Indian IPO

All details about Hot Indian Primary Market.

Wednesday, March 19, 2008

20 Microns files DRHP with SEBI

20 Microns, one of the pioneers in the micronised minerals and trend setter in the market for usage of ultrafine minerals ranging from 20 microns to 2 microns particle size for Paints & Plastic Industries, has filed the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to enter the capital market soon with an initial public pffering (IPO) of 94,25,632 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.

Upto 4,71,282 equity shares will be reserved for subscription by eligible employees. The issue will constitute 49.10% of the post issue paid up capital of the company.

The issue comprises a net issue to public of 67,50,000 equity shares of Rs 10 each and an offer for sale of 26,75,632 equity shares by Gujarat Venture Capital fund 1995 (the Selling Shareholders). The equity shares are proposed to be listed on Bombay Stock Exchange and National Stock Exchange.

The book running lead manager is Keynote Corporate Services Limited.

Saturday, March 15, 2008

Titagarh Wagons IPO opens on Mar 24, price band Rs 540-610

Titagarh Wagons is entering capital market with an initial public offering, IPO of 24.87 lakh shares, including fresh sale of 3.15 lakh shares by Mrs Savitri Devi and Strategic Ventures Fund (Mauritius), of face value Rs 10 each on March 24. The price band has been fixed at Rs 540 to Rs 610. The issue will close on March 27, 2008.

It is planning to raise approximately Rs 129 crore to Rs 145 crore, out of which the company will get Rs 111.6 crore to Rs 126 crore. Issue will constitute 15% of post issue paid up capital.

Amongst PE investments, Blackstone has picked up a minority interest in Titagarh Wagons for Rs 672 a share, which is the fifth major investor to put money in Titagarh Wagons. Other investors include GE Capital Infrastructure (15%), JP Morgan (5%), 2i Capital (6%) and ChrysCapital (6.5%).

Money raised through this issue will be used for setting up an EMU manufacturing facility at Uttarpara unit, modernising and expanding the existing facilities at Titagarh and Uttarpara units, setting up an axle machining and wheelset assembly facility at Uttarpara unit, constructing a corporate office and a design cum research and development office. Money will also be used for strategic acquisition or investments and brand building exercise and General corporate purposes.

Titagarh Wagons is a leading private sector wagon manufacturer in India. It manufactures railway wagons, Bailey bridges, Heavy Earth Moving and Mining equipment, steel and SG iron castings of moderate to complex configuration etc. It is an Industry Partner to Defence Research and Development Organization, Ministry of Defence, manufactures special purpose wagons, shelters and other engineering equipments for defence.

It is into three broad business lines: a) wagon manufacturing, b) special projects (includes defence, bailey bridges and other fabricated equipment) and c) heavy earth moving and mining equipment division.

Current order book stands at Rs 753.11 crore. Rolling stock division is constituting nearly Rs 669.39 crore as on January 31, 2008.

Its subsidiary Titagarh Biotec Private (holds 98.14%), engaged in cultivating, producing, buying and selling all kinds of agricultural and forests produce. Wagon manufacturing business contributes around 86% of total income. 80% of the Order book for wagons comes from Railway.

Since Fiscal 2003, Sales and PBT CAGR stood at 57% and 76%. Wagon dispatches have increased from 644 wagons in 2003 to 2,073 wagons in Fiscal 2007.

Monday, March 10, 2008

Persistent Systems defers IPO

Persistent Systems, one of the leading outsourced software product development specialists, has decided to defer its proposed initial public offering (IPO) due to the prevailing poor market sentiments and adverse developments in the financial markets in India and abroad.

The company had earlier filed its draft red herring prospectus (DRHP) with SEBI. The deferment of the IPO will not hamper the company’s financial and capital growth plans in any way.

Enam Securities Private Limited, Morgan Stanley India Company Private Limited and JM Financial Consultants Private Limited were the book running lead managers for the IPO.

Sita Shree Food IPO opens on Mar 11, price band Rs 27-30

Sita Shree Food Products is coming out with an initial public offering equity shares of Rs 10 each at a price band of Rs 27-30 per share for cast aggregating Rs 31.5 crore.

The issue will open for subscription on March 11 and close on March 14, 2008. Equity shares are proposed to be listing on the BSE and NSE.

The objects of the issue are to Finance the capital expenditure programs - setting up a Solvent Extraction Plant having 500TPD capacity, setting up a oil refinery for Solvent Extraction Plant having 100TPD capacity, setting up a Lecithin plant for processing the by products of Solvent Extraction Plant having 5TPD capacity at Badia Kima (M.P.) and setting up a Flour Mill of 275TPD. Other objects are to meet working capital margin requirement of the business, to meet the expenses of the issue and to enable listing of the equity shares of the company on the stock exchanges.

Sita Shree is in the business of wheat and pulse processing. The product portfolio of the company consists of wheat flour, maida, rawa, daliya, suji, chana dal etc. These products are marketed under its own brand like Sita Shree, Regular and Sita Shree Gold.

It has reported sales of Rs 80.73 crore and net profit of Rs 0.92 crore for the year ended March 2007.

Lead manager to the issue is Keynote Corporate Services Limited and Ankit Consultancy Private Limited is the registrar.

Tuesday, March 04, 2008

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

Gammon Infrastructure Projects (GIPL), an infrastructure project development company promoted by the 85-year old Gammon Group, is entering the capital market with its initial public offering (IPO) of 1,65,50,000 equity shares of face value Rs 10 each for a cash price to be determined through a 100% book building process. The issue will open on March 10, 2008, and will close on March 13, 2008. The price band has been fixed between Rs 167 and Rs 200 per equity share.

The issue has been graded by Credit Analysis & Research Limited as CARE IPO Grade 4 (Grade Four) indicating above average fundamentals.

The issue comprises a net issue of 1,48,95,000 equity shares to the public and a reservation of 16,55,000 equity shares for eligible employees. The issue and the net issue will constitute 11.45% and 10.30% respectively of the post-Issue paid up equity share capital of the company.

At least 60% of the net issue will be allocated on a proportionate basis to qualified institutional buyers. Further, 5% of the QIB portion will be available for allocation to mutual funds only and the remaining QIB portion will be available for allocation to the QIB bidders including mutual funds. At least 10% of the net issue will be available for allocation on a proportionate basis to non-institutional bidders and at least 30% of the Net Issue will be available for allocation on a proportionate basis to retail investors.

Investors can avail of two modes of payment. Under Payment Method-1, the amount payable on submission of the bid-cum-application form (in case of retail individual bidders and non-institutional bidders) is Rs 50 per equity share (such that it shall not be less than 25% of the issue price). And the balance payable shall be paid by the due date. Non-resident bidders cannot make use of Payment Method-1. Under Payment Method-II, the amount payable on submission of the bid-cum-application form in the case of retail individual bidders and non-institutional bidders shall be 100% of the bid amount, and, in the case QIBs, will be 10% of the bid amount with the balance being payable on allocation.

GIPL was incorporated in 2001 and is modelled as an infrastructure development company undertaking projects on a public-private partnership basis (PPP). Presently, GIPL undertakes and develops projects such as roads, bridges, ports, hydroelectric power and biomass power projects on a PPP basis.

Presently, GIPL’s infrastructure project development business includes fourteen projects, of which four are already in the operations phase, seven are in the development phase and three are in the pre-development phase. GIPL also provides O&M and project advisory services for projects which are being undertaken by the project specific companies.

The Issue proceeds will be utilised to:

* Contribute to a part of the investment required by KBICL, its subsidiary formed for the design, construction, finance & maintenance of a 1.8 kilometer long four-lane bridge across river Kosi including 8.2 kilometers long approach roads and Guide bund & Afflux bund on NH-57 in the Supaul district of Bihar;
* For the investment required by GICL, its subsidiary formed for the design, construction, finance & maintenance of a 32 kilometer long four-lane bypass to Gorakhpur town on NH-28 in the state of Uttar Pradesh;
* For the investment required by SHPVL, its subsidiary formed for developing the Rangit-II hydroelectric power project in the state of Sikkim;
* For infusion of funds into MNEL, its subsidiary formed for the four-laning of the 99.5 kilometers Vadape-Gonde section (between Mumbai and Nasik) of NH 3 on BOT basis;
* Repayment of loan to Gammon India Limited and general corporate purposes and investment in strategic initiatives and acquisitions.

The book running lead managers to the issue are IDFC-SSKI Private Limited and Macquarie Capital Advisers (India) Private Limited . The co-book running lead manager to the issue is Collins Stewart Inga Private Limited.

Sita Shree Food IPO opens on Mar 11, price band Rs 27-30

Sita Shree Food Products is coming out with an initial public offering equity shares of Rs 10 each at a price band of Rs 27-30 per share for cast aggregating Rs 31.5 crore.

The issue will open for subscription on March 11 and close on March 14, 2008. Equity shares are proposed to be listing on the BSE and NSE.

The objects of the issue are to Finance the capital expenditure programs - setting up a Solvent Extraction Plant having 500TPD capacity, setting up a oil refinery for Solvent Extraction Plant having 100TPD capacity, setting up a Lecithin plant for processing the by products of Solvent Extraction Plant having 5TPD capacity at Badia Kima (M.P.) and setting up a Flour Mill of 275TPD. Other objects are to meet working capital margin requirement of the business, to meet the expenses of the issue and to enable listing of the equity shares of the company on the stock exchanges.

Sita Shree is in the business of wheat and pulse processing. The product portfolio of the company consists of wheat flour, maida, rawa, daliya, suji, chana dal etc. These products are marketed under its own brand like Sita Shree, Regular and Sita Shree Gold.

It has reported sales of Rs 80.73 crore and net profit of Rs 0.92 crore for the year ended March 2007.

Lead manager to the issue is Keynote Corporate Services Limited and Ankit Consultancy Private Limited is the registrar.