacturing facilities in Coimbatore and Uttarakhand, an enameling plant at Coimbatore, and development and pilot production plants for water heaters, fans and pumps are also envisaged at Coimbatore and Himachal Pradesh.

The company has been making profits and paying dividends consistently during the last five years. The net profit of the company has grown from Rs 4.89 crore in March 2003 to Rs 13.49 crore in March 2007, reports The Hindu Business Line.