Indian IPO

All details about Hot Indian Primary Market.

Friday, September 11, 2009

Quippo Telecom may list by FY10 end or early FY11

Quippo Telecom, the telecom tower subsidiary of Srei Infrastructure, may look at listing by the end of FY10 or early FY11, subject to market conditions and profit levels, quoting sources.

The company may raise USD 250-500 million via an initial public offer (IPO), sources informed.

"It has a capex of Rs 9,000 crore in next two years and will set up 16,000 towers by the end of this fiscal year," sources added. The company currently has between 23,000-24,000 telecom towers.

Quippo Telecom has merged with Tata’s Wireless-TT Info-Services Limited in August and post the merger Quippo telecom has a 49% stake in the company while Tatas have a 51%.

Pipavav Shipyard fixes IPO price band at Rs 55-60/sh

Pipavav Shipyard has fixed its initial public offering (IPO) price band at Rs 55-60 per share. The issue will open for subscription on September 16 and close on September 18 to raise around Rs 470-512.7 crore by diluting nearly 12.74% equity.

As per the DRHP (draft red herring prospectus) filed with the SEBI, the company is coming out with a public issue of 86,850,000 equity shares of Rs 10 each. About 2,600,000 equity shares of Rs 10 each will be reserved in the issue for subscription by employees. The issue less the employee reservation portion shall be referred to as the net issue. The issue will constitute 13.04% of the fully diluted post-issue equity share capital of the company.

Proceeds from the issue will be used for construction of facilities for shipbuilding, ship repair and the Offshore Business, and margin for working capital.

The shares issued via IPO are proposed to be listed on the BSE and NSE. JM Financial Consultants Private Limited, Citigroup Global Markets India Private Limited and Enam Securities Private Limited are book running lead managers to the issue. Karvy Computershare Private Limited is the registrar.

Pipavav Shipyard is located on the west coast of India adjacent to major sea lanes between the Persian Gulf and Asia. Upon completion of construction, the Pipavav Shipyard will be capable of ship construction and repairs for a range of vessels of different sizes and types, as well as the fabrication and construction of products such as offshore platforms, rigs, jackets and vessels (but excluding subsea pipelines) for oil and gas companies which the company intends to offer in Offshore Business. It also intends to commence production of vessels while simultaneously completing construction of the Pipavav Shipyard.

Bhavesh Gandhi, the company’s Executive Vice Chairman, said “The sheer scale, size and state-of-the-art modern infrastructure that we have put in place, which includes the largest dry dock in the country, measuring 662/65 million tonne, serviced by two mammoth goliath cranes with a lifting capacity of 600 tonne each and a massive modern state-of-the-art fabrication infrastructure backed by modern and latest equipment that we have introduced allows us the opportunity to do multiple production and the focus being the defense, offshore, besides other sectors.”

Punj Lloyd bought 22.34% stake in the company at Rs 350 crore. Sea King Infra (SKIL Infrastructure) and Punj Lloyd are co-promoters, which hold 45.5% stake.

Oil India IPO overbid 31 times; heavy QIB interest seen

The initial public offering (IPO) of Oil India (OIL), the second largest oil and gas company in India, has received remarkable response from investors, especially QIB (qualified institutional investors).

It has been subscribed 30.82 times so far and has received bids for 81.5 crore shares as against issue size, as per the data available on the NSE website. QIBs' reserved portion got subscribed 54 times followed by non-institutional and retail investors; their portion subscribed 10.5 times and 1.8 times, respectively. The issue received more than 2.10 lakh applications.

Godrej Properties IPO in three months

Godrej Properties will hit the capital market with an initial public offer (IPO) in the next three months, its Chairman Adi Godrej said today.

"We have got clearance for our Draft Red Herring Prospectus (DRHP) from SEBI. We will come out with an IPO in three months time," Godrej told reporters here.

The real estate company will offload 10 per cent equity shares to the public, while 3.5 per cent shares will be available as pre-IPO placement, he said.

The company has mandated ICICI Securities and Kotak Mahindra to manage the issue.

Godrej Industries Ltd currently holds a little over 80 per cent in Godrej Properties.

The company, which is present in residential, commercial and retail spaces of real estate, may set up affordable housing projects in three cities.

"We are mulling affordable housing projects in Ahmedabad, Kolkata and suburban Mumbai," Godrej said.

GPL already has a presence in Pune, Hyderabad, Kolkata, Mumbai and Bangalore.

On consumer products, Godrej said rising sugar prices have made producers consider hiking prices of food products.

The Godrej Group manufactures chocolates and confectionery through subsidiaries Godrej Hershey Foods & Beverages Ltd and Godrej Beverages & Foods Ltd.