Indian IPO

All details about Hot Indian Primary Market.

Thursday, February 25, 2010

United Bank of India IPO subscribed 33 times

The initial public offering of a government owned United Bank of India, which closed today, has received overwhelming response from all kinds of investors. It has been subscribed 32.92 times, as per data available on the NSE website.

The reserved portion of qualified institutional, retail and non-institutional investors got subscribed 42.05 times, 4.57 times and 16.3 times, respectively, till 4 pm.

India's largest bank SBI has put in bid for Rs 300 crore worth of shares and Halbis bid for Rs 625 crore. LIC has bid for Rs 209 crore worth of shares.

The 5 crore equity shares IPO opened for subscription on February 23 and the price will be determined through a 100% book building process.

The price band is at Rs 60-66 per share and the issue is available at a 5% discount to retail investors.

It comprises a net issue of 4.75 crore equity shares to the public and a reservation of 25 lakh equity shares for subscription by eligible employees. The issue shall constitute 15.80% of the post issue paid-up capital and the net issue shall constitute 15.01% of the post-issue capital of the bank

Wednesday, February 24, 2010

SJVNL IPO put on hold until next fiscal

The initial public offering of state-owned Satluj Jal Vidyut Nigam has been put on hold by the government after a lukewarm response to
the follow-on offers of NTPC and Rural Electrification corp.

"The IPO is slightly delayed, looking at what happened to REC and NTPC, the market is not conducive and it (IPO) could come in the first half of 2010-11," SJVNL CMD HK Sharma told reporters here.

The Centre holds 75 per cent stake in SJVNL, a joint venture between the Centre and Himachal Pradesh while the remaining stake remains with the state government.

The Government is disinvesting 10 per cent of its 75 per cent stake in SJVNL and is expecting to raise around Rs 1,200 crore from the stake sale.

The Board of the company has cleared the Draft Red Herring Prospectus (DRHP) for the IPO.

The Cabinet Committee on Economic Affairs in October last year approved 10 per cent disinvestment in SJVNL.

The follow-on offers of NTPC and REC were subscribed 1.2 and 3.12 times, respectively.

Tuesday, February 23, 2010

Big Bazaar IPO shelved, says Biyani

Kishore Biyani-controlled Future group seems to have shelved its plans to go for an initial public offer (IPO) for its flagship value retail business, Big Bazaar.

The value retail businesses — Big Bazaar and Food Bazaar —- were hived off into a separate company, Future Value Retail, some time ago, and an IPO had been one option to raise funds for Big Bazaar.

However, Biyani said on Monday that the Future group was not looking at an IPO for Big Bazaar. “There will be no stake sale either,” he said.

“Big Bazaar will develop its own balance sheet and have its own expansion plans. We have other plans for raising funds for Big Bazaar,” Biyani said, declining to say what the “other” options are.
Biyani is also looking to make the value retail business contribute $3 billion to the Future group’s turnover by June 2011. The current group turnover is more than $2 billion, of which the value retail business contributes around 55%. Plans are also afoot to increase the total retail area to 17 million square feet by 2011 from the present 14 million square feet. Meanwhile, Future group and Keventer group are exploring opportunities for setting up Big Bazaars near railway stations in the country

Monday, February 22, 2010

Man Infra IPO overbid 60 times; sets 2-year record

The 56,25,150 equity shares initial public offering (IPO) of Man Infraconstruction has received highest subscription in the last two years, especially after Reliance Power IPO (which was subscribed over 73 times). The issue, which closed today, has been subscribed 60.44 times, as per data available on the NSE website.

Qualified and non-institutional investors supported the issue; their reserved portion got subscribed 11.62 times and 9 times, respectively till February 19.

The company plans to raise upto Rs 141.75 crore from this issue at the higher price band, which will be used for purchase of capital equipment.

It had already received commitment of Rs 24.5 crore from the anchor investors (AIs), who subscribed for 9,72,000 equity shares at Rs 252 per equity share, at higher end of price band of Rs 243-252.

Man Infra provides construction services for port infrastructure, residential, industrial, commercial and road infrastructure projects. As on December 31, 2009, the company’s order book, on a consolidated basis, stood at Rs 20,209.25 million spread across the construction sectors.

The equity shares of the company would be listed on NSE and BSE. The book running lead managers to the issue are Edelweiss Capital Limited and IDFC-SSKI Limited.

Saturday, February 20, 2010

Hathway sets issue price of Rs 240/sh

A cable television services provider, Hathway Cable and Datacom has fixed the issue price for its 277.5 lakh equity shares initial public offering (IPO) at Rs 240 a share, at lower end of price band of Rs 240-265, reports CNBC-TV18.

The IPO received lukewarm response from investors due to highly priced as well as it has been loss making company for last few quarters. It was subscribed just 1.36 times. The issue was opened for subscription during February 9-11, 2010.

Non-institutional investors (NIIs) supported the issue to sail through while retail participation was very poor. NIIs' reserved portion got subscribed 4.3 times and qualified institutional investors' portion was subscribed 1.43 times while retail portion was just 0.28 times.

Even the anchor investors, prior to the issue opening subscribed for 4.99 million shares at Rs 240/share, at lower price band.

United Bank IPO to open on Feb 23, price band at Rs 60-66

United Bank of India, a public sector banking institution with branches in 28 States and in 4 Union Territories in India, intends to make an initial public offering (IPO) of 5 crore equity shares of face value of Rs 10 each for cash at a price to be determined through a 100% book building process.

The bank has fixed the issue price band at Rs 60-66 per share and also announced 5% discount to retail investors, reports CNBC-TV18. The IPO will open on February 23, 2010 and close on February 25, 2010.

The IPO comprises of a net issue of 4.75 crore equity shares of face value of Rs 10 each to the public and a reservation of 25 lakh equity shares for subscription by eligible employees. The issue shall constitute 15.80% of the post issue paid-up capital and the net issue shall constitute 15.01% of the post-issue capital of the bank.

This issue has been graded by CARE as CARE IPO grade 4 indicating above average fundamentals and by ICRA as ICRA IPO grade 3 indicating average fundamentals.

At least 60% of the net issue shall be allotted on a proportionate basis to qualified institutional buyers (QIB). 5% of the QIB portion shall be available for allocation to Mutual Funds only and the remaining QIB portion shall be available for allocation to all the QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the issue price. If at least 60% of the net issue cannot be allotted to QIBs, then the entire application money shall be refunded. Further, not less than 10% of the net issue shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 30% of the net issue shall be available for allocation on a proportionate basis to retail individual bidders, subject to valid Bids being received at or above the issue price net of retail discount.

Investors, except QIBs, may participate in this Issue through the Application Supported by Blocked Amount process by providing the details of their respective bank accounts in which the corresponding Bid Amounts will be blocked by the Self Certified Syndicate Banks (SCSBs).

The book running lead managers to the issue are SBI Capital Markets Limited, Edelweiss Capital Limited and Enam Securities Private Limited.

The equity shares offered by the bank through the issue are proposed to be listed on Bombay Stock Exchange and National Stock Exchange of India.

The bank is currently a wholly-owned undertaking of the Government of India. Its business is principally divided into retail banking, corporate/ wholesale banking, priority sector banking, treasury operations and other banking services such as agency functions for insurance and mutual fund distribution, pension and tax collection services.

Aqua Logistics to list on February 23

Mumbai based Aqua Logistics will list its equity shares, which were issued recently via public issue, on the exchanges on February 23, 2010. The issue price is fixed at Rs 220 per share.

The Rs 150 crore initial public offering (IPO) was opened for subscription during January 25-February 2 and was subscribed 1.94 times.

Non-institutional and retail investors' portion was subscribed 5 times and 3 times, respectively while qualified institutional investors' portion was subscribed just 0.26 times.

To get the issue sail through, the company had revised the price band to Rs 200-225 from Rs 220-230 per share and extended closing date from January 28 to February 2.

A discount of Rs 5 to the issue price had been allowed to retail investors.

Aqua Logistic is engaged in the business of freight forwarding services with agents to provide end-to-end solution to its clients.

The company will be using the issue proceeds for purchasing of specialized equipments; expansion & establishment of offices; funding proposed acquisition and additional working capital requirements.

Thangamayil Jewellery closes with 5.2% discount

Thangamayil Jewellery closed at Rs 71.10, at a discount of 5.2% from its issue price of Rs 75 per share. The stock touched an intraday high of Rs 79 and low of Rs 70, which was the opening price on the BSE. It saw volumes of over 86 lakh shares in trade today.

On the NSE, the share fell 6.33% to Rs 70.25, after seeing day's high of Rs 82 and low of Rs 70. It was opened at Rs 75.70 and saw turnover of Rs 87 crore.

In an interview with CNBC-TV18, BA Ramesh, Managing Director said FY10 PAT was likely between Rs 15-16 crore. He sees FY11 sales & PAT up 60-70%.

The company is one of the leading jewellery retailers in Madurai and trades in Gold Jewellery, Diamond and Platinum jewels. It has introduced the Hallmarking practice for the first time in Madurai.

The Rs 28.75 crore initial public offering (IPO) was opened for subscription during January 27-29 and was subscribed just 1.12 times. The price band was at Rs 70-75.

The company will use issue proceeds for expansion of existing business by establishing retail outlets at Tuticorin, Dindigul, Theni, Nagercoil, Tirunelveli, Kovilpatti and Sivakasi, and for renovation of the existing outlet at Madurai; working capital requirement and issue expenses.

Man Infra's valuation looks attractive: Keynote Capitals

Keynote Capitals Research has come out with a research report on Man Infraconstruction (MIL) IPO. The research firm says, MIL’s valuation is attractive in view of the high EBITDA margins the company enjoys, which are higher than peers.

The 56,25,150 equity shares initial public offering (IPO) of the company has opened for subscription. The price band is at Rs 243-252 per equity share and the issue will close on February 22, 2010.

The report says, "Earnings estimates, computed on the basis of year-wise execution of order book, stand at Rs 15.97 and Rs 20.64 per share for FY10E and FY11E respectively, giving a p/e multiple of 15.8x and 12.2x for FY10E and FY11E respectively. In comparison, IVRCL Infrastructure trades at 10.1x FY10E and 10.8x FY11E, and Nagarjuna Construction at 20.8x FY10E and 20.9x FY11E. We believe MIL’s valuation is attractive in view of the high EBITDA margins the company enjoys, which are higher than peers."

Monday, February 08, 2010

ARSS Infra Project IPO to open on Feb 8

Orissa-based construction company ARSS Infrastructure Project today said its initial public offer (IPO) will open on February 8.


"The bid will open on February 8 and close on February 11," the company's Finance Director S K Patnaik told media here.

"The company has fixed the price band between Rs 410 and Rs 450 per equity share for an IPO of equity share of Rs 10 each for cash at a price to be decided through 100 per cent book-building process," he said.

The construction firm proposes to use Rs 500 lakh of the proceeds raised from the IPO for investment into forming joint ventures and for projects which have not yet been awarded to the company, Patnaik said.

"We expect to generate profits by execution of projects as a result of such investments and work orders that would be receive through the credential of joint venture partners," Patnaik added.

ARSS Infrastructure Project is engaged in construction of roads, highways, bridges, irrigation projects etc.

Friday, February 05, 2010

Jubilant FoodWorks to list on February 8

Jubilant FoodWorks, the Domino's business operator in India, will list its equity shares on the exchanges on February 8, 2010. The company has fixed the issue price at Rs 145, at higher end of the price band of Rs 135-145.

The initial public offering (IPO) of 22,670,447 equity shares was opened during January 18-20, 2010. The company has raised Rs 328.72 crore from this issue, which was subscribed 31.11 times, as per data available on the NSE website.

Qualified institutional investors' reserved portion subscribed 59.39 times followed by non-institutional investors with 51.95 times and retail 3.78 times.

The company had received commitment of Rs 44.37 crore from anchor investors, which include Arisaig Partners, Blackrock, Canara Robeco MF, Capital World, Fidelity, Franklin Templeton, HSBC, Prudential, Reliance MF, SBI MF, T Rowe Price and Ward Ferry.

Kotak Mahindra Capital Company Limited was acting as the sole book running lead manager to the offer. The offer was comprised a fresh issue of 4,000,000 equity shares and an offer for sale of 18,670,447 equity shares by the India Private Equity Fund (Mauritius) and Indocean Pizza Holding Limited.

Thursday, February 04, 2010

ARSS Infra IPO to open on Feb 8, price band at Rs 410-450

Orissa based infrastructure company, ARSS Infrastructure Projects plans an initial public offering (IPO) of Rs 103 crore. The company has the fixed price band at Rs 410-450 per share.

The issue will open for subscription between February 8 and 11, 2010, reports CNBC-TV18 quoting NW18.

The company is engaged in the business of construction activities in India. It undertakes construction of railway infrastructure, roads, highways, bridges and irrigation projects.

The proceeds of the issue are intended to be deployed for investment in joint ventures (at a cost of Rs 5 crore) and funding long term working capital requirement (cost of Rs 86 crore). The rest of amount will be used for issue expenses and general corporate purpose.

President and Chief Executive Officer Sunil Agarwal said, "The proceeds would be used for working capital, both for the company's existing and new projects. A part of the proceeds would be used for entering into new joint ventures to undertake new projects".

The company's order book position was at Rs 28.77 billion as on January 10, 2010 and it had 145 projects in hand as on that date.

Its clients' list includes Ministry of Railways, State Government of Orissa, Rail Vikas Nigam Limited, RITES Limited, IRCON International Limited, National Thermal Power Corporation, Hindustan Steel Corporation Limited, PWD – Orissa, IOCL and the National Highway Authority of India. The company has presence in Eastern India, particularly in the state of Orissa.

CARE has assigned Grade 2/5 to the IPO, indicating less than average fundamentals.

For the year ended March 31, 2009, it has reported profit after tax of Rs 51.19 crore on total income of Rs 628.23 crore. As of June 2009, it has debt of nearly Rs 240 crore.

The book running lead managers to the issue are IDBI Capital Market Services Ltd and SBI Capital Markets Ltd. Bigshare Services Private Ltd is the registrar.

Hathway Cable IPO to open between Feb 9 and 11

Hathway Cable and Datacom, cable television services provider, is entering capital market with an initial public offering (IPO) of 277.5 lakh equity shares of Rs 10 each on February 9, 2010.

The issue consists of a fresh issue of up to 200 lakh equity shares by the company and an offer for sale of 72.10 lakh equity shares by Monet limited and 5.4 lakh equity shares by MSPI Mauritius India limited. The issue will constitute approximately 19.43% of the post-issue share capital of our company.

The promoters' holding will be reduced to 66.55% from 77.37%. The issue will close on February 11.

It is the leading cable television services provider in India as well as one of the leading cable broadband services providers (Source: MPA Report). It offers analog and digital cable television services across 125 cities and towns and high-speed cable broadband services across 18 cities.

The objects of the fresh issue are to fund customer acquisitions; investment in the development of digital capital expenditure, services and set top boxes; investment in the development of broadband infrastructure, capital expenditure and services; repayment of loans; and fund expenditure for general corporate purposes.

For the period of six months ended on September 2009, it has reported net loss of Rs 35.63 crore and total income of Rs 364.92 crore. It has debt of Rs 443.03 crore on its books.

The book running lead managers to the issue are Morgan Stanley India Company Private Limited, UBS Securities India Private Limited and Kotak Mahindra Capital Company Limited. Link Intime India Private Limited is the registrar.

UCO Bank FPO by March-end, to raise Rs 400cr

UCO Bank plans to come out with a follow-on public offering (FPO). Its board has approved the issue of 60 million shares on January 30.

SK Goel, Chairman, UCO Bank, says the bank would raise money via an FPO and not a qualified institutional placement (QIP). "The bank will come out with an FPO of six crore shares by March-end and will offer a discount to retail investors."

He expects to raise Rs 400 crore via the FPO and sees the government infusing Rs 500 crore.

The bank had raised Rs 240 crore via an initial public offering (IPO) in September 2003, priced at Rs 12 per share.

Satluj Jal Vidyut Nigam IPO unlikely this fiscal

Power Minister Sushil Kumar Shinde says that the Satluj Jal Vidyut Nigam disinvestment is unlikely this fiscal, reports CNBC-TV18’s Akanksha Sethi.

The Power Minister has said that the Satluj Jal Vidyut Nigam initial public offering (IPO) is unlikely to happen in this fiscal and is expected, probably, in the next fiscal. The delay is due to procedural issues.

The government was expecting three power sector disinvestments this year. Rural Electrification Corporation (REC), Shinde, says is on track and will hit the market this fiscal.

Earlier, the Finance Minister Pranab Mukherjee had said that India will complete share sales through public offers in three state companies by the end of March. Divestment of 5% each in NTPC and Rural Electrification Corp and 10% in unlisted Satluj Jal Vidyut Nigam (SJVN) was under implementation, Pranab Mukherjee had told the lawmakers in Parliament in early December.

GSPC IPO likely in April-June: Sources

Gujarat State Energy Secretary says Gujarat State Petroleum Corporation (GSPC) initial public offering (IPO) is likely in April-June of 2010, reports CNBC-TV18 quoting agencies.

State-owned oil and gas exploration company, GSPC is going to file draft prospectus with SEBI by February-end. The company is planning to raise Rs 3,000 crore via 15% stake sale.

GSPC is a parent company of listed Gujarat State Petronet.

PTC plans to float PTC Financial IPO in FY11

PTC India official said the company plans to float PTC Financial initial public offering (IPO) in FY11, reports CNBC-TV18 quoting NW18.

PTC is looking to acquire coal mine in Indonesia.

PTC India Financial Services (PFS) was promoted by PTC India as a special purpose investment vehicle to provide total financial services to the entities in energy value chain.

PTC holds 77.60% stake in the company while the remaining 22.40% is shared equally by both Goldman Sachs Strategic Investments Limited and Macquarie India Holdings Limited.

PFS is one of the promoters of the India's first power exchange viz. Indian Energy Exchange and holds 26% equity in it.

At 14:54 pm, the share was quoting at Rs 107, up Rs 2.55, or 2.44%. Its market cap stood at Rs 3,151.66 crore at this price.

The company's trailing 12-month (TTM) EPS was at Rs 3.24 per share, till the December quarter results of 2009.

The stock's price-to-earnings (P/E) ratio stands at 33.02. The book value of the company is at Rs 54.44 per share. Price-to-book value of the company was at 1.97. The dividend yield of the company was at 1.12%.